Yahoo Finance’s Adam Shapiro and Rick Newman join Direxion Managing Director Sylvia Jablonski and Associated Builders & Contractors Vice President of Regulatory, Labor & State Affairs Ben Brubeck to discuss.
Yahoo Finance’s Adam Shapiro and Rick Newman join Direxion Managing Director Sylvia Jablonski and Associated Builders & Contractors Vice President of Regulatory, Labor & State Affairs Ben Brubeck to discuss.
(Bloomberg) -- Bitcoin declined for the seventh time in eight days, extending losses after President Joe Biden was said to propose almost doubling the capital-gains tax for the wealthy.The slide pushed Bitcoin down as much as 5.8% to about $48,596 as it continued to lose momentum. JPMorgan Chase & Co. and Tallbacken Capital Advisors LLC had recently warned there was potential for further downside after the largest cryptocurrency fell back from its record high of $64,870 on April 14 and took out key technical levels.“Bitcoin has slipped below the 50-day moving average support that it held sacrosanct through this rally,” said Pankaj Balani, CEO of Delta Exchange. “It looks like there is more downside here.”Read more: Wall Street Starts to See Weakness Emerge in Bitcoin ChartsTax concerns may be weighing, too. U.S. investors in the digital asset, which has advanced more than 70% this year despite its recent pullback, already face a capital gains tax if they sell the cryptocurrency after holding it for more than a year. But the coin’s been one of the best-performing assets in recent years -- anyone who bought a year ago is sitting on a nearly 575% gain. For investors who bought in April 2019, it’s roughly 800%.“One of the biggest things you have to worry about is that the things with the biggest gains are going to be most susceptible to selling,” said Matt Maley, chief market strategist for Miller Tabak + Co. “It doesn’t mean people will dump wholesale, dump 100% of their positions, but you have some people who have huge money in this and, therefore, a big jump in the capital gains tax, they’ll be leaving a lot of money on the table.”The IRS has stepped up enforcement of tax collection on crypto sales. The agency -- which began asking crypto users to disclose transactions on their 2019 individual tax returns -- asks taxpayers whether they “received, sold, sent, exchanged or otherwise acquired any financial interest in any digital currency.”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) -- Parduman Gupta, father of embattled metals tycoon Sanjeev Gupta, has moved out of the U.K., just as the pair’s GFG Alliance teeters on the brink following the collapse of its largest lender Greensill Capital.The senior Gupta has changed his country of usual residence from Britain to India, according to several filings made over the past few weeks at Companies House, the business registry. He owns Simec Group, the branch of the business empire which deals in renewable energy, shipping and mining, and was founded by the magnate as an export-and-import house in India.It’s not clear where Parduman Gupta is currently, but a spokesman for Companies House said that a company director must list their country of residence, and that this “should correspond with their usual residential address.” A spokesman for GFG Alliance, a loose grouping of companies owned by the father and son, declined to comment.Sanjeev Gupta has also been absent for several months from the U.K., where GFG owns numerous steel and aluminum plants and employs around 5,000 people. He said on recent podcasts for GFG employees that he left the U.K. for Dubai before Christmas, and hasn’t returned since.“Dubai is the perfect location for me and my family to operate out of for now,” Gupta said on a April 16 podcast, citing the city’s time zone.But he said that he was keen to be on the move again. “As soon as Covid travel restrictions in the U.K. and Australia and Europe are lifted I will definitely be trying to get in front of the customers and employees around the world.”‘Very Opaque’GFG last month asked the U.K. government for a 170 million-pound ($235 million) bailout, but the request was rebuffed. Business Secretary Kwasi Kwarteng told a parliamentary committee last week that it would be “very irresponsible” to give taxpayers’ money to the group, describing it as “very, very opaque” and having “liabilities that nobody seems to have got to the bottom of.”GFG has borrowed about $5 billion from Greensill, and is desperately seeking fresh financing, which Sanjeev Gupta is coordinating from Dubai.Some progress has been made. Three lenders are in talks to refinance one of his Australian steel mills, while a private equity firm has positioned itself to buy two of the group’s aluminum plants.Still, other parts of the business are facing difficulties. Three French units were put into voluntary administration last week, while other parts of GFG in France and Belgium have sought protection from their creditors.Gupta said on the April 16 podcast that some of his U.K. assets were “struggling at the moment with the lack of funding.” He called on GFG employees to be “brave,” but warned of “some difficult decisions” to come.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.
