Feb.05 -- FanDuel Chief Executive Officer Matt King discusses sports betting ahead of the Super Bowl and says he doesn't expect any falloff in volumes after the pandemic ends. He speaks on "Bloomberg Markets."
Feb.05 -- FanDuel Chief Executive Officer Matt King discusses sports betting ahead of the Super Bowl and says he doesn't expect any falloff in volumes after the pandemic ends. He speaks on "Bloomberg Markets."
(Bloomberg) -- Brent crude now trades above fiscal breakeven prices for the four biggest oil producers in the Middle East after Saudi Arabia convinced fellow OPEC+ members to keep output largely unchanged.The shock move by OPEC+ triggered a rally in Brent prices, which rose to almost $70 a barrel. That’s higher than annual average levels needed for the cartel’s largest producers, including Saudi Arabia, to balance their budgets this year.If oil prices stay at current levels, “we would see fiscal surpluses for the larger Gulf Cooperation Council economies,” said Monica Malik, chief economist at Abu Dhabi Commercial Bank. “This provides more fiscal space to support economic activity and recovery.”Analysts at Goldman Sachs Group Inc. and JPMorgan Chase & Co. raised their price forecasts for Brent after the OPEC decision, while Citigroup Inc. said crude could top $70 before the end of this month.Budget deficits in the Arab Gulf, where economies are reliant on oil, widened after prices crashed in 2020. OPEC+ agreed last year to take about 10% of global supply off the market to stem the plunge and while the group has slowly rolled back some of those cuts, it is curtailing more than 7 million barrels of daily production.Still, Brent prices have averaged just over $59 so far this year -- below the breakeven level for most gulf countries. Saudi Arabia, the Arab world’s largest economy and OPEC’s biggest producer, has posted successive budget shortfalls in the past seven years, a trend expected to continue into 2024, according to projections from the International Monetary Fund.Despite higher oil prices, “key non-oil sectors will continue to be impacted by the pandemic,” Malik said. “It will also be a balancing act for oil producers to manage the tightening in the oil market, whilst not halting the global recovery outlook.”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) -- It’s not just in meme stocks that the fate of short sellers is a key theme. Short bets are increasingly in vogue in the $21 trillion Treasuries market, with crucial implications across asset classes.The benchmark 10-year yield reached 1.62% Friday -- the highest since February 2020 -- before dip buying from foreign investors emerged. Stronger-than-expected job creation and Federal Reserve Chair Jerome Powell’s seeming lack of concern, for now, with leaping long-term borrowing costs have emboldened traders. In one telltale sign of which way they’re leaning, demand to borrow 10-year notes in the repurchase-agreement market is so great that rates have gone negative, likely part of a move to short the maturity.The trifecta of more fiscal stimulus ahead, ultra-easy monetary policy and an accelerating vaccination campaign is helping bring a post-pandemic reality into view. There are of course risks to the bearish bond scenario. Most prominently, yields could rise to the point that they spook stocks, and tighten financial conditions generally -- a key metric the Fed is focused on for guiding policy. Even so, Wall Street analysts can’t seem to lift year-end yield forecasts fast enough.“There’s a lot of tinder being put now on this fire for higher yields,” said Margaret Kerins, global head of fixed-income strategy at BMO Capital Markets. “The question is what is the point that higher yields are too high and really put pressure on risk assets and push Powell into action” to try and tamp them down.Share prices have already shown signs of vulnerability to increasing yields, especially tech-heavy stocks. Another area at risk is the housing market -- a bright spot for the economy -- with mortgage rates jumping.The surge in yields and growing confidence in the economic recovery prompted a slew of analysts to recalibrate expectations for 10-year rates this past week. For example, TD Securities and Societe Generale lifted their year-end forecasts to 2% from 1.45% and 1.50%, respectively.Asset managers, for their part, flipped to most net short on 10-year notes since 2016, the latest Commodity Futures Trading Commission data show.Auction PressureIn the days ahead, however, BMO is eyeing 1.75% as the next key mark, a level last seen in January 2020, weeks before the pandemic sent markets into a chaotic frenzy.A fresh dose of long-end supply next week may make short positions even more attractive, especially after record-low demand for last month’s 7-year auction served as a trigger to push 10-year yields above 1.6%. The Treasury will sell a total of $62 billion in 10- and 30-year debt.With expectations for inflation and growth taking flight, traders are signaling that they anticipate the Fed may have to respond more quickly than it’s indicated. Eurodollar futures now reflect a quarter-point hike in the first quarter of 2023, but they’re starting to suggest that it could come in late 2022. Fed officials have projected they’d keep rates near zero until at least the end of 2023.So while the market is leaning toward loftier yields, the interplay between bonds and stocks is bound to be a huge focus going forward.