Indiana Congressman Todd Rokita (R) explains why he has introduced a resolution to end special counsel Robert Mueller's investigation.
Indiana Congressman Todd Rokita (R) explains why he has introduced a resolution to end special counsel Robert Mueller's investigation.
Banco de Bogotá will use the test to explore business models and risks around crypto assets.
(Bloomberg) -- The Treasury market may be just one spark away from exploding and sending 10-year yields all the way up to 2%, suggesting that the rout of 2021 may not yet be over and raising the chances that other assets like emerging-market bonds might also be living on borrowed time.Analysts are now putting the target on Treasury yields around half a percentage point higher than current levels following the rapid, reflation-fueled selloff that took the market by storm last week. Should that happen, it’s not just developed markets that will be left reeling. Developing-market bonds are increasingly at risk as investor concern grows about stretched valuations and the chances of a policy misstep by the Federal Reserve.“The velocity of the moves in U.S. Treasury yields are now intensifying at a time when both hard currency and local emerging-market bonds are more vulnerable to such a move,” said Lisa Chua, a New York-based portfolio manager on the emerging-markets debt team at Man Group Plc’s hedge-fund unit Man GLG.The reason 2% is on the radar for many is the market is in the midst of a rapid repricing back to a normal economy. What still hasn’t been priced in, among other things, are a much-sooner-than-expected cycle of interest-rate hikes and a real yield -- which strips out inflation -- closer to zero than the current level of around minus 0.8%. The record-breaking rally in stock markets meanwhile has been buffeted by the pick up in bond rates.More analysts are sounding the alarm that there’s little to stop yields surging higher. ING Groep NV says investors’ attitude toward holding longer-dated Treasuries has grown cautious, “to put it mildly,” exacerbating the potential for rapid selling on any sign of weakness in the market. They see yields on 10-year Treasuries rising another 50 basis points, joining the likes of BNP Paribas SA who also expect 2% by year-end.Investor jitters were on display again Wednesday, when a bigger-than-expected bond sale plan from the U.K. caused ructions globally. The U.S. 10-year yield jumped to around 1.49%, closing in again on the one-year high above 1.60% that it reached last Thursday in the wake of a sloppy seven-year Treasury auction. The rate was around 1.47% Thursday morning in New York.Concern over supply hitting the market is adding to fears inflation is set to accelerate, which could force central banks to begin tightening policy. Then there’s the risk liquidity evaporates to fuel sharper moves.“The bond market has been sitting on a powder keg since last week,” wrote ING strategists led by Padhraic Garvey in a note to clients. “In this context, we do not blame investors for exiting at the first sign of a selloff.”Liquidity in the $21 trillion Treasury market, which underpins the global financial system, is under scrutiny following last week’s startling gyrations and weak auction demand. The gap between bid and offer prices for 30-year bonds hit the widest since the panic of March 2020.All eyes will be on an appearance on Thursday by Federal Reserve Chairman Jerome Powell to see if he hints at possible action by the central bank to cap recent moves. In comments last week -- before the violent gyrations on Thursday -- he indicated that the Fed sees rising yields as a sign of economic health. But that message could well be shifted.The European Central Bank, meanwhile, has indicated it sees no need for drastic action to curb the rise in longer-term borrowing rates.For ING, the five-year U.S. bond is the key barometer for where rates are going. Mizuho International Plc agrees, having signaled the 0.75% level -- broken a week ago -- as the threshold that could signal a sharp correction in riskier stock and credit markets. That yield was hovering at 0.72% Thursday.Emerging markets, though, are starting to tell a different story. For bonds there, the crunch point could come with 10-year Treasury yields holding north of 1.5%. For Lisa Chua at Man GLG, that could trigger “major outflows” in both hard-currency and local assets.Not all investors see the path higher for yields. Some, like PGIM Fixed Income’s Robert Tipp, are betting on Treasuries going the other way and sending rates back down to 1% on the belief that the stimulutive effect from U.S. President Joe Biden’s $1.9 trillion spending package will fade and the economy will slow.Right now, the selling momentum seems hard to shake, with the eagerness of investors to borrow and short 10-year securities creating a rush within the market for repurchase agreements that’s sent rates there deeply negative.BNP strategists see the market pricing in an interest-rate hike from the Fed at the end of 2022, leading them to raise their year-end Treasury yield forecast to 2%. While they see the Fed sticking with dovish rhetoric, their risk scenario is that doesn’t work and the central bank has to increase the pace of bond purchases beyond the current $120 billion per month.“A break in asset market correlations and collapse in UST market liquidity (all out taper tantrum or “T”) would likely facilitate a Fed response to limit the deterioration in financial conditions,” wrote BNP strategists including Sam Lynton-Brown. While no Fed rate hikes are expected until the end of 2022, “this does not prevent the market from pricing it in.”(Updates with stocks in fourth 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.
