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Halliburton continued yesterday's rebound and is right around the high from January. Relative strength line looking strong.
Halliburton continued yesterday's rebound and is right around the high from January. Relative strength line looking strong.
World stock markets extended a five-day run of fresh highs on Thursday, fueled by upbeat earnings and strong U.S. economic data that herald a solid recovery ahead, while Russian markets tumbled at the prospect of the harshest U.S. sanctions in years. Major stock indexes posted record highs, including MSCI's global benchmark, Europe's broad STOXX 600, the Dow Industrials and the U.S. benchmark S&P 500, as bonds yields tumbled. The 10-year U.S. Treasury note slid below 1.6% to yield 1.563%, a fall of 7.4 basis points that helped spur renewed buying of big tech stocks in the biggest single-day decline in the benchmark's yield in almost three months.
(Bloomberg) -- The physical crude market in Asia has been reinvigorated amid a rise in buying by a Chinese mega-refiner as well as some Japanese oil companies, boding well for improved consumption.Rongsheng Petrochemical Co. came to the market early this month to snap up about 7 million barrels of Middle Eastern varieties for June-July delivery. That’s up from 5 million barrels bought in March, and puts it on course for the biggest monthly purchase since October, according to data compiled by Bloomberg. In addition, spot differentials of Russia’s ESPO cargoes have started off stronger, trading $1 above the last reported deal.The pick-up in activity across the key Asian market comes amid a flurry of signs that global oil consumption is improving as economies including the U.S. shake off the impact of the pandemic. This week, both the International Energy Agency and Organization of Petroleum Exporting Countries issued positive outlooks, even as the cartel and its allies plan to ease supply curbs. So far in 2021, Brent futures have soared 30%, and last traded near $67 a barrel.In Asia, traders had been waiting for further signs of improved demand across the region after buying of spot cargoes by China was muted in March, weakening the overall Asian physical market. That retreat of Chinese buyers coincided with its bigger intake of U.S.-sanctioned Iranian crude, and as higher prices and the backwardated market structure incentivized local de-stocking.While the spot crude purchases of China’s smaller independent refiners will be observed in the coming days, the nation is clearly leading the global recovery in oil consumption. Its refineries processed near-record volumes of crude last month, contributing toward record economic growth in the first quarter.See also: China’s March Apparent Oil Demand Rises 22.5% Y/yRongsheng’s Singapore unit purchased 6 million barrels of Abu Dhabi’s Murban and Upper Zakum, along with a further 1 million barrels of Qatar’s Al-Shaheen for delivery to Zhoushan, according to traders who asked not to be identified.Rongsheng is not alone, with Japanese refiners also out early to secure Middle Eastern supplies. In addition, other processors such as Thailand’s PTT Pcl and Japan’s Fuji Oil Co. issued tenders on Friday to purchase sour grades from the Persian Gulf, of which results will most likely surface next week.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) -- Taiwan Semiconductor Manufacturing Co. warned that a global shortage of semiconductors across industries from automaking to consumer electronics may extend into 2022, prompting the linchpin chipmaker to lift targets on spending and growth for this year.The world’s largest contract chipmaker said Thursday that its auto industry clients can expect chip shortages to begin easing next quarter, alleviating some of the supply disruptions that have forced the likes of General Motors Co. and Ford Motor Co. to curtail production. But overall deficits of critical semiconductors will last throughout 2021 and potentially into next year, Chief Executive Officer C.C. Wei told analysts on a conference call.TSMC now expects investments of about $30 billion on capacity expansions and upgrades this year, up from a previous forecast for as much as $28 billion, Chief Financial Officer Wendell Huang said. It foresees sales in the June quarter at a better-than-projected $12.9 billion to $13.2 billion, driving full-year revenue growth of 20% in dollar terms -- ahead of the “mid-teens” growth predicted in January.But the increased spending means its target for gross margins this quarter came in below expectations at 49.5% to 51.5%, spurring concerns about the longer-term impact on profitability. TSMC’s shares slipped 1.8% in Taipei on Friday, their biggest intraday loss in about three weeks.