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Facebook reportedly plans to integrate its three messaging platforms. Yahoo Finance's Julie Hyman, Adam Shapiro, Dan Howley and Andy Serwer discuss.
Facebook reportedly plans to integrate its three messaging platforms. Yahoo Finance's Julie Hyman, Adam Shapiro, Dan Howley and Andy Serwer discuss.
Grab’s record-breaking deal to merge with a special purpose acquisition company (SPAC) will raise an eye-popping $4.5 billion in cash. A quick recap: Singapore-based Grab is poised to have a market value of around $39.6 billion after it combines with a SPAC called Altimeter Growth. Altimeter is basically a $500 million pot of money listed on Nasdaq that was looking for a target to merge with (which is why SPACS are sometimes called “blank check” companies).
(Bloomberg) -- SoftBank Group Corp.’s Vision Fund profit may reach an unprecedented $30 billion in the March quarter, almost quadrupling the record it had just set, according to people familiar with the matter.Profit in the unit was supercharged by the successful initial public offering of Coupang Inc., the South Korean e-commerce leader which debuted in New York last month. That will account for the lion’s share of what’s expected to be between $25 billion and $30 billion in reported gains for the three months ended March 31, the people said, asking not to be named because the details are not yet public. SoftBank is scheduled to report results on May 12.The markets are delivering their strongest validation yet for Masayoshi Son’s oft-criticized strategy of pouring massive amounts of cash into mature startups. The Vision Fund’s portfolio of over 160 investments will record its third straight quarter of record profits helped by a global IPO rush that has seen companies worldwide raise more than $200 billion in 2021.When Son takes the stage to report the latest results, he will probably have one more milestone to celebrate: group net income that’s the highest ever for a listed Japanese company in any quarter dating back to 1990, according to data compiled by Bloomberg. SoftBank already holds the top spot, setting the current high of 1.26 trillion yen ($11.5 billion) in June.Coupang’s $4.6 billion offering was the second biggest this year and marks SoftBank’s best return since Alibaba Group Holding Ltd.’s listing in 2014. The coming months will also see some of Son’s largest and most controversial bets test the market, including ride-hailing giants Grab Holdings Inc. and Didi Chuxing as well as the troubled office-sharing company WeWork.“The markets are very encouraged and supportive of what the Vision Fund has been able to do with its investments,” said Justin Tang, head of Asian research at United First Partners in Singapore. “Clearly there is still a lot of money out there that needs to find a home.”Coupang’s stock ended the quarter 41% higher than its mid-March IPO. The Vision Fund invested in November 2018 in a $2 billion deal that valued Coupang at $9 billion. That funding followed $1 billion from SoftBank itself in 2015, valuing the startup at about $5 billion. The Japanese conglomerate’s 33% stake was worth close to $28 billion as of March 31.SoftBank will also book a valuation gain of about $2 billion on its stake in Uber Technologies Inc., which rose about 7% in the quarter, according to the people. The fund sold $2 billion worth of stock in the ride-hailing company in January, eking out a small profit. Another $1.2 billion gain will come from its stake in Auto1 Group SE, a German wholesale platform for used cars which went public in February.The Vision Fund will also book a gain on its stake in ByteDance Ltd., the Chinese parent of hit video app TikTok. SoftBank owns about 3% of the company, a stake it acquired mostly at a $63 billion valuation in secondary markets in addition to a direct investment at a $75 billion valuation, the people said. The company has since hit $140 billion, according to market researcher CB Insights, and traded at $250 billion in private transactions, Bloomberg News reported.Even WeWork, one of Son’s biggest missteps in recent years, will contribute to profit. After its failed IPO attempt and a bailout by SoftBank in 2019, the office-sharing company saw its worth tumble to $2.9 billion last year amid the pandemic, a far cry from its once-lofty $47 billion valuation. WeWork now plans to go public via a blank-check company in a deal that would value it at $9 billion.Some Vision Fund investments will see their value marked down, though gains will more than offset those losses, the people said. The fund will take a writedown of about $500 million on Greensill Capital, the supply-chain finance company owned by billionaire Lex Greensill that filed for insolvency last month. The valuation of Oyo Hotels will be reduced by several hundred million dollars too.