Happy 50th Birthday, Adam Sandler — King of Comfort Wear

Bloomberg
Bitcoin Breaches $50,000 Threshold With Technicals Back in Focus
(Bloomberg) -- Bitcoin headed for its worst week in almost two months as a proposed capital-gains tax increase for wealthy Americans intensified the volatility whiplashing the world’s largest cryptocurrency.A fresh bout of selling on Friday drove Bitcoin down as much as 7.9% to $47,525 -- below its 100-day moving average -- as it continued to take out key technical levels. Wall Street analysts warn of further losses for the notoriously volatile currency that hit a record high of $64,870 on April 14 ahead of Coinbase Global Inc.’s listing, before succumbing to an unexplained weekend swoon.This week’s roughly 20% rout marks the worst period for Bitcoin since it tumbled amid a wider slump in risk assets at the end of February. Even digital currencies that have managed to eke out gains over the past few days, like Ether and the satirical Dogecoin, tumbled on Friday as the crypto space turned into a sea of red.“Bitcoin has slipped below the 50-day moving average support that it held sacrosanct through this rally,” said Pankaj Balani, CEO of Delta Exchange. “It looks like there is more downside here.”Read more: Wall Street Starts to See Weakness Emerge in Bitcoin ChartsThe latest threat comes from a Bloomberg News report Thursday that the Biden administration is considering raising the tax on capital gains to 39.6% for those earning more than $1 million a year. That was enough to ignite the biggest slide in U.S. stocks in five weeks. U.S. investors in Bitcoin, which has advanced more than 70% this year despite its recent pullback, already face a capital gains tax if they sell the cryptocurrency after holding it for more than a year.But the coin’s been one of the best-performing assets in recent years -- anyone who bought a year ago is sitting on a nearly 550% gain. For investors who bought in April 2019, it’s roughly 800%.What Bloomberg Intelligence Says:Bitcoin correcting below $50,000 is doing what we see as normal for bull-markets as it flushes excesses and probes for support. The traders’ adage “If it seems easy, something’s wrong” appears to be playing out, with some key bullish underpinnings in place: Ethereum is above its $2,000 threshold and the launch of U.S. crypto ETFs appear imminent.-- Mike McGlone, BI commodities strategist. Click here to read the research.To be sure, the proposal will have to wind its way through Congress and even if it’s passed, investors don’t yet know when it would go into effect, said Simon Peters, crypto-asset analyst at multi-asset investment platform eToro.But, “we are clearly seeing some selling pressure,” said Peters. “This has coincided with the crypto market arguably looking quite frothy after a ramp up in purchases -- and prices -- in recent months, with this announcement acting as a catalyst for a deeper retracement.”The IRS has stepped up enforcement of tax collection on crypto sales. The agency -- which began asking crypto users to disclose transactions on their 2019 individual tax returns -- asks taxpayers whether they “received, sold, sent, exchanged or otherwise acquired any financial interest in any digital currency.”Read more: Bitcoin’s Big Selloff Was a Long Time Coming: Investors ReactBitcoin broke below its 100-day moving average earlier Friday. For many chartists, its next support level is around its 150-day line, followed by its longer-term 200-day one around $34,520. But, some might be heartened by the fact that its relative strength indicator is nearing an oversold level (it’s currently at 30.5), meaning that Bitcoin could see a reprieve from the selling.Carter Worth at Cornerstone Macro said his analysis points to Bitcoin falling to $40,000. That could happen if it breaks below the trend line that’s been in effect the past six months. The level corresponds to Bitcoin’s 150-day moving average and has showed significance during this year’s trading -- it posed resistance in January while offering support in late February.Still, investors may need to buckle up for more volatility in the near-term.“People have been talking about the capital gains tax and U.S. stock-market selloff being the catalyst of this,” said Todd Morakis, co-founder of digital-finance product and service provider JST Capital. “If it is true we’ve moved too much -- but once Bitcoin gets a head of steam it is tough to stop unless you are at a technical area.”(Updates price levels, updates comments, adds 100-DMA info)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.
