Fox News Senior Strategic Analyst and Ret. Gen. Jack Keane discusses China’s hypersonic missile and possible denuclearization talks with North Korea.
Fox News Senior Strategic Analyst and Ret. Gen. Jack Keane discusses China’s hypersonic missile and possible denuclearization talks with North Korea.
(Bloomberg) -- Volatility gripped financial markets as a rout in some of the largest tech companies dragged down stocks. The dollar rose.Megacaps such Apple Inc., Tesla Inc. and Amazon.com Inc. sent the Nasdaq 100 slumping, while the S&P 500 pared losses amid gains in commodity, financial and industrial shares. Treasury Secretary Janet Yellen rattled markets with a comment economists regarded as self evident -- that rates will likely rise as government spending ramps up and the economy responds with faster growth. Later in the day, Yellen said she wasn’t predicting or recommending rate hikes.The debate on whether government spending could boost inflation comes at a time when stock valuations are hovering near the highest levels in two decades. Hedge funds have been bailing from equities at a pace not seen since the financial crisis, while shares have struggled to gain traction despite blowout corporate earnings.“We’ve had this spectacular run-up, and I think we’ve seen momentum just run out of steam,” said Fiona Cincotta, senior financial markets analyst at City Index. “Despite earnings being encouraging, they haven’t managed to push those indices higher. Moving out of growth and into cyclicals is the place we’re going to have more movement.”Earlier Tuesday, a sharp drop in equity futures left traders scrambling for an explanation. Some of them speculated on military tensions between China and Taiwan, Singapore’s tougher coronavirus restrictions and Ferrari NV’s decision to postpone financial targets.Investors also monitored the latest economic readings, with the U.S. trade deficit widening to a new record in March. Meanwhile, a senior White House economic aide demurred on the question of whether President Joe Biden will nominate Fed Chair Jerome Powell for a second four-year term, saying the decision on selecting the next central bank chief will come after a thorough “process.”Here are some key events to watch this week:U.S. ADP employment change is due WednesdayChicago Fed President Charles Evans gives a virtual speech at an event hosted by Bard College on Wednesday. Cleveland Fed President Loretta Mester gives a virtual speech to the Boston Economic ClubBank of England rate decision ThursdayThe April U.S. employment report is released on FridayThese are some of the main moves in markets:StocksThe S&P 500 fell 0.7% as of 4 p.m. New York timeThe Nasdaq 100 fell 1.85%The Dow Jones Industrial Average was little changedThe MSCI World index fell 0.8%CurrenciesThe Bloomberg Dollar Spot Index rose 0.3%The euro fell 0.4% to $1.2017The British pound fell 0.2% to $1.3887The Japanese yen fell 0.2% to 109.29 per dollarBondsThe yield on 10-year Treasuries declined one basis point to 1.58%Germany’s 10-year yield declined three basis points to -0.24%Britain’s 10-year yield declined five basis points to 0.79%CommoditiesWest Texas Intermediate crude rose 2.3% to $66 a barrelGold futures fell 0.7% to $1,779 an ounceFor 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.
TAIPEI (Reuters) -Taiwan's Foxconn said on Wednesday it has formed a joint venture with Yageo Corp to expand its presence in the semiconductor industry, as a global chip shortage rattles producers of goods from cars to electronics. The supply bottleneck has led to production cuts and warnings of supply chain disruption from manufacturers across the world this year. Electronics manufacturing conglomerate Foxconn, which counts tech giants such as Apple among its top clients, said in a statement the two companies will set up a new firm in Taiwan called XSemi Corporation.
Stock indexes mostly rose globally on Wednesday, although the Nasdaq ended lower for the second day, while the U.S. dollar eased off its highest in more than two weeks. The Dow hit a record high and the S&P 500 ended up slightly, supported by gains in energy and other economically sensitive sectors including materials and financials. Tony Rodriguez, head of fixed income strategy at Nuveen, said it was possible Treasuries could move if the data varies much from forecasts.
