Yahoo Finance’s Yahoo Finance’s sits down with Mike Iaconelli on how recreational fishing is helping the economy.
Yahoo Finance’s Yahoo Finance’s sits down with Mike Iaconelli on how recreational fishing is helping the economy.
The British pound initially pulled back during the trading session on Wednesday, perhaps in a bit of profit-taking and then again in a short-term reaction to CPI numbers in the United States.
“The crypto market is primarily focused on Ethereum and the catapulting DeFi sector right now,” said one analyst.
A tech stock rout has swept through Wall Street this week. Here's why.
The Dow Jones fell in today's market while the Nasdaq led on the downside. The tech-heavy index continued deeper below its key 50-day moving average.
Elon Musk said on Wednesday that Tesla would stop accepting Bitcoin in car purchases.
(Bloomberg) -- Oil snapped a four-day gain as markets broadly retreated on inflation concerns and a key U.S. fuel pipeline restarted.West Texas Intermediate lost 2.1%, while Brent retreated too. Stock markets weakened as inflation concerns in the U.S. continue to spur risk-off sentiment in broader markets. China Premier Li Keqiang urged the country to deal effectively with the commodity price surge and its impact, according to a state television report, echoing previous comments from officials.In the U.S., the Colonial Pipeline -- a key source of gasoline for the East Coast -- is returning to service after a cyberattack last Friday. That’ll bring relief to motorists after panic-buying emptied out some gas stations and retail prices topped $3 a gallon. In futures markets, profits to produce the fuel slumped after news of the restart.Oil is among a number of commodities that have rallied hard this year as investors wager that the economic recovery from the coronavirus outbreak will spur consumption. The IEA said in its monthly report the supply glut created by the pandemic has cleared. Still, Covid-19 flare-ups in many parts of Asia, particularly India, continue to cloud the outlook for consumption.“Lack of recent conviction in higher prices is obvious and understandable,” said Tamas Varga, an analyst at PVM Oil Associates Ltd. “Concerns are growing that the untamed spread of the coronavirus in India and in South East Asia will dent oil demand.”While the Colonial Pipeline has restarted, fuel shortages are still lingering. The Biden Administration has lifted a mandate on using exclusively U.S. ships in order to help ease a crunch on gasoline supplies.Separately, Yemen’s Shiite Houthi rebels claimed a drone and missile attack against targets in Saudi Arabia including oil facilities, according to a statement on a rebel-run television channel. Such attacks have risen this year, though they rarely cause much damage.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) -- Chinese corporations are defaulting on local bonds at the fastest pace on record, as authorities ramp up efforts to introduce more financial discipline and transparency in the world’s second-largest debt market.Firms so far this year have failed to make payments on 99.8 billion yuan ($15.5 billion) of onshore bonds, according to Bloomberg-compiled data. While 2021 is set to be the fourth straight year the 100 billion yuan level has been topped, it previously hadn’t happened before September. For all of 2015, when China’s stock market crashed, defaults totaled just 8.9 billion yuan.Missed payments are running at a record pace this year, following the late 2020 defaults of some state-linked firms which affirmed convictions that authorities in China are increasingly willing to not bail out weak firms. The recent tumult surrounding bad debt manager China Huarong Asset Management Co. raised fresh questions about support for central state-owned firms, even as the risk of contagion remains relatively contained. Signs of a maturing credit market have helped Chinese officials’ effort to refocus on financial risks in areas like asset prices and debt levels.Ultimately, more defaults are part of a healthy credit market with a genuine high-yield onshore sector and adequate pricing of risk, according to Jean-Charles Sambor, head of emerging-market debt at BNP Paribas Asset Management.“Policy makers are willing to draw a line in the sand between what is systemic and what is not,” he said. “They want to inject more credit risk in the system and change the mindset of investors, forcing them to look more at stand alone credit risk rather than speculating on the likelihood of support from the central government.”Delinquencies are crucial in helping develop a mature and efficient market that improves transparency, reduces moral hazard and prompts a reassessment of risk. Increased financial discipline for companies and improved credit ratings serves Beijing’s longer-term goal of attracting more foreign cash to the country’s capital markets-- especially from more stable sources like pension funds and insurers instead of hot money flows.Payment failures also help deepen regulation, as well as create a more standardized process and better assumptions in terms of recovery rates, Sambor said. “This short-term pain will translate into medium-term gain.”China’s central bank, in