Brad McMillan Commonwealth Financial Network's Chief Investment Officer joins The Final Round to discuss the impact of the coronavirus outbreak on financial markets.
Brad McMillan Commonwealth Financial Network's Chief Investment Officer joins The Final Round to discuss the impact of the coronavirus outbreak on financial markets.
WASHINGTON/SEOUL (Reuters) -South Korean battery makers LG Energy Solution and SK Innovation Co agreed on Sunday to settle disputes over electric-vehicle (EV) battery technology, avoiding a potential setback for U.S. EV ambitions. The settlement after marathon talks by affiliates of two of South Korea's biggest conglomerates was announced just hours before a Sunday night deadline for President Joe Biden's administration to decide whether to take the rare step of reversing a U.S. International Trade Commission decision (ITC). In a statement, Biden called the settlement "a win for American workers and the American auto industry.... We need a strong, diversified and resilient U.S.-based electric vehicle battery supply chain".
(Bloomberg) -- A significant part of the French aluminum businesses belonging to embattled British metals mogul Sanjeev Gupta has sought protection from creditors, the company said on Sunday.Alvance Aluminium Group entered voluntarily into “conciliation proceedings” supervised by a court-appointed agent for its three downstream businesses, its spokesman said in a statement. The mediator will try to stave off insolvency by working out arrangements between the French units and their creditor, a process that could last as long as 10 months. Its upstream smelter in Dunkirk is not affected.The move, first reported by the Australian Financial Review, comes as Gupta fights to save his business following the collapse of key financier Greensill Capital.“The management of those businesses will now work collaboratively with the conciliator and the businesses’ stakeholders to find sustainable solutions for the sites and ensure business continuity,” the spokesman said by email.The Alvance factories make car parts and employ almost 1,000 workers between them. GFG acquired them two years ago with a pledge to save jobs, revitalize their operations and make them more environmentally friendly, the AFR said.Greensill collapsed last month after its key insurer pulled the plug on a policy that protected investors in its bonds.(Updates to clarify three downstream businesses seek protection)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) -- Asia’s top ride-hailing startups are pushing ahead with listing plans, as they seek to take advantage of a boom in equity offerings to fund expansion in everything from food delivery to autonomous driving.Beijing-based Didi Chuxing has filed confidentially with the U.S. Securities and Exchange Commission for an initial public offering that could raise several billion dollars, according to people with knowledge of the matter. Its Southeast Asian peer Grab Holdings Inc. aims to announce a merger with a blank-check company in the U.S. as soon as this week in a deal valued at more than $34 billion, the people said.These listings pave the way for some of the largest tech debuts globally this year as demand for ride services and ride-sharing jumped after pandemic-induced disruptions in Asia. Didi and Grab are also capitalizing on a rebound in tech stocks as the Nasdaq Composite Index is again charging toward an all-time high.Didi has tapped Goldman Sachs Group Inc. and Morgan Stanley as underwriters for its U.S. listing which could value the company at as much as $70 billion to $100 billion, the people said, asking not to be identified because the information is private. It is raising $1.5 billion through a revolving loan facility to shore up capital ahead of the share sale, Bloomberg News reported last week.The startup is also exploring a potential dual listing in Hong Kong at a later time, one of the people added.Didi, the Chinese version of Uber Technologies Inc., acquired its U.S. rival’s China business in 2016. The SoftBank Group Corp.