Aug 29 (Reuters) - Sinotruk Hong Kong Ltd:
* FRANZ NEUNDLINGER HAS TENDERED HIS RESIGNATION AS AN EXECUTIVE DIRECTOR Source text for Eikon: Further company coverage:
Aug 29 (Reuters) - Sinotruk Hong Kong Ltd:
* FRANZ NEUNDLINGER HAS TENDERED HIS RESIGNATION AS AN EXECUTIVE DIRECTOR Source text for Eikon: Further company coverage:
In another bearish signal for oil demand, a variant of the coronavirus has swept through India, the world’s third-biggest importer of crude.
By John Jannarone Stable Road Acquisition Corp. (NASDAQ: SRAC) narrowly secured enough votes to avoid being dissolved and will have more time to finalize the regulatory process in its merger with Momentus, a space-industry startup that provides last-mile services such as moving satellites. The SPAC had 66.2% of shareholders vote in support of the extension, […]
(Bloomberg) -- Altimeter Growth Corp., the blank-check company merging with internet giant Grab Holdings Inc., is hovering just a few cents above its record low after cratering 28% since the deal was unveiled in April.Altimeter closed Thursday at $11.06, just shy of its $10.98 historical trough. That selloff came after Southeast Asia’s most valuable startup announced a deal on April 14 with the special purpose acquisition company of Brad Gerstner’s Altimeter Capital Management to go public in the U.S. by July, in the largest-ever merger with a blank-check company.The Singapore-based ride-hailing and delivery startup is set to have a market value of about $39.6 billion through the combination with Altimeter, the companies said at the time of the announcement. It’s raising more than $4 billion from investors including BlackRock Inc., Fidelity International and T. Rowe Price Group Inc. as part of the biggest U.S. equity offering by a Southeast Asian company. Grab declined to comment on Friday.“SPACs have seen a bit of selloff so it reflects the general sentiment,” said Angus Mackintosh, founder of CrossASEAN Research. The share price at current levels won’t make a big difference from Grab’s listing perspective, he added. “It just means profits your SPAC owners would realize are diluted to some extent. They have effectively locked in cornerstone investors at a $40 billion valuation. Whether Grab can sustain that lofty valuation after listing, given the competitive landscape, is a bigger question.”Nirgunan Tiruchelvam, head of consumer sector equity research at Tellimer in Singapore, said Altimeter’s share price drop suggested the market is uncomfortable with the valuation pledged for Grab, as well as indicative of weakness in the broader SPAC market.Blank-check companies completed $181 billion of U.S. listings over the last five quarters, accounting for 55% of all IPO fundraising in New York, according to data compiled by Bloomberg. At the peak of the frenzy, more than 50 SPACs unveiled plans to raise a combined $17 billion during a single week in February.But the pace of new deals has now slowed to a trickle, with only five blank-check companies submitting registration documents in the last week of April. U.S. regulators have been warning investors for months about the potential risks around SPACs. Last month, they spooked dealmakers by floating the potential of different accounting treatment for one aspect of SPAC deals, a move that has forced many companies to review their results.Read more: Singapore’s Grab to List in U.S. in $40 Billion SPAC DealSPACs are investment vehicles that go public despite having no real business. The plan is to raise money from investors and use it to buy into another company, typically a private one that’s yet to be chosen.The investors who buy into and fund SPACs when they first go public are typically institutions such as hedge funds, and the companies offer them the combination of a relatively small downside with a chance to make a tidy profit down the road. Blank checks typically go public at $10 a share and have 24 months to find a target. If the company fails to identify one, it liquidates, and investors get their money back. Investors also get to vote on a deal and have a chance to redeem their shares whatever the result.(Updates with analyst’s comment in 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.
The US dollar has initially rallied against the Japanese yen but gave up some of the gains as we got a little too close to the ¥110 level for comfort.
