TAIPEI (Reuters) -Taiwan's Foxconn said on Wednesday it has formed a joint venture with Yageo Corp to expand its presence in the semiconductor industry, as a global chip shortage rattles producers of goods from cars to electronics. The supply bottleneck has led to production cuts and warnings of supply chain disruption from manufacturers across the world this year. Electronics manufacturing conglomerate Foxconn, which counts tech giants such as Apple among its top clients, said in a statement the two companies will set up a new firm in Taiwan called XSemi Corporation.
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.
(Bloomberg) -- For investment-grade companies on the cusp of junk, it might not be so bad on the other side.The additional cost for firms to borrow in the U.S. high-yield market versus high grade narrowed to 197 basis points Monday, the tightest since before the global financial crisis, according to Bloomberg Barclays index data. The spread last dipped below 200 basis points in 2007, the data show.A relentless rally in junk-rated debt is narrowing the gap, as high-yield spreads also hit a pre-crisis tight Monday. Yields dropped to an all-time low as investors pile into riskier assets for higher returns, betting a recovery will boost particularly the most speculative names.Cheap borrowing costs are encouraging a barrage of high-yield issuance, which has broken records in every month this year after setting a new high mark in 2020. It’s especially helping the lowest-rated companies tap the market, with CCC yields dropping 34 basis points to a new low of 5.72%.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) -- Mike Novogratz’s Galaxy Digital Holdings agreed to buy crypto custodian BitGo Inc. in a cash and stock transaction valued at about $1.2 billion.Galaxy is paying $265 million in cash and is issuing 33.8 million shares to finance the acquisition. BitGo shareholders will own 10% of the company. The deal broadens Galaxy’s offerings and geographic reach.“The acquisition of BitGo establishes Galaxy Digital as a one-stop-shop for institutions and significantly accelerates our mission to institutionalize digital asset ecosystems and blockchain technology,” Novogratz, Galaxy’s New York-based chief executive officer and founder, said in a statement.Cryptocurrency prime broker BitGo was founded in 2013 by Mike Belshe, an engineer who’s previously worked on Google’s Chrome. He’s joining Galaxy as deputy chief executive officer and will become a member of the company’s board of directors.“Joining Galaxy Digital represents an exciting new chapter for our business, as our current clients gain access to a wide set of financial solutions,” Belshe said in a release.BitGo, with over 400 institutional clients, has more than $40 billion in assets under custody and serves over 150 exchanges, according to a press release. The company processes roughly 30 billion transactions per month and supports the custody of more than 400 coins and tokens.“We’ve built this company where we invested in all things blockchain, we traded and participated on top of the blockchain, and now with the 60-plus blockchain engineers, we actually get to build the infrastructure of the future,” Novogratz said in an interview on Bloomberg Television.It’s the second high-profile acquisition in the crypto space in recent days. Coinbase Global Inc., the newly public crypto firm, at the end of April acquired Skew, a data analytics and trade execution platform focused on cryptocurrency derivatives.The cryptosphere has grown in recent months as institutional and retail investors take a greater interest amid a red-hot rally in digital-asset prices. Bitcoin, the largest digital coin, has gained more than 500% over the past year. The Bloomberg Galaxy Crypto Index, which tracks multiple cryptocurrencies, is up nearly 800% over the same period.(Updates with comments from BTV interview.)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.
(Bloomberg) -- Investors are piling back into some of the fringe corners of the cryptocurrency world, with the frenzy sending Dogecoin surging more than 50% again and crashing Robinhood’s trading app.Other so-called altcoins also took off, with Dash spiking 18% over a 24-hour period through the European morning on Wednesday and Ethereum Classic rising almost 45%. In the world of DeFi, tokens such as Force DAO and Tierion surged more than 1,000% on Tuesday, according to CoinMarketCap.com data. Meanwhile, Robinhood said it resolved earlier issues with crypto trading on its platform.“You have money looking for a home and this is one of those areas of the market where there is speculation happening, there is significant appreciation happening in a short period of time,” said Chad Oviatt, director of investment management at Huntington Private Bank. “You get that excitement there.”The rallies defied easy explanation and continued a trend that’s seen the value of all digital tokens surge past $2.3 trillion. Doge, created as a joke in 2013, has been used in marketing gimmicks -- the latest by the Oakland A’s baseball team, which offered two seats to games this week for 100 Dogecoin. The Gemini crypto exchange backed by Tyler and Cameron Winklevoss said it now supports Doge, and will soon enable trading of it.Dogecoin’s red-hot advance from around 0.002 cents a year ago -- when it was worth about $300 million -- has captured the interest of many on Wall Street. It’s even caught the attention of the Federal Reserve -- the central bank’s chairman last week answered “some of the asset prices are high” when asked if things like GameStop Corp.’s and Dogecoin’s supercharged rallies created threats to financial stability.As a sign of Dogecoin’s rising popularity, the Robinhood app is among the top 10 downloads at the Apple App Store. Meanwhile, Coinbase Global, the largest U.S. crypto exchange -- which doesn’t offer Doge trading -- saw its shares fall 4.6% Tuesday, its lowest close since its market debut last month.“It’s pretty amazing that something that started out as a joke has become so popular,” said Matt Maley, chief market strategist for Miller Tabak + Co.Though interest in digital assets has picked up in recent months as more traditional firms who were long hesitant to the crypto space warm up to cryptocurrencies, it’s alternative coins that have captured the most attention in recent days. Bitcoin has taken a backseat following record-setting rallies from Ether and Doge, wrote Edward Moya, senior market analyst at Oanda.“The Dogecoin bubble should have popped by now, but institutional interest is trying to take advantage of this momentum and that could support another push higher,” he said in a note. “Dogecoin is surging because many cryptocurrency traders do not want to miss out on any buzz that stems from Elon Musk’s hosting of Saturday Night Live.”Elsewhere, a new Ether ETF trading in Canada called the CI Galaxy Ethereum ETF (ETHX) broke its record volume on Tuesday. It’s up more than 20% in the first two days of the week.Bitcoin rose modestly on Wednesday, snapping a three-day losing streak. It was up 0.8% to $55,213 as of 9:29 a.m. in London on Wednesday.Meanwhile, many -- including famed crypto investor Mike Novogratz -- have warned that the rallies could be unsustainable. Novogratz, chief executive officer of Galaxy Digital Holdings, said recently he’d be “very, very worried” were one of his friends to invest in Doge.“It seems that investors are careening from one hot dot to another, like a pinball game,” said Mike Bailey, director of research at FBB Capital Partners. “My sense is this speculative wave will suffer the same fate as the GME and other Robinhood ‘flash-in-the-pan’ stocks. Cryptocurrencies may have become a new asset class, like precious metals, but surges such as these seem unsustainable.”(Updates prices throughout.)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 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.
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.
Though mortgage rates are at their lowest levels in months, refinance activity is quieter.
Prices are on the rise, but there are ways you can lessen the impact on your wallet.
In one of the more light-hearted moments of Berkshire Hathaway's annual shareholders meeting on Saturday, Ajit Jain, vice chairman of Insurance Operations, was asked if he'd be willing to underwrite the insurance to cover Elon Musk's SpaceX mission to Mars, assuming Musk asked.
Some of your favorite consumer brands want more of your money because of surging inflation.