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GE Renewable Energy CEO & President Jerome Pecresse joins Yahoo Finance Live to discuss the future of wind power and his expectations for clean energy.
GE Renewable Energy CEO & President Jerome Pecresse joins Yahoo Finance Live to discuss the future of wind power and his expectations for clean energy.
Booming stocks, internet-driven "meme" investments and the black box of hedge fund financing pose increasing risks as the U.S. economy emerges from the coronavirus pandemic and investor appetite soars, the Federal Reserve warned on Thursday in its latest report on financial stability. "With investors ebullient on expectations for a strong rebound, it is important to closely monitor risks to the system and ensure the financial system is resilient," Fed Governor Lael Brainard said in a statement released alongside the U.S. central bank's semi-annual report, which reiterated some longstanding concerns and highlighted new ones. Commercial real estate remains potentially vulnerable, the Fed said, particularly after a pandemic that may dim demand for office space, and businesses and households "remain under considerable strain" due to the impact of the virus.
(Bloomberg) -- Indonesia is setting its sights on a sharp turnaround starting this quarter as it assembles more stimulus programs to lift stubbornly weak domestic demand.Gross domestic product declined 0.74% in the first quarter from a year ago, the statistics bureau said Wednesday, worse than the median estimate of -0.65% in a Bloomberg survey of economists. Still, it represented an improvement from the 2.19% contraction in the final quarter of 2020.Southeast Asia’s largest economy should return to growth this quarter as the government readies tax and sales measures to support the retail sector, Coordinating Minister for Economic Affairs Airlangga Hartarto said in a briefing. GDP is expected to expand 6.9%-7.8% in the second quarter period, a pace that would be its fastest since 2008, according to Bloomberg data.“The trend of economic recovery is toward positive growth,” Hartarto said. “The curve is V-shaped, as seen in many other countries.”“Until we return the consumer confidence that will revive demand, the risk will be on the downside,” said Enrico Tanuwidjaja, an economist at PT Bank UOB Indonesia in Jakarta. He added that he’d be downgrading his full-year outlook because of the first-quarter numbers.The country’s benchmark stock index pared the day’s gains to 0.2% after the GDP data were released. The rupiah was little changed at 14,435 to the dollar.“The virus resurgence at the start of the year is likely to have put a dent in consumption, even though there have been some signs of nascent recovery more recently,” said Wellian Wiranto, an economist at Oversea-Chinese Banking Corp in Singapore. “Bank Indonesia is most likely going to continue to keep its policy rate unchanged, focusing on pushing for more forthright transmission of its previous rounds of rate cuts by the banking system.”Main DriversThe government recently maintained its outlook for 4.5%-5.3% GDP growth for 2021, expecting consumption around Eid celebrations in April-May to boost growth in the second quarter. On Tuesday it cut its forecast for 2022, now expecting growth of 5.2%-5.8% next year, down from an earlier projection of 5.4%-6.0%.What Bloomberg Economics Says...“Indonesia’s recovery should continue to advance in 2Q in year-on-year terms, but more quarterly contractions this year can’t be ruled out given the higher infection rate of Covid-19 variants now circulating alongside relatively slow inoculations. We still expect a muted recovery this year, with growth coming in well short of the central bank’s 4.1-5.1% forecast range.”-- Tamara Mast Henderson, Asean economistSolid performance in trade and investment have been the main growth drivers early this year. Exports and imports bested estimates, while foreign direct investment climbed to a three-year high, mostly in provinces outside the main growth engine of Java.“The process of economic recovery will differ between provinces and sectors,” Suhariyanto, head of the country’s Statistics Office, said in announcing the GDP data. “Sectors that are highly dependent on public mobility, such as transportation and accommodation, will take longer to be able to pick up.”While factory activity and consumer confidence have shown a steady increase, core inflation and retail sales remain subdued as movement curbs limits household spending, which accounts for almost 60% of the economy.Other details from Wednesday’s release:The economy shrank 0.96% from the previous quarter on a non-seasonally adjusted basis, worse than the 0.85% drop forecast by economistsSectors that expanded the most in