Mar.02 -- Rep. John Katko, a Republican from New York, says the stimulus bill that passed in the House will look much different coming out of the Senate. He speaks to Bloomberg's Kevin Cirilli.
Mar.02 -- Rep. John Katko, a Republican from New York, says the stimulus bill that passed in the House will look much different coming out of the Senate. He speaks to Bloomberg's Kevin Cirilli.
Stocks fell Monday, with the S&P 500 and Dow retreating from record levels.
A deal between the asset manager and the crypto custodian is close to being finalized, sources tell CoinDesk.
(Bloomberg) -- Britain’s Treasury and the Bank of England are weighing the potential creation of a central bank digital currency, joining authorities from China to Sweden exploring the next big step in the future of money.The government and central bank on Monday announced the creation of a task force to coordinate on the possibility of BOE-issued digital money for use by households and businesses. They will engage in discussions with stakeholders on the risks and benefits before making a decision.If approved, the digital currency would “exist alongside cash and bank deposits, rather than replacing them,” according to the statement.With modern technologies and the coronavirus accelerating the push toward cashless transactions, and crypto currencies such as Bitcoin gaining traction, central banks are taking action to make sure they don’t fall behind.In 2020, the Bahamas launched the Sand Dollar, making it among the world’s first sovereign-backed digital currencies. The European Central Bank and Sweden’s Riksbank have said they could follow suit around the middle of the decade.China is also considering a digital yuan, but the Federal Reserve has previously said it was not something the U.S. would rush into.The U.K. task force will be jointly chaired by BOE Deputy Governor Jon Cunliffe and the Treasury’s Director General of Financial Services, Katharine Braddick. A new CBDC division will be set up at the central bank.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.
LONDON (Reuters) -British finance minister Rishi Sunak told the Bank of England on Monday to look at the case for a new "Britcoin", or central bank-backed digital currency, aimed at tackling some of the challenges posed by cryptocurrencies such as bitcoin. "We're launching a new taskforce between the Treasury and the Bank of England to coordinate exploratory work on a potential central bank digital currency (CBDC)," Sunak told a financial industry conference. Soon after, Sunak tweeted the single word "Britcoin" in reply to the finance ministry's announcement of the taskforce.
(Bloomberg) -- Chinese delivery giant Meituan has raised $9.98 billion from a record top-up placement and a convertible bonds sale as it doubles down on efforts to fight the likes of Alibaba Group Holding Ltd. in newer areas such as online groceries.The nation’s third-largest internet company has sold 187 million shares in a top-up placement at HK$273.80 each, near the top end of its marketed range, and also raised $400 million from shareholder Tencent Holdings Ltd., according to terms of the deal obtained by Bloomberg News. The $7 billion new stock issuance is the largest-ever such sale by a Hong Kong-listed company, data compiled by Bloomberg show. Meituan has also sold $2.98 billion in zero-coupon convertible bonds.Meituan’s shares were volatile on Tuesday, trading up 1.2% as of 10:28 a.m. in Hong Kong, after having fallen as much as 1.8% earlier. The placement price represents a discount of 5.3% to the stock’s closing price Monday. The convertible bonds are divided in two tranches -- $1.48 billion six-year notes and $1.5 billion seven-year paper, the terms showed.“There were some rumors about the placement last week, now that overhang is gone,” said Steven Leung, executive director at UOB Kay Hian (Hong Kong) Ltd. “Demand for the placement was strong near the top end of the range. I heard the issue was taken up very quickly.”The stock and bond sales come as Meituan grapples with the cost of competing against the likes of Alibaba and Pinduoduo Inc. in newer spheres such as community e-commerce and online groceries. The company has warned it will remain in the red for several more quarters despite record revenues as it spends heavily on new initiatives.Meituan intends to use the proceeds from the offerings for technology innovations, including the research and development of autonomous delivery vehicles, drones delivery, and other cutting-edge technology, and general corporate purposes, the terms showed.“It makes sense to raise money to make more of a shift into autonomous delivery, seek to delve into more technology-focused areas especially under the backdrop of the anti-monopoly” drive, said Zhou Luyun, an analyst at Northeast Securities Co. in Shanghai. “The pricing shows that the market buys this blueprint.”Community buying is one of Meituan’s chief expansion areas, where buyers in the same neighborhood enjoy bulk discounts on fresh produce. But the firm faces entrenched competition from other Internet giants.All three main ratings agencies lowered their outlook on Meituan after it reported earnings last month, with S&P Global Ratings and Moody’s Investors Service saying that its large investments in community e-commerce would come at a heavy cost, generate negative free cash flow and dampen earnings.