President Joe Biden will roll out a plan to raise taxes on the wealthiest Americans, including the largest-ever increase in levies on investment gains, to fund about $1 trillion in childcare, universal pre-kindergarten education and paid leave for workers, sources familiar with the proposal said. The plan is part of the White House's push for a sweeping overhaul of the U.S. tax system to make rich people and big companies pay more and help foot the bill for Biden's ambitious economic agenda. The proposal calls for increasing the top marginal income tax rate to 39.6% from 37%, the sources said this week.
It claims Liberty owes debts from the acquisition of Tata's speciality steels business, a report says.
(Bloomberg) -- Malaysia became the first country to sell a dollar Sukuk linked to sustainable activities, adding to a growing number of issuers turning to debt financing for environmental and social projects.The Southeast Asian country priced $800 million of 10-year sustainability Islamic finance notes on Wednesday, Malaysia’s finance ministry said. The deal also included a $500 million 30-year tranche. The offering was oversubscribed by 6.4 times.Sustainable debt issuance rose 29% last year to a record $732 billion, according to figures from BloombergNEF. Indonesia sold green debt that complies with religious principles in 2018, making it the first country in the world to issue such securities, according to a United Nations Development Programme report.“Demand for ESG or sustainability-linked bonds continues to gain traction while there is still a limited supply” of such issuance from Southeast Asia, said Winson Phoon, head of fixed-income research at Maybank Kim Eng Securities in Singapore. “Adding the sustainability label helps widen further the investor base.”Spreads on both parts of the deal tightened during marketing, and the sustainability Sukuk sold at 50 basis points over Treasuries compared with initial price guidance of around 90 basis points. The deal resulted in the lowest-ever yield and spread for a U.S.-dollar Sukuk issuance by Malaysia, the finance ministry said.Malaysia is an infrequent issuer in overseas bond markets, last selling dollar debt in 2016. Its existing U.S. currency notes have a longer duration than Asian credit more broadly, which made them vulnerable to a selloff last quarter as yields spiked. They’ve since recouped some losses as interest rates retreated.Like governments around the globe, Malaysia has been tackling the impact of the pandemic, and Prime Minister Muhyiddin Yassin unveiled a 20 billion ringgit ($4.9 billion) stimulus package last month that included discounts on power bills, tax breaks and cash aid to the poor.Malaysia’s gross domestic product may expand 6% to 7.5% in 2021, its central bank said last month. That’s potentially slower than its earlier projection of 6.5%-7.5% growth, but still ahead of many of its neighbors.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) -- One of Turkey’s largest cryptocurrency exchanges said it lacked the financial strength to continue operations, leaving hundreds of thousands of investors fearing their savings have evaporated as authorities sought to locate the company’s 27-year-old founder, who fled the country.Confusion reigned about how many users of the Thodex exchange were affected and how much money was at stake. In a statement from an unknown location, Thodex Chief Executive Officer Faruk Fatih Ozer promised to repay investors and to return to Turkey to face justice after he did. The government moved to block the company’s accounts and police raided its head office in Istanbul.Losses could be as high as $2 billion, according to Haberturk newspaper, and a lawyer for the victims said the money invested by about 390,000 active users had become “irretrievable.” Both figures have been disputed by Ozer. About 30,000 users have been impacted, he said in a statement on the company’s website on Thursday.While authorities and customers tried to work out the details of what happened, a senior official in President Recep Tayyip Erdogan’s office called for rapid regulation of the crypto market. Globally, the surge in the prices of digital tokens has been accompanied by convictions and regulatory measures after various scams tied to trading platforms.The Turkish government should take action “as soon as possible,” Cemil Ertem, a senior economic adviser to Erdogan, told Bloomberg. “Pyramid schemes are being established. Turkey will undoubtedly carry out a regulation that’s in line with its economy but also by following global developments.”Alternative InvestmentsThodex was part of the cryptocurrency boom that has drawn in legions of Turks seeking to protect their savings from rampant inflation and an unstable currency. Inflation hit 16.2% in March, more than three times the central bank’s target of 5%. The Turkish lira has weakened 10% against the dollar this year, its ninth consecutive year of losses.The government spent a massive $165 billion in foreign-exchange reserves over the past two years, Erdogan revealed on Wednesday, part of a futile effort to prop up the national currency. Concern about the country’s dwindling foreign-exchange reserves, which are negative when money borrowed by the government from private banks via swap agreements are factored in, has fueled concern about both lira and dollar deposits -- and pushed savers into alternative investment vehicles.Last Friday, the volume of trade in Turkish crypto markets tripled to over $1.2 billion from a week earlier, according to data published by coingecko.com, which tracks data on price, volume and market value on crypto markets. That compares with an average daily trading volume in the Turkish stock market’s benchmark index of about $3.1 billion.