July 20 (Reuters) - Unigroup Guoxin Microelectronics Co Ltd :
* SAYS CHAIRMAN LI MING RESIGNS DUE TO CHANGE IN JOB ROLE Source text in Chinese: https://bit.ly/2LszMpy Further company coverage: (Reporting by Hong Kong newsroom)
July 20 (Reuters) - Unigroup Guoxin Microelectronics Co Ltd :
* SAYS CHAIRMAN LI MING RESIGNS DUE TO CHANGE IN JOB ROLE Source text in Chinese: https://bit.ly/2LszMpy Further company coverage: (Reporting by Hong Kong newsroom)
Investors appear unwilling to give up until there is definitive proof that the Fed is getting ready to begin tapering its bond purchases.
(Bloomberg) -- Monde Nissin Corp. has set a final price of 13.50 pesos per share for its initial public offering, putting the Philippine food maker on track to raise $1 billion in the nation’s biggest ever first-time share sale.The producer of the Southeast Asian country’s best-selling instant noodle brand Lucky Me! is selling 3.6 billion shares at that price, it said in a letter to the local stock exchange on Thursday. That’s lower than the 17.50 pesos maximum price indicated in its IPO filing.Still, at 48.6 billion pesos ($1 billion), Monde Nissin’s offering will be the biggest on record in the country. Del Monte Philippines Inc., another food company best known for its pineapple products, last month filed for an IPO that could raise as much as 38.3 billion pesos. SM Investments Corp.’s 28.8 billion-peso IPO in 2005 was the biggest so far, according to data compiled by Bloomberg.It is not uncommon for Philippine IPOs to price below the maximum indicated level. Monde Nissin’s shares are expected to begin trading on June 7, according to an earlier prospectus.World-Lagging Philippine Stocks Lack Technical Support: ChartPhilippines, which has seen DDMP REIT Inc. raise 13.4 billion pesos in the only stock listing so far this year, has another large deal in the pipeline. National Grid Corp. of the Philippines has picked banks to work on an IPO to raise at least $1.5 billion, Bloomberg News reported in March.Monde Nissin makes crackers, muffins and biscuits, and has a presence in more than 30 countries, according to its website. In 2015, the Makati-based firm acquired British meat substitute maker Quorn Foods Ltd. for 550 million pounds ($764 million).Monde Nissin plans to use the IPO proceeds for purposes including loan repayment and general corporate use, according to an earlier filing.UBS Group AG, Citigroup Inc., Credit Suisse Group AG and JPMorgan Chase & Co. are the joint global coordinators of the deal, while the local lead underwriters are BDO Capital & Investment Corp., BPI Capital Corp. and First Metro Investment Corp.(Adds more details 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.
Stable Road is still 6% short of the 65% needed to approve an extension amendment Extension amendment must be approved by May 13 to prevent SPAC from being dissolved Investors show very strong support for deal with stock trading at $11 vs. $10.03 cash in trust If SPAC is dissolved shareholders will receive $10.03 in […]
(Bloomberg) -- Science 37 Inc., a digital operating system that facilitates clinical trials, has agreed to go public through a reverse merger with a blank-check company, according to people with knowledge of the matter.The Los Angeles-based firm will merge with a special purpose acquisition company, LifeSci Acquisition II Corp., said the people, who asked not to be identified because the information is private. Science 37 has an enterprise value of $1.05 billion in the transaction, the people said.The transaction will include a $200 million private placement from investors, the people said. The deal could be announced as soon as Friday, they said.Representatives for Science 37 and LifeSci Acquisition II declined to comment.Science 37, whose name references the normal human body temperature in Celsius, allows patients to participate in trials of new drugs and medical equipment from their own homes.Researchers use its platform to conduct telehealth check-ins, as well as for administrative tasks such as securing patient consent agreements, according to its website. The company lists Amgen Inc. and Genentech Inc. among its investors and partners.LifeSci Acquisition II, backed by boutique investment bank LifeSci Capital, raised $80.1 million in November in an initial public offering. It said in its listing documents that it was seeking targets in the biopharma, medical technology, digital health and health-care services sectors.