China’s economy is being slammed by the coronavirus outbreak even though signs indicate that the spread may now be easing in China. Eurasia Group Allison Sherlock joins The Final Round to discuss.
China’s economy is being slammed by the coronavirus outbreak even though signs indicate that the spread may now be easing in China. Eurasia Group Allison Sherlock joins The Final Round to discuss.
“What saddens me is the way the weak hands and recent buyers see Elon Musk as a prophet, powerhouse and decisive figure in bitcoin,” said one trader.
(Reuters) -Wall Street is expecting Canadian Pacific to raise its offer for Kansas City Southern even at the cost of more debt to win the bidding war with larger Canadian railroad rival Canadian National. In the latest twist to the takeover saga, the U.S. railroad operator on Thursday accepted Canadian National's $33.6 billion offer, leaving Canadian Pacific just five business days to make a new offer. Analysts said Canadian Pacific was unlikely to let go a chance to be the first railway spanning the United States, Mexico and Canada easily even though it had said it would not leverage its books to outbid Canadian National.
(Bloomberg) -- The Bank of Japan, which has helped to prop up the country’s equity market for over a decade, refrained from buying stock funds this week despite the Topix index posting its biggest three-day loss since June. That’s left some investors a little baffled.When local shares were trading at multi-year highs earlier in 2021, the central bank scrapped an annual 6 trillion yen ($54.8 billion) target for purchases of exchange-traded funds, highlighting instead that it would prefer to buy “during times of heightened market instability.”Yet the central bank didn’t buy stock funds in the three days through Thursday despite sizable market drops, and has bought only once since the start of April, when the changes it made to its stock-buying program came into effect.Asked at a parliamentary committee meeting on Thursday why the BOJ had not bought not despite the declines, Governor Haruhiko Kuroda was equivocal.“We’re not making purchases under any automatic rules, we just look at the state and movements of the market and make a practical decision,” Kuroda said. “It could have an unforeseen impact on the market to say that in a certain situation we will take a certain action.”Kuroda said that the bank would continue to make “bold” ETF purchases as necessary. But the central bank’s absence is forcing some to reevaluate their expectations.“It’s going to be negative for equities in the near term,” said Hajime Sakai, chief fund manager at Mito Securities Co. “It seems like it’s better not to bet on BOJ ETF purchases.”Sakai is among those who say they’re unsure of what the current trigger is for the BOJ to buy ETFs. While the central bank has never made those conditions explicit, a decline in the Topix of 0.5% during the morning session was at one point seen to trigger purchases. Sakai said he was unsure if the current trigger is a 2% decline, or a two-day drop of a certain extent.With the BOJ buying ETFs on April 21, when the Topix fell 2.2% in the morning, but not on May 11 when the index slid just shy of that, a 2% drop might seem like a candidate. But declines of that magnitude are rare, with Topix falling that much in the morning only twice in the past 12 months.The pain is all the sharper for the Nikkei 225, with the BOJ ending its purchases of ETFs tracking the index in April. The gauge lost 7% in the three days through Thursday, giving up almost all its 2021 gains. Stocks rebounded on Friday, with the Nikkei adding 1.6% and the Topix 1.3%.Read more: BOJ’s Snub of Nikkei 225 May Spell Pain for Venerable GaugeAs the rebound suggests, the long-term impact of the BOJ’s absence may not be so dramatic. Some doubt how impactful the decade-long buying program has been in the first place.“I think the evidence is that, their buying has done very little,” said Nicholas Smith, a strategist at CLSA Securities Japan Co.Sakai argues that over the long term, the market will get used to the new normal. “From a medium to long term perspective, it’s not something to worry too much about,” he said.(Updates with quote in 13th 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) -- The U.K. is set to start its own carbon market with the aim of putting a price on polluting that it hopes will help achieve the country’s ambitious climate goals.The first auction of emission permits on May 19 is the latest test of how the country copes with the separation from the European Union, its largest trading partner.Until January, Britain was part of the EU’s emissions trading system, the world’s largest cap-and-trade program and the centerpiece of the bloc’s efforts to limit climate change. By going it alone, the U.K. is forgoing a 16-year-old market that helped cut EU emissions by almost a quarter in the past two decades.The U.K. auction will be keenly watched to see how close prices will be to those in Europe, where emission costs have doubled in the past six months to a record. Too high a price could tilt the economic playing field against U.K. companies by overburdening