Wall Street is kicking off a crucial reporting season as U.S. companies provide quarterly results a year after the coronavirus pandemic crippled the economy and as investors look for reasons to support a stock market at record highs. Overall S&P 500 earnings are expected to have jumped 25% in the first quarter from a year ago, according to IBES data from Refinitiv. That would be the biggest quarterly gain since 2018, when tax cuts under former President Donald Trump drove a surge in profit growth.
(Bloomberg) -- U.K. bond investors eager for the government to sell more of its longest-dated debt appear to have gotten their way.A bond auction on Tuesday will include a 1 billion-pound ($1.37 billion) offering of gilts maturing in 2071 with more scheduled for sale in June. Minutes of a conference call with the Debt Management Office last month revealed investors asked for more of the bonds because there isn’t enough to go around. It also cited dealers reporting strong demand for the longest-dated gilts.The success of Britain’s vaccination roll-out and plans to gradually reopen the economy have pressured gilts, lifting 50-year yields to their highest since 2019 last month. That’s now unleashing appetite among money managers to pile back in looking for income-bearing assets to match liabilities .The same dealers have also been reluctant to sell their inventory of long-maturity debt this year back to the Bank of England as part of its quantitative easing program in another sign of anticipated demand. This suggests they don’t want to be caught short of any bonds should investors want to buy from them.Also pushing the strong demand theme, oversubscription rates for bonds maturing in 50 years have been the highest on record since the end of last year.“With the U.K. market having most aggressively priced the re-opening story in Europe, even a mild re-assessment of the re-opening and vaccination story, should see gilts recapture some lost ground,” said Megan Muhic, a strategist at RBC Europe Limited.Next WeekEuro area bond issuance from Germany, Italy and the Netherlands is expected to total 12 billion euros next week according to Commerzbank AG; Danske Bank A/S flags that Ireland could sell a new 20-year bond through banks; Italy, Finland and Portugal pay redemptions of about 29 billion euros and coupons of over 2 billion eurosIn the U.K., the Debt Management Office will sell 1 billion pounds of its longest conventional gilt which matures in 2071 and 600 million pounds of a 30-year inflation-linked bond; the Bank of England will buy back 4.4 billion pounds of debt in three operationsData for the coming week in the euro area and Germany is thin and mostly backward-looking, with the exception of the ZEW survey numbers for April on TuesdayU.K. data is also slim with February GDP due on TuesdayECB policy maker speeches are scheduled from Isabel Schnabel, Fabio Panetta and Luis de Guindos all on Wednesday before a self-imposed quiet period kicks in ahead of the following week’s monetary policy decisionBOE policy maker Silvana Tenreyro speaks on Monday followed by Jonathan Haskel on Wednesday and Jonathan Cunliffe on FridayDBRS Ltd. reviews France on FridayFor 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) -- For many investors, Coinbase Global Inc.’s trading debut next week will be an entry into the $2 trillion cryptocurrency market.And for those who have already gorged on Bitcoin, the arrival of the largest U.S. cryptocurrency exchange on the Nasdaq Stock Market could be what is needed to settle portfolios roiled by the asset class’s notorious volatility.There are other stocks already tied to the bits and bytes of the various blockchains. Elon Musk’s Tesla Inc. and Michael Saylor’s MicroStrategy Inc. have both notably added billions worth of Bitcoin to their treasuries. But with Coinbase’s public listing, investors will have the choice of an equity tied to cryptocurrencies that is -- so the hope goes -- less likely to suffer persistent cycles of boom and bust.“For a crypto investor that also buys stocks, it has the ability to diversify risks as there is a very profitable exchange platform that trades on another venue (stock exchange) whose flows of buyers and sellers can be less correlated than many crypto prices,” wrote Greg Foss, a veteran credit trader, Bitcoin investor and chief financial officer for Validus Power Corp., in an email reply to questions.Coinbase is planning to go public through a direct listing in which it will not raise any new capital, it said in an S-1 filing. The direct listing allows current shareholders to trade their shares without a lock-up period that is typical in an initial public offering. It was valued at about $90 billion in its final week of trading on Nasdaq’s private market, Bloomberg News reported.Still, because volume and price tend to go hand-in-hand, Coinbase’s transaction revenue, its largest segment, could remain susceptible to cryptocurrency market gyrations.