Merchant Hydrogen Market Outlook 2020-2025: Industrial Gas and Energy Markets

Bloomberg
Watch U.S. Inflation for Hidden Price Momentum: Eco Week Ahead
(Bloomberg) -- A flurry of U.S. economic reports this week may signal the underlying strength of growth and inflation pressures as the country’s thaw from the coronavirus crisis begins to spread.One of the most-watched reports will be the consumer price index, with March data likely to show a heady acceleration from last year’s pandemic conditions. Economists may zero in on the monthly change to gauge momentum however, with a 0.5% gain forecast.Investors are watching such figures to determine the odds of elevated price pressures becoming self-sustaining, amid possible supply-chain constraints, massive fiscal and monetary stimulus and pent-up consumer demand.The March retail sales report will likely bear out that demand theme, which has prompted economists to raise growth forecasts for this year. Their median estimate calls for a 5.5% increase in purchases after a winter weather-depressed February.Meantime, industrial production at the nation’s factories, mines and utilities is projected to rebound strongly, led by robust manufacturing. Factory production is forecast to rise 4%. While lean inventories and solid demand are bolstering order books at manufacturers, materials shortages, elevated input prices and shipping delays are complicating production efforts.At week’s end, the government will issue its housing starts report for March, which may have rebounded from February when winter storms delayed construction efforts. While home sales have shown signs of leveling off, builder backlogs remain hefty.What Bloomberg Economics Says:“Narrow pockets of elevated demand and localized supply-chain disruptions will create price spikes in a limited subset of categories. However, the more dominant factor containing inflation will come from excess labor slack and the resulting absence of rising wage pressures.”--Carl Riccadonna, Yelena Shulyatyeva, Andrew Husby and Eliza Winger. For full analysis, click hereElsewhere, a slew of Federal Reserve and European Central Bank officials are scheduled to speak before the two central banks’ quiet periods set in and the World Trade Organization holds a meeting with vaccine makers on export restrictions. Turkey watchers will be keeping a close eye on the interest-rate decision on Thursday.Click here for what happened last week and below is our wrap of what is coming up in the global economy.U.S. and CanadaInvestors will be watching a phalanx of Fed speakers this week before they enter a pre-meeting quiet period. Chair Jerome Powell addresses the Economic Club of Washington on Wednesday, and at least seven of his colleagues are scheduled to make appearances. The Fed’s Beige Book -- a collection of economic and business activity assessments within each of the central bank’s 12 regions -- is also due.In Canada, the quarterly business sentiment survey will be the central bank’s last data point before its April 21 decision.For more, read Bloomberg Economics’ full Week Ahead for the U.S.AsiaChina’s trade data on Tuesday is set to show another surge in both exports and imports in March from a year earlier, when Covid-restrictions were still curbing commerce. On Friday, industrial production, retail sales and investment data for the same month and GDP figures for the first quarter are all projected to race higher for the same reason.Central banks in New Zealand, Singapore and South Korea all have meetings, with no changes to their main policy settings expected, according to early survey responses from economists.For more, read Bloomberg Economics’ full Week Ahead for AsiaEurope, Middle East, AfricaData in coming days will start hinting at how the region fared in the first quarter at a time of renewed lockdowns and varying efforts at vaccinations.In the U.K., gross domestic product probably rose in February, but by too small a quantum to cancel out the 2.9% drop recorded in the previous month. Meanwhile euro-zone industrial production is likely to show a decline in February, with data from national statistics offices so far pointing to a pullback in the sector.The coming week offers ECB policy makers a final chance to air views before a quiet period begins preceding their April 22 meeting. President Christine Lagarde will be among a line-up of speakers scheduled for the coming days.Elsewhere in Europe, Serbia’s central bank will probably keep its interest rate unchanged, while monetary officials in Ukraine may continue tightening policy as inflation surges and a deal with the International Monetary Fund remains far away.In Turkey, the new central bank governor, Sahap Kavcioglu, is expected to hold the benchmark rate at 19% at his first monetary-policy meeting on Thursday. He’s been fighting to win over investors with a commitment to tight monetary policy after his predecessor was fired following a 200 basis-point increase last month.Uganda may hold its key rate for a fifth straight meeting on Wednesday and the same day, the Bank of Namibia will