KPS Essentials CEO and COO Natalie Novak-Bauss and Ron Webb join Yahoo Finance's Julie Hyman and Adam Shapiro, Function of Beauty Co-founder & CEO Zahir Dossa, and BBG Ventures Partner Nisha Dua.
KPS Essentials CEO and COO Natalie Novak-Bauss and Ron Webb join Yahoo Finance's Julie Hyman and Adam Shapiro, Function of Beauty Co-founder & CEO Zahir Dossa, and BBG Ventures Partner Nisha Dua.
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) -- Private equity company TPG Capital Asia is considering a plan for an initial public offering of its pathology business in the region, according to people with knowledge of the matter.The buyout firm has asked banks to submit proposals for the potential listing of Pathology Asia Holdings Pte, said the people, who asked not to be named as the process is private. TPG is still weighing a listing venue for the business, while Singapore is among the options, the people said.TPG has expanded the business since it initially bought 39 pathology laboratories from Healthscope Ltd. in 2018 for A$279 million ($217 million), one of the people said. The operations are worth about $2 billion, the person said.Deliberations are ongoing and there is no certainty that TPG will proceed with a listing, said the people. A TPG representative declined to comment.TPG Capital Asia currently manages approximately $9.3 billion in assets, according to its website. The arm of global buyout firm TPG has offices in Beijing, Hong Kong, Melbourne, Mumbai, and Singapore.Pathology Asia Holdings, originally formed out of the Healthscope purchase, includes the Quest Laboratories brand in Singapore and Vietnam, and Gribbles Pathology in Malaysia. It announced the acquisition of Singapore’s Innovative Diagnostics Pte in 2018, and bought a minority stake in Australian drug testing company Safe Work Laboratories Pty the following year.(Updates with deal context in the sixth paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
(Bloomberg) -- Boeing Co. is seeking a new $4 billion revolving credit facility from a group of banks, according to people with knowledge of the matter, as it prepares to ride out a potentially lengthy slowdown in global aircraft demand.The planemaker has the option to increase the size of the two-year facility to as much as $6 billion, said the people, asking not to be identified as the transaction is private. So-called “revolver” loans are typically left undrawn by investment-grade rated firms such as Boeing and are used as a back-up form of liquidity.The company has leaned heavily on banks for financing over the past year. In early 2020, following a pair of crashes that grounded its 737 Max airplane, the company signed a $13.8 billion delayed-draw term loan, drawing the full amount down just weeks later amid the onset of the Covid-19 pandemic. That helped kicked off a global dash for cash as corporations tapped banks for hundreds of billions of dollars of financing.Representatives for Boeing and Citigroup Inc., which is leading the deal, declined to comment.Read more: Boeing will draw down $13.8 billion loan to stockpile cashIn recent months, Boeing has faced a raft of suspended or postponed orders as global air travel struggles to bounce back. In addition, the company is now dealing with manufacturing flaws in its 787 Dreamliner, and is trying to resolve issues that have halted deliveries of the jetliner since October.The Chicago-based planemaker’s path to generating cash over the next two years, after burning through $20 billion last year, depends on its ability to offload more than 500 jets -- mainly Dreamliners and 737 Max -- that have stacked up in inventory.Stockpiling LiquidityBoeing’s new $4 billion revolver is on top of its other existing forms of liquidity. The company already has about $9.5 billion of unused revolving credit facility capacity in three tranches spread out over 364-day, three-year, and five-year portions.While demand for Boeing’s debt has remained strong, the company’s investment-grade rating has come under pressure over the past year. The planemaker is now rated BBB-, the last rung before junk, by both S&P Global Ratings and Fitch Ratings. Moody’s Investors Service rates it one step higher at Baa2.The undrawn fee on the new revolver is 40 basis points based on current rating levels, according to the people with knowledge of the deal. If the company draws the loan, Boeing will pay a spread of 200 basis points over the London interbank offered rate. Boeing must also pay banks an initial 40 basis point upfront fee when the loan is signed.Commitments for the banks that decide to participate are due later this month, they added.(Updates throughout with more information about Boeing’s liquidity.)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.
Gold investors are anxious to see if Powell expresses concern about a recent volatile sell-off in Treasuries and his assessment of the economy.