“In a traditional stock portfolio it gives exposure to an exchange platform that generates trading fees on crypto,” wrote Foss. “Those fees increase with volumes and volumes typically increase with prices, so there is a beta trade there.”Coinbase said Tuesday that it expects to report a first-quarter profit of $730 million to $800 million, more than double what it earned in all of 2020. The bumper quarter for the exchange comes amid surging cryptocurrency prices. The Bloomberg Galaxy Crypto Index, tracking Bitcoin, Ether and six other cryptocurrencies advanced by more than 100% in each of the last two quarters.Coinbase may have further appeal for investors. The exchange could provide an accessible diversified investment into the space, where there’s a proliferation of cryptocurrency tokens and few passive vehicles to spread bets around, according to Gil Luria, head of institutional research at D.A. Davidson & Co.“Coinbase will win regardless of which crypto asset emerges as a winner, and their revenue is tied more to trading volumes, which are often less volatile than asset values,” Luria wrote in an email.But investors looking to add some stability to their cryptocurrency portfolios may want to exercise patience.Kevin Kelly, global head of macro strategy at research firm Delphi Digital, warns that those seeking a lower volatility investment might want to sit out Coinbase’s first week of trading.“I expect to see a lot of volatility next week once COIN begins trading, but eventually I think we’ll see it trade more in line with the direction of the broader crypto market,” Kelly wrote in an email. “However, I view it as a lower beta play on the continued expansion of crypto with less downside risk to crypto asset prices; in other words, COIN is more agnostic to crypto asset prices and may be an attractive opportunity for investors looking to gain exposure to the continued adoption of crypto without taking on similar levels of price volatility.”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 reflation trade that dominated the start of 2021 in the bond market has taken a breather, leaving investors bracing for a key set of data in the week ahead that has the potential to reaffirm expectations that price pressures will build as the economy rebounds.All eyes will be on Tuesday’s release of the U.S. consumer price index for March, which is expected to show a significant jump. The number will likely be distorted by the huge slump in year-earlier figures at the outbreak of the pandemic. But traders may be reluctant to dismiss an acceleration -- as they did to some extent with Friday’s stronger-than-projected producer price data -- if there’s a growing sense that it marks the beginning of a trend.The statistics come at a crucial time for bond bears betting on reflation. Market measures of inflation expectations, fueled by ultraloose Federal Reserve policy and immense amounts of fiscal stimulus, have stalled near multiyear highs and have yet to be backed consistently by actual data. The same goes with gauges of the yield curve, which have retreated from recent peaks. It’s not just bond positions at stake: Without follow-through from data, bets on Fed tightening as soon as late 2022 may fade, potentially sapping demand for the surprisingly resilient dollar.“We don’t have strong reflation-trade momentum at the moment because people are waiting for more data,” said Daniel Tenengauzer, head of markets strategy at Bank of New York Mellon Corp. “As the data comes in, we are probably going to see the reflation trade play out again more strongly” toward the middle of the year.Tenengauzer says every inflation reading counts from this point because “the longer inflation stays at 2.5%,” an annual CPI reading last seen before the pandemic took hold, “the more underwater you are from holding fixed income.”Ten-year Treasury yields rose Friday, while finishing below the day’s high, after the PPI report showed a 4.2% increase from March 2020. Although it was relative to a period when the pandemic caused price pressures to crash, it was the biggest annual gain since 2011. The benchmark yield has retreated since approaching 1.8% last month, the highest since January 2020.There are strong arguments on both sides of the inflation debate as the market moves from a phase where it was driven by rising expectations for price pressures, to one where investors are seeking backup from the data. There’s also a view that expectations for growth, not inflation, may end up dominating the narrative for Treasuries later this year, through higher real yields.Inflation ‘Psychosis’Fed Chair Jerome Powell, who’s scheduled to appear on “60 Minutes” Sunday and will also speak Wednesday, has said any pickup in inflation will likely be temporary. Hoisington Investment Management Co., meanwhile, said in its latest quarterly report that inflation fears are a “psychosis” that will fade.But that doesn’t mean that a jump in the consumer price index won’t spook bond investors at least briefly. The March figure is forecast to show a year-over-year increase of 2.5%, which would be the highest since January 2020 and above every point on the yield curve. It’s a development that may also undermine stocks.