Cathy Engelbert, CEO of Deloitte, explains why she's still optimistic about the future of automation despite fears that it will displace workers.
Cathy Engelbert, CEO of Deloitte, explains why she's still optimistic about the future of automation despite fears that it will displace workers.
(Bloomberg) -- Zimbabwe is considering penalizing domestic banks, telecommunications operators and other businesses over what the government describes as profiteering off the hard currency it makes available at auctions.Lenders could face fines and suspensions, while companies that charge a premium for foreign exchange may be banned from participating in the auctions, central bank Governor John Mangudya said in a phone interview from the capital, Harare.“All the malpractices will be targeted,” he said. “There’s no need to chase foreign currency as if it will run out.”President Emmerson Mnangagwa on Monday threatened unspecified actions against “sharks in the financial sector,” according to the state-owned Herald newspaper, which said unidentified entities are profiteering at the public’s expense. The president’s comments were made during a wide-ranging interview he gave to state-owned television that will be aired on April 17 on the eve of Independence Day celebrations, the paper said.Exchange ClosedMnangagwa has previously issued warnings to private companies he blames for undermining his efforts to turn around an economy plagued by annual inflation of 241% and foreign-currency shortages.Last year, his government closed the Zimbabwe Stock Exchange for five weeks and singled out the largest mobile operator, Econet Wireless Zimbabwe Ltd., for undermining the nation’s currency through its mobile-money service. Econet denied the allegations.The impending action is an attempt to prevent manipulation of the foreign-currency auction system, according to the Herald. The system has provided over $800 million to companies since its introduction in June, though high demand for U.S. dollars by importers means that there is only a limited supply.Monetary authorities met with the Bankers Association of Zimbabwe on April 12 to discuss “due diligence and know-your-customer requirements” in order to ensure economic stability, Mangudya said.Ralph Watungwa, president of the Banker’s Association of Zimbabwe, didn’t immediately answer two calls to his mobile phone seeking comment.Zimbabwe reintroduced its own currency in 2019 after a 10-year hiatus and has been battling bouts of high inflation and shortages of everything from foreign currency to food. The local unit, which was pegged at parity to the U.S. dollar as recently as February 2019, has plunged to 84 per U.S. dollar.The gap between the official exchange rate and parallel market has widened by 36%, with a U.S. dollar selling for 115 Zimbabwean dollars on the streets of Harare.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.
Exchange executives worldwide say the direct listing could spur adoption and acceptance of crypto.
The S&P 500 scored its second closing high this week, and the Dow surpassed its previous peak on April 9. The Nasdaq Composite finished above 14,000 for the first time since Feb. 16 and is now down less than 1% from its Feb. 12 record high ending. The S&P information technology sector also hit an all-time high.
LONDON (Reuters) -Global stocks hit a record high on Friday and oil climbed after strong U.S. and Chinese economic data bolstered expectations of a solid global recovery from the coronavirus-induced slump. "As the economic re-opening accelerates in the coming months, we believe the bull market remains on a solid footing," said Mark Haefele, chief investment officer, UBS Global Wealth Management. MSCI's broadest gauge of world stocks edged higher in early European trade, up 0.2% to a record high.