probably leave its rate unchanged too after its neighbor South Africa held in March. Namibia’s benchmark is 25 basis points higher than South Africa’s, helping to protect the country’s reserves and currency peg.For more, read Bloomberg Economics’ full Week Ahead for EMEALatin AmericaThe faltering nature of recoveries in Colombia and Brazil should be laid bare by their February retail sales reports as the former again imposed restrictions to contain the virus while the latter’s national health crisis has deepened.Jobs reports in Mexico, Brazil and Peru can also be expected to underscore the damage inflicted by the pandemic. Millions of workers in the region’s two largest economies remain sidelined while the labor market in Peru’s capital, the megacity of Lima, is off last year’s lows but still far removed from pre-pandemic form.Argentina posts its March consumer prices report Thursday. Annual inflation is over 40% and some forecasts see 50% before year-end as midterm elections and stalled talks with the IMF on a $45 billion loan restructuring may serve to discourage fiscal restraint.A number of the region’s smaller economies join Brazil and Peru in reporting trade figures in the coming week. Taken as a whole, Latin America’s bigger economies saw a surge in trade surpluses in 2020 as the pandemic’s demand shock curbed imports.For more, read Bloomberg Economics’ full Week Ahead for Latin AmericaFor 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.
9h ago
CoinDesk
SEC Begins Review of WisdomTree Bitcoin ETF as Active Applications Hit 8
Krpytoin also filed for a bitcoin ETF on Friday.
1d ago
FX Empire
Oil Price Fundamental Daily Forecast – Prices Being Capped by Rising Global Supply Concerns
WTI prices are once again testing a retracement zone at $59.58 to $57.64. This zone has provided support for about three weeks.
2d ago
Bloomberg
BlackRock Scores Biggest-Ever ETF Launch With New ESG Fund
(Bloomberg) -- An exchange-traded fund investing in U.S. companies that BlackRock Inc. considers most likely to prosper in the transition to a low-carbon world lured the most cash on record in its first day of trading.Investors poured about $1.25 billion into the BlackRock U.S. Carbon Transition Readiness ETF (ticker LCTU) on Thursday, making it the biggest launch in the ETF industry’s three-decade history, according to data compiled by Bloomberg.First-day flows on this scale are typically powered by large institutional investors lined up by the issuer before a fund launches.The BlackRock ETF will focus investments in shares of Russell 1000 companies that are deemed to be best positioned for the energy transition, taking into account issues such as clean technology and waste and water management.To have any chance of meeting the Paris climate goals of limiting global warming to below 2 degrees Celsius, companies in all industries will need to lower their carbon footprint. This great rewiring of the global economy will affect companies’ long-term profitability and BlackRock “doesn’t see itself as a passive observer,” Chief Executive Officer Larry Fink said earlier this year in a letter to clients.BlackRock said in January it manages $50 billion “in solutions that support the transition to a low-carbon economy,” including green bonds and a renewable power infrastructure business that invests in the wind and solar power markets. The world’s largest asset manager also pledged to expand dedicated low-carbon, transition-readiness strategies to offer investors exposure to companies that are most effectively adapting to transition risks.LCTU’s eye-catching debut comes amid a broad boom for ETFs focused on investments that meet environmental, social and governance standards. They attracted a record $31 billion in 2020, almost four times the prior year. About $6.3 billion was added in January, also the most ever, as investors bet the Democrats clean sweep of the U.S. government would usher in a swath of green policies.That’s all taken ESG ETF assets to a record $74.8 billion, up from less than $10 billion two years ago. The largest ETF in the space is also from BlackRock. The iShares ESG Aware MSCI USA ETF, with $16.3 billion of assets, is trading at an all-time high after returning more than 50% in the past 12 months.The Financial Times earlier reported the introduction of the BlackRock fund.(Updates with extra context.)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.
2d ago
Bloomberg
Stock Bulls Bet It All on Earnings Guesses With Troubled Record