1h ago
BBC
Tata 'sues Liberty Steel over unpaid debts'
It claims Liberty owes debts from the acquisition of Tata's speciality steels business, a report says.
1d ago
Bloomberg
Inflation Forces the Bank of Canada’s Hand Ahead of Fed and ECB
(Bloomberg) -- The Bank of Canada sent out a warning to investors this week that inflation still matters.In a surprise move, it accelerated the timetable for a possible interest-rate increase and began paring back its bond purchases on Wednesday. That made Canada the first major economy to signal its intent to reduce emergency levels of monetary stimulus.It’s a turn in policy by Governor Tiff Macklem that shows there’s a limit to how much he’s willing to test the upper boundaries of inflation, with new forecasts showing the central bank expects the biggest persistent overshoot of its 2% target in at least two decades. The question is whether Canada’s situation is unique, or foreshadowing the start of a global exit from stimulus.Markets, however, see it as an outlier so far.“Canada does give you a flavor of what happens when your trajectory is stronger than anticipated,” said Su-Lin Ong, head of Australian economic and fixed-income strategy at Royal Bank of Canada in Sydney.While the Canadian dollar jumped the most since June on Wednesday, the Bank of Canada’s big move didn’t cause much of a ripple effect in global markets. The MSCI benchmark for global stocks is trading within 1% of a record high. Ten-year U.S. Treasury yields have fallen below 1.6%, from 1.74% at the end of March, as investors pare expectations that the Federal Reserve will raise rates soon.‘Distinguishing Factors’Counterparts elsewhere, meanwhile, are resisting. At a decision Thursday, European Central Bank President Christine Lagarde said the institution isn’t discussing the phasing out of its emergency bond buying, while the Federal Reserve has long been adamant it won’t scale back the pace of its $120 billion-a-month bond purchases until it sees “substantial further progress” on employment and inflation.“Central banks of small economies can sometimes be canaries in the coal mine,” Krishna Guha, vice chairman at Washington-based Evercore ISI, said in a report to investors. “But while there are some elements of this decision that have an obvious read-across to other central banks, there are also distinguishing factors that caution against naive extrapolation.”Some analysts don’t even see the Canadian central bank taking a dramatically more aggressive policy stance, even after Wednesday’s move. At a press conference after the decision, Macklem emphasized the central bank’s commitment is not to raise interest rates before the economy fully recovers, and that any future hike would reflect economic conditions at the time.Macklem is right-sizing one of the more aggressive quantitative easing programs relative to the size of its bond market, in an economy also being supported by massive fiscal stimulus. The Bank of Canada owns more than 40% of outstanding federal government bonds, potentially distorting the market.“Canada is different. The amount of the bonds they are buying is huge,” Steve Englander, head of global G-10 FX research at Standard Chartered Bank in New York, said by phone. “The Fed doesn’t have that issue.”The economic fundamentals are also pretty solid. Canada’s jobs market has recouped 90% of losses during the pandemic, versus just over 60% of U.S. losses made up so far. Canada’s red-hot housing market is another worry.“The situation is sufficiently unique in Canada that I’m not sure it applies to the Fed, or ECB,” Jean-Francois Perrault, chief economist at Bank of Nova Scotia, said by phone. “Our labor market basically is back to where it was.”What Bloomberg Economics Says...“The Bank of Canada brought forward when it expects the economy’s excess slack to be absorbed, but the accompanying Monetary Policy Report includes discussion of several factors that could soften the need to pull forward a rate hike into 2022. We continue to think a rate move is likely to be delayed into the first quarter of 2023.”