Mar.02 -- Valley National Bank CEO Ira Robbins discusses PPP, economic recovery in Florida and the outlook for regional banks. He speaks with Bloomberg's David Westin on "Bloomberg: Balance of Power."
Mar.02 -- Valley National Bank CEO Ira Robbins discusses PPP, economic recovery in Florida and the outlook for regional banks. He speaks with Bloomberg's David Westin on "Bloomberg: Balance of Power."
Digital banking startup Uala will double the size of its operations in Argentina and Mexico with a $64 million investment as it seeks to convince more people across Latin America to skip traditional banking in favor of digital, the head of the company said on Friday. Pierpaolo Barbieri, the Argentine company's founder, told Reuters in a Zoom interview from his downtown Buenos Aires office that the investment would double Uala's 800-strong headcount and operating space. Ultimately, he said there was potential for Uala to reach out to the unbanked in countries such as Peru, Paraguay, Colombia and Chile as well as eventually the United States and Europe.
(Bloomberg) -- Discover what’s driving the global economy and what it means for policy makers, businesses, investors and you with The New Economy Daily. Sign up hereConsumers who saw their savings jump during the pandemic might be deterred from splashing out as the economy recovers if a 19th-century theory holds.European Central Bank policy maker Pablo Hernandez de Cos raised the prospect of so-called Ricardian equivalence in a speech last week that addressed how the pace of consumer spending will contribute to the economic rebound.Named after British political economist David Ricardo, the theory states that people assume they’ll ultimately have to pay for the government’s budget. Hernandez de Cos, who heads the Bank of Spain, said consumers might hold back in anticipation of higher taxes after governments increased their debt burdens in the Covid-19 crisis.“We can’t rule out that in Spain and other countries, as a consequence of the deterioration in public finances, that what we economists call a Ricardian effect could occur,” he said.Policy makers are keen to understand how European consumers will behave after the pandemic. Savings have risen in part because access to travel and leisure has been restricted, while some workers’ wages have been protected by furlough programs. A spending spree would turbo-charge the recovery.Bloomberg Economics reckons the euro zone’s biggest economies boosted excess savings by 387 billion euros ($464 billion) last year. Oxford Economics estimates excess savings accumulated by euro-area households could reach 840 billion euros by early 2022.Ricardian equivalence may not apply. Marion Amiot, an economist at S&P Global Ratings, notes that during the region’s debt crisis about a decade ago, people cut their savings rate even as some countries raised taxes.She also says when European officials lifted the first round of strict lockdowns last year, the savings rate of households as a percentage of disposable income fell to 17% in the third quarter from 25% in the second quarter.“The same thing is likely to happen when things normalize this year,” she said. “There’s no evidence that this relationship exists in the euro zone.”Outside the bloc, the Bank of England doubled its estimate on Thursday of how much U.K. residents would run down their excess savings over the next three years, to 10% from 5%.Read My LipsSome governments have shown they’re aware of the risk. French officials have said a post-crisis tax hike would drag on economic growth and consumer confidence. Finance Minister Bruno Le Maire said last week that “we have cut taxes and we will stick to this line: no tax increases in our country.”Spain’s administration has said it will hold off on any tax increases until the recovery is on solid footing.Hernandez de Cos said Ricardian equivalence is just one factor to consider. He also said some demand is lost forever -- for example, canceled vacations in 2020 won’t mean people take extra vacations in 2021 -- and savings are skewed toward richer people who tend to spend a smaller share of their wealth than low-income groups.Read more: Euro Area’s $714 Billion Boom Hope Hinges on Senior SaversStill, economist Oliver Rakau at Oxford Economics reckons older, wealthier people will spend more than expected. He has analyzed consumer surveys that show higher-income households report the greatest increase in intentions to make major purchases.He says Hernandez de Cos is probably trying to stave off any suggestion that monetary and fiscal support for the economy should be withdrawn too soon.“Evidence of Ricardian equivalence in Europe is not necessarily very straightforward,” Rakau said. “I would tentatively interpret caution by the Bank of Spain as that they want to caution against too much optimism.”