-backed company is stepping up efforts to grow its presence in strategically important sectors like autonomous driving and technologies like artificial intelligence chips. It has also just raised about $1.5 billion for its on-demand trucking unit earlier this year, Bloomberg News has reported.Separately, Singapore-based Grab has attracted backing from T. Rowe Price Group Inc. and Temasek Holdings Pte for its planned merger with Altimeter Growth Corp., the people said. The firms have expressed interest in joining a private investment in public equity offering, or PIPE, to support Grab’s combination with the blank-check company, the people said. BlackRock Inc. is also in talks to participate in the PIPE, which could raise about $4 billion, they added.At a valuation of more than $34 billion, Grab’s deal could become the biggest SPAC merger ever, according to data complied by Bloomberg, and would see the startup become one of the first Southeast Asian unicorns to go public through a blank-check company.Read more: Grab’s $34 Billion SPAC Deal Puts Southeast Asia Tech on the MapDidi and Grab are set to test investor appetite for the capital-intensive ride-hailing business. Uber, which raised $8.1 billion in an IPO in 2019, saw its share dive in March 2020 as the pandemic led to lockdowns in major cities globally. The stock has since quadrupled and even reached a new high in February this year.Details of Didi and Grab’s listings could still change as deliberations continue, the people said. Representatives for Didi, Grab, Goldman Sachs and Morgan Stanley declined to comment.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) -- Toshiba Corp.’s Chief Executive Officer Nobuaki Kurumatani has seen a sharp drop in support from executives and other employees in internal surveys, according to people familiar with the matter.Employees who have confidence in the CEO fell to less than 60% in an internal January poll, down from more than 90% last year, said the people who asked not to be identified as the process is private. More than 20% expressed a lack of confidence in his leadership, up from less than 5% previously they said.The survey results prompted Toshiba to conduct detailed interviews with a narrower group of about 30 top executives and more than half of them expressed a lack of confidence in Kurumatani. Toshiba implemented its internal survey system in 2016 as the company was recovering from a years-long accounting scandal.Toshiba spokeswoman Midori Hara confirmed that the company conducts the survey every year without disclosing the results.Shares gave up some of their gains after Bloomberg’s report, with the stock up 5.7% after rising as much as 7.6% earlier in the day.The declining confidence raises questions about Kurumatani’s future at the company as it confronts activist shareholders and a potential buyout offer. CVC Capital Partners, a U.K.-based fund where Kurumatani previously worked as Asia chief, expressed preliminary interest in acquiring the company for about 5,000 yen per share, Bloomberg News has reported. The University of Tokyo graduate and longtime banker has been CEO and president of Toshiba since 2018.Kurumatani is aware of the survey results and that they may affect his future at the company, one of the people said. The board is skeptical of the CVC proposal because it included few concrete details, the person said, adding that the private equity firm said it would respect current management.Read More: Toshiba Board Urges Caution Over CVC Offer, Sending Stock LowerThe surveys don’t have any binding force. But the result could prompt Toshiba’s nominations committee to remove Kurumatani from its list of director recommendations put forward to shareholders in June, one person said, because the no-confidence levels were by far the highest since the system was installed.Kurumatani faces opposition outside the company too. He held on to his position by a slim margin last year, when only 57.2% of Toshiba shareholders approved of keeping him in the job. Questioning the transparency and process of that vote, Toshiba’s largest investor Effissimo Capital Management has requested an independent investigation, which was green-lit at an extraordinary shareholder meeting in March.