--Andrew Husby, economistFor a full report, see herePerhaps more consequential, the Bank of Canada’s mandate is narrow -- focused on a 2% inflation target, with some flexibility over timing. Consumer price gains are expected to be at or above that mark for more than 70% of its forecast horizon, according to Bloomberg calculations on Bank of Canada data. The central bank sees inflation at 2.4% in the final quarter of 2023, a rare divergence from target at the close of its forecasts.Macklem justified his tolerance for above-target inflation this week by citing the central bank’s decision not to preemptively raise rates until a full recovery. It’s a policy that’s paralleled in the U.S.But the Fed is juggling a number of objectives. These include growing concerns about racial equity that suggest it’s waiting for the headline jobless number to drop even below estimates of full employment.A more accommodative approach was formalized in a policy review last year that now allows the Fed to explicitly overshoot 2% inflation moderately for some time. It’s an option the Bank of Canada is considering as it completes its own mandate renewal later this year.(Updates with inflation forecast in final quarter of 2023 in 14th 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.
5h ago
BBC
Coronavirus: Where does the government borrow billions from?
How does it work when a government wants to borrow money, and when does it have to pay it back?
2h ago
Reuters
Biden plans 'real money' for jobs training, unions, economic adviser says
President Joe Biden wants to put "real money" toward helping laid-off workers get new jobs in growth industries like green energy and healthcare as part of his $2.3 trillion jobs and infrastructure package, a top economic adviser said. Biden is attempting a delicate balancing act as he calls for a reshaping of the nation's energy industry by reducing reliance on fossil fuels and coal-powered electric plants to meet aggressive climate emission goals. Those industries offer high-paying, union jobs that Biden promised to replace while courting the blue-collar vote on the campaign trail.
7h ago
Bloomberg
Oil Demand to Buckle in India as Covid Surge Wreaks Havoc
(Bloomberg) -- India’s deadly second Covid-19 wave has brought an abrupt halt to its nascent recovery from the pandemic, with the resurgence expected to drag on fuel demand for weeks in a setback for the global oil market.The combined consumption of diesel and gasoline in April is poised to plunge by as much as 20% from a month earlier due to renewed restrictions, including a week-long lockdown in the capital New Delhi, according to officials from top refiners and fuel retailers. While major oil processors were still buying crude recently, there are signs starting to emerge that refining operations will likely need to be scaled back to adjust for plummeting demand.“Given the grim situation, it’s likely that the lockdowns could be in place for several weeks or even a couple of months,” according to Senthil Kumaran, the Singapore-based head of South Asia oil at industry consultant FGE. “India’s total key oil products demand will see a significant pullback.”India has repeatedly shattered records for infections and deaths as the virus sweeps through the nation, stoking fears that the central government may be forced to implement another national lockdown to curb the spread. Preliminary industry sales figures show a significant impact to fuel demand during the first half of April and expectations are that the situation will only get worse.While demand for the motor fuel has been resilient during the pandemic as people shunned public transport in favor of their own cars and motorcycles to avoid infection, new advisories by state governments discouraging people from leaving their homes unless for emergencies or essential services are set to hurt consumption, the officials from the refiners and retailers said.Nitin Goyal, who runs a filling station in New Delhi’s bustling eastern district, said fuel sales dropped 90% on Tuesday during the first day of the week-long lockdown in the city. He typically sells an average 10,000 liters of gasoline and diesel a day from his Indian Oil Corp.