|Day's Range||4.1000 - 6.3500|
Many companies have made statements in support of racial equality, but experts and activists say they must also take action in their communities.
While the number of confirmed cases that causes COVID-19 and death tolls keep rising, a “shock” increase in jobs and drop in unemployment in the U.S. in May add to signs suggesting the worst of the pandemic is over as the easing of lockdown measures continues nationwide.
The S&P 500 and Dow Jones indexes were set to jump at the open on Friday after a closely watched report showed a surprise drop in the U.S. unemployment rate, lending weight to hopes of a faster economic rebound from a coronavirus-driven slump. The unemployment rate unexpectedly fell to 13.3% in May from 14.7% in April and layoffs abated, the Labor Department said on Friday. Interest-rate sensitive stocks including Bank of America Corp, Citigroup Inc and JPMorgan Chase & Co jumped between 3.8% and 8.8% as U.S. Treasury yields rose after the data.
(Bloomberg) -- NetEase Inc. raised about HK$21 billion ($2.7 billion) in its Hong Kong stock offering, people with knowledge of the matter said, as Chinese companies grapple with rising tensions between Beijing and Washington.China’s second-largest gaming company priced 171 million new shares at HK$123 each, equivalent to a 2% discount to its Thursday closing price on Nasdaq, said the people, who asked not to be identified as the information is private. That comes after investors subscribed for many times more than the total stock offered. The company earlier set a maximum price of HK$126. The shares are expected to start trading in Hong Kong on June 11.The U.S.-listed internet giant makes its debut in Hong Kong as tensions between Washington and Beijing threaten to curtail Chinese companies’ access to U.S. capital markets, particularly after once high-flying Luckin Coffee Inc. crashed amid an accounting scandal. It’s also a victory for Hong Kong, coming on the heels of Alibaba Group Holding Ltd.’s $13 billion share sale and the passing of a national security law that critics fear could jeopardize its status as a financial hub. No. 2 Chinese online retailer JD.com Inc. plans to start taking orders on Friday for its listing in the city .NetEase is a distant second to Tencent Holdings Ltd. in the world’s largest video game market. The creator of popular franchises like Fantasy Westward Journey and Onmyoji reported a 14% rise in online games revenue for the coronavirus-stricken March quarter, less than half of the pace Tencent’s gaming division managed during the same period.Much like Tencent, NetEase is looking globally for the next chapter of growth, teaming up with Japan’s Studio Ghibli and investing in Canadian game creator Behaviour Interactive. After selling its cross-border e-commerce platform Kaola to Alibaba, the 22-year-old company has shifted its focus to music streaming and online learning, despite worsening competition in these areas. NetEase company representatives didn’t immediately respond to a request for comment.China International Capital Corp., Credit Suisse Group AG and JPMorgan Chase and Co. are joint sponsors.(Updates throughout as the deal is priced. An earlier version corrected the currency denomination in first paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
GameStop Corp. said late Thursday it expects quarterly sales to drop by as much as a third and that a majority of its stores were closed in March. The videogame retailer said it expects global sales to decline from "33% to 35% from $1.5 billion in the prior year fiscal quarter," which would result in revenue of $1.01 billion to $1.04 billion. Analysts surveyed by FactSet expect revenue of $1.13 billion. GameStop also expects same-store sales for the quarter to drop about 30% to 31%, while analysts had forecast a decline of 26.4%. The company said that about 76% of its international stores were closed temporarily in March, and that all of its U.S. locations were closed in March with 65% of those offering curbside pick-up service. "Despite the disruption caused by the pandemic, we are pleased to see our strategic investments in omnichannel capabilities allow us to deliver on the increased demand for gaming, entertainment and remote work products," said George Sherman, GameStop chief executive, in a statement. "Our Buy Online Pickup in Store capabilities enabled many of our stores to safely open for contactless curbside pickup." Shares of GameStop rose 1.8% after hours, following a 0.7% rise to close the regular session at $4.47.