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) -- Qatar’s prosecutor ordered the arrest of Finance Minister Ali Sharif Al-Emadi to question him over alleged abuse of power and misuse of public funds, a state-run news agency said.The country’s ruling emir said he’d relieved Al-Emadi of his office and entrusted his duties to the current Minister of Commerce and Industry, Ali Al Kuwari, according to an announcement released hours after arrest was made public.Al-Emadi was named finance minister a day after Sheikh Tamim bin Hamad Al Thani took over leadership of the country in June 2013, and has held the role since. The prosecutor has launched an investigation, Qatar News Agency said Thursday. No further details were immediately available.The arrest was unusual, because allegations of criminal conduct by senior state officials or members of ruling families in the Gulf are typically addressed behind closed doors. Saudi Arabian Crown Prince Mohammed bin Salman’s declared anti-corruption drive in 2017, which targeted royals and businesspeople, was an exception.Qatar’s dollar bonds held on to most of their earlier gains following the news, with the yield on the securities due 2050 down about 4 basis points to 3.4%. The country’s stock market had already closed for the weekend.Board PositionsAl-Emadi had been a stalwart of Qatar’s financial system, helping to transform Qatar National Bank from a local champion into the region’s biggest lender as its chief executive from 2007 to 2013. He still serves as chairman of the bank’s board, and is also president of the executive board of Qatar Airways, and on the board of Qatar Investment Authority, the country’s sovereign wealth fund.The Financial Times reported that allegations against him concern bribery and commissions related to government contracts, citing a person in Doha who the newspaper said was briefed on the investigation but didn’t name. The investigation is centered on his conduct as minister, and not his other positions, it said.More recently, amid speculation that Al-Emadi had fallen out of favor, he was replaced as chairman of the Qatar Financial Centre -- a platform through which most foreign financial firms working in the country are registered and among agencies that encourage foreign investment.Al Emadi has been regarded as a budget-conscious finance chief, reluctant to raise excess debt even though Qatar’s bond yields are among the lowest in developing economies.At the same time, he’s overseen heavy spending in preparation for the 2022 FIFA World Cup that Qatar is to host. Bloomberg Intelligence estimates the country will plow $300 billion into infrastructure projects ahead of the soccer tournament.(Updates with allocation of duties 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.
(Bloomberg) -- Mubadala Investment Co. joined global investors like KKR & Co. in pouncing on opportunities presented by the pandemic, embarking on a record dealmaking spree while many of its peers among sovereign wealth funds hunkered down.In a year that saw the worst oil-price crash in a generation, Mubadala delivered a record income for the Abu Dhabi government as it doubled down on a bet that sectors like technology and consumer goods will benefit the most from the economic recovery. Abu Dhabi’s second-largest wealth fund said on Thursday that new investments last year amounted to 108 billion dirhams ($29.4 billion).With stakes in businesses from the retail unit of India’s Reliance Industries Ltd. to U.S. private equity firm Silver Lake and an ambition of doubling in size over the next decade, Mubadala stood out in seizing on dislocations in markets caused by the pandemic. State funds’ overall investments dropped almost 20% last year, according to New York-based adviser and data firm Global SWF.Mubadala’s pace put it on par with KKR, which was the top spending private equity firm globally from the start of April through December last year, according to data compiled by Bloomberg. KKR invested a total of $29.5 billion in public and private markets in 2020.“We navigated our portfolio through the dramatic macro-economic decline of early 2020, and decided to accelerate the pace of our capital deployment, ending the year with record profit and growth,” said Mubadala’s managing director and group chief executive officer, Khaldoon Al Mubarak.The annual review published on Thursday showed Mubadala’s assets under management across the group reached 894 billion dirhams, from 853 billion dirhams in 2019. It also said five-year returns on its portfolio were 9.8%, dating to 2016.The fund recently changed the way it reports its results. It eliminated categories such as annual revenue and net income, saying it would no longer release data “not relevant to a long-term investor” and would instead disclose a multi-year metric.Technology, HealthMubadala is plowing money into high-growth sectors such as technology and health care as the emirate looks to reduce its traditional reliance on oil and gas. Abu Dhabi, the capital of the United Arab Emirates, is home to almost 6% of the world’s oil reserves.For 2020, Mubadala said its total comprehensive income rose to 72 billion dirhams from 53 billion dirhams in 2019, citing growth in its public equities portfolio and funds in addition to the company’s assets across various sectors. It said the UAE and the U.S. remain its largest investment destinations but that it also expanded in India, France, China and Russia.Mubadala, which earlier this year overhauled its internal structure, also cashed out of some commitments, collecting 104 billion dirhams last year by monetizing mature assets and distributing investments locally and abroad.