(Bloomberg) -- Citigroup Inc. has sold loans secured by three of Ron Perelman’s Manhattan properties at a roughly 40% discount, according to people familiar with the matter.The loans, which were in default with a balance of $193 million, sold for $115 million, the people said, asking not to be named because the matter is private.Perelman was once one of the world’s richest people with a fortune worth $19 billion. But in recent years his empire has faced daunting financial challenges, including at his cosmetics giant Revlon Inc.The debt sold by Citi is backed by three adjacent properties on East 62nd Street and includes the offices of Perelman’s investment firm, his duplex residence and the restaurant Fleming.The loans mature in August 2023. The buyer was undisclosed.A Cushman & Wakefield team, led by Doug Harmon and Adam Spies, did the deal for Citigroup. Representatives for Perelman and MacAndrews & Forbes, Cushman & Wakefield and Citigroup declined to comment.MacAndrews & Forbes, Perelman’s investment company, said in July it would rework its holdings in response to the coronavirus pandemic. Perelman sold off a series of investments, including his stake in Humvee-maker AM General.In September, Perelman, 78, said he planned to “clean house, simplify and give others the chance to enjoy some of the beautiful things that I’ve acquired.”Read more: Ron Perelman Is Shopping Two NYC Townhouses for $75 MillionAmong the items on the market -- his Gulfstream 650, a 257-foot yacht and some of his properties. He also struck a deal with Sotheby’s to sell hundreds of millions of dollars of art works.Some of the proceeds from the art sales were slated to pay down loans from Citigroup. He also had loans from JPMorgan Chase & Co., Bank of America Corp. and UBS Group AG related to his artwork, filings show.Citigroup continues to do business with Revlon, despite an accidental $900 million wire it sent lenders last year. The infamous payment error in August caused Citi to step in as a Revlon creditor, and forced the bank to revise its results after it wrote down a portion of Revlon’s loan.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) -- The Australian dollar may climb to 85 U.S. cents within a year as commodity prices hold firm and the greenback retreats, according to the currency’s top forecaster.The Aussie is on track to recapture the 80 cents handle in the coming months, with the dollar expected to weaken as U.S. exceptionalism fades, said Ray Attrill at National Australia Bank Ltd., the most accurate Aussie forecaster in the first quarter in Bloomberg rankings.“This is a view heavily contingent on commodity prices remaining firm, risk sentiment holding up, and a related softening in the dollar,” Attrill said.The bets on the Aussie reflect confidence that the global economy is on the mend as commodities ranging from oil to iron ore push higher on signs of a recovery in demand. But not everyone shares that optimism, with asset managers extending short positions on the currency into a fourth week as at mid-April.The Aussie traded around 77 cents on Thursday and last reached the 85 mark in December 2014.The main risk to NAB’s call is if the renewed spike in virus cases “extends to a new infection wave in Europe, which runs ahead of rising vaccination rates and necessitates fresh large-scale economic lockdowns,” Attrill said.“Unless or until this risk eventuates, we continue to view any dips in AUD/USD back to the early April lows beneath 0.76 as buying opportunities,” he said.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.
Carmaker Stellantis said on Wednesday it would replace digital speedometers with more old-fashioned analogue ones in one of its Peugeot models, in a fallout from a global shortage of semiconductor chips that is roiling the auto industry. The change will only affect Peugeot 308 cars, among group brands that include Chrysler, Citroen and Jeep since France's PSA Group merged with Italian-American company Fiat-Chrysler this year to form Stellantis. "It's a nifty and agile way of getting around a real hurdle for car production, until the 'chips' crisis ends," a spokesman for Stellantis told Reuters.
No cameras will be allowed during the trial starting May 3 in Oakland, California, between "Fortnite" creator Epic and Apple, U.S. Judge Yvonne Gonzalez Rogers said during a pretrial conference on Wednesday. Epic last year implemented its own in-app payment system on iPhones to avoid Apple's fees, a violation of Apple's App Store rules.