“One can establish a crypto exchange with just 50,000 liras (about $6,000) in capital,” Oguz Evren Kilic, a lawyer representing Thodex users, said by phone. “There’s a huge regulatory gap in this field.”Ozer didn’t respond to multiple calls to his mobile phone. The company’s call center also didn’t pick up calls. Bedirhan Oguz Basibuyuk, Thodex’s lawyer, told Bloomberg he doesn’t know where Ozer is but that he’s not in Turkey. Demiroren News Agency reported that he fled to Albania on Tuesday, publishing what it said was a photo of him at Istanbul’s airport.Dogecoin CampaignLast month, Thodex initiated a campaign to boost membership by offering millions of free Dogecoins to new registrants. Its website says 4 million of the coins were distributed, though many people have taken to social media to complain they never received them.“I was born as one of the three siblings of a civil servant,” Ozer said in his statement, adding that he’s a high-school dropout. As the company ran into financial trouble, he said he thought about either committing suicide or giving himself up to authorities, but both of those options meant clients’ assets would never be retrieved.“So I decided to stay alive and fight, work and repay my debts to you,” he said. “The day I repay all my debt, I will return to my country and give myself in to justice.”(Updates with new lede, government agency action, details throughout.)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.
Stocks rose for the first time in three days earlier on Wednesday.
(Bloomberg) -- Huobi Technology Holdings Ltd. has launched four cryptocurrency-related funds targeting $100 million in total assets by September, the latest attempt to ride a stunning rally in digital assets.Huobi Tech is rolling out four funds including ones that will virtually track Bitcoin and Ether prices, allowing investors to bet on the coins without actually holding any currency. It’s the latest so-called crypto tracker after similar funds have launched around the world. The firm already has secured $50 million in commitments across the four funds.The offerings also include an active fund investing in a basket of virtual assets, and a private equity fund dedicated to investment in the crypto mining sector. In March, Huobi Tech obtained a license from the Securities and Futures Commission of Hong Kong to manage and distribute funds invested solely in crypto -- the first such approval after Arrano Capital.“Virtual assets have become established as a strong category in alternative investment, and more players will compete in this arena,” Huobi Tech finance chief Zhang Li said during a Zoom interview from Beijing. “For professional investors who still have concerns about things like security and tax filing, they will opt to buy our funds rather than holding coins themselves.”The new Hong Kong license and funds highlight 38-year-old Huobi founder Leon Li’s endeavor to ensure his crypto empire, whose main exchange unit has drawn scrutiny over the years from Beijing, complies with regulations as it expands into adjacent arenas.The move also come as mainstream financial companies embrace crypto after Bitcoin’s value took off in October. However, some still warn of a bubble, and volatility and regulatory risk around the globe remain concerns for the asset class.Longer term, Zhang said she expects the firm to provide a full suite of crypto-related services including custody, without specifying details.Read more: The Crypto Mogul Who’s Got the Ear of China’s Central BankFor 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.
French luxury house Chanel on Wednesday lost its trademark fight with Huawei Technologies after a top European court said their logos bear no similarity to each other. The dispute dated to 2017 when Huawei sought approval from the EU Intellectual Property Office (EUIPO), a trademark body, to register its computer hardware trademark which has two vertical interlocking semi-circles. Privately owned Chanel objected, saying that the design was similar to its registered French logo of two horizontal interlocking semi-circles used for its perfumes, cosmetics, costume jewellery, leather goods and clothing.
As BTC's price continues lower, one possible benefit is a decrease in the crypto's volatility.
SHANGHAI (Reuters) -A key gauge of Asian shares rose on Friday, supported by gains in China and a decision by the European Central Bank to maintain stimulus, while investors largely shrugged off the impact of a possible U.S. capital gains tax hike. The ECB's decision to leave policy on hold came despite its prediction of a strong rebound in the euro zone economy from mid-year as COVID-19 infections are brought under control. "There were a couple of subtle acknowledgements today that an upgrade to forecasts is likely coming at the June 10 meeting," said Ray Attrill, head of FX strategy at National Australia Bank.
