Feb.11 -- PJ Solomon Chief Executive Officer Marc Cooper says Bitcoin is “clearly the embodiment” of the cash hoard and frothy markets. He speaks with Bloomberg’s Alix Steel on "Bloomberg Markets."
Feb.11 -- PJ Solomon Chief Executive Officer Marc Cooper says Bitcoin is “clearly the embodiment” of the cash hoard and frothy markets. He speaks with Bloomberg’s Alix Steel on "Bloomberg Markets."
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.
(Bloomberg) -- The Nasdaq 100 Index has taken a nasty dip in recent weeks but some tech stocks are rallying -- just not the ones that have ridden on the waves of investor euphoria in recent years.Older technology companies peddling legacy products have rallied in the past two weeks as rising bond yields and an improving economy have prompted investors to sell shares of faster-growing companies like Salesforce.com and buy more profitable ones like HP Inc.HP, Xerox Holdings Corp. and Oracle Corp. have all advanced more than 8% since Feb. 19, making them the best performers in the S&P 500 Information Technology Index. Salesforce, on the other hand, is the second-worst performer in the group with a decline of 16%. That trade was on display again Wednesday with the Nasdaq 100 Stock Index tumbling 2.9% while International Business Machines Corp. and Oracle advanced. The benchmark index is now trading at the lowest since Jan. 6.The rotation that’s taking place within the technology sector is a microcosm of what’s been playing out in the broader market for months as investors have poured money into smaller and cheaper companies that tend to outperform during economic recoveries.At the same time, higher Treasury yields make it harder to stomach paying up for companies whose abilities to generate comparable levels of profitability are uncertain or years in the future.“You don’t have to imagine everything going right for the Oracles of the world to make money,” said Kim Forrest, founder and chief investment officer at Bokeh Capital Partners. “They are making money now.”Morgan Stanley said earlier this week that investors should look for bargains within less-loved sectors like technology hardware rather than bet on a broad advance for U.S. stocks, which have already priced in much of the expectations for earnings expansion and economic growth in 2021.“With index level upside limited, we think stock selection offers better return prospects,” strategists led by Mike Wilson wrote in a research note. The bank’s top picks for hardware include ATM maker NCR Corp. and data-storage company NetApp Inc.With the yield on 10-year U.S. Treasuries flirting with 1.5% on Wednesday, software makers Twilio Inc. and Zoom Video Communications Inc. were among the biggest decliners, falling 7.6% and 8.4%, respectively. Twilio is priced at 26 times 2021 revenue projections, while Zoom trades at 26. Oracle, which rose 0.4% to a record of $66.91 on Wednesday, has a price to projected sales ratio of less than five times.Bill Stone, chief investment officer at Glenview Trust Co., is a fan of value stocks but warned of pitfalls if companies like HP aren’t able to maintain profitability.“The worry of course is that those legacy companies maybe don’t have as bright of a future,” he said. “It’s really a cash-flow play and you hope that they can keep the cash flow in the future.”(Updates shares beginning in third 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.
(Bloomberg) -- Apollo Global Management has obtained about $4 billion of debt commitments from banks to fund its leveraged buyout of crafting supplies retailer Michaels Cos., according to people with knowledge of the matter.A group led by Credit Suisse Group AG is expected to start marketing the debt to institutional investors as soon as next month, assuming that Apollo’s bid is successful, the people said, asking not to be identified because the details are private.The deal is one of only a few leveraged buyouts to materialize in the retail sector in recent years. Private equity firms have largely been reluctant to make big bets in an industry that has been upended by Amazon.com Inc. and, more recently, ravaged by the pandemic. The chain, however, has benefited from an increase in interest for arts and crafts among people stuck at home during the outbreak.Apollo will contribute over $1 billion of equity from its own funds to finance the rest of the purchase, which values the retail chain at about $5 billion, one of the people said. The firm has offered $22 a share to existing shareholders, valuing their stake at around $3.3 billion, the companies said in a statement on Wednesday.Read more: Apollo to acquire retailer Michaels for $3.3 billion in cash Representatives for Apollo and Credit Suisse declined to comment. A representative for Michaels didn’t immediately respond to a request for comment.Like many retail chains, Michaels has attracted attention from private equity before. Bain Capital Partners and Blackstone Group Inc. took the company private in 2006 during a wave of buyouts that also included Toys “R” Us Inc. and Neiman Marcus Group Inc. Michaels returned to the public market with an IPO in 2014.Financing will also be provided by Barclays Plc., Wells Fargo & Co., RBC Capital Markets, Deutsche Bank AG, Mizuho Financial Group Inc. and Bank of America Corp, the statement 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.
But while investors will be closely watching the Fed chief, due to speak Thursday at a Wall Street Journal conference, for any hints of concern about last week's jump in bond yields, they see a high bar for the U.S. central bank to actually take action. Thursday's event will be Powell's last outing before the Fed's policy-making committee convenes March 16-17. Swiber said of particular interest will be whether the Fed addresses short-dated yields nearing zero as yields at the long end spike.
E-logistics startups are positioning themselves to play a key role in Africa's new free-trade area, if governments allow them.
Gary Gensler, Biden’s pick to head the SEC, told Congress Tuesday that the “greater challenge” in bitcoin and cryptocurrencies is protecting investors.
A new compromise would make millions of Americans ineligible for the third checks.
(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.
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.
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.
(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.
36% of taxpayers said the Recovery Rebate Credit was the 'most confusing' part of taxes this year.
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).
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.
(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.
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.