“The market’s been pricing in a reflation theme already since the second half of 2020, but strong, realized prints would almost add fuel to the fire,” said Shahid Ladha, head of Group-of-10 rates strategy for the Americas at BNP Paribas SA.That, in turn, would produce upside risk to yields on intermediate maturities because of the possibility that the Fed might have to tighten sooner than expected, he says.Investors are also tasked with absorbing a combined $120 billion of coupon auctions next week, including 30-year debt, as they ponder the inflation question. While expectations for an elevated CPI reading may be a concern, the past month has shown that there’s sufficient demand for Treasuries, which should help “grease future bond auctions,” Tenengauzer said.What to WatchEconomic calendar:April 12: Monthly budget statementApril 13: NFIB small business optimism; CPI; average earningsApril 14: MBA mortgage applications; import/export prices; Fed’s Beige BookApril 15: Jobless claims; retail sales; Empire manufacturing; Philadelphia Fed business outlook; industrial production; Langer consumer comfort; business inventories; NAHB housing index; TIC flowsApril 16: Building permits; housing starts; University of Michigan sentimentFed calendar:April 12: Boston Fed’s Eric RosengrenApril 13: Philadelphia Fed’s Patrick Harker; San Francisco Fed’s Mary Daly; Richmond Fed’s Thomas Barkin; Atlanta Fed’s Raphael Bostic, Cleveland Fed’s Loretta Mester and Rosengren at event on racism and the economyApril 14: Dallas Fed’s Robert Kaplan; Powell speaks to the Economic Club of Washington; Beige Book; New York Fed’s John Williams; Vice Chair Richard Clarida discusses new policy framework; BosticApril 15: Bostic; Daly; New York Fed Executive Vice President Lorie Logan; Clarida; MesterApril 16: Kaplan in two appearancesAuction schedule:April 12: 13-, 26-week bills; 3-, 10-year notesApril 13: 30-year bondsApril 15: 4-, 8-week billsFor 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) -- An exchange-traded fund investing in U.S. companies that BlackRock Inc. considers most likely to prosper in the transition to a low-carbon world lured the most cash on record in its first day of trading.Investors poured about $1.25 billion into the BlackRock U.S. Carbon Transition Readiness ETF (ticker LCTU) on Thursday, making it the biggest launch in the ETF industry’s three-decade history, according to data compiled by Bloomberg.First-day flows on this scale are typically powered by large institutional investors lined up by the issuer before a fund launches.The BlackRock ETF will focus investments in shares of Russell 1000 companies that are deemed to be best positioned for the energy transition, taking into account issues such as clean technology and waste and water management.To have any chance of meeting the Paris climate goals of limiting global warming to below 2 degrees Celsius, companies in all industries will need to lower their carbon footprint. This great rewiring of the global economy will affect companies’ long-term profitability and BlackRock “doesn’t see itself as a passive observer,” Chief Executive Officer Larry Fink said earlier this year in a letter to clients.BlackRock said in January it manages $50 billion “in solutions that support the transition to a low-carbon economy,” including green bonds and a renewable power infrastructure business that invests in the wind and solar power markets. The world’s largest asset manager also pledged to expand dedicated low-carbon, transition-readiness strategies to offer investors exposure to companies that are most effectively adapting to transition risks.LCTU’s eye-catching debut comes amid a broad boom for ETFs focused on investments that meet environmental, social and governance standards. They attracted a record $31 billion in 2020, almost four times the prior year. About $6.3 billion was added in January, also the most ever, as investors bet the Democrats clean sweep of the U.S. government would usher in a swath of green policies.That’s all taken ESG ETF assets to a record $74.8 billion, up from less than $10 billion two years ago. The largest ETF in the space is also from BlackRock. The iShares ESG Aware MSCI USA ETF, with $16.3 billion of assets, is trading at an all-time high after returning more than 50% in the past 12 months.The Financial Times earlier reported the introduction of the BlackRock fund.(Updates with extra context.)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.