(Bloomberg) -- China has already started buying U.S. corn from the harvest that farmers will start gathering in the fall, in the latest sign of tight global supplies.The Asian nation, the world’s largest commodity importer, bought American corn for shipment in the fourth quarter, according to people familiar with the matter who asked not to be identified because the deals are private. Crops for the fall harvest are currently just being planted and traders estimate sales to China were at least 1 million metric tons.Chicago corn futures rose by the most allowed by the exchange. The contract for July delivery surged as much as 25 cents, or 4.1%, to reach $6.315 a bushel, the highest for a most-active contract since 2013.China is rebuilding its hog herd faster than expected after a deadly pig disease shrunk animal numbers in the past few years. The rebound is fueling demand for corn to feed the animals. As the nation restores pork output with more modern agriculture practices, backyard farmers are being replaced by professional operations known as hog hotels, which usually feed more grains to pigs instead of table scraps. There’s also speculation China is stockpiling crops.U.S. exporters have already sold more than 20 million tons of corn to China for delivery this season, an all-time high, according to data from the U.S. Department of Agriculture. The agency hasn’t yet published data for any deals for next season, but it’s possible that some may have already been concluded and haven’t been reported.The surge in demand for U.S. supplies comes as dry conditions threaten crops in Brazil. The two nations are No. 1 and 2 for global corn shipments. While China doesn’t often buy large amounts from Brazil, the situation is still tightening the global supply picture. Importers typically turn to South America for supply during the next few months before the U.S. harvest starts in the fall.China is forecast to import 28 million tons from all countries in the 2020-2021 season, the USDA’s Being office said in a report this week. While purchases are expected to drop to 15 million tons the following year, it’s still double a quota set by the World Trade Organization that allows firms in China to import the grain at a lower duty rate.(Updates with rise in corn prices in third 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.
The investing icon spells out what you should — and shouldn't — spend that money on
(Bloomberg) -- The United Arab Emirates went on its biggest Treasury-buying spree on record in February, purchasing more of the safe-haven securities than China in one of the worst months for U.S. debt markets in years.The Gulf nation, OPEC’s third-biggest crude producer, raised its stockpile by about $17 billion to $50.6 billion, making it the largest buyer after the U.K. that month, according to U.S. Treasury Department data. A spokesperson for the UAE central bank declined to make any immediate comment Wednesday.Though the UAE, whose capital Abu Dhabi accounts for almost 6% of the world’s oil reserves, may have built up enough of a buffer to commit more if its dollar earnings to the $21 trillion Treasuries market, it came as prices tumbled amid growing expectations of a global economic rebound. U.S. debt dropped 1.8% in February, according to a Bloomberg Barclays Index, with the yield on the benchmark 10-year note climbing about 34 basis points, its sharpest increase since November 2016.“Other than the fact that rates were higher and that is the deepest and most liquid market, I wouldn’t know any other reason” why the government would boost purchases, said Abdul Kadir Hussain, the Dubai-based head of fixed-income asset management at Arqaam Capital.The move took UAE holdings to levels last seen in 2019 before the global pandemic and the crash in oil prices. China bought $9 billion of Treasuries in February to bring its total to $1.1 trillion, the highest since mid-2019. The country’s holdings are second only to Japan, which holds almost $1.3 trillion.Although a recovery in oil has been a boon across the energy-rich Middle East, the windfall may be even bigger for the UAE since it needs one of the lowest crude prices to balance its budget. Other top oil exporters in the Persian Gulf, including Saudi Arabia and Kuwait, cut back their Treasury holdings in February.The official tally may not accurately reflect the true size of a country’s holdings if they are held by banks in foreign countries.Like many of its regional peers, the UAE needs to have sufficient reserves to maintain confidence in its currency peg to the dollar. The central bank’s gross international reserves rose to almost 389 billion dirhams ($105.9 billion) in February, from 381.9 billion dirhams a month earlier.The International Monetary Fund estimates the UAE central bank’s reserves will reach $119 billion this year, in addition to more than $1 trillion in assets managed by the country’s wealth funds.Treasuries extended their declines in March, with the 10-year yield jumping a further 34 basis points to 1.74%. The yield was at 1.58% as of 10:39 a.m. in London Wednesday.(Adds China ranking, Japan’s holdings 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.
Wall Street is skeptical President Joe Biden's expected proposal to hike capital gains taxes could pass the Senate, but investors see risks that tax-motivated selling could still weigh on technology and other sectors that skyrocketed during the pandemic. While any tax increase will likely be lower than Biden's initial proposal given the Democrat's small advantage in the Senate, individual investors who are concerned about rising rates may start to unload shares in order to lock in current rates.
As the class of 2021 plans to graduate next month, many college seniors are worried about landing a job amid the pandemic and an uncertain labor market.
