Premier Lacrosse co-founder and player Paul Rabil sits down with Yahoo Finance's Dan Roberts to discuss the growth of the league and how a TV deal with NBC has helped.
Premier Lacrosse co-founder and player Paul Rabil sits down with Yahoo Finance's Dan Roberts to discuss the growth of the league and how a TV deal with NBC has helped.
Tesla has the highest short interest of any company, according to S3 Partners.
The direction of the EUR/USD on Tuesday is likely to be determined by trader reaction to 1.2152.
The direction of the AUD/USD on Tuesday is likely to be determined by trader reaction to .7790 and .7769.
(Bloomberg) -- Heineken NV, the world’s second-largest brewer, is in talks about a takeover of South African wine and spirits maker Distell Group Holdings Ltd.Heineken approached Distell about a possible acquisition of most of its business, the South African company said Tuesday, confirming an earlier Bloomberg News report. Distell is considering its options, spokesman Frank Ford said by phone.Distell shares jumped as much as 10%, hitting an intraday record. They were up 5.6% at 9:25 a.m. Tuesday in Johannesburg, giving the company a market capitalization of 33.6 billion rand ($2.4 billion).Shares of Heineken advanced 0.9% in Amsterdam, valuing the brewer at 57 billion euros ($70 billion). Discussions are ongoing, though there’s no certainty they will lead to a transaction, Heineken said Tuesday.Distell produces Klipdrift brandy, Nederburg wine, Amarula cream liqueur, Savanna cider and Bain’s Cape Mountain Whisky. Remgro Ltd., an investment vehicle of South African billionaire Johann Rupert, and Public Investment Corp., Africa’s biggest pension fund, each hold a little more than 30% of Distell, according to data compiled by Bloomberg.The PIC increased its stake in 2017 after a shakeup of the drinks maker’s ownership structure, paying 170 rand a share. That’s 19% higher than Distell’s share price at the close on Monday, before the talks were announced.An acquisition would be Heineken’s most significant transaction since 2018, when it formed a partnership with China Resources Beer Holdings Co., maker of the country’s best-selling beer. A purchase would add to $7.4 billion of deals announced in the global beverage industry this year, about 15% less than at this point in 2020, according to data compiled by Bloomberg.Heineken is emerging from one of the beer sector’s toughest crises. Despite gains in Vietnam and Mexico, the brewer is still facing setbacks in key markets such as Brazil and the U.K. where restrictions on movement and sales have hurt demand. Earlier this year, the company laid off 8,000 employees. The brewer surprised analysts in April with stable first-quarter sales as emerging markets made up for declines in Europe.South Africa was one of Heineken’s best-performing markets, which is surprising given the country’s recurring ban on alcohol.Any deal for Distell would see Heineken Chief Executive Officer Dolf van den Brink, who took charge last June, make progress expanding into categories that have historically been more profitable than brewing, including liquor. It will also accelerate the decades-long strategy of his predecessor Jean-Francois van Boxmeer. During his tenure, van Boxmeer sought to tap growth opportunities in Africa, investing hundreds of millions of euros in promising markets such as Cote d’Ivoire, Nigeria and South Africa.(Adds details from statement in second paragraph, details on Distell shareholders in fifth and sixth paragraphs)More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
(Bloomberg) -- Credit Suisse Group AG is still feeling the effects in bond markets of two major missteps this year.The lender on Monday issued its first euro and sterling notes since the collapse of Greensill Capital and Archegos Capital Management. While the sales left demand for the bank’s debt in no doubt -- orders passed a combined 4.7 billion euros-equivalent ($5.7 billion) -- they also highlighted increases in the bank’s funding costs since March.Credit analysts and investors said that some of the bank’s senior debt is carrying a premium of at least 10 basis points more than it would have without the twin crises. The cost of insuring its bonds against default also remains elevated versus competitor UBS Group AG.