“The capex boost is a mixed bag with better long-term growth but lower margins,” Morgan Stanley analysts wrote.What Bloomberg Intelligence SaysLarge depreciation costs from new 5-nm production equipment may lower gross margin by 2%, while slower-than-expected production efficiency improvement implies that gross margin will continue to contract, possibly to under 50% in 2Q.- Charles Shum and Simon Chan, analystsClick here for the research.TSMC joins a growing number of industry giants from Continental AG to Renesas Electronics Corp. and Foxconn Technology Group that warned of longer-than-anticipated deficits thanks to unprecedented demand for everything from cars to game consoles and mobile devices. While Taiwan’s largest chipmaker has kept its fabs running at “over 100% utilization,” the firm doesn’t have enough capacity to satisfy all its customers and it has pledged to invest $100 billion over the next three years to expand.“We see the demand continue to be high,” Wei said. “In 2023, I hope we can offer more capacity to support our customers. At that time, we’ll start to see the supply chain tightness release a little bit.”Read more: See How a Chip Shortage Snarled Everything From Phones to CarsSemiconductor shortages are cascading through the global economy. Automakers like Ford, Nissan Motor Co.and Volkswagen AG have already scaled back production, leading to estimates for more than $60 billion in lost revenue for the industry this year. The situation is likely get worse before it gets better: a rare winter storm in Texas knocked out swaths of U.S. production, while a fire at a key Japan factory will shut the facility for a month. Rival chipmaker Samsung Electronics Co. warned of a “serious imbalance” in the industry.With major American carmakers and other gadget suppliers facing a prolonged shortage of chips, U.S. President Joe Biden has proposed $50 billion to bolster semiconductor research and manufacturing at home. The initiative could aid TSMC’s plan to build a cutting-edge fab in Arizona this year that could cost $12 billion.TSMC is “happy” to support chip manufacturing in the U.S., though research and development and the majority of production will continue to remain in Taiwan, executives said on Thursday. They reiterated that construction of their plant in Arizona will begin this year.Read more: Why Shortages of a $1 Chip Sparked Crisis in Global EconomyNet income for the January-March period climbed 19% to NT$139.7 billion ($4.9 billion), beating the average analyst estimate, buoyed by demand for high-performance computing (HPC) equipment and a milder seasonal effect on smartphone demand. Gross margin for the quarter eased to 52.4% from 54% in the three months prior, due in part to relatively lower levels of utilization and exchange-rate fluctuations. First-quarter revenue rose 17% to NT$362.4 billion, according to a company statement last week.The company said Thursday it now expects to be able to achieve the higher end of its compound annual growth rate target of 10% to 15% for the five years to 2025, citing its investment spending plans.“TSMC’s statement that the chip crunch may spill into 2022 will smooth over concerns that chip demand may fall on overbooking later this year and further boost investors’ confidence in the overall semiconductor demand in the long run,” said Elsa Cheng, an analyst at GF Securities.Shares of TSMC have more than doubled over the past year.TSMC’s most-advanced technologies continued to account for nearly half of revenue in the March quarter, with 5-nanometer and 7-nanometer processes contributing 14% and 35% of sales, respectively. By business segment, its smartphone business amounted for about 45% of revenue, while HPC increased to more than a third, reflecting sustained demand for devices and internet servers even as economies start to emerge from the pandemic.“We are seeing stronger engagement with more customers on 5-nm and 3-nm, in fact the engagement is so strong that we have to really prepare the capacity for it,” Wei said. Smartphones and HPC will be the main drivers for demand of 5-nm, which will contribute around 20% of wafer revenue this year.TSMC Is On Fire. Just Beware of the Flames: Tim Culpan(Updates with share action from the 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.
For all the insouciance with which markets treated Washington's latest sanctions on Russia, its move to target Moscow's main funding avenue - the rouble bond market - has in some ways, crossed the Rubicon, potentially with far-reaching consequences. Drawing on experiences of sanctions imposed previously, including after the 2014 Ukraine crisis and the Mueller report on Russia's alleged U.S. election meddling, money managers haven't rushed to dump Russian assets en masse. The rouble, which fell as much as 2% at one point on Thursday, has clawed back losses and is on its way to recording its best week this year; Russian bond yields, on local as well as international markets, have fallen.