(Updates with share price in fifth paragarph)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) -- China slapped a record $2.8 billion fine on Alibaba Group Holding Ltd. after an anti-monopoly probe found it abused its market dominance, as Beijing clamps down on its internet giants.The 18.2 billion yuan penalty is triple the previous high of almost $1 billion that U.S. chipmaker Qualcomm Inc. had to pay in 2015, and was based on 4% of Alibaba’s 2019 domestic revenue, according to China’s antitrust watchdog. The company will also have to initiate “comprehensive rectifications,” from protecting merchants and customers to strengthening internal controls, the agency said in a statement on Saturday.The fine -- about 12% of Alibaba’s fiscal 2020 net income -- helps remove some of the uncertainty that’s hung over China’s second-largest corporation. But Beijing remains intent on reining in its internet and fintech giants and is said to be scrutinizing other parts of billionaire founder Jack Ma’s empire, including Ant Group Co.’s consumer-lending businesses and Alibaba’s extensive media holdings.Alibaba used its platform rules and technical methods like data and algorithms “to maintain and strengthen its own market power and obtain improper competitive advantage,” the State Administration for Market Regulation concluded in its investigation. The company will likely have to change a raft of practices, like merchant exclusivity, which critics say helped it become China’s largest e-commerce operation.“The high fine puts the regulator in the media spotlight and sends a strong signal to the tech sector that such types of exclusionary conduct will no longer be tolerated,” said Angela Zhang, author of “Chinese Antitrust Exceptionalism” and director of Centre for Chinese Law at the University of Hong Kong. “It’s a stone that kills two birds.”Alibaba’s practice of imposing a “pick one from two” choice on merchants “shuts out and restricts competition“ in the domestic online retail market, according to the statement.The government action sends a clear warning to the tech sector as the government scrutinizes the influence that companies like Alibaba and social media giant Tencent Holdings Ltd. wield over spheres from consumer data to mergers and acquisitions.The investigation into Alibaba was one of the opening salvos in a campaign seemingly designed to curb the power of China’s internet leaders and their billionaire founders. The company has come under mounting pressure from authorities since Ma spoke out against China’s regulatory approach to the finance sector in October. Those comments set in motion an unprecedented regulatory offensive, including scuttling Ant Group Co.’s $35 billion initial public offering.Alibaba said it will hold a conference call Monday morning Hong Kong time to address lingering questions around the antitrust watchdog’s decree.“China’s record fine on Alibaba may lift the regulatory overhang that has weighed on the company since the start of an anti-monopoly probe in late December,” Bloomberg Intelligence analysts Vey-Sern Ling and Tiffany Tam said, describing the fine as a small price to pay to do away with that uncertainty.”Further ActionStill, it remains unclear whether the watchdog or other agencies might demand further action. Regulators are said for instance to be concerned about Alibaba’s ability to sway public discourse and want the company to sell some of its media assets, including the South China Morning Post, Hong Kong’s leading English-language newspaper.The Hangzhou-based firm will be required to implement “comprehensive rectifications,” including strengthening internal controls, upholding fair competition, and protecting businesses on its platform and consumers’ rights, the regulator said. It will need to submit reports on self-regulation to the authority for three consecutive years.“Alibaba accepts the penalty with sincerity and will ensure its compliance with determination. To serve its responsibility to society, Alibaba will operate in accordance with the law with utmost diligence, continue to strengthen its compliance systems and build on growth through innovation,” the company said in a statement on Saturday.Faced ChallengesChief Executive Officer Daniel Zhang said in a memo to employees on Saturday that Alibaba always reflected and adapted when it faced challenges. He called for unity among staff, saying the company should “make self-adjustments and start over again.”The Communist Party-run People’s Daily newspaper said in a commentary on Saturday that the punishment involves specific anti-monopoly measures regulatory authorities take to “prevent the disorderly expansion of capital.”“It doesn’t mean denying the significant role of platform economy in overall economic and social development, and doesn’t signal a shift of attitude in terms of the country’s support to the platform economy,” the newspaper said. “Regulations are for better development, and ‘reining in’ is also a kind of love.”(Updates with company’s comment from 14th 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.