-branded outlet and expects sales to recover to only about a quarter of usual volumes in the coming days.FGE sees daily gasoline demand declining by 100,000 barrels this month and 170,000 barrels a day in May, while diesel consumption is expected to decrease by 220,000 barrels and 400,000 barrels a day over the same period. Prior to the virus flare-up, motor fuel and diesel sales in March were at about 750,000 barrels and 1.75 million barrels a day, respectively, according to Bloomberg calculations based on official government data.The nation’s biggest fuel retailer -- Indian Oil Corp. -- may have to consider cutting crude processing rates if there’s a significant drop in demand for petroleum products, especially diesel, said a person familiar with the matter.India so far has instituted localized lockdowns, with the government seeking to avoid repeating the nationwide shutdown seen last year that drove demand to the lowest in more than a decade in April 2020. The South Asian nation is the world’s third-biggest oil importer, which means an extended impact will likely ripple through the global market, even as China and the U.S. rebound strongly.Prime Minister Narendra Modi will conduct high level meetings on Friday to review the virus crisis and won’t attend scheduled election rallies in West Bengal, he said in a twitter post. The Indian leader has been campaigning during state elections, despite the ferocious flare-up.Restrictions are also hobbling the India’s trucking industry -- considered the backbone of its economy and oil demand -- which was slowly clawing its way back from the worst of 2020. Business has halved, said Naveen Kumar Gupta, secretary general of All India Motor Transport Congress, which represents 9.3 million truckers and about 5 million bus and tourist vehicle operators.The latest restrictions have spurred a fresh exodus of migrant laborers fearing job losses, and Gupta says that small truckers, operators of buses, tourist taxis and school transport are among the worst affected. FGE estimates that commercial vehicles account for almost 80% of the nation’s diesel consumption, the country’s most used fuel.“Industrial activities have already slowed in some states,” said FGE’s Kumaran. “There has also been a sharp drop in driving in major cities. These cities contribute to the bulk of gasoline and gasoil demand in India.”(Updates with Indian Oil processing rates in eighth 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.
6h ago
Bloomberg
Blackstone Bets Billions on Reopening and Travel Revival
(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.
1d ago
Bloomberg
A Niche London Firm Outplayed JPMorgan in Super League Battle
(Bloomberg) -- The fight for the future of European soccer was also a battle between two very different types of financial players.On one side stood the venerable Wall Street giant JPMorgan Chase & Co., bankrolling a debt-driven, multi-billion euro plan to form a breakaway European Super League. Lining up against them was a boutique financial firm with links to some of the world’s richest and most liquid investors and a proposal to invest in a revamped UEFA Champions League soccer tournament.Centricus Asset Management may be little-known outside financial circles, but amid the sound and fury of the rebel league’s unveiling it emerged as the source of a 6 billion euro ($7.2 billion) counter-proposal. The prospect of that strategic financing gave UEFA, the body in charge of European soccer, a stronger hand as it sought to stave off the American-backed Super League.It’s an amount that could rise even higher after UEFA approved plans to revamp its the annual Champions League competition, people familiar with the matter have said, asking not to be identified discussing confidential information.A new-look Champions League may need to be underpinned by Centricus’s billions, ensuring that global investors will play a key role in the next phase of soccer’s development, despite fan outrage over the role of money in the Super League saga.Based in discreet offices neighboring St. James’s Palace in London, Centricus oversees $30 billion of assets. Its website lists just 21 bankers. That’s a far cry from the heft of JPMorgan, which has more than $3.7 trillion of assets under management and more than 250,000 employees.While it isn’t yet clear which investors are behind the Centricus bid, the firm’s ability to draw on a waterfall of global capital shows how the world of finance has shifted just as much as soccer in recent decades.High ProfileWhereas previously only a handful of global banks -- including JPMorgan -- would have been able to corral and deploy such cash, the rise of sovereign wealth funds and family offices as independent investors has made outfits such as Centricus increasingly prominent.