“Coupang is a home run for the Vision Fund. And there is likely to be more good news around Didi, ByteDance, Grab and even WeWork,” said Atul Goyal, senior analyst at Jefferies. “But profits are meaningful when they recur. These gains are neither operating nor recurring.”SoftBank doesn’t have to sell equity holdings to book income, so its profits are often just on paper. It reports income when the value of companies like Coupang rise, boosting the value of its stock. Its accounting practices comply with industry standards.About half of the capital raised in the IPOs so far this year has gone to special purpose acquisition companies and SoftBank has joined the frenzy, listing several blank-check companies since the start of the year. The three SPACs created by the Vision Fund have a combined market capitalization of about $1.5 billion.At the previous earnings briefing in February, Son said SoftBank may see between 10 and 20 public listings a year. Grab said this week it will go public through the largest-ever merger with a blank-check company, valuing the Southeast Asian ride-hailing and delivery giant at about $40 billion. Its Chinese counterpart Didi has filed with the U.S. Securities and Exchange Commission for an IPO that could value the company as highly as $70 billion to $100 billion.“The wind will probably continue to be at Son’s back for some time,” said United First Partners’ Tang. “But matching last fiscal year’s performance would be quite a feat.”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.
TOKYO (Reuters) -Nissan Motor Co will slash production at severalfactories in Japan next month, three sources with direct knowledge of the plan told Reuters on Thursday, in the latest hit to an automaker from a global shortage of semiconductors. Japan's third-largest automaker will idle its factory inKyushu, southern Japan, for eight days between May 10 and 19,the sources said, declining to be identified because the plan isnot public. Two other domestic assembly plants, the Oppama plant and a Nissan Shatai factory in Kyushu, will cancel the night shift over 15 days between May 10-28, and a fourth factory in Tochigi, eastern Japan, will idle for 10 previously unplanned days next month, the sources said.
(Bloomberg) -- Zhejiang Geely Holding Group Co. is considering raising about $1 billion to help expand its iconic British sports and racing automotive business Lotus Cars into the electric vehicles market in China, according to people familiar with the matter.Geely is working with advisers to sound out potential investor interest in a funding round that could value Lotus’s EV operations at about $5 billion, the people said, asking not to be identified because the matter is private.Separately from the fundraising, the Chinese company is also weighing an initial public offering of Lotus Cars, or just the British carmaker’s EV business, as soon as next year, the people said. A listing could value the entire business, including its combustion-driven sports and racing cars, at more than $15 billion, the people said.Geely Automobile Holdings Ltd. shares rose as much as 7.6% on Wednesday in their biggest intraday gain since Jan. 26. The stock closed 5% higher, outperforming a 1.4% increase in the benchmark Hang Seng Index.Chinese billionaire Li Shufu’s Geely, which also controls Sweden-based Volvo Car AB, purchased a stake in Group Lotus in 2017. It owns 51% of the company, including both Lotus Cars and consultancy Lotus Engineering, while Malaysia’s Etika Automotive Bhd. owns the remainder, according to a press release. Under Geely, Lotus in 2019 launched its all-electric Evija hypercar, a 1,972-horsepower coupe that costs about $2 million.Considerations are ongoing and details including size and timing could change, the people said. A Geely representative declined to comment. Representatives for Lotus didn’t immediately comment when contacted by Bloomberg News.Geely is seeking to expand into electric vehicles amid a booming market in countries including China. Polestar, the electric carmaker controlled by Volvo Car and its owner Geely, is exploring options for going public as soon as this year, Bloomberg News has reported.Investor mania over EV-related stocks has pushed the share prices of players including Nio Inc. and Xpeng Inc. to stratospheric levels. That intense interest has also spawned a wave of EV upstarts raising billions and racing to list via special-purpose acquisition companies. More than $180 billion has been raised globally through SPAC IPOs in the past 12 months, Bloomberg-compiled data show.(Updates with Geely Automobile share price 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.
