Different shopping habits of young people are causing Marcy's, JC Penny and Nordstrom to close stores.
Different shopping habits of young people are causing Marcy's, JC Penny and Nordstrom to close stores.
Ant Group is exploring options for founder Jack Ma to divest his stake in the financial technology giant and give up control, as meetings with Chinese regulators signaled to the company that the move could help draw a line under Beijing's scrutiny of its business, according to a source familiar with regulators' thinking and two people with close ties to the company. Reuters is for the first time reporting details of the latest round of meetings and the discussions about the future of Ma's control of Ant, exercised through a complicated structure of investment vehicles. The Wall Street Journal previously reported that Ma had offered in a November meeting with regulators to hand over parts of Ant to the Chinese government.
A pension fund filed a lawsuit against Credit Suisse Group AG on Friday in a U.S. court, accusing the Swiss bank of misleading investors and mismanaging risk exposure to high-risk clients, including Greensill Capital and Archegos Capital Management. The pension fund, City of St. Clair Shores Police & Fire Retirement System, based in St. Clair Shores, Michigan, filed the class action lawsuit in federal court in Manhattan, alleging violations of federal securities laws.
Chamath Palihapitiya By Jarrett Banks and John Jannarone Short interest in Chamath Palihapitiya-backed Clover Health Investments Corp. (Nasdaq: CLOV) is at 150%, data compiled by financial analytics firm S3 Partners shows. The level is reminiscent of the huge short interest in GameStop Corp. that was followed by a retail trading frenzy in January when the […]
French automaker Renault will seek to generate more than 1 billion euros ($1.20 billion) in sales from the so-called "circular economy" by turning its Flins factory outside Paris into a research, recycling and repair centre, its boss told French weekly Journal du Dimanche. "Our ambition, by 2030, is to achieve more revenue (from recycling and repair at Flins) than from assembling cars there," said Luca de Meo, Renault's chief executive.
(Bloomberg) -- Asia’s billionaires had only just started taking to blank-check companies, but now the SPAC boom is deflating on Wall Street.After a frenzy of listings by special purpose acquisition companies - 326 have raised over $101 billion this year -- the whole pipeline is now in limbo due to regulatory overhang, including a number of deals by Asian investment firms and tycoons.Gateway Strategic Acquisition Co., backed by buyout firm Gaw Capital Advisors Ltd., Artisan Acquisition Corp., backed by New World Development Co.’s Adrian Cheng and Hony Capital Acquisition Corp. are some of the Asian SPACs that are waiting in the wings to list in the U.S.They all filed over two weeks ago, meaning they can launch the initial public offering, but have yet to do so. But they are now waiting until market sentiment improves, according to people familiar with the matter, who are not authorized to speak publicly and asked not to be identified.The U.S. Securities and Exchange Commission this week put a dampener on the SPAC party by setting forth new guidance that warrants, which are issued to early investors in the deals, might not be considered equity instruments and may instead be liabilities for accounting purposes. That threatens to disrupt filings for blank-check companies until the issue is resolved.It’s bad timing for Asia’s entrepreneurs. In addition to those waiting to launch, more SPACs are being planned by the likes of Hong Kong’s richest property tycoon Li Ka-shing, New Frontier Group Ltd., backed by the China-focused Nan Fung Group and private equity firm EmergeVest.The latest moves by the SEC “no doubt mean that the clearing of SEC registration statements of Asian SPACs (and indeed SPACs elsewhere in the world) will likely take longer as the issuer considers their impact and addresses the likely related comments from the SEC staff,” said Thomas Vita, corporate finance partner at global law firm Norton Rose Fulbright.Asian SPACs have raised $3.1 billion this year, already exceeding the tally from such deals in all of 2020. While still small, the fast-expanding volume underscores the growing appeal of SPACs to the region’s business entrepreneurs.A cooling off in the SPAC market may not be all bad news, given the bubble-like quality it had garnered.“The SPACs which have listed in U.S. before the SEC flashed the amber light recently do not necessarily have the first-mover advantage over aspiring Asian sponsors and promoters,” said Robson Lee, partner at Gibson Dunn. The surge in the number of SPAC listings in the U.S. does not guarantee successful mergers with viable target businesses and it appears to be a phenomenon of market frenzy, he added.The U.S. regulator had also warned listing candidates that structuring as a SPAC isn’t an end-around to avoid disclosing key information to investors. To top it off, SPACs are no longer buzzing as they once were, going so far to even underperform traditional IPOs.“It will be interesting to see what happens in the U.S. on the regulatory front. Asian regulators and stock exchanges will be watching closely,” said Johannes Juette, partner at law firm Clifford Chance.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 direction of the June U.S. Dollar Index on Friday is likely to be determined by trader reaction to 91.555.