them with permit costs, while one too low diminishes the incentive to invest in low-carbon technology.While the U.K. market was designed to be almost exactly like the EU system, there are a few key differences.The main one is that it’s much smaller. That means there are far fewer industrial and power-sector emissions that need permits. The U.K. is set to auction about 83 million permits this year, compared to more than 700 million for the EU.It’s an issue market participants are concerned about. Earlier this year representatives from industry groups in the U.K. and Europe wrote to Prime Minister Boris Johnson to urge him to link the carbon trading system with the larger EU system. That would mean permits from both the U.K. and EU could be used to account for emissions in either.The smaller market size also raises the risk of bigger price swings. An emissions trading system is meant to give businesses an indication of when is a good time to invest in lower-carbon alternatives. A high degree of volatility could hurt confidence that the emissions price is a reliable figure.“It’s an emissions trading system for a very small market, which makes no sense,” said Jan Ahrens, head of research at SparkChange, a platform to facilitate investments in carbon markets. “That has the risk of having high price volatility.”Volatility and a surging price could also be affected by how much financial players buy into the market. Demand from investment funds helped drive the gains in the EU carbon price this year. Ahrens said the investors he works with are eager to buy British carbon.So how much will emissions cost in the U.K.? The main indicator is the EU carbon price, which has gained more than 70% this year to a peak of 56.90 euros per metric ton, or 49.01 pounds, on Friday.The U.K. market is set to be oversupplied from the outset, a bearish indicator for prices. The cap for total emissions is about 156 million tons, compared with about 97 million tons of actual emissions estimated by BloombergNEF. That surplus is intentional, allowing market participants to accumulate permits to hedge for future years. The cap will likely be revised in the coming years to shrink with the U.K.’s plans to rapidly cut emissions this decade.There is also a safety net built into the British system. Unlike the EU, the U.K. has a price floor so that permits can’t be auctioned below 22 pounds. But similar to the EU, there’s a mechanism for the government to add permits to the market if prices rise too far, too fast.U.K. Plans Deeper Carbon Cuts to Spur Climate Change FightIt’s a part of the U.K.’s effort to ensure that the system works as planned, that companies that need permits can get them and that prices don’t bounce around too much after the market’s launch.“This is the first year, so they want to make sure the market is effective,” said Bo Qin, analyst at BloombergNEF. “Not too high, not too low,”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) -- U.S. retail sales stalled in April following a sharp advance in the prior month when pandemic-relief checks provided millions of Americans with increased spending power.The value of overall retail purchases were essentially unchanged last month following an upwardly revised 10.7% gain in March that was the second-largest in records back to 1992, Commerce Department figures showed Friday. The median estimate in a Bloomberg survey of economists called for a 1% April gain.The total value of retail sales was a record $619.9 billion in April, supporting economists’ forecasts for strong household spending for the remainder of the year.While consumers may begin shift more of their spending money to services such as entertainment and travel as pandemic fears dissipate, elevated savings supported by fiscal stimulus should underpin retail demand.“American shoppers took a breather in April after splurging earlier this year after two rounds of big stimulus payments,” Sal Guatieri, senior economist at BMO Capital Markets, said in a note. “But with more than half of the states now fully open for business and more quickly advancing their schedules, shoppers won’t be staying home for long.”Clothing, RestaurantsEight of 13 retail categories registered declines in April sales, with the largest percentage decrease at clothing stores. Purchases at restaurants and auto dealers increased.U.S. stocks rose and Treasury yields declined in early trading Friday.Sales at motor vehicle and parts dealers climbed 2.9% in April, even as automakers faced production constraints due to the global semiconductor shortage.So-called control group sales, which exclude more volatile categories including food services, car dealers, and gasoline stations, dropped 1.5% in April after an upwardly revised 7.6% jump in March.The value of restaurant receipts rose 3% after a 13.5% March gain as states across the country eased restrictions on indoor dining capacity.Digging DeeperClothing-store sales dropped 5.1% after a 22.7% surgeSales at non-store retailers, which include e-commerce, fell 0.6% in AprilGeneral merchandise store sales fell 4.9% and the value of purchases at sporting goods outlets dropped 3.6%Gas station receipts decreased 1.1%. The retail figures aren’t adjusted for price changes, so sales reflect both changes in costs and demand.A separate report Friday showed that U.S. manufacturing output rose in April by slightly more than expected, suggesting further improvement for factories that are otherwise buffeted by supply shortages and shipping challenges.Read More: U.S. Manufacturing Output Increased 0.4% in April(Updates with markets and economist reaction.)