(Bloomberg) -- SoftBank Group Corp. is investing in Swiggy at a $5.5 billion valuation, the second funding for the Indian food delivery startup in as many weeks as capital floods the world’s fastest growing internet arena.The $450 million funding came from Masayoshi Son’s Vision Fund 2, a person familiar with the matter said. The financing awaits approval from Indian antitrust regulators, the person added, asking not to be identified talking about a private deal.Bangalore-based Swiggy competes with multiple food delivery startups including fellow unicorn Zomato, backed by Ant Group Co. and Tiger Global, and the food delivery arm of Amazon.com Inc’s India unit, which recently unveiled its service to Prime members in dozens of zip codes in the city of Bengaluru, formerly Bangalore.Swiggy had closed an $800 million funding round from investors including Falcon Edge Capital LP and Goldman Sachs Group Inc. about a week ago. That financing punctuated a historic week for India’s technology industry, when in the space of four days, investors minted at least six new unicorns or startups with a valuation of $1 billion or more. Representatives for SoftBank and Swiggy didn’t immediately respond to requests for comment.Read more: Six New Unicorns in Four Days Marks Historic Boom for India TechThe Economic Times reported earlier Swiggy was close to securing investment from SoftBank. Global investors such as Tiger Global and South Africa’s Naspers Ltd. see growing opportunity in the country’s startup scene. The nation of 1.3 billion people has seen the rapid adoption of smartphones in recent years, explosive growth of inexpensive internet services and a new generation of ambitious entrepreneurs.The venture investments are helping to diversify India’s industry, best known for tech services companies such as Tata Consultancy Services Ltd. and Infosys Ltd. A Credit Suisse Group AG report last month found there are about 100 unicorns in India with a combined market value of $240 billion, in sectors from e-commerce and fintech to education, logistics and food-delivery.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
Cathie Wood's Ark funds bought $246 million worth of Coinbase shares on the cryptocurrency exchange's Nasdaq debut on Wednesday and sold some Tesla shares, according to their daily fund trading summary. A chunky $168 million of Coinbase shares were added to its flagship ARK Innovation fund, and the remainder went into its next generation and fintech innovation funds. Notably, one of Wood's funds sold a $4.4 million stake in New York Stock Exchange owner Intercontinental Exchange.
(Bloomberg) -- Medical technology giant Becton Dickinson & Co., billionaire Bill Gates and Khosla Ventures are among investors backing robotics startup Vicarious Surgical Inc.’s merger with special purpose acquisition company D8 Holdings Corp.The transaction gives the combined entity an enterprise value of about $1.1 billion, the companies said, confirming an earlier Bloomberg News report.In addition to Becton Dickinson, Gates and Khosla, other investors set to participate in the deal’s $115 million private investment in public equity, or PIPE, include former Google CEO Eric Schmidt’s Innovation Endeavors and E15 VC, a venture firm. Bloomberg last month reported that Vicarious and D8 were in merger talks.Charlestown, Massachusetts-based Vicarious, led by Chief Executive Officer Adam Sachs, develops robotics technology with the aim of improving patient outcomes and the efficiency of surgical procedures, while reducing overall health-care costs. Sachs founded the company with Sam Khalifa, its chief technology officer, and Barry Greene, a bariatric and general surgeon, and management will remain in place following the D8 deal.Vicarious, whose technology has been granted “breakthrough device” designation by the U.S. Food and Drug Administration, is expected to have more than $425 million in cash following the transaction, and estimated 2025 revenues of $355 million.Hong Kong-based D8’s president Donald Tang will join Vicarious’ board, alongside AIDS researcher David Da-I Ho. The deal is expected to close in the third quarter. Once it is complete, Vicarious is set to trade on the New York Stock Exchange under the symbol RBOT.Surgical RobotsD8 was “blown away” by Vicarious’s technology, Tang said in an interview. “After doing due diligence, we were floored by what’s possible in terms of stabilizing surgical procedures,” he said, adding that D8 will seek to leverage its relationships in Asia and elsewhere to help Vicarious expand outside the U.S.A SPAC merger is the “right path” for Vicarious, Sachs said, as the deal bolsters its cash balance by as much as $345 million without the company having to raise multiple private rounds of funding. “As we move to commercialize our product, being public gives us a level of credibility we may not have had as a private company,” he said.The company is expected to produce its first year of revenue in 2023 and Sachs said its low cost basis will help its products gain traction. He estimates that Vicarious’ technology, which can be inserted into a patient’s body through a 1.5 centimeter incision, is five to ten times cheaper than legacy surgical robots.