“In line with our long-term strategy, we increased our investments in sectors where we have high conviction, and with high performing fund managers,” Al Mubarak said.Abu Dhabi’s $232 Billion Mubadala Wants to Take Crack at Top 10Funds from Gulf states have been chasing overseas investments to reduce reliance on their oil-dependent home markets. Kuwait’s $124 billion pension fund is reducing its allocation to stocks in favor of alternatives and sees “lots of opportunities” in infrastructure over the next few years, especially in the U.S., its director general said in November.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) -- Volkswagen AG raised its earnings outlook after a strong start to the year, while cautioning that the semiconductor shortage rippling through the industry will become more pronounced in the second quarter.Operating return on sales is forecast at 5.5% to 7% this year, compared with a previous range of 5% to 6.5%, Europe’s largest automaker said Thursday in a statement. VW also raised its projection for net cash flow and net liquidity.“We started the year with great momentum and are on a strong operational course,” Chief Executive Officer Herbert Diess said in the release.While demand has rebounded across the industry, manufacturers are now grappling with an acute chip shortage that’s forcing them to halt production lines and prioritize some vehicles. Diess said the company will feel more pain in the second quarter and that some lines will stop “for a few days, a few weeks,” though the fallout won’t be as pronounced as with some rivals.VW shares reversed initial gains and traded down 2.5% in Frankfurt, valuing the manufacturer at 120.6 billion euros ($145 billion).Daily BattleStellantis NV warned this week that the global semiconductor shortage will deteriorate further from the first three months of the year, while Ford Motor Co. has forecast a $2.5 billion hit to earnings from scarce chip supplies.“We’re fighting day by day,” Diess said in an interview with Bloomberg TV. “We’re doing everything to keep production running.”Still, the fallout from the disruptions might lower VW’s second-quarter return on sales to about 5%, down from 7.7% in the first three months, he said during a call with analysts.VW is at a pivotal moment in getting its electric-car push off the ground and narrow the gap to Tesla Inc. Among the new models this year are the VW ID.4 and the Audi Q4 e-tron, two crossovers about the size of Tesla’s popular Model Y, as part of the industry’s largest rollout of electric cars. Diess said that electric vehicles are actually less affected by the chip shortage, supporting the company’s efforts to tilt production more into that space.Two months after mapping out plans to build six battery factories in Europe VW is still in talks with potential partners and governments over possible partnerships to finance the projects. Decisions could be made “in the next couple of months” and include initial public offerings of “some of the activities,” Diess said. First-quarter operating profit surged to 4.8 billion euros from 900 million euros last year, when the Covid-19 pandemic shuttered showrooms and factory floors. The group’s Audi and Porsche premium brand continued to be largest profit contributors, accounting for just over half of the group’s earnings with 2.58 billion euros combined.The German carmaker targets becoming the global EV leader by 2025 at the latest and is allocating substantial financial and management firepower to boost software expertise under a new unit named Cariad. VW’s shares have soared since Diess wooed investors in March with back-to-back briefings on standardizing key technologies across VW’s 12 brands for scale effects that’ll likely elude both Tesla and established automakers.Steel PricesThe recovery in demand is helping to fuel VW’s costly electric plans. Total deliveries during the first quarter jumped 21% to 2.43 million vehicles, mainly driven by a surge in China. Deliveries of electrified models more than doubled to 133,300 vehicles, of which 59,900 were battery electric vehicle and the remainder plug-in hybrids.The Wolfsburg-based manufacturer has targeted selling roughly 600,000 purely battery-powered cars this year and is “fully on track” to comply with tightening European emission rules, Diess said.Besides the semiconductor shortage, rising prices for raw materials from steel to precious metals are also taking their toll on the car industry, Diess said. “Finding new sources, that’s going to be a challenge for 2021 for sure,” Diess said. “Demand is rising for everyone, and supply is constrained.”