A rebound in growth and technology stocks has investors gauging whether a months-long rally in the shares of banks, energy companies and other economically sensitive names is running on empty or simply refueling. The Russell 1000 value index started 2021 with its biggest quarterly outperformance relative to its growth counterpart in 20 years, as investors poured money into the shares of battered companies they thought would benefit most from a vaccine-generated reopening of the U.S. economy. The script has flipped since mid-March, with the Russell growth index gaining over 6% compared to a rise of just over 2% for value.
(Bloomberg) -- The Honest Co., co-founded by actress Jessica Alba, has filed to list on the Nasdaq in an initial public offering.The Los Angeles-company said in a prospectus to the U.S. Securities and Exchange Commission on Friday that it will seek a listing size of $100 million, a placeholder amount that will likely change.A share sale could value Honest at about $2 billion, Bloomberg News reported in January.Morgan Stanley, JPMorgan Chase & Co. and Jefferies Financial Group Inc. are advising the company. It is expected to trade under the symbol HNST.Launched in 2012, Honest sells diapers, moisturizer, shampoo and other products online at honest.com and at thousands of retail locations. Makers of consumer products have seen a steady rise in demand for goods that are seen as free of chemical and artificial additives in recent years -- a trend that has been accentuated by the Covid-19 pandemic.The filing comes amid heightened demand for personal care and cleaning supplies during the pandemic. Sales last year were just over $300 million, according to the filing, a 28% increase from 2019 in part because of soaring interest in household supplies. The company recorded a net loss of $14.5 million in 2020 and adjusted earnings before interest, taxes, depreciation and amortization of $11.2 million.Since its launch in 2012, Honest has forged relationships with a number of the country’s largest retailers, including Target Corp. and Amazon.com Inc. Honest said it generated 55% of its sales last year from its own website, which has experienced gains during the pandemic as shoppers turn away from physical stores.As consumers faced shortages of products like wipes at the height of the pandemic and mandatory closures, they turned to online brands that could meet the demand. Higher spending on hygiene and cleaning products are expected to persist, as well as a higher reliance on e-commerce.Honest counts L Catterton’s global co-chief executive officers Scott Dahnke and Michael Chu among its largest shareholders. The filing also lists Lightspeed Venture Partners, Fidelity and General Catalyst as investors.(Updates to include financial metrics in seventh 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) -- China Huarong Asset Management Co. is stepping up efforts to revive investor confidence after persistent questions about the bad-debt manager’s financial health sent its dollar bonds tumbling to record lows.In an emailed response to questions from Bloomberg on Friday, the state-owned company said it has been making debt payments “on time” and its operations are “normal.” The comments came a day after people familiar with the matter said China Huarong has prepared a plan to boost profitability that would avoid the need for a debt restructuring or government recapitalization.While prices for several of China Huarong’s bonds have bounced from their lows on Thursday, the securities continue to trade at historically depressed levels as investors look for more clarity on the company’s finances and overhaul plan. The selloff, which has spilled over to some of China Huarong’s peers, has become the latest test of investor faith in China’s state-owned borrowers after a record-breaking surge in defaults last year.“Too big to fail appears to be an outdated concept in China,” said Deng Hao, chief executive of Beijing GEC Asset Management. For a giant and complex entity like China Huarong, it is risky to assume that default risk is low simply because the Ministry of Finance is the largest shareholder of the firm, he said. His firm does not hold Huarong’s bonds or shares.What’s the company:China Huarong is one of the four state-owned entities set up by China’s government in 1999 to help clean up a banking system riddled with bad debt. It listed in Hong Kong after a $2.5 billion initial public offering in 2015.The firm was left reeling in 2018 after former chairman Lai Xiaomin was accused of bribery and ultimately found guilty of receiving 1.79 billion ($273 million) in illicit payments. Under his watch, China Huarong expanded into areas including securities trading, trusts and other investments, deviating from the original mandate of disposing bad debt. Lai was was sentenced to death in January and later executed.China Huarong has started trimming non-core assets amid regulatory pressure to return to its roots. Net income slumped 92% in the first half of 2020 