(Bloomberg) -- The Biden administration is evaluating the impact of new sanctions on Russia and is prepared to escalate those penalties if the Kremlin fails to rein in hacking attacks and attempts to interfere with the U.S. political process, according to people familiar with the matter.Options available to President Joe Biden include expanding the measures announced Thursday to bar U.S. financial institutions from the secondary market for ruble-denominated bonds issued by Russian state banks, said the people, who discussed the matter on condition of anonymity.Biden ordered the latest sanctions on Russia -- including limits on buying newly issued sovereign debt -- in response to allegations that Moscow was behind a hack on SolarWinds Corp. and interfered with last year’s U.S. election.The U.S. also sanctioned a number of entities and individuals, while expelling 10 Russian diplomats working in Washington, including some intelligence officers.Yet the moves were calibrated by the U.S. to punish the Kremlin for past misdeeds while keeping relations from deteriorating further, especially as tensions grow over a Russian military buildup near Ukraine.In another sign of worsening relations between the two countries, Russia on Saturday accused a Ukrainian diplomat of stealing information and gave him three days to leave the country on Saturday, the news agency Interfax reported. Ukraine hinted it would respond in kind. Two days before announcing the sanctions, Biden offered to meet Russian President Vladimir Putin later this year, even as he warned his counterpart about a litany of transgressions.White House communications staff didn’t immediately offer a comment.For now, U.S. officials are waiting to see how Putin responds. On Friday, Russia expelled 10 American diplomats and imposed sanctions on eight officials in tit-for-tat moves that stopped short of responding to U.S. restrictions on its sovereign debt.Foreign Minister Sergei Lavrov told reporters in Moscow that Russia could take steps that harm the interests of U.S. businesses but will hold those in reserve for now.Market ImpactThe Biden administration is also watching global markets to see the impact of its latest measures, including on the ruble, and any shifts in foreign ownership of Russian ruble bonds, according to the people. Interest rate decisions by Russia’s central bank and capital flows will also provide important clues, they said.The Bank of Russia’s next interest rate decision is scheduled for April 23.Under the sanctions unveiled Thursday, the Biden administration will bar U.S. financial institutions from participating in the primary market for new debt issued by the Russian central bank, Finance Ministry and sovereign wealth fund. Those limits would take effect starting June 14.Russian bonds fell and the ruble dropped the most since December on news of the impending penalties, but recovered their losses on Friday as investors concluded that the measures were milder than had been feared.White House officials sought to limit the sanctions’ fallout for the U.S. and global financial system while sparing the Russian civilian population from unnecessary harm, the people said. The Biden team now hopes to begin de-escalating tensions and believe that would benefit financial markets and the Russian economy, one of the people said.Still, U.S. officials are holding in reserve other potential escalations, including moves aimed at preventing secondary market trading in any ruble debt for the first 90 days or more after issuance, the person said.