(Bloomberg) -- European equities were little changed as investors rotated into cyclicals and out of defensive shares, while some U.K. firms and sectors rose following the country’s budget.The Stoxx Europe 600 Index closed up less than 0.1%, as gains for carmakers and travel shares offset declines in utilities and health-care shares. The FTSE 100 rallied 0.9% after Britain’s spring budget. U.K. homebuilders climbed after the government confirmed support measures, while Diageo Plc advanced as a planned increase in alcohol duties was canceled in the announcement.Equities in Europe have had a bumpy start to 2021, with a vaccination-driven rally peaking in mid-February. Since then, spiking yields in U.S. treasuries and German bunds have damped investors’ appetite for stocks, particularly weighing on so-called bond-proxy haven sectors.“Markets are transitioning to a more robust and mature phase of the recovery trade,” according to Barclays Plc strategists led by Emmanuel Cau. They expect European stocks to continue to catch up with U.S. peers, because cheaper value shares and non-U.S. equities stand to benefit from rising growth and inflation expectations.Automotive stocks accounted for most of the day’s top performers, buoyed by overall cyclical strength, while UBS Group AG analyst upgrades additionally boosted Renault SA and Continental AG. British insurer Hiscox Ltd. trailed the pack, having scrapped its dividend amid worse-than-expected gross written premiums.You want more news on this market? Click here for a curated First Word channel of actionable news from Bloomberg and select sources. It can be customized to your preferences by clicking into Actions on the toolbar or hitting the HELP key for assistance.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.
Britain will modernise its listing rules to attract more high-growth company and so-called blank cheque flotations, Finance Minister Rishi Sunak said after a government-backed review said London was on the back foot after Brexit. The London Stock Exchange is facing tougher competition from NYSE and Nasdaq in New York, and from Euronext in Amsterdam since Britain fully left the European Union on Dec. 31.
The British pound rallied a bit on Wednesday to peak above the 1.40 level early but have pulled back just a bit as we calm down ahead of the jobs number.
(Bloomberg) -- Chancellor of the Exchequer Rishi Sunak unveiled his second U.K. budget as he tries to balance the need to prop up the economy while the coronavirus pandemic endures with efforts to begin reigning in the deficit.With the prospect of the economy fully reopening still months away -- Prime Minister Boris Johnson has set June 21 as the earliest that can happen -- here’s what the chancellor announced on Wednesday:More Covid AidSunak said his priority is to protect jobs through the pandemic, and promised to support people and businesses as lockdown measures are gradually lifted. He outlined 65 billion pounds ($90 billion) of new Covid support, bringing the total since the crisis began to 352 billion pounds. When capital spending announced at last year’s budget is included, the total fiscal stimulus rises to 407 billion pounds.He announced:An extension of the flagship furlough program, under which the state pays idled workers 80% of their usual wages, up to a maximum of 2,500 pounds a month. It was due to expire at the end of April but will be extended in full through the end of June, and state support will then be tapered over another three months.A fourth three-month grant for self-employed workers will be paid to cover February through April. It will be set at 80% of average trading profits and capped at 7,500 pounds. A fifth grant will also be paid, at a level that depends on the change in recipients’ turnover. More than 600,000 people who previously weren’t eligible will qualify for these grants.A six-month extension to the 20-pound a week uplift in Universal Credit social security payments, with equivalent support for working tax credit claimants in the form of a one-off payment of 500 pounds.An increase in the National Minimum Wage to 8.91 pounds/hour from April.A new program of loans of as much as 10 million pounds for struggling firms. The program replaces 3 existing plans, is open for businesses of any size, and the loans are 80% backed by the state.A three-month extension of the business-rates holiday for retail, hospitality and leisure, running through June. Then a nine-month, 2/3 discount for firms that remain closed, and a lower cap for those able to reopen. Sunak priced this measure at 6 billion pounds.A six-month extension in the temporary reduction of value-added tax for the hospitality and attractions sectors, which will now run through September. The rate is down to 5% from 20%. For the following six months, a discounted rate of 12.5% will apply.A three-month extension to the stamp duty holiday for the first 500,000 pounds of property sales. Then for three months, the holiday will apply to the first 250,000 pounds of a property purchase, before reverting to 125,000 pounds.TaxationThe chancellor also signaled there’s pain ahead as he tries to rein in a fiscal deficit that the Office for Budget Responsibility predicted will swell toward 355 billion pounds this tax year.