from a year earlier as the value of some assets dropped in the wake of the Covid-19 pandemic. The company’s market value has tumbled to about $5 billion from $15 billion when it listed.What’s happening:Trading in China Huarong shares and structured products was halted in Hong Kong on April 1, when the company said its 2020 financial results were delayed because its auditor needed more time to finalize a transaction.The bad-debt manager has submitted an overhaul plan to regulators and received positive initial feedback, according to people familiar with the matter who asked not to be identified discussing private information. China Huarong is still determining the value of its stakes in some onshore and offshore units and finalizing which ones will be sold, part of the reason it held off releasing 2020 results, the people said. The company is also awaiting final approvals from Chinese authorities.While China Huarong’s debt recouped some losses after Bloomberg reported details of the overhaul plan on Thursday, yield spreads over comparable Treasuries on several dollar bonds were headed for record closing highs on Friday, a sign of persistent investor skepticism. The firm’s bond due 2030 is indicated at about 420 basis points, compared to 208 basis points at the end of last month, Bloomberg-compiled prices show.Some yuan bonds of Huarong Securities Co., a unit of China Huarong, also plunged to record lows in the onshore market this week, prompting the brokerage to put out a statement reassuring investors that its business environment and operations have had no major changes recently.Why does it matter:China Huarong is deeply intertwined in the nation’s financial markets. A restructuring of the firm would be the most high-profile reorganization of a Chinese state-owned financial institution in recent years.The failure to report annual earnings on time has fueled speculation that the company may have problems unknown to its investors. Uncertainty over China Huarong’s planned overhaul may raise refinancing risks for the firm and its subsidiaries. Investors are paying close attention to any signs of government intervention after Chinese officials recently began dialing back financial support for some state-owned enterprises.SOEs defaulted on a record 81.5 billion yuan of domestic bonds last year, according to data compiled by Fitch Ratings, though most of these companies were affiliated with local or regional governments. China Huarong’s biggest shareholder is the country’s Ministry of Finance.What does the company say:At a brief call held after the earnings delay was announced, China Huarong executives including Vice President Wang Wenjie told investors the firm was operating normally. They said it was inappropriate to publish an unaudited financial report that could not accurately reflect its financial performance.Management also highlighted the bright prospects of the distressed-asset sector due to an expected rise in demand for dissolving financial risk, and flagged opportunities in areas such as corporate mergers and reorganization, bankruptcy restructuring and mezzanine investment. The company didn’t elaborate on its plans in its brief statement to Bloomberg on Friday.What do ratings companies say:Fitch Ratings maintained its A rating and stable outlook on China Huarong in its latest rating report published in June. The assessment “reflects the government’s ownership and very high level of control, which indicates close linkages between the company and its sponsor,” Fitch said.Moody’s Investors Service maintained its A3 rating in a credit opinion released in December. The assumption of a very high level of government support takes into consideration its ownership structure and strategic importance, Moody’s analysts said in the report.Fitch declined to comment when contacted by Bloomberg via email, and a Moody’s analyst wasn’t immediately available to provide remarks.What are traders watching next:China Huarong’s bonds are now in focus. The firm and its subsidiaries have some $42 billion worth of offshore and local bonds outstanding and 41% of that will come due by the end of next year, according to Bloomberg-compiled data. Offshore bondholders may bear the brunt of the fallout if China Huarong faces repayment difficulties because dollar bonds make up about $22 billion of its outstanding notes.Investors are closely monitoring progress on China Huarong’s financial plans and any gestures of potential central government support for the firm. They are also watching for indications that investor angst is spilling into the broader credit market, as well as signs that Chinese banks may change their lending policies to China Huarong.Anything else:Huarong Said to Plan Asset Sales, Avoid Debt Restructuring China Sentences Ex-Finance Chief to Death on Corruption China Huarong’s Credit Risk Deepens as Bonds Extend Losses China Huarong Woes Weigh on Dollar Bonds of Other Asset Managers(Updates bond spread in 10th 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.