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) -- Stocks exposed to cryptocurrencies slumped around the world after Elon Musk voiced concerns over Bitcoin’s energy usage, delivering a blow to the digital asset’s standing within global markets just a few months after the billionaire CEO of Tesla Inc. became one of its biggest supporters.Crypto shares from the U.S. to Asia slid as Bitcoin plunged as much as 15%, sinking to a low of $46,045 before trimming the decline. Musk said he was worried over the “rapidly increasing” use of fossil fuels for Bitcoin mining and transactions, and suspended Tesla purchases with the asset, indicating he might favor other cryptocurrencies that don’t use as much energy.Digital asset technology company Marathon Digital Holdings Inc. fell 14% to the lowest since Jan. 27, as peer Riot Blockchain Inc. tumbled 16%, while Microstrategy Inc., which has put billions of dollars into Bitcoin, sank 9.9% Thursday. Coinbase Global Inc., which runs the largest U.S. cryptocurrency exchange, dropped as much as 6.5% in late trading after quarterly results, adding to its largest ever decline on Thursday.A “shocker from Musk,” Daniel Ives, an analyst at Wedbush Securities, wrote in a note to clients. “The nature of Bitcoin mining has not changed in the last three months, which speaks to why backtracking on the crypto transaction three months later is a very surprising and confusing move to both Tesla and crypto investors.”Worries deepened after a Bloomberg News report that Binance Holdings Ltd. is under investigation by the Justice Department and Internal Revenue Service. Officials who probe money laundering and tax offenses have sought information from individuals with insight into Binance’s business, according to people with knowledge of the matterTesla announced in February that it had invested $1.5 billion in Bitcoin and signaled an intent to begin accepting the cryptocurrency as a form of payment.In Asia, Monex Group Inc., whose ownership of crypto exchange Coincheck Inc. had made it the second-best performing stock in Japan in 2021, dropped 11%. Nexon Co., which just last month became the first Japanese firm to make a significant bet with a $100 million purchase of the cryptocurrency, slumped 14%, the most since August 2019, though a poor growth outlook given at its earnings also weighed on sentiment.In Europe, crypto-miner Argo Blockchain Plc slid 6.9%, blockchain technology firm On-Line Blockchain Plc lost 9.8% and crypto infrastructure group Northern Data AG dropped 5.8% to its lowest level since Feb. 1.Tesla SlipsTesla’s own shares fell 3.1%, its eighth decline in nine days, adding to a roughly 30% slide since the company announced the Bitcoin investment in February. After last year’s huge rally, the stock has suffered from lofty trader expectations despite posting a record quarterly profit last month. It’s also been among the stocks hit by this week’s selling in tech equities, with concerns around rising inflation fueling fears of higher interest rates.“Not accepting Bitcoin does not change the thesis or growth trajectory for the electric vehicle story, however it does add to the noise and volatility around the name at a time in which risk assets are under enormous selling pressure,” added Wedbush’s Ives.Musk said in his post that Tesla wouldn’t be selling any Bitcoin and aimed to use it for transactions once mining shifted to a more sustainable energy. “We believe it has a promising future,” he wrote, “but this cannot come at great cost to the environment.”That puts Musk at odds with ARK Investment Management LLC’s Cathie Wood, who last month shared research that she said would “debunk the myth that Bitcoin mining” is bad for the environment. Wood’s Ark Innovation ETF, which has been having a miserable month and has Coinbase as its ninth-largest holding, rose 2.2% after closing at the lowest level since November on Wednesday.Bitcoin was down 10% to $48,903 at 4:09 p.m. in New York.(Updates shares with closing prices, Binance probe in fifth 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.
The IRS detailed on how it will handle a mixup involving a tax break for jobless benefits that became law a month after many already filed returns.
Two of the world's most prominent billionaires Tesla Inc.'s CEO Elon Musk and Jack Dorsey are facing off over the merits of bitcoin, with the future of the world's No. 1 crypto likely hanging in the balance.
Your stocks to watch for the week ahead include Dow Jones stocks JPMorgan Chase, Goldman Sachs and Caterpillar. All are just above or below buy points.
With the right asset allocation and withdrawal strategy, investors may not worry so much about the large sum of money in their accounts.