(Bloomberg) -- Blackstone Group Inc. is doubling down on a post-Covid 19 economic recovery, investing heavily in businesses that will benefit from a world that’s gradually reopening.New York-based Blackstone invested $17.7 billion in the first three months of the year, buying hotels including Extended Stay America Inc., private-jet operator Signature Aviation Plc and U.K. travel company Bourne Leisure. Investors continued to bet solidly on Blackstone, which saw its assets under management swell to a record $648.8 billion, the company said Thursday in an earnings report.Even as credit markets recovered and the stock market kept soaring, travel- and entertainment-related assets were struggling as people continued social distancing and local restrictions limited capacity at hotels and other venues. Blackstone says the firm is now seeing signs across its portfolio of companies that people’s behavior is shifting: At the Cosmopolitan hotel of Las Vegas, money going into slot machines was at record levels. Forward bookings for travel in the U.K. were also at a high.“This should be good time for the real world,” Blackstone President Jonathan Gray said in an interview. “Businesses like telemedicine and e-commerce will continue to do well but the pendulum is swinging back with a bunch of us getting out there again. It feels to me like this economic dam is starting to break.”The firm continued adding to its war chest, which is now armed with $149 billion in perpetual capital or long-term money. Investments in mental-health business Ginger and real estate logistics assets of Singapore’s GLP Pte showed Blackstone’s ongoing bet on growth- and technology-focused companies.“We’re trying to be as thematic as possible in deploying capital,” Gray said Thursday in a separate interview with Bloomberg Television. “In an environment where the economy is being transformed by technology, how can you see the best neighborhoods, the areas that will benefit from what’s happening.”Blackstone shares rose 4.4% in early trading to $83.88 as of 9:02 a.m. in New York.Among earnings highlights:Funds posted gains across the firm’s segments last quarter, with private equity and tactical opportunities vehicles up more than 15%.Fee-earning assets rose 14% from a year earlier while perpetual capital increased 47%.Last quarter’s inflows were $31.6 billion. The credit and insurance sector took in the most cash, followed by real estate in the first quarter.(Updates with Gray comments in sixth paragraph, share price in seventh.)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) -- The Australian central bank’s bond-buying program is set to become more influential as 10-year high iron ore prices combined with a hiring spree narrow the budget deficit and reduce government debt financing needs.Iron ore was trading over $180 a ton this week, reflecting China’s massive demand as its economy leads the global recovery from Covid-19. The Australian government based its revenue projections on expectations prices would to fall to $55 a ton by the end of September. Unemployment was expected to average 7.25% over the fiscal year, yet in March it had already fallen to 5.6%.The fiscal shortfall for the 12 months ending June 30 could be half the A$198 billion ($153 billion) deficit forecast in December, due to the better-than-expected revenue receipts and less expenditure on welfare. Treasurer Josh Frydenberg is due to announce his fiscal 2022 blueprint on May 11, which will contain the latest estimates for the current year.The stronger position of Australia’s books means that the government won’t need to issue as many bonds to bridge the fiscal shortfall. That also aids the Reserve Bank of Australia as its A$200 billion program will see it hold a greater proportion of debt, making monetary policy more effective.“It’s more bang for your buck,” said Phil Odonaghoe, an economist at Deutsche Bank AG. “For every bond that the RBA is now buying, it’s more influential on the yield curve and the currency than it otherwise would be because you’re buying that fixed amount from a smaller supply of bonds in the market.”Odonaghoe last month -- before the latest leg up in iron ore prices and leg down in the jobless rate -- estimated the budget could narrow to as little as A$100 billion in the current fiscal year. The relentless rise in the iron ore price is also likely to see the resource-rich Western Australia state record a budget surplus, he said.James McIntyre, economist for Australia and New Zealand at Bloomberg Economics, reckons the prevailing prices could add an additional A$40 billion to government revenue, accelerating the pace of fiscal consolidation.“A stronger than expected labor market recovery, coupled with a boost to profits from surging commodity prices, could see a major reduction in expected issuance, potentially amplifying the effectiveness of the RBA’s bond purchases,” he said.Stimulus DebateThe increased potency of monetary policy comes as debate emerges on whether the RBA will roll over its yield curve control on the three-year note to November 2024 from the current April 2024. Similarly, whether it will announce another round of quantitative easing once its second A$100 billion tranche ends in October.These questions were reignited after the central bank in Canada this week took the biggest step yet by a major economy to reduce emergency levels of monetary stimulus in response to a stronger than expected performance.“The Bank of Canada’s taper is partly a reflection of lower bond issuance in their next fiscal year -- they had their budget delivered Monday night -- and there’s going to be a similar dynamic in Australia,” said Su-Lin Ong, head of Australian economic and fixed-income strategy at Royal Bank of Canada.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.
WASHINGTON (Reuters) -Record-breaking Wall Street bank bond offerings in recent days are being driven by a combination of extraordinary market conditions and regulatory decisions that can be traced to the government’s pandemic relief efforts, said analysts.