Bill Gates appeared on CNBC on Good Friday to discuss his climate-related work for the Economic Club of New York. The conversation veered off into the wild and wooly world of special purpose acquisition companies (SPACs). Gates, an early backer of QuantumScape (NYSE:QS) and QS stock, suggested that people do what he’s doing and only get involved with quality SPACs. Source: Paolo Bona / Shutterstock.com The assumption here is that QuantumScape is such a company. Is he right? I’ll explore this subject further. It Helps to Own QS Stock If You’re a Billionaire If you bought 100 shares of QuantumScape stock on three occasions in 2021: Jan. 6 ($63.03), Feb. 17 ($66.52), and March 22 ($64.29), a back-of-the-napkin estimate suggests you’ve got a paper loss of $35,134, 26% less than the $19,384 you would have paid for 300 shares. InvestorPlace - Stock Market News, Stock Advice & Trading Tips That’s not so great. Of course, if you bought 100 shares each time it fell back to earth, you’d be a very happy person. Maybe not Bill Gates-happy, but content, nonetheless. 7 Great Stocks to Buy Under $10 Bloomberg Quint contributor Chris Bryant recently discussed how Gates is right to suggest private companies are going public way too quickly, in large part, because SPACs are raising gobs of money and issuing boatloads of shares to merge with these immature businesses. Never mind that they’re doing so at ridiculously high financial projections. However, Bryant’s link to Yet Another Value Blog makes me think most of these SPAC IPOs aren’t worth the paper they’re written on. I had been moving in that direction myself in February when I wrote that I was skeptical of Lucid Motor’s ability to garner 8% of the global electric vehicle (EV) market share. Here’s what I wrote on Feb. 25: Companies like Tesla (NASDAQ:TSLA) have struggled for years before tasting success. So, I’m highly skeptical when someone implies it will be simple to go from zero production to 8% global market share of any product, let alone something as complicated as an electric vehicle. In that regard, this SPAC era reminds me of the dot-com bubble. The fact that Canoo’s (NASDAQ:GOEV) business model is leaking profusely tells me that even SPACs, I think, have a chance really don’t. Mind you, in fairness to myself; I did say on March 15 – before it released a dreadful Q4 2020 report on March 29 – that it was only a fun money play below $15. Everyone else should stay away. If you bought at $9, your margin of safety is significantly higher, although not by much. So, back to billionaire Bill Gates. Gates Can Afford to Be Wrong Bill Gates didn’t become one of the richest people in the world by being wrong a lot. Sure, as a lifelong risk-taker, he’s probably failed more than you or I, but he’s got the lakefront home in Seattle to lick his wounds. The fact that Gates is backing QuantumScape – not to mention Volkswagen (OTCMKTS:VWAGY) is in for an additional $100 million investment on top of its original $100 million – suggests that if there’s a company whose projections might pan out, it would be the maker of next-generation solid-state lithium-metal electric batteries. On the other hand, while his risks might get bigger and bigger, they become less and less of his financial net worth. That doesn’t mean he doesn’t care about losing money – every penny lost is a penny that doesn’t go to the big issues his foundation is trying to overcome – that was evident by his statement he’ll try to stick to quality SPACs like QS. InvestorPlace’s Tom Taulli recently stated that its stock remains extremely volatile, as evidenced by the big move when it announced issuing 10.4 million shares. As part of the additional $100 million from VW, it will issue an additional 15.2 million shares. That, too, will likely rile investors. As a result, Taulli suggests caution is wise in this situation. Especially if the market is worth the estimated $1 trillion by 2040 that Baird analyst Ben Kallo says it is. More volatility might enable you to buy QS stock below where it’s currently trading. As volatile as QS stock has been in 2021, it appears $42 is the resistance line. Year-to-date, it’s bounced off $42 on three occasions, just as it’s bounced off $65 on the high side. The Bottom Line Bill Gates is right about SPACs and QuantumScape. Be skeptical about most SPACs and cautiously optimistic about QS stock. I know I will be. On the date of publication, Will Ashworth did not have (either directly or indirectly) any positions in the securities mentioned in this article. Will Ashworth has written about investments full-time since 2008. Publications where he’s appeared include InvestorPlace, The Motley Fool Canada, Investopedia, Kiplinger, and several others in both the U.S. and Canada. He particularly enjoys creating model portfolios that stand the test of time. He lives in Halifax, Nova Scotia. At the time of this writing Will Ashworth did not hold a position in any of the aforementioned securities. More From InvestorPlace Why Everyone Is Investing in 5G All WRONG It doesn’t matter if you have $500 in savings or $5 million. Do this now. Top Stock Picker Reveals His Next Potential 500% Winner Stock Prodigy Who Found NIO at $2… Says Buy THIS Now The post Bill Gates Is Right About SPACs and QuantumScape appeared first on InvestorPlace.
