July 4 (Reuters) - Roshow Technology Co Ltd:
* SAYS GENERAL MANAGER SHEN DONGCHU RESIGNS DUE TO HEALTH REASONS Source text in Chinese: https://bit.ly/2lR1pKH Further company coverage: (Reporting by Hong Kong newsroom)
July 4 (Reuters) - Roshow Technology Co Ltd:
* SAYS GENERAL MANAGER SHEN DONGCHU RESIGNS DUE TO HEALTH REASONS Source text in Chinese: https://bit.ly/2lR1pKH Further company coverage: (Reporting by Hong Kong newsroom)
NEW YORK/CHICAGO (Reuters) -General Electric Co shareholders rejected top executives' compensation packages, including a payout of as much as $230 million to CEO Larry Culp, at the industrial conglomerate's annual shareholder meeting on Tuesday. While the shareholder vote was non-binding, the move was a rare rebuke of a major corporation's handling of its executive pay. As part of an extension of Culp's employment contract to 2024, GE last August canceled old shares given to him and granted him new shares tied to lower financial targets.
Middle Eastern national oils are heading to increased asset monetization, partly to reap the financial rewards of entering financial markets, locking in demand regions or to mitigate energy transition risks.
(Bloomberg) -- Saudi Arabia lowered oil prices for customers in its main market of Asia as a surge in coronavirus cases crimps demand in India, the world’s third-largest crude importer.The kingdom’s state energy firm, Saudi Aramco, reduced pricing for June shipments to the continent by between 10 and 30 cents per barrel.The key Arab Light grade for Asia was cut to $1.70 a barrel above the benchmark from $1.80 for May. That’s the first reduction in official selling prices for the grade since December, signaling weakness in Asian oil markets.The reductions had been anticipated in the market. Aramco had been expected to lower Arab Light’s premium by 20 cents, according to a Bloomberg survey of seven traders and refiners.Saudi Energy Minister Prince Abdulaziz bin Salman has urged fellow members of OPEC+ to be cautious as the group eases supply cuts started last year when the pandemic was hammering energy markets. The 23-nation cartel plans to increase daily output by just over 2 million barrels through to July, beginning with 600,000 this month. That would still leave production roughly 5 million barrels a day below pre-pandemic levels.Aramco raised pricing to the U.S. by 20 cents a barrel for all grades. The nation is adding jobs amid economic growth and a push for widespread vaccinations. The company cut pricing for all shipments to Northwestern Europe and the Mediterranean, where efforts to bolster the economy and ease lockdowns have met with mixed results.Brent crude has climbed almost 35% this year, closing in on $70 a barrel as vaccination rollouts enable the U.S., Europe and some other major economies to reopen. Aramco Chief Executive Officer Amin Nasser said on Tuesday he’s more optimistic about the outlook for oil.Still, the pandemic has rapidly worsened in India since the start of April. The country is now reporting around 400,000 cases every day.Most Middle Eastern countries set monthly prices as a premium or discount to a benchmark. Aramco’s OSPs serve as a bellwether for oil markets and often lead the pricing trend in the region. Abu Dhabi issued its first OSP based on trading in crude futures this month, a step in its efforts to establish its oil as the regional benchmark.(Updates with pricing for the U.S. and Europe in sixth paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
(Bloomberg) -- A week that could set in motion the eventual collapse of the 314-year union between England and Scotland is concentrating City trading desks on market disasters ahead.As Scots enter a May 6 vote pitched on whether there should be a second independence referendum, fund managers and sell-side strategists see potential for massive chaos across the U.K.’s economic landscape in the years to come. Yet in an echo of the early days of the Brexit poll, few are hedging for this disruptive prospect.While the stakes could hardly be higher, it’s not clear the U.K. government will agree to another referendum, even if pro-independence parties win a majority on Thursday. But with the vote stirring uneasy memories of Britain’s split from the European Union, fund managers are dusting off old playbooks for how to trade a binary risk event where timing is everything.