(Bloomberg) -- Investors trying to predict the European Central Bank’s stimulus plans are about to run into deeper uncertainty even as the clouds around the pandemic start to lift.Talks on how to exit the ECB’s crisis measures are set to coincide later this year with a potential change to its inflation goal. That’ll leave market participants unsure what monetary support officials will provide and how much inflation they’ll tolerate as the economy recovers from the worst recession in living memory.The risk is that such unpredictability boosts volatility in borrowing costs -- a so-called taper tantrum -- that could undermine the recovery. It’ll put investors on guard for signs the Governing Council is thinking about that possibility when President Christine Lagarde speaks after Thursday’s policy meeting.She’ll almost certainly repeat her pledge to keep financing conditions favorable until the coronavirus crisis is over, but that doesn’t resolve the question of how she’ll unwind emergency bond-buying and manage the transition to more-standard tools.“In terms of how they handle the asset-purchase program, reinvestments, any future thoughts on tapering and actually hiking rates, you can only have very weak convictions,” said Richard Kelly, head of global strategy at Toronto Dominion Bank. “Not only is the economic outlook as uncertain as ever, but it isn’t clear how they want to change their objectives.”The ECB’s reappraisal of its inflation goal is part of a wide-ranging strategic review that was delayed by the pandemic and is set to conclude this summer, with the results probably announced in the fall.The current definition of price stability -- inflation below, but close to, 2% over the medium term -- is highly likely to change to a more symmetric target that allows some overshooting after years of falling short. That would have echoes of the U.S. Federal Reserve’s shift in strategy last year.Other topics such as the fight against climate change and taking inequality into greater account could also affect monetary policy.Meanwhile, the European Union is overcoming a sluggish start to vaccinations and intends to have 70% of the adult population inoculated by the end of the summer. With consumers holding hundreds of billions of euros in savings and the EU’s joint recovery fund due to kick in, the stage is set for a rapid economic rebound.Follow the pace of inoculations with our Covid-19 Vaccine TrackerThat’s driving the belief among investors that bond yields will march higher by year-end -- even turn positive, in the case of German debt. It’s also making some ECB policy makers reluctant to extend their 1.85 trillion-euro ($2.2 trillion) pandemic bond-buying program beyond March 2022.Belgian central-bank chief Pierre Wunsch said this month he hopes the ECB can begin exit talks “within a reasonable time frame,” and his Dutch colleague Klaas Knot suggested tapering purchases from the third quarter.France’s Francois Villeroy de Galhau has proposed a transition from pandemic bond-buying to an “adapted” version of an older purchase program, while maintaining negative interest rates, long-term bank loans and explicit guidance on its inflation tolerance.What Bloomberg Economics Says...“A full assessment of the pace of asset purchases will not happen until June, but the tone of this week’s press conference may offer some hints on the debate to come.”-David Powell. To read the full report click hereIf the pandemic program isn’t extended, discussions about when and how to exit it will likely happen alongside the conclusion of the review.“They have two major things to discuss in their September, October and December meetings: the review, including the toolbox, and the pandemic emergency purchase program’s future,” said Piet Christiansen, chief strategist at Danske Bank A/S. “It’ll be difficult to disentangle the two.”One possibility is that the review is turned into a policy tool itself. If a signal that pandemic purchases are to stop in March unsettles investors more than the ECB believes is warranted, a commitment to allow inflation to run above 2% for some time could be used as a counterweight.It’s not a debate for Thursday, and probably also not for June -- despite new economic projections being published then. Investors may be left hanging for a while.“It feels like we need to leave the lockdowns behind as a first step before the ECB can formulate any stronger views,” said Anatoli Annenkov, senior economist at Societe Generale SA. “It’s probably a matter of reaching a point where you feel reasonably clear about the pandemic-program outlook -- maybe by September or October -- and then try to use the strategic review as a dovish cushion.”