“The amount we’ve borrowed is only comparable with the amount we borrowed during the two world wars,” Sunak said. “It is going to be the work of many governments, over many decades, to pay it back.”Sunak said it would be “irresponsible” to allow debt to rise unchecked, and announced a series of tax measures to take effect in future years.Corporation tax will rise to 25% in 2023 from 19% now. Sunak said the U.K. can do that and still retain the lowest level among the Group of Seven major economies. The chancellor introduced a small profits rate keeping the tax at 19% for businesses with profits of 50,000 pounds or less. There will be a taper above that so that only companies with profits of 250,000 pounds or more pay the full rate.The tax treatment of losses will be more generous for the next two years, allowing companies to claim more tax refunds.From next year, the thresholds at which people start paying different levels of income tax will be frozen until April 2026. Rises to 12,570 pounds and 50,270 pounds for the basic and higher thresholds will go ahead as planned next year.Sunak said he’d also freeze until April 2026 the inheritance tax thresholds, the lifetime allowance on pensions savings and the annual exempt amount in capital gains tax.From April 2022, the VAT registration threshold will also be frozen.There was also a “Super Deduction” sweetener to encourage companies to invest: For the next two years, companies that invest will be able to reduce their taxable profits by 130% of the amount they’ve invested.Alcohol and fuel duties were frozen.Leveling UpThere were several announcements that fed into the ruling Conservative Party’s “leveling up” mantra aimed at spreading prosperity nationwide:22 billion pounds of capital and loan guarantees to capitalize a new national infrastructure bank, with the aim of supporting 40 billion pounds of infrastructure investment. The bank will be located in Leeds.5 billion pounds of grants worth up to 18,000 pounds each to help nearly 700,000 eligible businesses in the retail, hospitality, accommodation, leisure and personal-care sectors reopen.The Treasury and other government departments will set up a new campus in Darlington.Eight freeports were announced for East Midlands Airport, Felixstowe and Harwich, Humber, Liverpool City Region, Plymouth, Solent, Thames and Teesside.1 billion pounds of “Towns Deals” was announced for 45 locations.Funding in the budget of 1.2 billion pounds for the Scottish government, 740 million pounds for the Welsh government and 410 million pounds for the Northern Ireland executive.Other AnnouncementsSunak published an independent review into U.K. stock market listing rules as part of an effort to bolster the City of London post-Brexit.The world’s first sovereign green savings bond for retail investors. The funds raised will be earmarked for projects such as renewable energy and clean transportation.A mortgage guarantee program for 95% mortgages to help people get on the property ladder.1.65 billion pounds of funding for the U.K.’s Covid vaccination drive.55 million pounds to develop vaccines against new Covid variants and to study the effects of combinations of vaccines.375 million pounds for a new public-private fund to invest in fast-growing tech start-ups.A 520 million-pound ‘Help to Grow’ program to provide small and medium-sized businesses with subsidized management training, discounted software and technology advice.A 300 million-pound summer sports recovery package to get sports such as cricket, horse racing and tennis reopened.408 million pounds of funding for museums and the arts.126 million pounds for traineeships, and an increase to 3,000 pounds in the cash incentive for hiring apprentices.150 million pounds to help community groups take over struggling local facilities such as pubs and sports clubs.A new fast-track visa program to ease entry to the U.K. for highly-skilled researchers, engineers, scientists as well as those working in the financial technology and cyber sectors.The chancellor raised the contactless payments limit for credit and debit cards to 100 pounds from 45 pounds.The Bank of England will be given a new mandate to consider net zero targets.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.
A new compromise would make millions of Americans ineligible for the third checks.