(Bloomberg) -- Lyft Inc., reporting quarterly results, said ride demand is rebounding as more people get vaccinated, and the company still expects to earn an adjusted profit by fall.The San Francisco-based ride-hailing company reported adjusted losses before tax, depreciation and other expenses of $73 million in the first quarter, narrower than the same period last year and beating analyst estimates, on average, of $143 million.Lyft shares gained about 5% in extended trading Tuesday after closing at $56.19 in New York. The stock has jumped 14% this year.Revenue declined 36% to $609 million from a year earlier -- before Lyft felt the brunt of the pandemic -- but was up 7% from the previous quarter, the company said Tuesday in a statement. Analysts projected $557 million, according to data compiled by Bloomberg.“We had an extremely strong quarter,” Lyft Co-founder and President John Zimmer told Bloomberg. “We’re going to emerge on the other side of this pandemic stronger, leaner and more profitable than we were going in.” Zimmer also reiterated that the company was on track to become profitable by the third quarter.On a call with investors Tuesday, Lyft executives said airport rides were up 65% in April compared with January numbers, influenced by the Centers for Disease Control and Prevention relaxing travel warnings for vaccinated people.The executives also said the company will have to spend more to recruit new drivers during the current three-month period, but that supply and demand should even out by the third quarter -- thanks to increased vaccination rates, decreased demand for delivery services and the expiration of unemployment benefits for drivers who stayed home during the pandemic.Reduced travel demand during the pandemic hit Lyft especially hard. Unlike its larger rival, Uber Technologies Inc., Lyft doesn’t operate a food delivery service or offer rides outside of North America. As the virus spread and ridership cratered last year, Lyft began laying off employees and cutting costs, stripping out $360 million of annualized expenses in 2020.Lyft said last month it would cut another $100 million of annual operating expenses with the sale of its self-driving division to a subsidiary of Toyota Motor Corp. The sale of the unit allowed the company to push up the time line for turning a profit to the third quarter, instead of the end of the year.The company said Tuesday it had 13.5 million active riders, compared with 12.7 million expected by Wall Street. Revenue per active rider was to $45.13, compared with $43.88 expected by analysts.Despite the pandemic receding, some worries remain for the company. The Biden administration is considering David Weil, the former administrator of the Wage and Hour Division of the U.S. Department of Labor under the Obama administration, for the same job in the new administration, according to reports late last month. Weil has a history of criticizing gig economy companies like Uber and Lyft for not classifying their workers as employees, and his appointment could mean regulatory hurdles for the companies.“It really ups the ante in terms of risks to their model,” said Daniel Morgan, senior portfolio manager at Synovus Trust Co., which owns shares of Lyft and Uber. “It’s really a dark cloud looming over both these companies.”(Adds Lyft executive comments starting in the 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.
A U.S. court could order the Dakota Access Pipeline (DAPL) shut in coming weeks, disrupting deliveries of crude oil, and making nearby rail traffic more congested. WHAT IS DAPL? The 570,000-barrel-per-day (bpd) Dakota Access pipeline, or DAPL, is the largest oil pipeline out of the Bakken shale basin and has been locked in a legal battle with Native American tribes over whether the line can stay open after a judge scrapped a key environmental permit last year.
More returns need additional review due to things like the recovery rebate credit.
(Bloomberg) -- Uber Technologies Inc. said spending on recruiting drivers will impact earnings in the second quarter, placing another hurdle in front of the company’s goal to reach profitability by the end of the year.Bonuses and other incentives to get drivers back on the road will reduce the rate Uber takes from fares by about 20% this quarter, the company said in a conference call with analysts Wednesday.The disclosure, along with a decline in first-quarter revenue, sent the stock tumbling more than 4% in extended trading.Uber Chief Executive Officer Dara Khosrowshahi reaffirmed his commitment to turn a quarterly adjusted profit by the end of the year. And the first-quarter results showed otherwise strong growth of 24% in gross bookings, driven by the delivery business. The total value of customer spending on Uber reached $19.54 billion, exceeding an average of analysts’ estimates compiled by Bloomberg.The ride-hailing and delivery company narrowed its adjusted loss, Uber said in a statement Wednesday. It was $359 million before interest, tax and other expenses, easily beating analysts’ estimates. The loss was 6 cents a share.The company trimmed costs considerably in the coronavirus pandemic. It cut staff and sold businesses, including a pricey, years-long effort to develop self-driving car technology.Now Uber is searching for new ways to get people into the back seats of its cars. It added a new feature to the app a week ago for booking vaccine appointments and transportation to a nearby Walgreens and back. Gross bookings from the mobility business were $6.8 billion in the first quarter, more than analysts expected.Making customers comfortable with riding in strangers’ cars is only one part of the equation. Many drivers switched to other jobs or stayed at home when the coronavirus wiped out ride-hailing demand. The company is trying to draw drivers back. Uber said last month it would spend $250 million on bonuses and other incentives. It said Wednesday that the program contributed to increased costs in the first quarter.Lyft Inc., the main alternative to Uber in the U.S., reported financial results Tuesday. The company said ridership demand rebounded from the prior quarter and that its loss narrowed.Almost as much as the pandemic wounded the rides business, it was a catalyst for Uber’s delivery operation. The company quickly expanded from meals to booze, groceries, packages and prescriptions. On Tuesday, Uber said it will add convenience store items for delivery from GoPuff, a fast-growing startup.