its first-quarter monetary report published Tuesday, urged establishing a mechanism that holds local party and government leaders accountable for major financial risks.Developer DefaultsReal estate firms are leading this year’s surge in onshore bond defaults, as authorities tighten access to funding in the debt-laden sector. Developers have made up about 25% of those missed payments with the government’s “three red lines” policy increasingly weighing on these borrowers. Payment failures at China Fortune Land Development Co. and Tianjin Real Estate Group Co. topped 10 billion yuan in the first quarter, according to Bloomberg-compiled data. They also did for chipmaker Tsinghua Unigroup Co. and Hainan Airlines Holding Co.Defaults on offshore bonds have also ramped up -- logging a combined $3.7 billion in January and February but none since, according to Bloomberg-compiled data. Still, that’s nearly half of 2020’s full-year $8.3 billion.(Adds quote in the seventh 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) -- Short selling, a strategy that was all but left for dead in the wake of the meme-stock mania, is working pretty well at the moment.Hedge funds in particular seem to have timed recent tech stock declines almost perfectly, pushing up bearish bets just before the market rolled over. A basket of the 50 most-shorted stocks slipped in 10 of the past 11 sessions, the best run for bears since December 2018, data compiled by Goldman Sachs Group Inc. and Bloomberg show.The reward comes right after professional speculators recharged, boosting short sales on single stocks from a decade low reached in February. Their short book as a percentage of total equity exposure crept up over the last two months, rising roughly 2 percentage points to 26%, according to prime broker data compiled by Morgan Stanley.Short interest is still far from a peak of about 35% that Morgan Stanley’s fund clients accumulated in 2018 and 2020. Still, it’s a victory for short sellers who had been driven almost into extinction as the S&P 500 rallied as much as 90% from the pandemic trough in March 2020, with all but two members climbing. Hedge fund managers bold enough to revive bearish wagers are now reaping gains after being stung by Reddit-driven short squeezes on GameStop Corp. and other meme stocks earlier this year.Morgan Stanley did not specify what kind of stocks hedge funds are targeting, though a look at exchange-traded fund and futures trading shows growing distaste for technology, where stock losses are piling up as inflation concern puts pressure on their stretched valuations. Unprofitable tech firms are particularly vulnerable, having fallen 36% from their February peak as a group.“The timing is coming from the fact that the pull-back in long-term rates that took place in April has come to an end,” said Matt Maley, chief strategist at Miller Tabak + Co. Short interest “is growing now, but it’s not back to extreme levels, so the hedge funds are less worried about getting squeezed. In fact, if the sector continues to fall, they’ll actually add to their shorts.”Both the biggest ETF tracking the Nasdaq 100 and Cathie Wood’s ARK Innovation ETF experienced a spike in short sales in recent weeks. Large speculators in the futures market, mostly hedge funds, were net short Nasdaq 100 mini contracts for an 11th straight week, a stretch of bearishness seen only one other time since the global financial crisis, according to Commodity Futures Trading Commission data.The strategy is paying off, at least for now. The Nasdaq 100 has dropped more than 5% from its April high. The reward is more pronounced among single stocks. Two-thirds of the stocks in Goldman’s most-shorted basket are down this quarter, led by electric-vehicle maker Workhorse Group Inc., which fell 44%, and solar company Sunpower Corp. with a drop of 38%. GameStop, which burned short sellers in January, has worked in bears’ favor as well, losing a quarter of its value.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) -- Apple Inc. said Antonio Garcia Martinez, a former Facebook Inc. product manager who recently joined the iPhone maker, is no longer at Apple after his hiring caused an internal backlash because of past comments that drew fire for being racist or sexist.Garcia Martinez, who was hired last month to work in product engineering on Apple’s advertising platform team, has left after just a couple of weeks on the job, the Cupertino, California-based company said Wednesday in a statement.“At Apple, we have always strived to create an inclusive, welcoming workplace where everyone is respected and accepted,” an Apple spokesman told Bloomberg News. “Behavior that demeans or discriminates against people for who they are has no place here.”Earlier Wednesday, several Apple employees complained about the Garcia Martinez hire both internally and on social media, citing comments he previously made and excerpts from his 2016 book, Chaos Monkeys. In the book, Garcia Martinez called women in Silicon Valley “soft and weak” and made a series of other assertions deemed misogynist and racist by Apple employees.In an internal memo to Eddy Cue, Apple’s senior vice president who oversees services such as advertising, and executives in the inclusion and diversity department, Apple employees questioned how a company that prides itself on diversity could make such a hire.