“You’d have massive uncertainty, financial chaos and recession,” and a 10% devaluation of the pound, said Mark Nash, a money manager at Jupiter Investment Management.Nash isn’t hedging such a scenario yet -- and neither is the market. The median of forecasts in a Bloomberg survey has the pound holding at $1.39 through June.Still, a handful of investment analysts have ventured forth bearish calls.Strategists at Credit Agricole SA recommend shorting the pound versus the dollar, with political risk over Scottish independence among the reasons.Barclays Plc abandoned a call to go long on the pound versus the euro on the potential for pre-election volatility.UBS Group AG credit strategists cut their outlook on a select group of U.K. bank bonds to neutral from overweight, warning that the “long U.K. trade” in credit could unravel on referendum risk.One thing is for certain: if things escalate, money managers will need to move fast. Odds show a repeat of the 2014 referendum, where Scotland voted to remain, would be too close to call.“Markets ignore things and ignore things and ignore and then suddenly panic. I have a feeling that is quite likely to happen with the Scottish independence issue,” said Jane Foley, head of currency strategy at Rabobank. “What I’m telling our clients is to be aware that even though this may not impact the pound right now, it’d be foolhardy to ignore it because it might suddenly come into the market’s agenda.”Consequences of secession would be huge. Negotiations would be necessary over what currency an independent Scotland would use, whether it would take a share of the British national debt, and what trade arrangements it would have with the remainder of the U.K. The Scottish National Party also harbors ambitions to bring Scotland into the EU, a situation that would create huge border and trade tensions, if the problem of ring-fencing Northern Ireland in Brexit is any example.“I wonder whether markets have actually considered the full ramifications of this election,” said Julian Howard, director of multi-asset solutions at GAM Investments, whose portfolios are strategically positioned for a decline in sterling. “It would be a lot worse than Brexit as Scotland is much more closely stitched to the U.K. than Britain was into Europe. We’re talking since the 1700s rather than the 1970s.”Mr. BrexitThe domicile of financial institutions could also be contested. If they were to remain based on Edinburgh, Scottish banks would miss out on the support of the Bank of England’s quantitative easing program and become less creditworthy, according to Charlie Parker, managing director at boutique investment manager Albemarle Street Partners.It’s the kind of tail-risk event that makes careers, for those with enough foresight to get it right.At Nomura Holdings Inc., strategist Jordan Rochester was part of a team that developed a money-spinning model to help the bank call the 2014 referendum result early. His political analysis on the split from the EU then led him to be nicknamed Mr. Brexit. Now he says the pound could fall up to 6% if Scotland voted to leave, depending on how priced it was prior to the result.But even he isn’t worried about the election on Thursday itself, and says the pound could even be in line for gains if the SNP fails to win more than half of the seats, as some polls suggest. Still, the independence cause could prevail once Green votes are counted, and an actual referendum date could trigger heavy hedging.Read: Why Scotland’s Road to Independence Vote Is Rocky: QuickTake“The market will look at polling in a new referendum and treat it much more like a tighter vote than 2014 -- when it was only last-minute scares, not months in advance,” Rochester said.Westminster would likely mount resistance to any plans to seek an independence vote, refusing to grant the Scottish parliament the permission to make it legally watertight. That leaves the potential for a lengthy constitutional quagmire over whether the Scottish parliament can call a legitimate referendum on its own.Even though the prospect of an invigorated Scottish break-away movement is scary for traders, derivatives markets remain relatively calm. The term structure of sterling’s implied volatility has become inverted, signaling angst over events on Thursday -- though the cost of insuring swings is still below its 12-month average. Over the longer-term, five-year risk reversals in cable trade near their average since Bloomberg began compiling data in 2005.“The difficulty with assessing the impact of these events on markets is that even if we know they are on the horizon, we don’t know when markets will react and if in the end the status quo will prevail,” said Sheena Shah, currency strategist at Morgan Stanley. Her firm sees a 30% chance of a referendum by the end of 2024. “There are so many unknowns and follow-up hurdles.”(Updates options pricing in penultimate 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.
If the economic reports don’t move gold prices then comments from Chicago Federal Reserve Bank President Charles Evans could.