Oil prices jumped more than 2% on Friday, hitting their highest in nearly 14 months after OPEC and its allies agreed not to increase supply in April as they await a more substantial recovery in demand. Brent crude futures were up $1.52, or 2.3%, at $68.26 a barrel by 1008 GMT and U.S. West Texas Intermediate (WTI) crude futures climbed $1.30, or 2%, to $65.13 as both remained on track for weekly gains. Both contracts surged more than 4% on Thursday after the Organization of the Petroleum Exporting Countries (OPEC) and allies, together known as OPEC+, extended oil output curbs into April, granting small exemptions to Russia and Kazakhstan.
The early price action suggests the direction of the gold market into the close on Thursday will be determined by trader reaction to $1711.70.
(Bloomberg) -- Stocks and bonds sold off after Federal Reserve Chairman Jerome Powell underwhelmed markets by refraining from pushing back more forcefully against the recent spike in Treasury yields.The S&P 500 briefly erased its 2021 gains, notching its lowest close in about five weeks. Benchmark 10-year bond rates topped 1.5% and the dollar climbed. The Nasdaq 100 extended losses from a February peak to almost 10%, and the Russell 2000 of small caps slid 2.8%. Reddit users appeared to rush back into GameStop Corp., with the video-game retailer soaring.Powell said in an online event Thursday that he’d be “concerned” by disorderly markets, but stopped short of offering steps to curb heightened volatility. The surge in Treasury yields has triggered fears about elevated stock valuations after a torrid equity rally from the depths of the pandemic. While bulls have decided to view the jump in rates as a sign of economic strength that could lift corporate profits, there’s been mounting concern over a potential inflation pickup. For Bleakley Advisory Group’s Peter Boockvar, the Fed has put itself in a “tough situation.”“We are again seeing a market that is taking control of monetary policy from the Fed,” said Boockvar, the firm’s chief investment officer. “Long rates are rising right now because Powell is again very dovish. The more dovish they get in the face of market expectations of higher inflation, the more financial tightening we’ll see.”Stock-Market Momentum Comeuppance Gets No Sympathy From the FedDespite the lingering uncertainties about the impacts of rising bond yields, such fears are “misplaced,” according to Candice Bangsund, portfolio manager of global asset allocation at Fiera Capital.“As long as the back-up in bond yields reflects stronger growth expectations (versus tighter monetary policy), then the long-term bull market will not be at risk,” she said. “The latest normalization in bond yields should be viewed as an encouraging sign that growth is healing, while the prospect for a hawkish turn from the Federal Reserve is clearly not in the cards today.”The U.S. Senate voted to take up a $1.9 trillion relief bill backed by President Joe Biden, setting off a debate expected to end this weekend with approval of the nation’s sixth stimulus since the pandemic-triggered lockdowns that began a year ago.Elsewhere, Bitcoin’s appeal as a hedge against inflation was put to the test, with the largest cryptocurrency joining a slump in other risk assets. Oil surged after the OPEC+ alliance surprised traders with its decision to keep output unchanged, signaling a tighter crude market in the months ahead.Some key events to watch this week:The February U.S. employment report on Friday will provide an update on the speed and direction of the nation’s labor market recovery.These are some of the main moves in markets:StocksThe S&P 500 sank 1.3% at 4 p.m. New York time.The Stoxx Europe 600 Index fell 0.4%.The MSCI Asia Pacific Index dipped 2.5%.The MSCI Emerging Market Index declined 2.6%.CurrenciesThe Bloomberg Dollar Spot Index rose 0.7%.The euro decreased 0.8% to $1.1971.The Japanese yen depreciated 0.8% to 107.92 per dollar.BondsThe yield on 10-year Treasuries rose six basis points to 1.54%.Germany’s 10-year yield fell two basis points to -0.31%.Britain’s 10-year yield decreased five basis points to 0.731%.CommoditiesWest Texas Intermediate crude jumped 4.8% to $64.24 a barrel.Gold fell 0.8% to $1,698.21 an ounce.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) -- Texas regulators declined to rescind $16 billion in alleged overcharges for electricity during last month’s blackouts, leaving the state’s power market facing a potential financial crisis.“Decisions were made about these prices in real time based, on information available to everybody,” said Arthur D’Andrea, chair of the Public Utility Commission of Texas during a meeting Friday. “It is nearly impossible to unscramble this sort of egg.”The state’s independent market monitor had recommended that $16 billion in charges be reversed, saying that the Electric Reliability Council of Texas, known as Ercot, overpriced power for two days during the crisis.Retroactively adjusting those prices could have offered sweeping relief to companies facing astronomical bills in the wake of the grid emergency. With many generators crippled by the cold, electricity prices skyrocketed, squeezing anyone who had to buy power on the wholesale market. The grid operator now faces a $2.5 billion shortfall as more than a dozen companies face default. At least one utility has already filed for bankruptcy.While utility commissioners didn’t close the door repricing in the future, they didn’t embrace the idea.