(Bloomberg) -- Brevan Howard Asset Management is preparing to start investing in digital assets, becoming the latest money manager seeking to exploit the cryptocurrency boom.The firm led by Aron Landy will begin by investing up to 1.5% of its $5.6 billion main hedge fund in digital assets, according to a person with knowledge of the matter. The initial allocation will be overseen by Johnny Steindorff and Tucker Waterman, co-founders of crypto investment firm Distributed Global, the person said, asking not to be identified because the information is private.A spokesman for Jersey-based Brevan Howard declined to comment.The move is the latest signal that cryptocurrencies are going mainstream as Brevan Howard joins the likes of billionaire hedge fund managers Paul Tudor Jones and Marc Lasry in betting on digital assets. Only on Wednesday, crypto exchange Coinbase Global Inc. went public and hit a valuation above $112 billion.Brevan Howard’s fund will bet on the rising values of digital assets, and will focus on a wide range beyond just Bitcoin, the person said.Familiar GroundBrevan Howard is no stranger to digital assets. Co-founder Alan Howard invests his personal money into cryptocurrencies and the firm recently acquired a 25% stake in One River Asset Management, a $2.5 billion firm whose cryptocurrency funds are backed by Howard.The billionaire has been an investor in Distributed Global since early 2018, the person said. That firm also runs a crypto venture capital fund in partnership with Singapore’s Temasek Holdings Pte. All trading will take place through Elwood Asset Management, an affiliate platform started by Howard four years ago, the person said.Bitcoin has more than doubled this year, boosting the market for cryptocurrencies past $2 trillion, while the entry of big financial institutions into the space has been one of the biggest trends in the industry over the past few months. Tesla Inc. now accepts Bitcoin for its electric vehicles, and the company disclosed a $1.5 billion investment in the currency earlier this year.Both Morgan Stanley and Goldman Sachs Group Inc. have also announced plans to offer clients access to crypto investments.On its part, Brevan Howard had been developing its digital trading technologies and assessing the sector’s suitability for investors for the last few years, according to the person. It decided in the fourth quarter of last year that the industry had matured enough for it to deploy a small part of clients cash.Brevan Howard, best known for its macro trading prowess, is in expansion mode following a record year of gains. Investors who abandoned the firm amid years of mediocre returns are coming back: Assets that collapsed by over 80% from their peak to about $6 billion two years ago have since rebounded to above $13 billion.The firm’s main fund is run by a group of traders including Howard himself, Fash Golchin, Alfredo Saitta and Minal Bathwal. It gained 27.4% last year in its best annual return since 2003.(Updates with industry background in 8th paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
(Bloomberg) -- The fight to buy Hertz Global Holdings Inc. out of bankruptcy is escalating after a group of investors that were previously outbid sweetened their deal to give the reorganized company an enterprise value of around $6.2 billion.The amended proposal from Knighthead Capital Management and Certares Management would pay unsecured bondholders in full, and offer existing shareholders equity in the reorganized company, according to people with knowledge of the plan who asked not to be identified discussing a private matter.The new plan includes a private placement of $750 million in reorganized stock from ad hoc equity investors that would be available to eligible shareholders, the people said. Apollo Global Management agreed to provide $2.5 billion in preferred equity financing as part of the amended proposal, the people said. The deal assigns the reorganized Hertz an equity market value of around $5.5 billion.Hertz shares surged as much as 46% Friday morning in New York to trade at $1.79.Representatives for Knighthead, Certares and Apollo declined to comment. A representative for Hertz didn’t immediately respond to a request for comment. The Wall Street Journal earlier reported on the amended plan.Hertz filed for bankruptcy in May when the near-total shutdown of the global travel industry sent its rental revenues plunging. It became a popular stock among day traders, who sent shares of the bankrupt company soaring, even though common shareholders are typically wiped out in Chapter 11 proceedings. Hertz briefly raised funds for its bankruptcy by selling stock, but abandoned the program after the Securities and Exchange Commission questioned the plan.Earlier this month, Hertz chose a rival offer from Centerbridge Partners, Warburg Pincus and Dundon Capital Partners to help it exit bankruptcy. Under that plan, supporting noteholders agreed to