“We demand an investigation into how his published views on women and people of color were missed or ignored, along with a clear plan of action to prevent this from happening again,” the workers wrote.The internal firestorm at Apple was a rarity for a company that has mostly sidestepped related controversies that have plagued Alphabet Inc.’s Google and other technology companies.“We are profoundly distraught by what this hire means for Apple’s commitment to its inclusion goals, as well as its real and immediate impact on those working near Mr. Garcia Martinez,” a group of Apple employees wrote in the memo. “It calls into question parts of our system of inclusion at Apple, including hiring panels, background checks, and our process to ensure our existing culture of inclusion is strong enough to withstand individuals who don’t share our inclusive values.”Earlier in his career, Garcia Martinez worked on ad targeting at Facebook. When he was hired at Apple, industry observers questioned the move as his advertising approach at Facebook strongly differed from the privacy-centric approach Apple says it takes with its advertising efforts.In an interview with Vox in 2018, Garcia Martinez said, “most people don’t care about privacy. Media elites care about it, underemployed Eurocrats care about it. And the entire privacy-industrial complex -- there’s an entire set of very loud voices who are constantly beating the drum and building media careers around this.”Apple has ad slots in the App Store, Apple News and Stocks apps, but has clamped down on the ability for third-party app developers like Facebook to target users with personalized ads.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) -- Discover what’s driving the global economy and what it means for policy makers, businesses, investors and you with The New Economy Daily. Sign up here.Money markets are wagering on an increase in Bank of England borrowing costs as soon as next year, having only recently erased bets on negative rates.Traders now see 15 basis points of tightening in September 2022. That’s a sharp turnaround from the second half of last year, when traders were contemplating rates of as low as minus 0.1% after the central bank said it was studying the feasibility of such a move. They only removed bets on further loosening in February, when policy makers stressed that negative rates are not imminent as the U.K.’s vaccine rollout transformed the nation’s monetary policy debate. A larger-than-expected increase in U.S. consumer prices on Wednesday triggered a global rates selloff, sending benchmark gilt yields to their highest level in around two months and spurring traders to bring forward their expectations for a BOE rate hike.The central bank traditionally shifts its key interest rate by multiples of 25 basis points, though it cut rates by 15 basis points in March 2020, at the height of the coronavirus pandemic. If officials wanted to tighten financing conditions, a move back to 0.25% is seen by strategists as a plausible first step.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) -- Volvo Cars said it’s considering an initial public offering months after calling off earlier plans to merge with Geely Automobile Holdings Ltd., the Chinese manufacturer owned by its parent.The board of the Swedish carmaker has decided to evaluate a possible listing on the Nasdaq Stockholm stock exchange later this year, according to a statement. Bloomberg News reported in March that owner Zhejiang Geely Holding Group Co. was considering an IPO that could value the business at around $20 billion.Volvo’s more than a decade under Chinese control has been a success story. While pandemic disruptions snapped a six-year streak of record sales, demand came roaring back and fueled record deliveries and profit in the second half. Geely has been a supportive owner, helping fund construction of the company’s first-ever U.S. car plant and the investment it will take to go fully electric by the end of the decade.“We have supported the transformation and growth of Volvo Cars for the last 10 years, enabling the company to become a true premium brand with improved profitability,” Eric Li, Geely Holding’s chairman, said in the statement. “Volvo Cars is especially well positioned to deliver continued growth and harness the full potential of electrification and the delivery of safe autonomous drive functions.” Geely Holding would remain a major shareholder of Volvo, which also announced that it has extended the contract of Chief Executive Officer Hakan Samuelsson to the end of next year. He’s led Volvo since 2012, two years after Geely acquired the company from Ford Motor Co. for just $1.8 billion.For all its success boosting Volvo’s value, Geely has struggled to cash in on its investment. It pursued an IPO in 2018 but shelved the idea after investors balked at its proposed valuation of as much as $30 billion, people familiar with the matter said at the time.(Updates with context in the 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.