(Bloomberg) -- As Japan’s life insurers lay out their annual strategies this month, traders will be looking for the answer to one question -- what do some of the world’s biggest investors plan to do about Treasuries?With the path of Treasury yields set to determine investments across the financial world, the intentions of a large cohort of the biggest foreign holders of U.S. government debt will be a crucial input. Japanese investors were on track to be net sellers of Treasuries for the sixth year in seven in their fiscal year to March, according to U.S. Treasury data through January. Some predict a return to purchases in 2021.With combined assets equivalent to $3.6 trillion, and one-quarter of this in foreign securities, even minor shifts in Japanese insurer allocations can impact markets. Furious selling by Japanese funds in February helped fuel the biggest monthly decline in Treasuries since 2016, and with benchmark yields close to their highest in a year, bond investors are keen to know at what levels lifers will become more inclined to buy.“Life insurers are expected to be aggressive about investing in foreign bonds, and are probably looking for the right timing to buy when markets settle down,” said Hiroshi Yokotani, managing director and portfolio strategist for fixed income and currencies at State Street Global Advisors. “The U.S is seen to be the most attractive destination taking account of hedge costs.”Life insurers will start announcing their allocation plans for the new fiscal year later this month. Among them are the nation’s leading Nippon Life Insurance Co. and Japan Post, which is also known as Kampo Life.Treasuries AttractionAfter reaching a record closing low of around 0.5% last August, the 10-year Treasury yield has rebounded and traded at just over 1.60% on Wednesday. That increase makes Treasuries relatively more attractive to some of the credit products which have been preferred by Japan’s life insurers in recent years, where spreads have tumbled close to historic lows.“Credit investment has depressed spreads to historically expensive levels, so investing in Treasuries looks safer in the longer run,” said Akio Kato, general manager of strategic research and investment at Mitsubishi UFJ Kokusai Asset Management. “Abundant cash held by investors will keep money flowing into credit but it’s doubtful if the size will be big.”Given the recent flattening of the U.S. 10-year/30-year yield curve -- where the spread was about 68 basis points on Wednesday -- lifers may wait until it steepens back toward 100 basis points before buying Treasuries, Kato added.For State Street’s Yokotani, Treasuries are also more attractive than agency bonds -- such as those of Freddie Mac or Fannie Mae -- which tend to be more volatile when yields are rising.Hedge CallAside from choosing where to invest, Japanese investors also have to decide whether to hedge out their currency risk or not. The yen was the worst-performing Group-of-10 currency in the first quarter of 2021 and is down over 5% against the dollar year-to-date.Short-term rates pinned at low levels have kept hedging costs near historic lows, providing a favorable environment. Japanese investors currently get a yield of almost 1.3% from a 10-year Treasury note after taking account of hedging costs, compared to just 0.65% for local 30-year government bonds.“Returns generated from currency-hedged U.S. Treasuries investment could be too attractive to resist,” said Satoshi Nagami, head of the global strategies investment group at Sumitomo Mitsui DS Asset Management Co. Japanese investors “wouldn’t be too aggressive early in the new fiscal year, but I don’t think they feel negative about allocating funds into overseas debt this year.”Life insurers extended a net sale of foreign bonds for a ninth consecutive month in March, the longest ever streak in Ministry of Finance data going back to 2001. That made them a net foreign bond seller for a fiscal year for the first time in seven years.Still, not everyone is convinced Japan’s investors will rush back into Treasuries given the risk yields could continue to rise -- Masahiko Loo, fixed-income portfolio manager at AllianceBernstein Japan in Tokyo sees credit continuing to attract more interest. But a consensus does seem to have formed on where they will invest.“This year, Japanese investor strategy will be simple, to focus on the U.S.,” Loo said.(Corrects timing of announcements 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.
(Bloomberg) -- PT Dayamitra Telekomunikasi, the infrastructure services unit of state-owned PT Telkom Indonesia, has picked banks to arrange its potential initial public offering in what could be the country’s biggest first-time share sale, according to people with knowledge of the matter.Mitratel, as the company is known, has chosen HSBC Holdings Plc, JPMorgan Chase & Co. and Morgan Stanley to work on the planned Jakarta IPO, the people said. BRI Danareksa Sekuritas and Mandiri Sekuritas were also selected to help arrange the listing, the people said, asking not to be identified as the process is private.The company aims to raise about $1 billion from the first-time share sale as soon as this year, Bloomberg News reported on Tuesday. At $1 billion, the IPO would be the largest in the country to date since PT Indofood CBP Sukses Makmur’s $696 million offering in 2010, according to data compiled by Bloomberg.Mitratel could add more banks to the lineup at a later date, one of the people said. Deliberations are ongoing and details of the offering including size and timeline could change, the people said.Preparations for the Mitratel IPO are underway and the company will give more details in due course, Ririek Adriansyah, president director of Telkom Indonesia, said in response to a Bloomberg News query.Representatives for HSBC, JPMorgan and Morgan Stanley declined to comment.A representative for Mandiri Sekuritas couldn’t immediately comment. A representative for BRI Danareksa Sekuritas didn’t immediately respond to requests for comment.Mitratel manages more than 16,000 telecommunication towers throughout Indonesia, according to its website. It signed a deal in October with PT Telekomunikasi Selular, another Telkom Indonesia unit, to buy 6,050 towers.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.
