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SolarEdge plunged Friday, round tripping a 26% gain and more. Solar stocks slammed. Also, Tesla releasing a solar inverter, providing competition.
SolarEdge plunged Friday, round tripping a 26% gain and more. Solar stocks slammed. Also, Tesla releasing a solar inverter, providing competition.
An HSBC representative said the bank has “limited appetite to facilitate products or securities that derive their value from virtual currencies.”
(Bloomberg) -- Zimbabwe is considering penalizing domestic banks, telecommunications operators and other businesses over what the government describes as profiteering off the hard currency it makes available at auctions.Lenders could face fines and suspensions, while companies that charge a premium for foreign exchange may be banned from participating in the auctions, central bank Governor John Mangudya said in a phone interview from the capital, Harare.“All the malpractices will be targeted,” he said. “There’s no need to chase foreign currency as if it will run out.”President Emmerson Mnangagwa on Monday threatened unspecified actions against “sharks in the financial sector,” according to the state-owned Herald newspaper, which said unidentified entities are profiteering at the public’s expense. The president’s comments were made during a wide-ranging interview he gave to state-owned television that will be aired on April 17 on the eve of Independence Day celebrations, the paper said.Exchange ClosedMnangagwa has previously issued warnings to private companies he blames for undermining his efforts to turn around an economy plagued by annual inflation of 241% and foreign-currency shortages.Last year, his government closed the Zimbabwe Stock Exchange for five weeks and singled out the largest mobile operator, Econet Wireless Zimbabwe Ltd., for undermining the nation’s currency through its mobile-money service. Econet denied the allegations.The impending action is an attempt to prevent manipulation of the foreign-currency auction system, according to the Herald. The system has provided over $800 million to companies since its introduction in June, though high demand for U.S. dollars by importers means that there is only a limited supply.Monetary authorities met with the Bankers Association of Zimbabwe on April 12 to discuss “due diligence and know-your-customer requirements” in order to ensure economic stability, Mangudya said.Ralph Watungwa, president of the Banker’s Association of Zimbabwe, didn’t immediately answer two calls to his mobile phone seeking comment.Zimbabwe reintroduced its own currency in 2019 after a 10-year hiatus and has been battling bouts of high inflation and shortages of everything from foreign currency to food. The local unit, which was pegged at parity to the U.S. dollar as recently as February 2019, has plunged to 84 per U.S. dollar.The gap between the official exchange rate and parallel market has widened by 36%, with a U.S. dollar selling for 115 Zimbabwean dollars on the streets of Harare.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.
Euro zone politicians, courts and policy hawks will pose a stiff challenge this year to the ECB's resolve to pin down the bloc's borrowing costs, precisely at a time when higher U.S. Treasury yields are tempting investors away from European markets. The European Central Bank has held sovereign debt yields low through bond purchases, and recently increased buying in its 1.85 trillion-euro ($2.22 trillion) emergency stimulus scheme, known as PEPP. And it is no longer battling alone to support the euro economy, as the pandemic induced governments to spend more and to create an 800 billion-euro Recovery Fund, seeded by joint European Union borrowing.
(Reuters) -The S&P 500 and the Dow hit record highs on Friday after Morgan Stanley wrapped up bumper quarterly earnings reports from big U.S. banks, while optimism about a solid economic rebound put the main indexes on course for weekly gains. Nine of the 11 S&P indexes were higher, with only the information technology and the energy indexes edging lower after outperforming in the previous session. The benchmark S&P 500 and the blue-chip Dow are on course for their fourth straight week of gains, while the technology-heavy Nasdaq is less than a percent below its own all-time closing high on the back of upbeat economic data and a solid start to the first-quarter corporate earnings season.