(Updates with Russia expelling Ukraine diplomat in fifth 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) -- As London’s shops and pub gardens reopen for the first weekend in three months, funds targeting smaller U.K. companies are among the best performers in Europe thanks to a rally in domestic stocks that benefit from Britain’s vaccine rollout success.Among Western European stock funds with $200 million or more in assets, the majority of the 10 best performers this year are focused on U.K. small caps, according to data compiled by Bloomberg. The FTSE Small Cap Index has gained 14% in 2021 versus a rise of 11% for a benchmark tracking small stocks on euro-area exchanges.The nation’s markets are benefiting from a confluence of factors: Valuations had been depressed by the overhang of the U.K.’s departure from the European Union, and during the worst of the pandemic, when there was no economic growth, investors were will paying to pay a premium for the few companies that were enjoying rapid increases in sales. With the Brexit cloud removed and the economy rebounding as virus restrictions ease, investors are turning back to domestic stocks and those that are cheap relative to earnings.“The ability to generate a return in the U.K. market compared with the most other stock markets is very, very attractive,” said Gervais Williams, co-manager of the Premier Miton U.K. Smaller Companies Fund. Previously, the U.K. had been “very much out of fashion.”U.K. smaller companies are still inexpensive: The FTSE Small Cap sells for about 14 times estimated earnings for this year, compared to a multiple of 20.8 for the Euro Stoxx Small Index.“I’ve been investing since ‘85; I don’t think I’ve ever known this mismatch, this disparity,” said Williams, whose fund has returned 26% in 2021 with holdings including appliances retailer AO World Plc, chilled-storage provider Norish Plc and insurance investor Randall & Quilter Investment Holdings Ltd.Small caps are a traditional way of gaining exposure to the economic cycle, said James Athey, a money manager at Aberdeen Standard Investments.“That end of the company spectrum is, by far and away, most likely to have been heavily and negatively affected by lockdown, because you tend to be talking about companies that deal with these sort of parochial face-to-face services which have been essentially banned for most of this period,” Athey said by phone.English consumers have been splashing out in shops, pub gardens and hairdressers since Monday after venues were allowed to reopen following almost 100 days of being closed to control the spread of Covid-19. Britain also hit its target a few days ahead of schedule of offering a first coronavirus vaccine shot to all over-50s, as its inoculation campaign progresses faster than those of its continental neighbors.In many countries around Europe, meanwhile, restrictions remain in place, with France keeping open-air cafes closed until at least May 15 and Germany taking steps to allow the federal government to impose tighter restrictions.To be sure, it’s not just small-cap funds that are outperforming, with the continued interest in cheaper value stocks instead of high-growth companies also benefiting U.K. mid- and large-cap funds.The U.K. market, with its heavy weighting in commodity companies, is tilted toward value and cyclical shares.“There’s been a colossal rotation that we’ve been enormous beneficiaries of,” said Ian Lance, co-manager of Temple Bar Investment Trust Plc, which has returned 24% year-to-date with bets on stocks like postal group Royal Mail Plc, high street bank Natwest Group Plc and retailer Marks & Spencer Group Plc.Many of Temple Bar’s holdings were cheap even before the pandemic, so recent rallies don’t mean they are now overvalued, Lance said by phone.One issue with small caps is that they often play just one theme -- in many cases right now, the reopening -- leaving them vulnerable to any potential hiccups in the vaccine roll-out, Alexandra Jackson, manager of the Rathbone U.K. Opportunities Fund, said in an interview.Slightly larger companies that might prove to be less “binary” in that sense include Softcat Plc, a technology infrastructure group that also offers work-from-home tech, and construction retailers like Howden Joinery Group Plc and Grafton Group Plc, which should benefit from an elevated interest in home improvements even after people get used to post-lockdown life, said Jackson, whose fund is up 7.4% this 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.
After a pandemic-induced lull in borrowing, governments and investors are feeling more confident about Africa's prospects.