NEW YORK (Reuters) -The dollar fell to a four-week low against a basket of currencies on Friday, still smarting from a sharp drop in U.S. Treasury yields the previous session, and as investors increasingly bought into the Federal Reserve's insistence it would keep an accommodative policy stance for a while longer. The benchmark 10-year U.S. Treasury yield dipped to a one-month low of 1.528% overnight, moving further away from March's 1.776%, its highest in more than a year, even in the face of Thursday's stronger-than-expected retail sales and employment data. "It's a little bit of a change of course," said Minh Trang, senior FX trader at Silicon Valley Bank.
Gold is rallying because U.S. Treasury yields are trading lower, despite strong weekly jobless claims and booming monthly retail sales data.
Also, ether continued to move higher after the Berlin Fork.
(Bloomberg) -- Soaring coal prices in China are making mining companies prioritize output ahead of safety, a government agency said amid a spate of deadly accidents.A massive rescue operation is underway to try to save 21 miners trapped in a flooded underground shaft in Xinjiang, after 12 people died in accidents in Guizhou and Shanxi last week. Companies may have been too eager to produce coal as prices rise, leading to unsafe practices, the National Mine Safety Administration said in a Thursday statement.The miners represent the human toll of commodity inflation in China, where a booming post-pandemic economy is boosting demand and prices for everything from steel to eggs. Just last week, the National Development and Reform Commission asked coal producers to maximize output to avoid shortages as prices soared.Thermal coal futures on the Zhengzhou Commodity Exchange closed at a record high of 754.4 yuan a ton ($115) on Thursday, despite the fact that spring is usually a low season for demand. Mining accidents typically prompt safety checks across the industry that can disrupt supply.High prices are being blamed as one of the reasons for lax safety. The three most recent accidents reflected poor supervision and awareness of regulations, the administration said. Employees at the Xinjiang mine knew of flooding risks, and yet continued to dig at a rate of 9 meters (30 feet) per shift, it said, also citing insufficient expertise among the staff.While mining accidents are not uncommon in China, the industry has dramatically improved, with annual deaths falling from the thousands to the low hundreds in recent years.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.
Crypto startup DCX Capital will apply to convert its crypto index fund EC10 into an ETF.
(Bloomberg) -- Gold rose to the highest since late February, putting the metal on course for a second straight weekly gain on help from declines in the dollar and bond yields.A gauge of the dollar fell as much as 0.2%, and 10-year Treasury yields slumped to lowest in a month. The declines came after U.S. retail sales accelerated in March by the most in 10 months as business reopenings, increased hiring and a fresh round of stimulus checks emboldened shoppers, while U.S. March industrial production rose less than expected.“Gold finally trades above recent highs behind a cocktail of lower yields, a soft dollar and a weaker-than-expected industrial production and capacity-utilization report,” said Tai Wong, head of metals derivatives trading at BMO Capital Markets. The production report “indicates the real economy remains uncertain, while the strong retail sales report was purely stimulus-based and transitory.”Bullion has been confined to a narrow trading range this month, with shifts largely driven by movements in the dollar and bond yields. The precious metal has declined more than 7% this year as gold-backed exchange-traded funds witnessed sustained outflows, after playing a crucial role in 2020’s record rally. Net sales continued yesterday.“Gold is unable to make any further significant and sustainable gains due to a lack of support from financial investors,” Daniel Briesemann, an analyst at Commerzbank AG, wrote in a note. “There is still no sign of any trend reversal in gold ETFs.”Spot gold rose as much as 1.9% to $1,769.67 an ounce, the highest since Feb. 26. Futures for June delivery on the Comex rose 1.8% to settle at $1,766.80 an ounce. Spot silver, platinum and palladium also advanced. The Bloomberg Dollar Spot Index declined 0.1%.Bullion rose above its 50-day moving average, but “a decisive move above $1,760 is still required to open a path to $1,800,” said BMO’s Wong.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 firm saw a social media backlash after a nurse claimed staff were turned away for beauty treatments.
