WASHINGTON (AP) — Consumer spending tumbles 1% in February as severe winter storms disrupt activity; incomes slide 7.1%.
WASHINGTON (AP) — Consumer spending tumbles 1% in February as severe winter storms disrupt activity; incomes slide 7.1%.
The latest in NYDIG’s year of institutional partnerships has perhaps the broadest potential for financial inclusion in Bitcoin yet.
(Bloomberg) -- West Fraser Timber Co. plans to expand capacity at five of its lumber mills in the U.S. South as a home-building boom fuels lumber demand.The pandemic-fueled surge in home construction last year took North American sawmills by surprise, sending lumber prices to new records. U.S. futures this week hit $1,600 per 1,000 board feet for the first time, a four-fold increase from a year ago. While production has since ramped up, demand continues to outpace supplies as home-buying and renovations continue.“In the lumber segment we expect to invest approximately $150 million at five of our U.S. South lumber mills under the strategic capital program,” the company said Thursday in a statement. “Investments at the target mills will expand their capacity, increase the mix of higher-margin 2x4s and reduce fixed and variable production costs.”Key TakeawaysThe Vancouver-based company acquired Norbord Inc., one of the world’s biggest makers of oriented strand board, in February. West Fraser said it will invest $30 million at two OSB mills to improve productivity.Log costs for the company’s Canadian and engineered wood product operations are expected to remain elevated as long as demand exceeds available log supply in B.C.Higher Canadian stumpage rates and increased costs from extreme weather in the U.S. south, negatively impacted adjusted EBITDA compared to the prior quarter, the company said.Adjusted EBITDA for lumber in the last three months of 2020, when prices were unseasonably high due to strong home building and renovation demand, was $425 million. This jumped to $646 million in the first three months of 2021.West Fraser said it will move forward with roughly $180 million of additional capital projects in the second half of 2021 through 2023, and reiterated its capital expenditure target of roughly $450 million this year.Market ReactionWest Fraser shares are up 28% this year through Thursday’s close, after reaching a record high at C$106.42 last month in Toronto, outperforming the nearly 11% gain of Canada’s benchmark S&P/TSX Composite Index.Get MoreFirst-quarter adjusted EBITDA was $1 billion or $6.96 a share, missing the C$1.18 billion average estimate in a Bloomberg survey.Read more about West Fraser’s quarterly results here.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) -- Stocks climbed as data showing the world’s largest economy is strengthening overshadowed inflation worries ahead of Friday’s jobs report. The dollar retreated.The S&P 500 traded near session highs, while the Dow Jones Industrial Average climbed to a record and the Nasdaq 100 underperformed. China’s shares traded in New York briefly extended losses after Bloomberg News reported the Biden administration is likely to preserve limits on U.S. investments in certain companies from the Asian nation.Applications for U.S. state unemployment insurance fell last week to a fresh pandemic low as labor market conditions continued to improve and the economy reopened more broadly. Separate data highlighted a rebound in productivity as the pace of output exceeded a pickup in hours worked. Traders are now awaiting Friday’s employment report, which is expected to show the U.S. added about 1 million jobs in April.“With jobless claims hitting a pandemic-era low, anticipation for the full jobs picture tomorrow mounts,” said Mike Loewengart, managing director of investment strategy at E*Trade Financial. “Today’s read is another proof point that we’re one step closer to full economic recovery. As we see some serious momentum building on the jobs front, all eyes will be on how this plays into action taken by the Fed.”After closing at a fresh high on Wednesday, the Dow Jones Transportation Average -- considered a barometer of economy activity -- surged 25% above its 200-day moving average. The move could be “perceived as indicative of strength likely to continue in the broader equity market,” said Bloomberg Intelligence’s Gina Martin Adams.These are some of the main moves in markets:StocksThe S&P 500 rose 0.5% as of 3:43 p.m. New York timeThe Nasdaq 100 rose 0.4%The Dow Jones Industrial Average rose 0.7%The MSCI World index rose 0.5%CurrenciesThe Bloomberg Dollar Spot Index fell 0.4%The euro rose 0.5% to $1.2062The British pound was little changed at $1.3895The Japanese yen rose 0.1% to 109.05 per dollarBondsThe yield on 10-year Treasuries was little changed at 1.57%Germany’s 10-year yield was little changed at -0.23%Britain’s 10-year yield declined three basis points to 0.79%CommoditiesWest Texas Intermediate crude fell 1.3% to $65 a barrelGold futures rose 1.7% to $1,815 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.