(Bloomberg) -- Europe’s late but accelerating vaccination push is allowing monetary officials to begin pondering an economic future free of the curse of the coronavirus.While European Central Bank policy makers will reiterate existing emergency stimulus settings with a horizon of March 2022 when they meet by video this week, the step-up in immunizations across the region has emboldened some of them to start a public discussion on what might happen when the pandemic no longer menaces the euro region.There’s a spectrum of views on that outlook. Dutch central bank Governor Klaas Knot favors tapering crisis bond purchases as soon as the third quarter, while his French colleague, Francois Villeroy de Galhau, cites March as a possible end date. President Christine Lagarde reckons monetary support will be needed “well into the recovery.”ECB officials know only too well that weaning financial markets off emergency stimulus is a fraught task. For now, they have the comfort of knowing that they still have time before any winding down of stimulus needs to begin, and in the meantime they can look across the Atlantic for a guide to the pitfalls.The Bank of Canada has already hinted that it might be one of the first Group of Seven institutions to start paring back monetary policy support. At the central bank’s next decision on Wednesday, officials may announce slower bond purchases, a policy shift that their counterparts in Frankfurt can only dream of for now.What Bloomberg Economics Says:“The ECB will no longer have to fret about rising government borrowing costs when it meets on April 22. A full assessment of the pace of asset purchases will not happen until June, but the tone of this week’s press conference may offer some hints on the debate to come. The hawks are likely to focus on the successful containment of bond yields and the economic recovery, while the doves will be more cautious.”--David Powell, senior euro-area economist. For full analysis, click hereElsewhere, central bankers in Russia, Israel and Indonesia also hold rate decisions and China follows up record-breaking GDP data with its high-profile Boao forum.Click here for what happened last week and below is our wrap of what is coming up in the global economy.U.S. and CanadaIn the U.S., investors will be watching for the latest reading of weekly jobless claims -- after they dropped to a new pandemic low -- to gauge whether upside momentum in the labor market is holding. Reports on manufacturing, services, new and existing homes sales are also due out.Officials at the Federal Reserve are in blackout ahead of their next policy meeting on April 27-28.If the Canadian central bank’s decision on Wednesday proceeds to detail next steps to pare bond purchases, such a roadmap would set policy apart from the neighboring U.S., where the Fed isn’t expected to attempt a so-called taper until next year.The BOC has been buying a minimum of C$4 billion ($3.2 billion) in government bonds each week, accumulating more than C$250 billion over the past year. That pace is likely no longer warranted with an outlook that appears to improving dramatically by the week, helped by a recovery in commodity prices and a robust housing market.Meanwhile, Canadian Prime Minister Justin Trudeau will make a pitch for tens of billions in additional spending to support the recovery.For more, read Bloomberg Economics’ full Week Ahead for the U.S.AsiaChina is signaling it’s open for business with the resumption of its high-profile Boao forum, where key leaders, senior government officials and business executives will discuss the economy’s outlook in a post-pandemic world. Among likely speakers are PBOC’s Governor Yi Gang, IMF Managing Director Kristalina Georgieva, Apple’s Tim Cook, Tesla’s Elon Musk and BlackRock CEO Larry Fink.Japanese export figures will offer an indication of how firmly world demand is recovering as the pandemic grinds on. Early April figures for South Korea will provide an even more up-to-date snapshot of the health of global trade, as will Taiwan export orders for March.Japan inflation numbers are still likely to show falling prices ahead of a Bank of Japan meeting the following week that is set to show inflation failing to reach 2% during Haruhiko Kuroda’s stint as governor.Indonesia is set to keep interest rates steady at Tuesday’s meeting.For more, read Bloomberg Economics’ full Week Ahead for AsiaEurope, Middle East, AfricaInitial data on economic activity in April will likely show the U.K.’s dominant services industry has rebounded strongly as larger parts of the economy reopened. The same can’t be said about activity in major euro-zone economies reeling under renewed restrictions.U.K. inflation, meanwhile, probably stayed well below the Bank of England’s target in the previous month.Read more: U.K. Economy Picks Up Steam as Hiring Restarts With Lockdown EndIsrael is expected to keep rates on hold at 0.1% on Monday as the central bank helps steer the world’s most-vaccinated economy out of lockdown. The central bank chief said the