“It reflects the weaker credit view, with potential compensation of investors still to come as well as serious questions around risk management,” said Bjorn Norrman, an investment manager at Aegon Asset Management.Credit Suisse declined to comment on its recent sales. The 1.5 billion-euro and 750 million-pound notes on Monday followed a $3.25 billion 11-year note last week.The bank emerged as the biggest loser among global investment banks as family office Archegos imploded in March, wiping out a year of profit. It’s since taken steps to reassure investors and overhaul the business, including a $2 billion capital raise, but has struggled to contain a string of senior banker defections.An investigation by the Swiss financial regulator into the bank’s risk management is “likely to hang over” the bank’s debt in the short term, said Tom Kinmonth, an ABN Amro credit analyst. He pointed to Danske Bank AS, the subject of multiple investigations into money laundering in both the U.S. and Europe.“In these type of cases, for example like at Danske Bank, it takes time for a bank to settle the cases, to rebuild its reputation and to re-convince investors of its new governance structure,” Kinmonth said.Still, he retains a positive view of the bank and thinks its credit spreads “will make up this lost ground over this year.” Some of the bank’s dollar bonds, including a $2 billion 1.305% senior note sold in January, have already retraced some of their widening since late March.More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
(Bloomberg) -- Saudi food delivery firm Jahez has hired HSBC Holdings Plc’s local unit to help manage what could be the first listing by a tech startup in the kingdom.Jahez International Company for Information Technology picked HSBC Saudi Arabia as the sole financial adviser and global coordinator for its potential IPO on Nomu, the Saudi stock exchange’s secondary market, which imposes lighter listing requirements to encourage smaller businesses and startups to raise equity.Founded in 2016, the homegrown firm serves around 2 million customers in the kingdom, and processed about 20 million restaurant orders through its app in 2020, it said on Monday, without disclosing details about its potential valuation. It closed a $36.5 million funding round last year.“We will continue to expand our platform to tap into new growth opportunities offered by rapid, technology-enabled changes in consumer behavior, both in Saudi Arabia and in the wider region,” said Ghassab Al Mandeel, chief executive officer at Jahez.Food delivery companies have been flooded with cash from investors betting the pandemic brought a permanent shift in shopper habits.Getir, DeliverooStartups including Turkish retail delivery app Getir and Berlin-based grocery delivery app Gorillas have rapidly hit billion-dollar valuations. In the U.K., Deliveroo raised 1.5 billion pounds ($2.1 billion) in its listing March 31 but then saw its shares plunge more than 30% in their debut.Jahez is the biggest locally owned player in the kingdom, competing with the likes of Uber Technologies Inc.-owned Careem Now and Delivery Hero SE-backed Hunger Station and Talabat. Jahez has also been expanding in other areas such as last-mile logistics and cloud kitchens.The IPO could add to a string of listings in Saudi Arabia, where companies are taking advantage of investors’ demand for new offerings and as state entities look to raise money to bankroll efforts to diversify the economy.Saudi grocery delivery app Nana also raised $18 million last year, tapping investors including venture capital fund STV and Middle East Venture Partners to expand across the Middle East.Saudi Arabia’s consumer spending is on the mend, with its non-oil economy -- the engine of job creation -- rebounding in the first quarter to pre-pandemic levels following a recession.Jahez said “an improving Saudi economy and the resulting rise in employment and disposable income” will fuel further food and e-commerce spending.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.
USD/CAD settled below 1.2100 and is testing the support at 1.2080.
AT&T's stock is the biggest loser in the S&P 500 on Tuesday. Its valuation depends on how much credit investors give the combined WarnerMedia/Discovery for its future streaming efforts.
‘Will she still be able to use our daughter as a tax deduction? My concern is also with the coming child tax credit this summer.’