“After this placement, some short-term investors could sell the stock and shares could trade in a range of HK$250-HK$300 for a while,” said Paul Pong, managing director at Pegasus Fund Managers Ltd. “In the medium to longer term, online platform operators like Meituan and Tencent still have a solid growth outlook.”Meituan’s focus on developing fast-growing new businesses comes as China’s economic recovery has helped the world’s largest meal-delivery service increase orders, while its hotels and travel businesses have benefited from a rebound in domestic travel when the country reined in the pandemic.The company has begun using self-driving vehicles for grocery delivery in the Chinese capital since the Covid-19 outbreak last year, with at least 15,000 orders being completed so far, Wang Xing, the company’s chief executive officer, told analysts during a conference call in March. Wang said Meituan is also experimenting with how to deliver food using drones in the southern Chinese city of Shenzhen.Tencent is delving deeper into Meituan at a time global investors are souring on the Chinese tech sector due to heightened regulatory scrutiny. Meituan had lost some $123 billion of its value from a Feb. 17 high through Monday, pummeled by fears that Beijing’s crackdown on Jack Ma’s Internet empire will expand beyond Alibaba and Ant Group Co. to engulf other sector leaders like Tencent and Meituan.“They are going into new areas including group purchases and those need a lot of capital and they need a war chest to compete,” said Kerry Goh, chief investment officer at Kamet Capital Partners Pte. “Valuations are still pretty decent compared to a year ago.”Bank of America Corp. and Goldman Sachs Group Inc. are joint global coordinators and joint bookrunners for both the bond and equity offerings. CLSA Ltd. and UBS Group AG are also joint bookrunners for the top-up placement.(Updates Meituan’s share move in the third paragraph, adds another quote in the 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.
German automaker BMW is aiming for a quarter of its sales in China to be pure battery electric vehicles by 2025, its China chief Jochen Goller said on Monday. Around 4% of BMW China sales were electric vehicles last year.
(Bloomberg) -- Johnson & Johnson indicated that uncertainty regarding its Covid-19 vaccine could ease in coming days, as regulators review whether the shot can cause rare blood clots and inspect a factory that’s key to the drugmaker hitting its production targets.The U.S. paused use of the vaccine last week after six women who received it developed serious but rare blood clots in the brain. A panel of medical experts reviewing data on the clots could vote Friday on whether the hold should end. No additional cases of the clots have been confirmed since the pause began, according to Jason McDonald, a spokesman for the U.S. Centers for Disease Control and Prevention.“In the next couple of days we will have a very solid path forward, and we’re going to do all we can to make sure that’s a positive outcome,” J&J Chief Financial Officer Joseph Wolk said in an interview.Shares of J&J gained 2.6% at 11:22 a.m. in New York, a sign that investors expect that the vaccine could soon be returned to use in the U.S. and elsewhere.The European Medicines Agency’s safety committee warned on Tuesday that there was a link between the rare clots and the vaccine, but said the potential benefits outweigh any risk. The ruling clears a path for European Union countries to decide whether to restrict access to the shot for any patient groups. The committee recommended that a warning be added to the shot’s product information.As of April 15, some 7.7 million people in the U.S. had received the J&J shot. J&J said Tuesday that it brought in $100 million in sales for the company in the first quarter.While the J&J shot had earlier been seen as critical to the U.S. immunization program, the Biden administration has said it expects other currently available vaccines will make up for any shortfall caused by the pause. In Europe, where a wider vaccine rollout has gone more slowly, access to the J&J shot could help cover more residents and stem the spread of viral variants that have contributed to higher infection rates.Forecast on HoldNew Brunswick, New Jersey-based J&J didn’t provide a full-year forecast for vaccine sales because of uncertainty around the pause in its use, Wolk said in an interview Tuesday. J&J is offering the shot on a not-for-profit basis, at no more than $10 a dose, for the duration of the pandemic.