Mayo Clinic genetic cardiologist Dr. Mike Ackerman provides insight into possible coronavirus treatments.
Mayo Clinic genetic cardiologist Dr. Mike Ackerman provides insight into possible coronavirus treatments.
(Bloomberg) -- Hertz Global Holdings Inc. said it’s seeing a boost in travel demand despite reporting a 33% drop in revenue in the three months through March 31.The company reiterated that it’s on track to emerge from bankruptcy in June. It’s weighing plans from two sets of suiters to take the company out of Chapter 11. As the nation emerges from Covid-19 restrictions, travel demand has come back and more consumers are seeking car rentals.Hertz is in talks with potential bankruptcy plan sponsors and said in a regulatory filing Friday that a group including Centerbridge Partners, Warburg Pincus and Dundon Capital Partners intends to counter a proposal from Knighthead Capital Management and Certares Management that the car renter had deemed superior. An auction to determine the highest bidder between the dueling groups is scheduled for May 10, with a hearing to approve the final result set for May 14.“This quarter we realized the first effects of the leisure travel rebound and capitalized on strong demand-driven pricing in destination markets that exceeded 2019 levels,” Paul Stone, Hertz’s president and chief executive officer, said in a statement. “We’re continuing to see improved demand and are optimistic about a sustained recovery.”Revenue SlideHertz reported first-quarter revenue of $1.3 billion, down 32% from a year ago. Net income was $190 million and adjusted earnings before interest, taxes, depreciation, and amortization were $2 million. Liquidity at the end of the quarter was $1.1 billion. On an adjusted basis, Hertz lost 33 cents a share, or $52 million.In the first quarter, the company also closed the sale of its Donlen commercial leasing business for $891 million in cash.Hertz said its vehicle utilization rate was 75%, which is close to normal levels and up from 67% a year ago when the Covid-19 pandemic starting crimping travel. The company’s revenue per day rose 11% to almost $48, as a shortage of cars and boosted travel demand helped the rental firm get better rates. Depreciation per vehicle per month decreased 21% to $234, driven by strength in used-car values.Both investor groups have submitted multiple rounds of proposals to buy the company. The latest plans from each side offer lenders and bondholders full repayment and a partial recovery for shareholders, a relative rarity in bankruptcy proceedings. The Knighthead and Certares plan assigned Hertz an enterprise value of around $6.2 billion and offered shareholders a mix of cash and warrants worth around $2.25 a share, Bloomberg reported.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.
Barry Silbert, a power player in the digital-asset sector, said he's betting against dogecoin and is urging investors in one of the hottest trades in 2021 to convert their doge holdings into bitcoin.
(Bloomberg) -- Global central banks are starting to wind down the trillion-dollar money printing machines set in motion to rescue their economies in 2020. Getting ahead of them is becoming this year’s biggest currency trade.Early changes to bond-buying programs from Canada and Britain have been rewarding for foreign-exchange players. Meanwhile, Norway, which hasn’t needed to deploy more unconventional policy such as asset purchases, is already talking about raising rates. The trio’s currencies are leading the Group of 10 this year, posting gains of more than 4%.Yet that acceleration may already be losing momentum now that those policy makers have shown their hands. That has left traders on a mission to identify economies that are heating up too fast for comfort -- and those where tightening is a far-flung prospect -- in order to pick the next winners and losers.One strategy is to follow the commodity boom and bet on exporters such as Australia and New Zealand, where growth is roaring back. Another playbook involves buying the currency of a country likely to hike rates, while selling that of a country committed to ultra-low rates.“Some central banks outside the Fed like the Reserve Bank of Australia and the Reserve Bank of New Zealand may find themselves in a position similar to the Bank of Canada, where they could be tightening much sooner than what they’ve initially indicated,” said Mazen Issa, senior FX strategist at TD Securities. Canada’s move “may give a little bit more confidence to the policy community to begin making little tweaks to their own policy outlooks as well,” he added.Balancing ActLife in developed nations is returning to normal thanks to vaccines that have arrested the spread of coronavirus. But for central bankers, extricating themselves from the programs that staved off economic collapse last year is a delicate balancing act.The Federal Reserve, often called the central bank of the world, is taking a softly-softly approach toward policy normalization designed to avoid market chaos reminiscent of 2013’s taper tantrum. Ditto the European Central Bank, whose chief Christine Lagarde recently said talk of tapering is “premature.” But waiting as growth roars back runs the risk of falling so far out of step with economic reality as to provoke a policy overshoot.“The challenge for the Fed is that it should not wait too long because they may have to move faster, and that may shock the market,” said Athanasios Vamvakidis, head of G-10 FX strategy at Bank of America Corp. “It all depends on data.”The latest data may justify the Fed’s steady hand: April’s disappointing jobs report Friday recast inflation and rate-hike expectations.Tapering BeckonsWhether or not central bank chiefs are ready to talk about it now, tapering is drawing closer. Asset purchases from the Fed, the ECB, the Bank of Japan and BOE will likely slide to around $3.4 trillion this year from almost $9 trillion in 2020, before falling to just $400 billion in 2022, according to Bank of America.Traders are going all-in at signs of forthcoming policy tweaks: the euro gained Friday after ECB Governing Council member Martins Kazaks said the institution could decide to scale back its emergency bond-buying program as early as next month.