(Bloomberg) -- A group of investment firms including Centerbridge Partners is preparing a new offer to buy Hertz Global Holdings Inc. out of bankruptcy, setting up a final showdown over the company in an auction next week.The group, led by Centerbridge, Warburg Pincus and Dundon Capital Partners, plans to sweeten a previous offer that was surpassed by a plan from Knighthead Capital Management and Certares Management, according to people with knowledge of the matter who asked not to be named because the bid isn’t yet public. Terms of the new bid couldn’t immediately be learned, but any exit plan would be subject to bankruptcy court and board approval.The Knighthead and Certares plan assigned Hertz an enterprise value of around $6.2 billion and offered shareholders a mix of cash and warrants worth around $2.25 a share, Bloomberg previously reported.Hertz will review final proposals from both groups to determine if they meet its qualifications, and pick a winner in an auction currently scheduled for Monday. The Centerbridge group has until the end of Friday to submit a formal counteroffer, which kicks off the court-supervised auction process.A representative for Centerbridge didn’t immediately comment, while a spokeswoman for Warburg Pincus declined to comment. Representatives for Dundon Capital Partners and Hertz didn’t immediately respond to requests for comment.The firms have been dueling with Knighthead and Certares over ownership of Hertz, with both investor groups submitting multiple rounds of proposals to buy the company. The brawl comes amid surging demand for car rentals and summer travel that has let many firms raise prices while still leaving them without enough cars for customers to drive off the lot.The latest plans from both groups offer lenders and bondholders full repayment and a partial recovery for shareholders, a relative rarity in bankruptcy proceedings.Hertz initially chose an iteration of the Centerbridge group’s plan, and U.S. Bankruptcy Judge Mary Walrath last month approved a so-called breakup fee for those funds if they were later outbid. Hertz has been rushing to exit bankruptcy by summer to take advantage of a hot stock market and participate in the travel boom. Rival Avis Budget Group Inc. has seen its shares more than double this year.The case is Hertz Corp. 20-11218, U.S. Bankruptcy Court, District of Delaware (Wilmington).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 dollar fell and a gauge of global equity markets rose on Thursday as surging commodity prices spurred the prospect of rising inflation and led investors into economically-sensitive stocks on the reflation trade. Aluminum prices approached levels last seen in 2018 and copper prices flirted with 10-year peaks. Gold jumped more than 1% as the weaker dollar and easing Treasury yields propelled the precious metal, an inflation hedge, above the key $1,800 an ounce psychological level.