(Bloomberg) -- You’re never sure what earnings seasons will bring. Hence their volatility. But one thing is certain about the first-quarter results about to be disclosed. They couldn’t matter less to the market’s current valuations.And while it’s a Wall Street cliche that “the guidance is what matters,” that view is being taken to absurd extents right now, when the S&P 500 is pricing in profits that virtually cannot materialize in two years. That’s a level of faith in the future that history gives little basis for justifying.Here’s the math. Based on existing analyst forecasts for earnings in all of 2021, the S&P 500 trades at almost 24 times estimates, among its highest valuations ever. To bring the multiple down to its long-term average of 16 times annual profits, companies in the gauge will have to make about 15% more than the equity researchers currently expect them to earn -- in 2023.Is that possible? Yes. Using a compounded projected growth rate starting in 2019, it’s within the roughly 6% expansion in income S&P 500 companies have historically generated over time. But is there strong reason to suspect anyone has a convincing view on what will happen over any specific two-year period? That’s more murky. Given how much is riding on that view, investors would be wise to consider what the market is currently demanding.“What we’re talking about in mathematical terms is really a psychological phenomenon,” said Lawrence Creatura, a fund manager at PRSPCTV Capital LLC. “It’s mathematically observable that there’s more downside in the market than there was in March of 2020, although ironically it feels exactly the opposite.”Indeed, investors are pouring a record amount of fresh money into equities this year amid hopes that vaccines and policy support will bring the economy to normalcy. Their willingness to pay up for earnings has driven the S&P 500’s P/E ratio almost 20% above its peak during the last bull market. Not that valuations are a good timing tool, but with so much optimism priced in, the risk of these estimates not coming true is more dramatic.Read more: An Alternative to ‘No Alternative’: How Bonds Snuck Up on StocksHypothetically speaking, should earnings fail to catch up and the market’s multiple return “back to normal” -- the long-term average of 16, the S&P 500 is at danger of losing a third of its value.“Earnings are completely critical and that’s really what you’re going to need to focus on right now,” said Jeff Mills, chief investment officer for Bryn Mawr Trust. “Unless you continue to see fundamentals deliver, you could see a dramatic repricing.”Complicating matters is the Covid-19 pandemic and massive fiscal stimulus upending models on Wall Street. Never mind 2023: even getting a handle on this year’s results is proving difficult. Going by analysts who study individual companies, S&P 500 profits will increase 26% to $174 a share this year. Ask top-down strategists who give forecasts by tracking macro indicators such as manufacturing, and a wide range exists: $152 to $202 a share.Even getting to the high end of the strategist range would leave stocks trading at more than 20 times profits.The huge gap is partly a result from an environment where, one year into the pandemic, no one can predict with confidence the lasting power of stay-at-home demand, or the boost to consumer spending from stimulus checks. The extent of profit hit from supply chain disruptions and rising commodity costs are also big wild cards.Banks including JPMorgan Chase & Co. and Citigroup Inc. begin reporting next week. First-quarter profits from S&P 500 firms are projected to rise 24%, the fastest since 2018, analyst estimates compiled by Bloomberg Intelligence show. Leading the pack are automakers, retailers and banks whose earnings probably doubled from a year ago.Analysts’ record of estimating profits has, unsurprisingly, suffered during the pandemic -- although the fact that they proved too conservative is grist for stock bulls. They under-estimated corporate America’s earnings power by an unprecedented 20% on average in final three quarters of last year. During the five years before 2020, they only missed by 3%.“Analysts have been extraordinarily pessimistic about the earnings picture, and companies have been remarkably resilient in terms of being able to shore up expenses and figure out new revenue streams,” Jack Manley, global market strategist at JPMorgan Asset Management, said in an interview on Bloomberg Television. “I do not anticipate this story deviating much at least in the quarters ahead.”That optimism echoes in the market. While corporate profits over 12 months have yet to make a full recovery, the S&P 500 is already 20% ahead of its pre-pandemic peak. As confident as investors may be, the truth is that when you’re looking ahead that far, nothing is really knowable.Put simply, the further into the future the forecast, the less accurate it is. Since 1990, the one-year profit projection for S&P 500 earnings among analysts tracked by Bloomberg missed actual results by an average 14%. Two years out, the deviation doubled.Adding to the challenge is the current fiscal and monetary policy. While all the stimulus underpins the recovery, it makes it harder to identify a discernible economic trend after the initial snapback, according to Michael O’Rourke, chief market strategist at JonesTrading.“Investors will not be able to quantify which aspects of growth, earnings and the economy are organic, and which aspects are the result of a simulated world where monetary and fiscal excess artificially create a facade of health and wealth,” he said. “There won’t be real clarity for a couple of years.”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.
