Superbowl LIII is a few days away, and nearly 23 million American adults are planning to bet on the game. Sara Slane, SVP of Public Affairs at the American Gaming Association, joins YFi AM to discuss the legal landscape.
Superbowl LIII is a few days away, and nearly 23 million American adults are planning to bet on the game. Sara Slane, SVP of Public Affairs at the American Gaming Association, joins YFi AM to discuss the legal landscape.
(Bloomberg) -- Coinbase Global Inc. sank to a record low as investors fled high-flying market newcomers.The operator of the largest U.S. cryptocurrency exchange slumped 6% to $256.76 on Thursday, dropping for a fourth straight day. That left the shares just above the $250 reference price for its April direct listing. An exchange-traded fund that tracks shares of companies that recently went public plunged for an eighth day, the longest slide since 2015. Virgin Galactic Holdings Inc. and Opendoor Technologies Inc., companies that came to market through blank-check offerings, each sank at least 3.8%.“We saw a mini-bubble in SPACs, IPOs, crypto, clean-tech and hyper-growth in late 2020 and early 2021 and many of these asset classes are nursing bad hangovers,” said Mike Bailey, director of research at FBB Capital Partners.Coinbase’s slide comes as investors pour into extremely speculative cryptocurrencies such as Dogecoin and Binance Coin -- tokens that the exchange doesn’t offer. Most of its traffic had come from Bitcoin trades, but the price of the largest crypto coin has been mired in a narrow band for weeks. Coinbase started trading at $381 on April 14 before briefly topping $400. It’s now down 22% from the close on its first day.Nasdaq had set a reference price of $250 a share on April 13 for Coinbase’s direct listing, a number that’s a requirement for the stock to begin trading, but not a direct indicator of the company’s potential market capitalization.“What has really hurt Coinbase, now that their direct listing has taken off, you’re seeing expectations that other exchanges are coming on board,” said Edward Moya, senior market analyst at Oanda. “There’s this belief this could be as good as it gets for Coinbase in the short-term.”The Renaissance IPO ETF dropped 4.2% on Thursday, bringing its year-to-date loss to about 14%.(Updates prices.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
(Bloomberg) -- One of the biggest Brexit battlegrounds between the European Union and the U.K. now has a price tag: at least $2.4 million a day.That’s how much any move by the European Union to cut off access to London’s dominant clearinghouses for derivatives could cost traders in euro interest rate swaps, net of buying, according to an estimate from Albert Menkveld, professor of finance at Vrije Universiteit Amsterdam, who has sat on advisory panels to European regulatory authorities.Fragmenting cross-Channel clearing would result in additional costs because global dealers would need more collateral for their positions in multiple clearinghouses in the U.K. and in the EU, Menkveld said. They wouldn’t be able to offset, or net, the positions as easily and that would require dealers to raise extra funds.Those additional costs would likely be passed on to pensions, money managers and other users of derivatives in the local jurisdiction, Menkveld said, who compares the burden on financial markets to traffic jams caused by passport controls.“This is the price we all paid for control by national authorities,” Menkveld wrote in a blog post. “As a European citizen I can now zip onto the Autobahn at 100-plus kilometers per hour, but my pension fund might soon pay for crossing the border with the U.K. to diversify risk.”His tally is one of the first to show the immediate fallout if authorities stop the seamless, cross-Channel settlement of trillions in euro interest rate swap contracts, which currently takes place largely in London. The actual cost could be far greater if it weakens London’s attractiveness as a global financial center. The business is widely viewed as a core pillar of London’s standing and the EU’s desire to pull more of that business away has prompted sabre-rattling from politicians, financiers and even the governor of the Bank of England.The U.K. and major lobby groups for the biggest banks and money managers in the world are calling for the EU to maintain easy access to London clearinghouses, including the London Stock Exchange Group Plc’s LCH unit which is the world’s biggest for euro interest rate swaps. The European Commission in Brussels wants the bloc’s traders to move more of their euro-denominated business inside the EU and not rely so heavily on London. A ruling last year extended access to London through June 2022.Clearinghouses serve as a key hub in the global financial system, settling hundreds of trillions of dollars in deals between banks, hedge funds, pensions and a wide range of corporations. The firms collect collateral, or margin, from buyers and sellers to reduce the risk that the default of one side spreads panic to the other and, in turn, across the broader system.If the temporary decision isn’t renewed, Bank of England Governor Andrew Bailey has said a quarter of euro-derivatives clearing business would need to shift to the EU. The rest would likely stay in London because it is currently the most efficient place for it, he said.Additional CostsThe estimated net price impact probably understates the total additional costs to traders in the market from the disruption that would ensue, Menkveld said.Costs could mount because traders would probably have a harder time offsetting positions in euros, pounds and other currencies as well as the increased compliance burden. In more stressed markets, traders could face much higher costs from the split and difficulty using clearinghouses in both the U.K. and the EU, he said.“There is a trade-off here between the benefits of local control by regulators, and the additional costs that fragmented clearing imposes,” Menkveld said. “The benefit is hard to quantify but the costs are non-trivial.”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.