(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 here.Money markets are wagering on an increase in Bank of England borrowing costs as soon as next year, having only recently erased bets on negative rates.Traders now see 15 basis points of tightening in September 2022. That’s a sharp turnaround from the second half of last year, when traders were contemplating rates of as low as minus 0.1% after the central bank said it was studying the feasibility of such a move. They only removed bets on further loosening in February, when policy makers stressed that negative rates are not imminent as the U.K.’s vaccine rollout transformed the nation’s monetary policy debate. A larger-than-expected increase in U.S. consumer prices on Wednesday triggered a global rates selloff, sending benchmark gilt yields to their highest level in around two months and spurring traders to bring forward their expectations for a BOE rate hike.The central bank traditionally shifts its key interest rate by multiples of 25 basis points, though it cut rates by 15 basis points in March 2020, at the height of the coronavirus pandemic. If officials wanted to tighten financing conditions, a move back to 0.25% is seen by strategists as a plausible first step.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) -- Bird Rides Inc. will go public by merging with a blank-check company, securing a new source of capital after venture capitalists largely lost interest in money-losing scooter rental startups.A special purpose acquisition company called Switchback II Corp. will take Bird public and provide as much as $428 million in funding to the business. The deal has an enterprise value of about $2.3 billion, the companies said in a statement Wednesday.The transaction includes private funding from Fidelity Investments, which had previously backed Bird, as well as a credit facility from other firms.A former Uber Technologies Inc. executive, Travis VanderZanden, founded Bird in 2017. It dropped electric scooters onto the sidewalks of major cities and let customers remotely unlock and rent them using an app. The model was widely copied, including by Uber, and turned Bird into one of the fastest startups to reach a $1 billion valuation.It took only a few years for the scooter fad to fade. Bird and its closest competitor, Lime, cut staff and dialed back operations. Uber also retreated. The coronavirus pandemic dealt a further blow when people curbed travel and fled the city centers that scooter companies occupy.SPACs provide a path to fundraising and the public markets seen as more friendly to cash-burning companies. Last year was by far the biggest for such deals, which have slowed in 2021. Bloomberg first reported in November that Bird was in early-stage talks to merge with a SPAC.Switchback II listed in January and at first indicated it would seek to combine with an energy company. In a statement, Bird highlighted its green-energy bonafides and said it would introduce additional vehicle options, such as bikes, in a bid to reduce use of gas cars.“We plan to scale our platform to provide our low carbon transportation services to more people in more cities around the world,” said Jasmine Wallsmith, a spokeswoman for Bird.The backing from Fidelity represents an apparent reversal for the investment firm. In December, Business Insider reported that Fidelity was looking to unload some Bird shares at a loss.(Updates with comment from Bird in the 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) -- Mexico, Chile and Peru are all expected to hold their key interest rates near or at all-time lows in a bid to support their economies even as inflation spikes and political instability grows in Latin America.Every economist polled by Bloomberg expects central banks from those three countries to hold rates in separate decisions on Thursday -- a stark contrast with Brazil, where policy makers have already delivered two hikes of 75-basis points since March and promised a third one of the same size for June.“Most central banks across the region might remain cautiously on hold, on a rather neutral mode waiting to see more developments on inflation, the recovery and the evolution of local political developments,” said Marco Oviedo, chief Latin America economist at Barclays Plc.Any desire to cut will likely be tempered by above-target inflation in Mexico, and concerns over market stability ahead of elections in Peru.Mexico’s Resilient InflationCurrent rate: 4%Time of decision: 2 p.m. ETThe door for additional rate cuts remains closed in Mexico as rising fuel and food costs catapulted annual inflation to 6.1% in April, more than double the 3% target.Deputy Governor Gerardo Esquivel said last month he expects the price spike to be temporary, since prices are being compared against a deep slump this time last year, with inflation falling within the bank’s range in July. But many economists are less optimistic, starting to anticipate a rate hike in late 2021 or early 2022.High prices will continue “due to real inflationary pressures caused by the economic reopening in the Mexican services sector and the global increase in commoditiy prices,” said Gabriela Siller, director of economic analysis at Grupo Financiero BASE.What Bloomberg Economics Says“Mexico’s central bank is likely to hold the key interest rate at 4% on Thursday. Policy makers may sound a more cautious tone than in the last gathering due to high and resilient inflation through April. Some may keep the door open for additional accommodation, depending on new information.”