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FBN’s Lauren Simonetti on how Tesla CEO Elon Musk responded to a customer on Twitter, saying that the company was having delivery problems.
FBN’s Lauren Simonetti on how Tesla CEO Elon Musk responded to a customer on Twitter, saying that the company was having delivery problems.
Morgan Stanley lost nearly $1 billion from the collapse of family office Archegos Capital Management, the bank said on Friday, muddying its 150% jump in first-quarter profit that was powered by a boom in trading and deal-making. Morgan Stanley was one of several banks that had exposure to Archegos, which defaulted on margin calls late last month and triggered a fire sale of stocks across Wall Street. Morgan Stanley lost $644 million by selling stocks it held related to Archegos' positions, and another $267 million trying to "derisk" them, Morgan Stanley Chief Executive James Gorman said on a call with analysts.
(Bloomberg) -- The U.S. refrained from designating any trading partner as a currency manipulator in the Biden administration’s first foreign-exchange policy report, even as Switzerland, Taiwan and Vietnam met thresholds for the label.The Treasury Department said Friday that those three economies met criteria for the manipulator label, including a large trade surplus with the U.S. But it said there was “insufficient evidence” to conclude that the three trading partners showed the intent of “preventing effective balance of payments adjustments or gaining unfair competitive advantage in international trade” to apply the tag.A Treasury official told reporters that the decision not to designate any nation a manipulator should not be seen as a mixed message. In December, the last report done under President Donald Trump designated Switzerland and Vietnam as manipulators.The new assessments signal the Biden administration is taking a less confrontational approach to international currency policy after Trump labeling of China and other countries as manipulators proved ineffective and spurred concerns of politicization.The latest report assesses currency activities through 2020.Covid ImpactThe U.S. acknowledged that the unprecedented nature of the coronavirus pandemic’s impact on the global economy led to creative policy responses by governments and central banks. For that reason, the Treasury said it seeks a deeper understanding of Switzerland’s, Taiwan’s and Vietnam’s currency actions in order to determine if the interventions were done with the intent of gaining an unfair trade advantage, or to cope with the crisis.Ireland and Mexico were added to the Treasury’s watch list, which means they met two of the three criteria for designation. The Treasury kept China, Thailand, India, Japan, South Korea, Germany, Italy, Singapore and Malaysia on the monitoring list.The agency said China’s “failure” to be more transparent around activities at state-owned banks warrants close monitoring. Those banks can act in currency markets with official guidance due to close relationships with China’s central bank.“Treasury is working tirelessly to address efforts by foreign economies to artificially manipulate their currency values that put American workers at an unfair disadvantage,” Treasury Secretary Janet Yellen said in a statement accompanying the report.The manipulator tag has no specific or immediate consequence, beyond any short-term market impacts. But the law requires the administration to engage with the trading partners to address the perceived exchange-rate imbalance. Penalties, including exclusion from U.S. government contracts, could be applied after a year unless the label were removed.Trump EraDuring the Trump era, the Treasury abruptly designated China a manipulator in mid-2019 outside its usual release schedule, only to lift the label five months later to win concessions in a trade deal. The developments raised concerns that the report was being increasingly politicized.That, combined with the December manipulator designations being defied by Switzerland and Vietnam who did not change their policies as a result, has called into question the credibility of Treasury’s foreign-exchange assessments.These concerns continue under Yellen.In 2019, her predecessor Steven Mnuchin used the older of the two active trade laws that inform Treasury’s currency assessments to label China a currency manipulator. Now, Yellen is using that same law to decide that no nation warrants the designation.