(Bloomberg) -- The Federal Reserve may be fretting over the speculative euphoria in crypto, SPACs and meme stocks, but plenty on Wall Street see bubble risks growing across all the systemically important assets.Everything from European bonds and U.S. Treasuries to high-yield credit and tech stocks is trading near the highest valuations in decades -- even as the inflation bogeyman risks breaking out at long last.Market participants from Goldman Sachs Group Inc. to BlackRock Inc. are divided on whether all this constitutes an unsustainable frenzy. To Dan Fuss, the legendary 87-year-old vice chairman at Loomis Sayles & Co. LP, it certainly looks that way thanks to unprecedented liquidity that is now set to tighten on good economic news.Meanwhile, Kathy Jones of Charles Schwab & Co. is telling clients to beware the “nuttiness” in junk debt. And JPMorgan Asset Management’s Bob Michele is calling on Fed officials to discuss tapering asset purchases soon enough, before market bubbles form.Others are more sanguine -- betting that the economic reopening and the re-leveraging cycle will pave the way for more cross-asset gains.Interviews have been edited for clarity.Dan Fuss, vice chairman, Loomis Sayles“We are in ‘bubble’ territory. It is primarily a liquidity bubble, combined with the resulting valuation distortion. Stocks with high P/Es, marginal credit bonds, and pooled vehicles are the most vulnerable. In the 1960s and 1970s, I was lucky enough to spot the small stock valuation bubble and the growth stock bubble. The similarity between then and now was valuation. This one is a liquidity bubble that is unique in my experience.The markets are awash in liquidity caused by the central bank supporting the Treasury’s needs in fighting the Covid war. It is slightly analogous to the formal accord of the late 1930s to mid 1950s between the Fed and the Treasury. It is different in that it caused layers of increased liquidity as various market participants can borrow shorter term money cheaply.When prices decline somewhat, there can be, as there was last March, a magnified drop in the liquidity, causing more sales. This can destabilize the broader market.”Kathy Jones, chief fixed-income strategist, Charles Schwab“We are warning people about not overdoing it. We are saying it’s OK to hold high yield but to try not to hold a concentrated position at the low end and realize this can change pretty fast. This is when diversification really helps you, when things are a little nutty like this, and you don’t know when the nuttiness will end.When I look at CCC’s rallying so hard -- even if the default rates are at the low end of historical average -- your chances of making money over the long run aren’t great. You’d be lucky to break even.”Bob Michele, CIO, JPMorgan Asset Management“My biggest concern is that the Fed waits too long to start the normalization process. Their view is that there is a reopening surge that creates a short term spike in inflation, but it will be transitory. If they’re wrong, that’s when things could become painful.The economy and markets would binge on the prolonged period of cheap money and the risk of bubbles would be far greater. They would be forced to take away the proverbial ‘punch bowl’ by tightening monetary policy more aggressively than the markets expect.I don’t want to be involved in that experiment of owning negative real yields and hoping the Fed can manage an unusually complex normalization process by letting the economy and inflation run hot for a period of time! Consequently, we’re using rallies to sell duration.”“I’m inviting the Fed to start the normalization process now. They should start the conversation on tapering QE no later than the August Jackson Hole meetings. I never thought in my career I would be asking the Fed to begin withdrawing liquidity from the system. But I’m asking because growth and inflationary pressures are just too high.They should start actual tapering no later than January 2022 and then start raising rates no later than mid 2023. There is no reason for them to be running the same level of accommodation as a year ago.”Elga Bartsch, head of macro research, BlackRock Inc.“Markets are not in bubble territory, but they are in unusual terrain given that we are in an economic restart, not a regular business-cycle recovery. For the Fed to move faster than indicated by market pricing, it would essentially need to abandon its new policy framework, which it adopted only last August.We deem this unlikely and see a later lift-off for rates than the market. One pre-condition for the emergence of bubbles is the build-up of financial imbalances. Prior to Covid-19 there was little indication of such imbalances. Since then private sector balance sheets have become stronger, not weaker.”Read more: Fund That Made 929% on Equities Crash Targets Big Short in BondsVineer Bhansali, founder, LongTail Alpha“Bonds are in a massive bubble that we’ve never seen the likes of and inflation, which is the biggest risk to bonds, is coming back. My biggest worry right now is if there’s suddenly a sharp rise in yields, especially in Europe and Japan.I’m massively short the bond market. A big rise in rates can upend everything. If the thing you are counting on to protect you is not protecting you and it’s hurting you, you are going to have to start liquidating -- your Bitcoin, your equities and more. There will be collateral damage.Everybody is counting on the Fed to keep stepping in and buying bonds. At some point the Tsunami may just wash them and they have to say we just can’t buy any more. That to me is the biggest danger.”Peter Oppenheimer, chief global equity strategist, Goldman Sachs“There are pockets of over optimism and excessive valuations in equities. But the key thing is whether this is broad enough in its manifestation to become systemically risky. I would say that there isn’t really a strong evidence of that yet. We may have high multiples, but they are not that high when you consider where interest rates are.We don’t have huge leverage in the private sector. We found that private sector leverage is a very common driver of financial bubbles. Households have very strong savings and they don’t have high levels of leverage. That’s true for banks as well. We expect global growth to accelerate strongly and in a synchronized way. We are overweight stocks and commodities and underweight bonds.”More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
A paper that my colleague Anqi Chen and I wrote last year — “How Much Taxes Will Retirees Owe on Their Retirement Income?” — keeps hitting the “top 10” list on a major listserv for social sciences research. As people approach retirement, they tend to add up their financial resources — Social Security benefits, defined benefit pensions, defined contribution balances, and other assets. The question we look at is just how large the tax burden is for the typical retired household and for households at different income levels.