support the exchange of unsecured funded debt claims against Hertz for about 48.2% of the equity in the reorganized company and the right to purchase an additional $1.6 billion of shares.The sweetened offer from Knighthead gives the company a new option to consider as it works to leave court protection. Hertz aims to complete the process in June, and has put tentative restructuring terms in place for review and approval by a bankruptcy judge in Wilmington, Delaware.Hertz is rushing to exit court protection to take advantage of the hot stock market and an expected surge in summer travel as more consumers are vaccinated against Covid-19. The industry is raising prices as business and leisure travel surges and household-name rental companies don’t have enough cars for customers to drive off the lot. Firms are adding cars back to their fleets, but can only do so slowly since a semiconductor shortage has hampered production of new cars. Hertz, like rivals that didn’t file bankruptcy, sold large portions of its inventory and cut costs severely to shore up finances when U.S. travel ground to a halt last year. The amended Knighthead and Certares plan also includes $550 million of cash in a recovery pool that would pay general unsecured creditors in full, the people said. It also includes a 250 million euro ($300 million) interim financing plan to help meet the liquidity needs of Hertz’s international businesses, they added.(Updates with bankruptcy exit background in ninth 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) -- U.S. stocks retreated after climbing to an all-time high. Treasuries fell with the dollar. Oil rallied.PayPal Holdings Inc. and Nvidia Corp. paced losses among tech companies in the S&P 500, which had fluctuated for much of Wednesday’s session as traders sifted through earnings from some of the world’s biggest banks. Bitcoin slid in the wake of the debut by cryptocurrency company Coinbase Global Inc. on the Nasdaq.Read: Goldman, JPMorgan Traders Show the Reddit Crowd How It’s DoneWith equities lingering near a record, investors are looking to the earnings season for further catalysts. Expectations of a strong profit rebound have helped markets rally, setting the bar high as reporting gets underway. More broadly, investors are monitoring vaccine developments for any threats to the economic recovery. The Federal Reserve said in its Beige Book that activity has picked up pace amid an improvement in consumer spending.“You’re going to see this tug-of-war continue within markets as investors weigh the prospects of a strengthening economy with the risk of rising inflationary pressures,” said Adam Phillips, managing director of portfolio strategy at EP Wealth Advisors.A quarter that began with retail investors declaring the end of the status quo on Wall Street just ended with big banks tallying surprisingly massive hauls. Goldman Sachs Group Inc. and JPMorgan Chase & Co. -- two of the most gilded names in finance -- kicked off bank earnings season with revenue windfalls from trading and dealmaking, defying warnings from within the industry that good times couldn’t last.Goldman Sachs’s stock jumped, while JPMorgan’s slipped -- undermined by concern over weak demand for loans.Some key events to watch this week:U.S. data including initial jobless claims, industrial production and retail sales come Thursday.China economic growth, industrial production and retail sales figures are on Friday.These are some of the main moves in financial markets:StocksThe S&P 500 fell 0.4% at 4 p.m. New York time.The Stoxx Europe 600 Index gained 0.2%.The MSCI Asia Pacific Index advanced 0.7%.CurrenciesThe Bloomberg Dollar Spot Index fell 0.2%.The euro climbed 0.3% to $1.1979.The Japanese yen appreciated 0.2% to 108.89 per dollar.BondsThe yield on two-year Treasuries rose less than one basis point to 0.16%.The yield on 10-year Treasuries rose two basis points to 1.63%.The yield on 30-year Treasuries climbed two basis points to 2.31%.CommoditiesWest Texas Intermediate crude gained 4.5% to $62.89 a barrel.Gold weakened 0.5% to $1,736.65 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.
Tencent Holdings Ltd raised $4.15 billion on Friday in its second major bond deal in less than a year as global investors were enticed by its attractive pricing and overlooked a regulatory crackdown on China's tech giants. Asia's most valuable company said in a statement it raised $500 million in a 10-year tranche, $900 million in 20-year debt, $1.75 billion in 30 year and $1 billion in 40-year debt. The enthusiastic response contrasted with investor jitters around some state-owned Chinese issuers this week as the delayed release of China Huarong Asset Management Co's annual earnings prompted concerns over its ability to repay offshore debt.
The biggest of the major auto-parts retailers had a bumpy road during the pandemic. But by adding stores and gaining share, the chain looks set to take advantage of a return to normalcy.