the first quarter, in year-on-year terms, include information and communications, +8.72%; water supply, +5.49%; health services, +3.64%; and agriculture, +2.95%Biggest decliners were transportation and warehousing, down 13.12%; accommodation, food and beverage, -7.26%; company services, -6.1%; and other services, -5.15%Private consumption fell 2.23%, while government spending rose 2.96% and gross fixed capital formation declined 0.23%Exports rose 6.74% from a year ago. Imports rose 5.27%Vaccine DriveAs many as 12.7 million Indonesians had been inoculated as of early May, though that’s still a small percentage of the country’s 270 million population. Private companies will begin inoculating workers once the government sets a selling price on vaccines.“The high frequency mobility data we track from Google suggest that government restrictions and social distancing remain a major drag on activity,” Gareth Leather, senior Asia economist at Capital Economics Ltd., wrote in a research note.By maintaining restrictions even as infections decline, “the government is making a clear trade-off to get ahead of the infection curve, because the cost of future lockdowns will be even worse for the economy,” UOB’s Tanuwidjaja said. “This is necessary to get a more sustainable recovery in coming quarters.”(Recasts lead and adds minister’s comments in third and fourth 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.
(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 hereSigns of inflation are picking up, with a mounting number of consumer-facing companies warning in recent days that supply shortages and logistical logjams may force them to raise prices.Tight inventories of materials as varied as semiconductors, steel, lumber and cotton are showing up in survey data, with manufacturers in Europe and the U.S. this week flagging record backlogs and higher input prices as they scramble to replenish stockpiles and keep up with accelerating consumer demand.As commodities become increasingly expensive, whether faster inflation proves transitory -- or not -- is the biggest question for policy makers and markets. Rising prices and the potential for a response from central banks topped the list of concerns for money managers surveyed by Bank of America Corp.Many economists and central bankers, from the Federal Reserve on down, maintain that price gains are temporary and will be curbed by forces such as virus worries and unemployment. Investors remain skeptical, with businesses including Nestle SA and Colgate-Palmolive Co. already announcing they’ll need to raise prices.U.S. Treasury Secretary Janet Yellen, a former Fed chair, entered the debate on Tuesday when she ruffled markets with the observation that rates will likely rise as government spending ramps up. She later clarified she was neither predicting nor recommending an increase.The Bloomberg Commodity Spot Index, which tracks 23 raw materials, has risen to its highest level in almost a decade. That has pushed a gauge of global manufacturing output prices to its highest point since 2009, and U.S. producer prices to levels not seen since 2008, according to data from JPMorgan Chase & Co. and IHS Markit. JPMorgan analysts also estimate non-food and energy import prices in the biggest economies rose almost 4% in the first quarter, the most in three years.“Risk clearly leans to the upside in the current environment,” said John Mothersole, pricing and purchasing research director at IHS Markit. “The surge in commodity prices over the past year now guarantees higher goods-price inflation this summer.”The IHS Markit analysis across oil, chemicals, steel, copper, zinc, lumber, pulp and rubber expects the price boosts to fade closer to the end of the year. Meanwhile, strategists at Blackrock Investment Institute wrote Monday that they see U.S. consumer-price increases averaging just under 3% from 2025-2030, though that pace is “still under-priced by markets.”The case for higher-for-longer inflation into 2022 often rests on the trillions of dollars being pumped into infrastructure projects globally in a low-interest rate atmosphere, most notably in the U.S. That has supercharged a rally across raw materials, as major economies recover from the pandemic amid growing signs of shortage across several markets.Some businesses have found they can’t afford to wait for “temporary” increases to pass. That means consumers can expect to deal with higher costs for a range of daily items, including garbage bags and children’s clothes.“Straight price increases will continue to be an important element as we look at the back half of the year,” Colgate-Palmolive Chief Executive Officer Noel Wallace said late last month when the company announced earnings. “I anticipate that you’ll see more price increases across the sector, given the headwinds that everyone has faced in this space.”Higher cotton prices from Chinese producers are pushing clothes-maker Carter’s Inc. to consider how much of the increase it can pass along.