(Updates throughout with confirmation of earlier report.)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) -- Oil wavered Thursday after breaking out of a month-long range with countries like the U.S. highlighting the demand recovery starting to take shape.Futures in New York edged higher alongside a broader market rally, following a nearly 5% jump in prices in the previous session. U.S. jobless claims fell to a new pandemic-era low, while retail sales in the country accelerated by the most in 10 months -- providing the latest signs of the economic comeback gaining pace there.Still, even after U.S. crude stockpiles fell to the lowest since February, portions of West Texas Intermediate’s forward curve continue to point toward near-term weakness. The nearest contract traded at a discount of as much as 11 cents to the following month in a bearish pattern known as contango, which points toward oversupply.“There was a nice cocktail of bullish data this week, justifying a break out of the top of the range,” said Bob Yawger, head of the futures division at Mizuho Securities. “But there’s still plenty of crude oil around,” which limits prices gains.Oil remains firmly above its most recent trading range, where it had been stuck near $60 a barrel since mid-March as some regions faced a resurgence in virus cases. Continued signs of a stronger U.S. market are alos pushing prices higher. In the last week, the number of miles driven on the country’s interstates rose versus the same period in 2019 for the first time since the pandemic began.The market is “cutting down on the froth from this week’s enthusiasm,” said, Bjornar Tonhaugen, head of oil markets at consultant Rystad Energy. “The recovery in demand is coming and oil price increases with it – the road is just a bit winding on the way there.”Crude’s sharp rally has been accompanied by gains in the market’s structure that continued into Thursday. The much-watched spread between the nearest two December contracts is on track for its strongest close since late March. That’s a sign that traders are growing more bullish on the market.There are reasons to be cautious, however. The pandemic is raging in India, while OPEC and its allies are about to start adding more supplies. Another wild-card is Iran, which is seeking to revive a 2015 nuclear deal and have U.S. sanctions removed to lift crude exports, but progress remains uncertain. The demand picture in Europe is also wobbly, with toll road traffic in France last week the weakest since May.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) -- Indonesia offered higher yields to sell the most bonds in two months, testing appetite for emerging-market assets as the government continues to build up a buffer for stimulus spending.The finance ministry sold 21.68 trillion rupiah ($1.48 billion) of non-Islamic debt, excluding T-bills on Tuesday. That’s the biggest since the sale in mid-February and compared with just 3.75 trillion rupiah at the previous conventional debt auction two weeks ago. The larger amount sold saw the bid-to-cover ratio plunge to 1.86, the lowest in a year.“Domestic yields are still more than 100 basis points lower than a year ago but clearly markets feel there is a need to re-price,” said Philip McNicholas, Asean FX and rates strategist at Bloomberg Intelligence. “It is also possible this is taken as a sign of desperation to fund by the market.”The bigger debt sales by Indonesia, seen as a bellwether for risk appetite, suggest that investors are returning to emerging markets as Treasury yields slid in recent weeks. Still, the higher yields demanded suggest that global funds continue to see a risk of higher U.S. yields in the months ahead.Indonesia’s 10-year yield fell three basis points to 6.57% on Wednesday.“The incoming bids were healthier than before, but the below-target acceptance reflects misalignment in appropriate yields levels as seen by the government versus current market level,” said Frances Cheung, rates strategist at Oversea-Chinese Banking Corp. in Singapore.Weekly FlowsThere are signs that demand may improve. For one, purchases by overseas investors accounted for 8.4% of total debt sold, up from about 4.3% at the previous offering. The nation’s bonds also saw the first back-to-back weekly inflow since February as Treasury yields declined from their March 30 peak.Emerging-market bonds are likely to see inflows as investors look for alternatives to U.S. high-yield credit, according to BNP Paribas Asset Management.Just two weeks ago, Indonesia’s finance ministry said it wasn’t in a rush to meet its debt sale target due to a large cash balance.Auction DetailsThe difference between the highest awarded yields and average awarded yields, or tails, have widened across the tenors, suggesting the finance ministry accepted higher borrowing costs.The table below shows the difference between cut-off yields and average awarded yields in basis points.(Adds foreign participation, inflow 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.