(Bloomberg) -- China’s financial regulator said operations at China Huarong Asset Management Co. are normal and the company has ample liquidity, marking the first official comments aimed at easing investor concerns over the financial health of the nation’s largest bad-debt manager.The state-owned company is actively cooperating with its auditor and will complete its annual report as soon as possible, the China Banking and Insurance Regulatory Commission said in a statement. Huarong’s dollar bonds climbed, extending their rally from record lows on Thursday. A dearth of communication from Huarong and regulators on the company’s plight has unnerved investors who are seeking more details on its finances, its overhaul plans and its level of support from Beijing.Huarong, which owes $42 billion to local and offshore bondholders, jolted Asian credit markets after failing to meet a March deadline for releasing its 2020 earnings. The company was already under a shadow after its former chairman, Lai Xiaomin, was executed earlier this year after being found guilty of bribery. Under his leadership, Huarong expanded into areas including securities trading and trusts in a significant shift away from the company’s original mandate of helping banks dispose of bad debt.Huarong said earlier this week it had “adequate” liquidity and has repaid all bonds that matured on time, yet the company has declined to comment on its plans for future payments. The lack of clarity has fueled investor concerns about the potential for a debt restructuring that would be China’s most consequential since the late 1990s. Huarong’s dollar bond maturing in November climbed 4.3 cents on the dollar to 82.6 cents as of 5:35 p.m. in Hong Kong. Its yield, which approached 100% on Thursday, fell to 39%.The company’s offshore bonds began rebounding on Thursday, after reports that Huarong had funds for a full repayment of a S$600 million ($450 million) offshore note due April 27. The company’s onshore securities unit has wired funds to repay a local bond maturing Sunday, people familiar with the matter said on Friday. Huarong and its subsidiaries need to repay or refinance some $7.4 billion of local and offshore bonds this year. The company counts Warburg Pincus, Goldman Sachs Group Inc. and Malaysia’s sovereign wealth fund among its shareholders, according to data compiled by Bloomberg. The stock has dropped 67% since its 2015 listing in Hong Kong and has been halted from trading since the start of April.Hu Jianzhong, chief supervisor at Huarong, said at an event in Beijing on Friday that China will see more difficulties in bad-asset disposal market over the next three to five years as the volume rises and prices fall. Hu didn’t mention Huarong’s debt situation in the speech and declined to comment on the company’s bond repayment plan or the timing for its annual report on the sidelines of the event.The nation’s distressed loan managers are facing mounting pressure as the pandemic has made it harder to dispose of assets, according to a closely watched survey by China Orient Asset Management Co. released on Friday.Increasing credit losses at the managers themselves threaten to hurt profits and have adverse impact on their capital strength over the long term, China Orient, one the nation’s four state-owned bad-debt managers, said in the report. It also warned of growing difficulties with maturity mismatches as the companies’ liabilities are mostly short-term.Financial IndustrySeparately, China’s regulator said on Friday that the country’s banks saw their non-performing loans climb to 3.6 trillion yuan ($552 billion) as of March 31, up 118.3 billion yuan from the end of 2020. The NPL ratio eased to 1.89%, 0.02 percentage point lower than at the end of 2020.With the coronavirus largely contained and the economy rebounding, Chinese policy makers have renewed a campaign to restrain leverage and curb risks, especially in the closely managed financial and real estate sectors. Last year’s stimulus pushed debt to almost 280% of annual economic output.The central bank last month asked major lenders to curtail loan growth for the rest of this year after a surge in the first two months stoked bubble risks, people familiar with the matter have said.The economy accumulated much of its record debt pile after the global financial crisis, when it binged on credit to avoid the economic slumps ravaging the West. Efforts in 2017 to restrain debt growth, especially in the shadow-banking industry, led to higher money-market rates and a slump in government bonds.(Adds background 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.
Soaring Chinese demand for luxury Mercedes-Benz cars and higher prices drove a better-than-expected profit for Daimler in the first quarter, helping it navigate the coronavirus crisis. Mercedes-Benz sales in China hit 220,520 vehicles in the quarter, a rise of 60%, and outmatched the German carmaker's performance in Europe where they were up 1.8% to 192,302. "Favourable sales momentum at Mercedes-Benz Cars driven by all major regions, especially China, strongly supported the product mix and pricing in the first quarter," Daimler AG said in a statement on Friday.