“We estimate that the ultra-high net worth community has wealth of at least $10 trillion globally, while their family offices hold more than $6 trillion in assets under management,” said Rebecca Gooch, director of research at Campden Wealth.For its part, Centricus’s latest annual report says the firm “is backed by a broad range of sophisticated, long-term global investors.” A company representative declined to comment.The firm operates at the intersection of modern global tech, culture and luxury: From 2016 Centricus played a key role advising SoftBank Group Corp. on the creation of its $100 billion Vision Fund; in 2019 it bought a 68-room luxury Italian hotel, the Capri Palace, where guests have included Oprah Winfrey and Leonardo DiCaprio; last year it submitted several offers to buy the U.S. operations of TikTok, the social media firm owned by China’s Bytedance Ltd.It has its origins in 2016, when former Goldman Sachs Group Inc. partner Dalinc Ariburnu and Nizar Al-Bassam, an ex-Deutsche Bank AG investment banker, joined forces with Michele Faissola to start F.A.B. Partners. Faissola quickly departed amid an Italian criminal probe related to his time at Deutsche Bank, and has been CEO of a Qatari royal family office called Dilmon since January 2018, according to his LinkedIn profile. He has denied wrongdoing and is appealing a 2019 verdict, with a new trial to come.F.A.B. expanded through the purchase of private debt manager CIFC for $333 million in 2016, then rebranded as Centricus in 2017 when it bought Halkin Asset Management.Centricus began working with SoftBank in 2016, when former colleague and Vision Fund head Rajeev Misra asked for help finding financing.The firm helped cement the investment by Saudi Arabia’s sovereign wealth fund — a deal hashed out in October of that year when Mohammed bin Salman, then the country’s deputy crown prince, met with SoftBank founder Masa Son in Tokyo. Abu Dhabi followed with a $15 billion investment from its wealth fund Mubadala Investment Co.Centricus also advised SoftBank on its $3.3 billion deal for Fortress Investment Group LLC and teamed up with Son on a failed bid to start a 24-team soccer tournament with FIFA. The firm also was brought in to help raise capital for a second Vision Fund, Bloomberg reported in mid-2019.Yet its proposed deal with UEFA is arguably Centricus’s most high-profile yet, potentially placing the firm at the center of the world’s most popular sport. That brings its own challenges.“The size of the business of sport versus the amount of media attention is extraordinary,” said Marc Ganis, founder and president of consulting firm Sportscorp. Ltd. “Rabid fan bases, media focus and politics makes operating such businesses much more complex.”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.
4h ago
Bloomberg
Stocks Rally on Solid Economic Data; Dollar Falls: Markets Wrap
(Bloomberg) -- Stocks climbed after strong economic data added to evidence the recovery is gaining momentum, with traders also assessing a batch of corporate earnings. The dollar retreated.All major groups in the S&P 500 advanced, led by financial, tech and commodity shares. The Russell 2000 of small caps outperformed major benchmarks. Tesla Inc. and Apple Inc. paced gains in megacap stocks. Snap Inc. rallied as the social-media giant’s user growth beat estimates, while footwear maker Skechers USA surged on an upbeat outlook. Blue chips Honeywell International Inc., American Express Co. and Intel Corp. weighed on the Dow Jones Industrial Average.Equities whipsawed this week amid a flare-up in global coronavirus cases and news that the White House plans to propose almost doubling the capital-gain tax rate for the wealthy. Data Friday showed that U.S. new-home sales rebounded sharply in March to the highest since 2006. Meanwhile, a gauge of output at manufacturers and service providers reached a record high in April, adding to evidence of stronger demand.