The brand saw a social media backlash after a nurse claimed staff were being turned away for beauty treatments.
The IRS commissioner says the child credit payments will arrive on time after all.
(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, after spending $8.8 billion in the first three months, Chief Financial Officer Wendell Huang said. The company had previously forecast spending of as much as $28 billion. Sales in the June quarter may be between $12.9 billion and $13.2 billion, beating the average $12.8 billion seen by analysts, though its target for gross margin came in below expectations at 49.5% to 51.5%. Full-year revenue may climb 20% in dollar terms, ahead of the “mid-teens” growth predicted in January.“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.”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.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 of NT$136.2 billion, 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. The stock advanced 1.1% on Thursday, before the company reported earnings.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 company comments throughout)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
Amazon's future remains very bright contends EvercoreISI tech analyst Mark Mahaney.
TOKYO (Reuters) -Toshiba Corp CEO Nobuaki Kurumatani resigned on Wednesday amid controversy over a $20 billion buyout bid from CVC Capital Partners, while its shares rose on reports that KKR & Co and Brookfield are also planning offers. Satoshi Tsunakawa, who led the company before Kurumatani and until Wednesday was chairman, will once again assume the helm. CVC's offer to take the Japanese conglomerate private and retain incumbent management was perceived by some in the company as designed to shield Kurumatani from activist shareholders, Toshiba sources have said.
Positive signs related to the state of the economy aren’t causing interest rates to rise, one economist noted.
Bitcoin takes a breather as billionaire investor Mike Novogratz warns of market correction.
(Bloomberg) -- Activist investment firm Elliott Management Corp. has built a significant stake in GlaxoSmithKline Plc, according to a person with knowledge of the matter, putting pressure on the U.K. pharmaceutical company in the midst of its turnaround effort.Elliott, which is run by billionaire Paul Singer, has a history of agitating for changes in the health sector, including pushing for the sale of Alexion Pharmaceuticals Inc. before it was bought by AstraZeneca Plc in December for $39 billion. It has also sought changes at Alkermes Plc, Allergan, Bayer AG and others.Glaxo has been seeking a revival since Chief Executive Officer Emma Walmsley took the reins in early 2017 and is preparing for a big change in strategy as it moves to split off its consumer health business next year. The company has also set an ambitious goal of more than doubling the number of blockbuster drugs in its portfolio by 2026.Glaxo has lagged peers, most notably U.K. rival Astra, in recent years, with Walmsley moving to reshape the business and rebuild its pipeline. In 2018, the company put its consumer-health arm into a joint venture with Pfizer Inc. as part of an effort to refocus on drug development and expand into lucrative fields such as oncology. The move laid the foundation to separate Glaxo into two U.K.-based companies -- pharmaceuticals and vaccines in one and consumer as another.The company also bought cancer-drug maker Tesaro Inc. for $5.1 billion in 2018, followed by a $4.2 billion collaboration with Germany’s Merck KGaA.Elliott’s move “signals change to come in a company which, despite the hopes that arrived with its new management in 2017, has been an underperformer with a questionable acquisition strategy,” John Murphy, an analyst at Bloomberg Intelligence, said in a note Thursday.Shares GainA representative for Glaxo declined to comment on the Elliott stake. The position is a multibillion-pound holding, according to the Financial Times, which reported the news earlier. A spokesperson for Elliott didn’t immediately respond to a request for comment.The shares, which are down about 10% over the past 12 months, rose as much as 7.7% in London.What Bloomberg Intelligence SaysWhat’s Elliott going to do that Glaxo isn’t already doing? Activist Elliott’s newly disclosed position signals change to come in a company which, despite the hopes that arrived with its new management in 2017, has been an underperformer with a questionable acquisition strategy. Elliot may want to get some cash returned to shareholders through an IPO, rather than a full spin-off. It’s also possible that Elliott would want to force a sale of the pharma business.