(Bloomberg) -- Stocks almost wiped out their gains as technology shares turned lower, offsetting optimism over solid corporate earnings and economic reports. Treasuries climbed.The S&P 500 notched an advance of less than 0.1% while the Nasdaq 100 ended in the red. The Dow Jones Industrial Average rose to a fresh record. Moderna and Johnson & Johnson retreated, while Pfizer finished little changed on news the U.S. will support a proposal to waive intellectual-property protections for Covid-19 shots. Peloton tumbled after recalling its treadmill products. Copper and lumber rallied, adding to inflation worries.As the world’s largest economy rebounds, an intense debate has emerged over whether actual price pressures are set to materialize. The five-year breakeven rate -- a proxy for the annual inflation rate bond traders expect over the span -- jumped to the highest since 2008. Despite the increase in commodity prices and supply shortages, several Fed officials said Wednesday that inflation is unlikely to get out of control.Money managers who’ve spent the bulk of their careers profiting from deflationary trends need to quickly switch gears or risk an “inflation shock” to their portfolios, warned JPMorgan Chase & Co. chief global markets strategist Marko Kolanovic.“Given the still high unemployment, and a decade of inflation undershoot, central banks will likely tolerate higher inflation and see it as temporary,” he wrote. “The question that matters the most is if asset managers will make a significant change in allocations to express an increased probability of a more persistent inflation.”Here are some key events to watch this week:Bank of England rate decision ThursdayThe April U.S. employment report is released on FridayThese are some of the main moves in markets:StocksThe S&P 500 was little changed as of 4 p.m. New York timeThe Nasdaq 100 fell 0.3%The Dow Jones Industrial Average rose 0.3%The MSCI World index rose 0.3%CurrenciesThe Bloomberg Dollar Spot Index was little changedThe euro was little changed at $1.2003The British pound rose 0.1% to $1.3907The Japanese yen rose 0.1% to 109.20 per dollarBondsThe yield on 10-year Treasuries declined two basis points to 1.57%Germany’s 10-year yield advanced one basis point to -0.23%Britain’s 10-year yield advanced two basis points to 0.82%CommoditiesWest Texas Intermediate crude fell 0.6% to $65 a barrelGold futures rose 0.6% to $1,787 an ounceFor 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 U.S. court could order the Dakota Access Pipeline (DAPL) shut in coming weeks, disrupting deliveries of crude oil, and making nearby rail traffic more congested. WHAT IS DAPL? The 570,000-barrel-per-day (bpd) Dakota Access pipeline, or DAPL, is the largest oil pipeline out of the Bakken shale basin and has been locked in a legal battle with Native American tribes over whether the line can stay open after a judge scrapped a key environmental permit last year.
(Bloomberg) -- Discover what’s driving the global economy and what it means for policy makers, businesses, investors and you with The New Economy Daily. Sign up hereIndia’s central bank announced new loan-relief measures for small businesses and pledged to inject 500 billion rupees ($6.8 billion) of liquidity to support the economy against a second deadly coronavirus wave.Some businesses will be eligible for loan restructuring to give them more time to repay debt and keep them going through the pandemic, Reserve Bank of India Governor Shaktikanta Das said in an unscheduled address on Wednesday. He also announced steps to boost credit for health care services, provide fresh lending to vaccine-makers and a bond-buying program.The Covid-19 wave that has slammed India in recent weeks is likely to worsen before tapering off sometime later this month, forecasters warn. Pressure from industry groups has started mounting on Prime Minister Narendra Modi to impose lockdowns across the country to stem its spread, a move he has so far resisted to avoid the economic damage suffered last year.