(Updates with BOE revision to savings outlook in 10th 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) -- Xavier Rolet, the former head of London Stock Exchange Group Plc, is planning to launch a blank-check company targeting financial technology investments, people familiar with the matter said.He plans to seek about $300 million by listing a special purpose acquisition company in the U.S., according to the people, who asked not to be identified because the information is private. Rolet could reveal plans for the listing as soon as the next few days, the people said.The SPAC will be one of the most high-profile listings to come to market since a regulatory review of accounting standards used by blank-check companies led to a slowdown in new offerings. Credit Suisse Group AG is advising on the planned IPO, according to the people.Rolet left the LSE in 2017 after a public dispute between the board and activist investor Chris Hohn. During his tenure, Rolet led a series of successful deals that gave the bourse operator control of the world’s largest clearinghouse and made it one of the biggest financial index compilers. He became chief executive officer of billionaire Michael Hintze’s London-based hedge fund firm CQS in early 2019 before abruptly leaving a year later.Serge Harry, who was one of Rolet’s key lieutenants at the LSE and later served as deputy chief executive officer of CQS, will also have a role at the blank-check company, one of the people said. The SPAC will seek investments in areas including fintech and quantum computing, an area Rolet has been vocal about in the past, the people said.Rolet and a representative for Credit Suisse declined to comment, while Harry couldn’t immediately be reached.As an outspoken financial industry veteran, Rolet often expresses his views publicly. His comments have ranged from his former employer to quantum computing to Extinction Rebellion, the radical climate change movement whose members have blocked traffic in London and glued themselves to jetliners. He’s talked about his personal interests, including the care of some 50,000 bees at his vineyard in Provence, France.Rolet is already on the board of another blank-check company, Golden Falcon Acquisition Corp. That SPAC, started by former Barclays Plc banker Makram Azar, raised $345 million in its U.S. IPO in December, according to data compiled by Bloomberg.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.
FRANKFURT (Reuters) -Commerzbank employee representatives have agreed a job reduction deal, the bank and union officials said on Friday, paving the way for the German lender to cut 10,000 jobs globally. The agreement is central to Chief Executive Manfred Knof's plans to streamline the nation's second-biggest listed lender and return it to profitability. Weeks after taking the job as Commerzbank CEO, Knof announced plans to cut 10,000 jobs and close hundreds of branches in a 1.8 billion euro ($2.2 billion) restructuring.
(Bloomberg) -- As the pullback in Federal Reserve monetary support draws inexorably closer, investors are striving to taper-proof their portfolios with 2013’s volatility still fresh in their minds.Eight years ago this month, global yields jumped and risky assets fell on a hint from then-Fed Chairman Ben Bernanke that the central bank might start trimming its crisis-era bond program. Wary of a repeat volatility spike some fund managers are turning to lower-duration high-yield debt for shelter, while others see a tantrum-less taper and are betting on emerging market assets to prevail.With economists expecting the central bank to begin paring asset purchases by the end of this year, Fed officials are sticking to the script that it’s too early to discuss any shift in pandemic policy setting. But moves by counterparts in the U.K. and Canada to slow the pace of bond buying as their economies improve have reminded traders that the Fed cannot avoid the taper forever, especially as U.S. growth surges.“The biggest threat to the market is rates volatility jumping higher, like we saw at the end of February,” said Pilar Gomez-Bravo, investment officer and director of fixed income at MFS Investment Management in London. “The valuations of risky assets are high, so you don’t have a lot of room for complacency.”Gomez-Bravo favors junk bonds as an asset class less vulnerable to a reset in yields than their investment-grade peers, which have much higher duration or sensitivity to interest rates. Leveraged loans are an even better choice and some “stressed” debt securities should be less correlated to broader market repricings, according to Jefferies Financial Group Inc. credit strategist Sherif Hamid.Investment-grade bonds are already under pressure with the largest exchange-traded fund for high-grade credit experiencing its longest stretch of outflows since 2013, according to data compiled by Bloomberg.Taper TemplateBonds took the brunt of the 2013 turmoil, with Treasury yields jumping 50 basis points in the month after Bernanke spoke. Over the same period the MSCI Emerging Markets Index slumped 14% and the Nasdaq 100 fell 4%. However, the tech-heavy gauge now trades on 26 times forward earnings, compared to just 15 times then.This time around, BlackRock Inc. -- the world’s largest asset manager -- suggests that much of the move in the bond market may have already taken place, and emerging market assets should hold up much better.