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) -- U.S. stocks had their biggest slide in five weeks after President Joe Biden was said to propose almost doubling the capital-gain tax for the wealthy. The dollar advanced.The S&P 500 turned lower after Bloomberg News reported that for those earning $1 million or more, the new top rate, coupled with an existing surtax on investment income, means that federal tax rates for rich investors could be as high as 43.4%. Speculation arose that some traders may sell shares before any change is made to capture the lower rate.“Sticker shock over some of these tax figures will be hard to shake off for some investors,” Edward Moya, senior market analyst at Oanda, wrote in a note. “Some traders are looking for an excuse to lock in profits and they might choose to use this tax story as their catalyst.”Equities whipsawed throughout the session amid mixed economic data and renewed concern the pandemic was worsening. All major groups in the S&P 500 fell, led by material, energy and tech shares. AT&T Inc. jumped after beating earnings estimates. Intel Corp. -- the biggest chipmaker -- slid in afterhours trading as it reported a drop in data-center revenue and a steep slump in gross profit margin.Elsewhere, Bitcoin declined for the sixth time in seven days, extending losses after the higher capital gains proposal was revealed. Investors already face a capital-gains tax if they hold the cryptocurrency for more than a year.Here are some key events to watch this week:U.S. releases new home sales data Friday.These are some of the main moves in markets:StocksThe S&P 500 fell 0.9% at 4 p.m. New York time.The Stoxx Europe 600 Index advanced 0.7%.The MSCI All-Country World Index declined 0.2%.CurrenciesThe Bloomberg Dollar Spot Index gained 0.2%.The euro declined 0.2% to $1.2014.The Japanese yen appreciated 0.1% to 107.98 per dollar.BondsThe yield on 10-year Treasuries fell one basis point to 1.54%.Germany’s 10-year yield rose one basis point to -0.25%.Britain’s 10-year yield was unchanged at 0.74%.CommoditiesWest Texas Intermediate crude rose 0.5% to $61.66 a barrel.Gold fell 0.5% to $1,783.50 an ounce.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 look set to slip in Asia Friday following broad-based declines in U.S. benchmarks as investors mulled a proposal for higher taxes on the wealthy to help pay for President Joe Biden’s social plan.Futures pointed lower in Japan, Hong Kong and Australia. U.S. contracts edged up after the steepest decline in five weeks for the S&P 500 Index. Speculation arose that traders may sell shares preemptively as Bloomberg News reported the Biden administration is considering raising the tax on capital gains to 39.6% for those earning more than $1 million a year.Treasury yields dipped overnight and the dollar was steady in early Asia trade.“For the short term most likely we’ll continue to see volatility as investors will use the current environment to capture gains,” said Teresa Kong, portfolio manager at Matthews International Capital Management, LLC.Investors are weighing the implications of higher taxes against the potential growth benefits of a spending program focused on infrastructure. Markets are also whipsawing on worsening news about the spread of Covid-19 in parts of the world and a mixed batch of earnings reports.AT&T Inc. jumped Thursday after beating earnings estimates, while Intel Corp. -- the biggest chipmaker -- slid after hours as it reported a drop in data-center revenue and a slump in gross profit margin.Markets were little moved overnight by further assurance from European Central Bank President Christine Lagarde that the institution isn’t discussing any pullback in its emergency bond buying program even as economic data improve.Elsewhere, Bitcoin steadied after declining for the sixth time in seven days. Investors already face a capital-gains tax if they hold the cryptocurrency for more than a year. Oil gained on strengthening demand signals from key economies.The U.S. releases new home sales data later on Friday.These are some of the main moves in markets:StocksS&P 500 futures climbed 0.1% as of 8:25 a.m. in Tokyo. The S&P 500 fell 0.9% Thursday.Nikkei 225 futures were down 0.8%.Hang Seng futures slipped 0.1% earlier.S&P/ASX 200 futures slid 0.2%.CurrenciesThe Bloomberg Dollar Spot Index was steady.The euro traded little changed at $1.2016.The Japanese yen was flat at 107.96 per dollar.BondsThe yield on 10-year Treasuries fell about two basis points to 1.54%.CommoditiesWest Texas Intermediate rose 0.7% to $61.87 a barrel.Gold was little changed at $1,784 an ounce.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 cost of living rose to 0.7% in March, from 0.4% in February, as fuel, transport and clothes prices increased.
Stocks were only moderately lower until a report that President Joe Biden was considering raising capital-gains taxes. The three major U.S. stock indexes ended materially lower.