“We don’t want to be presumptuous and perhaps maybe even offend regulators, we want that process to play out and make sure that we’re being respectful of it,” Wolk said. “Since it’s a not-for-profit construct, it’s not going to have a material impact on earnings.”This week, U.S. regulators will likely finish an inspection of an Emergent BioSolutions Inc. facility responsible for making the underlying drug substance used in the shot, said J&J Vice Chairman of the Executive Committee Joaquin Duato during a call with investors.On April 16, Emergent was told by U.S. regulators to stop work at the Baltimore facility. Some 15 million doses worth of a key ingredient in the J&J shot had to be discarded after a manufacturing mix-up. J&J executives said Tuesday that it’s too early to determine how the hurdle will affect the timing of deliveries of 100 million doses to the U.S.Read More: Emergent Factory Halt Adds to Obstacles for J&J’s Covid VaccineJ&J also said on Tuesday that it expects adjusted earnings per share this year of $9.42 to $9.57, narrowing the guidance of $9.40 to $9.60 given in January. Wall Street analysts expect $9.50 a share, on average, according to data compiled by Bloomberg. First-quarter revenue was $22.32 billion, outpacing the average analyst estimate of $21.98 billion.The company’s pharmaceutical unit continues to account for more than half its sales, as revenue in the division jumped 10% to $12.2 billion in the first quarter. Medical-device sales rose 11% to $6.58 billion.Wolk said he expects device trends to continue to improve. In the Asia Pacific region, medical devices rebounded by 70% this quarter, and he said that other regions will follow suit. “Elective surgeries seem to be a little bit soft yet in terms of the market,” he said.But consumer sales slipped 2.3% year-over-year to $3.54 billion. Within consumer health, J&J saw sales decline in over-the-counter products driven by comparisons with last year’s pantry loading and a weaker cough, cold and flu season.Overall, J&J reported first-quarter adjusted earnings per share of $2.59, up from $2.30 a year earlier. It also boosted its dividend on Tuesday by 5%, from $1.01 a share to $1.06 a share.(Updates 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.
Overstock CEO Jonathan “JJ” Johnson says he's hoping that one day tZero, a much smaller trading platform that offers some services similar to Coinbase, will be a legitimate rival to the crypto behemoth that just listed on the Nasdaq Inc. last Wednesday with a valuation that briefly hit around $100 billion.
A group of Democratic Senators, led by Elizabeth Warren (D-MA) and Raphael Warnock (D-GA), sent a letter urging the Education Department (ED) to restore defaulted student loans to on-time status amid the ongoing payment pause, Yahoo Finance has learned.
The office-sharing provider will hold the cryptocurrency on its balance sheet and pay landlords and third-party partners in crypto.
USD/CAD failed to settle below 1.2500 and is trying to settle above the resistance at 1.2525.
Dogecoin briefly replaced XRP as the fourth-largest coin early Monday.
The Dogecoin faithful have declared April 20 “Doge Day,” but on Wall Street, having your own ‘day’ is no guarantee of legitimacy or longevity.
The commercial aerospace giant raised its retirement age for CEO Dave Calhoun, 64, and announced that 54-year-old CFO Greg Smith is retiring.
Cannabis stocks tumbled across the board on Tuesday, reversing their premarket gains, as the initial boost offered by the passage of a banking bill by the House late Monday gave way to uncertainty about its likely fate in the Senate.
The new week kicked off on a negative note, as all 3 major indexes pulled back from record highs. After applauding recent strong economic data, the worsening global coronavirus situation appeared to have soured investor sentiment. But according to Goldman Sachs chief US equity strategist David Kostin, investors shouldn’t get too worked up. The overall trend remains upward, and Kostin points out that volatility – the difference between the high and low points in the market – is down. He sees the relative predictability of policy, now that the election is decided and behind us, as more definitive for near-term performance. "Low volatility has outweighed low correlations among stocks, driving return dispersion back below the long-term average. As the U.S. moves beyond key macro events such as the 2020 election, the $1.9 trillion fiscal stimulus package, and peak economic activity, we expect three defining themes for markets will be tax reform, infrastructure, and pricing power," Kostin opined. Taking Kostin’s outlook into consideration, Goldman Sachs analysts are pounding the table on two stocks, noting that each could double or more in the next year. Using TipRanks’ database, we found out that the rest of the Street is also on board, as each boasts a “Strong Buy” consensus rating. DigitalOcean Holdings (DOCN) We’ll start in high-tech, where DigitalOcean is a mid-size fish among the giants of the sea. The company offers cloud computing services for developers, small- to mid-size businesses, and startups. DigitalOcean can’t compete with the likes of Amazon or Microsoft on scale, so the company has promoted simplicity as a virtue. The move has brought a measure of success; DigitalOcean claims over 570,000 customers globally, and boasted, at the end of 2020, $357 million in annual recurring revenue along with 25% year-over-year revenue growth. The company operates 14 data centers, located in the US and Canada, in the UK, Germany, and the Netherlands, and in India and Singapore. All of that adds up to a solid foundation, and DigitalOcean capitalized on it in the most direct way possible recently. The company entered the public