(Bloomberg) -- A member of Mexico’s central bank board said there’s no room for further interest rate cuts, and the bank may eventually need to start withdrawing stimulus if inflation pressures remain elevated.Asked in an interview with Bloomberg News if she thought further monetary easing is off the table, Deputy central bank Governor Irene Espinosa said, “Yes, I think so, definitely in this context.” Swap rates rose after her comments.The bank’s five-member board last week voted unanimously to hold its key interest rate at a 5-year low of 4%, after inflation accelerated to more than double the 3% target. Espinosa said the end to rate cuts was “good news,” since it means the bank is expecting an economic recovery.Read More: Central Banks in Mexico, Chile, Peru in No Hurry to End Stimulus“We doubtless have to prepare ourselves for a global and local recovery process and that implies a change in the monetary policy vision,” she said.Economists surveyed by Citi expect Mexico to raise interest rates in February next year.Mexico’s two-year swap rate climbed to 5.3%, the highest since April 15, 2020, after Espinosa’s comments.‘Above Target’The bank has at times waited for the U.S. Federal Reserve to act before making major policy changes of its own. Espinosa said that this time it’s possible the board may need to increase rates ahead of its U.S. counterpart, which traders expect to begin to hike by the end of 2022.“Inflation in Mexico has been and is above target, and that puts us in a very different situation for the management of monetary policy from the U.S.,” she said.Traders are starting to price in faster inflation in the U.S., which affects the rest of the world, especially Mexico, Espinosa said.MEXICO REACT: No Talk About Hikes Despite High Inflation, RisksEspinosa spent nearly a decade as treasurer in the Finance Ministry before becoming the first female member of Banxico’s board in 2018. She previously worked at the Inter-American Development Bank in Washington.The bank has cut rates from 8.25% since mid-2019 in its deepest-ever easing cycle. It hasn’t yet reacted to the recent jump in inflation, arguing that much of the acceleration is likely to be temporary.Doubts remain over the solidity of Mexico‘s recovery, Espinosa said. “The growth we are seeing will be slow, long, and uncertain,” she said, arguing that internal demand needs support.That adds additional pressure to public finances, which Espinosa said “can be seen as somehow fragile“ as support for struggling state oil giant Petroleos Mexicanos weighs heavily on government coffers.“This support to Pemex isn’t necessarily resolving Pemex’s structural problems to allow it to be sustainable in the medium term,” Espinosa said. “We haven’t seen a new business plan that lets you see where these new sources of financing are coming from.”(Updates with markets in second, sixth paragraphs, comments on Pemex, public finances from 11th paragraph)More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
Learn the basic structure of a 401(k) and why it may not be enough to sustain you during retirement.
The Biden administration has announced payments will be starting this week.
Amid the slump sweeping across crypto assets Tuesday, investors were turning their attention to a meme asset, SafeMoon, that has garnered increased attention was recently drawing fresh looks after comments made by Barstool Sports founder Dave Portnoy on Twitter.
Raoul Pal tells bitcoin investors that current volatility is to be expected, but big things are around the corner.