“We’re beginning to see signs of inflation in product input costs, particularly those related to fabric,” Chief Executive Officer Michael Casey said on an April 30 earnings call. The company will offer “fewer promotions” this year, he said, amid a return of resilient shoppers buoyed by stimulus payments.Corn, too, is on the growing list of commodities seeing price boosts. Futures surged this week above $7 a bushel for the first time in more than eight years on the Chicago Board of Trade, alongside increases for soybeans and wheat.The underlying materials shortage has spooked Greg Sharenow, who manages a portfolio focused on energy and commodities at Pacific Investment Management Co.The premium on near-term deliveries over future deliveries for commodities tracked by the Bloomberg Commodity Index has jumped to the highest in more than 15 years, signaling immediate physical shortages across different markets, Sharenow said. He sees the price surge this time as more organic, rather than the kind of anticipatory demand seen from 2005 to 2008.Edward Robinson, deputy managing director and chief economist at Singapore’s central bank, said in a speech last week that he’s watching Chinese producer prices closely as an “important upside risk” to his baseline call that inflation should stay in check, helped by labor-market slack.A surge in copper is crippling some Chinese manufacturers, who have idled units, delayed deliveries and even defaulted on bank loans, data from a Shanghai Metals Market survey show. That’s already rippled through the production chain, delaying projects by power grids and property developers.Lumber has been in the spotlight as red-hot housing markets, especially in advanced economies, are driving up costs for the commodity.Fed Chairman Jerome Powell said last week the central bank was watching that market closely, even though he doesn’t currently have financial stability concerns around housing. Still, the sector has been emblematic of the K-shaped recovery, with cost surges pricing out middle-income buyers while homeowners reap gains.Markets have responded more calmly of late to the Fed’s mantra, with bond yields little changed after Powell last week doubled down on his inflation read and still-easy policy stance. The inflation run across so many materials, though, could break that patience, as pressure builds on businesses and officials to ward off price increases for consumers.“One always has to be careful not to overplay a few anecdotes, and project that onto the broader economy,” Douglas Porter, chief economist at BMO Capital Markets, said in a May 1 report. “But as the anecdotes accumulate, they eventually become data.”Porter pointed to a sampling of 10 recent datasets, including U.S. employment costs, Canadian wages and still-soaring shipping costs.“As rising inflation risks suggest,” he said, “when you run things hot, you risk getting burned.”(Updates with additional detail on corn prices in second paragraph after cotton price chart.)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) -- 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 hereThe Brazilian real advanced after the central bank lifted its benchmark rate by 75 basis points and promised another hike of the same size next month in a renewed push to bring inflation back to target.The currency was up 1.3% to 5.2853 per dollar as of 12:43 p.m. in New York, among the best performers in emerging markets. The real leads gains among major currencies in the past month, up 5.9% amid rising commodity prices, and analysts say the central bank decision opens room for more gains.Officials on Wednesday raised the Selic to 3.5%, in line with estimates from all economists in a Bloomberg survey and the guidance given by policy makers at their prior meeting in March. If it makes good on its promise, the bank will have raised borrowing costs by 225 basis points to 4.25% by June.“This more hawkish statement should bring short-term strength to the BRL,” Rabobank economists Mauricio Une and Gabriel Santos wrote in a note. “We had thought they would not signal the following step hike now.” They expect the central bank to raise rates to 5.5% by the end of the year and to 6.5% in 2022.The bank, led by its President Roberto Campos Neto, is acting to rein in inflation that’s surged above the target ceiling to a four-year high. Food and fuel costs have jumped in recent months, and the government recently restarted emergency aid that will firm up demand. Put together, analysts see consumer prices above target this year and next amid an incipient recovery.What Bloomberg Economics Says“The central bank tried to reach a compromise: it promised another sharp rate hike of 75 basis points in the next meeting, but warned that it is not ready yet to fully normalize monetary policy. Despite acknowledging the decline in underlying inflation and mentioning -- for the first time ever -- its dual mandate, we believe that the overall tone of the statement was somewhat hawkish.”