-- Felipe Hernandez, Latin America economistClick here for the full report.Chile’s Low Rate PledgeCurrent rate: 0.5%Time of decision: 6 p.m. ETChile is forecast to hold its benchmark interest rate at a record-low, as the central bank says inflation will accelerate above target in coming months before returning to the 3% annual goal by December.Board members have also signaled borrowing costs will remain steady at least through year’s end. Any changes to that language may signal rates will move higher sooner rather than later. Indeed, consumer prices rose more than expected in April to 3.3% from the year prior, prompting analysts at Banchile Inversiones and Oxford Economics to raise their 2021 inflation forecasts.Read more: Latin American Central Bankers Stung by Food Inflation JumpIn a meeting with President Sebastian Pinera last week, board members reaffirmed the need for expansive public policies to drive a recovery that remains uneven. The government is unwinding virus quarantines which subjected 90% of the population to strict limits on commerce and movement. Policy makers are also on hold as Chile enters a period of political uncertainty, with the election of an assembly to rewrite the constitution on May 15-16 and a presidential election in November.Peru’s ElectionCurrent rate: 0.25%Time of decision: 7 p.m. ETPeru is forecast to hold borrowing costs at a record low for the 13th month in a row, fulfilling its pledge to keep supporting a pandemic-ravaged economy.Increasing political uncertainty and growing market volatility ahead of next month’s presidential runoff are likely to contribute to the bank’s decision to stay on hold for now.Peruvian bonds and currency crashed last month when Pedro Castillo, a little-known school teacher from a Marxist party, unexpectedly won the first round of elections. In recent days, they’ve recovered some of their losses as Castillo’s lead over former congresswoman Keiko Fujimori narrowed to within the margin of error.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 crack in a bridge over the Mississippi River has stranded more than 700 barges, cutting off the biggest route for U.S. agricultural exports when the critical waterway is at its busiest.The route is shut near Memphis while the Tennessee Department of Transportation inspects a large crack in a highway bridge spanning the river, according to the U.S. Coast Guard. A queue has expanded to 47 vessels and 771 barges, with 430 of those heading north and the rest going south, Petty Officer Carlos Galarza of the Coast Guard’s 8th District said Thursday afternoon by email.The Mississippi River is the main artery for U.S. crop exports, with covered barges full of grain and soy floating to terminals along the Gulf of Mexico, while crude oil as well as imported steel also travel through sections of the waterway. Any sustained outage would disrupt shipments out of the Gulf. Corn futures tumbled by the most allowed under CME Group rules partly on speculation that exports would back up.“The river is the jugular for the export market in the Midwest for both corn and beans,” said Colin Hulse, a senior risk management consultant at StoneX in Kansas City. “The length of the blockage is important. If they cannot quickly get movement, then it is a big deal. If it slows or restricts movement for a longer period it can be a big deal as well.”The stoppage along the Mississippi River is the latest calamity to upend the commodities world in recent weeks. Back in March, the Suez Canal was blocked by a giant container ship that got stuck sideways in the vital waterway for almost a week, paralyzing global shipping. And late last week, a cyberattack brought down the largest fuel pipeline in the U.S. for five days, leading to widespread gasoline shortages from Florida to Virginia.A lengthy halt on the Mississippi River could further roil crop markets, where soybeans and corn futures have hit multiyear highs amid adverse weather in Latin America and a buying spree from China. Corn futures fell Thursday by the exchange limit of 40 cents, or 5.6%, to $6.7475 a bushel in Chicago.As a workaround, traders could in theory also send some supplies on trains and divert to ports along the U.S. Pacific Northwest. Few grain and soy buyers were bidding for barges north of the river closure amid uncertainty on when vessel traffic would resume.The crack halting vehicle and waterway traffic is in the truss of the Interstate 40 Hernando DeSoto Bridge, which was found during a routine inspection, according to a Tuesday statement from the Tennessee Department of Transportation.“The timeline is still undetermined” for the waterway reopening, department spokeswoman Nichole Lawrence said Thursday morning by email.The Army Corp of Engineers could figure out a way to keep automotive traffic closed in order for water traffic to resume under the bridge, according to CRU Group analyst Josh Spoores. It may cause bottlenecks, but most consumers already used to waiting months for supplies to ship are probably fine with some added delays, he said.The New Orleans Port Region moved 47% of waterborne agricultural exports in 2017, according to the U.S. Department of Agriculture. The majority of these exports were bulk grains and bulk grain products, such as corn, soybeans, animal feed and rice. The region also supports a significant amount of edible oil exports, such as soybean and corn oils and even attracted 13% of U.S. waterborne frozen poultry exports in 2017.Some traders speculated that, based on past experience, the river might be partially opened for restricted movements while repairs are being done.“My sense is that it is not a big deal for river traffic as it will be a short-term disruption,” said Stephen Nicholson, a senior analyst for grains and oilseeds at Rabobank. “The good news is most of fertilizer has already come up river and soybean exports are at their low point. However, corn exports continue at a strong pace, so we may see a slight delay in corn barges reaching” New Orleans.It may be difficult for exporters to shift much volume to rail, as the capacity to unload trains outside of the New Orleans area is limited, according to Curt Strubhar, vice chairman and risk management consultant at Advance Trading Inc.