“There’s definitely that momentum, but the question is how well risky assets adjust to the new paradigm,” said Subadra Rajappa, head of U.S. rates strategy at Societe Generale. “We’ll be watching next week, when the dust settles after the payrolls data, how Treasuries react and how risky assets react to the rise in yields.”What to WatchThe economic calendarMarch 8: Wholesale trade sales/inventoriesMarch 9: NFIB small business optimismMarch 10: MBA mortgage applications; CPI; average weekly earnings; monthly budget statementMarch 11: Jobless claims; Langer consumer comfort; JOLTS job openings: household change in net worthMarch 12: PPI; University of Michigan sentimentThe Fed calendar is empty before the March 17 policy decisionThe auction calendar:March 8: 13-, 26-week billsMarch 9: 42-day cash-management bills; 3-year notesMarch 10: 10-year notesMarch 11: 4-, 8-week bills; 30-year bondsFor 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) -- Virgin Galactic Holdings Inc. tumbled Friday after its billionaire Chairman Chamath Palihapitiya offloaded shares worth about $213 million in the space-tourism company founded by Richard Branson.Palihapitiya, who has helped drive the frenzied growth of blank-check companies, disposed of 6.2 million shares at an average price of $34.32 this week, based on a filing with the U.S. Securities and Exchange Commission. He still owns 15.8 million shares with his partner Ian Osborne through investment firm Social Capital Hedosophia, amounting to about a 6.5% stake. Palihapitiya previously sold shares worth almost $100 million in December, filings show.Palihapitiya said he sold the shares to fund an investment to help fight climate change.“The details of this investment will be made public in the next few months,” he said in a statement Friday. “I remain as dedicated as ever to Virgin Galactic’s team, mission and prospects.”Read more: The king of SPACs wants you to know he’s the next Warren BuffettVirgin Galactic’s shares fell 9.9% to $27.29 in New York on Friday and have slid more than 50% since their peak in mid-February.The Las Cruces, New Mexico-based company merged with Social Capital’s first SPAC in 2019. Palihapitiya has since launched blank-check companies that have merged with businesses across health insurance, financial services and real estate including Opendoor Technologies Inc. and Clover Health Investments Corp.Opendoor fell 9.8% on Friday, while Clover Health rose 7.5% after earlier sliding. Other Palihapitiya SPACs such as Social Capital Hedosophia Holdings Corp IV and V reversed midday losses to end up for the day.Palihapitiya, 44, has made a fortune for himself and his investors through SPACs. The former Facebook Inc. executive has raised more than $4 billion via blank-check firms, using social media to talk up the investments and becoming one of the most prominent figures in the phenomenon, which has everyone from Colin Kaepernick to former House Speaker Paul Ryan racing to market their own.He’s also a lightning rod for skeptics who dismiss his success as the product of self-promotion and see blank-check companies as proof of a bubble inflated by government money-printing.A month ago, Palihapitiya said it would only be under the rarest of circumstances that he’d reduce his holdings of any SPAC.“If I could really just go for it, I wouldn’t sell a share of anything I buy because I believe in it,” he said Feb. 8 in a interview on Bloomberg Television’s “Front Row.” “But every now and then, I run into liquidity constraints, like everybody else.”At the time, Palihapitiya had just recently sold 3.8 million Virgin Galactic shares. He said he did so because his family office called needing cash for other purposes.Shares DropSocial Capital’s merger with Virgin Galactic -- where Palihapitiya is chairman -- made the Branson startup the world’s first publicly traded space-travel venture. The transaction raised about $800 million, with Palihapitiya also directly contributing $100 million.While the shares surged in the wake of the listing, they have tumbled since a February decision to delay the next flight to space. The new schedule also pushed back plans to carry Branson, 70, on a separate mission before Virgin Galactic is expected to take its first flight with passengers paying for the trip.The company on Thursday announced the departure of its chief space officer, George Whitesides, saying he has decided to pursue potential opportunities in public service. Whitesides, who served as chief executive officer for a decade until July 2020, will remain chairman of a four-person Space Advisory Board. Swami Iyer is joining Virgin Galactic later this month as president of aerospace systems.Though Virgin Galactic has hundreds of clients lined up to pay at least $250,000 for a 90-minute flight to the edge of space, it has been a slow journey since the venture was founded in 2004. Plans were put on hold for four years in 2014 after a space plane broke up mid-flight, killing one pilot and injuring another.(Updates stock prices 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.