The president is being urged to roll more direct aid money into his infrastructure bill.
(Bloomberg) -- Indonesia’s Traveloka is in advanced talks to go public through merging with Bridgetown Holdings Ltd., a blank-check firm backed by billionaires Richard Li and Peter Thiel, according to people familiar with the matter.A deal could value Southeast Asia’s online travel leader at about $5 billion, said the people who asked not to be identified because the matter is private. The potential transaction could also involve raising between $500 million and $750 million through a private investment in public equity, or PIPE, the people said. Details including the amount to be raised could change as the companies start discussions with potential investors, they added.Representatives for Bridgetown and Traveloka declined to comment.Shares in Bridgetown Holdings rose about 6% in pre-market trading in New York, extending their 13% gain on Thursday.The deal would make Jakarta-based Traveloka one of the first Southeast Asian unicorns to go public through a special purpose acquisition company, or SPAC. Grab Holdings Inc. is in advanced talks to go that route through Altimeter Capital’s first SPAC, which may value the company at about $40 billion, Bloomberg News reported last month.Read more: Traveloka Is Said to Pick JPMorgan for U.S. Listing via SPACTraveloka was valued in 2020 at around $2.75 billion, according to people familiar with the matter.Bridgetown raised about $595 million in a U.S. initial public offering in October. The company’s sponsor is a collaboration between Thiel Capital, Thiel’s personal investment vehicle based in Los Angeles, and Pacific Century Group, a Hong Kong-based investment company led by Li.Founded in 2012, Traveloka has expanded its reach across six Southeast Asian nations and also covers Australia, making it easier for consumers to book flights and hotels across countries. Like other startups in the region, the company has sought to grow its offering with complementary services, extending into finance alongside its travel, lifestyle and accommodation booking portfolio.Traveloka’s backers include Expedia Group Inc., Rocket Internet, East Ventures, Li’s FWD Group Ltd. and Singapore’s GIC Pte.(Adds pre-market trading in fourth 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.
We identify 124 companies that would face Biden's 15% minimum tax, if Congress passes it.
The British pound has rallied during the trading session on Friday against the lowly Japanese yen to recover yet again.
(Bloomberg) -- A liquefied natural gas trading company that was until recently based in Dubai and part of India’s Hiranandani Group is being liquidated, according to a letter to creditors seen by Bloomberg News.HE Mideast Ltd. had insufficient funds to meet its debts, according to the letter, dated April 1, seen by Bloomberg. The firm defaulted on at least $50 million worth of debt to LNG suppliers including Malaysia’s Petroliam Nasional Bhd and Royal Dutch Shell Plc, said people with knowledge of the matter.The company took speculative positions on physical and paper LNG trades over the last few years, which strapped them with debt they were unable to repay, said the people, who requested anonymity as the matter is private.Novato Investing Ltd., current owner of HE Mideast, declined to comment on any liquidation. Shell declined to comment, and Petronas didn’t respond to a request to comment. Petronas signed a supply deal with the company in 2018. Shell and Petronas declined to comment.Novato has appointed FTI Consulting as liquidator for HE Mideast, and will hold its first meeting with creditors on April 20, according to the letter to creditors. FTI declined to comment.HE Mideast changed its name from H-Energy Mideast DMCC in July 2020, and was established as a Dubai-based trading firm by H-Energy Global Ltd. in 2014, according to a certificate of name change and trading license seen by Bloomberg News. The company recently had ownership transferred to Novato Investing Ltd. and was re-domiciled to the British Virgin Islands, the people said.H-Energy Global, a member of India’s Hiranandani Group, is a smaller, new entrant in the LNG space.(Updates with no comment from Shell and Petronas in the fourth 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.
