Stocks selling off today as worry grows on Wall Street, but Lee Munson of Portfolio Wealth Advisors says investors just need to RELAX.
Stocks selling off today as worry grows on Wall Street, but Lee Munson of Portfolio Wealth Advisors says investors just need to RELAX.
(Bloomberg) -- GlaxoSmithKline Plc’s management defended the company’s strategy as the pharmaceutical giant comes under growing pressure to revive its fortunes after activist investor Elliott Management Corp. took a stake.Speaking at Glaxo’s annual general meeting Wednesday, Chairman Jonathan Symonds said he understood investor skepticism, but said the company was now “doing the right things” and asked shareholders to judge it on the results. Glaxo is preparing to split in two next year, spinning off its consumer unit and leaving the remaining company focused on biopharma and vaccines.“We recognize there is much still to do,” Symonds said at the virtual AGM. We “understand skepticism given promises made in the past. But be in no doubt that we -- this board and this management team -- are determined to deliver.”Glaxo is in the middle of a turnaround effort led by Chief Executive Officer Emma Walmsley, who has been in post since 2017. The company has lagged behind competitors, notably fellow British drugmaker AstraZeneca Plc, after it moved away from lucrative areas like oncology, which Walmsley has been trying to rebuild. Pressure on Glaxo to demonstrate successful change stepped up in recent weeks because of Elliott’s move to build a stake.While the activist hedge fund’s plans are unknown, investors and analysts have speculated it may push Glaxo to execute its split and strategy faster. The company is planning to set out the blueprint for the new business in June. Symonds reiterated Thursday that the dividend for the two new companies will be lower than the longstanding annual payout of 80 pence a share.The company has also come under fire for its absence on the Covid-19 vaccine effort. Glaxo decided early on to use its adjuvant technology -- substances used to enhance the immune response to vaccines -- to partner with other drugmakers in developing a shot, rather than creating its own. Symonds acknowledged at the meeting that it was “disappointing” its main partnership with Sanofi hasn’t moved as quickly as planned.Glaxo is still working with a number of companies to develop coronavirus shots that could be available later this year. The company is also awaiting emergency approval from U.S. regulators for its Covid-19 antibody treatment with Vir Biotechnology Inc.It was “disappointing that the largest of those partnerships -- Sanofi -- was delayed,” Symonds said. “We intend to be competitive across a range of vaccine technologies, including mRNA, and we are well-placed to do this.”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) -- Qatar’s prosecutor ordered the arrest of Finance Minister Ali Sharif Al-Emadi to question him over an alleged abuse of power and misuse of public funds, state-run Qatar News Agency reported.Al-Emadi was named finance minister a day after Sheikh Tamim bin Hamad Al Thani took over leadership of the country in June 2013, and has held the role since. The prosecutor has launched an investigation, QNA said on Thursday. No further details were immediately available.The arrest was unusual, because allegations of criminal conduct by senior state officials or members of ruling families in the Gulf are typically addressed behind closed doors. Saudi Arabian Crown Prince Mohammed bin Salman’s declared anti-corruption drive in 2017, which targeted royals and businesspeople, was an exception.Still, Qatar’s dollar bonds held on to most of their earlier gains following the news, with the yield on the security due 2050 down about 4 basis points to 3.4%. The country’s stock market has closed for the weekend.Al-Emadi had been a stalwart of Qatar’s financial system, helping to transform Qatar National Bank from a local champion into the region’s biggest lender as its chief executive from 2007 to 2013. He currently serves as chairman of the bank’s board, is president of the executive board of Qatar Airways, and is also on the board of Qatar Investment Authority, the country’s sovereign wealth fund.More recently, amid speculation that Al-Emadi had fallen out of favor, he was replaced as chairman of the Qatar Financial Centre -- a platform through which most foreign financial firms working in the country are registered and among agencies that encourage foreign investment.Al Emadi has been regarded as a budget-conscious finance chief, reluctant to raise excess debt even though Qatar’s bond yields are among the lowest in developing economies. At the same time, he’s overseen heavy spending in preparation for the 2022 FIFA World Cup that Qatar is to host. Bloomberg Intelligence estimates the country will plow $300 billion into infrastructure projects ahead of the soccer tournament.(Updates with details on finance chief in last 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) -- Investors should start preparing for higher U.K. borrowing costs, even if they take a while to materialize.That’s the view of strategists at UBS Group AG and NatWest Markets, who recommended positions that would benefit from an increase in interest rates in a year or two.While the Bank of England has signaled it will continue to support the economy with record-low interest rates and 150 billion pounds ($209 billion) of bond buying by year-end, the success of the U.K.’s vaccination drive has super-charged the recovery and plans for a full reopening in June look to be on course.A market measure of price increases climbed to a decade-high last month. Any further rise in inflation expectations could prompt the Monetary Policy Committee to take stronger steps to control rising prices once the dust has settled, wrote John Wraith, head of U.K. and European rates at UBS.“In due course, the MPC will raise rates materially faster than is currently priced in, should inflation dynamics require them to do so,” said Wraith, adding that a further material rise in rates in one year “could be imminent.”To capture the move, he recommends paying one-year swaps, starting in two years against the overnight rate or targeting a higher premium on the one-year swap rate between the one- and three-year forward points.Such swaps exchange fixed-rate payments for floating-rate ones, and are used by investors ranging from pension funds to insurers, as well as companies managing their future liabilities.Meanwhile, NatWest Markets envisages a similar response by BOE policy makers to higher growth and inflation numbers, and doesn’t rule out a single 40-basis-point rate hike to 0.5% at some point in 2023. U.K. strategist Theo Chapsalis recommends paying two-year overnight rates one-year forward to position for such a move.The BOE announces its latest policy decision at 12 p.m. on Thursday, with money markets betting the central bank will keep interest rates steady for the remainder of the year before raising them about 45 basis points in two-year’s time.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.