9h ago
Bloomberg
Stocks Notch Longest Weekly Rally Since October: Markets Wrap
(Bloomberg) -- Stocks climbed to another record as investors shrugged off concern over inflation and focused on prospects for an economic rebound. Treasuries fell, while the dollar advanced.The S&P 500 closed above 4,100 and posted its third-straight weekly rally -- the longest winning streak since October. Volume on U.S. exchanges hit a new low for this year. Honeywell International Inc. led gains in the Dow Jones Industrial Average on an analyst upgrade. Boeing Co. retreated after grounding dozens of 737 Max jets to repair an electrical flaw that emerged in recently delivered models.Equities extended a surge from their March 2020 lows to about 85% as Federal Reserve officials reassured markets that policy will remain supportive. Vice Chairman Richard Clarida said the Fed is looking for evidence on whether it’s reaching the goals on price stability and employment before adjusting rates. Still, a report showing the rise in producer prices added fuel to the debate about the path of inflation.“It’s noisy data,” said Giorgio Caputo, senior fund manager at J O Hambro Capital Management. “It’s important to remember the positive elements of what is actually happening -- prices are going up because we’re getting demand back together.”These are some of the main moves in markets:StocksThe S&P 500 climbed 0.8% at 4 p.m. New York time.The Stoxx Europe 600 Index gained 0.1%.The MSCI Asia Pacific Index decreased 0.5%.CurrenciesThe Bloomberg Dollar Spot Index gained 0.1%.The euro fell 0.1% to $1.1904.The Japanese yen weakened 0.4% to 109.65 per dollar.BondsThe yield on two-year Treasuries rose one basis point to 0.16%.The yield on 10-year Treasuries rose four basis points to 1.66%.The yield on 30-year Treasuries rose two basis points to 2.33%.CommoditiesWest Texas Intermediate crude fell 0.5% to $59.32 a barrel.Gold slid 0.7% to $1,742.83 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.
1d ago
Yahoo Finance
Nike, fresh from 'Satan shoes' win, eyes 'much weaker' trademark battle vs the Post Office
Nike's slam dunk against MSCHF may not turn out as favorably against the U.S. Postal Service.
2d ago
MoneyWise
Fourth stimulus check: Lawmakers press Biden to say yes to more payments
The president is being urged to roll more direct aid money into his infrastructure bill.
17h ago
Investing.com
U.S. Futures Mixed; Tech Stocks Underperform After Gains
Elsewhere, gold futures fell 0.6% to $1,747.35/oz, while EUR/USD traded 0.2% lower at 1.1891.
2d ago
Yahoo Finance
‘This is the single worst time to be a passive investor’: veteran investor
Stock picking is ripe for a shift away from passive investing, which could suffer a decade of low or nonexistent returns, says Bill Smead.
17h ago
Investopedia
Must-Know Rules for Converting a 401(k) to a Roth IRA
You should be able to roll over your 401(k) plan account into a Roth IRA, but be sure you first understand the tax consequences of doing so.
1d ago
TipRanks
JPMorgan Says These 2 Stocks Could Surge Over 80%
After a volatile first quarter, Q2 has kicked off in style, and the major indexes sit at – or hover near – all-time highs. The government bond market has also been steadying as yields have pulled back after rising higher earlier in the year, soothing investor fears that inflation could get out of hand. Moreover, the economic recovery seems to be gathering steam at a faster pace than anticipated. “We had been expecting the data to improve about this time, and early signals are that the recovery is absolutely on track,” said Hugh Gimber, J.P. Morgan’s global market strategist. “This is the period where the forecast of a strong recovery in growth is starting to look more like the fact of a strong recovery in growth.” Against this backdrop, the analysts at J.P. Morgan have pinpointed 2 names which they believe are set for strong growth in the year ahead; both are expected to handsomely reward investors with at least 80% of gains over the coming months. We ran them through TipRanks database to see what other Wall Street's analysts have to say about them. Tencent Music Entertainment (TME) We’ll start in China, where Tencent Music Entertainment is the offspring of China’s giant online venture company, Tencent, and Spotify, the Swedish streaming company that makes music and playlists easy. Tencent Music has seen consistently strong sales and earnings for the past year, with the top line growing year-over-year in each quarter of 2020. The Q4 report showed $1.26 billion in the top line, the highest in the last two years, along with 12 cents per share in earnings, up 33% year-over-year. Strong streaming revenue, which showed 29% growth, helped drive the results. And, Tencent Music, through its variety of apps, is the top music streaming service in the Chinese online market – as shown by the 40.4% yoy increase in paid subscribers during Q4. In its quarterly results, the company reported 4.3 million net new users in Q4, to reach 56 million active premium accounts across its apps. That