“The inconsistent use of the same criteria by successive administrations certainly undercuts the notion of the Treasury currency report being a dispassionate and nonpolitical evaluation of other countries’ currency practices,” said Eswar Prasad, an economist at Cornell University who formerly worked in the International Monetary Fund’s China division.Still, he said that Yellen’s “less overtly political approach” may restore some credibility.Swiss officials have repeatedly denied that they are manipulating the franc, and have continued the nation’s purchases of foreign currencies as part of a long-running campaign to fight deflation through negative interest rates and currency intervention.The Treasury noted the impact of monetary policy objectives on the franc, and said it is is in talks to develop “specific actions” to address the causes of Switzerland’s external imbalances.Earlier this month, the International Monetary Fund gave the Swiss National Bank a green light for its purchases of foreign exchange, while also recommending that officials follow counterparts with a strategy review.TaiwanThe U.S. moved Taiwan from its watch list to the separate list of those meeting all three criteria for distortionary currency policies. As with Switzerland and Vietnam, Treasury officials said Taiwan met the criteria laid out in a 2015 law by a wide margin, but declined to name the country as a “manipulator” under a related 1988 act.Taiwan widely exceeded the thresholds for all three criteria, and the U.S. urged the nation to create a plan to address the causes of its currency undervaluation.Taiwan’s central bank has acknowledged intervening in foreign exchange markets to pare gains by Taiwan’s currency against the dollar. Daily efforts to stabilize the Taiwan dollar began in earnest in June 2020 until September. Since then, it appears that the bank has been managing the currency’s appreciation.The bank’s governor, Yang Chin-long, said in March he believed the U.S. might designate Taiwan a currency manipulator, but he didn’t expect serious negative impact for the local economy, given robust U.S. demand for semiconductors. Semiconductors, he said, were the main factor driving Taiwan’s trade surplus with the U.S.As for the dollar, the Treasury highlighted that even after its decline in 2020, it remained “nearly 5% above its 20-year average,” considering the real effective exchange rate -- which adjusts for inflation and is weighted against currencies of U.S. trading partners. (Updates with additional details from 18th 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 direction of the June U.S. Dollar Index on Friday is likely to be determined by trader reaction to 91.555.
Digitex, the world’s first zero-fee crypto futures exchange, has upgraded its offer this week, launching spot markets to enhance the trading experience and make onboarding new users to the exchange much easier.
FRANKFURT (Reuters) -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.
Holley merging with SPAC Empower Ltd. (NYSE: EMPW) Leader in $34 billion fragmented auto enthusiast market Profitable company with 113-year legacy Sales in 2020 +25% to $580 million; 3x biggest competitor Trades at just 10x 2021 Ebitda, well below comparable companies Fox , Thule, YETI Expanding into products for performance EVs Active M&A pipeline, recently […]
(Bloomberg) -- D & Z Media Acquisition Corp., a special purpose acquisition company co-sponsored by Intercontinental Exchange Inc., is in talks to merge with Simplifi Holdings Inc., an advertising technology platform, according to people with knowledge of the matter.The SPAC is seeking to raise new equity to support a transaction that values the combined entity at $1.5 billion or more, said one of the people, who asked to not be identified because the matter isn’t public. Terms aren’t finalized and it’s possible talks could fall apart.Representatives for D & Z, Simplifi and private equity firm GTCR, Simplifi’s majority owner, declined to comment.Simplifi, which also does business as Simpli.fi, makes software that enables buyers of localized advertising to execute campaigns across various digital formats and devices. It says its platform is used by over 30,000 active advertisers including agencies, media groups, networks, and trading desks that collectively run 130,000 active daily campaigns.Simplifi is led by co-founders Chief Executive Officer Frost Prioleau and Chief Technology Officer Paul Harrison. The company recently bolstered its board with the appointment of Lynda Clarizio, a former Nielsen and AppNexus executive.D & Z is led by Chairman and CEO Betty Liu, a media entrepreneur and alumnus of both the New York Stock Exchange and Bloomberg TV. The blank-check firm raised about $288 million in a January initial public offering and said it would focus on finding a targets in the media and education technology sectors. Intercontinental Exchange and Navigation Capital Partners are co-sponsors of the SPAC, filings 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) -- 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.
Gold prices rose to a seven-week high on Friday and were on track for their best week since mid-December as retreating U.S. Treasury yields and a softer dollar bolstered the metal's appeal. Spot gold jumped 0.9% to $1,779.00 per ounce by 10:26 a.m. EDT (1426 GMT), having earlier hit its highest since Feb. 25 at $1,783.55. "We've had many investors abandon some positions because of some extreme technical selling we saw with Treasury yields and that has really provided a strong backdrop here for gold prices to continue to appreciate."
The U.S. economy is "not out of the woods yet," said Dallas Fed President Robert Kaplan.