NEW YORK (Reuters) -U.S. stocks suffered the biggest slump in at least 11 weeks on Wednesday and benchmark Treasury yields jumped after data showed consumer prices in April unexpectedly rose by the highest level in nearly 12 years, prompting bets on earlier interest rate hikes. A 0.8% jump in the U.S. consumer price index - outpacing a 0.2% forecast - boosted the U.S. dollar as expectations of rising real interest rates burnished the currency's appeal. The gyrations in financial markets underscored concerns among some investors that the Federal Reserve could be wrong in its prediction that inflation pressures in the United States are temporary, and that the central bank may have to raise rates sooner than it expects.
Inflation fears are dogging Wall Street at a time when the U.S. rebound is picking up speed.
(Bloomberg) -- Tesla Inc.’s Chief Executive Officer Elon Musk said the electric-vehicle manufacturer is suspending purchases using Bitcoin, triggering a slide in the digital currency.In a post on Twitter Wednesday, Musk cited concerns about “rapidly increasing use of fossil fuels for Bitcoin mining and transactions,” while signaling that Tesla might accept other cryptocurrencies if they are much less energy intensive. He also said the company won’t be selling any of the Bitcoin it holds.The largest cryptocurrency dropped as much as 15% to just above $46,000, before paring some of the retreat. It was down about 6% to $51,210 as of 7:03 a.m. in London on Thursday. Other tokens such Ether and Dogecoin also slid. The rush to sell briefly caused outages at some cryptocurrency exchanges. Bitcoin is still up more than fivefold in the past year.Musk’s move comes after Tesla disclosed in February that it had purchased $1.5 billion in Bitcoin and planned to accept it as a payment. That announcement added legitimacy to the cryptocurrency as an increasingly acceptable form of payment and an investment, especially coming from a large member of the S&P 500 with a high-profile CEO who commands a big following among retail investors and the general public.Tesla’s website, which had a support page dedicated to Bitcoin, noted that the token was the only cryptocurrency that Tesla accepts in the continental U.S. Musk has also tweeted frequently about Dogecoin, a cryptocurrency started as a joke in 2013 -- and he quipped about being the “Dogefather” before and during his stint hosting the “Saturday Night Live” show on May 8. He tweeted on Tuesday, “Do you want Tesla to accept Doge?”Tesla’s addition of Bitcoin to its balance sheet was the most visible catalyst during this year’s rally in the digital currency. Bitcoin jumped 16% that day, the biggest one-day gain since the Covid-19 induced financial markets volatility in March 2020.Optimism grew after Mastercard Inc., Bank of New York Mellon Corp. and other firms moved to make it easier for customers to use or invest in cryptocurrencies, fueling the mainstream resurgence that took Bitcoin from about $29,000 at the end of last year to as high as almost $65,000 in April.Bitcoin mining is consuming 66 times more electricity than it did back in late 2015, and the carbon emissions associated with it will likely face increasing scrutiny, according to a recent Citigroup Inc. report.Musk is no stranger to considering the issue of crypto’s environmental impact.Musk Splits From Cathie Wood’s Ark on Bitcoin Environmental CostCathie Wood’s Ark Investment Management LLC published a report last month saying cryptocurrency mining can drive investment in solar power and make more renewable energy available to the grid. Twitter Inc.’s Jack Dorsey retweeted a post on the white paper with the comment that Bitcoin “incentivizes renewable energy.” Musk replied to Dorsey’s tweet, saying simply, “True.”