low long-term interest-rate policy will continue as long as there isn’t an unexpected inflationary surge, and the primary goal is to return to growth.Data on Wednesday will probably show that Ghana’s economy grew 1.3% in the fourth quarter after the country eased pandemic restrictions. In South Africa, inflation is forecast to accelerate to 3.3%, back within the lower bound of central bank’s target range.For more, read Bloomberg Economics’ full Week Ahead for EMEALatin AmericaLook for Brazil’s economic activity indicator posted Monday to show a second straight decline in February, which reflects the end of government aid to poor families, rising prices and a deadly new phase of the pandemic.Though well short of the crisis in Brazil, a new wave of the virus in Colombia likely undercut February’s economic activity index after a -4.6% print in January.In Mexico, a report out Thursday should put bi-weekly inflation up near a three-year high, pressured by core goods and energy. Analysts see Banxico holding at 4% this year, year-end inflation just above the 4% target ceiling with growth at a decade-high.The country’s unemployment rate probably held near a five-year high in March while retail sales data should betray significant slack in the economy.Don’t let Thursday’s report on Argentina’s economic activity –- it likely rose for a 10th month in February -- obscure the big picture: After three years of recession, more than 40% of the country has fallen into poverty, it’s cut off from credit markets, Covid-19 cases have spiked and inflation is surging.For more, read Bloomberg Economics’ full Week Ahead for Latin AmericaFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
(Bloomberg) -- Bitcoin plunged the most in more than seven weeks, just days after reaching a record.The biggest crypto coin fell 10.1% to $54,743.57 as of 7:30 a.m. in New York on Sunday, after declining as much as 15.1% to $51,707.51 in the Asian day. Ether, the second-largest token, dropped almost 18% before paring losses.Several online reports attributed the plunge to speculation the U.S. Treasury may crack down on money laundering that’s carried out through digital assets.Bitcoin hit a record high of $64,869.78 last week ahead of the debut trade for the cryptocurrency exchange Coinbase Global Inc. on the Nasdaq exchange Wednesday. Coinbase ended its first trading week on a high note after bullish reviews from Wall Street analysts.Dogecoin, a token created as a joke and which has been boosted by the likes of Elon Musk and Mark Cuban, rallied more than 110% Friday before dropping the next day. Demand was so brisk for the token that investors trying to trade it on Robinhood crashed the site, the online exchange said in a blog post Friday.“The crypto world is waking up with a bit of a sore head today,” said Antoni Trenchev, co-founder of crypto lender Nexo. “Dogecoin’s 100% Friday rally was ‘peak party,’ after the Bitcoin record and Coinbase listing earlier in the week. Euphoria was in the air. And usually in the crypto world, there’s a price to pay when that happens.”Besides the “unsubstantiated” report of a U.S. Treasury crackdown, Trenchev said factors for the declines may have included “excess leverage, Coinbase insiders dumping equity after the direct listing and a mass outage in China’s Xinjiang province hitting Bitcoin miners.”Growing mainstream acceptance of cryptocurrencies has spurred Bitcoin’s rally, as well as lifted other tokens to record highs. Interest in crypto went on the rise again after companies from PayPal to Square started enabling transactions in Bitcoin on their systems, and Wall Street firms like Morgan Stanley began providing access to the tokens to some of the wealthiest clients. That’s despite lingering concerns over their volatility and usefulness as a method of payment.Governments are inspecting risks around the sector more closely as the investor base widens.Federal Reserve Chairman Jerome Powell last week said Bitcoin “is a little bit like gold” in that it’s more a vehicle for speculation than making payments. European Central Bank President Christine Lagarde in January took aim at Bitcoin’s role in facilitating criminal activity, saying the cryptocurrency has been enabling “funny business.”Turkey’s central bank banned the use of cryptocurrencies as a form of payment from April 30, saying the level of anonymity behind the digital tokens brings the risk of “non-recoverable” losses. India will propose a law that bans cryptocurrencies and fines anyone trading or holding such assets, Reuters reported in March, citing an unidentified senior government official with direct knowledge of the plan.Crypto firms are beefing up their top ranks to shape the emerging regulatory environment and tackle lingering skepticism about digital tokens. Bitcoin’s most ardent proponents see it as a modern-day store of value and inflation hedge, while others fear a speculative bubble is building.(Updates with comments on decline from paragraph five)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.