Last week, we witnessed a classic “buy the rumor, sell the news” event with the cryptocurrency Dogecoin (CRYPTO:DOGE). Many Dogecoin enthusiasts were hoping that Tesla (NASDAQ: TSLA) CEO Elon Musk’s stint hosting the television show “Saturday Night Live” would lead to higher prices. After all, Musk has been known to pump the price of this cryptocurrency on Twitter and has been one of its biggest supporters. With so many Dogecoin holders anxious to see what the Dogefather had to say Saturday, the price of cryptocurrency rallied hard into the event to hit a record high of $0.74. Unfortunately, Doge investors learned that sometimes these types of events simply cannot live up to the hype. The price of Doge dropped more than 30% following the premiere of the show after Musk failed to deliver the praise for the cryptocurrency investors were hoping for. Traders can learn a lot from this story, particularly since this “buy the rumor, sell the news” scenario repeats itself time and time again in financial markets. It highlights just how difficult it can be to trade based on the news and should be viewed as a cautionary tale. With that said, perhaps the most important lesson here is that instead of gambling on Dogecoin, why not learn a trading strategy that can deliver real results? For example, Mindful Trader has created a data-driven swing-trading strategy that can potentially help you grow your account. Because he has analyzed and dissected historical stock market price data to test his trading strategy, you won’t have to worry about trying to guess right on binary events like the one mentioned above. Instead, you can use a statistical approach with proven results to take your trading to the next level. Signing up for the Mindful Trader service gives you access to tutorials and all the trading rules he uses for successfully generating returns with stocks and options trading. He also provides data-driven stock picks that he trades himself, which allows you to learn while following his suggestions. Whether you are a beginner trader or a seasoned veteran, Mindful Trader has something for everyone. Since Mindful Trader uses a swing-trading strategy that relies on price movement, not hope, you will always be confident in making a trade. That means you won’t have to trade the news and rely on hype to potentially generate returns like those unfortunate Dogecoin investors mentioned above. Check out this link to learn more about Mindful Trader’s trading strategy and why it’s such a smart alternative to gambling with Dogecoin. See more from BenzingaClick here for options trades from BenzingaThese OTC Securities Had the Most Trading Activity in April3 Advantages to Binary Options Trading with Nadex© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
The agency is plagued with setbacks that are causing a major backlog of returns.
Here's how to tell if dogecoin's rebound is more bark than bite, according to technical analysts following the popular crypto.
Institutional investors do not take kindly to inflation and they sold. 1. If indexes fall below their moving averages, take action: Traders and investors alike should watch moving averages, especially the 50-, 100-, and 200-day. When the indexes were sliding a few days ago, the S&P 500 (SPX) for example, did not break its 50-day moving average at 4050.
Anyone with a stock account can now make a savvy, albeit risky, bet on GBTC pricing disparities that were previously exclusive to big players.
Dogecoin will likely transition from a proof-of-work protocol to proof-of-stake, speculated Alex Mashinsky, the chief executive and founder of The Celsius Network on Friday during a webcast hosted by his lending platform on YouTube.
Lawmakers are looking for quick action to improve an existing forgiveness program.
(Bloomberg) -- Stock sales are reaping a windfall for the world’s richest shareholders.Corporate insiders including Amazon.com’s Jeff Bezos and Google co-founder Sergey Brin have ramped up stock sales recently, cashing in on a 14-month long bull market that’s helped boost fortunes to the tune of trillions.U.S. public company insiders offloaded shares worth $24.4 billion this year through the first week of May, with about half sold through trading plans, according to data compiled by Bloomberg. That’s almost as much as the $30 billion total they disposed of in the second half of 2020.Large shareholders frequently sell stock in planned intervals, often through pre-arranged trading programs. Yet the prolonged rally in equities markets has made the value of these disposals, whether planned or opportunistic, strikingly high.There are multiple reasons an investor of any size might be motivated to sell. After the pandemic-defying rally, valuations are increasingly under pressure from rising inflation. Investors are wary the post-Covid recovery could prompt tightening measures from the Federal Reserve. And President Joe Biden’s proposed tax hikes -- including a near doubling of the capital gains rate -- have created uncertainty.Bezos, EllisonWhatever the reason, the sales are flooding the market with yet more liquidity, the consequences of which will ripple through philanthropy, the art market, real estate and other niches.Bezos has sold $6.7 billion worth of Amazon shares this year. While a relative pittance for the world’s richest person, it’s more than two-thirds the value of shares he sold in 