As investor interest in cryptocurrency spikes, bitcoin could rise to $1 million over the next five years, one expert told Yahoo Finance Live.
(Bloomberg) -- A much-anticipated selloff in China’s bond market, the world’s second largest, may not have materialized yet, but it is on its way if key indicators are any guide.Producer prices are surging, activity gauges are on the rise and foreign bond buying has ground to a halt. What’s more, swap markets signal tighter liquidity.All of this spells higher bond yields. Traders who had been bracing for a supply deluge in April that would have hurt China’s bond markets now face the risk of a crunch for yields this month.Here are four charts that show how the pressure is building:Li Keqiang IndexChina’s bond market has a habit of lagging behind economic indicators and an alternative gauge based on Premier Li Keqiang’s insights shows how much catching up may lie in store.The index of bank loans, electricity production and rail freight volume has popped to the highest levels since 2010. The move is particularly notable given how closely the gauge correlates with the nation’s five-year non-deliverable interest rate swap, pointing to higher rates in the near term.Producer Prices SpikeProducer prices, which have demonstrated a stronger link to Chinese government bond yields than consumer prices, are running red hot. While the surge is due in part to the low base effect from last year, there is still room for acceleration given the sharp increases in the cost of commodity inputs for the nation’s manufacturers.Global DemandForeign buying of Chinese bonds took a breather in March, according to the most recent data from ChinaBond. With global funds trimming holdings by 16.5 billion yuan ($2.5 billion), the dropoff in demand suggests high yields may be in order to entice buyers back.The spread between China’s 10-year bond and similar maturity Treasuries has narrowed to around 158 basis points, from a record of more than 250 basis points in November. China’s 10-year yield closed at 3.15% on Thursday.The slower-than-expected inclusion in FTSE Russell’s flagship global bond index -- over three years instead of 12 months -- reinforces this over the short term.Quiet ShiftShort-dated interest rate markets in China are starting to taking notice, and they’re pointing to tighter liquidity coming soon.The current three-month swap sits around 2.34%, though one that begins in three months is eight basis points higher. This shows markets are getting ready for less liquidity, though this hasn’t reverberated out the yield curve yet.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.
Canadian Pacific (CP) had earlier agreed in its talks with U.S. railroad Kansas City Southern (KCS) to bear most of the risk of the merger deal not going through. It was going to buy KCS shares and place them in an independent voting trust, insulating the acquisition target from its control until the STB, which oversees freight rail, clears the deal.
