Has the MBA lost its luster?
Has the MBA lost its luster?
(Bloomberg) -- Stellantis NV warned the global semiconductor shortage will deteriorate further from the first three months of the year, when the crunch curbed planned output by 11%.The company formed from the merger between Fiat Chrysler and PSA Group said things will get worse in the second quarter before showing some signs of improvement in the latter half of the year, according to an earnings statement Wednesday.Speaking on a call, Chief Financial Officer Richard Palmer cautioned that the effects could linger into 2022.“The visibility is still relatively limited,” Palmer said. “It would be imprudent to assume that the issue is just going to go away.”The chip shortage roiling carmakers around the world adds to challenges for Chief Executive Officer Carlos Tavares as he seeks to achieve billions of euros in savings from the tie-up between the two carmakers. Palmer said integrating the two companies remains on track, though it will take time to realize the full benefits of the combination.Stellantis rose as much as 1.4% to 14.10 euros in Paris. The stock has gained about 10% this year.First-quarter revenue increased 14% to 37 billion euros ($44.5 billion) on a pro-forma basis, while consolidated vehicle shipments on that basis rose 11% to about 1.57 million units. The semiconductor shortage clipped planned production by 190,000 units in the period amid rolling halts of some assembly lines, and Palmer said the hit will likely be more pronounced still in the second quarter.Industry FalloutIn response to the shortage, the automaker has standardized electronic components across its portfolio rather than using special versions on some models, according to Palmer. Eight of its 44 sites worldwide are currently affected, he said.Stellantis doesn’t report earnings on a quarterly basis. In Europe, BMW AG and Daimler AG have published better-than-expected results for the quarter, while Ford Motor Co. forecast a $2.5 billion hit to earnings from scarce chip supplies. Volkswagen AG reports earnings Thursday.Ford Chief Executive Officer Jim Farley said last week that the automaker expects to lose about 50% of planned second-quarter production, up from 17% in the first quarter, and that the issue could stretch into 2022.Renault SA has also predicted that the biggest hit on output would come this second quarter, with lingering effects spilling over to the following three months. The French company has made production of higher-margin cars a priority, something Stellantis is also doing.Stellantis maintained its outlook for adjusted operating income margin of 5.5% to 7.5%, up from 5.3% last year. About 80% of its targeted 5 billion euros in annual savings will be achieved by the end of 2024, the company has said.The manufacturer reiterated that it expects industry sales to grow by 10% in Europe this year and 8% in North America. The company said its new Jeep Grand Wagoneer and a next-generation Grand Cherokee remain on track for production late in the second and third quarters, respectively.(Adds stock reaction sixth paragraph, CFO comments from 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.
(Bloomberg) -- Mike Novogratz’s Galaxy Digital Holdings agreed to buy crypto custodian BitGo Inc. in a cash and stock transaction valued at about $1.2 billion.Galaxy is paying $265 million in cash and is issuing 33.8 million shares to finance the acquisition. BitGo shareholders will own 10% of the company. The deal broadens Galaxy’s offerings and geographic reach.“The acquisition of BitGo establishes Galaxy Digital as a one-stop-shop for institutions and significantly accelerates our mission to institutionalize digital asset ecosystems and blockchain technology,” Novogratz, Galaxy’s New York-based chief executive officer and founder, said in a statement.Cryptocurrency prime broker BitGo was founded in 2013 by Mike Belshe, an engineer who’s previously worked on Google’s Chrome. He’s joining Galaxy as deputy chief executive officer and will become a member of the company’s board of directors.“Joining Galaxy Digital represents an exciting new chapter for our business, as our current clients gain access to a wide set of financial solutions,” Belshe said in a release.BitGo, with over 400 institutional clients, has more than $40 billion in assets under custody and serves over 150 exchanges, according to a press release. The company processes roughly 30 billion transactions per month and supports the custody of more than 400 coins and tokens.It’s the second high-profile acquisition in the crypto space in recent days. Coinbase Global Inc., the newly public crypto firm, at the end of April acquired Skew, a data analytics and trade execution platform focused on cryptocurrency derivatives.The cryptosphere has grown in recent months as institutional and retail investors take a greater interest amid a red-hot rally in digital-asset prices. Bitcoin, the largest digital coin, has gained more than 500% over the past year. The Bloomberg Galaxy Crypto Index, which tracks multiple cryptocurrencies, is up near 800% over the same period.