said, the stock has pulled back sharply recently, as like many other high-flying growth names, worries regarding an overheated valuation have come to the fore. But pullbacks often spell opportunity, and covering the stock for JPM, Alex Yao notes the strong subscription growth, as well as the potential in the company’s other businesses, online ads and long-form audio, for monetization. “We believe TME is entering a healthy development cycle with successive growth engines: 1) music subscription remains the core revenue driver with consistent paying ratio improvement, 2) ads revenue ramps up quickly, and 3) active investments in long-form audio initiative, which could become a new growth driver in 2022 and afterwards," Yao noted. To this end, Yao puts a $36 price target on TME, suggesting a one-year upside of 84%, to back his Overweight (i.e. Buy) rating on the stock. (To watch Yao’s track record, click here) Overall, TME has a thumbs up from Wall Street. Of the 11 reviews on record, 7 are to Buy, 3 are to Hold, and 1 says Sell, making the analyst consensus a Moderate Buy. The shares are priced at $19.50, and their $30.19 average price target implies an upside of 55% for the months ahead. (See TME stock analysis on TipRanks) Y-mAbs Therapeutics (YMAB) The next JPM pick we’re looking at is Y-mAbs, a late-stage clinical biopharma company with a focus on pediatric oncology. The company is working on the development and commercialization of new antibody-based cancer therapeutics. Y-mAbs has one medication – Danyelza – approved for use to treat neuroblastoma in children age 1 and over, and a ‘broad and advanced’ pipeline of drug candidates in various stages of the clinical process, as well as five additional products in pre-clinical research stages. Having an approved drug is a ‘holy grail’ for clinical biopharmaceutical companies, and in 4Q20 Y-mAbs saw considerable income from Danyelza. The company announced at the end of December that it had agreed to sell the Priority Review Voucher for the drug to United Therapeutics for $105 million. Y-mAbs will retain the rights to 60% of the net proceeds from the sale, under an agreement with Memorial Sloan Kettering. Also in December, the company announced a license agreement with SciClone. The partnership gives Y-mAbs and Danyelza an opening for treating pediatric patients in China. The agreement includes Mainland China, Taiwan, Hong Kong, and Macau, and is worth up to $120 million for Y-mAbs. The company has entered other agreements making Danyelza available in Eastern Europe and Russia. Danyelza is Y-mAbs flagship product, but the company also has omburtamab in advanced stages of the pipeline. This drug candidate saw a setback in October last year, when the FDA refused to file the company's Biologics License Application, proposed for the treatment of pediatric patients with CNS/leptomeningeal metastasis. Y-mAbs has been in steady communication with the FDA since then, with a new target date for the BLA at the end of 2Q21 or early in 3Q21. These two drugs – one approved and one not yet – form the basis of the JPM outlook on this stock. Analyst Tessa Romero writes, “Our thesis revolves around the de-risked nature of the pediatric oncology pipeline. Our recent KOL feedback is enthusiastic about use of lead asset Danyelza in patients with high-risk neuroblastoma (NB). For second lead asset omburtamab in NB metastatic to the central nervous system (CNS/LM from NB), while the ‘Refuse to File’ last year and subsequent regulatory delays were certainly disappointing, we still see a high probability of approval for the product in the 2Q/3Q22 timeframe…” Looking ahead, Romero sees an upbeat outlook for the company: “Coupling our anticipation of a healthy launch for Danyelza, with regulatory/clinical momentum expected in the near- to mid-term, we see shares poised to rebound and see an attractive buying opportunity at current levels.” The analyst puts a $52 price target on YMAB shares, implying an upside of 86% for the year ahead, and supporting an Overweight (i.e. Buy) rating. (To watch Romero’s track record, click here) Overall, the Wall Street reviews break down 3 to 1 in favor of Buys versus Holds on Y-mAbs, giving the stock a Strong Buy consensus rating. The shares have an average price target of $61.25, suggestive of a 121% upside potential this year. (See YMAB stock analysis on TipRanks) To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights. Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
2d ago
MarketWatch
Whether you’re retiring in 30 years or 5 years, you still need to do this one thing religiously
Investing is a crucial part of accumulating enough money in retirement — and the best results come with proper asset allocation. Retirement tip of the week: Check the asset allocation of your retirement portfolios, and if you’ve done it recently, make it a regularly scheduled task once a year. “The time to review your asset allocation and overall retirement investment strategy should be a proactive process throughout the year,” said Jon Ulin, chief executive officer of Ulin & Co. Wealth Management.