--John Murphy, BI pharma analystGlaxo has also struggled to make its mark on the Covid-19 pandemic. The company took the decision early on to use its expertises in adjuvants -- substances used to generate a more robust immune response to a vaccine - to partner with other vaccine-makers rather than creating its own. One of its most-promising partnerships was with Sanofi, but the companies suffered a setback last year after a dosing error forced them to restart mid-stage trials.The British pharmaceutical giant has had better luck with a Covid-19 antibody treatment. The therapy from Glaxo and Vir Biotechnology Inc. showed a significant reduction of hospitalization and death for at-risk patients last month and the companies have applied for emergency authorization in the U.S.Glaxo isn’t the only big European activist target this year. Following a campaign including activist Bluebell Capital Partners Ltd., French yogurt maker Danone SA is searching for new CEO after splitting up that role and the chairman’s position.Elliott, which was founded in 1977, has nearly $42 billion in assets under management and has advocated for changes at companies such as Twitter Inc., AT&T Inc. and SoftBank Group Corp. in recent years.(Updates with analyst comment, details on Glaxo’s Covid-19 strategy from 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.
Builders face challenges in completing homes, at a time when the housing market is desperate for more inventory
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.
(Bloomberg) -- U.S. stocks climbed to record highs and bond yields fell as investors bet that a higher-than-forecast rise in inflation won’t be enough to slow economic stimulus measures.The S&P 500 closed at an all-time high even after the U.S. recommended pausing Johnson & Johnson vaccines amid health concerns. The tech-heavy Nasdaq 100 also set a record while the Dow Jones Industrial Average finished in the red. Consumer prices rose more than expected last month but investors speculated the acceleration was not fast enough to warrant any Federal Reserve policy change. The drop in yields weighed on bank shares.“The market has been skittish about rates for some time,” said Mike Loewengart, managing director of investment strategy at E*Trade Financial. “While this may cause some short-term volatility, investors have been pretty steadfast in their faith in a full economic recovery.”J&J shares fell as officials agreed to the pause and started an investigation into a link from its shot to rare and severe blood clots, while rivals Moderna Inc. and Pfizer Inc. advanced. The U.S. anticipates having enough other vaccines during the period.Fund managers across the world now see inflation, a taper tantrum and higher taxes as bigger risks than Covid-19, according to the latest Bank of America Corp. survey.“A lot of growth and inflation have already been priced into the market,” said Emily Roland, co-chief investment strategist at John Hancock Investment Management. “It’s almost as if you need to exceed those expectations in order to see a more pronounced reaction from markets.”Although policymakers at the Federal Reserve expect a bump in consumer prices to be short-lived, many traders disagree, with fears of faster CPI playing out across duration-heavy assets from bonds to tech stocks.Treasuries extended gains after the government’s auction of 30-year bonds was greeted with strong demand.Meanwhile, Bitcoin jumped to an all-time high as the mood in cryptocurrencies turned bullish before Coinbase Global Inc. goes public. Oil traded near $60 a barrel.Some key events to watch this week:Banks and financial firms begin reporting first-quarter earnings, including JPMorgan Chase & Co., Citigroup Inc., Bank of America Corp., Morgan Stanley, Goldman Sachs Group Inc.Economic Club of Washington hosts Fed Chair Jerome Powell for a moderated Q&A on Wednesday.U.S. Federal Reserve releases Beige Book on Wednesday.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: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.