Investing is a crucial part of accumulating enough money in retirement — and the best results come with proper asset allocation. Retirement tip of the week: Check the asset allocation of your retirement portfolios, and if you’ve done it recently, make it a regularly scheduled task once a year. “The time to review your asset allocation and overall retirement investment strategy should be a proactive process throughout the year,” said Jon Ulin, chief executive officer of Ulin & Co. Wealth Management.
You should be able to roll over your 401(k) plan account into a Roth IRA, but be sure you first understand the tax consequences of doing so.
The price action comes just ahead of a highly anticipated Nasdaq listing for leading U.S. crypto exchange Coinbase.
Melvin Capital is giving the Reddit crowd something to cheer about on a Friday, after the hedge fund rang up a 49% first-quarter loss, according to a report from Bloomberg News on Friday.
(Bloomberg) -- Chinese fintech firm Linklogis Inc. rose on its debut in Hong Kong, with the Tencent Holdings Ltd.-backed company snapping a recent run of disappointing listings in the city.Shares of the Shenzhen-based firm closed 9.9% higher. Linklogis had priced its $1.02 billion initial public offering near the midpoint of an indicative range at HK$17.58 per share, while the retail portion of its offering was 98.5 times subscribed by local investors.Its performance comes after a run of underwhelming listings in Hong Kong. Fintech firm Bairong Inc. slumped 16% during its first day of trading last week, delivering the worst debut in three years, while video streaming service Bilibili Inc. also fell. It is the second IPO deal exceeding $1 billion launched in Hong Kong this year after Kuaishou Technology, which soared 161% on its debut in February.However, while Linklogis’ midpoint-pricing and ties to Tencent made it attractive, institutional demand was not particularly strong, said Steven Leung, executive director at UOB Kay Hian (Hong Kong) Ltd. “We are still in cherry-picking season where people are cautious about buying names without powerful cornerstone investors or solid businesses.”The firm offers digital services to help facilitate supply chain finance transactions in China. While its prospectus shows the company hasn’t made a profit in the last three years, revenue expanded 47% last year following an 83% surge in 2019.Chinese fintech companies are going through a particularly hard year after Beijing suddenly halted Ant Group Co.’s IPO last year, signaling wider crackdowns for the sector. Regulators are inspecting businesses spanning from online lending to payments and insurance tech, making investors wary when it comes to backing firms in the industry.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 a volatile first quarter, Q2 has kicked off in style, and the major indexes sit at – or hover near – all-time highs. The government bond market has also been steadying as yields have pulled back after rising higher earlier in the year, soothing investor fears that inflation could get out of hand. Moreover, the economic recovery seems to be gathering steam at a faster pace than anticipated. “We had been expecting the data to improve about this time, and early signals are that the recovery is absolutely on track,” said Hugh Gimber, J.P. Morgan’s global market strategist. “This is the period where the forecast of a strong recovery in growth is starting to look more like the fact of a strong recovery in growth.” Against this backdrop, the analysts at J.P. Morgan have pinpointed 2 names which they believe are set for strong growth in the year ahead; both are expected to handsomely reward investors with at least 80% of gains over the coming months. We ran them through TipRanks database to see what other Wall Street's analysts have to say about them. Tencent Music Entertainment (TME) We’ll start in China, where Tencent Music Entertainment is the offspring of China’s giant online venture company, Tencent, and Spotify, the Swedish streaming company that makes music and playlists easy. Tencent Music has seen consistently strong sales and earnings for the past year, with the top line growing year-over-year in each quarter of 2020. The Q4 report showed $1.26 billion in the top line, the highest in the last two years, along with 12 cents per share in earnings, up 33% year-over-year. Strong streaming revenue, which showed 29% growth, helped drive the results. And, Tencent Music, through its variety of apps, is the top music streaming service in the Chinese online market – as shown by the 40.4% yoy increase in paid subscribers during Q4. In its quarterly results, the company reported 4.3 million net new users in Q4, to