Max out your 401(k) each year, and be sure to get your 401(k) employer match, if you have one. And for you super savers, here are other ways to save for retirement.
Americans have tons of questions about their stimulus checks and 2020 taxes. Here’s what you need to know about 2021 COVID-relief payments and more.
If successful, the acquisition would be Microsoft's second-largest ever, behind 2016's $24 billion purchase of LinkedIn.
HSBC and Huawei Technologies' Chief Financial Officer Meng Wanzhou have reached an agreement in a dispute about the publication of documents relating to U.S. fraud allegations against her, their lawyers told a Hong Kong court. The legal dispute reached the Hong Kong court last month after a British judge in February blocked the release of internal HSBC documents relating to the fraud allegations against Meng.
Millions are newly eligible for policies at less than $50 a month, federal data shows.
As the president mulls Democrat calls to cancel up to $50,000 in federally-backed student loan debt via executive order, a new analysis shows how $10,000 in forgiveness would affect borrowers in each U.S. state.
High-margin medical cannabis businesses in Europe will help bolster the balance sheet and build up a war chest for U.S. acquisitions.
(Bloomberg) -- No matter the asset class, the outlook is turning bleak for China’s financial markets.The nation’s stocks, bonds and currency are losing their shine after an impressive start to the year, overshadowed by a stronger dollar, higher U.S. Treasury yields and a domestic campaign to cut financial risk.The nation’s benchmark stock index remains 13% below a 13-year high in early February, following a brutal selloff that wiped out more than $1.3 trillion in market value. The yuan just suffered its worst month in a year in March, erasing all its 2021 gains against the greenback. Chinese sovereign bonds, a sanctuary during the recent global rout, saw foreign investors lower their holdings last month for the first time in more than two years.The sharp reversal of fortunes came as confidence grew in a strong U.S. economic recovery that is reclaiming the allure of dollar assets around the world. The latest underperformance of Chinese markets also resulted from Beijing’s decision to resume a battle on debt that was interrupted by the trade war with Washington and the pandemic.Concerns about inflation and tighter monetary conditions mean appetite for Chinese shares will likely remain subdued, while the country’s government debt market faces the test of a supply glut later this year, investors and analysts say. The yuan could weaken further as the dollar extends its global resurgence.“China’s bull run is being tested,” said Adrian Zuercher, head of global asset allocation of UBS Chief Investment Office. “Volatility will stay elevated in the near term.”Subdued TradingAfter delivering a world-beating rally earlier in the year, Chinese shares have reversed course since February, when it became increasingly clear that policymakers were shifting their priority to taming asset bubbles and reducing financial leverage.The broader de-risking campaign also includes a crackdown on the country’s internet and fintech giants. In the latest of such moves, the authorities slapped a record $2.8 billion fine on Alibaba Group Holding Ltd. over the weekend after an anti-monopoly probe found it abused its market dominance.While the penalty triggered a relief rally of as much as 9% in Alibaba’s shares in Hong Kong, those of its peers including Tencent, JD.com and Baidu fell by at least 2.7% amid concerns that they could be among the next targets of Beijing’s clampdown. The onshore benchmark CSI 300 Index fell 1.4% at Monday’s midday break, bringing its year-to-date loss to 4.7% and down 14.5% from a peak in February.The world’s