“We believe consumer behavior around delivery is likely to prove sticky as Uber Eats offers a better product today than pre-pandemic,” wrote Ron Josey, equity research analyst at JMP Securities, in a note to clients.Delivery revenue rose another 28% from the prior quarter to $1.7 billion. That’s more than triple what it was a year ago.However, Uber’s financial results were impacted by a landmark ruling in the U.K. The company agreed to grant some government-mandated benefits to its drivers, resulting in a $600 million expense, which weighed on revenue and added to its loss. Sales fell 11% to $2.9 billion. Excluding that cost, revenue grew 8%.The driver reclassification in the U.K. serves as a reminder of a severe risk facing Uber’s business. Making drivers eligible for employment benefits is expensive. The company won a reprieve from voters in California in the November election, but it faces many similar battles across the U.S. and around the world.Another front in Uber’s regulatory battles is over the fees delivery apps charge to restaurants. Major cities imposed caps on those fees during the pandemic, and some are debating permanent action. “There is a looming cloud on food delivery,” wrote Tom White, an analyst at DA Davidson & Co. “Pre-pandemic there was virtually no oversight.”Meanwhile, Uber still needs to draw customers back to its services. One closely watched metric -- the number of people who use the platform each month -- fell 5% to 98 million in the first quarter, falling short of Wall Street estimates of 100 million. Uber ended the quarter with $5.65 billion in cash and equivalents, more than expected.(Updates with reporting from the conference call starting in the first 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) -- Australia’s securities regulator is probing Westpac Banking Corp. on allegations of insider trading, just months after the country’s second-biggest lender paid a record fine to settle breaches of anti-money laundering laws.The allegations relate to Westpac’s role in executing a A$12 billion ($9.3 billion) interest-rate swap transaction with a consortium of AustralianSuper Pty Ltd. and a group of IFM entities in October 2016, according to a statement on Wednesday from the Australian Securities & Investments Commission.The probe comes after Westpac paid an A$1.3 billion fine for violating rules to prevent money laundering last year, capping a saga that dented the bank’s reputation and cost former Chief Executive Officer Brian Hartzer his job. Scrutiny on the nation’s biggest banks remains intense after years of scandals and a litany of misbehavior plagued the institutions at the heart of Australia’s economy. “The sad reality is the banks are often absorbing remediation costs, litigation costs, and penalties,” said Nathan Zaia, Sydney-based analyst at Morningstar Inc. It’s too early to know whether Westpac will be fined, though “we don’t envisage it being large enough to materially damage the equity value of the bank,” he said.Westpac said it’s taking the new allegations seriously and is considering its position. Shares ended Wednesday down 0.1% in Sydney.Inside InformationASIC said it began proceedings Wednesday against the firm in the Federal Court for insider trading, unconscionable conduct and breaches of its Australian financial services licensee obligations.According to the allegations, at about 7 a.m. on Oct. 20, 2016, the AustralianSuper consortium signed an agreement with the New South Wales government for the acquisition of Ausgrid, the state’s electricity infrastructure owner.The regulator alleges that by about 8:30 a.m. Westpac knew, or believed, it would be selected by the consortium to execute the interest rate swap transaction on that morning. ASIC alleges this was inside information.Read more here on ASIC’s concise statement filed in the courtThen, when the market opened at 8:30 a.m., Westpac traders bought and sold interest rate derivative products in order to pre-position Westpac in anticipation of the execution of the swap transaction, according to the ASIC statement. The bank executed the trade at 10:27 a.m., the regulator said.Westpac didn’t provide the consortium with full disclosure about its intention to pre-position its trading books prior to executing the swap transaction, ASIC said.Interest rate swaps are futures contracts that aren’t traded on public exchanges.The New South Wales government sold a 50.4% stake in the power network Ausgrid in a deal that at the time valued the entire company at about A$20.8 billion. As part of the transaction, a special purpose vehicle was set up in syndicated debt funding. The accompanying interest rate swap transaction, valued at about A$12 billion, remains the largest such transaction in the history of Australian capital markets, ASIC said.Improvements Made?In 2018, Westpac was fined A$3.3 million for engaging in “unconscionable conduct” in attempting to manipulate Australia’s bank-bill swap rate. Earlier that year it was cleared of allegations its traders rigged that key money market rate, which is used to price trillions of dollars in derivatives.ASIC’s case is being helmed by Philip Crutchfield QC, a lawyer who also led the case against banks including Westpac for alleged bank-bill swap manipulation.Wednesday’s allegations come just months after Westpac last year settled with AUSTRAC, the government agency responsible for weeding out criminality in the financial system, paying the largest levy ever against an Australian firm.“It’s fair for investors to be disappointed when they hear the bank undertaking in questionable conduct, but this was a few years ago,” said Morningstar’s Zaia. A long-running government inquiry into the financial industry along with the AUSTRAC fine has “hopefully” improved regulatory and compliance framworks, and lowered the risk of such things happening again, he said.(Updates with share price 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.
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.
(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.
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.
A year into the pandemic, some homeowners say loan servicers aren't giving them clear information about mortgage forbearance.
Since January, the price of Bitcoin has surged 89%. But another major cryptocurrency has posted even larger returns.
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.
(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.
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.
Prices are on the rise, but there are ways you can lessen the impact on your wallet.