In a new interview, BNY Mellon Wealth Management CEO Catherine Keating tamped down concern about inflation, saying the price hikes will be temporary. She pointed to two trends that predate the pandemic: an aging population and rising debt.
(Bloomberg) -- Gold headed for its best week since December amid a retreat in bond yields and a report that top buyer China may import more of the metal.After weeks trading in a narrow range, gold has advanced as Treasuries yields and the dollar head for weekly losses. Lower yields boost the appeal of bullion, which doesn’t offer interest. Dollar declines helped spur a broad rally in raw materials, with the Bloomberg Commodity Index also on track for its best week of 2021.Bullion is showing tentative signs of breaking out of a slump following three straight monthly losses. Prices rose above the 50-day moving average on Thursday, a positive signal for traders who follow chart patterns. On Friday, bullion extended gains to the highest since February after Reuters reported that China has given banks permission to import a large amount of bullion to meet domestic demand.The overall robust performance in commodities this week was “being supported by a surprise drop in U.S. Treasury yields accompanied by a weaker dollar,” said Ole Hansen, head of commodities research at Saxo Bank. Gold, along with crude oil and copper, “broke higher, thereby potentially signaling renewed momentum attracting fresh buying from speculators.”Spot gold rose 0.8% to $1,778.17 an ounce by 1:43 p.m. in New York. Prices are up about 2% this week, on course for the biggest gain since Dec. 18. Futures for June delivery on the Comex rose 0.8% to settle at $1,780.20 an ounce.Federal Reserve Chairman Jerome Powell’s reiteration of his dovish stance on monetary policy also helped bullion this week. That helped offset the impact of improving U.S. and Chinese economic reports, which could otherwise diminish demand for the metal as a haven.“The economic data published in the U.S. yesterday afternoon turned out for the most part to be significantly better than the market had anticipated,” Commerzbank AG analyst Daniel Briesemann said. “It seems that market participants believed the U.S. Federal Reserve’s assertion this time that it would not react to good data and would tolerate economic overheating.”In other precious metals, silver and platinum advanced.Palladium rose 1.2% after reaching the highest in more than a year. The metal, which reached a record of $2,883.89 in February last year, has benefited from stricter emissions rules that boost usage in autocatalysts.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.
NINGBO, China/BEIJING (Reuters) -Chinese automaker Geely, owner of Volvo Cars, on Thursday launched a high-end electric vehicle (EV) brand named Zeekr, targeting China's growing appetite for premium EVs that has boosted sales for Tesla and Chinese peer Nio. Parent Zhejiang Geely Holding Group and Geely Automobile said last month they would jointly invest 2 billion yuan ($306 million) in the new venture, seeking to position Zeekr as a startup under Geely group, also known overseas for its 9.7% stake in Germany's Daimler AG. The price tags for Zeekr cars will be around 300,000 yuan, and Flynn Chen, Zeekr's vice president, said the brand will explore new sales and marketing methods, including allowing customers to subscribe to car-using rights and offering a stake in the company to car buyers.
Coinbase is known for its expensive trading fee, yet it's still not listing doge, one of the most traded tokens.
Citibank has hinted there won't be any possible layoff and closure of physical branches in the countries it is exiting.
The IRS chief tells Congress the child tax credit payments will arrive on time after all.
The IRS sent out COVID-19 relief checks to nearly 2M more Americans, including over 700,000 'plus-up' payments for people eligible for more money.