“Given the state of daily infections and the impact on economy, the announced measures are a start, but perhaps not material enough to help the financial sector,” said Saswata Guha, senior director of financial institutions at Fitch Ratings Ltd. in India. “The impact of the second wave can be much more on the small businesses and individual borrowers.”READ: World’s Biggest Covid Crisis Threatens Modi’s Grip on IndiaSovereign bonds gained, with the yield on benchmark 10-year notes falling two basis points to 5.99%. Banking shares rose 1.1%, outperforming a 0.6% gain in the bellwether stocks index. The rupee weakened to 73.97 versus the dollar.“The devastating speed with which the virus affects different regions of the country has to be matched by swift-footed and wide-ranging actions that are calibrated, sequenced and well-timed so as to reach out to various sections of society and business right down to the smallest and the most vulnerable,” Das said.Here are the key takeaways from Das’s speech:RBI to buy 350 billion rupees of bonds under the ‘Government Securities Acquisition Programme’ -- India’s version of quantitative easing -- on May 20Sees outlook ‘highly uncertain’ and clouded with downside risks, but doesn’t see a major change to inflation forecastCentral bank allowed lenders to dip into their floating provisions to set aside money for bad loans till March 31 2022Small businesses can avail a fresh loan recast, provided they weren’t part of a previous program last September and were servicing debt regularly as of March 31RBI will provide separate liquidity of up to 100 billion rupees ($1.4 billion) via three-year repo operations to small finance banks to lend to poor borrowersDas has been meeting with bankers and shadow lenders in recent weeks to discuss the economic situation, possible stress to balance sheets and credit flow in the system.Localized lockdowns imposed by Indian states to flatten the world’s fastest-rising pandemic curve have already started to impact businesses and jobs, with the potential to increase the number of problem loans.(Updates with analyst comment in third paragraph, details in fourth and fifth.)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.
Cathie Wood's ARK Innovation exchange-traded fund is significantly oversold and due for a bounce, but if it doesn't come the popular fund risks suffering a “waterfall” decline, says one chart watcher.
(Bloomberg) -- Jeff Bezos sold about $2.5 billion of Amazon.com Inc. stock, his first big disposal this year after offloading more than $10 billion worth of shares in 2020.Bezos sold around 739,000 shares this week under a pre-arranged trading plan, according to U.S. Securities and Exchange Commission filings. He plans to sell as many as 2 million shares, according to a separate filing.The world’s richest person continues to hold more than 10% of Amazon.com, the primary source of his $191.3 billion fortune, according to the Bloomberg Billionaires Index. In the 15 years after Amazon.com went public in 1997, Bezos sold about a fifth of the online retailer for roughly $2 billion. The value of his stake has ballooned in recent years to such an extent that he can now sell relatively small amounts for billions of dollars.Amazon stock is little changed this year after rallying 76% in 2020 as the Covid-19 pandemic kept people away from physical stores and encouraged online shopping.The Amazon founder has used stock sales to fund rocket company Blue Origin, while he’s committed $10 billion to the “Bezos Earth Fund” to help counter the effects of climate change.The rocket maker said Wednesday it has set July 20 for its first mission carrying people to space and plans to auction off one seat on its New Shepard rocket.Bezos would be far richer if it weren’t for his divorce from MacKenzie Scott. She received a 4% stake in Amazon as part of the split and quickly became one of the world’s most important philanthropists.(Updates with Blue Origin plans 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.
It appears that Shark Tank investor Kevin O’Leary no longer thinks bitcoin is “garbage.” The chairman of O’Shares ETF told Yahoo Finance Live that he’s allocated 3% of his portfolio to the world’s largest cryptocurrency after his native Canada, and a handful of other countries, eased restrictions on institutional buying of the asset.
A year into the pandemic, some homeowners say loan servicers aren't giving them clear information about mortgage forbearance.