‘Confusing’Musk’s tweet on Wednesday took many in the cryptocurrency community by surprise, including Nic Carter, founding partner at Castle Island Ventures, and a leading voice among defenders of Bitcoin’s energy use.“Surely he would have done his diligence prior to accepting Bitcoin?” Carter said. “Very odd and confusing to see this quick reversal.”It’s unclear what prompted the decision and Musk and Zachary Kirkhorn, Tesla’s chief financial officer, didn’t immediately respond to an email inquiry for comment. Kirkhorn in March added the tongue-in-cheek title “Master of Coin,” according to a regulatory filing.Tesla’s first-quarter earnings were bolstered by the sale of 10% of its Bitcoin holdings. Musk said last month the disposal was intended to demonstrate the token’s liquidity, and added that he’s retained his personal investment in the cryptocurrency.Kirkhorn said on the firm’s earnings call in late April that Tesla believed in Bitcoin’s long-term value and planned to accumulate the tokens from transactions with customers.(Updates markets in the third paragraph. An earlier version of this story corrected the company name in the 11th 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.
Block.one, a blockchain software company backed by Peter Thiel, plans to introduce a new cryptocurrency exchange this year.
Worries over inflation are rippling through the U.S. stock market, spooking equities overall while causing investors to consider which shares can hold up better in an environment where inflation may be heating up. Inflation talk grew on Wednesday as data showed U.S. consumer prices increased by the most in nearly 12 years in April. Research by UBS equity strategists found the S&P 500 starts moving in the opposite direction to inflation expectations when the breakeven rate on the 10-year U.S. Treasury Inflation-Protected Securities (TIPS) -- a market-based measure of inflation -- exceeds 2.5%.
Inflation fears are dogging Wall Street at a time when the U.S. rebound is picking up speed.
India's devastating COVID-19 crisis is making investors question more than ever whether after years of debt accumulation and patchy progress on reforms, a country touted as a future economic superpower still deserves its 'investment grade' status. A spate of downgrades last year had already left India's investment grade credit ratings hanging by a thread and the severity of the current virus wave is making the main agencies, S&P, Moody's and Fitch agitated again. All three firms have either cut - or warned they could cut - the country's growth forecasts in recent weeks and that government debt as a share of GDP will jump to a record 90% this year.
A senior Republican U.S. senator on Tuesday asked the chief executives of Toshiba America Electronic Components, Seagate Technology, and Western Digital Corp if the companies are improperly supplying Huawei with foreign-produced hard disk drives. Senator Roger Wicker, the ranking member of the Commerce Committee, said a 2020 U.S. Commerce Department regulation sought to "tighten Huawei's ability to procure items that are the direct product of specified U.S. technology or software, such as hard disk drives."