“Repricing the energy -- I would be more inclined to say we’re not going to do that,” said Commissioner Shelly Botkin. D’Andrea agreed, adding, “It looks like you’re protecting consumers. I promise you’re not.”The commission also declined to vote on a request to retroactively adjust the price of certain grid services during the emergency, a move that would have offered relief to distressed companied and potentially saved consumers $2 billion, according to the market monitor. So-called ancillary services, which help maintain the flow of electricity on the system, jumped above $20,000 a megawatt-hour during the crisis. Retail electricity providers and others had asked for those charges to be capped at $9,000.Texas’s biggest power generators have generally opposed any kind of repricing. But ahead of Friday’s meeting, Vistra Corp. told regulators in a filing that energy prices on Feb. 18 and 19 -- the days after the rolling outages ended -- should be changed “to an equitable calculation of the market clearing price.”“Vistra continues to believe that the Commission should not take an arbitrary, piecemeal approach to repricing,” the company said in its filing. “But acting without allowing all market participants to engage is likely to create another set of parties that will be adversely affected by the new pricing structure.”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.
Some households are collecting a big pile of federal money in 2021.
The president has agreed to a compromise making millions ineligible for the third checks.
(Bloomberg) -- Major oil sands producers in Western Canada will idle almost half a million barrels a day of production next month, helping tighten global supplies as oil prices surge.Canadian Natural Resources Ltd.’s plans to conduct 30 days of maintenance at its Horizon oil sands upgrader in April will curtail roughly 250,000 barrels a day of light synthetic crude output, company President Tim McKay said in an interview Thursday. Work on the Horizon upgrader coincides with maintenance at other cites.Suncor Energy Inc. plans a major overhaul of its U2 crude upgrader, cutting output by 130,000 barrels a day over the entire second quarter. Syncrude Canada Ltd. will curb 70,000 barrels a day during the quarter because of maintenance in a unit.The supply cuts out of Northern Alberta, following a surprise OPEC+ decision to not increase output next month, could add more support to the recent rally in crude prices. OPEC+ had been debating whether to restore as much as 1.5 million barrels a day of output in April but decided to wait.The Saudi-led alliance closely monitors other major oil producers as it seeks to manage the entire global market, and surging production in North America was its biggest headache in recent years -- especially from U.S. shale but also from Canada.“The U.S., Saudi Arabia, Russia, Canada, Brazil and other well endowed countries with hydrocarbon reserves -- we need to work with each other, collaboratively,” Saudi Energy Minister Prince Abdulaziz bin Salman said after the group’s meeting on Thursday.Read More: Saudis Bet ‘Drill, Baby, Drill’ Is Over in Push for Pricier OilCanada’s contribution to balancing the market with less production, much like slowing output in the U.S., is not a deliberate market-management strategy but significant nonetheless.Even though the output cuts are short-term, the battered oil-sands industry shouldn’t be a concern for the Saudis in the long run either, judging from McKay’s outlook for the industry.“I can’t see much growth in the oil sands happening because there is going to be less demand in the future,” he said. “The first step is we have to get our carbon footprint down.”After years of rising output turned Canada into the world’s fourth-largest crude producer, expansion projects have nearly halted on the heels of two market crashes since 2014.Adding to its struggles, Canada’s oil industry is being shunned by some investors such as Norway’s $1.3 trillion wealth fund amid concern that the higher carbon emissions associated with oil sands extraction will worsen climate change. These forces help make future growth in the oil sands unlikely, said McKay, whose company is among the largest producers in the country.Oil sands upgraders turn the heavy bitumen produced in oil sands mines into light synthetic crude that’s similar to benchmarks West Texas Intermediate and Brent. Syncrude Sweet Premium for April gained 60 cents on Thursday to $1.50 a barrel premium to WTI, the strongest price since May, NE2 Group data show.