“We still think yields can move somewhat higher but tactically we think the big repricing of the activity restart is now mostly done,” said Ben Powell, chief Asia Pacific investment strategist for the BlackRock Investment Institute.The 10-year Treasury yield is up about 65 basis points this year and traded around 1.57% on Friday. The Bloomberg Barclays U.S. Treasury Total Return Index is down over 3% year-to-date.According to BlackRock, the combination of an economic recovery, heavy stimulus and a broadly stable dollar should be enough to spare risk assets -- including those from developing countries -- much of the impact of a gradual easing of central bank support.The firm is overweight both developed- and emerging-market equities, “and on the fixed-income side we actually upgraded EM local currency debt last week,” Powell said.Jackson HoleGauges of implied volatility in currencies, Treasuries and U.S. equities have retreated after a modest rise at the end of February suggesting investors don’t see an immediate risk of a Fed taper announcement. But trader activity in the options market points to Jackson Hole -- the annual gathering of central bankers in August -- as a likely candidate for taper talk to begin.Meanwhile, investors should parse minutes of Federal Open Market Committee meetings where past experience suggests discussions of tapering will appear first, according to Win Thin, Brown Brothers Harriman & Co.’s global head of currency strategy. Minutes for the April meeting will be released on May 19.“Suffice to say that Chair Powell will take great pains not to surprise the markets with a decision to taper,” Thin wrote Thursday. “Rather, it will be well-telegraphed and the minutes are the first place markets should look.”(Updates pricing in tenth 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) -- Epic Games Inc. seized on Apple Inc.’s private survey of developers to show that the creator of Fortnite isn’t alone in bashing the App Store.One unidentified developer complained that the store “is plagued with outdated low-quality apps which make it harder for higher-quality apps to get the exposure they need.” Another wrote that “you tend only to feature indie apps and apps that spend or earn most the money.” A third said: “I’m satisfied as consumer. As a developer it’s a nightmare.”Epic’s lawyer confronted App Store chief Matt Fischer with the survey comments on the fourth day of a trial in federal court over the game maker’s claims that Apple runs its marketplace like a monopoly, cheating developers and consumers alike. Fischer is among several high-ranking Apple executives testifying at the three-week trial.Apple said the purpose of the survey was to solicit constructive criticism to help the iPhone maker improve the store -- and that Epic chose to cherry pick negative comments. Apple’s lawyer objected to the survey comments being read in court, but U.S. District Judge Yvonne Gonzalez Rogers overruled him.Read More: Epic’s Interrogation of Apple App Store Witness Gets Rocky StartWhen Fischer was questioned Thursday by Apple’s attorney, he said his team works hard to make the App Store “attractive to both customers and developers, neither of whom we have control over.”On Friday, Epic will call the manager of its own app store to the witness stand to show how its policies contrast with Apple’s.The trial in Oakland, California, comes as Apple faces a backlash -- with billions of dollars in revenue on the line -- from global regulators and some app developers who say its standard App Store fee of 30% and others policies are unjust and self-serving.How Apple’s App Store Sparked an Epic Trial: QuickTakeThe fight with Epic blew up in August when the game maker told customers it would replace Apple’s in-app purchase system with its own, circumventing Apple’s commissions from add-ons inside of Fortnite. Apple then removed the game, cutting off access for more than a billion customers.Apple, which vehemently denies abusing its market power, has called Epic’s legal gambit a “fundamental assault” on a business model that’s beneficial to both developers and consumers.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 declined as the coronavirus crisis in India and a slowing demand rebound in the U.S. highlighted the uneven nature of the global recovery.Futures in New York fell 1.4% Thursday after hitting a nearly two-month high earlier in the week. While signs of rising oil consumption have put prices on track for a weekly gain, spiking Covid-19 cases in major crude importer India is capping gains. At the same time, U.S. gasoline consumption slipped for a second straight week.“What’s keeping the market from going higher are these Covid-19 issues in several countries along with not quite enough of a demand rebound here in the U.S. to juice prices toward that $70-a-barrel mark,” said John Kilduff, founding partner at Again Capital LLC.Despite near-term concerns, oil has rallied more than 30% this year as key economies including the U.S. and China rebound from the depths of the pandemic. Spain’s Cepsa is restarting a processing unit that was previously idled, while U.S. refineries are running at five-year average levels for the first time since the pandemic began. The strength in crude has helped drive the Bloomberg Commodity Spot Index to the highest level in almost a decade.The promise of a summer travel boost is also keeping prices supported, said Bob Yawger, head of the futures division at Mizuho Securities. “With Memorial Day weekend so close here, the gasoline demand scenario is just too strong to see crude oil fall apart.”Elsewhere, Japan plans to extend a state of emergency brought on by Covid until the end of the month, local media reported. The country’s capital, Tokyo, had wanted to extend it in a bid to stem a surge in infections ahead of hosting the Olympics from July.Beyond headline crude prices, the market’s underlying structure has weakened in recent sessions. The backwardation between Brent’s two nearest contracts -- which signals tightening supplies -- has narrowed since the end of last week. The backwardation in WTI’s so-called prompt spread has also softened compared to last Friday.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.