“Growth is clearly accelerating in the G-10 countries, with vaccination campaigns picking up momentum. said Philippe Jauer, global head of FX at Amundi Asset Management. “This means policy could accelerate more than anticipated by the market.”North Meets SouthWhile those debates roll on, FX investors may get more joy betting that central banks Down Under take the lead of their northern Commonwealth peer.At Robeco Institutional Asset Management, fund manager Bob Stoutjesdijk cashed out of the Canadian dollar after the BOC’s taper last month. He’s got Australia and New Zealand on his radar, though he’s wary of lingering border controls that will sap tourism revenues and mixed signals from their central banks.Speculative investors, including hedge funds, held bullish bets on the New Zealand dollar for a sixth consecutive week through May 4, according to the latest data from the Commodity Futures Trading Commission. They increased net longs on the Aussie dollar for the first time in three weeks. Meanwhile, net shorts on the yen held near the most in two years. The divide between currencies backed by central banks taking steps toward pulling back support and those that are further off is also palpable in the options market.Sentiment on the Australian and New Zealand dollars versus their Japanese peer has turned less pessimistic this year, as seen in risk reversals. The premium on options betting on declines in the Aussie and kiwi against the yen has narrowed across the curve from end-2020 levels, for tenors starting at one-week all the way up to a year.There’s room for upside in the Canadian dollar versus the yen, and in the Norwegian krone against the Swiss franc and euro, given the contrast in their policy paths, according to Audrey Childe-Freeman, Bloomberg Intelligence chief G-10 FX strategist.The Aussie and kiwi dollars are likely to outperform based on higher yields alone, she said, even if their central banks have resisted adjusting to more hawkish policy language so far.While the RBA has been adamant that it will keep pumping monetary support into the economy until it is fully repaired, its most recent outlook showed upbeat trajectories for growth and jobs, showing it’s on track to drive faster pay gains and inflation back toward its target. Rising inflationary pressures and house prices have also been highlighted by the RBNZ.“No central banks want to shock the market, but they will have to watch data. If the data is strong, we would expect the Fed to normalize the policy. We expect the same for RBA and RBNZ,” said Vamvakidis at Bank of America. “They will be the ones to watch because of their potential to surprise to the upside.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 takes every cent I earn to get by and pay debt service. If I were to retire today, I would draw $1,200 a month in Social Security, or $1,400 a month if drawing against my ex-husband’s account (we were married 23 years). See: Confused about Social Security — including spousal benefits, claiming strategies and how death and divorce affect your monthly income?
Families can get up to $50 off their bill to stay connected during the pandemic.
U.S. stock funds now are riding a river of new cash from investors — and that is not a bullish sign. In fact, fund flows are a contrarian indicator: the U.S. stock market in the past has performed better when there is a net outflow of cash. The evidence is summarized in the chart below, which plots net inflows of cash to U.S. stock funds (both open-end and exchange-traded funds) by year over the past decade.
(Bloomberg) -- Copper soared this week to an all-time high, continuing a sizzling rally that’s seen prices double in the past year.The previous copper record was set in 2011, around the peak of the commodities supercycle sparked by China’s rise to economic heavyweight status — fueled by massive amounts of raw materials. This time, investors are betting that copper’s vital role in the world’s shift to green energy will mean surging demand and even higher prices. Copper futures rose as high as $10,440 a ton in London on Friday. What’s the big deal about copper?Through human history, copper has played a critical role in many of civilization’s greatest advances: from early monetary systems to municipal plumbing, from the rise of trains, planes and cars to the devices and networks that underpin the information age.The reddish brown metal is mostly unrivaled as an electrical and thermal conductor, while also being durable and easy to work with. Today, a vast array of uses in all corners of heavy industry, construction and manufacturing mean it’s a famously reliable indicator for trends in the global economy.The copper market was one of the first to react as the Covid-19 coronavirus emerged in Wuhan, with prices slumping by more than a quarter between January and March last year. Then as China’s unprecedented steps to control the domestic spread of the virus started to yield results, copper rapidly rebounded -- and it hasn’t looked back since.But it’s not just China driving the rally. While the country accounts for half of the world’s copper consumption and has played an integral part in copper’s surge, demand there has actually softened this year. Yet prices continue to drive higher.Why is copper surging now?It’s partly due to evidence of recoveries in other major industrial economies, with manufacturing output surging in places like the U.S., Germany and Japan. But investors have also been piling into copper on a bet that global efforts to cut carbon emissions are going to mean the world needs a lot more of the metal, putting a strain on supply. New mine production may be slow to arrive, as mines are hard to find and expensive to develop.Electric vehicles contain about four times as much copper as a conventional car, and vast amounts of copper wiring will be needed in roadside chargers to keep them running. Bringing electricity from offshore wind farms to national power grids is also a copper-intensive exercise.Governments around the world have announced ambitious infrastructure investment plans, much of which involves construction, green