(Bloomberg) -- Elon Musk set records last year for one of the fastest streaks of wealth accumulation in history. The reversal is underway, and it’s steep.The Tesla Inc. chief executive officer lost $27 billion since Monday as shares of the automaker tumbled in the selloff of tech stocks. His $156.9 billion net worth still places him No. 2 on the Bloomberg Billionaires Index, but he’s now almost $20 billion behind Jeff Bezos, who he topped just last week as world’s richest person.Musk’s tumble only underscores the hard-to-fathom velocity of his ascent. Tesla shares soared 743% in 2020, boosting the value of his stake and unlocking billions of dollars in options through his historic “moonshot” compensation package.His gains accelerated into the new year. In January, he unseated Bezos as the world’s richest person. Musk’s fortune peaked later that month at $210 billion, according to the index, a ranking of the world’s 500 wealthiest people.Consistent quarterly profits, the election of President Joe Biden with his embrace of clean technologies and enthusiasm from retail investors fueled the company’s rise, but for some, its swelling valuation was emblematic of an unsustainable frothiness in tech. The Nasdaq 100 Index fell for the third straight week on Friday, its longest streak of declines since September.Bitcoin InvestmentMusk’s fortune hasn’t been solely subject to the forces buffeting the tech industry. His net worth has risen and slumped recently in tandem with the price of Bitcoin. Tesla disclosed last month it had added $1.5 billion of the cryptocurrency to its balance sheet. Musk’s fortune took a $15 billion hit two weeks later after he mused on twitter that the prices of Bitcoin and other cryptocurrencies “do seem high.”Extreme volatility has roiled many of the world’s biggest fortunes this year. Asia’s once-richest person, Chinese bottled-water tycoon Zhong Shanshan, relinquished the title to Indian billionaire Mukesh Ambani last month after losing more than $22 billion in a matter of days.Read more: Ambani Again Richest Asian as China’s Zhong Down $22 BillionQuicken Loans Inc. Chairman Dan Gilbert’s net worth surged by $25 billion on Monday after his mortgage lender Rocket Cos. was said to be the next target of Reddit day traders. His fortune has since fallen by almost $24 billion. Alphabet Inc. co-founders Sergey Brin and Larry Page are among the biggest gainers on the index this year. They’ve each added more than $13 billion to their fortunes since Jan. 1.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.
U.S. stocks slumped in volatile trading on Friday with the tech-heavy Nasdaq heading for its worst week since March 2020, as fears over rising borrowing costs offset optimism about a strong economic rebound following blowout monthly jobs report. The benchmark 10-year U.S. Treasury yields hit a new one-year high of 1.626% after nonfarm payrolls increased by 379,000 jobs last month, blowing past a rise of 182,000 forecast by economists polled by Reuters. "Investors are still trying to figure what they want in a battle between continued easy fiscal policies or an actual economical recovery which would require higher rates and they haven't made that decision yet," said Randy Frederick, vice president of trading and derivatives for Charles Schwab in Austin.
Personal finance guru Suze Orman said the receipt of a tax refund indicates "something's radically wrong," since the money returned to filers could otherwise have accrued value over the period it stood in the government's possession.