(Bloomberg) -- Spot iron ore broke $200 a ton for the first time, while copper approached a record high as Chinese investors unleashed fresh demand following a three-day holiday.The reopening of major industrial economies is sparking a surge across commodities markets from corn to lumber, with tin climbing above $30,000 a ton for the first time since 2011 on Thursday. In the wake of mounting evidence of inflation -- fueled by higher raw materials prices -- investors are also increasingly focused on when the U.S. Federal Reserve might start throttling back its emergency support.Many banks say the rally has further to run, particularly for copper, which will benefit from rising investment in new energy sectors. Copper is at the highest in a decade, fueling bets it will rally further to take out the record set in February 2011. Steel demand is surging as economies chart a path back to growth just as the world’s biggest miners have been hampered by operational issues, tightening ore supply.“The long-term prospects for metals prices are ‘too good’ and point to higher prices in the next few years,” said Commerzbank AG analyst Daniel Briesemann. “The decarbonization trends in many countries -- which include switching to electric vehicles and expanding wind and solar power -- are likely to generate additional demand for metals.”Trading house Trafigura Group and several major Wall Street banks including Goldman Sachs Group Inc. and Bank of America Corp. expect copper to extend gains.Copper for three-month delivery rose 1.4% to settle at $10,092 a ton on the London Metal Exchange.Benchmark spot iron ore prices rose to a record, while futures in Singapore and China climbed.The boom comes as China’s steelmakers keep output rates above 1 billion tons a year, despite a swath of production curbs aimed at reducing carbon emissions and reining in supply. Instead, those measures have boosted steel prices and profitability at mills, allowing them to better accommodate higher iron ore costs.Spot iron ore with 62% content hit $201.15 a ton on Thursday, according to Mysteel. Futures in Singapore jumped as much as 5.1% to $196.40 a ton, the highest since contracts were launched in 2013. In Dalian, prices closed 8.8% higher.Read more: Copper’s Surge Toward a Record High Is Hitting Chinese IndustryStill, some analysts including Commerzbank’s Briesemann expect a short-term correction as metals become detached from fundamentals. There’s also a risk that China could engage in policies that may cool demand for iron ore and copper.The metals rally has boosted concerns about short-term Chinese demand. Some manufacturers and end-users have been slowing production or pushing back delivery times after costs surged, while weaker-than-expected domestic consumption has opened the arbitrage window for exports.Tin climbed as much as 2% to $30,280 a ton on the LME, boosted by rising orders for the soldering metal. Tin is at the highest since May 2011, with a 48% gain this year making it the best-performing metal on the LME.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.
Shark Tank investor Kevin O’Leary may agree with billionaire investor Warren Buffett, and his right-hand man, Charlie Munger, on a number of things. The trading app Robinhood, isn’t one of them.
It's been a long time since inflation posed a potential problem for investors, and some strategists have some ideas how to defend a portfolio against it.
(Bloomberg) -- Follow Bloomberg on LINE messenger for all the business news and analysis you need.Hong Kong tycoon Li Ka-shing’s private investment firm Horizons Ventures Ltd. will make Southeast Asia a priority, with the region’s digital economy booming as the pandemic drives more people to use the internet.Horizons Ventures will focus in particular on Southeast Asia’s biggest market, Indonesia, co-founder Solina Chau, Li’s long-time confidante, told Bloomberg News in a statement sent by text message.The firm, whose early bet on Zoom Video Communications Inc. contributed to a surge in Li’s wealth during the pandemic, has over the past year invested in three Indonesia-based startups in funding rounds that have raised more than $210 million. Partnering up with Jakarta’s Alpha JWC Ventures, one of Southeast Asia’s largest venture capitalists, Horizons seeks to identify young companies that could be the region’s next most popular.The investment firm is pivoting into developing economies after previously focusing on North America, Europe and Israel. Covid-19 is fueling a rapid digital transformation and burgeoning startup scene in Southeast Asia as more people use digital services, generating some of the region’s largest listings. New internet users quadrupled year-on-year in 2020 to 40 million in its six largest economies -- bringing 70% of their total population online -- according to an annual study by Google, Bain & Co. and Singapore’s Temasek Holdings Pte.“In the past, we felt more innovation, opportunities and founders with science and technology background in the U.S., Europe and Israel, but now we are seeing Indonesia and broader Southeast Asia really going through a very critical juncture,” Frances Kang, a director of Horizons Ventures, told Bloomberg in an interview. The company “will only deploy more capital” into the region, she said, and has set up a team looking into opportunities there.Horizon Ventures and Alpha JWC have over the past year invested in Indonesian online stock brokerage Ajaib, rapidly-expanding coffee chain Kopi Kenangan and capsule hotel operator Bobobox. Alpha manages some $200 million across two funds and has invested in more than 40 startups.Still, the region’s political uncertainties and fragmented markets remain challenging for investors. Two of Southeast Asia’s leading economies, Thailand and Malaysia, have seen recent government upheavals, and memories of the 1997 and 2008 financial crises linger.Recent mega deals in Southeast Asia include the $40 billion listing of Singapore’s ride-hailing firm Grab and a similar deal for Indonesian online travel company Traveloka, with a potential valuation of $5 billion.Li, 92, joins other high-profile global investors chasing the region’s growth potential. His son Richard Li, chairman of Hong Kong’s Pacific Century Group, has teamed up with American tech mogul Peter Thiel to set up two blank-check companies seeking merger and acquisition targets in Southeast Asia. Japanese conglomerate SoftBank Group Corp. and billionaire Mohamed Mansour, meanwhile, have invested in Grab, the region’s most valuable startup.Horizons Ventures has made early investments in a number of other tech giants including Facebook Inc. and Spotify Technology SA.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.