See some strategies to reduce your payments by cutting the interest on your debt.
The amount represents roughly 1.5% of his holdings.
The IRS chief tells Congress the child tax credit payments will arrive on time after all.
The car company said it and LG Chem are building a production facility in Tennessee. Think of a Tesla Giga factory, GM style.
WASHINGTON (Reuters) -The U.S. Treasury Department on Friday said Vietnam, Switzerland and Taiwan tripped its thresholds for possible currency manipulation under a 2015 U.S. trade law, but refrained from formally branding them as manipulators. In the first semi-annual foreign exchange report issued by Treasury Secretary Janet Yellen, the Treasury said it will commence "enhanced engagement" with Taiwan and continue such talks with Vietnam and Switzerland after the Trump administration labeled the latter two as currency manipulators in December.
The IRS commissioner now says the monthly payments will indeed start in July.
On Friday, Keith Gill exercised his 500 GameStop call options to get 50,000 more shares at a strike price of $12, which is less than a tenth of the current stock price. What Happened: Keith Gill, the Reddit WallStreetBets trader, also bought 50,000 more GameStop Corp (NYSE: GME) shares, bringing his total investment to 200,000 shares worth more than $30 million. Gill — who goes by DeepF------Value on Reddit and Roaring Kitty on YouTube — is the man who helped inspire the GameStop short squeeze in January. On Friday, he shared a screenshot of his portfolio marked "final update" on the WallStreetBets subreddit. The screenshot showed nearly $34.5 million in his assets with $30.9 million of GameStop shares and $3.5 million in cash. The Wall Street Journal also reported Gill held more than $30 million in assets. Gill uploaded a video on YouTube entitled "Cheers everyone!" According to Gill's latest update on Reddit's r/WallStreetBets forum, his average price paid for GameStop shares is $55.17. Keith Gill gained fame amid Reddit's WallStreetBets craze. He has been posting about GameStop for a year and also making videos on YouTube. Gill found himself in the middle of the GameStop story after posting about large gains made from buying the stock before its 1,000% increase. Gill was registered as an agent with MML Investors Services LLC, a broker-dealer arm for Mass Mutual. Last month, the company filed a termination request with FINRA to remove Gill's broker license. In February, a class-action lawsuit was filed against Gill after the GameStop short squeeze. He appeared at a Congressional hearing in February regarding Reddit's influence on the market. The CEOs of Robinhood, Citadel and Melvin Capital also spoke at the hearing. Price action: GameStop closed Friday at $154.69. Image: Screenshot of Keith Gill's video See more from BenzingaClick here for options trades from BenzingaKorean EV Battery Suppliers To Ford, VW Reportedly Reach Agreement To Avoid Import DisruptionWhy Alibaba Just Got Hit With A Record .87 Billion Fine In China© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
'Sell in May and go away,' advises the trading maxim. But with stocks at record highs, one trader at the New York Stock Exchange is recommending a related but different strategy.
All manner of weird things keep happening in financial markets, from bond yields that go down when they should go up, to near-daily swings between big-picture convictions. It's hard to manage money when everything feels so fragile.