(Updates with comments from analyst call 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) -- Alto Pharmacy, a startup that specializes in same-day delivery of prescription medications, is in talks to go public via a blank-check firm affiliated with Alec Gores, according to people with knowledge of the matter.A deal between Alto and Gores Technology Partners II Inc., featuring a so-called private investment in public equity, or PIPE, is set to value the combined entity at around $2.3 billion, one of the people said. A transaction hasn’t been finalized and it’s possible talks could collapse, but if one is reached, it could be announced in the coming weeks.Representatives for Gores and Alto declined to comment.Alto is projected to deliver revenue of about $700 million in 2021, a figure that may exceed $2 billion in 2022, one of the people said. The San Francisco-based startup, founded in 2015 and led by CEO Matt Gamache-Asselin, operates in cities including New York, Los Angeles, Denver, Dallas, Houston and Seattle. A single Alto distribution location delivers to the same area as about 400 chain pharmacies, its website shows.Alto was last valued at $600 million, according to PitchBook. Its backers include SoftBank Group Corp.’s Vision Fund 2, GreenOaks Capital, Jackson Square Ventures, Olive Tree Capital and Zola Global. The company was previously known as ScriptDash.Gores Technology Partners II raised $460 million in a March initial public offering. Justin Wilson, now a Gores senior managing director and co-CEO of the SPAC, led SoftBank’s investment in Alto alongside Jeff Housenbold.“U.S. pharmacies comprise a $350 billion market, but providers and consumers face meaningful pain points,” Wilson said in a February 2020 statement announcing SoftBank’s investment in Alto. “Traditional pharmacies still rely on outdated technologies like phone, fax, and paper, that aren’t built for our increasingly digital world.”Other digital health startups including Hims Inc., Talkspace, 23andMe Inc. and DocGo Inc. have agreed to go public via SPAC mergers.(Updates with revenue projections 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.
(Bloomberg) -- Nintendo Co. shares slid as it warned that component shortages could affect production and gave a conservative profit forecast for the year, overshadowing better-than-expected earnings for the past quarter.The Kyoto-based studio forecast a 22% drop in operating profit in the current fiscal year, to 500 billion yen ($4.6 billion), significantly below analysts’ expectations. Nintendo, like many Japanese companies, often begins the year setting expectations low so it has room to upgrade its outlook later.Shares fell as much as 3.1% in Friday trading in Tokyo following the cagey outlook and chip warning, extending a 6.4% decline for the year. “There has been considerable stock market pessimism about Nintendo’s longer-term prospects,” Citigroup analyst Kota Ezawa wrote in a note after the results. “The possibility is emerging of positives finally drying up.”The company is targeting sales of 25.5 million consoles in the year ending March 2022, having sold 28.8 million units in the prior period. Internally, Nintendo’s management is shooting for production of between 28 and 29 million consoles, according to people familiar with the projections who asked not to be named disclosing company targets.Nintendo’s results do suggest that the Covid-era boom in gaming that turned Animal Crossing: New Horizons into a global online town hall has legs. It reported operating income of 119.5 billion yen for the March quarter, trouncing the average forecast of 68.3 billion yen.President Shuntaro Furukawa told reporters on Thursday that Nintendo wasn’t able to produce as many Switch devices as it had hoped due to component shortages. Recent demand has been higher than the company anticipated and the console hasn’t yet reached its peak, he added. Nintendo’s goal is now to surpass its official target of selling 190 million software units this year.The handheld-hybrid Switch maintained momentum in the face of newer gaming machines from Sony Group Corp. and Microsoft Corp., both of which have also suffered from chip shortages limiting production. Buoyed through most of 2020 by Animal Crossing’s runaway success, Nintendo’s signature device rode blockbuster titles including Capcom Co.’s latest Monster Hunter installment and Konami Holdings Corp.’s Momotaro Dentetsu during the most recent quarter.Nintendo’s own product lineup has been relatively quiet in recent months. Bloomberg News has reported that the company plans a big rollout of new titles alongside an upgraded version of the aging Switch -- with a faster Nvidia chip and a Samsung OLED display -- in the latter half of the year. The original console is now more than four years old and was joined by a more affordable Switch Lite variant in late 2019.What Bloomberg Intelligence SaysNintendo needs to drive software sales, live services and mobile games to support earnings growth beyond this fiscal year ending March, in our view, as the Switch platform enters the mature phase of its cycle. Switch hardware sales may peak in 2020 absent a reported but as yet unconfirmed Pro version, putting greater onus on software to drive profit.- Matthew Kanterman and Nathan Naidu, analystsClick here for the research.Read more: Nintendo Is Said to Target Record Year in Switch, Game SalesThe coronavirus outbreak was at first a brake and then an accelerant for Nintendo, choking its supply chain before triggering a demand surge with global lockdowns driving people to seek entertainment and escape. The company’s hardware sales improved by 37% and its software sales also rose 37% to 231 million units over the past fiscal year. It increased its proportion of sales coming from digital downloads to 43% from the previous 34%.(Updates with share price and analyst comment 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.