Investors appear unwilling to give up until there is definitive proof that the Fed is getting ready to begin tapering its bond purchases.
(Bloomberg) -- Sanjeev Gupta’s U.K. steelmaking business has reached terms on a 200 million-pound ($278 million) loan from White Oak Global Advisors LLC.The loan will be subject to due diligence and the approval of Credit Suisse Group AG, according to a person familiar with the matter. The Swiss bank has a claim on the business through financing provided by Greensill Capital and repackaged into its funds.The working capital facility would allow Gupta’s steel businesses to increase production and take advantage of record steel prices, the person said, asking not to be identified because the matter is private.The loan would be a potential lifeline for Gupta’s GFG Alliance, which is fighting for survival after the collapse of its biggest lender Greensill Capital. Earlier this week, Gupta agreed another loan for his primary steel business in Australia, which includes the Whyalla mill.White Oak declined to comment.Gupta’s U.K. steel business owes Greensill $769 million, according to a March 2021 GFG presentation seen by Bloomberg. The loan from White Oak would not be used to refinance that debt, the person familiar said.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
(Bloomberg) -- Epic Games Inc. seized on Apple Inc.’s private survey of developers to show that the creator of Fortnite isn’t alone in bashing the App Store.One unidentified developer complained that the store “is plagued with outdated low-quality apps which make it harder for higher-quality apps to get the exposure they need.” Another wrote that “you tend only to feature indie apps and apps that spend or earn most the money.” A third said: “I’m satisfied as consumer. As a developer it’s a nightmare.”Epic’s lawyer confronted App Store chief Matt Fischer with the survey comments on the fourth day of a trial in federal court over the game maker’s claims that Apple runs its marketplace like a monopoly, cheating developers and consumers alike. Fischer is among several high-ranking Apple executives testifying at the three-week trial.Apple said the purpose of the survey was to solicit constructive criticism to help the iPhone maker improve the store -- and that Epic chose to cherry pick negative comments. Apple’s lawyer objected to the survey comments being read in court, but U.S. District Judge Yvonne Gonzalez Rogers overruled him.Read More: Epic’s Interrogation of Apple App Store Witness Gets Rocky StartWhen Fischer was questioned Thursday by Apple’s attorney, he said his team works hard to make the App Store “attractive to both customers and developers, neither of whom we have control over.”On Friday, Epic will call the manager of its own app store to the witness stand to show how its policies contrast with Apple’s.The trial in Oakland, California, comes as Apple faces a backlash -- with billions of dollars in revenue on the line -- from global regulators and some app developers who say its standard App Store fee of 30% and others policies are unjust and self-serving.How Apple’s App Store Sparked an Epic Trial: QuickTakeThe fight with Epic blew up in August when the game maker told customers it would replace Apple’s in-app purchase system with its own, circumventing Apple’s commissions from add-ons inside of Fortnite. Apple then removed the game, cutting off access for more than a billion customers.Apple, which vehemently denies abusing its market power, has called Epic’s legal gambit a “fundamental assault” on a business model that’s beneficial to both developers and consumers.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
(Bloomberg) -- China’s exports rose more than expected in April, suggesting its trade out-performance could last longer than expected this year, fueled by global fiscal stimulus.Exports grew 32.3% in dollar terms in April from a year earlier, the customs administration said Friday, exceeding the 24.1% median estimate in a Bloomberg survey of economists. Imports climbed 43.1%, a sign of strong domestic demand and soaring commodity prices, resulting in a bigger-than-expected trade surplus of $42.85 billion for the month.Global appetite for Chinese goods remained strong in the month, thanks to stimulus packages introduced by developed economies that’s helped to fuel demand for household goods, furniture and electronic devices. With vaccine rollouts accelerating and more economies opening up, China’s export growth was widely expected to moderate this year as consumers start to spend more on services. But April’s data shows that hasn’t happened yet.