(Bloomberg) -- Texas regulators declined to rescind $16 billion in alleged overcharges for electricity during last month’s blackouts, leaving the state’s power market facing a potential financial crisis.“Decisions were made about these prices in real time based, on information available to everybody,” said Arthur D’Andrea, chair of the Public Utility Commission of Texas during a meeting Friday. “It is nearly impossible to unscramble this sort of egg.”The state’s independent market monitor had recommended that $16 billion in charges be reversed, saying that the Electric Reliability Council of Texas, known as Ercot, overpriced power for two days during the crisis.Retroactively adjusting those prices could have offered sweeping relief to companies facing astronomical bills in the wake of the grid emergency. With many generators crippled by the cold, electricity prices skyrocketed, squeezing anyone who had to buy power on the wholesale market. The grid operator now faces a $2.5 billion shortfall as more than a dozen companies face default. At least one utility has already filed for bankruptcy.While utility commissioners didn’t close the door repricing in the future, they didn’t embrace the idea.“Repricing the energy -- I would be more inclined to say we’re not going to do that,” said Commissioner Shelly Botkin. D’Andrea agreed, adding, “It looks like you’re protecting consumers. I promise you’re not.”The commission also declined to vote on a request to retroactively adjust the price of certain grid services during the emergency, a move that would have offered relief to distressed companied and potentially saved consumers $2 billion, according to the market monitor. So-called ancillary services, which help maintain the flow of electricity on the system, jumped above $20,000 a megawatt-hour during the crisis. Retail electricity providers and others had asked for those charges to be capped at $9,000.Texas’s biggest power generators have generally opposed any kind of repricing. But ahead of Friday’s meeting, Vistra Corp. told regulators in a filing that energy prices on Feb. 18 and 19 -- the days after the rolling outages ended -- should be changed “to an equitable calculation of the market clearing price.”“Vistra continues to believe that the Commission should not take an arbitrary, piecemeal approach to repricing,” the company said in its filing. “But acting without allowing all market participants to engage is likely to create another set of parties that will be adversely affected by the new pricing structure.”For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
Is the market telling us that in the not too distant future, oil will no longer be sine qua non for Exxon, or even that Exxon will be driven out of business? Maybe to both, though not quite yet.
(Bloomberg) -- Concern is mounting in corporate credit markets globally as longer-term Treasury yields continue to rise, leading borrowers from New York to Tokyo to delay bond sales and strategists to warn of trouble ahead.Gauges of credit fear jumped in Europe for investment-grade and high yield debt on Friday. Two borrowers that had expected to sell bonds in the U.S. opted to push their offerings into next week, after a stronger-than-expected jobs report brought fresh inflation concerns and lifted the 10 year Treasury rate briefly above 1.6%. The extra yield that investors demanded to own U.S. corporate bonds increased 4 basis points on Friday to 96 basis points, the biggest jump since Nov. 12, Bloomberg Barclays index data show.In the U.S. junk market, Ronald Perelman’s Vericast Corp. withdrew a $1.775 billion bond offering after failing to reach an agreement with investors on terms. And in Asia, two state-owned firms in India withdrew planned rupee note sales on Thursday and at least three Japanese companies have put off yen debt offerings in recent days.Still, there are signs that the party isn’t over just yet for corporate bonds. In the U.S. credit derivatives market, the Markit CDX North American Investment Grade Index, which investors use to hedge against defaults on company notes, fell from a four-month high, signaling that firms trading that instrument are a bit less concerned about credit risk. Dealers expect as much as $50 billion of bond sales next week, after more than $65 billion of sales this week.But market sentiment may be shifting. On Thursday, companies selling bonds in the U.S. got orders for just 1.8 times the amount of debt for sale, far below the average of 3.2 times for this year or four times for all of last year, according to data compiled by Bloomberg.Strategists are starting to sound alarms. Bank of America Corp. cut U.S. investment-grade credit to underweight in a note dated Thursday, citing its expectations that yields will continue to rise, which will likely push credit spreads wider. The underweight is a temporary trade, strategists led by Hans Mikkelsen wrote.Citigroup Inc. warned high-grade investors to “brace for fund outflows” in a Thursday note. Spread tightening is no longer offsetting rising Treasury yields, strategists led by Daniel Sorid wrote, adding that a flight-toward shorter duration strategies may be coming.The speed at which rates have risen is a concern for Barclays Plc, which is watching for a “shift in sentiment” on credit, according to a Friday note. Spreads have been resilient so far, “but there is some risk for spreads in the near term from a more disorderly move higher in