(Bloomberg) -- Mitsui & Co. is exploring a deal to take Malaysian hospital group IHH Healthcare Bhd. private, according to people with knowledge of the matter.Some private equity firms have approached the Japanese trading house to team up on the potential transaction to buy out IHH’s other shareholders, said one of the people, who asked not to be named as the information is private. Mitsui has reached out to Khazanah Nasional Bhd., IHH’s second largest shareholder, to pick up its stake, another person said.IHH, which is listed on the stock exchanges of Malaysia and Singapore, has a market value of 49 billion ringgit ($12 billion). Shares in Kuala Lumpur closed up 7.7% following the Bloomberg News report, their biggest intraday move since March 2020.Discussions are still in the early stages and there is no certainty that Mitsui would proceed with an offer, said the people. Representatives for IHH and Mitsui declined to comment. A representative for Khazanah didn’t immediately respond to requests for comment.Mitsui raised its stake in IHH in 2018 to 32.9%, after buying additional shares in the hospital operator from Malaysian sovereign wealth fund Khazanah. The Japanese firm is now the single biggest shareholder in the company, followed by the Kuala Lumpur-based state investment firm with 26%, according to data compiled by Bloomberg.IHH, which employs over 65,000 people across 80 hospitals in 10 countries, offers health-care services ranging from primary care to acute medical treatment, according to its website. It manages a portfolio of health-care brands such as Acibadem, Fortis and Gleneagles in markets including Malaysia, Singapore, Turkey and India.The company is considering selling its medical education arm, International Medical University, in a deal that could fetch about $300 million, Bloomberg News has reported.(Updates with share price move in third paragraph and company comment 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.
(Bloomberg) -- Software provider Monday.com is working with Goldman Sachs Group Inc. on a U.S. initial public offering, according to people familiar with the matter.The company has filed confidentially with the U.S. Securities and Exchange Commission for a listing that could come as soon as this quarter, said one of the people, who asked not to be identified because the matter is private.Monday.com’s plans aren’t final and the timing and details of its potential listing could change, the people said.Representatives for Monday.com and Goldman Sachs declined to comment.The startup, which was founded in 2014 in Israel, makes software to help employees work remotely. It was valued at $2.7 billion last year, Bloomberg News previously reported. That was up from the $1.9 billion value it had in a funding round in 2019, according to data provider PitchBook.With the rise of the work-from-home trend during the coronavirus pandemic, demand for the company’s products surged. Monday.com co-founder and Chief Executive Officer Roy Mann said in an interview last May that the company had accelerated plans to double its workforce to 720 employees.Monday.com, with offices in Tel Aviv and New York, has raised $234.1 million from investors such as Hamilton Lane Inc., Sapphire Ventures and Entrée Capital.It’s one of the many technology companies with roots in Israel looking to test the U.S. public market. Another software company that started in Israel, Riskified Ltd., is preparing for a U.S. IPO this year, Bloomberg News reported on Thursday.New listings for enterprise software firms, which make most of their money selling their products to other companies, have been done well in the market. Automation software maker UiPath Inc. has risen 24% from its IPO price last month.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.
Elon Musk, CEO of Tesla and SpaceX, likes cryptocurrency, such as bitcoin and dogecoin. But he's urging investors to proceed "with caution."
HELP ME RETIRE Dear MarketWatch, My wife and I recently sold our home. After paying capital gain taxes, we look to net about $1 million. We are both in our late 60s. My wife is retired, and I work part time in my profession, currently grossing approximately $50,000 a year.