Congress is nearing passage of the third economic stimulus check it will send out to you and other taxpayers as part of its Covid-19 relief bill.
(Bloomberg) -- The main fund from Cathie Wood’s Ark Investment Management slipped in pre-market trading on Thursday, looking set to extend its 20% drop from a February peak.The $22.9 billion Ark Innovation ETF (ARKK) was down 2.5% as of 5:30 a.m. New York time. The ETF tumbled 6.3% on Wednesday alone as growth stocks such as Pinterest Inc. and Zillow Group Inc. took a beating, highlighting a swift turnaround for the formerly high-flying fund.Futures on the Nasdaq 100 Index were pointing to a red open after the underlying gauge lost almost 3% on Wednesday, with traders turning away from tech in favor of so-called value stocks that had underperformed during the pandemic. The rotation, along with higher bond yields that dim the allure of equities, is taking the shine off what had been one of the hottest investments on Wall Street.Since peaking on Feb. 12, ARKK’s price has now dropped by a fifth, the level that commonly defines a bear market.“People are worried the crowded trades will lose their momentum like they did last September” when some of the biggest tech names suffered a bout of selling, said Matt Maley, chief market strategist at Miller Tabak + Co.Yields on benchmark 10-year Treasury notes have jumped more than 50 basis points in 2021, on track for the largest quarterly increase since 2016. Consequently, it’s growing more difficult to justify sky-high valuations for highly speculative, expensive areas of the stock market.ARKK’s three largest holdings, Tesla Inc., Square Inc. and Roku Inc., have about tripled over the past year. Tesla is up close to 350%, while Square has surged about 200% and Roku is up more than 240%. They were all down in pre-market trading after slumping on Wednesday.In fact, all but three stocks held by ARKK fell and three suffered losses exceeding 10%, including Stratasys Ltd., a maker of 3D printers, and Veracyte Inc., which develops molecular tests for oncology.The fund’s tilt toward long-term growth means short-term profitability isn’t a key consideration when stocks are picked. In fact, two-thirds of its current holdings didn’t make a profit in the past year. And even after the recent losses, ARKK is still slightly up for the year.Inflows to the fund have faltered in the past week, but there’s yet to be a mass exodus. ARKK took in more than $600 million combined the past two days, after losing more than $690 million last week in its worst five-day period on record.“There is growing unease in the markets and whether higher-risk asset classes can continue to climb,” said Michael Purves, chief executive officer at Tallbacken Capital Advisors. “If sentiment turns, you can see substantial outflows.”(Updates for Thursday’s pre-market moves)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.
Tanger Factory Outlet Centers Inc (NYSE: SKT) is attracting heightened discussion on r/WallStreetBets, the forum that came to light with the short squeeze in GameStop Corp (NYSE: GME) stock earlier in the year. What Happened: The North Carolina-based real estate investment trust which operates factory outlet centers had a comments volume of 600 on WallStreetBets as of press time, as per SwaggyStocks data, and was the top-trending stock in the community in the near-term. Several users were pointing to what they said is a short squeeze opportunity. One forum member claimed he “just had to buy” Tanger stock as Melvin Capital and Citadel are short on it. Tanger shares have soared 76.69% since the year began. In the after-hours trading on Wednesday the company’s shares rose 5.13% to $18.65 after closing 9.24% higher at $17.74. Why It Matters: Tanger is the second most shorted stock after GameStop — attracting short interest or 39.98%, according to High Short Interest Stocks, a website that tracks stocks with short interest over 20%. The company was affected badly by the COVID-19 pandemic as most of the occupants of their outlet centers are non-essential businesses, the Motley Fool reported. However, the company’s fourth-quarter results indicated that it managed to attract customer traffic at 90% of 2019 levels and collect 95% of billed rent in the same period. Some of the positives related to the latest results have been noted by the WallStreetBets participants. Another emerging darling of the Reddit crowd is Rocket Companies Inc (NYSE: RKT), which was the second most discussed firm on the discussion board attracting over 3,700 comments as of press time. The resulting spike in Rocket shares gave Rocket founder Dan Gilbert’s wealth a billion boost on Tuesday before the stock dipped 32.67% on Wednesday. Related Link: GameStop Short-Selling Fame's Melvin Posts 20% Returns For February: Report Photo by Billy Hathorn on Wikimedia See more from BenzingaClick here for options trades from BenzingaWhy Globalstar Stock Spiked 9% In After-Hours TodayGameStop Short-Selling Fame's Melvin Posts 20% Returns For February: Report© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Barstool Sports founder Dave Portnoy tweeted an elaborately produced “emergency press conference” video to debut the ETF. The stunt was also an uncomfortable reminder that one man’s meta meme may be another’s market manipulator.