second-largest stock market is $838 billion smaller than at its February peak and trading interest has been waning. Daily average turnover on China’s two stock exchanges was 670 billion yuan ($102 billion) so far this month, the lowest since May, according to data compiled by Bloomberg.UBS’ Zuercher said he expects rising Treasury yields to be a major source of near-term volatility in China’s equity market, as it will continue to exert pressure on valuations of the country’s growth stocks and trigger rotation.Echoing the view, Herald van Der Linde, HSBC Holdings Plc’s head of Asia Pacific equity strategy, said there remains downside risk to Asian equities in the near term and “China is no exception”.Domestically, a central bank unwilling to keep funding conditions too loose, a contrast to its peers in other major economies, has also disappointed stock investors. Apart from its deleveraging campaign, signs of inflationary pressures, as shown in March’s consensus-beating 4.4% jump in China’s producer prices, could prompt Beijing to further dial back its pandemic-induced economic stimulus.“We believe monetary policy might be tightened,” Hanfeng Wang, a strategist at China International Capital Corp., wrote in a note this week, adding that investors should pay attention to policy signals from the next meeting of the Politburo, the Communist Party’s top decision-making body.Bonds PressuredWhile Chinese government bonds outpaced their competitors in the first quarter as their haven status helped them stand out as a bulwark amid the global slump, they are facing a host of challenges in the coming months.In addition to a longer-than-expected phase-in period for the inclusion in FTSE Russell’s World Government Bond Index, a surge in bond supply from local governments and a narrowing China-U.S. yield gap also threaten to reduce the appeal of Chinese debt.Now at 3.21%, yields on China’s benchmark 10-year sovereign notes are expected to rise to 3.5% by the end of this quarter, according to Becky Liu, head of China macro strategy at Standard Chartered Plc.As China’s yield premium over Treasuries thinned, global investors last month trimmed their holdings of Chinese government debt for the first time since February 2019, a trend that is expected to continue for some time. The yield gap fell to 144.8 basis points on March 31, the narrowest since Feb. 24, 2020 when it was 144.2 basis points.Weaker YuanThe dollar’s renewed strength, the tighter yield gap, as well as Beijing’s latest move to boost capital outflows also have prompted analysts, including ING’s, to lower their forecasts on the Chinese currency.After rising nearly 7% against the dollar last year and reaping further gains earlier this year, the yuan suffered its worst selloff in a year last month, arresting a steady advance since May.Read: Yuan Erases Year’s Gains Against Dollar as PBOC Steps AsideAlso weighing on the yuan is the slowing speed of capital inflows: Cross-border currency flows tracked by Goldman Sachs totaled $1.5 billion in the week ended on April 7, compared with about $3 billion in the previous week.“It’s about how views on the U.S. dollar have changed rapidly,” said Zhou Hao, an economist from Commerzbank AG. “People believe the U.S. economy will recover strongly in the next two years and that’s what stocks and bonds have been pricing in.”Zhou said he expects the yuan to weaken to 6.83 per dollar by the end of this year, from around 6.56 Friday.(Updates with performance of broader stock market and tech shares in the ninth and 10th paragraphs)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.
Cannabis deals in Europe will help pot giant Aphria build up a war chest ahead of an expected frenzy of M&A in the U.S., the company’s chair and chief executive told MarketWatch ahead of the group’s earnings on Monday.