(Bloomberg) -- President Joe Biden will propose almost doubling the capital gains tax rate for wealthy individuals to 39.6% to help pay for a raft of social spending that addresses long-standing inequality, according to people familiar with the proposal.For those earning $1 million or more, the new top rate, coupled with an existing surtax on investment income, means that federal tax rates for wealthy investors could be as high as 43.4%. The new marginal 39.6% rate would be an increase from the current base rate of 20%, the people said on the condition of anonymity because the plan is not yet public.A 3.8% tax on investment income that funds Obamacare would be kept in place, pushing the tax rate on returns on financial assets higher than rates on some wage and salary income, they said.QuickTake: How Capital Gains Are Taxed and What Biden Might DoStocks slid the most in more than a month on the news, with the S&P 500 Index down 0.9% at the close. Ten-year Treasury yields fell to 1.54% from an intraday high of 1.59% before Bloomberg’s report.The proposal could reverse a long-standing provision of the tax code that taxes returns on investment lower than on labor. Biden campaigned on equalizing the capital gains and income tax rates for wealthy individuals, saying it’s unfair that many of them pay lower rates than middle-class workers.White House Press Secretary Jen Psaki, asked about the capital-gains plan at a press briefing Thursday, said, “we’re still finalizing what the pay-fors look like.” Biden is expected to release the proposal next week as part of the tax increases to fund social spending in the forthcoming “American Families Plan.”Other measures that the administration has discussed in recent weeks include enhancing the estate tax for the wealthy. Biden has warned that those earning over $400,000 can expect to pay more in taxes. The White House has already rolled out plans for corporate tax hikes, which go to fund the $2.25 trillion infrastructure-focused “American Jobs Plan.”Republicans have insisted on retaining the 2017 tax cuts implemented by former President Donald Trump, and argued that the current capital-gains framework encourages saving and promotes future economic growth.“It’s going to cut down on investment and cause unemployment,” Chuck Grassley of Iowa, a top Republican on the Senate Finance Committee and former chair of that panel, said of the Biden capital-gains plan. He lauded the result of the 2017 tax cuts, and said, “If it ain’t broke, don’t fix it.”GOP lawmakers on Thursday called for repurposing previously appropriated, unused pandemic-relief funds to help pay for their counteroffer infrastructure plan. The group underlined opposition to tax hikes, other than a potential revamp of the levies that go toward highway funding in a way that would cover electric vehicles.Earlier: GOP Counters Biden With $568 Billion Infrastructure PlanBiden will detail the American Families Plan in a joint address to Congress on April 28. It is set to include a wave of new spending on children and education, including a temporary extension of an expanded child tax credit that would give parents up to $300 a month for young children or $250 for those six and older.Biden’s proposal to equalize the tax rates for wage and capital gains income for high earners would greatly curb the favorable tax treatment on so-called carried interest, which is the cut of profits on investments taken by private equity and hedge fund managers.The plan would effectively end carried interest benefits for fund managers making more than $1 million, because they wouldn’t be able to pay lower capital gains rates on their earnings. Those earning less than $1 million may be able to still claim the tax break, unless Biden repeals the tax provision entirely.The capital gains increase would raise $370 billion over a decade, according to an estimate from the Urban-Brookings Tax Policy Center based on Biden’s campaign platform.For $1 million earners in high-tax states, rates on capital gains could be above 50%. For New Yorkers, the combined state and federal capital gains rate could be as high as 52.22%. For Californians, it could be 56.7%.Democrats have said current capital gains rates largely help top earners who get their income through investments rather than in the form of wages, resulting in lower tax rates for wealthy people than those they employ.Capital gains taxes are paid when an asset is sold, and are applied to the amount of appreciation on the asset from when it was bought to when it is sold.Congressional Democrats have separately proposed a series of changes to capital-gains taxation, including imposing the levies annually instead of when they are sold.“There ought to be equal treatment for wages and wealth,” Senate Finance Committee Chairman Ron Wyden, an Oregon Democrat who’s the chamber’s top tax-writer, told reporters in a phone briefing Thursday. “On the Finance Committee we will be ready to raise whatever sums the Senate Democratic caucus thinks are necessary.”(Updates with market close in fourth paragraph, carried interest background in 12th 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.
President Joe Biden will propose nearly doubling the capital gains tax rate for wealthy Americans to 39.6%, Bloomberg News reported Thursday. Combined with an existing surtax on investment income, Bloomberg said, that means federal tax rates for investors could be as high as 43.4%. Bloomberg cited people familiar with the proposal. The president is expected to release the proposal next week as part of the tax increases to fund social spending in the forthcoming "American Families Plan," Bloomberg said. U.S. stocks turned lower on the news.
The digital asset manager added large numbers of altcoins to its holdings including horizen and livepeer.
‘It seems this person is entitled to nothing, but as he was a co-signer of the loan, my friend is in a tough spot.’
For such a long time, I would scan my portfolio for something to get rid of -- this is something I do regularly in good times and in bad. I never like to hang on to stocks that don't perform for very long.
Dimon says a 'booming economy will justify today's prices.'
It seems that all year I’ve been warning about valuations being out of whack with reality, especially in small-cap tech, which includes most SPACs. SPACs are being slammed as former “diamond hands” turn into weak-handed sellers who are (rightly, in most cases) trying to stop losses that are piling up in their portfolios. Speaking of SPACs, the markets are still suffering from SPAChaustion and a Coinbase Overhype Top, as I’ve also been saying for a few weeks now.
The IRS is sending out "plus-up" payments — see if you can expect one.