Budget 2021 summary: key changes and highlights at a glance Furlough extended Range of grants and reliefs expanded Corporation tax will rise to 25pc by 2023 Telegraph columnists give their verdict on the Budget 2021 Budget: the winners and losers What the Budget means for you, from pension savings to tax payments Sign up here for our daily Business Briefing newsletter Rishi Sunak has warned the total cost of Britain’s coronavirus response will reach £407bn by the end of next year, as he announced tax hikes to help pay down the UK soaring debts. The Chancellor unveiled an extra £65bn in spending in his Budget, including an extension of the furlough scheme to September and a number of other relief measures. But warning there is a price to pay for the Government’s huge spending spree, he announced tax on the biggest corporations will rise to 25pc by the end of 2023, and announced a freeze to income tax thresholds – meaning many Britons will pay more from 2022 onwards.
(Bloomberg) -- Australia wants to leverage off its position as a top mineral producer by boosting processing and manufacturing, part of a plan to challenge China’s dominance in the supply of products key to the clean-energy transition.The government unveiled a 10-year road map on Thursday that includes A$1.3 billion ($1 billion) of funding to help businesses capitalize on the country’s abundant natural resources and exploit opportunities in a de-carbonizing world. It encourages growth in high-value products like batteries and solar cells, as well as technologies and equipment that make mining safer and more efficient.The Modern Manufacturing Initiative comes as the U.S. and Japan look to cut their dependence on China for minerals that are vital to many manufacturing sectors. Australia is the top exporter of lithium, a key component in batteries, and is also a major source of rare earths. Beijing is reviewing its rare earths policy and there are signs it may ban the export of refining technology to nations or firms that it deems are a threat to state security.See also: Biden’s Hopes for Rare Earth Independence at Least a Decade Away“It’s a sovereign and strategic priority for Australia to ensure that we are hard-wired into this supply chain around the world,” Prime Minister Scott Morrison said at a media briefing following the announcement. It has to be “a supply chain that Australia and our partners can rely on, because these rare earths and critical minerals are what pull together the technology that we will be relying on into the future,” he said.Lynas Rare Earths Ltd. currently sends rare earths from its operations in Australia to Malaysia for processing, but has plans to build a facility close to its Mt. Weld mine in the country’s west. Lynas’ rival Iluka Resources Ltd. is also assessing options to build processing capacity. Energy Renaissance, meanwhile, and other companies are looking to establish a domestic battery manufacturing industry on Australia’s east coast.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.
Growth investors should watch out. The ETF (ticker: ARKK), actively managed by Cathie Wood, founder of ARK Investment Management, was one of the star performers of 2020. It gained more than 150% by riding stay-at home stars like (TSLA) (TSLA), (ROKU) and (SQ)(SQ) to new heights.
The oil industry is no stranger to boom-bust cycles, but the pandemic has been its wildest ride to date, and on March 4 it’s due to take another turn when OPEC meets to consider rolling back production cuts. As the world’s cars and airplanes idled, global oil demand bottomed out in April at levels 16.4% below the previous year, dragging the price into negative territory for the first time. White-knuckling through it all has been OPEC, the 13-member cartel that dictates quotas for most of the world’s biggest oil-producing countries (notably excluding the US).
36% of taxpayers said the Recovery Rebate Credit was the 'most confusing' part of taxes this year.