(Bloomberg) -- Bitcoin’s appeal as a hedge against inflation is being put to the test, with the largest cryptocurrency slumping along with other risk assets after Jerome Powell failed to ease investor concern about rising price pressures.The digital token fell as much as 6.7% and traded at about $47,900 as of 2:38 p.m. in New York, after the Federal Reserve chairman said he is monitoring financial conditions and would be “concerned” by disorderly markets, but stopped short of offering specific steps -- which sent Treasury yields higher and stocks lower.“Once it feels like the market is in risk-off mode, which it clearly is, because if you’re selling everything except for energy, that’s very risk-off,” said Arthur Hogan, chief market strategist at National Securities Corp. “It really doesn’t matter whether you are Bitcoin or Ark or semis or banks -- every thing’s being thrown over the transom.”Bitcoin surged to more than $58,000 last month, with advocates such as MicroStrategy Inc. Chief Executive Officer Michael Saylor touting the token as alternative to cash because of the risk of rising inflation from government and central bank stimulus. Shares of the enterprise software maker, which has purchased over 90,000 Bitcoins, tumbled as much as 17% on Thursday. Critics say Bitcoin is in a giant, stimulus-fueled bubble that’s destined to burst like the 2017 boom and bust cycle. Bitcoin slid 21% last week but is still up more than fivefold in the past year. 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) -- Suez SA is in advanced talks to sell its Australian business to Cleanaway Waste Management Ltd., according to people familiar with the matter.A deal could value the French firm’s waste-treatment assets in Australia at about 2 billion euros ($2.4 billion), said one of the people, who asked not to be identified as the information is private. Talks are ongoing and could still be delayed or fall apart, the people said.Cleanaway has expressed interest to Suez about the asset purchase, while there’s no certainty that talks will lead to a transaction, the Sydney-listed company said in an exchange filing on Thursday. A representative for Suez in Australia didn’t immediately respond to requests for comment.A deal would fulfill Suez’s pledge to use divestitures to trim debt, boost return to shareholders, and invest more in new technologies as it seeks to fend off a hostile takeover approach by French rival Veolia Environnement SA. The move would also fuel tensions between Suez and Veolia, which have sparred in the media, the boardroom, and the courts since the suitor unveiled its plans at the end of August.Veolia, which bought almost 30% of Suez in October and is planning to buy the rest as part of a plan to create a global leader in water and environmental services, has warned that it would seek to oppose the sale of a series Suez’s strategic assets -- including its waste activities in Australia -- by any legal means.It also said it might reduce its 18 euro-per-share offer for Suez shares it doesn’t already own if Suez were to sell key businesses or take actions that would destroy value. A spokesman for Veolia couldn’t immediately comment on the Suez’s talks with Cleanaway.Suez shares were trading 0.3% lower at 17.45 euros at 9:46 a.m. in Paris Thursday, while Veolia shares rose 0.6%. Cleanaway closed 4% higher in Sydney.An acquisition would make Melbourne-based Cleanaway among the largest waste treatment operators in Australia. It’s searching for a new chief executive as its longtime leader Vik Bansal announced plans to step down after an investigation into his workplace conduct.(Updates with Veolia-Suez spat, shares from 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.
Gold fell to its lowest in nine months on Friday after better-than-expected U.S. employment data bolstered the dollar and U.S. Treasury yields, putting bullion on course for its third straight weekly decline. Spot gold was down 0.1% at $1,695.22 by 11:50 a.m. ET (1650 GMT), after falling to its lowest since June 8 at $1,686.40 in the session. "This optimism in regards to the economy moving forward continues to drive bond yields higher and that certainly has been taking the wind out of the sails of many commodity markets, including gold," said David Meger, director of metals trading at High Ridge Futures.
Blockchain payments firm Ripple has not experienced any fallout in its Asia Pacific business after being sued by the U.S. Securities and Exchange Commission (SEC), the company's chief executive officer said on Friday. In late December, the SEC charged Ripple, which is associated with cryptocurrency XRP, with conducting a $1.3 billion unregistered securities offering. After that, the top U.S. cryptocurrency exchange Coinbase shut down trading in XRP, which is the world's seventh-largest cryptocurrency by market value.
Payments will be harder to get this time, but it might help to file your tax return soon.
(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.