Stocks traded higher Friday in another record-setting day on Wall Street, with a batch of stronger-than-expected economic data and corporate earnings results helping fuel a risk rally.
(Bloomberg) -- The direct listing of Coinbase Global Inc. on Nasdaq is a turning point for the whole cryptocurrency sector, according to the firm’s Chief Executive Officer Brian Armstrong.Banks used to hang up on Coinbase’s calls and many people thought the digital-currency platform was a bad idea, Armstrong said during a discussion on the Clubhouse app after the stock’s debut. Now top executives from the banks that helped Coinbase go public are calling to ask how they can get more into crypto themselves, he said.“It feels like a shift in legitimacy not just for Coinbase but the whole industry,” Armstrong said. “Crypto has a shot at being a major force in the financial world.”Coinbase, which fell 14% on its debut Wednesday to close at $328.28, now has a valuation of about $86 billion on a fully diluted basis. That compares with a 2018 funding round that valued it at around $8 billion. The listing was widely anticipated by the wider crypto community, with many coin prices and crypto-affiliated company shares rising in advance of it, before falling back once the trading started.The company’s growth hasn’t been without controversies, such as restrictions Armstrong placed on employee discussions of politics last year, or frequent outages during periods of heavy trading. Some people criticize the level of fees charged by the exchange.There was also a settlement with the Commodity Futures Trading Commission for $6.5 million regarding claims Coinbase had reported inaccurate data about transactions and that a former employee engaged in improper trades.More generally, skeptics maintain that crypto could be in a bubble, and may suffer due to regulatory changes around the globe. Coinbase and its backers see more strength ahead.“There was tremendous depth and richness to what these guys were doing,” said Marc Andreessen, co-founder of investment firm Andreessen Horowitz, one of Coinbase’s biggest shareholders, in a portion of the same Clubhouse discussion talking about what made the company an appealing investment.Andreessen said Coinbase provided a combination of “a company that’s conservative enough to be compliant from a regulatory perspective but also relentlessly innovative.”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) -- GameStop Corp. climbed Wednesday after it took a step to retire nearly all its existing debt as part of its transformation from a brick-and-mortar retailer into an e-commerce marketplace.The stock rallied 18% to $166.53, snapping a seven-day slide, for its biggest jump in 2 1/2 weeks. The video-game retailer said late on Tuesday it’s redeeming $216.4 million of senior notes, following a move to retire $73.2 million in debt last month.More than 21 million shares changed hands Wednesday, double what had been seen over the past two weeks. While trading volume has slowed from the eye-popping activity over recent weeks, Gamestop shares are still up nearly 800% this year, bringing the company’s valuation to almost $12 billion.The video-game retailer is in the midst of a turnaround, spearheaded by activist investor Ryan Cohen, shifting from a brick-and-mortar company and into an e-commerce marketplace able to compete with the likes of Amazon.com Inc..Earlier this month, the company announced plans to offer as much as $1 billion in additional shares. The extra cash cushioning, combined with fewer debt obligations may contribute to more favorable terms for the company in dealings with suppliers and partners.“Debt retirement is what they should have focused on in the first place,” Wedbush analyst Michael Pachter said in an email. “That puts them in a very secure financial position.”Read more: GameStop’s Other Trade Pays Off With Takeout of Junk Bonds (1)Volume Pick-UpBullish options on the video-game retailer were more heavily traded in Wednesday’s session than recent weeks. The increase in small-lot calls could signal a return of the same group of investors who were behind January’s epic short squeeze, according to Susquehanna derivatives strategist Chris Murphy.GameStop’s rally stood out from peers that have captivated retail investors as meme stocks were mixed Wednesday. While movie-theater operator AMC Entertainment Holdings Inc. climbed, cannabis stock Sundial Growers Inc. and Palantir Technologies Inc. dipped.GameStop has been hit by the video-game industry’s shift to online distribution. The company reported disappointing fourth-quarter earnings last month.(Updates share movement and adds details on options trading 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.