“The export figure clearly reflects a recovering and expanding global economy,” said Hao Zhou, an economist at Commerzbank AG in Singapore. “Robust imports and exports also mean that China’s manufacturing industry is still outperforming the services sector to lead the economic rebound.”The low base from a year ago also helped to underpin the strong results, but even on a two-year average growth basis which strips out those effects, April’s export growth was 16.8%, much stronger than pre-pandemic levels, according to analysis by Bloomberg Economics.What Bloomberg Economics Says...“Imports were lifted mainly by higher commodity prices, but also due to a recovery in domestic demand. These factors that supported China trade look set to continue in the near term.”-- David Qu, China economistFor the full note click hereThe U.S. was the biggest export market last month, accounting for 15.9% of Chinese goods sold abroad. Southeast Asian nations bought 15.6% of exports while the European Union purchased 15.1%.“We expect China’s export growth will stay strong into the second half of this year,” said Zhang Zhiwei, chief economist at Pinpoint Asset Management Ltd, citing strong growth in U.S. demand and continued coronavirus outbreaks in developing countries such as India causing production to shift to China. Those trends are likely to support China’s currency, he added.Politburo MeetingLiu Peiqian, an economist at Natwest Group Plc, cited increased global demand for microchips, where Chinese companies are a key part of the supply chain, as another reason why “exports outperformance will likely remain a key theme” in China’s recovery. In volume terms, imports of industrial metals and energy products softened slightly in April, she added, suggesting that the domestic demand recovery could still be relatively weak.At the Communist Party’s Politburo meeting last week, China’s top leaders pledged to accelerate the recovery in domestic demand and reiterated there would be “no sharp turn” on economic policy. But the government is focused on raising consumer spending on goods and services, while taking a cautious stance on property and infrastructure investment, which tends to be more import-intensive.Read More: Chinese Copper Imports Drop With Scorching Rally Taking TollA strengthening recovery in Chinese consumer spending was indicated by the April services purchasing managers’ index compiled by Caixin Media and IHS Markit, which rose to 56.3 from 54.3 the previous month, well above the 50 reading that marks an expansion from the previous month. However, data from a recent five-day public holiday in China showed spending below pre-pandemic levels, suggesting China will remain dependent on overseas demand for much of its growth this year.Other details:For a breakdown of commodity imports, click here. While the volume of iron ore imports rose 6.7% in January-April compared with the same period in 2020, the value of shipments surged 82.1%Imports were also boosted by the delivery of 24 aircraft in April; on a year-to-date basis, the value of aircraft imports surged 247% from the same period in 2020In yuan terms, exports rose 22.2% in April from a year earlier, higher than the 12.5% forecast by economists in a Bloomberg survey; imports grew 32.2%, below the 33.6% predicted(Updates with additional details and comments from economists.)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.
Canadian electric vehicle company Lion Electric on Friday said it had selected Illinois as the location for its new U.S. manufacturing plant, promising to invest at least $70 million and create about 750 jobs over the next three years. Lion, known for its electric yellow school buses, said it will build the 900,000 square foot facility in Joliet near Chicago to produce 20,000 electric buses and medium and heavy-duty trucks per year. Lion Chief Executive Marc Bedard said in an interview that while the Illinois factory would focus on vehicle manufacturing initially, the company might later add battery production.
The Federal Reserve said Thursday that financial system vulnerabilities increased over the last six months, pointing to the blow-up of family office Archegos Capital Management and the run-up in “meme stocks” like Gamestop.
LONDON (Reuters) -Europe's consumers will feel the hit from price rises this year as companies seek to recoup revenues and cover pandemic-related costs. Over the past year, the fallout from COVID-19 has contorted both the demand and supply sides of the global economy, creating bottlenecks in supply chains, havoc in freight markets and a rally in raw materials from corn to copper. Lockdowns, meanwhile, have deprived well-off consumers in Europe and elsewhere of the opportunities to spend their cash, creating record levels of savings and a window of opportunity for companies to push through price increases.