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) -- Saudi Arabia lowered oil prices for customers in its main market of Asia as a surge in coronavirus cases crimps demand in India, the world’s third-largest crude importer.The kingdom’s state energy firm, Saudi Aramco, reduced pricing for June shipments to the continent by between 10 and 30 cents per barrel.The key Arab Light grade for Asia was cut to $1.70 a barrel above the benchmark from $1.80 for May. That’s the first reduction in official selling prices for the grade since December, signaling weakness in Asian oil markets.The reductions had been anticipated in the market. Aramco had been expected to lower Arab Light’s premium by 20 cents, according to a Bloomberg survey of seven traders and refiners.Saudi Energy Minister Prince Abdulaziz bin Salman has urged fellow members of OPEC+ to be cautious as the group eases supply cuts started last year when the pandemic was hammering energy markets. The 23-nation cartel plans to increase daily output by just over 2 million barrels through to July, beginning with 600,000 this month. That would still leave production roughly 5 million barrels a day below pre-pandemic levels.Aramco raised pricing to the U.S. by 20 cents a barrel for all grades. The nation is adding jobs amid economic growth and a push for widespread vaccinations. The company cut pricing for all shipments to Northwestern Europe and the Mediterranean, where efforts to bolster the economy and ease lockdowns have met with mixed results.Brent crude has climbed almost 35% this year, closing in on $70 a barrel as vaccination rollouts enable the U.S., Europe and some other major economies to reopen. Aramco Chief Executive Officer Amin Nasser said on Tuesday he’s more optimistic about the outlook for oil.Still, the pandemic has rapidly worsened in India since the start of April. The country is now reporting around 400,000 cases every day.Most Middle Eastern countries set monthly prices as a premium or discount to a benchmark. Aramco’s OSPs serve as a bellwether for oil markets and often lead the pricing trend in the region. Abu Dhabi issued its first OSP based on trading in crude futures this month, a step in its efforts to establish its oil as the regional benchmark.(Updates with pricing for the U.S. and Europe in sixth 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.
Cathie Wood's ARK Innovation exchange-traded fund is significantly oversold and due for a bounce, but if it doesn't come the popular fund risks suffering a “waterfall” decline, says one chart watcher.
It appears that Shark Tank investor Kevin O’Leary no longer thinks bitcoin is “garbage.” The chairman of O’Shares ETF told Yahoo Finance Live that he’s allocated 3% of his portfolio to the world’s largest cryptocurrency after his native Canada, and a handful of other countries, eased restrictions on institutional buying of the asset.
The cryptocurrency that no one was meant to take seriously spiked to just under 70¢ before losing a little ground.
Since January, the price of Bitcoin has surged 89%. But another major cryptocurrency has posted even larger returns.
(Bloomberg) -- Investors are piling back into some of the fringe corners of the cryptocurrency world, with the frenzy sending Dogecoin surging more than 50% again and crashing Robinhood’s trading app.Other so-called altcoins also took off, with Dash spiking 18% over a 24-hour period through the European morning on Wednesday and Ethereum Classic rising almost 45%. In the world of DeFi, tokens such as Force DAO and Tierion surged more than 1,000% on Tuesday, according to CoinMarketCap.com data. Meanwhile, Robinhood said it resolved earlier issues with crypto trading on its platform.“You have money looking for a home and this is one of those areas of the market where there is speculation happening, there is significant appreciation happening in a short period of time,” said Chad Oviatt, director of investment management at Huntington Private Bank. “You get that excitement there.”The rallies defied easy explanation and continued a trend that’s seen the value of all digital tokens surge past $2.3 trillion. Doge, created as a joke in 2013, has been used in marketing gimmicks -- the latest by the Oakland A’s baseball team, which offered two seats to games this week for 100 Dogecoin. The Gemini crypto exchange backed by Tyler and Cameron Winklevoss said it now supports Doge, and will soon enable trading of it.Dogecoin’s red-hot advance from around 0.002 cents a year ago -- when it was worth about $300 million -- has captured the interest of many on Wall Street. It’s even caught the attention of the Federal Reserve -- the central bank’s chairman last week answered “some of the asset prices are high” when asked if things like GameStop Corp.’s and Dogecoin’s supercharged rallies created threats to financial stability.As a sign of Dogecoin’s rising popularity, the Robinhood app is among the top 10 downloads at the Apple App Store. Meanwhile, Coinbase Global, the largest U.S. crypto exchange -- which doesn’t offer Doge trading -- saw its shares fall 4.6% Tuesday, its lowest close since its market debut last month.