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) -- A new exchange-traded fund seeking to ride the companies most loved by investors online has found plenty of its own positive sentiment in its first day of trading.About $438 million worth of shares in the VanEck Vectors Social Sentiment ETF (ticker BUZZ) changed hands on Thursday, making it the third best ETF debut on record, according to data compiled by Bloomberg.“Normally, this kind of blow-the-roof-off volume for the first day is for ETFs that open up a new asset class like gold or Bitcoin,” said Eric Balchunas, ETF analyst for Bloomberg Intelligence.The fund, which has been promoted by Barstool Sports Inc. founder Dave Portnoy, follows an index that uses AI to scan online sources like blogs and social media to identify the 75 most favorably mentioned equities.Because of its criteria for inclusion, the hottest names among the day-trading crowd like GameStop Corp. and AMC Entertainment Holdings Inc. don’t actually make it into the gauge. Its top holdings currently are Ford Motor Co., Twitter Inc. and DraftKings Inc.Nonetheless, the rapid uptake suggests VanEck has succeeded in tapping into the increasingly powerful retail investing cohort.“Given the explosion of individual, younger retail traders, it makes sense to see a pile of volume,” said Dave Lutz, macro strategist at JonesTrading. “Whether it is the WSB crowd embracing Dave Portnoy’s marketing of the ETF, or institutions playing it to bet on the direction of the trend (or hedge) -- we won’t know for a bit. I suspect it’s a bit of both.”The fund opened at $24.40. It was down 1% at $24.15 at 12:02 p.m.(Updates with latest figures, analyst comments.)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.
Never say that one person makes no difference. This past Thursday, stocks tumbled, bonds surged, and investors started taking inflationary risks seriously – all because one guy said what he thinks. Jerome Powell, chair of the Federal Reserve, held a press conference at which he gave both the good and the bad. He stated, again, his belief that the COVID vaccination program will allow a full reopening of the economy, and that we’ll see a resurgence in the job market. That’s the good news. The bad news, we’ll also likely see consumer prices go up in the short term – inflation. And when inflation starts rising, so do interest rates – and that’s when stocks typically slide. We’re not there yet, but the specter of it was enough this past week to put serious pressure on the stock markets. However, as the market retreat has pushed many stocks to rock-bottom prices, several Wall Street analysts believe that now may be the time to buy in. These analysts have identified three tickers whose current share prices land close to their 52-week lows. Noting that each is set to take back off on an upward trajectory, the analysts see an attractive entry point. Not to mention each has earned a Moderate or Strong Buy consensus rating, according to TipRanks database. Alteryx (AYX) We’ll start with Alteryx, an analytic software company based in California that takes advantage of the great changes brought by the information age. Data has become a commodity and an asset, and more than ever, companies now need the ability to collect, collate, sort, and analyze reams of raw information. This is exactly what Alteryx’s products allow, and the company has built on that need. In Q4, the company reported net income of 32 cents per share on $160.5 million in total revenues, beating consensus estimates. The company reported good news on the liquidity front, too, with $1 billion in cash available as of Dec 31, up 2.5% the prior year. In Q4, operating cash flow reached $58.5 million, crushing the year-before figure of $20.7 million. However, investors were wary of the lower-than-expected guidance. The company forecasted a range of between $104 million to $107 million in revenue, compared to $119 million analysts had expected. The stock tumbled 16% after the report. That was magnified by the general market turndown at the same time. Overall, AYX is down ~46% over the past 52 months. Yet, the recent sell-off could be an opportunity as the business remains sound amid these challenging times, according to 5-star analyst Daniel Ives, of Wedbush. “We still believe the company is well positioned to capture market share in the nearly ~$50B analytics, business intelligence, and data preparation market with its code-friendly end-to-end data prep and analytics platform once pandemic pressures subside…. The revenue beat was due to a product mix that tilted towards upfront revenue recognition, an improvement in churn rates and an improvement in customer spending trends," Ives opined. Ives’ comments back his Outperform (i.e. Buy) rating, and his $150 price target implies a one-year upside of 89% for the stock. (To watch Ives’ track record, click here) Overall, the 13 analyst recent reviews on Alteryx, breaking down to 10 Buys and 3 Holds, give the stock a Strong Buy analyst consensus rating. Shares are selling for $79.25 and have an average price target of $150.45. (See AYX stock analysis on TipRanks) Root, Inc. (ROOT) Switching over to the insurance sector, we’ll look at Root. This insurance company interacts with customers