(Bloomberg) -- A lawmaker is calling for an investigation of a $54.2 million, after-hours purchase of Oshkosh Corp. stock the day before the company won a blockbuster contract to build trucks for the U.S. Postal Service.The transaction of 524,400 shares is bigger than Oshkosh trading volume for some entire days. The block itself amounted to almost 1% of the company’s publicly available shares and 74% of the firm’s 20-day average volume, according to data compiled by Bloomberg.Oshkosh shares surged as much as 16% the next day, Feb. 23, and have risen further since. The holdings would be worth $59.6 million at Friday’s closing price of $113.65, or more than $5 million above the purchase price. The parties involved in the trade couldn’t be determined.“It definitely stinks and needs to be looked into at the highest levels,” Representative Tim Ryan, an Ohio Democrat who is fighting the award to Oshkosh, said in an interview. “If that is not suspicious, I don’t know what is. Somebody clearly knew something.”Ryan said he will ask the Securities and Exchange Commission to investigate. Representatives of the agency didn’t immediately respond to an emailed request for comment after normal business hours.The Postal Service awarded the Wisconsin-based maker of military trucks a 10-year contract for as many as 165,000 vehicles worth as much as $6 billion.Ryan is backing the losing bid of Workhorse Group Inc. which has a 10% stake in Lordstown Motors Corp., which makes electric vehicles at a facility in Ryan’s congressional district.An Oshkosh representative didn’t respond to a voicemail and and email seeking comment.The move to award Oshkosh the contract stunned Wall Street analysts who had predicted Workhorse’s proposal to make electric trucks would win at least some of the order. Workhorse is considering challenging the award.Trades outside of normal market hours can have a significant impact on share prices because market activity is thinner.Ryan, who said he is drafting a letter to the SEC, has joined with Ohio Democrats Marcy Kaptur and Senator Sherrod Brown in calling for the Biden administration to halt and review the Postal Service award to Oshkosh.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 early price action suggests the direction of the March U.S. Dollar Index on Thursday will be determined by trader reaction to 91.020.
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.
Within a few months, he made enough for a down payment on a second home, in sunny Tampa, Fla. “I looked her up, and it all sounded really good,” he tells Barron’s. “I started investing with ARK just three days later.” The “her” is Cathie Wood, who founded ARK Investment Management seven years ago, and joins our list of the 100 Most Influential Women in U.S. Finance this year. It isn’t just that ARK’s actively managed funds have done well, although they have—phenomenally so: Last year, five of its seven ETFs returned an average of 141%; three were the top performers among all U.S. funds.
Some households are collecting a big pile of federal money in 2021.
(Bloomberg) -- Alexander Höptner was leading the Börse Stuttgart when he jumped at the chance to take a top job with BitMEX, a pioneering cryptocurrency exchange known for its high-risk offerings.Just a few months later, the people who hired him found themselves fugitives wanted by the U.S. government. Federal prosecutors in New York charged outspoken co-founder Arthur Hayes and other senior officers at the company with failing to deploy an adequate anti-money laundering operation at the derivatives trading platform. Hayes, along with fellow owners and co-founders, resigned from his day-to-day leadership duty at the exchange’s holding company.Now Höptner is tasked with steering BitMEX out of its biggest-ever crisis and transforming a renegade crypto startup into something much more staid. His goal: amend relationships with global regulators while also expanding businesses ranging from spot trading to brokerage and custody services.“I was coming from the regulated and classical world. I have a lot of touch points with the regulators already,” the 50-year-old said in his first sit-down interview since starting the CEO role in January. “Now I’m working on the crypto side and bringing the crypto side to the regulated world,” said Höptner, currently in Hong Kong while he considers a permanent base in Asia.See the Bloomberg Television interview here.He declined to comment on the criminal charges against the BitMEX co-founders, or on a parallel civil action by the U.S. Commodity Futures Trading Commission alleging BitMEX illegally allowed Americans to trade on the platform. Hayes, who was in Singapore, discussed surrendering to U.S. authorities in April, according to a court filing unveiled this week.Read more: BitMEX Founders Charged With Failing to Prevent LaunderingBack in his native Germany, Höptner helmed the Börse Stuttgart when it became the country’s first regulated trading venue for digital tokens in 2019, and before that spent over a decade with the rival Frankfurt Stock Exchange. It didn’t take him long to accept the BitMEX job offer, he said, because he had been contemplating a move into crypto derivatives on the global stage.“Alex wants to move faster in the crypto economy. He knows it’s not possible for him to do that in Stuttgart,” said Thomas Munz, a former board member at the German exchange who retired in October.Already, there are some changes in the company’s tone and policies. In January BitMEX said it had verified the identities, locations, and credentials of all of its customers, a program it kicked off in August. Corporate customers now represent about 60% of volume -- totaling $1 trillion over the past year -- as the exchange expands beyond its core following of risk-loving retail traders. On average, users apply single-digit leverage to multiply their bets, it said. That’s far from the highest leverage of 100 times the platform allows, which also gives the name to its holding company, 100x Group.Höptner says he’s engaging with regulators globally to get to the point where BitMEX can provide services on a regulated basis, and also work to help shape government oversight.“We are approaching regulators where we are currently present, but we will also reach out to regulators where we are not,” he said.Just as rivals like Binance are chipping away at BitMEX’s market share in derivatives, Höptner is preparing to expand BitMEX’s offering into spot trading and adjacent areas like brokerage and custody, handling transactions and assets for clients.“We have to very fast make up our mind how we want to approach these aspects and then see whether we could find a partner or whether we build something or buy something,” he said.He also has to contend with the memory of Hayes, a poster boy for the early, more freewheeling days of cryptocurrencies. The 34-year-old trader-turned-entrepreneur recently broke a silence maintained since the indictment in a blog post championing crypto’s rally and meme stocks like GameStop Corp.On stepping into the shoes of the iconic founder, Höptner said: “I’m not trying to be somebody else. I am who I am.”(Updates with CEO exploring a permanent base in the 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.