rates,” strategists Bradley Rogoff and Shobhit Gupta wrote.Sentiment soured Thursday after Federal Reserve Chairman Jerome Powell told a Wall Street Journal webinar that the recent run-up in yields was notable, but declined to be drawn on what tools might be used if disorderly conditions or any persistent tightening in financial conditions threatened the Fed’s goals. With energy prices rising and Covid-19 vaccines fueling bets that an economic rebound will spur inflation, financing costs have started to bounce back from recent lows.In Europe, issuance remains robust for now, and notwithstanding recent bouts of turmoil, selling bonds remains cheaper than it was at the beginning of the coronavirus crisis.Companies and governments have sold over 407 billion euros ($487 billion) of bonds so far this year, the region’s fastest pace of issuance ever, according to data compiled by Bloomberg.“Issuers want to take advantage of this supportive environment provided by the central banks, before the market starts to anticipate tapering,” said James Cunniffe, director for corporate syndicate at HSBC Holdings Plc. “As we enter the second quarter, we expect to see a more normalized level of supply reverting back to previous years’ volumes.”U.S.Mobile gaming company Playtika Holding Corp. sold its debut junk bond Friday.A group of unsecured lenders to Hertz Global Holdings Inc. are proposing an alternative reorganization of the rental car company that would take it public, a move that counters a plan to sell the company to two investment funds for as much as $4.2 billion.For deal updates, click here for the New Issue MonitorFor more, click here for the Credit Daybook AmericasEuropeBooming ethical debt sales have increased the market share of green, social and sustainability debt to 17% of this year’s syndicated debt volumes, from around 7% a year earlier.The much maligned London interbank offered rate is finally within sight of retirement after the U.K. Financial Conduct Authority confirmed that the final readings for most rates will take place on Dec. 31The Republic of Italy’s debut green bond was the most-subscribed deal in Europe’s primary market this week, according to data analyzed by BloombergAsiaChina’s Ji’an Chengtou Holding Group was the sole borrower selling a dollar bond on Friday.“Inflation is likely to rise sharply in developed and emerging markets in the coming months on unfavorable base effects and higher commodity prices,” said Michael Biggs, macro strategist and investment manager at GAM in London. “We do not think the rise in inflation will be sustained, but it could scare the market”Combined with relatively lower liquidity versus investment grade and potential outflows, Asia high yield is ripe for a correction, according to Ek Pon Tay, a senior portfolio manager for emerging market debt at BNP Paribas Asset ManagementIn mainland China, a recent jump in defaults has led investors to favor safer assets, which is being reflected in smaller risk premiums for local-currency top-rated corporate bonds(Updates figures 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.
Bitcoin’s increasing reliance on purchase announcements for short rallies may not be an entirely healthy trend.
(Bloomberg) -- European Central Bank officials will set policy this week against a backdrop of investors betting on a global upturn even as the euro zone remains mired in pandemic lockdowns and painfully slow vaccinations.President Christine Lagarde will need to test her institution’s current stimulus plans against the challenges presented by those contrasting situations. While some of her colleagues have signaled concern over rising global bond yields, driven partly by the faster vaccine drive and bigger stimulus plans of the U.S., others are taking it in their stride for now. Investors will be watching Monday’s bond-buying data to see if the ECB ramped up purchases last week.Meanwhile the ECB will assess the damage to growth from another lost quarter, with lockdowns throughout the euro region freezing activity as health authorities’ immunization efforts struggle to gain traction compared with the U.K. and U.S. Along with the decision on Thursday, Lagarde will unveil new quarterly forecasts at a press conference.Where the Frankfurt institution can take some comfort is that it already has extensive stimulus in place. The centerpiece of that is its pandemic purchase program, whose original aim was to keep yields in check. That’s currently set to last at least another year.But sooner or later, as officials observe how a recovery takes shape, they are going to have to decide whether the support currently pledged with that tool is enough.What Bloomberg Economics Says:“The ECB has emphasized its intention to maintain favorable financing conditions in an effort to support the recovery. We anticipate a clear message from the Governing Council that higher bond yields are triggering an unwarranted tightening of conditions.”