through its app, acting more like a tech company than a car insurance provider. But it works because the way customers interact with businesses is changing. Root also uses data analytics to set rates for customers, basing fees and premiums on measurable and measured metrics of how a customer actually drives. It’s a personalized version of car insurance, fit for the digital age. Root has also been expanding its model to the renters insurance market. Root has been trading publicly for just 4 months; the company IPO'd back in October, and it’s currently down 50% since it hit the markets. In its Q4 and Full-year 2020 results, Root showed solid gains in direct premiums, although the company still reports a net loss. For the quarter, the direct earnings premiums rose 30% year-over-year to $155 million. For all of 2020, that metric gained 71% to reach $605 million. The full-year net loss was $14.2 million. Truist's 5-star analyst Youssef Squali covers Root, and he sees the company maneuvering to preserve a favorable outlook this year and next. “ROOT's mgt continues to refine its growth strategy two quarters post IPO, and 4Q20 results/2021 outlook reflects such a process... They believe their stepped-up marketing investment should lead to accelerating policy count growth as the year progresses and provide a substantial tailwind heading into 2022. To us, this seems part of a deliberate strategy to marginally shift the balance between topline growth and profitability slightly more in favor of the latter,” Squali noted. Squali’s rating on the stock is a Buy, and his $24 price target suggests a 95% upside in the months ahead. (To watch Squali’s track record, click here) Shares in Root are selling for $12.30 each, and the average target of $22 indicates a possible upside of ~79% by year’s end. There are 5 reviews on record, including 3 to Buy and 2 to Hold, making the analyst consensus a Moderate Buy. (See ROOT stock analysis on TipRanks) Arco Platform, Ltd. (ARCE) The shift to online and remote work hasn’t just impacted the workplace. Around the world, schools and students have also had to adapt. Arco Platform is a Brazilian educational company offering content, technology, supplemental programs, and specialized services to school clients in Brazil. The company boasts over 5,400 schools on its client list, with programs and products in classrooms from kindergarten through high school – and over 405,000 students using Arco Platform learning tools. Arco will report 4Q20 and full year 2020 results later this month – but a look at the company’s November Q3 release is instructive. The company described 2020 as a “testament to the resilience of our business.” By the numbers, Arco reported strong revenue gains in 2020 – no surprise, considering the move to remote learning. Quarterly revenue of 208.7 million Brazilian reals (US$36.66 million) was up 196% year-over-year, while the top line for the first 9 months of the year, at 705.2 million reals (US$123.85 million) was up 117% yoy. Earnings for educational companies can vary through the school year, depending on the school vacation schedule. The third quarter is typically Arco’s worst of the year, with a net loss – and 2020 was no exception. But, the Q3 net loss was only 9 US cents per share – a huge improvement from the 53-cent loss reported in 3Q19. Mr. Market chopped off 38% of the company’s stock price over the past 12 months. One analyst, however, thinks this lower stock price could offer new investors an opportunity to get into ARCE on the cheap. Credit Suisse's Daniel Federle rates ARCE an Outperform (i.e. Buy) along with a $55 price target. This figure implies a 12-month upside potential of ~67%. (To watch Federle’s track record, click here) Federle is confident that the company is positioned for the next leg of growth, noting: "[The] company is structurally solid and moving in the right direction and... any eventual weak operating data point is macro related rather than any issue related to the company. We continue with the view that growth will return to its regular trajectory once COVID effects dissipate.” Turning to expansionary plans, Federle noted, “Arco mentioned that it is within their plans to launch a product focused on the B2C market, likely already in 2021. The product will be focused on offering courses (e.g. test preps) directly to students. It is important to note that this product will not be a substitute for learning systems, rather a complement. Potential success obtained in the B2C market is an upside risk to our estimates.” There are only two reviews on record for Arco, although both of them are Buys, making the analyst consensus here a Moderate Buy. Shares are trading for $33.73 and have an average price target of $51, which suggests a 51% upside from that level. (See ARCE stock analysis on TipRanks) To find good ideas for beaten-down stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights. Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
Powell and his policymakers have until March 17 to regain control of monetary policy or they could face a creditability issue.