15h ago
USA TODAY
Stimulus check update: When will ‘plus-up’ payments arrive? Answers to your COVID relief questions
Americans have tons of questions about their stimulus checks and 2020 taxes. Here’s what you need to know about 2021 COVID-relief payments and more.
8h ago
Bloomberg
Arm Battle With China CEO Escalates, Complicating SoftBank Sale
(Bloomberg) -- The battle for control of Arm Ltd.’s China business is escalating with new lawsuits aimed at keeping the unit’s controversial chief executive in power, further complicating SoftBank Group Corp.’s efforts to sell the business to Nvidia Corp.The dispute erupted almost a year ago in June after the board voted to oust Arm China Chief Executive Officer Allen Wu for conflicts of interest, but he refused to leave. Now the Chinese unit, which remains under Wu’s control, has filed lawsuits against three senior executives the board designated to replace him, according to people familiar with the matter. The previously unreported suits could take years to resolve, suggesting Wu may remain entrenched.Wu fired the three men -- including co-CEO Phil Tang -- but they were subsequently reinstated by the board. In the new lawsuits, Arm China is suing the trio, demanding they return company property, according to the people.Arm China declined to comment on any ongoing legal cases or possible settlement talks. It did say the three executives had caused “material damages” to the company and they had been terminated for legitimate reasons.Tang didn’t return requests for comment. Arm Ltd. declined to elaborate, saying it won’t comment on pending legal matters.The complex tussle has thrown into question the future of Arm, whose semiconductor technology is the world’s most widely used for smartphones and is increasingly deployed in computers. SoftBank founder Masayoshi Son agreed to sell the British chip designer to Nvidia for $40 billion last year, but the path for completing that transaction is growing increasingly difficult.The China dispute also raises questions about Beijing’s willingness to protect foreign investment in the world’s second-largest economy. Arm Ltd. sold a majority stake in the China unit to a consortium of investors, including Beijing-backed institutions. That has complicated the British firm’s efforts to manage Arm China and Wu, who has support from local authorities in Shenzhen.Both sides appear to be at a stalemate. Wu, a Chinese-born U.S. citizen, pulled back from signing settlement agreements worth tens of millions of dollars if he would leave the company, the people said, asking not to be identified talking about legal matters. At the same time, two minority shareholders in Arm China linked to Wu have filed lawsuits to overturn his June 4 dismissal, they said.SoftBank opened negotiations with him last year and had hoped to reach some sort of resolution, they said. Instead the court battles are deepening and the Japanese company has soured over the increasingly complicated dispute, the people said. SoftBank is now resigned to letting the legal proceedings take their course and there are no current negotiations with Wu, according to one of the people.“We are going through a leadership change in China; it’s taking time to resolve,” said Arm Ltd.’s Chief Executive Officer Simon Segars in an interview with Bloomberg Television recently. “It’s hard. But we are confident that’s going to get resolved.”SoftBank and Nvidia declined to comment on the dispute in China.Arm China said in a statement that Wu’s position “is compliant with legal registration and confirmed by China law and regulations.”Read more: Arm Takes Aim at Intel Chips in Biggest Tech Overhaul in DecadeThe standoff accords a relatively unknown executive outsized influence over one of the industry’s most important pieces of technology, in the world’s biggest internet and semiconductor market. Chinese companies need unfettered access to Arm’s products to push forward with the country’s attempts to make itself more independent in chip technology, an area where it’s largely reliant on imports. Beyond resolving the stalemate, Nvidia and SoftBank also need Beijing’s signoff to seal their deal, and it’s unclear whether Wu’s presence would complicate that.Wu’s hold on Arm China is partially due to local laws which make it difficult to change control of a company unless you’re physically in control of the company stamp and registration documents. He’s refused to give them up and has used company funds to pay for legal fees incurred in his attempt to fight off his dismissal, the people said.Arm China said payment of legal fees “is made in compliance with company policies as well as China laws and regulations.”His ultimate goals appear to be a large cash payoff and immunity from subsequent legal action, according to people who’ve spoken with him. Inside Arm China, which is responsible for selling licenses to its chip designs and fundamental technology in the country, Wu has told local staff he’s not going anywhere. He recently gave employees Chinese New Year cash presents in a red envelope with