--Maeva Cousin, David Powell and Jamie Rush. For full preview, click here.Elsewhere, Canada, Serbia and Kazakhstan are among countries with interest-rate decisions, the OECD presents its latest economic forecasts, and the U.K. will release data that may show the initial impact of post-Brexit trading.Click here for what happened last week and below is our wrap of what is coming up in the global economy.U.S. and CanadaInvestors in the U.S. are watching for the latest consumer price data Wednesday as debate heats up over fears of inflation rising in pockets of the economy. Other reports due out this week include updates on the federal budget, weekly jobless claims and consumer sentiment. Federal Reserve policy makers are in blackout ahead of the central bank’s next meeting on March 16-17.President Joe Biden’s signature $1.9 trillion Covid-19 relief bill passed the Senate on Saturday, following a more than 25-hour marathon of amendment votes that was completed only after a lengthy interruption while Democrats settled an intra-party dispute over unemployment aid. The measure, the American Rescue Plan Act, now heads back to the House, where Majority Leader Steny Hoyer said a vote will be held Tuesday.Bank of Canada policy makers meeting Wednesday are likely to indicate they have no plans to withdraw stimulus from the economy any time soon, even as they prepare to adjust their quantitative easing program.For more, read Bloomberg Economics’ full Week Ahead for the U.S.Europe, Middle East, AfricaA turning point in the U.K.’s pandemic response is due on Monday, when schools in England reopen. The measure is an initial step unveiled as part of Prime Minister Boris Johnson’s plan to unlock the economy as vaccinations roll out.Britain’s other pressing economic challenge, its exit from the European Union, may feature in gross domestic product for January. That report on Friday will reveal a glimpse of the growth impact from the country’s new trading relationship with the bloc as of the start of this year, in addition to the third lockdown.The U.K.’s two most senior economic policy makers will also speak, with Bank of England Governor Andrew Bailey delivering a speech, and Chancellor of the Exchequer Rishi Sunak testifying to Parliament’s Treasury Committee about last week’s budget.In the euro region, policy makers will be bound to a quiet period before the ECB decision later in the week. German industrial production data for January on Monday will signal how the factory base there is weathering the global slump and a continuing lockdown.Elsewhere on the European continent, Serbia’s central bank will release its latest policy decision on Thursday, showing whether officials will keep the interest rate on hold at 1% for a third month after a surprise cut to that level in December.Data on Tuesday will probably show the South African economy still contracted from a year earlier in the three months through December, even as it’s expected to reflect strong quarter-on-quarter annualized expansion. Israel will move into the next stage of reopening its economy from lockdown restrictions, with restaurants and cafes that will be allowed to open for full service in the world’s most vaccinated country.For more, read Bloomberg Economics’ full Week Ahead for EMEAAsiaChinese inflation numbers on Wednesday and credit figures for February will all be closely watched after PMIs pointed to slowing momentum for the world’s No. 2 economy. Trade data on Sunday showed exports surged in the first two months of the year, reflecting strong global demand for manufactured goods, though figures were partly skewed by the low base in 2020 when the economy was in lockdown.Bank of Japan Deputy Governor Masayoshi Amamiya speaks on Monday ahead of a policy review later this month. The words of one of the principal architects of yield-curve control will be closely scrutinized for possible signaling from the central bank of what is in the pipeline.A raft of data including household spending, wages and bankruptcies will show how the Japanese economy was faring during the state of emergency, while revised GDP figures for the last quarter may show slightly slower growth after the release of weaker capital spending data last week.For more, read Bloomberg Economics’ full Week Ahead for AsiaLatin AmericaIn Chile on Monday, look for year-on-year inflation data to come in right around the 3% target, where expectations appear well-anchored, yet again.On Tuesday, Mexico’s inflation reports are the next-to-last price readings before the central bank’s March 25 meeting. The figures here may keep a quarter-point interest rate cut in play.In Brazil events have overtaken policy, with the February report out Thursday expected to show inflation bumping up against the top of target range. Economists see a strong likelihood of a half-point interest rate increase at next week’s central bank meeting while swap traders have priced that in with six more to follow by year-end.Later in the day, Argentina’s statistics agency posts consumer price data, and Peru’s central bank is expected to keep the key rate unchanged at 0.25%.The week concludes with January reports on Brazilian retail sales and Mexico’s industrial production.For more, read Bloomberg Economics’ full Week Ahead for Latin AmericaFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
A wave of electric vehicle related companies are flooding the public markets this year. This follows a slew of companies which went public last year.
As U.S. technology shares stumble, investors are debating whether the decline is an opportunity to scoop up bargains or a sign of more pain to come for stocks that have led markets higher for years. The Nasdaq Composite, an index heavily populated by tech and growth names, has slumped 8.3% since its Feb 12 closing record, over three times the decline for the S&P 500. Drops in popular growth stocks have been even steeper, with Tesla shares off 27% and Peloton down 32%.