(Bloomberg) -- South Korea unveiled ambitious plans to spend roughly $450 billion to build the world’s biggest chipmaking base over the next decade, joining China and the U.S. in a global race to dominate the key technology.Samsung Electronics Co. and SK Hynix Inc. will lead more than 510 trillion won of investment in semiconductor research and production in the years to 2030 under a national blueprint devised by President Moon Jae-in’s administration. They’ll be among 153 companies fueling the decade-long push, intended to safeguard the nation’s most economically crucial industry. Moon got a briefing from chip executives on the initiative Thursday during a visit to the country’s most advanced chip factory, a Samsung plant south of Seoul.Samsung is boosting its spending by 30% to $151 billion through 2030 while Hynix is committing $97 billion to expansion at existing facilities in addition to its $106 billion plan for four new plants in Yongin, co-Chief Executive Officer Park Jung-ho said during the event.“Major global competitors are pressing ahead with massive investment to be the first to take the future market,” Moon said in a speech. “Our companies have been taking risks and innovating as well and have completed preparations for tumultuous times.”The effort comes at a time when the U.S., China and the European Union seek to shore up their semiconductor capabilities after a global chip shortage exposed a reliance on just a handful of Asian manufacturers and hobbled efforts to repair pandemic-scarred economies. The shortages are now spreading from autos to smartphones and displays, elevating semiconductors onto the agendas of governments from Washington to Brussels and Beijing.At stake is a technology fundamental to groundbreaking advances from artificial intelligence to autonomous vehicles and connected homes. South Korea, a security ally of the U.S. and a major exporter to China, has been walking a tightrope between the two while bolstering its own production prowess. Semiconductors account for the largest share of South Korea’s exports and chip exports are expected to double to $200 billion by 2030, the Ministry of Trade, Industry and Energy said.Read more: Biden Finds a Key Ally Wary of His Bid to Outpace China on ChipsLikening semiconductors to rice -- a global dietary staple -- the ministry called them “strategic weapons” in a race for superior technology intensifying among not just firms but also nations.The government seeks to build a “K-semiconductor belt” that stretches dozens of kilometers south of Seoul and brings together chip designers, manufacturers and suppliers, according to the ministry.Samsung and Hynix make the majority of the world’s memory chips, basic semiconductors that handle storage for all devices. But one area South Korea has been lagging in is the ability to produce advanced logic chips that handle complex calculations for tasks like AI and data processing, a specialty dominated by Taiwan Semiconductor Manufacturing Co., which makes Apple Inc.’s iPhone processors. Samsung aims to compete more aggressively in this area, securing some of Nvidia Corp.’s graphics card business and pursuing a bigger share of Qualcomm Inc.’s mobile chips. Hynix too has announced ambitions to get into logic chips.Read more: Data Centers Doubling Is Next Driver of Chip Demand, Hynix SaysThe Korean government will incentivize its domestic industry with tax breaks, lower interest rates, eased regulations and reinforced infrastructure, hoping to see its chipmakers make up the distance from the global leaders, the ministry said. The government will also secure adequate water supply for the next 10 years in the targeted region and reinforce power supplies, both essential to advanced chipmaking factories.Korea’s blueprint echoes efforts underway around the world. President Joe Biden wants to dedicate $50 billion to U.S. semiconductor research and production, part of an overall ambition to safeguard America’s supply chains. And China has earmarked hundreds of billions of dollars toward developing its own chipmaking industry, wary of a reliance on Western-designed imports.South Korea also aims to attract additional foreign investment in advanced technology. Dutch semiconductor equipment maker ASML Holdings NV signaled it intends to spend 240 billion won to build a training center in Hwaseong while California-based Lam Research Corp. plans to double its capacity in the country, the ministry said.”South Korea is essentially beckoning global suppliers to come and work with its homegrown chipmakers so it can build an ecosystem on its soil rather than see them relocate to the U.S. and elsewhere,” said Kim Yang-paeng, semiconductor analyst at the Korea Institute for Industrial Economics and Trade. “Broadening its investment to foundries and logic chips also guarantees that it has something to fall back on should anything go wrong with the memory chip industry that it’s dominant in.”In terms of direct contributions, the country wants to help train 36,000 chip experts between 2022 and 2031, contribute 1.5 trillion won toward chip research and development and will start discussing legislation tailored to assist the semiconductor industry.(Updates with quotes from president and analyst from fourth 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.