(Bloomberg) -- The most popular stock trade in China is unraveling, tarnishing the reputations of some of the country’s most successful money managers and undermining the outlook for the world’s second-largest equity market.Until three weeks ago, buying the nation’s beloved liquor maker Kweichow Moutai Co. was a surefire way for the $3 trillion mutual fund industry to mint money and attract bumper inflows. The stock soared 30% year-to-date through its Feb. 10 record, after gaining almost 70% in 2020 -- and doubling in the year before that.Many funds, flush with a record amount of cash, didn’t have a choice if they wanted to keep their clients and attract new investors. Buying Moutai was the simplest and most effective way to top rankings -- until it wasn’t. The stock began tumbling after the Lunar New Year break, and kept falling. It’s now down 22% since its peak, including a drop of as much as 6% Thursday, and has lost more than $111 billion in value.One of the most high-profile casualties is E Fund Management Co.’s Zhang Kun, the first in China to oversee 100 billion yuan ($15 billion). Zhang’s E Fund Blue Chip Selected Mixed Fund is down 12% in 10 trading days after returning 95% last year largely due to a big bet on baijiu, the Chinese white spirit. The fund had 9.6% of its assets invested in Moutai as of December. Another fund run by Zhang has lost 23%. Zhang didn’t immediately reply to a request for comment.The fund manager has received “verbal abuse” in recent weeks by investors who were previously fans, according to a report Wednesday in China’s state tabloid Global Times. He was known as “Prince Charming” or “Brother Kun” among his investors, who now refer to him on social media as “Kun Gou” or “Kun the dog” -- an offensive term in Chinese.Other copycat money managers will be feeling the pain: recent data showed two-thirds of mutual fund assets were invested in only 100 stocks, while the top 400 stocks lured 93% of total funds. Although China’s onshore market contains more than 4,000 stocks, Moutai is by far the largest with a market value of about $390 billion.Moutai accounts for 27% of the loss in the FTSE China A50 Index of the nation’s largest companies since Feb. 10. When added together with fellow spirit makers Wuliangye Yibin Co. and Luzhou Laojiao Co., the three comprise more than half of the gauge’s decline.Concern had been growing about the stretched valuations of Moutai and its peers, especially as gains accelerated. A gauge tracking consumer staples, including liquor makers, traded at a record 36 times projected 12-month earnings in February.Read how China is warning against ‘entertaining’ investors with fund pitchesTo be sure, the company’s shares have faced plenty of risks in the past. The stock tumbled about 8% in a single day in July after the People’s Daily criticized the high price of the company’s liquor. In 2017, Xinhua News Agency said the stock was rising too fast, triggering a selloff. Back in 2013, the stock plunged when Xi Jinping came to power and clamped down on lavish spending by party cadres.But this time around, authorities have grown increasingly concerned about risks to the financial system posed by excess liquidity. On Tuesday, China’s top banking regulator jolted markets with a warning about the need to reduce leverage amid the rising risk of bubbles globally and in the local property sector. With Moutai being the best-known proxy for liquidity-fueled bets and momentum, fund managers will likely need to find a new strategy to protect their returns.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.
This chart shows why the S&P 500's bull market run may be both too short lived and too limited, in terms of price gains, to be over anytime soon.
Max out your 401(k) each year, and be sure to get your 401(k) employer match, if you have one. And for you super savers, here are other ways to save for retirement.
Stellantis CEO Carlos Tavares on Wednesday said the new car company formed from the merger of Fiat Chrysler Automobiles and PSA Peugeot would be a “disruptive” force in the industry, and that both sides would provide technologies to achieve the promised 5 billion euros ($6 billion) in cost savings each year. The Italian-American carmaker and the French mass-market automotive company completed their merger on Jan. 16, creating Stellantis, the world’s fourth-largest carmaker, despite a pandemic year that saw profits plunge.
U.S. stocks closed lower Wednesday, as benchmark bond yields climbed nearer to their highs of 2021 and a slate of fresh economic data came in mixed, despite progress on the vaccination front.
A bill in Congress would give families up to $300 a month per child starting this summer.