energy, or both.Are things that use copper getting more expensive?Increasingly, yes. Major manufacturers have been hiking prices for air-conditioning units and fridges over the past few months, and they’re warning there may be more to come.Still, copper is often used in small quantities in complex consumer goods, and so the doubling in prices over the past year won’t be nearly as painful for consumers as an equivalent jump in food or fuel prices would be. Similarly, governments rolling out big spending programs might not be too worried about a rise in copper alone.But with other raw materials rising too, there are growing signs that they’ll get less bang for their buck as the cost of big-ticket items like wind turbines rise.What does it mean for the economy?There are mounting concerns that the broad rally in everything from lumber to steel will force central bankers to step in to stop inflation in raw-materials markets spiralling out of control.In turn, the stellar economic rebound that’s driving the commodities rally may start to stall as businesses are hit by higher interest rates, compressed margins, and waning demand from consumers. The key question for policymakers at the Federal Reserve — and traders on Wall Street — is whether the broad spike in commodities prices will be temporary.Could the rally fizzle out?In the case of copper, there are some signs that spot demand is starting to cool, particularly in China, and some analysts and traders say the record prices aren’t justified by today’s fundamentals.The view among policymakers is that the rise in commodities prices will prove short-lived, as consumers will focus their spending on services and experiences as economies open up, easing the strain on demand for commodities-intensive items such as second homes, electronics and appliances seen during lockdown.For copper though, it’s not just about strong demand today. In fact, a lot of expected spending on renewables and electric-vehicle infrastructure is yet to really materialize. When it does, it could transform the outlook for copper usage in countries such as Germany and the U.S.How high could copper go?Trafigura Group, the world’s top copper trader, and Goldman Sachs Group Inc. both say prices could hit $15,000 a ton in the coming years, on the back of a global surge in demand due to the shift to green energy. Bank of America says $20,000 could even be possible if drastic issues arise on the supply side.The copper market itself may also be facing a big shift. Trafigura predicts that demand growth in China will be eclipsed by rising consumption in the rest of the world over the coming decade, in a dramatic reversal of the recent trend. That could help underpin a new “supercycle” in the copper market, driving prices higher for years on the back of a step-change in global demand.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.
Ethereum has outperformed major digital currency rivals this year, bolstered by the surge in decentralized finance (DeFi) and the anticipation of a technical adjustment this summer, but it faces hurdles that could stall its rise. With a jump of more than 350% in its price this year, ethereum has the second-largest market capitalization after bitcoin, but not as much cache and perhaps more operational challenges that could prevent it from eclipsing its major rival. In the crypto world, the terms "ethereum" and "ether" have become synonymous.
Everyone has a different idea of what wealth is. You could ask 20-somethings what they think wealth is, and they might describe extravagant houses or a private jet. Someone older might mention lucrative investments. Everyone seems to have a different … Continue reading → The post What Is the Financial Definition of Wealth? appeared first on SmartAsset Blog.
The 39-year-old landlord, who was born and raised in Toronto, Canada, reached $1 million Canadian dollars, or approximately US$791,000, in 2019, though he felt he had reached financial independence even sooner. Chad found the FIRE Movement, made it to $1 million CAD before 40, and became a firefighter and sheepherder along the way. The former network administrator and his partner, Catherine, who is a Ph.D. student and research coordinator, save between 50% and 80% of their income every year and live off of $27,000 in annual expenses.
How you can take your health insurance into your own hands.
The Dow Jones lagged the Nasdaq indexes in afternoon trading Friday, but Nike and Boeing outperformed. Retailer Revolve Group surged on earnings.
As the US economy continues to open up, the April jobs report from the US Bureau of Labor Statistics shows the boom in delivery jobs has taken a tumble. The industry covers workers who deliver and pick up packaged good, employed by companies like Amazon, Fedex, and DHL. When the Covid-19 pandemic halted the world and people stayed home, the demand for online retailers, online grocers, delivery firms shifted into high-gear.
Evidence mounts that some employers can't find workers because they're jerks.
Tech investor Cathie Wood tells CNBC she isn't unsettled by the popular ARK Innovation ETF's rough start to May.
A mass of attention has been brought to semiconductor companies as supply-chain constraints have reduced the availability of everything from cars to laptops to gaming consoles. The largest chipmakers and foundries — Intel (INTC) Nvidia (NVDA) Advanced Micro Devices (AMD) Taiwan Semiconductor Manufacturing (TSM) Globalfoundries and Qualcomm (QCOM) — have gotten most of the headlines. As the challenges are sorted out, it has become clear that semiconductors are a hot commodity, and for investors, that could be considered an opportunity.
The residential construction sector is pumping the brakes, judging by April's jobs numbers, despite the strong demand for homes.
The cryptocurrency lacks the mainstream appeal of Bitcoin, but it still has a substantial online community behind it. And that community may be the basis of new financial markets.
Barron’s spoke with an economist, a bond manager, and a stock manager about why stocks are higher, and why a rally in fixed income faded.
Call volume to the tax agency sometimes tops 1,500 calls per second.