(Bloomberg) -- Peloton Interactive Inc.’s earnings report on Thursday was supposed to be the company’s chance to show off faster product deliveries. Instead, the equipment-maker finds itself in a tight spot over treadmill recalls that has investors second-guessing their devotion to a foundering stock.After weeks of pushing back against U.S. regulator warnings about Peloton’s treadmills following the death of a child and other safety incidents, the recall jarred traders and even prompted a rebuke from a senator. The stock sank 15%, the most in six months, as investors considered the costs in addition to potential knock-on effects that could threaten sales growth.“This may have other unquantifiable impacts to long-term demand,” said Ed Yruma, a KeyBanc analyst. Yruma, who has a buy-equivalent rating, said he would be re-evaluating his financial projections after Peloton’s earnings call on Thursday afternoon.Investors’ love affair with Peloton was already strained before the recalls.Shares of the the New York-based company had fallen 36% this year as it struggled with extended delivery times and the easing of Covid-related lockdowns raised concerns about sales growth in coming quarters.The stock is now the worst performer in the Nasdaq 100 Stock Index after soaring more than fivefold in 2020. Still, of the 29 analysts tracked by Bloomberg that cover Peloton, all but five were recommending investors buy the stock ahead of Wednesday’s news. Wall Street’s optimism combined with sinking shares have pushed the gap between analyst targets and the stock price to 90%, the widest margin since Peloton’s 2019 market debut.Peloton’s predicament is reminiscent of those endured by other consumer-facing companies that were hit with blows to their reputations at a time they were enjoying a honeymoon with Wall Street analysts. Usually, the path to recovery is neither swift nor sure.After Chipotle Mexican Grill Inc. grappled with diners being sickened by food-borne illnesses, the stock needed almost four years to retrace the highs touched in 2015. Lululemon lost some of its halo last decade after complaints about the fabric quality in yoga pants -- a situation worsened when the company founder suggested in 2013 that the gripes arose because the clothes just didn’t work “for some women’s bodies.” That stock took about six years to climb back into record territory.Prior to the recall, Peloton bulls had been banking on a strong earnings report as a potential rally starter, with expectations for progress in fixing shipping delays after the company pledged to spend more than $100 million to improve delivery times. The focus has now shifted to details about the recall, including costs, how Peloton plans to implement fixes and the fate of its new treadmill model that was set to debut in the U.S. later this month.In earnings calls with analysts over the past several months, Peloton executives touted how the cheaper Tread model beat sales expectations in the U.K., saying that it could eventually be a “rocket ship” for the company. The treadmill opportunity was potentially larger than bikes, they said, and expected its impact to be larger in fiscal 2022.Long-Term CommitmentIn spite of a near term hit to the company’s bottom line and potentially to its reputation amid the likelihiood for more lawsuits, most analysts are still positive on Peloton’s ability to maintain a rapid pace of revenue expansion. As of late afternoon Wednesday, Peloton got only one downgrade, a cut to neutral from buy, at Bank of America.“We acknowledge that this recall will likely result in significant near-term one time financial costs and operational disruption, with potential reputational damage,” said Truist analyst Youssef Squali, who has a buy rating.While Squali anticipates the new treadmill release will probably be delayed, he estimates that treadmill sales account for less than 10% of Peloton’s revenue and said the company’s long-term growth prospects remain intact.Peloton’s “long-term standing (after it puts this issue behind it) and opportunity within this massive segment remain strong,” he wrote in a research note on Wednesday.What Bloomberg Intelligence said:The recall could lead to a financial impact of $550-$600 million, assuming a 100% recall rate. The near-term hit on growth may not be significant, as we calculate more than 90% of its hardware revenue comes from bikes.- Amine Bensaid, BI analyst(Adds details of other consumer product crises beginning 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.
The cryptocurrency that no one was meant to take seriously spiked to just under 70¢ before losing a little ground.
Wealthy investor Mike Novogratz says that the run-up in dogecoin is a reflection of the disenchantment of younger investors in the current state of financial markets and the economy and cautioned that trying to bet on the parody coin at these current levels is dangerous.
Since January, the price of Bitcoin has surged 89%. But another major cryptocurrency has posted even larger returns.
Caesars Entertainment Inc. shares spiked in after-hours trading Tuesday after the casino company revealed another big loss in the first quarter, but outlined a strong rebound in the works in Las Vegas.
The trading app experienced issues with crypto trading, and users are furious.
In July, the IRS will begin sending monthly payments of $250 or $300 to low- and moderate-income families who qualify for the child tax credit.
The housing market is red hot at the moment, with the Case-Shiller index soaring. But Morgan Stanley has some good reasons why the current situation isn't a bubble.