“It’s evident the U.S. economy continues to be on the right track,” Jeff Schulze, investment strategist at ClearBridge Investments, said this week. “Going forward what the market is going to be looking for is continued economic momentum. This is the beginning of a more sustained move toward value and cyclicals.”Other corporate highlights:Kimberly-Clark Corp., the maker of Scott toilet paper, slid on steep sales declines that signaled the potential end of a boon triggered by the pandemic.Schlumberger, the world’s biggest crude contractor, said it expects a gradual recovery of oil demand to boost overseas work through the end of this year.Comparing U.S. stocks to high-yield bonds makes equities “look less stretched,” according to Jeroen Blokland, a manager of multi-asset funds at Robeco. While the Cboe Volatility Index, or the VIX, set a 14-month low last week, the yield spread for the Bloomberg Barclays U.S. Corporate High-Yield Index reached its narrowest since July 2007 in the previous week. “Equities are relatively attractive versus high yield” on this basis, he wrote in a blog post.These are some of the main moves in markets:StocksThe S&P 500 rose 1% as of 12 p.m. New York timeThe Nasdaq 100 rose 1.3%The Dow Jones Industrial Average rose 0.5%The Stoxx Europe 600 fell 0.1%The MSCI World index rose 0.7%CurrenciesThe Bloomberg Dollar Spot Index fell 0.2%The euro rose 0.4% to $1.2067The British pound was little changed at $1.3846The Japanese yen was little changed at 107.95 per dollarBondsThe yield on 10-year Treasuries advanced two basis points to 1.55%Germany’s 10-year yield was little changed at -0.26%Britain’s 10-year yield was little changed at 0.74%CommoditiesWest Texas Intermediate crude rose 0.8% to $62 a barrelGold futures fell 0.3% to $1,777 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.
43m ago
CoinDesk
Bitwise’s Flagship Fund Seeks SEC Reporting Status
If it succeeds, Bitwise would join Grayscale as the only crypto fund issuers to register their products as a public reporting company.
4h ago
MarketWatch
Get ready for $178 billion of selling ahead of the capital-gains tax hike. These are the stocks most at risk.
NEED TO KNOW Avid readers of this column may have had a sense of déjà vu on Thursday. Last month, a Need to Know column explored what would pay for President Joe Biden’s infrastructure spending — and quoted a former Biden aide, Evercore ISI analyst Sarah Bianchi, who said it would “probably include nearly doubling capital-gains taxes on those with income over $1 million.
6h ago
Barrons.com
Don’t Fear a Higher Capital-Gains Tax. It Usually Doesn’t Affect Stocks.
Investors are concerned about a more stringent tax regime under President Joe Biden. Increased corporate and capital-gains tax rates could be on the way. Government spending hasn’t been light in the past year, with trillions of dollars of fiscal stimulus and potentially $2 trillion more for infrastructure spending.
5h ago
MoneyWise
Already got your third stimulus check? A bonus amount may be on the way
The IRS is sending out "plus-up" payments — see if you can expect one.
15h ago
CoinDesk
Schwab Waiting for Regulatory Clarity Before Deciding on Crypto Services: Report
Schwab’s CEO says the firm will be “highly competitive” and “disruptive” should it decide to participate.
8h ago
CoinDesk
Bitcoin’s Drop on Biden’s Proposed Tax Hike Just Temporary, BCB CEO Says
"While the shock may be sustained in stock markets, the nature of cryptocurrency will see straight through this dip," Landsberg-Sadie told CoinDesk.
6h ago
Barrons.com
The Dow Fell 321 Points Because Biden Pulled the Plug
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.
20h ago
TipRanks
2 Dividend Stocks Yielding at Least 7%; Analyst Says ‘Buy’
The stock market pulled back from all-time highs this week, as investors paused to consider just what’s been goosing stocks – and what the future may hold. A flood of stimulus cash, unleashed by the Biden Administration’s big spending bills, is set to push GDP growth to 9% for 3Q21, but next year looks like it will slip back as the spending runs its course. Economists are predicting 5.5% GDP growth next year. This bodes poorly for cyclical stocks, which tend to reflect macro volatility. As Morgan Stanley’s chief US equity strategist Mike Wilson said, “Peak rate of change on economic data and earnings revisions... are all contributing to the deterioration in lower-quality, smaller-capitalization, and the more cyclical parts of the market.” Dividend stocks, however, are more stable than the cyclicals, and while their average returns are lower, they offer the advantage of a steady return regardless of economic conditions. B. Riley analyst Matthew Howlett has been looking into the real estate trust segment, a group of stocks long-known for dividends that are both high and reliable. Howlett pointed out two stocks, in particular, that are showing dividend yields in excess of 7% and deserve a 'buy' rating. Ladder