reach 56 million active premium accounts across its apps. That said, the stock has pulled back sharply recently, as like many other high-flying growth names, worries regarding an overheated valuation have come to the fore. But pullbacks often spell opportunity, and covering the stock for JPM, Alex Yao notes the strong subscription growth, as well as the potential in the company’s other businesses, online ads and long-form audio, for monetization. “We believe TME is entering a healthy development cycle with successive growth engines: 1) music subscription remains the core revenue driver with consistent paying ratio improvement, 2) ads revenue ramps up quickly, and 3) active investments in long-form audio initiative, which could become a new growth driver in 2022 and afterwards," Yao noted. To this end, Yao puts a $36 price target on TME, suggesting a one-year upside of 84%, to back his Overweight (i.e. Buy) rating on the stock. (To watch Yao’s track record, click here) Overall, TME has a thumbs up from Wall Street. Of the 11 reviews on record, 7 are to Buy, 3 are to Hold, and 1 says Sell, making the analyst consensus a Moderate Buy. The shares are priced at $19.50, and their $30.19 average price target implies an upside of 55% for the months ahead. (See TME stock analysis on TipRanks) Y-mAbs Therapeutics (YMAB) The next JPM pick we’re looking at is Y-mAbs, a late-stage clinical biopharma company with a focus on pediatric oncology. The company is working on the development and commercialization of new antibody-based cancer therapeutics. Y-mAbs has one medication – Danyelza – approved for use to treat neuroblastoma in children age 1 and over, and a ‘broad and advanced’ pipeline of drug candidates in various stages of the clinical process, as well as five additional products in pre-clinical research stages. Having an approved drug is a ‘holy grail’ for clinical biopharmaceutical companies, and in 4Q20 Y-mAbs saw considerable income from Danyelza. The company announced at the end of December that it had agreed to sell the Priority Review Voucher for the drug to United Therapeutics for $105 million. Y-mAbs will retain the rights to 60% of the net proceeds from the sale, under an agreement with Memorial Sloan Kettering. Also in December, the company announced a license agreement with SciClone. The partnership gives Y-mAbs and Danyelza an opening for treating pediatric patients in China. The agreement includes Mainland China, Taiwan, Hong Kong, and Macau, and is worth up to $120 million for Y-mAbs. The company has entered other agreements making Danyelza available in Eastern Europe and Russia. Danyelza is Y-mAbs flagship product, but the company also has omburtamab in advanced stages of the pipeline. This drug candidate saw a setback in October last year, when the FDA refused to file the company's Biologics License Application, proposed for the treatment of pediatric patients with CNS/leptomeningeal metastasis. Y-mAbs has been in steady communication with the FDA since then, with a new target date for the BLA at the end of 2Q21 or early in 3Q21. These two drugs – one approved and one not yet – form the basis of the JPM outlook on this stock. Analyst Tessa Romero writes, “Our thesis revolves around the de-risked nature of the pediatric oncology pipeline. Our recent KOL feedback is enthusiastic about use of lead asset Danyelza in patients with high-risk neuroblastoma (NB). For second lead asset omburtamab in NB metastatic to the central nervous system (CNS/LM from NB), while the ‘Refuse to File’ last year and subsequent regulatory delays were certainly disappointing, we still see a high probability of approval for the product in the 2Q/3Q22 timeframe…” Looking ahead, Romero sees an upbeat outlook for the company: “Coupling our anticipation of a healthy launch for Danyelza, with regulatory/clinical momentum expected in the near- to mid-term, we see shares poised to rebound and see an attractive buying opportunity at current levels.” The analyst puts a $52 price target on YMAB shares, implying an upside of 86% for the year ahead, and supporting an Overweight (i.e. Buy) rating. (To watch Romero’s track record, click here) Overall, the Wall Street reviews break down 3 to 1 in favor of Buys versus Holds on Y-mAbs, giving the stock a Strong Buy consensus rating. The shares have an average price target of $61.25, suggestive of a 121% upside potential this year. (See YMAB stock analysis on TipRanks) To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights. Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
Alphabet Inc. Chief Executive Sundar Pichai sold another chunk of shares this week, valued at nearly $7 million, as the stock surged to record highs.