Citibank has hinted there won't be any possible layoff and closure of physical branches in the countries it is exiting.
The IRS chief tells Congress the child tax credit payments will arrive on time after all.
Warren Buffett's famous economic measurement shows Orman might be onto something.
China has given domestic and international banks permission to import large amounts of gold into the country, five sources familiar with the matter said, potentially helping to support gold prices after a months-long decline. China is the world's biggest gold consumer, gobbling up hundreds of tonnes worth tens of billions of dollars each year, but its imports plunged as the coronavirus spread and local demand dried up. With China's economy rebounding strongly since the second half of last year, its appetite for gold jewellery, bars and coins has also recovered, and since January domestic prices have been higher than global benchmark rates, making it profitable to import bullion.
Bitcoin fell early on Friday, after Turkey’s central bank decided to ban cryptocurrency payments from the end of the month.
Lawmakers and advocacy groups are pushing the president to take immediate action.
China's GDP expanded by a dizzying 18.3% in the first three months of 2021 from a year earlier, sealing its status as COVID-19's "first in, first out" economy. It was the only major economy that showed an increase in gross domestic product (GDP) last year after successfully controlling the spread of the coronavirus pandemic at home. HOW BIG IS CHINA'S FIRST-QUARTER GDP GROWTH EXACTLY?
(Bloomberg) -- Applovin Corp. fell more than 18% in its trading debut after the mobile apps company and KKR & Co. raised $2 billion in an initial public offering.The shares, priced in the IPO at $80, closed at $65.20 in New York Thursday, giving the company a market value of about $23 billion based on the outstanding shares listed in its filings with the U.S. Securities and Exchange Commission.The company sold 22.5 million shares and investor KKR sold 2.5 million shares on Wednesday at the midpoint of a marketed range of $75 to $85.Co-founder and Chief Executive Officer Adam Foroughi, President and Chief Financial Officer Herald Chen and KKR will have 93.4% of the voting power, according to the company’s filings. Their Class B shares will have 20 votes each, while the shares sold in the IPO will have one vote apiece.‘Milestone’ Day“Today is a milestone. It gave us access to funding to go reinvest back in our business,” Foroughi said in an interview before trading began. “We’re much more interested in where we land three to five years down the road than we are where we are going to trade today.”He compared Applovin’s machine-learning focus to enable content creators to that of Netflix.“We’re entirely focused on that tech enablement platform,” he said. “However, we’ve invested in these creators.”The Palo Alto, California-based company has scaled up and diversified, partly through acquisitions.Machine ZoneApplovin announced in May that it was acquiring game-maker Machine Zone Inc., which people familiar with the matter said was valued in the deal at about $500 million. This year, it bought Berlin-based Adjust in a deal that valued the maker of tools to measure the performances of apps at close to $1 billion, Bloomberg reported.Applovin reported a net loss of $126 million on $1.45 billion in revenue in 2020, due to operating losses, according to its filings. That compared with net income of $119 million on revenue of $994 million the previous year.The offering was led by Morgan Stanley, JPMorgan Chase & Co., KKR, Bank of America Corp. and Citigroup Inc. Applovin’s shares are trading on the Nasdaq under the symbol APP.(Updates with closing share price in second paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
The IRS sent out COVID-19 relief checks to nearly 2M more Americans, including over 700,000 'plus-up' payments for people eligible for more money.
Federal tax returns are due May 17, but many people still need to pay their first quarter 2021 estimated tax payments April 15. Plus more tax tips.
It’s not a good sign that wide divergences between the Dow Jones Industrial Average (DJIA) and the Nasdaq Composite Index (COMP) have become almost commonplace. Consider the number of trading sessions in which there is at least one percentage point spread between the returns of these two indices. On Tuesday, the Nasdaq rose 1.1% while the Dow fell 0.2%.