(Bloomberg) -- The European Central Bank intensified its response to the “unprecedented contraction” facing the euro area with a bigger-than-anticipated increase to its emergency bond-buying program.President Christine Lagarde and her colleagues decided to expand purchases by 600 billion euros ($675 billion) to 1.35 trillion euros, and extended them until at least the end of June 2021. Italian bonds rallied, with the yield on 10-year debt compared with the German equivalent set to narrow the most since mid-May. The euro reversed losses.“Action had to be taken,” Lagarde said in a press conference. While there are nascent signs of the downturn bottoming out, “the improvement has so far been tepid.”The vast majority of economists surveyed by Bloomberg last week had predicted a boost of 500 billion euros. Still, some said after the decision that the ECB will have to act again, perhaps as soon as September.Lagarde revealed sweeping downward revisions to the ECB’s projections for growth and inflation in the region. In 2020, the bloc will likely see a contraction of 8.7% before rebounding by 5.2% in 2021. Under a more severe scenario with a strong resurgence of infections, output could shrink by as much as 12.6% this year.Inflation, which she said is the ultimate justification for the stimulus, will accelerate only slowly, and is seen averaging 1.3% by 2022 -- far below the goal of just under 2%.The ECB action reflects how Europe is finally stepping up with powerful plans to drag the economy out of its worst recession in living memory. Germany announced a new 130 billion-euro fiscal package late Wednesday, the latest in a raft of national programs, and the European Union has proposed a 750 billion-euro joint recovery fund that leaders will discuss later this month.It also shows Lagarde is determined to act preemptively -- only about a third of the pandemic program had been spent before Thursday’s increase -- to keep markets stable, building on the strategy of her predecessor Mario Draghi. She got off to a shaky start in the pandemic when she inadvertently suggested she might not step in to calm bond volatility in stressed economies such as Italy.“This is a bit of an economics-policy fireworks -- last night the German government with an enormous fiscal stimulus package, and now the ECB,” Carsten Brzeski, chief euro-region economist at ING, told Bloomberg Television. “This is huge.”With so much debt being issued by governments, economists at ABN Amro, JPMorgan, Banque Pictet & Cie and Nordea said the ECB will have to expand its bond purchases again later this year to soak it all up.Read more: ECB’s 600 Billion-Euro Stimulus Hasn’t Stopped Calls for MoreFor now though, the central bank’s actions should keep a lid on borrowing costs for governments though. The central bank said buying will be conducted in a “flexible manner over time, across asset classes and among jurisdictions.” The proceeds from maturing bonds will be reinvested at least until the end of 2022.What Bloomberg’s Economists Say“The large expansion of the Pandemic Emergency Purchase Programme creates a huge reserve of fire power to stimulate the economy and prevent any countries in the euro area from being engulfed by a sovereign debt crisis.”-David Powell and Maeva Cousin. read their ECB REACTThe central bank had already sweetened the terms of its liquidity operations in April so that lenders keep extending credit to companies, many of which have seen their revenues eroded by the shutdowns to limit the spread of the virus. Policy makers have refrained from cutting interest rates further below zero amid opposition to negative rates from banks and some politicians.Lagarde said policy makers didn’t discuss whether to include junk-rated debt in its asset purchases, aside from the exceptions currently being granted to Greek government bonds. She said the decision to act was unanimous, but the exact parameters ultimately decided were the result of a “broad consensus.”She pushed back against concerns that scope for action could be limited after a German court ruling last month questioned the legality of an older, still-active bond-buying program, saying she’s “confident that a good solution will be found.”(Updates with economist predictions for more purchases from fifth paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
DOW UPDATE The Dow Jones Industrial Average is trading up Thursday morning with shares of Boeing and Intel seeing positive momentum for the index. Shares of Boeing (BA) and Intel (INTC) are contributing about a third of the index's intraday rally, as the Dow (DJIA) was most recently trading 56 points (0.
DOW UPDATE Shares of Boeing and American Express are posting strong returns Wednesday afternoon, sending the Dow Jones Industrial Average soaring. The Dow (DJIA) is trading 556 points higher (2.2%), as shares of Boeing (BA) and American Express (AXP) have contributed around two thirds of the blue-chip gauge's intraday rally.
Hestia Capital Partners LP ("Hestia"), Permit Capital Enterprise Fund, L.P. ("Permit") and their affiliates (the "Investor Group"), who beneficially own approximately 7.2% of the outstanding shares of GameStop Corp. (NYSE: GME) (the "Company"), announced that Glass Lewis & Co. ("Glass Lewis"), a leading independent proxy voting advisory firm, has recommended that GameStop stockholders vote the Investor Group's WHITE proxy card FOR the election of Paul J. Evans and Kurtis J. Wolf at the Company upcoming Annual Meeting of Stockholders on June 12, 2020.
DOW UPDATE Led by strong returns for shares of Boeing and American Express, the Dow Jones Industrial Average is rallying Wednesday afternoon. Shares of Boeing (BA) and American Express (AXP) are contributing to the blue-chip gauge's intraday rally, as the Dow (DJIA) was most recently trading 487 points (1.
DOW UPDATE Shares of Boeing and American Express are posting strong returns Wednesday morning, leading the Dow Jones Industrial Average rally. The Dow (DJIA) was most recently trading 413 points, or 1.
DOW UPDATE Shares of Boeing and JPMorgan Chase are trading higher Wednesday morning, leading the Dow Jones Industrial Average rally. Shares of Boeing (BA) and JPMorgan Chase (JPM) have contributed to the index's intraday rally, as the Dow (DJIA) is trading 336 points higher (1.