(Bloomberg) -- Stifel Financial Corp. is being urged to pull out of a controversial municipal bond financing for two privately owned prisons in Alabama that activists have described as “toxic.”The funding plan has not moved forward after two other banks serving as underwriters on the $634 million publicly offered bond issue -- Barclays Plc and KeyBanc Capital Markets -- dropped out of the transaction last month after facing pressure from activists and investors. The agency issuing the bonds on behalf of a CoreCivic Inc.-owned entity also left the transaction, and so did the bond trustee.The St. Louis-based bank said it acknowledged the concerns and that there were “many sides” to the issue, according to a letter sent Thursday to activists that was provided to Bloomberg News by a bank spokesperson. The financing would build new prisons that are publicly run but owned by prison giant CoreCivic as part of an effort to address poor infrastructure in the state’s prison system.Justice Capital, an impact investing firm, said in a statement on Thursday that Stifel “has yet to pull out of the deal, concerning clients and the larger investment industry.” The firm, along with representatives firms like Basso Capital and Candide Group, and local activist groups like Alabama Students Against Prisons signed a letter to Stifel CEO Ronald Kruszewski about the transaction. A separate group of activists also sent a letter to the bank about the financing.Veronica R. Johnson, deputy director of the Alabama Justice Initiative, sent a letter to Kruszewski on behalf of different activist groups this week. The letter asked him to suspend the firm’s involvement in the project. “At present, Stifel is standing alone in financing a project that has been deemed toxic and unethical by peer financial institutions,” the letter said.“Although there are many sides to this issue and little common ground, we believe that there is a general acknowledgment that the State of Alabama faces challenges in the current and historical operation of its correctional systems,” Stifel’s Joel Jeffrey, senior vice president for investor relations, wrote Thursday in response.Jeffrey invited Johnson to contact him to discuss the issue in more detail. The Stifel letter added that the bank doesn’t comment on potential transactions and that it’s not party to the state’s political process to figure out potential solutions.A spokesperson for the bank declined to comment further.Alabama Governor Kay Ivey has said the prison projects will move forward, but a spokesperson for her office earlier this week declined to provide additional details on the plan for the financing.Barclays’ decision to drop the financing last month is a sign of the growing power of investors focused on financing projects that advance social and environmental causes. With billions of dollars flowing into so-called ESG funds, that’s created a lucrative new line of business that banks are eager to court.The prison business has long been targeted by activists who say the profit-motive gives an incentive to cut costs, hurting rehabilitation efforts.“We call on Stifel and all investors and financial institutions to stop the financing of mass incarceration and urge them to join us in making investments in community-led public health, safety, and infrastructure to become a part of the solution,” Christina Hollenback, founding partner Justice Capital, said in the statement.A client of Stifel, hedge fund Basso Capital, had concerns about the bond deal, the statement added.“As a long-standing trading client of Stifel, we are halting our business with them as long as their policy to finance mass incarceration stands, and we urge other Stifel clients and partners to do the same,” Howard Fischer, chief executive officer of Basso Capital, said in a statement.Related: As Barclays Prison Bond Unraveled, ESG Activists Scored Rare WinFor 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.
You could be entitled to additional money, based on your 2020 income tax return.
(Bloomberg) -- Societe Generale SA turned in its best equities-trading performance since 2015, rebounding from a disastrous quarter a year earlier and providing relief to Chief Executive Officer Frederic Oudea as he prepares to unveil his new investment bank strategy.Revenue at the equities business -- hit last year by market volatility -- was the high point in a strong trading quarter for the French bank, soaring to 851 million euros ($1.02 billion) compared with analyst estimates of 573 million euros. Fixed income revenue and provisions were also better-than-expected.European and Wall Street banks reported their best equities revenue in years after booming stock markets and retail-investor volatility during the height of the pandemic continued into the new year. The rally is easing pressure on Oudea after the bank’s first annual loss in more than three decades last year, prompting him to reshuffle top management and pledge buybacks.