(Bloomberg) -- The European Central Bank will slow its emergency bond-buying by July and signal at the end of this year that the program will come to a halt in March 2022, according to a Bloomberg survey of economists.More than 60% of respondents predict the ECB will stick to its current timeline for net purchases, and almost as many expect it to give three months’ notice before stopping the program. Economists don’t expect any policy changes at next week’s meeting.The central bank accelerated its pandemic emergency purchase program last month to keep financing conditions for companies, households and governments across the euro area favorable. Borrowing costs are facing upward pressure as the speedier U.S. recovery and larger fiscal stimulus spill over into higher bond yields globally.ECB policy makers have signaled there’s little reason to change course until June, when the issue is up for review and new forecasts will provide a better idea of the road to recovery.While high infection rates and tight lockdowns across much of the region are still curbing business activity, a pickup in vaccinations suggests coronavirus restrictions can gradually be lifted in the coming months. Economists predict an economic recovery will start in the second quarter, becoming more entrenched in the rest of the year.“The lockdowns at the beginning of the quarter are a drag, but as the vaccination campaigns gather pace, a material improvement is in sight,” said Birgit Henseler, an economist at DZ Bank AG. “Growth should then accelerate strongly in the third quarter.”All but one of the respondents expect the next significant change in the pace of bond-buying will be a slowdown.What Bloomberg Economics Says“A full assessment of the pace of asset purchases won’t happen until June, but the tone of next week’s press conference may offer some hints on the debate to come. The hawks are likely to focus on the successful containment of bond yields and the economic recovery, while the doves will be more cautious.”-David Powell. To read the full report click herePolicy makers have started to publicly consider how and when it’ll be safe to unwind the unprecedented support they’ve offered over the past year. While officials including President Christine Lagarde have repeatedly stressed the dangers of withdrawing monetary or fiscal support too soon, some of her colleagues are also wary of pumping too much money into the financial system and undermining financial stability.Dutch central bank Governor Klaas Knot has suggested bond-buying could be tapered starting in the third quarter. His French colleague Francois Villeroy de Galhau has argued that pandemic purchases could end next March, with older tools being used to ensure monetary policy remains accommodative.“The near-term outlook for the euro zone remains weak given the tight grip of the third infection wave, and despite the recent pick-up in the vaccination pace,” said Oliver Rakau, an economist at Oxford Economics. He predicts the ECB will continue to buy bonds at an accelerated pace until September.Nearly two thirds of respondents expect the ECB to use the entire 1.85 trillion euros ($2.2 trillion) currently agreed under the pandemic program. Policy makers have said they could spend less than that if warranted by the recovery, or expand the amount again if needed.Just two economists predict a boost will be needed -- in September -- while almost a third reckon not all the money will be deployed.Four out of five respondents say the balance of risks to the outlook has remained largely unchanged since the ECB’s last policy meeting in March.“The ECB will probably simply confirm the decisions taken in March” at next week’s session, said Bas van Geffen, an economist at Rabobank. “June will be the more interesting meeting, when the ECB may decide to reverse the higher pace.”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.
China has given domestic and international banks permission to import large amounts of gold into the country, five sources familiar with the matter said, potentially helping to support global gold prices after months of declines. China is the world's biggest gold consumer, gobbling up hundreds of tonnes of the precious metal worth tens of billions of dollars each year, but its imports plunged as the coronavirus spread and local demand dried up. With China's economy rebounding strongly since the second half of last year, demand for gold jewellery, bars and coins has recovered, driving domestic prices above global benchmark rates and making it profitable to import bullion.
Warren Buffett's famous economic measurement shows Orman might be onto something.
China's GDP expanded by a dizzying 18.3% in the first three months of 2021 from a year earlier, sealing its status as COVID-19's "first in, first out" economy. It was the only major economy that showed an increase in gross domestic product (GDP) last year after successfully controlling the spread of the coronavirus pandemic at home. HOW BIG IS CHINA'S FIRST-QUARTER GDP GROWTH EXACTLY?
Federal tax returns are due May 17, but many people still need to pay their first quarter 2021 estimated tax payments April 15. Plus more tax tips.
Lawmakers and advocacy groups are pushing the president to take immediate action.
Bitcoin fell early on Friday, after Turkey’s central bank decided to ban cryptocurrency payments from the end of the month.