“It’s pretty amazing that something that started out as a joke has become so popular,” said Matt Maley, chief market strategist for Miller Tabak + Co.Though interest in digital assets has picked up in recent months as more traditional firms who were long hesitant to the crypto space warm up to cryptocurrencies, it’s alternative coins that have captured the most attention in recent days. Bitcoin has taken a backseat following record-setting rallies from Ether and Doge, wrote Edward Moya, senior market analyst at Oanda.“The Dogecoin bubble should have popped by now, but institutional interest is trying to take advantage of this momentum and that could support another push higher,” he said in a note. “Dogecoin is surging because many cryptocurrency traders do not want to miss out on any buzz that stems from Elon Musk’s hosting of Saturday Night Live.”Elsewhere, a new Ether ETF trading in Canada called the CI Galaxy Ethereum ETF (ETHX) broke its record volume on Tuesday. It’s up more than 20% in the first two days of the week.Bitcoin rose modestly on Wednesday, snapping a three-day losing streak. It was up 0.8% to $55,213 as of 9:29 a.m. in London on Wednesday.Meanwhile, many -- including famed crypto investor Mike Novogratz -- have warned that the rallies could be unsustainable. Novogratz, chief executive officer of Galaxy Digital Holdings, said recently he’d be “very, very worried” were one of his friends to invest in Doge.“It seems that investors are careening from one hot dot to another, like a pinball game,” said Mike Bailey, director of research at FBB Capital Partners. “My sense is this speculative wave will suffer the same fate as the GME and other Robinhood ‘flash-in-the-pan’ stocks. Cryptocurrencies may have become a new asset class, like precious metals, but surges such as these seem unsustainable.”(Updates prices throughout.)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.
A year into the pandemic, some homeowners say loan servicers aren't giving them clear information about mortgage forbearance.
Wealthy investor Mike Novogratz says that the run-up in dogecoin is a reflection of the disenchantment of younger investors in the current state of financial markets and the economy and cautioned that trying to bet on the parody coin at these current levels is dangerous.
(Reuters) -Shares of Hollywood star Jessica Alba's Honest Co traded sharply higher on their Nasdaq debut on Wednesday, valuing the consumer goods company at around $2 billion. Alba's 6.1% stake in the company is now worth $124 million. "This is an incredible jump off into building a company that I hope will be around for 100-plus years," Alba, the company's co-founder and chief creative officer, said in an interview.
Though mortgage rates are at their lowest levels in months, refinance activity is quieter.
Caesars Entertainment Inc. shares spiked in after-hours trading Tuesday after the casino company revealed another big loss in the first quarter, but outlined a strong rebound in the works in Las Vegas.
The trading app experienced issues with crypto trading, and users are furious.
(Bloomberg) -- Jeff Bezos sold about $2.5 billion of Amazon.com Inc. stock, his first big disposal this year after offloading more than $10 billion worth of shares in 2020.Bezos sold around 739,000 shares this week under a pre-arranged trading plan, according to U.S. Securities and Exchange Commission filings. He plans to sell as many as 2 million shares, according to a separate filing.The world’s richest person continues to hold more than 10% of Amazon.com, the primary source of his $191.3 billion fortune, according to the Bloomberg Billionaires Index. In the 15 years after Amazon.com went public in 1997, Bezos sold about a fifth of the online retailer for roughly $2 billion. The value of his stake has ballooned in recent years to such an extent that he can now sell relatively small amounts for billions of dollars.Amazon stock is little changed this year after rallying 76% in 2020 as the Covid-19 pandemic kept people away from physical stores and encouraged online shopping.The Amazon founder has used stock sales to fund rocket company Blue Origin, while he’s committed $10 billion to the “Bezos Earth Fund” to help counter the effects of climate change.The rocket maker said Wednesday it has set July 20 for its first mission carrying people to space and plans to auction off one seat on its New Shepard rocket.Bezos would be far richer if it weren’t for his divorce from MacKenzie Scott. She received a 4% stake in Amazon as part of the split and quickly became one of the world’s most important philanthropists.(Updates with Blue Origin plans 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.
Prices are on the rise, but there are ways you can lessen the impact on your wallet.
The housing market is red hot at the moment, with the Case-Shiller index soaring. But Morgan Stanley has some good reasons why the current situation isn't a bubble.
In July, the IRS will begin sending monthly payments of $250 or $300 to low- and moderate-income families who qualify for the child tax credit.
In one of the more light-hearted moments of Berkshire Hathaway's annual shareholders meeting on Saturday, Ajit Jain, vice chairman of Insurance Operations, was asked if he'd be willing to underwrite the insurance to cover Elon Musk's SpaceX mission to Mars, assuming Musk asked.
Dogecoin managed to settle above $0.60 and made an attempt to settle above $0.70.