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(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 hereThe Brazilian real advanced after the central bank lifted its benchmark rate by 75 basis points and promised another hike of the same size next month in a renewed push to bring inflation back to target.The currency was up 1.3% to 5.2853 per dollar as of 12:43 p.m. in New York, among the best performers in emerging markets. The real leads gains among major currencies in the past month, up 5.9% amid rising commodity prices, and analysts say the central bank decision opens room for more gains.Officials on Wednesday raised the Selic to 3.5%, in line with estimates from all economists in a Bloomberg survey and the guidance given by policy makers at their prior meeting in March. If it makes good on its promise, the bank will have raised borrowing costs by 225 basis points to 4.25% by June.“This more hawkish statement should bring short-term strength to the BRL,” Rabobank economists Mauricio Une and Gabriel Santos wrote in a note. “We had thought they would not signal the following step hike now.” They expect the central bank to raise rates to 5.5% by the end of the year and to 6.5% in 2022.The bank, led by its President Roberto Campos Neto, is acting to rein in inflation that’s surged above the target ceiling to a four-year high. Food and fuel costs have jumped in recent months, and the government recently restarted emergency aid that will firm up demand. Put together, analysts see consumer prices above target this year and next amid an incipient recovery.What Bloomberg Economics Says“The central bank tried to reach a compromise: it promised another sharp rate hike of 75 basis points in the next meeting, but warned that it is not ready yet to fully normalize monetary policy. Despite acknowledging the decline in underlying inflation and mentioning -- for the first time ever -- its dual mandate, we believe that the overall tone of the statement was somewhat hawkish.”--Adriana Dupita, Latin America economistClick here for the full reportReal Has Scope to Gain After BCB’s Hiking Signal: Inside Brazil“They are continuing the hawkish tilt,” said Sacha Tihanyi, head of emerging market strategy at TD Securities in Toronto. “Hike aggressively sooner, and then create some breathing space for the real.”The central bank also reinforced that a “partial normalization of the policy rate remains appropriate to keep some degree of monetary stimulus during the economic recovery.”That suggests they don’t see the key rate climbing in this cycle to a neutral level that’s commonly pegged around 5.5%-6.5%.“However, the Committee emphasizes that there is no commitment with this plan, and that future steps of monetary policy could be adjusted to assure the achievement of the inflation target,” officials wrote in the statement.The swap rates curve fell 4 to 8 basis points, flattening after a low volatility open. Traders held onto their bets that the central bank will raise rates by another 275 basis points by the end of the year, which would take the benchmark to 6.25%. BNP Paribas on Thursday revised its forecast for the Selic to 6.5% from 5% saying rising inflation will lead officials to raise rates by more than expected.Nearing 8%For the first time, policy makers mentioned their secondary mandate of fostering full employment, introduced in the same law that gave the bank its long-sought formal autonomy earlier this year. Yet they offered a positive outlook, saying recent economic indicators have been better than expected despite the pandemic, and predicting uncertainties over growth to gradually return to normal.Last month, President Jair Bolsonaro’s administration started paying out another round of monthly stipends at a total cost of 44 billion reais ($8.2 billion). Lawmakers have recently indicated they will seek an extension of that aid if the government does not accelerate plans for a new social program as the coronavirus continues to spread through the country.Read More: Brazil’s Budget Foreshadows Another Year of Massive SpendingConsumer prices rose 6.17% in the year through mid-April, and many economists see that reading approaching 8% in May. The central bank targets annual inflation at 3.75% this year, with a tolerance range of plus or minus 1.5 percentage points.In their statement, policy makers wrote various measures of underlying inflation are already at the top of the range compatible with hitting their target. Complicating matters, commodity prices continue to increase, and higher energy costs are pressuring prices in the short-term.“The central bank is signaling it plans to get to a 5% Selic in 75-basis point hikes, though it leaves the space to change its mind,” said David Beker, chief Brazil economist at Bank of America Corp.(Updates asset performance in second and 10th paragraphs, adds analyst comment 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.
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
In an interview with Fortune, Alba talked about taking her “fourth baby” (a.k.a. her company) public.
You could be entitled to additional money, based on your 2020 income tax return.
Vlad Tenev, CEO of Robinhood Markets, speaking at a “fireside chat” on Thursday, attempts to dispel any lingering speculation that the brokerage may be a so-called dogecoin whale, maintaining a massive stockpile of the crypto for its own benefit.
The (ARKK) ETF (ticker: ARKK) delivered a 153% return in 2020. The ETF, which is actively managed by ARK Invest CEO and her team, is down 27% over the last three months, including an 13% decline in the past week alone.
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Home buyers continue to pour into the real-estate market, encouraged by the favorable financing they can score.
It pays to be in the stuffed crust pizza game if you are Papa John's.
More returns need additional review due to things like the recovery rebate credit.
Older workers were faced with an especially hard fallout from the pandemic.