“There aren’t many rail unloaders South of the issue,” he said, adding that New Orleans “port elevators aren’t equipped to handle a sharply higher share of rail unloads either.”Of agricultural supplies that floated on barges north of Memphis, about 84% was corn and about 13% was soybeans, according to Mike Steenhoek, executive director of the Soy Transportation Coalition, citing USDA data. Overall shipments of corn and soy during the week ended May 8 were 18% higher than a year ago.Agricultural co-operative Growmark’s St. Louis port, which sends corn and soybeans south to New Orleans for export mostly to China and receives fertilizers, will likely close Friday, according to Matt Lurkins, executive director of the firm’s grain division.“Freight was already tight,” Lurkins said in a phone interview. “Then this kind of sent us over the edge.”If the pause drags on, he said, Growmark could send more grain to processors rather than loading it on barges for export.Small volumes of crude and partly refined oil are shipped by barge on the river as well. In February, 2.85 million barrels moved from the Midwest to the Gulf Coast via barge and tanker, according to government data.Imported steel on barges will be delayed as long as traffic is halted. About 25% of imported steel travels through at least a section of the Mississippi River, according to Wood Mackenzie analyst Cicero Machado, though he said newly arriving foreign steel to ports in New Orleans or Mobile, Alabama can be diverted onto rail cars or trucks.The river also is a major artery for steel shipments within the U.S. and delays could become an issue for automakers in the South that depend on high-strength steels produced in the Midwest, he said.“At this stage the big question is: is this going to last?” Machado said. “The issue is not actually in the river, it’s in a bridge over the river -- so perhaps they’re going to find a way to manage the traffic there.”(Adds Coast Guard update in 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.
The Tesla CEO sent the price of Bitcoin and other cryptocurrencies plummeting. But he may be aiming to turn crypto-mining green in ways that benefit Tesla.
The Walt Disney Co. blew away earnings expectations with a Thursday report, but shares still fell in late trading as the pandemic-fueled growth of its streaming services slowed down.
(Bloomberg) -- Prices paid to U.S. producers rose in April by more than forecast, adding to signs of a growing wave of inflationary pressure that’s extending to American consumers.The producer price index for final demand increased 0.6% from the prior month after a 1% gain in March, according to data from the Labor Department Thursday. Excluding volatile food and energy components, the so-called core PPI advanced 0.7%.A Bloomberg survey of economists called for a 0.3% monthly gain in the overall measure and a 0.4% rise in the core figure. The April advance was broad across both goods and services. The S&P 500 rose in early trading, while the yield on the 10-year Treasury note eased.As production costs continue to climb, a report Wednesday showed consumer prices are following suit, stoking the flames of an already heated debate about the path and durability of inflation that the Federal Reserve views as temporary.The PPI tracks changes in production costs, and supply bottlenecks and shortages tied to the pandemic recovery have caused commodity prices to soar. At the same time, labor costs have begun picking up. Together, the increases represent a threat to profit margins unless companies pass along the higher costs and boost productivity.Fed officials have said price pressures from pent-up demand and bottlenecks will likely prove temporary, but many others expect the pickup in inflation to prove more lasting.“There is more inflation coming,” Luca Zaramella, chief financial officer at Mondelez International Inc., said on the food and beverage maker’s April 27 earnings call. “The higher inflation will require some additional pricing and some additional productivities to offset the impact.”Consumer InflationWednesday’s data -- which showed the strongest monthly gain in the overall consumer price index since 2009 -- suggest companies are passing along at least some of the input-price inflation. The report also showed record monthly price surges in airfares and hotel stays, reflecting the impact from a broader reopening of the economy.The annual advance in the overall PPI accelerated to a 6.2% gain, a figure biased higher by the fact that it was compared to the very low reading seen in April 2020. The increase was the largest in data back to 2010.A separate Labor Department report Thursday showed applications for regular state unemployment benefits declined for a second week, to a fresh pandemic low. A slew of states have recently announced intentions to stop federal pandemic relief programs prior to their expiry in September.Producer prices excluding food, energy, and trade services -- a measure often preferred by economists because it strips out the most volatile components -- jumped 0.7% from the prior month and increased 4.6% from a year earlier.While the advance was broad-based across goods and services, about two-thirds of the monthly gain can be attributed to the 0.6% gain in prices for final demand services, the Labor Department said. The indexes for portfolio management, airline passenger services, food retailing, physician care and building materials and supply retailing all moved higher.The advance in the goods index reflected an 18.4% jump in prices received for steel mill products as well as increases in the prices for a variety of meat, residential natural gas, plastic resins and materials, and dairy products.Michael Hsu, chief executive officer at consumer-product maker Kimberly-Clark Corp., said in April that the maker of Scott toilet paper and Huggies diapers is “moving rapidly especially with selling price increases to offset commodity headwinds.”(Adds markets in third 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 IRS sent out COVID-19 relief checks to nearly 1 million more Americans in the ninth batch of payments made under Biden's American Rescue Plan.