“Market conditions were very positive in the beginning of the year, and there’s always a seasonality,” Oudea said in an interview with Bloomberg TV on Thursday. “But we are confident for the overall year.”SocGen rose as much as 4.5% in early Paris trading and gained 4.3% as of 9:05 a.m., taking this year’s increase to about 45%.Equities revenue was hammered in the first half of 2020 by losses on structured products hurt by companies canceling dividends, triggering a review and a 684 million-euro writedown at the unit. SocGen is cutting about 450 million euros of costs until 2023 at the business and has designed new products. Still, its equities performance since then has been uneven, with gains in the third quarter giving way to declines in the fourth.The first-quarter performance of the equities unit “shows that the franchise is really intact, and that we made the right decision to redesign the portfolio of structured products,” Oudea said. The bank plans a group-wide strategic plan in the first half of next year once there’s greater clarity on the economic recovery, he said.In a bid to boost profitability, he’s started cutting hundreds of jobs at the investment-banking unit and merged the domestic retail networks to reduce the number of branches. Last month, SocGen also agreed to sell its 170-billion euro asset management arm Lyxor to Amundi for 825 million euros. The deal accelerates the bank’s exit from asset management, even as the sector shows higher valuation multiples, making it a growth priority for some peers.French rival BNP Paribas -- which also saw equities income erased a year earlier -- posted its best quarter from that business since 2018, though couldn’t match SocGen’s performance in fixed income, where it missed estimates. On Friday, Barclays Plc’s equities unit reported a 65% year-on-year jump in equities revenue, making it its best quarter ever.Elsewhere, the implosion of Bill Hwang’s Archegos Capital Management spoiled what would otherwise have been strong trading performances by the Swiss banks. U.S. banks’ equity-underwriting fees were almost quadruple their first-quarter 2020 level in aggregate, according to Bloomberg Intelligence, marking the third quarter in a row of growth more than doubling.SocGen’s investment bank saw its revenue soar 54% to about 2.5 billion euros in the first three months topping analysts’ estimates. The division’s new head, Slawomir Krupa, will update strategy on Monday, just as the unit is dealing with a round of job cuts announced in November.During the first quarter, SocGen also joined other European lenders in posting lower provisions and set aside 276 million euros to cover potential bad loans, less than the the 715.8 million euros that analysts anticipated. The lender expects its cost of risk for the year at between 1.6 billion euros and 1.85 billion euros, or about half its 2020 level.Many big European lenders have bolstered profit by stashing less money for doubtful loans than last year or by freeing up reserves. Deutsche Bank AG, Banco Santander SA and Lloyds Banking Group Plc are among the firms to argue that rosier economic prospects justify such moves.SocGen’s CET1 ratio, a key measure of its capital strength, rose to 13.5%, above analysts estimates. The bank expects the Lyxor deal to have a positive impact of about 18 basis points on its core capital ratio, while share buybacks should have a negative impact of 13 basis points.Other highlights of SocGen’s earnings:Revenue EU6.24b vs EU5.89b est.Global Markets EU1.65b vs. EU1.31b est.Fixed Income & Currencies EU625m vs. EU569.7M est.Equities & Prime Services EU851m vs. EU572.7M est.CET1 Ratio 13.5% vs. 12.99% est.Net income EU814m vs. EU258.3M(Updates with strategic plan 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.
In an interview with Fortune, Alba talked about taking her “fourth baby” (a.k.a. her company) public.
The crypto run this time has two features the 2017 version didn’t—institutional adoption and actual applications.
(Bloomberg) -- Coinbase Global Inc. sank to a record low as investors fled high-flying market newcomers.The operator of the largest U.S. cryptocurrency exchange slumped 6% to $256.76 on Thursday, dropping for a fourth straight day. That left the shares just above the $250 reference price for its April direct listing. An exchange-traded fund that tracks shares of companies that recently went public plunged for an eighth day, the longest slide since 2015. Virgin Galactic Holdings Inc. and Opendoor Technologies Inc., companies that came to market through blank-check offerings, each sank at least 3.8%.“We saw a mini-bubble in SPACs, IPOs, crypto, clean-tech and hyper-growth in late 2020 and early 2021 and many of these asset classes are nursing bad hangovers,” said Mike Bailey, director of research at FBB Capital Partners.Coinbase’s slide comes as investors pour into extremely speculative cryptocurrencies such as Dogecoin and Binance Coin -- tokens that the exchange doesn’t offer. Most of its traffic had come from Bitcoin trades, but the price of the largest crypto coin has been mired in a narrow band for weeks. Coinbase started trading at $381 on April 14 before briefly topping $400. It’s now down 22% from the close on its first day.Nasdaq had set a reference price of $250 a share on April 13 for Coinbase’s direct listing, a number that’s a requirement for the stock to begin trading, but not a direct indicator of the company’s potential market capitalization.“What has really hurt Coinbase, now that their direct listing has taken off, you’re seeing expectations that other exchanges are coming on board,” said Edward Moya, senior market analyst at Oanda. “There’s this belief this could be as good as it gets for Coinbase in the short-term.”The Renaissance IPO ETF dropped 4.2% on Thursday, bringing its year-to-date loss to about 14%.(Updates prices.)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.
Bill Gates transferred stakes in several companies to Melinda Gates on the day the power couple announced their divorce