(Bloomberg) -- Dip buyers drove a rebound in stocks after an earlier bout of selling pushed the Nasdaq 100 down 10% from a record.All major groups in the S&P 500 advanced, while the tech-heavy gauge climbed more than 1.5% as giants Amazon.com Inc. and Apple Inc. erased their losses. Robinhood Markets Inc., the trading platform behind the boom-and-bust swing in GameStop Corp.’s shares, has chosen the Nasdaq for its eventual initial public offering, according to a news report. Earlier Friday, equities retreated as U.S. jobs data topped estimates, fueling anxiety the economy could run too hot and kick up inflation. Benchmark 10-year yields stabilized after hitting 1.6%.Friday’s turnaround in financial markets wiped out the S&P 500’s drop for the week. The intense volatility of the past few days was a test to stock bulls who see the recent spike in Treasury yields as an indication of brighter prospects for the economy and corporate profits. While concern over equity valuations have emerged, several analysts say that as long as data continue to improve, any selloff would present dip-buying opportunities.“Many investors are going to be buying these dips here, capital continues to be pouring into equities,” said Tony Bedikian, head of global markets at Citizens Bank. Bond yields are still “incredibly low, so equity yields are still very attractive to investors,” he added.U.S. Treasury yields have been rising because of a much stronger economic outlook and are not a cause for worry -- or a call to policy action -- said Federal Reserve Bank of St. Louis President James Bullard. His remarks follow Chairman Jerome Powell’s Thursday caution that rising yields had caught his eye and he would be “concerned by disorderly conditions in markets or persistent tightening in financial conditions.”“As a central banker I am always concerned if there is disorderly trading or something that looks panicky,” Bullard said Friday in an interview with Wharton Business Radio. “That would catch my attention. But I think we are not at that point.”These are some of the main moves in markets:StocksThe S&P 500 rose 1.9% at 4 p.m. New York time.The Stoxx Europe 600 Index slid 0.8%.The MSCI Asia Pacific Index fell 0.6%.The MSCI Emerging Market Index decreased 0.6%.CurrenciesThe Bloomberg Dollar Spot Index increased 0.4%.The euro dipped 0.4% to $1.1917.The Japanese yen depreciated 0.4% to 108.36 per dollar.BondsThe yield on 10-year Treasuries rose less than one basis point to 1.57%.Germany’s 10-year yield climbed one basis point to -0.30%.Britain’s 10-year yield increased three basis points to 0.756%.CommoditiesWest Texas Intermediate crude climbed 3.9% to $66.29 a barrel.Gold rose 0.1% to $1,698.65 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.
Stocks turned negative after the Labor Department's February jobs report handily exceeded expectations, reaffirming the building momentum in the economic recovery, but also stoking a rise in Treasury yields and concerns over an economic overheating.
(Bloomberg) -- More than a third of Australian homeowners are planning to sell in the next five years, according to a report by Westpac Banking Corp., as they look to cash in on a booming market driven by low mortgage rates and an improving economy.The report showed 35% of households surveyed were considering selling, more than double the amount seen prior to the pandemic. More than one in ten were already in the process of putting their property on the market, or planning to do so in the next twelve months.“It is absolutely a seller’s market at the moment,” Matt Hassan, a senior economist at Westpac, said in a media release. “The research suggests the situation will rebalance in coming months as more sellers come onto the market, however demand is still expected to remain strong, driving a sustained lift in prices this year and next.”Australia’s housing market in February posted its biggest monthly price gain in 17 years, dispelling fears of a Covid-induced downturn. Economists think the gains can continue: Goldman Sachs Group Inc. said Friday that prices will rise 10% this year, fueled by low interest rates and improved sentiment, although the bank also noted there are risks ahead including a potentially more hawkish Reserve Bank.The Westpac report also pointed to lingering caution, with 51% of respondents saying they’re actively holding off from listing their property straight away, while 66% said high moving costs were a big barrier to selling.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 premium subsidies could extend coverage to more than a million Americans.
ARK Investment founder Cathie Wood says her new Tesla price target is coming soon. What will it be? Barron's hazards a back-of-the-envelope guess.
The bill that passed the Senate makes payments harder to get. Your tax return might help.
Congress is nearing passage of the third economic stimulus check it will send out to you and other taxpayers as part of its Covid-19 relief bill.