(Bloomberg) -- Dieter Wemmer, a veteran insurance executive who was chief financial officer at Allianz SE, is launching a blank-check company to target deals in the sector where he worked for more than three decades, people familiar with the matter said.Wemmer plans to raise about 250 million euros ($300 million) on the Amsterdam stock exchange in May, the people said, asking not to be identified discussing confidential information. He’s teaming up with Murray Wood and Santiago Corral, co-owners of insurance-focused investment firm Nazare Capital, to create the SPAC.The executives have begun speaking with potential investors, the people said. They’re considering seeking targets among technology players in the insurance space, the people said. Wemmer, who’s a German national, will be executive chairman of the SPAC while Wood will serve as its chief executive officer, according to the people.Bank of America Corp. is advising on the SPAC, the people said. Wemmer and a representative for Bank of America declined to comment, while a spokesperson for Nazare couldn’t be reached for comment.There’s an active market for insurance mergers and acquisitions. Low interest rates and outdated technology systems are leading insurers, particularly those offering property and casualty cover, to look at restructurings or buying companies that offer tech they don’t have.Blank-Check FrenzyA veteran of European finance, Wemmer worked at Allianz until 2017 and previously held the CFO role at Zurich Insurance Group AG, where he joined the industry in 1986. He still has board positions at Swiss bank UBS Group AG and Danish renewables giant Orsted A/S. Last year, Wemmer teamed up with activist investor Elliott Management Corp. to push for change at Dutch insurer NN Group NV.He joins a growing cohort of financiers from the region in jumping into the SPAC frenzy, which has been spreading from the U.S. to Europe. Former bank CEOs Jean Pierre Mustier, Martin Blessing and Tidjane Thiam are among those working on blank-check companies this year.These vehicles raise investor money in the equity markets to fund takeovers of privately-held targets and have become firmly established among corporate chieftains, politicians and celebrities, with many launching multiple SPACs.More than 300 blank-check companies globally have completed IPOs this year to raise a combined $101.7 billion, according to data compiled by Bloomberg. That’s already more than last year’s record annual haul.Despite a recent uptick in Europe, the trend is just starting on the continent and the U.S. is still the dominant venue for such listings. Four blank-check have gone public through IPOs on European exchanges so far this year to raise $1.5 billion, about triple the amount raised in the whole of 2020, according to data compiled by Bloomberg.(Adds insurance industry detail 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.
(Bloomberg) -- Bank of America Corp. is poised to sell $15 billion of bonds, setting a fresh record for the largest bond sale by a bank just a day after rival JPMorgan Chase & Co. sold what was then the biggest such offering, according to data compiled by Bloomberg.Investors poured about $25 billion of orders into the deal, according to a person with knowledge of the matter, which will help BofA borrow at cheaper rates than it initially offered. JPMorgan raised $13 billion on Thursday.Major U.S. banks are pouncing on historically low rates to replenish capital and to get cheap funding and investors have responded enthusiastically. On Thursday, Goldman Sachs Group Inc. sold $6 billion of notes.Read more: Big Banks Pounce on Cheap Rates as They Bust Bond Market RecordsTreasuries rallied Thursday as JPMorgan and Goldman Sachs were selling debt, driving 30-year rates to the lowest since early March. Corporate bond yields are usually set in terms of their spread to U.S. rates.Bank of America joined other banking giants in reporting strong results from Wall Street operations on Thursday, with revenue from sales and trading rising 17% and equity underwriting fees more than tripling. The bank also released $2.7 billion in credit reserves.The longest portion of the six-part offering on Friday -- a 21-year security -- is set to yield 115 basis points above Treasuries, according to the person, who asked not to be identified as the details are private.Bank of America is the sole bookrunner on the sale, and the proceeds will be used for general corporate purposes, the person said.(Updates with deal size beginning in 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.
Soaring Chinese demand for luxury Mercedes-Benz cars and higher prices drove a better-than-expected profit for Daimler in the first quarter, helping it navigate the coronavirus crisis. Mercedes-Benz sales in China hit 220,520 vehicles in the quarter, a rise of 60%, and outmatched the German carmaker's performance in Europe where they were up 1.8% to 192,302. "Favourable sales momentum at Mercedes-Benz Cars driven by all major regions, especially China, strongly supported the product mix and pricing in the first quarter," Daimler AG said in a statement on Friday.
Citibank has hinted there won't be any possible layoff and closure of physical branches in the countries it is exiting.