Capital Corporation (LADR) We’ll take a step into the real estate investment trust (REIT) niche, with Ladder Capital, a specialist in commercial mortgages. Ladder has operations in 48 states, and 475 cities. The average loan size is $19 million, and the company has securitized or sold a cumulative total of $16.7 billion commercial loans. Operations are backed by company’s $5.9 billion in assets. Ladder Capital has seen a series of headwinds in the past year. The corona pandemic, of course, was the major crisis – but for a commercial mortgage lender, the problem was broader. Loan customers were taking their own hits, and finding themselves unable to meet payments. As a result, Ladder saw its quarterly results in 2020 show deep declines, and greater volatility, when compared to 2019. On the positive side, Ladder finished the year 2020 with $1.25 billion in cash and cash equivalents. The final quarter of 2020 saw top line revenues of $77.9 million, compared to $135.4 million in the prior year’s Q4. Distributable earnings, however, came in at $4.9 million – and the company declared a dividend of 20 cents per common share, which was paid out on April 15. This marked the fifth quarter in a row with the dividend at this level. The current payment annualizes to 80 cents per share, and gives a yield of 7%. Despite the challenging economic environment, LADR shares are up an impressive 79% over the past 12 months. B. Riley's Matt Howlett expects the momentum to continue, and sees Ladder with a firm foundation to move forward. “[The] company’s loan originator has been a top CMBS loan contributor since the 2008-2009 financial crisis and is well positioned to contribute to LADR’s earnings growth as the conduit market rebounds post-pandemic,” Howlett noted. Howlett especially likes the company’s cash position, noting that it “should allow the company to accelerate growth of its core investment portfolio." The analyst sees "upside potential to the dividend (forecasted to increase to $1.05 in 2022) as originations ramp steadily and legacy higher cost debt (Koch/legacy CLO) pays down.” Backing these comments with a Buy rating, Howlett sets a $14 price target to suggest room for 21% growth in the next 12 months. (To watch Howlett’s track record, click here) Overall, Ladder gets a Moderate Buy rating from Wall Street’s analysts, based on 6 recent reviews that include 5 Buys – but also a single Sell. LADR shares are currently priced at $11.58, with an average target of $12.58 pointing toward 9% upside potential this year. The real attraction for investors here is the strong dividend yield. (See LADR stock analysis on TipRanks) Cherry Hill Mortgage (CHMI) The second stock we’re looking at, Cherry Hill, is another REIT, this one with a focus on the residential markets. Cherry Hill’s portfolio includes mortgage servicing rights, mortgage backed securities, and other mortgage assets in the residential market. After a steep earnings drop in the first quarter last year, to a loss of $2.80 per share, Cherry Hill has seen sequential growth in the past three quarters. The fourth quarter of 2020 saw EPS return to positive values, with a print of 37 cents per share. Like most REITs, Cherry Hill pays out a reliable dividend. The company has been maintaining the payments since the fourth quarter of 2014, adjusting it when needed to keep it in line with income. For the most recent quarter, the dividend was declared at 27 cents per common share, or $1.08 annually. At this rate, the dividend yields an impressive 11.5%. CHMI's strong defensive characteristics and attractive dividend yield drew it to the attention of B. Riley’s Howlett. “[We] believe the portfolio is better insulated against basis risk and would perform better in a rising rate environment… We believe that CHMI's strong liquidity profile… puts it in strong position to deploy capital accretively during 1H21," Howlett opined. The analyst continued, "We expect: 1) slower prepayment speeds and 2) declining servicing costs in 2H21 to be key drivers of higher core ROEs going forward. Our 12.5% ROE forecast for 2022 should allow the company to increase its quarterly dividend to $0.30 based on our model.” In line with his upbeat outlook, Howlett rates Cherry Hill a Buy. His $11.50 price target implies that the stock has room to gain 21% in the next 12 months. CHMI has slipped under most analysts’ radar; the stock’s Moderate Buy consensus is based on just two recent ratings; Buy and Hold. With shares trading at $9.43, the $10.75 average price target suggests room for a 14% upside. (See CHMI stock analysis on TipRanks) To find good ideas for dividend 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.