A particularly busy economic calendar, COVID-19 vaccine news, and geopolitics provided direction in the week. Corporate earnings also drew attention…
(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.
Australian shares closed near 14-month highs as upbeat economic data from the US and China supported hopes of a global economic recovery.
(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.
Evolv Technology CEO Peter George and NewHold Investment Corp. CEO Kevin Charlton Metal detectors and security checks may soon be a thing of the past. Evolv Technology, an AI security screening company, already uses its platform at amusement parks, concert halls and stadiums across the country to provide safety for large crowds. IPO Edge will host […]
(Bloomberg) -- Morgan Stanley surprised investors with a $911 million loss tied to the collapse of Archegos Capital Management, staining what was otherwise a record quarter for revenue and profit.“The current quarter includes a loss of $644 million related to a credit event for a single prime brokerage client, and $267 million of subsequent trading losses through the end of the quarter related to the same event,” Morgan Stanley said Friday in its first-quarter earnings statement.The hit was related to Archegos, Chief Executive Officer James Gorman said on a call with analysts. The CEO called the matter a “very complex event,” and said he was pleased with how the company handled it.The firm’s philosophy is to “cauterize bad stuff” and deal with it as quickly as possible, Gorman said. Archegos won’t change how Morgan Stanley views its prime-brokerage business, but it will be looking hard at certain types of family offices and the adequacy of their financial disclosures, he said.The Archegos hit leaves Morgan Stanley as the only major U.S. bank to be nursing losses from the flameout of Bill Hwang’s family office. The New York-based bank was one of the early backers of Archegos despite the legal taint tied to Hwang, who was previously accused of insider trading and in 2012 pleaded guilty to wire fraud on behalf of his predecessor hedge fund, Tiger Asia Management.“This amount is material and should have been disclosed earlier, especially given the degree of attention prior to earnings,” Mike Mayo, an analyst at Wells Fargo & Co., said in a note to clients. “We expect more from Morgan Stanley when it comes to governance, and are incrementally concerned about complacency based on the tone from today’s conference call.”Shares of the company fell 3.4% to $78.05 at 1:57 p.m. in New York, paring this year’s gain to 14%The Archegos collapse rattled investment banks across continents, with Credit Suisse emerging as the worst hit with almost $5 billion in losses from its exposure to the family office.In the wake of Archegos, Morgan Stanley’s equity traders gave up their No. 1 spot, falling behind Goldman Sachs Group Inc. and JPMorgan Chase & Co., which posted big trading wins earlier this week off a wild quarter for markets.Equities-trading revenue at Morgan Stanley nevertheless rose 17% to $2.88 billion, compared with the $2.6 billion average estimate of analysts surveyed by Bloomberg. Goldman Sachs and JPMorgan have been clawing away at Morgan Stanley’s lead in that business, but until now the firm has managed to stay ahead of the pack. Both rivals posted equities revenue in excess of $3 billion for the quarter.Gorman’s PayIn January, Gorman leaped past JPMorgan’s Jamie Dimon as the best-paid CEO of a major U.S. bank, after being awarded $33 million for the firm’s performance in 2020 while running a firm that’s a third the size of JPMorgan.One reprieve for Gorman’s firm was the timing of the fund’s blowup. In any other quarter, the losses would have stood out more starkly. Instead, the hit came at a time when the bank and all its major peers have smashed one record after another, helping dull the pain.“Such a shame we have to talk about the” Archegos hit, given the strong results throughout the rest of the firm, Glenn Schorr, an analyst at Evercore ISI, said in a report titled, “Other Than That, It Was a Great Quarter, Mrs. Lincoln.”Fixed-income trading revenue at Morgan Stanley rose 44% to $2.97 billion, compared with the $2.2 billion analysts were predicting before earnings season kicked off.Morgan Stanley’s investment bankers pulled in $2.61 billion in fees, compared to the $2 billion analyst estimate, as equity underwriting quadrupled. The quarter proved particularly lucrative with the continued explosion in blank-check companies, better known as SPACs, as well as public offerings from technology companies.Banks are also having to fend off fierce demand for their top talent, with venture-capital firm General Catalyst this month luring away Paul Kwan, Morgan Stanley’s head of West Coast technology investment banking.Wealth-management revenue totaled $5.96 billion, up from $5.68 billion in the previous quarter.The acquisition of E*Trade last year also proved timely, as average daily trading surged in the first quarter, well above its fourth-quarter record. The firm also announced the completion of the Eaton Vance takeover last month, adding another business likely to throw off consistent fee-based revenue.(Updates with analyst’s comment in sixth paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