(Bloomberg) -- Adani Green Energy Ltd., majority-owned by Indian billionaire Gautam Adani, is in advanced talks to acquire privately-held SB Energy Holdings Ltd., according to people familiar with the matter.A deal could value SB Energy, owned by SoftBank Group Corp. and Bharti Enterprises Ltd., at more than $650 million, said one of the people, who asked not to be identified as the information is private. Adani Green is exploring a buyout of the renewable energy company through an all-stock deal, another person said.Shares in Adani Green climbed as much as 5% on Monday, touching their highest level in more than a month. They have risen nearly 400% in the past year, giving the company a market value of about $24 billion.The advanced talks come after negotiations with Canada Pension Plan Investment Board to buy SB Energy from SoftBank broke down, one of the people said.An announcement could come in coming weeks, the people said. Discussions could still be delayed or fall apart, they added. A representative for SoftBank declined to comment, while representatives for Adani Green and Bharti Enterprises didn’t immediately respond to requests for comment. A spokesperson for CPPIB said they continue to look for opportunities for new investments in India, including in the renewables sector.A deal could help Adani Green to reach its planned generation capacity of 25 gigawatts by 2025. The company’s existing renewable energy portfolio has 15.4 gigawatts from across 11 states in India, according to its website.SB Energy has 4,855 megawatts of renewable capacity in India, including operational capacity of 1,400 megawatts, as of March 2021, according to a report from Care Energy. (Updates with CPPIB negotiations in fourth paragraph and context in sixth and seventh 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.
Experienced hands look to be buying the dip as a key bitcoin price indicator suggests the pullback may be coming to an end.
GameStop and AMC overcame rocky starts to the trading day as comments on social media surged and retail traders mused once again about “squeeze"s on both stocks.
(Bloomberg) -- Bitcoin and other major cryptocurrencies slumped after the People’s Bank of China reiterated that digital tokens can’t be used as a form of payment.The largest token fell as much as 2.3% to $42,309 in early Asian trading Wednesday, continuing a weeklong slide sparked by Elon Musk’s back-and-forth comments on Tesla Inc.’s holdings of the coin. Ether, Dogecoin and last week’s sensation, Internet Computer, also retreated.“This is the latest chapter of China tightening the noose around crypto,” said Antoni Trenchev, managing partner and co-founder of Nexo in London, a crypto lender.Virtual currencies should not and cannot be used in the market because they’re not real currencies, according to a notice posted on the PBOC’s official WeChat account. Financial and payments institutions are not allowed to price products or services with virtual currency, the notice said.“They just want caution,” said Bobby Lee, founder and chief executive officer of crypto storage provider Ballet. “They feel the market is over-hyped, there’s speculative trading, they’re looking out for the best interests of the people.”Beijing since 2017 has abolished initial coin offerings and clamped down on virtual currency trading within its borders, forcing many exchanges overseas. The country was once home to about 90% of trades but the lion’s share of mining and major players have since fled abroad.Read more: Bitcoin Chartists See Rout Worsening With $40,000 in FocusChina has recently taken steps to issue its own digital yuan, seeking to replace cash and maintain control over a payments landscape that has become increasingly dominated by technology companies not regulated like banks.“It’s no surprise to me, as Chinese capital controls can be challenged by cryptocurrency purchases in the country and transfers out of the country,” said Adam Reynolds, CEO for APAC at Saxo Markets. “So avoiding use of them in the country is essential to maintaining capital controls. The only tolerable digital currency to a government with strong capital controls is their own CBDC.”Many chartists and technical analysts are looking at Bitcoin’s 14-day Relative Strength Index (RSI), which entered oversold levels Tuesday. In addition, an acceleration in its selloff could mean the coin approaches its next support around $40,000. A fall to that level would mark the first time since September that Bitcoin would test its average price over the past 200 days. And breaching it could mean it drops to $30,000, where it’s previously found support.For Stephane Ouellette, chief executive and co-founder of FRNT Financial, the moves have more to do with Musk’s recent tweets about Bitcoin.“It’s just a bit of a mess. TSLA’s entrance into the space saw some of the most aggressive BTC buying I’ve personally ever seen -- and it has to unwind,” he said. The EV-maker’s retraction that it will accept Bitcoin as payment “was the catalyst that accelerated the spread consolidation. Then over the weekend, little comments here and there have continued to confuse.”Meanwhile, the latest Bank of America fund manager survey showed that “Long Bitcoin” is the most crowded trade in the world right now. The poll captures 194 fund managers with $592 billion worth of AUM overall.“The fact that the BofA manager survey shows that the ‘long Bitcoin’ trade is the most crowded one on the Street right now isn’t helping either,” said Matt Maley, chief market strategist for Miller Tabak + Co. “When an asset becomes the most crowded trade in the BofA survey, it has frequently signaled a near-term pullback in the past. When you combine this with the news out of China, it’s not a surprise that Bitcoin is seeing some more weakness.”(Updates prices from the second paragraph.)More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.