Despite the recent selloff in electric-vehicle stocks like Tesla and Nio, there is still intense investor interest in the sector, with demand for electric-vehicles expected to climb dramatically over the next decades.
How much money people have put away for retirement varies, naturally, by their age group. See how your savings stack up.
As the April 15 deadline to file and pay taxes closes in, some of the accountants preparing those returns are telling the Internal Revenue Service they need more time. “In the current environment, it is simply not possible for many taxpayers and their tax advisers to meet their filing and payment obligations that are due on April 15,” according to a Thursday letter from the American Institute of Certified Public Accountants. The professional organization with more than 431,000 members wants the IRS to move the tax deadline to June 15.
Virgin Galactic Holdings Inc. Chairman Chamath Palihapitiya sold off a chunk of his shares this week, and played a part of the plunge in prices.
Senator Sherrod Brown says capitalism needs rules so workers have a fighting chance.
(Bloomberg) -- Colombia’s economy is in a weak condition, but there are risks in providing extra stimulus, according to one of the central bank’s new board members.These include the possibility of deterring foreign investment flows and of encouraging people to take on risky debt, said Mauricio Villamizar, who was named a bank co-director last month.“I agree that we are in a particularly vulnerable state, and I believe that there is a general consensus about taking an expansionary stance,” Villamizar said, in reply to written questions. “In terms of threats to providing extra stimulus, the usual suspects are loan quality, other credit risks, affecting long-term inflation expectations, and deterring portfolio flows.”The economy suffered its deepest slump on record last year, destroying millions of jobs and leaving widespread bankruptcies. The central bank’s seven-member policy committee split at its last two meetings, with two board members saying that the lowest inflation rate since the 1950s creates space to cut interest rates, while the majority voted to leave them unchanged.After the pandemic hit Colombia last year, the bank slashed its key rate seven times, to a record low of 1.75%. Villamizar says it’s providing stimulus at its current level.The priorities for monetary policy are “providing enough liquidity, calming disorderly markets, and sustaining aggregate demand,” he said.The new co-director said that he expects inflation to remain below its 3% target this year and in 2022, due to weak demand and to the widespread indexing of prices such as rent and school fees, which will rise in line with last year’s low price increases. Annual inflation was 1.6% in January, up slightly after touching a 65-year-low in October.Villamizar will vote in his first policy meeting later this month.The economy won’t recover to its pre-pandemic level until near the end of 2022, according to the bank’s forecasts. Villamizar said he’s “cautiously optimistic” on the recovery, though doesn’t expect to see much of a boost from the recent rally in oil prices, which may turn out to be temporary.Read More: Colombia Recovers Faster-Than-Expected From Worst-Ever Slump Villamizar got a doctorate from Georgetown University in Washington D.C. and first joined the bank as an intern two decades ago. At Georgetown, he studied the problems that central banks face when the they have “a large number of objectives and not enough tools.”On the bank’s economics team, where he worked until last month, he studied the impact of central bank interventions in foreign currency markets, and concluded that these can be effective but tend to be short-lived, with the impact typically lasting about a month.President Ivan Duque named Villamizar to the board last month, as well as Bibiana Taboada, a former economist at the World Bank, and former IMF official Jaime Jaramillo.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 firm hired to monitor Texas' power markets says the region's grid manager overpriced electricity over two days during last month's energy crisis, resulting in $16 billion in overcharges.