You could be entitled to additional money, based on your 2020 income tax return.
Volkswagen is looking for outside money in its plan to build up to six battery cell factories in Europe by 2030, Chief Executive Herbert Diess said on Thursday, adding he was open to listing some of those activities on the stock exchange. Diess said the carmaker could not fund these plants alone. Volkswagen announced in March the battery factory plans, which are expected to have a capacity of 240 gigawatt hours.
Another than 1.1 million economic stimulus checks worth more than $2 billion are on the way, the IRS said. The payments included "plus-up" checks.
(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.
In an interview with Fortune, Alba talked about taking her “fourth baby” (a.k.a. her company) public.
The European Central Bank will take a closer look at bank loans to lightly regulated investment funds and specialised lenders after the spectacular collapses of Archegos Capital Management and Greensill, top ECB supervisor Andrea Enria told Reuters. Regulators have long worried about the rise of so-called shadow banking, or lending by entities outside the traditional banking sector that are not subject to the same scrutiny as the mainstream banks they often borrow from. The area has come under sharper scrutiny following the demise this year of supply-chain lender Greensill and Archegos, a family office run by former Tiger Asia manager Bill Hwang.
(Bloomberg) -- Volatility gripped financial markets as a rout in some of the largest tech companies dragged down stocks. The dollar rose.Megacaps such Apple Inc., Tesla Inc. and Amazon.com Inc. sent the Nasdaq 100 slumping, while the S&P 500 pared losses amid gains in commodity, financial and industrial shares. Treasury Secretary Janet Yellen rattled markets with a comment economists regarded as self evident -- that rates will likely rise as government spending ramps up and the economy responds with faster growth. Later in the day, Yellen said she wasn’t predicting or recommending rate hikes.The debate on whether government spending could boost inflation comes at a time when stock valuations are hovering near the highest levels in two decades. Hedge funds have been bailing from equities at a pace not seen since the financial crisis, while shares have struggled to gain traction despite blowout corporate earnings.“We’ve had this spectacular run-up, and I think we’ve seen momentum just run out of steam,” said Fiona Cincotta, senior financial markets analyst at City Index. “Despite earnings being encouraging, they haven’t managed to push those indices higher. Moving out of growth and into cyclicals is the place we’re going to have more movement.”Earlier Tuesday, a sharp drop in equity futures left traders scrambling for an explanation. Some of them speculated on military tensions between China and Taiwan, Singapore’s tougher coronavirus restrictions and Ferrari NV’s decision to postpone financial targets.Investors also monitored the latest economic readings, with the U.S. trade deficit widening to a new record in March. Meanwhile, a senior White House economic aide demurred on the question of whether President Joe Biden will nominate Fed Chair Jerome Powell for a second four-year term, saying the decision on selecting the next central bank chief will come after a thorough “process.”Here are some key events to watch this week:U.S. ADP employment change is due WednesdayChicago Fed President Charles Evans gives a virtual speech at an event hosted by Bard College on Wednesday. Cleveland Fed President Loretta Mester gives a virtual speech to the Boston Economic ClubBank of England rate decision ThursdayThe April U.S. employment report is released on FridayThese are some of the main moves in markets:StocksThe S&P 500 fell 0.7% as of 4 p.m. New York timeThe Nasdaq 100 fell 1.85%The Dow Jones Industrial Average was little changedThe MSCI World index fell 0.8%CurrenciesThe Bloomberg Dollar Spot Index rose 0.3%The euro fell 0.4% to $1.2017The British pound fell 0.2% to $1.3887The Japanese yen fell 0.2% to 109.29 per dollarBondsThe yield on 10-year Treasuries declined one basis point to 1.58%Germany’s 10-year yield declined three basis points to -0.24%Britain’s 10-year yield declined five basis points to 0.79%CommoditiesWest Texas Intermediate crude rose 2.3% to $66 a barrelGold futures fell 0.7% to $1,779 an ounceFor 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.
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.
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.
PARIS (Reuters) -Societe Generale will press ahead with an overhaul of its investment bank after its equities division posted its best performance in six years in the first quarter, the French bank said on Thursday. Revenue from share trading surged to 851 million euros from just 9 million a year ago, helping SocGen post a better than expected net profit of 814 million euros ($977 million) after a loss of 326 million euros in the first quarter of 2020. Shares in France's third-biggest bank leapt as much as 6.6% to their highest since March 2020 and were up 3% at 0926 GMT, outperforming a 0.46% drop in the Stoxx Europe 600 Banks Index.
A year into the pandemic, some homeowners say loan servicers aren't giving them clear information about mortgage forbearance.
The 30-year fixed rate hasn’t been this low since February.
It appears that Shark Tank investor Kevin O’Leary no longer thinks bitcoin is “garbage.” The chairman of O’Shares ETF told Yahoo Finance Live that he’s allocated 3% of his portfolio to the world’s largest cryptocurrency after his native Canada, and a handful of other countries, eased restrictions on institutional buying of the asset.
A see-through trust is a legal arrangement that enables a person to pass retirement assets from an individual retirement account to beneficiaries after his or her death. A properly-constructed trust protects assets from creditors and can parcel out money to … Continue reading → The post What Is a See-Through Trust? appeared first on SmartAsset Blog.
The cryptocurrency that no one was meant to take seriously spiked to just under 70¢ before losing a little ground.