15h ago
Barrons.com
Bitcoin Is Getting Crushed. Why There’s Turmoil in the Crypto Markets.
Fears of higher taxes spook stock market, Intel CEO says global chip shortage could last two more years, and other news to start your day.
4h ago
USA TODAY
When will more 'plus-up' payments arrive? Nearly 700,000 catch-up checks this week went to people who qualify for more stimulus money
Some who filed 2020 income tax returns may qualify for more stimulus money now and the IRS is making those adjustments.
21h ago
Bloomberg
Ambani’s Reliance Buys Iconic Stoke Park for $79 Million
(Bloomberg) -- Reliance Industries Ltd., controlled by Asia’s richest person Mukesh Ambani, bought Stoke Park Ltd. for $79 million, adding an iconic locale that’s been the setting for two James Bond films to its portfolio of tourism properties.A wholly owned unit of Reliance Industries will buy Stoke Park, which owns and manages a hotel, sports and leisure facilities in Buckinghamshire, for 57 million pounds ($79 million), according to an exchange filing late Thursday. The acquisition will add to Reliance’s consumer and hospitality assets, the filing said.The property’s rolling golf course has been famous since James Bond played a game with Auric Goldfinger there in the 1964 blockbuster. Since then, the estate with the Georgian-era mansion set in the midst of 300 acres of parkland has also been a backdrop in productions like “Bridget Jones’s Diary” and Netflix Inc.’s British Royal Family drama “The Crown”.In real life, its 49 luxury bedrooms and suites, 27-hole championshop golf course, 13 tennis courts and 14 acres of private gardens attracts wealthy tourists from across the world.The latest marquee acquisition for Indian billionaire Ambani’s retail-to-refining conglomerate marks its pivot toward consumer offerings and yet another high-profile British brand purchase. Reliance bought struggling U.K.-based toy store chain Hamleys in 2019 and is seeking to revive it.Flush with $27 billion in fresh capital after selling stakes in Reliance’s retail and digital units last year, Ambani is helming a transformation as he seeks to build consumer services into a equal-sized pillar for Reliance Industries, paring dependence on profits from its traditional oil refining business. Acquiring marquee global brands underscores that strategy.Private GardensAlthough the Stoke Park estate has a recorded history of over 900 years, it was used as a private residence until 1908, according to its official website.Ambani has a net worth of $71.5 billion, making him the 13th richest person in the world, according to the Bloomberg Billionaires Index.The group “will look to enhance the sports and leisure facilities at this heritage site,” Reliance said in the filing. Ambani’s conglomerate has equity holding in EIH Ltd., which runs the chain of five star Oberoi Hotels.Reliance has announced acquisitions worth $3.3 billion in the past four years, with 80% of it in the media, technology and telecom sectors, according to an April 23 report by Morgan Stanley. Last year, Reliance bought out IMG Worldwide LLC’s 50% stake in their India sports management joint venture, signaling commitment to its sports and entertainment businesses.The U.K. is emerging as a real estate hotspot for wealthy Indians. Adar Poonawalla, chief executive officer of the Serum Institute of India Ltd. -- the largest vaccine manufacturer in the world -- agreed to rent a property in Mayfair for about 50,000 pounds ($69,300) a week, a record for the exclusive London neighborhood, Bloomberg reported last month.(Updates with comments from Morgan Stanley in the 10th 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.
9h 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

Comfort first

Mad about plaid

Happy feet

Yahoo News is better in the app

Aloha!

Barefootin’

Fashion plates

Yahoo News is better in the app

Grandpa duds

Deep thoughts

Polo, anyone?

Yahoo News is better in the app

Are Those Uggs?

Uncoordinated ensembles

Bundle up

Yahoo News is better in the app

‘Grown Ups’ attire

Up, up and away!

Los Angeles incognito

Yahoo News is better in the app

Three’s company

Recommended Stories