You could be entitled to additional money, based on your 2020 income tax return.
Bill Gates transferred stakes in several companies to Melinda Gates on the day the power couple announced their divorce
Elon Musk, CEO of Tesla and SpaceX, likes cryptocurrency, such as bitcoin and dogecoin. But he's urging investors to proceed "with caution."
The crypto run this time has two features the 2017 version didn’t—institutional adoption and actual applications.
HELP ME RETIRE Dear MarketWatch, My wife and I recently sold our home. After paying capital gain taxes, we look to net about $1 million. We are both in our late 60s. My wife is retired, and I work part time in my profession, currently grossing approximately $50,000 a year.
Ethereum has outperformed major digital currency rivals this year, bolstered by the surge in decentralized finance (DeFi) and the anticipation of a technical adjustment this summer, but it faces hurdles that could stall its rise. With a jump of more than 350% in its price this year, ethereum has the second-largest market capitalization after bitcoin, but not as much cache and perhaps more operational challenges that could prevent it from eclipsing its major rival. In the crypto world, the terms "ethereum" and "ether" have become synonymous.
(Bloomberg) -- Coinbase Global Inc. sank to a record low as investors fled high-flying market newcomers.The operator of the largest U.S. cryptocurrency exchange slumped 6% to $256.76 on Thursday, dropping for a fourth straight day. That left the shares just above the $250 reference price for its April direct listing. An exchange-traded fund that tracks shares of companies that recently went public plunged for an eighth day, the longest slide since 2015. Virgin Galactic Holdings Inc. and Opendoor Technologies Inc., companies that came to market through blank-check offerings, each sank at least 3.8%.“We saw a mini-bubble in SPACs, IPOs, crypto, clean-tech and hyper-growth in late 2020 and early 2021 and many of these asset classes are nursing bad hangovers,” said Mike Bailey, director of research at FBB Capital Partners.Coinbase’s slide comes as investors pour into extremely speculative cryptocurrencies such as Dogecoin and Binance Coin -- tokens that the exchange doesn’t offer. Most of its traffic had come from Bitcoin trades, but the price of the largest crypto coin has been mired in a narrow band for weeks. Coinbase started trading at $381 on April 14 before briefly topping $400. It’s now down 22% from the close on its first day.Nasdaq had set a reference price of $250 a share on April 13 for Coinbase’s direct listing, a number that’s a requirement for the stock to begin trading, but not a direct indicator of the company’s potential market capitalization.“What has really hurt Coinbase, now that their direct listing has taken off, you’re seeing expectations that other exchanges are coming on board,” said Edward Moya, senior market analyst at Oanda. “There’s this belief this could be as good as it gets for Coinbase in the short-term.”The Renaissance IPO ETF dropped 4.2% on Thursday, bringing its year-to-date loss to about 14%.(Updates prices.)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.
A mass of attention has been brought to semiconductor companies as supply-chain constraints have reduced the availability of everything from cars to laptops to gaming consoles. The largest chipmakers and foundries — Intel (INTC) Nvidia (NVDA) Advanced Micro Devices (AMD) Taiwan Semiconductor Manufacturing (TSM) Globalfoundries and Qualcomm (QCOM) — have gotten most of the headlines. As the challenges are sorted out, it has become clear that semiconductors are a hot commodity, and for investors, that could be considered an opportunity.
You will be completely oblivious on the day the bull market hits its exact top. “For the next few weeks at least, the sun seems destined to shine on the stock market… [T]he credit crisis seems to be reaching a conclusion… [A]ll these factors have lessened the downside risk in stock prices, for now.”
Vlad Tenev, CEO of Robinhood Markets, speaking at a “fireside chat” on Thursday, attempts to dispel any lingering speculation that the brokerage may be a so-called dogecoin whale, maintaining a massive stockpile of the crypto for its own benefit.
‘I have a $3,000-a-month pension. I am living with my ill father, and I am currently not working and looking for a job. I am going to college using the GI Bill. I am almost 50, and have no 401(k).’
Vietnam’s government is pouring cash into the country, which should enable the nation to achieve its 6.5% to 7% annual growth targets.
It pays to be in the stuffed crust pizza game if you are Papa John's.