(Bloomberg) -- The Biden administration is stepping up scrutiny of China’s plans for a digital yuan, with some officials concerned the move could kick off a long-term bid to topple the dollar as the world’s dominant reserve currency, according to people familiar with the matter.Now that China’s digital-currency efforts are gathering momentum, officials at the Treasury, State Department, Pentagon and National Security Council are bolstering their efforts to understand the potential implications, the people said.American officials are less worried about an immediate challenge to the current structure of the global financial system, but are eager to understand how the digital yuan will be distributed, and whether it could also be used to work around U.S. sanctions, the people said on the condition of anonymity.A Treasury spokeswoman declined to comment. A National Security Council spokeswoman did not reply to a request for comment. The People’s Bank of China has rolled out trial issuance of a digital yuan in cities across the country, putting it on track to be the first major central bank to issue a virtual currency. A broader roll-out is expected for the Winter Olympics in Beijing next February, giving the effort international exposure.Many key details of the digital yuan are still in flux, including specifics on how it would be distributed. China’s recent establishment of a joint venture with SWIFT, the messaging nexus through which most cross-border settlements pass through today, suggests it is possible a digital yuan could work within the current financial architecture rather than outside of it.U.S. officials are reassured that China’s intentions aren’t to use the digital yuan to evade American sanctions, according to people familiar with the matter. The dollar’s current dominance in cross-border transactions gives the U.S. Treasury the power to cut off much of a business or even a country’s access to the global financial system.China’s officials have said the main intentions of the digital yuan are to replace banknotes and coins, to reduce the incentive to use cryptocurrencies and to complement the current private-sector run electronic payments system -- dominated by Ant Group Co.’s Alipay and Tencent Holdings Ltd.’s WeChat Pay. The PBOC has been working for years on the digital yuan, also called the e-CNY, having set up a specialist research team in 2014.Here’s How a Central Bank Digital Currency Could Work: Chart“To provide a backup or redundancy for the retail payment system, the central bank has to step up” and provide digital-currency services, Mu Changchun, the director of the PBOC’s digital-currency research institute, said at an event last month.The PBOC is also examining the potential for using the digital yuan in cross-border payments, launching a project studying the issue with a unit of the Bank for International Settlements along with the United Arab Emirates, Thailand and Hong Kong’s monetary authority.The Biden administration isn’t currently planning to take any action to counter longer-term threats from China’s digital currency, the people familiar with the discussions said. However, China’s plans have given renewed impetus to efforts to consider the creation of a digital dollar, they said.Members of Congress have also been increasingly interested in a digital dollar, aware of China’s moves, and asked Federal Reserve Chair Jerome Powell and Treasury Secretary Janet Yellen about the issue in hearings earlier this year.Powell said in February the Fed was looking “very carefully” at a digital dollar. “We don’t need to be the first. We need to get it right.”Yellen has signaled interest in research into the viability of a digital dollar, a shift from a lack of enthusiasm under her predecessor, Steven Mnuchin.“It makes sense for central banks to be looking at” issuing sovereign digital currencies, she said at a virtual conference in February. Yellen said a digital version of the dollar could help address hurdles to financial inclusion in the U.S. among low-income households.A recent report from the U.S. Director of National Intelligence said the extent of the threat of any foreign digital currency to the dollar’s centrality in the global financial system “will depend on the regulatory rules that are established.”China’s currency makes up little more than 2% of global foreign exchange reserves compared with nearly 60% for the U.S. dollar. Policy decisions, rather than technical developments, will also be necessary to push forward yuan internationalization, as China maintains a strict regime of capital controls.China’s financial system is too “fragile and weak” to pose a real threat to the dollar’s status as the world’s reserve currency, according to Mark Sobel, U.S. chairman for the Official Monetary and Financial Institutions Forum.“At the end of the the day the markets have more confidence in the Fed” than China’s central bank, said Sobel, a former senior U.S. Treasury official for international matters.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 president is being urged to roll more direct aid money into his infrastructure bill.
Bitcoin (BTC) is up 116% from the year's low of $27,734 on Jan. 4. It crossed the $60,000 mark for the first time on March 13, hitting a record $61,781.83 on Bitstamp exchange, just after U.S. President Joe Biden signed his $1.9 trillion fiscal stimulus package into law. Justin d'Anethan, sales manager at digital asset company Diginex in Hong Kong, said investors had turned their attention to stock markets and other cryptocurrencies in the past couple of weeks, leaving Bitcoin idling in the upper 50-thousand dollar levels.
Daily Journal Chairman Charlie Munger says a new investment in Chinese internet giant Alibaba is part of a move into stocks because returns on Treasury bills are so low.
The token used in Ripple Labs' payment network has climbed six-fold this year as some traders look through the SEC case and analysts see bullish patterns in price charts.