(Bloomberg) -- Even as traders in India fret over how much more pain the nation’s uncontrolled coronavirus surge will inflict on local stocks, some seasoned investors are getting ready to dip their toes back into the market.Concerns that a fresh round of lockdown-like rules triggered by the new virus wave will derail India’s nascent economic recovery have made the benchmark S&P BSE Sensex Asia’s worst performer in April, bringing it on the verge of technical correction this week. Weakening sentiment has also seen foreign funds turn net sellers of local shares after a six-month buying spree.While there’s no denying that the outbreak and its financial and humanitarian implications remain the key focus for market watchers, some long-term investors from Fidelity International and Invesco are already seeking opportunities to add stocks. Progress in India’s vaccination campaign and relatively less-disruptive lockdown measures are seen offering some support to Asia’s third-largest economy and its equity market.“We think that the resurgence of Covid-19 is short-term concern. We do not expect large-scale lockdowns as policymakers take a more localized approach to controlling the resurgence,” said Sukumar Rajah, director of portfolio management at Franklin Templeton Emerging Markets Equity. “We continue to be positive in the Indian equity markets and continue to identify bottom-up opportunities based on our criteria of quality, sustainability and growth,”A few other money managers are echoing similar views as the market’s recent pullback has brought valuations down from the record highs seen earlier in the year. The Sensex is down about 8% from an all-time high in February -- a 10% slide would mark a technical correction.“A couple of months ago, we did have a view that market is pricing in too many positives, since then we have seen earnings upgrades and valuation has corrected,” said Jitendra Gohil, head of India equity research at Credit Suisse Wealth Management. “We are positive on the market and are recommending investors to buy on this weakness. Our house view is that the recovery will be very sharp in the second half.”This new wave of virus cases may delay India’s recovery, but it is unlikely to derail it, according to Fitch Ratings, which affirmed India’s sovereign debt rating at BBB-, the lowest investment grade score.The Sensex is little changed so far in 2021 after having climbed in each of the previous five years. The gauge has surged 85% from its low in March 2020 -- when global equity markets took the biggest hit from the pandemic -- beating a 71% jump in the MSCI Asia Pacific Index of regional equities.“We will be selective and cautious in the short term, but any correction in the market will provide a buying opportunity,” said Amit Goel, a portfolio manager at Fidelity International.” “We continue to be optimistic on the economy and equities over the medium to long term, driven by structural drivers of growth such as strong demographics, under-penetration of consumer goods and services, increasing urbanisation, and growth in the educated workforce.”Taking ProfitSome are more cautious than others as India reported 314,835 new infections on Thursday, the world’s biggest one-day jump in coronavirus cases ever. The country’s health system has been pushed to breaking point, with hospitals reporting shortages of everything from intensive care beds to medical oxygen.Bodies piling up at crematoriums and burial grounds across the nation are sparking concerns that the death toll from a ferocious new Covid-19 wave may be much higher than official records.Aberdeen Standard Investments says that while the surge in infections could trigger stricter lockdowns if the situation worsens, which will have a knock-on impact on the re-opening of the economy and recovery prospects.“We have been nimble in terms of taking some profit off the table or topping up our positions where we see opportunity to do so,” said Kristy Fong, senior investment director for Asian equities at Aberdeen Standard.She also added however that in the longer term, several trends favor India: the presence of many of Asia’s most successful companies that have been tried and tested by prior crises and a growing middle class that is increasingly affluent.For many funds, their optimism is also stemming from expectations of a strong recovery in corporate earnings. Analysts have boosted their 12-month forward profit estimates for Sensex members by around 14% so far this year, about double the rise seen for MSCI Asia Pacific constituents, according to data compiled by Bloomberg.“We continue to see good earnings growth potential from both near and longer-term perspectives that will be supportive of a strong Indian equity market,” said Rajah of Franklin Templeton.READ: BofA Expects Near-Term Nifty Correction, Gains By Year EndShekhar Shekhar Sambhshivan, an investment director at Invesco, takes comfort from the fact that factories have been running at “decent” capacity during the current wave of infections.His team, meanwhile, has turned to defensive stocks to wade through near-term volatility. It reduced exposure to consumer discretionary stocks in the past month as it sees family spending getting affected, but raised holdings of pharmaceutical and information technology shares.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.
Netflix added just 4 million new subscribers this quarter, compared to the 6 million it expected. The streaming service blamed Covid-related production delays leading to a "lighter" than usual content slate.
Stocks rose on Wednesday and looked to rise for the first time in three sessions.
The lowest rates in about two months represent a huge opportunity for borrowers.