(Bloomberg) -- West Fraser Timber Co. plans to expand capacity at five of its lumber mills in the U.S. South as a home-building boom fuels lumber demand.The pandemic-fueled surge in home construction last year took North American sawmills by surprise, sending lumber prices to new records. U.S. futures this week hit $1,600 per 1,000 board feet for the first time, a four-fold increase from a year ago. While production has since ramped up, demand continues to outpace supplies as home-buying and renovations continue.“In the lumber segment we expect to invest approximately $150 million at five of our U.S. South lumber mills under the strategic capital program,” the company said Thursday in a statement. “Investments at the target mills will expand their capacity, increase the mix of higher-margin 2x4s and reduce fixed and variable production costs.”Key TakeawaysThe Vancouver-based company acquired Norbord Inc., one of the world’s biggest makers of oriented strand board, in February. West Fraser said it will invest $30 million at two OSB mills to improve productivity.Log costs for the company’s Canadian and engineered wood product operations are expected to remain elevated as long as demand exceeds available log supply in B.C.Higher Canadian stumpage rates and increased costs from extreme weather in the U.S. south, negatively impacted adjusted EBITDA compared to the prior quarter, the company said.Adjusted EBITDA for lumber in the last three months of 2020, when prices were unseasonably high due to strong home building and renovation demand, was $425 million. This jumped to $646 million in the first three months of 2021.West Fraser said it will move forward with roughly $180 million of additional capital projects in the second half of 2021 through 2023, and reiterated its capital expenditure target of roughly $450 million this year.Market ReactionWest Fraser shares are up 28% this year through Thursday’s close, after reaching a record high at C$106.42 last month in Toronto, outperforming the nearly 11% gain of Canada’s benchmark S&P/TSX Composite Index.Get MoreFirst-quarter adjusted EBITDA was $1 billion or $6.96 a share, missing the C$1.18 billion average estimate in a Bloomberg survey.Read more about West Fraser’s quarterly results here.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.
LONDON (Reuters) -British Airways owner IAG is confident travel will recover from July onwards after forecasting only a minimal increase in its capacity to 25% for the April to June quarter. IAG, which also owns Iberia and Vueling in Spain and Aer Lingus in Ireland, declined to forecast how much it would fly from July but said the recovery would be properly underway by then after more than a year of pandemic restrictions. "We consider in the second half that we are going to be flying and we are prepared for that," IAG Chief Executive Luis Gallego told reporters on Friday after the company posted a loss of 1.14 billion euros ($1.4 billion) in the first quarter.
(Bloomberg) -- Oil declined as the coronavirus crisis in India and a slowing demand rebound in the U.S. highlighted the uneven nature of the global recovery.Futures in New York fell 1.4% Thursday after hitting a nearly two-month high earlier in the week. While signs of rising oil consumption have put prices on track for a weekly gain, spiking Covid-19 cases in major crude importer India is capping gains. At the same time, U.S. gasoline consumption slipped for a second straight week.“What’s keeping the market from going higher are these Covid-19 issues in several countries along with not quite enough of a demand rebound here in the U.S. to juice prices toward that $70-a-barrel mark,” said John Kilduff, founding partner at Again Capital LLC.Despite near-term concerns, oil has rallied more than 30% this year as key economies including the U.S. and China rebound from the depths of the pandemic. Spain’s Cepsa is restarting a processing unit that was previously idled, while U.S. refineries are running at five-year average levels for the first time since the pandemic began. The strength in crude has helped drive the Bloomberg Commodity Spot Index to the highest level in almost a decade.The promise of a summer travel boost is also keeping prices supported, said Bob Yawger, head of the futures division at Mizuho Securities. “With Memorial Day weekend so close here, the gasoline demand scenario is just too strong to see crude oil fall apart.”Elsewhere, Japan plans to extend a state of emergency brought on by Covid until the end of the month, local media reported. The country’s capital, Tokyo, had wanted to extend it in a bid to stem a surge in infections ahead of hosting the Olympics from July.Beyond headline crude prices, the market’s underlying structure has weakened in recent sessions. The backwardation between Brent’s two nearest contracts -- which signals tightening supplies -- has narrowed since the end of last week. The backwardation in WTI’s so-called prompt spread has also softened compared to last Friday.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
The S&P 500 and the Dow Jones Industrials hit record highs on Friday, while the technology-heavy Nasdaq index jumped after weak U.S. jobs data eased worries about the Federal Reserve reducing its massive stimulus program anytime soon. The Labor Department's closely watched employment report showed U.S. employers hired far fewer workers than expected in April, with nonfarm payrolls increasing by only 266,000 jobs last month after rising by 770,000 in March. Highly valued stocks such as Microsoft Corp, Apple Inc and Facebook Inc rose between 0.3% and 1%.