Virgin Galactic Holdings Inc. Chairman Chamath Palihapitiya sold off a chunk of his shares this week, and played a part of the plunge in prices.
(Bloomberg) -- Trouble may be brewing in China for Bitcoin’s raucous and divisive rally as the nation pushes ahead with a world-leading effort to create a digital version of its currency.That’s because the eventual rollout of the virtual yuan could roil cryptocurrency markets if Chinese officials tighten regulations at the same time, according to Phillip Gillespie, chief executive of crypto market maker and liquidity provider B2C2 Japan, which mainly works with institutional investors.“Once a digital yuan is introduced, that’s going to be one of the biggest risks in crypto,” Gillespie, who previously worked in currency markets for Goldman Sachs Group Inc., said in an interview. “Panic selling” is possible if the new rules end up sucking liquidity from trading platforms for digital coins, he said.Central banks’ power to issue virtual money and proscribe rivals is one of the key risks for the crypto sector. Chinese citizens are already banned from converting yuan to tokens but the practice continues under the table using Tether, a digital coin that claims a stable value pegged to the dollar. The money parked in Tether then gets routed to Bitcoin and other tokens.Tokyo-based Gillespie sees potential for an outright ban on Tether, which could raise the stakes for anyone minded to continue using it.A draft People’s Bank of China law setting the stage for a virtual yuan includes a provision prohibiting individuals and entities from making and selling tokens. In recent days, China’s Inner Mongolia banned the power-hungry practice of cryptocurrency mining.Representatives of the People’s Bank of China didn’t reply to a fax seeking comment on the prospect of regulatory changes. While there’s no launch date yet, the PBOC is likely to be the first major central bank to issue a virtual currency after years of work on the project.Tether officials have downplayed the concern, saying that central bank digital currencies won’t mean the end of stablecoins.“Tether’s success has provided a blueprint for how a CBDC could work,” said Paolo Ardoino, chief technology officer for Tether and Bitfinex, an affiliated exchange. “Furthermore, CBDC’s are unlikely to be available on public blockchains such as Ethereum or Bitcoin. This last mile may be left to privately-issued stablecoins.”Still, Gillespie points out that Tether is “this massive amount of fuel for Bitcoin purchases” and few people realize the potential for disruption. A “tremendous amount of liquidity” is coming from exchanges tapping Chinese demand, he added.Tether QuestionsBitcoin surged fivefold in the past year and hit a record above $58,000 last month before dropping back about $10,000. The rally has split opinion, with some arguing a new asset class is emerging and others seeing pure gambling by retail investors and speculative pros in the Wild West of finance.Tether is an equally controversial token deep in the plumbing of the nascent cryptocurrency market. Traders use it to park money as they shift from virtual to fiat cash.More than $18 billion of Tether moved overseas from East Asian addresses over a one-year period, including spikes suggesting Chinese origin, according to an August report from Chainalysis, which analyzes the blockchain network technology underlying tokens. The report indicated citizens may be using Tether to dodge rules that limit capital transfers abroad.Questions about Tether continue to swirl. The companies behind it were banned from doing business in New York last month as part of a settlement with state officials who found that they hid losses and lied about reserves.‘Liquidity Shock’A recent report from JPMorgan Chase & Co. said there’d likely be “a severe liquidity shock to the broader cryptocurrency market” if issues arose that affected the “willingness or ability of both domestic and foreign investors to use Tether.”“All the volume goes through Tether,” said Todd Morakis, co-founder of digital-finance product and service provider JST Capital. “As regulators become more and more restrictive on stablecoins, that could be very negative for the market because that could mean less liquidity.”B2C2 Japan’s Gillespie said Tether is “such a risky asset” and a “massive liquidity shock” is possible if China does ban it. “What would happen is there’s going to be massive panic selling,” he said.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.
Despite the recent selloff in electric-vehicle stocks like Tesla and Nio, there is still intense investor interest in the sector, with demand for electric-vehicles expected to climb dramatically over the next decades.
As the April 15 deadline to file and pay taxes closes in, some of the accountants preparing those returns are telling the Internal Revenue Service they need more time. “In the current environment, it is simply not possible for many taxpayers and their tax advisers to meet their filing and payment obligations that are due on April 15,” according to a Thursday letter from the American Institute of Certified Public Accountants. The professional organization with more than 431,000 members wants the IRS to move the tax deadline to June 15.