(Bloomberg) -- Citigroup Inc. plans to exit retail banking in 13 markets across Asia and the Europe, Middle East and Africa region.The bank will instead operate its consumer-banking franchise in both regions from four wealth centers in Singapore, Hong Kong, the United Arab Emirates and London, it said Thursday in a statement. The move is part of an ongoing review of the company’s strategy by Chief Executive Officer Jane Fraser, who took over last month.“This positions us to capture the strong growth and attractive returns the wealth-management business offers through these important hubs,” Fraser said in the statement.Citigroup will exit its consumer franchises in Australia, Bahrain, China, India, Indonesia, South Korea, Malaysia, the Philippines, Poland, Russia, Taiwan, Thailand and Vietnam. The firm will continue to offer products in those markets to customers of its institutional clients group, which houses the private bank, cash-management arm and investment-banking and trading businesses.The New York-based bank has already been building out a wealth-advisory hub in Singapore. The 30,000-square-foot (2,800-square-meter) space is the largest of its kind for the bank and has room for more than 300 relationship managers and product specialists.The withdrawal came as Citigroup reported record quarterly profit, boosted by the flurry of blank-check companies it helped take public in the first three months of the year.“While the other 13 markets have excellent businesses, we don’t have the scale we need to compete,” Fraser said. “We believe our capital, investment dollars and other resources are better deployed against higher returning opportunities in wealth management and our institutional businesses in Asia.”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.
(Bloomberg) -- Gold headed for its best week since December amid a retreat in bond yields and a report that top buyer China may import more of the metal.After weeks trading in a narrow range, gold has advanced as Treasuries yields and the dollar head for weekly losses. Lower yields boost the appeal of bullion, which doesn’t offer interest. Dollar declines helped spur a broad rally in raw materials, with the Bloomberg Commodity Index also on track for its best week of 2021.Bullion is showing tentative signs of breaking out of a slump following three straight monthly losses. Prices rose above the 50-day moving average on Thursday, a positive signal for traders who follow chart patterns. On Friday, bullion extended gains to the highest since February after Reuters reported that China has given banks permission to import a large amount of bullion to meet domestic demand.The overall robust performance in commodities this week was “being supported by a surprise drop in U.S. Treasury yields accompanied by a weaker dollar,” said Ole Hansen, head of commodities research at Saxo Bank. Gold, along with crude oil and copper, “broke higher, thereby potentially signaling renewed momentum attracting fresh buying from speculators.”Spot gold rose 0.8% to $1,778.17 an ounce by 1:43 p.m. in New York. Prices are up about 2% this week, on course for the biggest gain since Dec. 18. Futures for June delivery on the Comex rose 0.8% to settle at $1,780.20 an ounce.Federal Reserve Chairman Jerome Powell’s reiteration of his dovish stance on monetary policy also helped bullion this week. That helped offset the impact of improving U.S. and Chinese economic reports, which could otherwise diminish demand for the metal as a haven.“The economic data published in the U.S. yesterday afternoon turned out for the most part to be significantly better than the market had anticipated,” Commerzbank AG analyst Daniel Briesemann said. “It seems that market participants believed the U.S. Federal Reserve’s assertion this time that it would not react to good data and would tolerate economic overheating.”In other precious metals, silver and platinum advanced.Palladium rose 1.2% after reaching the highest in more than a year. The metal, which reached a record of $2,883.89 in February last year, has benefited from stricter emissions rules that boost usage in autocatalysts.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.
IPO Edge, in partnership with The Palm Beach Hedge Fund Association, hosted a live panel and virtual tasting with Bespoke Capital Acquisition Corp. (NASDAQ: BSPE) and Vintage Wine Estates on Thursday, April 15 at 4 PM EDT. The live event features Bespoke Capital CEO Mark Harms, Vintage Wine Estates President Terry Wheatley, Vintage Wine Estates Brand Ambassador Katy […]