--Adriana Dupita, Latin America economistClick here for the full reportReal Has Scope to Gain After BCB’s Hiking Signal: Inside Brazil“They are continuing the hawkish tilt,” said Sacha Tihanyi, head of emerging market strategy at TD Securities in Toronto. “Hike aggressively sooner, and then create some breathing space for the real.”The central bank also reinforced that a “partial normalization of the policy rate remains appropriate to keep some degree of monetary stimulus during the economic recovery.”That suggests they don’t see the key rate climbing in this cycle to a neutral level that’s commonly pegged around 5.5%-6.5%.“However, the Committee emphasizes that there is no commitment with this plan, and that future steps of monetary policy could be adjusted to assure the achievement of the inflation target,” officials wrote in the statement.The swap rates curve fell 4 to 8 basis points, flattening after a low volatility open. Traders held onto their bets that the central bank will raise rates by another 275 basis points by the end of the year, which would take the benchmark to 6.25%. BNP Paribas on Thursday revised its forecast for the Selic to 6.5% from 5% saying rising inflation will lead officials to raise rates by more than expected.Nearing 8%For the first time, policy makers mentioned their secondary mandate of fostering full employment, introduced in the same law that gave the bank its long-sought formal autonomy earlier this year. Yet they offered a positive outlook, saying recent economic indicators have been better than expected despite the pandemic, and predicting uncertainties over growth to gradually return to normal.Last month, President Jair Bolsonaro’s administration started paying out another round of monthly stipends at a total cost of 44 billion reais ($8.2 billion). Lawmakers have recently indicated they will seek an extension of that aid if the government does not accelerate plans for a new social program as the coronavirus continues to spread through the country.Read More: Brazil’s Budget Foreshadows Another Year of Massive SpendingConsumer prices rose 6.17% in the year through mid-April, and many economists see that reading approaching 8% in May. The central bank targets annual inflation at 3.75% this year, with a tolerance range of plus or minus 1.5 percentage points.In their statement, policy makers wrote various measures of underlying inflation are already at the top of the range compatible with hitting their target. Complicating matters, commodity prices continue to increase, and higher energy costs are pressuring prices in the short-term.“The central bank is signaling it plans to get to a 5% Selic in 75-basis point hikes, though it leaves the space to change its mind,” said David Beker, chief Brazil economist at Bank of America Corp.(Updates asset performance in second and 10th paragraphs, adds analyst comment 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) -- 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 hereBillionaire investor Leon Cooperman said rising inflation will force the Federal Reserve to raise interest rates next year.“I’m assuming they’re going to be surprised by inflation, it’s going to be more intractable,” Cooperman, 78, said in a Bloomberg TV interview Wednesday. “And the market’s going to be surprised that the Fed will raise rates sometime in 2022. They’ll be forced by inflation.”He also said there’s a bubble in the bond market, not the stock market.Cooperman’s family office, Omega Advisors, was previously a hedge fund, and had posted annualized returns of 12.4% since inception, before he stopped managing client cash in 2018 and converted it into a family office. He cashed out investors at a record high.The billionaire investor also touched on potential regulatory fallout from the collapse of family office Archegos Capital Management. Calling himself a “retired money manager,” Cooperman said: “Why they have the right to regulate me is beyond my wildest dreams.” 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 (ARKK) ETF (ticker: ARKK) delivered a 153% return in 2020. The ETF, which is actively managed by ARK Invest CEO and her team, is down 27% over the last three months, including an 13% decline in the past week alone.
You could be entitled to additional money, based on your 2020 income tax return.