Yahoo Finance's Alexis Christoforous and Brian Sozzi speak to Tom Michaud, KBW CEO about the current merger and acquisition market, future outlook for the banking industry with interest rates near zero and more.
Employee Benefit Research Institute (EBRI) and J.P. Morgan Asset Management today announced a significant new research collaboration leveraging 22 million Chase households and 27 million 401(k) plan participant records, offering the first truly holistic view of how U.S. households spend and save.
DOW UPDATE Powered by positive momentum for shares of Dow Inc. and American Express, the Dow Jones Industrial Average is climbing Wednesday morning. The Dow (DJIA) is trading 250 points, or 1.0%, higher, as shares of Dow Inc.
One thing to start: This Saturday, DD launches a new edition of the newsletter called Scoreboard in collaboration with the FT’s sports editor Murad Ahmed. In the pre-coronavirus era, the due diligence process involved a lot of travelling and in-person meetings that allowed investors or buyers to get a feel for where their money was going. Here’s a look at how some venture capitalist groups are getting creative.
Once upon a time, companies were reluctant to wade into debates over social issues for fear of alienating their customers. Today, many feel they must weigh in, although their efforts sometimes fall short.
Hestia Capital Partners LP ("Hestia"), Permit Capital Enterprise Fund, L.P. ("Permit") and their affiliates (the "Investor Group"), who beneficially own approximately 7.2% of the outstanding shares of GameStop Corp. (NYSE: GME) (the "Company"), announced that Institutional Shareholder Services ("ISS"), a leading independent proxy advisory firm, has recommended that stockholders vote the Investor's Group WHITE proxy card FOR the election of Paul J. Evans and Kurtis J. Wolf at the Company upcoming Annual Meeting of Stockholders on June 12, 2020.
JPMorgan Chase & Co and Barclays Plc will pay $20.7 million to resolve investors' claims they conspired to rig the Mexican government bond market, the first of nine banks in the proposed class-action litigation to settle. In a Monday night filing with the U.S. District Court in Manhattan, lawyers for the investors said the "ice breaker" settlements could be a catalyst for settlements with the other bank defendants. JPMorgan is paying $15 million, and Barclays is paying $5.7 million.
(Bloomberg Opinion) -- A crisis should be an opportune time for M&A bargain hunters. In reality, buyers probably won’t be getting deals done on the cheap. It’s not just that markets are rallying. Even companies whose fallen shares aren’t recovering may not make easy targets for lowball takeovers. Bidders should think about pricey deals becoming available rather than available deals becoming cheap.Dealmakers at JPMorgan Chase & Co. recently looked into the dynamics of 17 significant deals done during the crisis of 2008-2009. One conclusion was that the takeover target’s 52-week share-price high was a stubborn benchmark for the acceptable price of a deal. Boards and investors were wary of taking low cash offers that crystallized the value of the company at a sunken level — never mind that there might have been valid reasons for the shares taking a dive.The study found that the fixation with historic share-price highs does wane over time. Investors get used to markets being at lower levels. For example, Schering-Plough agreed to be bought by pharmaceutical peer Merck & Co. Inc. when the financial crisis was well advanced in March 2009. The price represented a conventional one-third takeover premium (the top-up required to win support for a deal). At that point, this was in line with its 12-month high, but well below its pre-crisis peak.All the same, it can take many months for the managers and shareholders of bid targets to lower their expectations. Until that happens, bidders may just have to be generous to get deals done.What if the buyer offers to pay in its own stock? That way the target company’s shareholders might be persuaded they are getting remunerated in a currency with some recovery potential. The tactic might work if both sides’ share prices fell in tandem as the crisis took hold. But for the buyer, paying in depressed stock means issuing more shares than it would otherwise need to do. That means giving away more value to the target’s stockholders. Again, the chance of a bargain evaporates.No wonder that only in about half of the deals looked at by JPMorgan was the bidder’s share price outperforming the market a year later.It’s not entirely discouraging. Where buyers are willing to pay up, they should find the boards of the targets are less able to rebuff a takeover approach. A bid made at a historic high in a crisis will likely contain a much bigger premium to the current share price than it would have just a few months earlier. Imagine a bid for a stock made at its 12-month high of $100 per share. If the stock was $85 in mid-February, just before markets woke up to the impending pandemic, the premium at that time would have been about 18%. Assume the stock is now 20% lower, and the premium approaches 50% against the current share price. That's very hard to reject.True, it’s always easier for a bidder and its advisers to get a deal done by simply overpaying. Nevertheless, the implication is clear. You can rarely get a good asset on the cheap. But you may be able to get a good asset without a big fight.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Chris Hughes is a Bloomberg Opinion columnist covering deals. He previously worked for Reuters Breakingviews, as well as the Financial Times and the Independent newspaper.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.