his surname on it.Arm China said the money came from Wu personally to show his appreciation to colleagues, a tradition at Chinese New Year in the country.Hearings in the case against the three executives are expected to take place in late May, one of the people said. Separately, two minority shareholders in Arm China have sued the Chinese entity in Shenzhen to nullify the board’s decision to oust Wu. These two cases are now being merged and hearings are slated for late April, the people said.Son told investors as recently as February that he expects to close the Arm sale and “I don’t have any Plan B.”Arm, for its part is trying to make sure that its technology remains pervasive in China despite U.S. sanctions intended to curb the supply of American technology to major companies like Huawei Technologies Co. While Arm is a U.K.-based company part of its operations are in the U.S. making its products subject to controls.The Chinese government has not stated its position on the Arm China leadership struggle, but the unit has several government-backed shareholders including sovereign wealth fund China Investment Corp. and the Silk Road Fund.In his interview with Bloomberg Television, Arm Ltd. CEO Segars said that the ten-month standoff hasn’t hurt Arm’s business in China. Lack of travel for face-to-face meetings during the pandemic has prolonged the process of changing leadership in China, he said.“When we announced the deal in September, we said it would take about 18 months,” he said. “We remain confident in that timeline.”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.
1d ago
MarketWatch
He began buying Tesla at just $7.50, and now he’s retiring at 39 years old with $12 million worth — he still refuses to sell a single share
While just about every financial planner out there continues to espouse the "diversify" mantra, Jason DeBolt, a former Google and current Amazon employee, has taken a decidedly different approach.
17h ago
MarketWatch
Alphabet CEO Pichai sells more stock as prices rally to a record
Alphabet Inc. Chief Executive Sundar Pichai sold another chunk of shares this week, valued at nearly $7 million, as the stock surged to record highs.
1d ago
TipRanks
XPeng to Produce Its Own Chips; Analyst Weighs In
The latest noises coming out from China suggest XPeng (XPEV) is keen to produce its own chips in-house. According to Chinese news outlet 36kr, using a small team of less than 10 engineers, the Chinese EV maker is developing its own autonomous driving chip. The production started a few months ago and is taking place in both the US and China. Xia Heng, XPeng’s Co-President and Chief Technology & Operation Advisor Benny Katibian, whose prior jobs include leading the tech dept at Qualcomm's ADAS team, are at the helm of the new project. “Industry sources indicate XPeng is actively recruiting chip engineers,” said Deutsche Bank’s Edison Yu, who believes this suggests “there are plans to grow this effort moving forward.” “In our view,” Yu further noted, “We do not expect any near-term changes as both XPILOT 3.5 and 4.0 will use Nvidia chips (Xavier and Orin), but believe similar to Tesla/NIO, XPeng wants to ultimately use a custom designed chip purpose built to train its neural net (to use in XPILOT 5.0) rather than a general purpose chip, in order to maximize performance/ efficiency and lower cost.” Yu thinks local rival Nio, is “likely” fast at work on a similar project after poaching Xiaomi's chip division manager. Looking at the wider picture, Yu believes it is all part of an effort by the industry/government to lower the dependence on foreign chips. Earlier this year, backed by BYD and Great Wall Motor, Horizon Robotics raised $900 million in a Series C round. The 5-year-old, local start-up was recently selected by SAIC (GM and VW’s main JV Chinese partner) to supply its ADAS/AD chipset. Horizon is targeting the shipment of 1 million chips this year and Yu believes it is a good example of the local industry’s chip manufacturing ambitions. To this end, Yu rates XPEV shares a Buy along with a $48 price target. The implication for investors? Upside of 39%. (To watch Yu’s track record, click here) XPEV stock has a resounding “yes” on Wall Street. 6 Buys and 1 Hold assigned in the last three months add up to a Strong Buy analyst consensus. At $49.50, the average price target implies upside potential of 43.5%. (See XPEV stock analysis on TipRanks) To find good ideas for EV stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights. Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
8h ago
CoinDesk
Bitcoin Price Shoots Past $60K, Ether Hits New All-Time High in Early Saturday Trading
The price action comes just ahead of a highly anticipated Nasdaq listing for leading U.S. crypto exchange Coinbase.
1d ago
MarketWatch
‘51% to go’: Reddit crowd rejoices at report that Melvin Capital rang up a 49% first-quarter loss
Melvin Capital is giving the Reddit crowd something to cheer about on a Friday, after the hedge fund rang up a 49% first-quarter loss, according to a report from Bloomberg News on Friday.
1d ago