U.S. stock index futures rose on Thursday ahead of data that is expected to show a decline in weekly jobless claims, while shares of vaccine makers looked to extend losses after President Joe Biden's plan to back intellectual property waivers on COVID-19 shots. Shares in Pfizer Inc, Moderna Inc, Johnson & Johnson and Novavax Inc, all involved in the making of COVID-19 vaccines, fell between 0.6% and 5.4% in premarket trading.
Bill Gates transferred stakes in several companies to Melinda Gates on the day the power couple announced their divorce
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.
The crypto run this time has two features the 2017 version didn’t—institutional adoption and actual applications.
(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 tumbled as much as 7% to $254.02 on Thursday, slumping for a fourth straight day. That left the shares in danger of breaching 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 SPACs, sank more than 5%.“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 as much as 4.9% on Thursday, bringing its year-to-date loss to about 21%.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.
It pays to be in the stuffed crust pizza game if you are Papa John's.
In an interview with Fortune, Alba talked about taking her “fourth baby” (a.k.a. her company) public.
(Bloomberg) -- Actress Jessica Alba cemented her claim to one of the most lucrative side gigs in Hollywood after shares of her beauty business, the Honest Co., soared 44% in its market debut.The “clean” beauty- and baby-products maker’s stock closed at $23 Wednesday after it priced the shares at $16 in its initial public offering. Alba’s roughly 5% stake is valued at $98 million, according to the Bloomberg Billionaires Index. She also has exercisable options valued at about $24 million.Read more: Alba’s Honest Co. Set for Opening Bell After $413 Million IPO“I feel like I’m in a dream, to be honest. Wow. Is this really happening?” Alba said in an interview with Bloomberg TV. “I’m so grateful to our very loyal community. Thank you for bringing us into your home. Thank you for trusting us with you most precious people, your little people.”Alba, 40, founded the business in 2011, motivated by the dearth of baby products that were free of harsh chemicals. The carbon-neutral company makes diapers, wipes, shampoo and lotions it bills as “clean and natural,” and targets a customer base of parents who are eco-conscious, aspirational and relatively affluent. Honest Co. had revenue of about $301 million in 2020, a 28% jump from a year earlier, and an operating loss of $13.5 million.The Los Angeles-based company is now valued at almost $2.1 billion, or $2.45 billion when fully diluted to include employee stock options and restricted stock units. That’s significantly more than its $860 million implied valuation in a 2017 funding round, according to Pitchbook. Honest has been dogged in the past by product recalls and controversy over its claims to use only natural ingredients. Prior to those issues, it was valued at $1.7 billion in a 2015 funding round.Rare ExampleThe IPO marks an almost 260% return for L Catterton, the private equity firm backed by billionaire Bernard Arnault that invested $200 million in 2018. The company sold about half its stake in the offering.The actress is a rare example of someone successfully bridging a career between Hollywood and Wall Street. While many celebrities strike licensing deals for fashion lines or products such as perfume or vodka, few have gone on to found publicly traded companies.Alba, whose official title is chief creative officer, continues to work as an actor, most recently starring in the crime television series, “L.A.’s Finest.”“I was born into a hardworking Mexican-American family. My parents worked multiple jobs, doing whatever it took to get by,” Alba wrote in a letter included in the company’s prospectus, describing a childhood marked by poor health and hospital stays. “By the time I was ten, I became aware of how wellness can define your whole life. That’s never left me.”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.
Since I have a monthly car allowance of $450 I want to step up my game and maybe even get a luxury car. The car I want to lease would be an almost $600-a-month car payment. During this exciting time, I can understand your desire to step into the car of your dreams.
Home buyers continue to pour into the real-estate market, encouraged by the favorable financing they can score.
More returns need additional review due to things like the recovery rebate credit.
AMC Entertainment Holdings Inc. lost more than half a billion dollars in the first three months of the year while reopening almost all of its U.S. theaters, but executives see brighter days ahead and the stock gained 3% in after-hours trading Thursday after eight straight days of declines.
Cathie Wood's ARK Innovation exchange-traded fund is significantly oversold and due for a bounce, but if it doesn't come the popular fund risks suffering a “waterfall” decline, says one chart watcher.