Now that the IRS knows what you earned last year, you may be eligible for more support.
USA TODAY answers the most asked questions regarding the Colonial Pipeline cyber attack and what states are struggling to keep gas stations stocked.
The company that operates America's biggest fuel pipeline has reportedly paid a ransom of nearly $5m (£3.5m) to hackers who shut down the facility last week triggering fuel shortages and price hikes across the East Coast. Colonial Pipeline paid the extortion fee on Friday, Bloomberg reported, despite reports that it had no plans to do so and concerns that paying a ransom simply encourages hackers. The pipeline is not yet back at full force following the cyberattack on Friday, when the criminal gang Darkside locked computers controlling the pipeline. The pipes transport 2.5m barrels a day of diesel, petrol and jet fuel across 5,500 miles of pipelines linking refiners on the Gulf Coast to the eastern and southern US. The shutdown triggered fuel shortages from Virginia to Florida and panic buying, with the national US gasoline price rising above $3 a gallon and jumping as much as 11 cents in a day in some areas.
A pipeline hack has pumped up the average price, but it's not the only source of pain.
By Yasin Ebrahim
The Japanese tech investor smashed profit records in its home country, capping a wild year in which it rode roller-coaster stock markets from the lows at the beginning of the pandemic to recent highs.
CEO Brian Armstrong said on the company’s Q1 earnings call that it would list coins on the first day that they trade.
(Bloomberg) -- Fisker Inc.’s existing agreement to develop an electric vehicle with Foxconn Technology Group will now include a factory in the U.S., the companies said in a statement Thursday.The joint project -- codenamed Project PEAR -- is targeting a start of production in the U.S. by the fourth quarter of 2023. The companies said they’re considering multiple sites around the world to support eventual global manufacturing capacity of 250,000 units a year. The partners plan to unveil a prototype of their jointly developed car later this year.Los Angeles-based Fisker’s shares rose as much as 22% to $12.13 in late trading in New York. The stock is down 32% this year through Thursday’s close. Hon Hai Precision Industry Co., the main listed arm of Foxconn, is up 14% for the year in Taipei. Electric vehicles have risen in prominence in recent months, with everyone from established automakers like Geely to smartphone purveyor Xiaomi Corp. making big investments in the category. Foxconn has an EV platform that will be used to launch two light vehicles in the fourth quarter of this year, Chairman Young Liu said in February. The company has also inked a manufacturing deal with Chinese startup Byton Ltd. and been among a coterie of suppliers and assemblers linked with a potential Apple Inc. car.Read more: IPhone Maker Foxconn to Help Launch Electric Cars This YearFisker is one of a wave of startups to go public via a special purpose acquisition company, or SPAC, and seek a fast-track challenge to Tesla Inc. in the EV market. It’s also the second battery-powered-car venture founded by its namesake founder and chief executive officer, Henrik Fisker, a longtime auto designer. Fisker’s first venture, Fisker Automotive, filed for bankruptcy in 2013.China Tech Giants Bet $19 Billion on Global Electric Car FrenzyUnder the agreement, Fisker and Foxconn will jointly invest in Project PEAR -- short for Personal Electric Automotive Revolution -- with each company taking proceeds if the launch is successful. Spending on the partnership will be hefty. Liu told analysts on Friday that building 10,000 cars per month in the U.S. will require $1 billion of capital expenditure, though he declined to elaborate on how the two companies will split the costs.Foxconn has said it will decide between Mexico and Wisconsin for the site of its first electric-car plant this year. The companies didn’t disclose any specifications of the vehicle they’re developing.The companies said the jointly developed vehicle will be priced below $30,000. Taiwan-based Foxconn, best known for assembling iPhones, is the second major manufacturer with which Fisker has announced a partnership since reaching a deal to go public last year. In October, the EV startup said Magna International Inc. would help it build its debut model. The Ocean electric SUV is scheduled to start production in late 2022 at a Magna facility in Graz, Austria.(Updates with Hon Hai executive’s comments in sixth paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.