2020. Larry Ellison unloaded 7 million Oracle shares in the past week for total proceeds of $552.3 million. Charles Schwab has sold $192 million worth of shares of his eponymous brokerage this year.Brin, who has signaled that he intends to sell as many as 250,000 Alphabet Inc. shares, has disposed of $163 million worth of stock in recent days, his first sales in more than four years, filings show.Mark Zuckerberg and his charitable foundation, the Chan Zuckerberg Initiative, meanwhile, accelerated their sales of Facebook stock in the fall. Zuckerberg or his charity has divested shares at a near-daily clip since November, for a cumulative total exceeding $1.87 billion.The surging markets have exacerbated the concentration risk of the single-stock-dominated fortunes typical of many tech billionaires, said Thorne Perkin, president of Papamarkou Wellner Asset Management.“From a portfolio-management perspective, it makes sense to spread it around,” he said.Covid EconomyAlso among the biggest sellers are some noteworthy beneficiaries of the Covid economy. Zoom Video Communications founder Eric Yuan and used-car retailer Carvana Co.’s Ernest Garcia II have together received more than $1.75 billion from stock sales since March 2020, according to the Bloomberg Billionaires Index. George Kurtz, chief executive officer of cybersecurity firm CrowdStrike, has sold shares worth at least $250 million over that period.Zoom founder Yuan -- the poster child, in many ways, for the coronavirus economy -- has stepped up his sales this year as the firm’s share price slumped. In 2020, he typically offloaded about 140,000 shares a month through a trading plan, which generated more than $350 million over the course of the year.Since March, he’s sold almost 200,000 shares a month on average, yielding him about $185 million. He also donated more than a third of his stake in the San Jose-based company as part of “typical estate planning practices,” according to a spokesman. Some of the cash from his share sales fund donations to unspecified “humanitarian causes.”(Updates with Charles Schwab’s sales in seventh 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.
Shares of Plug Power Inc. surged Friday, after they hydrogen and fuel cell systems company completed its restatement, removing a "shroud of uncertainty" that has been weighing heavily on the stock the past couple months.
(Bloomberg) -- Fuel that is so dirty that the global shipping industry banned its use last year is being burned at the highest level in three years in Mexican power plants.With the global shipping industry shunning sulfurous fuel oil to curb emissions, storage tanks in Mexico are overflowing with the stuff, a byproduct of its attempt to produce more gasoline domestically. The solution Mexico has chosen is to push more of it into electricity generation, replacing cleaner-burning natural gas. Consumption of the dirty fuel jumped by almost 50% in the past year to more than a 100,000 barrels a day in March, according to government data.The capital’s air quality has worsened, said Beatriz Olivera Villa, a consultant with Greenpeace in Mexico, in a phone interview from Mexico City. “It’s an unfortunate setback for the country.”Replacing natural gas, which it imports from the U.S., with fuel oil is certain to raise Mexico’s emissions. President Andres Manuel Lopez Obrador has pledged to reduce Mexico’s dependence on fuel imports but is faced with highly inefficient refineries. Historically, it’s been cheaper for Mexico to export the crude it produces to countries with more technologically complex refineries and to import refined fuels like gasoline.State oil company Petroleos Mexicanos produces copious amounts of fuel oil unintentionally because its refineries lack the technology to extract cleaner fuels from the sludge that is leftover during the initial process of turning crude into gasoline. Therefore, the more gasoline the country’s refineries produce, the more extra fuel oil they have to find a home for.“Mexico is creating a market to absorb the excess fuel oil from its refineries,” said Ixchel Castro, an analyst with Wood Mackenzie Ltd.Fuel oil is being burned at the six power plants owned by state utility Comision Federal de Electricidad, or CFE. This year, a government commission responsible for monitoring air quality in the metropolitan area of Mexico City, sounded the alarm twice amid high ozone levels. As a result, cement-makers as well as Pemex’s refinery in Tula and its associated power plant, had to reduce activity.Switching a power plant that uses natural gas to fire a turbine to fuel oil generates 16% more carbon dioxide, according to BloombergNEF calculations.The air-quality monitoring commission estimates the alarm for high ozone levels may sound 7-20 times this year, forcing industries to curtail activity to curb emissions. That compares with one time last year and six times in 2019. Victor Hugo Paramo Figueroa, head of the commission, said the increased use of fuel oil alone doesn’t necessarily translate into more emissions.“We have other culprits, including cars and even an eruption of the Popocatépetl volcano,” he said. “And a rainier season can disperse particles more efficiently, keeping the air quality within acceptable levels.”(Updates with ozone levels and government’s comment in last four paragraphs.)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.