S&P 500

Dow 30

Nasdaq

Russell 2000

Crude Oil

Gold

Silver

EUR/USD

10-Yr Bond

GBP/USD

USD/JPY

BTC-USD

CMC Crypto 200

FTSE 100

Nikkei 225

Merchant Hydrogen Market Outlook 2020-2025: Industrial Gas and Energy Markets - ResearchAndMarkets.com

Recommended Stories

Watch U.S. Inflation for Hidden Price Momentum: Eco Week Ahead

SEC Begins Review of WisdomTree Bitcoin ETF as Active Applications Hit 8

Oil Price Fundamental Daily Forecast – Prices Being Capped by Rising Global Supply Concerns

BlackRock Scores Biggest-Ever ETF Launch With New ESG Fund

Stock Bulls Bet It All on Earnings Guesses With Troubled Record

Stocks Notch Longest Weekly Rally Since October: Markets Wrap

Nike, fresh from 'Satan shoes' win, eyes 'much weaker' trademark battle vs the Post Office

Fourth stimulus check: Lawmakers press Biden to say yes to more payments

U.S. Futures Mixed; Tech Stocks Underperform After Gains

‘This is the single worst time to be a passive investor’: veteran investor

Must-Know Rules for Converting a 401(k) to a Roth IRA

JPMorgan Says These 2 Stocks Could Surge Over 80%

Whether you’re retiring in 30 years or 5 years, you still need to do this one thing religiously

Stimulus check update: When will ‘plus-up’ payments arrive? Answers to your COVID relief questions

Arm Battle With China CEO Escalates, Complicating SoftBank Sale

He began buying Tesla at just $7.50, and now he’s retiring at 39 years old with $12 million worth — he still refuses to sell a single share

Alphabet CEO Pichai sells more stock as prices rally to a record

XPeng to Produce Its Own Chips; Analyst Weighs In

Bitcoin Price Shoots Past $60K, Ether Hits New All-Time High in Early Saturday Trading

‘51% to go’: Reddit crowd rejoices at report that Melvin Capital rang up a 49% first-quarter loss