markets, holding its IPO on March 24 of this year. The shares were priced at $47, and the company raised ~$775 million. Analyst Christopher Merwin saw fit to initiate coverage of this stock for Goldman Sachs with a Buy rating and a $101 price target. At current levels, this target suggests a one-year upside of 143%. (To watch Merwin’s track record, click here) "While we believe some investors are applying a discounted valuation to DigitalOcean due to lower gross margins, we think that approach is overly-punitive, as Digital Ocean has very efficient sales & marketing motion. In fact, sales & marketing spend was just 10% of revenue in 2020, largely due to a highly-efficient self-service go to market motion and developer community which helps to lower the cost of customer acquisition," Merwin opined. The analyst summed up, "With a stronger growth and margin profile, we therefore believe that DigitalOcean should trade at a premium to the mid-growth peer set." In its short time on the public markets, DOCN has picked up 10 reviews. These include 8 Buys and 2 Holds, making the analyst consensus rating a Strong Buy. The shares are priced at $41.50 with an average target of $58.20, making the upside potential 40% in the next 12 months. (See DOCN stock analysis on TipRanks) Apellis Pharmaceuticals (APLS) Shifting gears, we’ll look at Apellis, a biopharma company with a unique niche. Apellis focuses on C3 therapies, aiming to correct overactivation of the complement cascade, a part of the immune system. The complement cascade, or complement, clears away damaged cells, promotes inflammation, and attacks the cell membrane of pathogens. These activities are handled by a series of small proteins in sequence; Apellis targets C3, to control an overactive complement system. C3 is the central component of the cascade, and targeting it addresses three possible pathways for disease conditions. Apellis’s approach has potential applications across a wide range of medical fields, including hematology, nephrology, neurology, and ophthalmology. The company’s pipeline features one drug candidate, pegcetacoplan, with a wide range of applications. The drug acts directly on C3, and its targeted use was recently shown efficacious by positive Phase 3 data in a trial targeting the rare blood disease paroxysmal nocturnal hemoglobinuria (PNH). In addition to studying pegcetacoplan’s use for PNH, Apellis has five other clinical research projects ongoing for the drug candidate. The PNH study is the most advanced, however, and marketing applications for the drug – in the treatment of PNH – are under review by both the FDA and the European Medicines Agency (EMA). The PDUFA date for action by the FDA is May 14 of this year. The top line results from the Phase 3 PRINCE study, using the drug to treat PNH patients, are expected in 2Q21. Among pegcetacoplan’s other applications, the geographic atrophy (GA) Phase 3 study is ongoing, with results expected in the third quarter of this year. Looking ahead, Apellis expects to bring three new drug candidate programs into clinical development by the end of next year. In his coverage of this stock for Goldman Sachs, 5-star analyst Madhu Kumar sees the pegcetacoplan projects as the key here. We view APLS as a story of two independent franchises based on the complement C3 cyclic peptide inhibitor pegcetacoplan. While systemic pegcetacoplan has already provided clinical POC in PNH in the Phase 3 PEGASUS trial, the results of which we believe should support the drug’s approval at the May 14, 2021 PDUFA date, the larger question this year is whether IVT pegcetacoplan will succeed in the potentially considerable market (we model peak risk-adjusted sales of $4.8B) of geographic atrophy (GA) in the Phase 3 DERBY/OAKS trials, for which top-line data are expected in 3Q21," the analyst said. Kumar continued, "Overall, we believe Apellis provides an intriguing risk-reward profile heading into these 3Q21 data not because we are convinced in IVT pegcetacoplan’s success... but because we believe the potential upside with success is substantial while downside risk from failure is limited." Kumar’s Buy rating comes with a $130 price target, implying a robust 185% one-year upside to the stock. (To watch Kumar’s track record, click here) Overall, this stock gets a firm seal of approval from Wall Street, with a Strong Buy consensus rating based on 7 Buys vs. 1 Hold. Shares in APLS are trading for $45.64, and have a $73.67 average target that indicates room for 61% appreciation in the coming year. (See APLS stock analysis on TipRanks) To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights. Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
Shares of FuelCell Energy Inc. slumped toward a four-month low, after Wells Fargo analyst Praneeth Satish started coverage of the fuel cell technology company with the equivalent of a sell rating, citing relative concerns regarding commercialization and valuation.
Just last Friday, the S&P 500 had closed at a record high. This week, the index can’t seem to find its footing.
(Reuters) -Harley-Davidson Inc on Monday raised its full-year earnings forecast after smashing analysts' quarterly profit estimates, vindicating Chief Executive Jochen Zeitz's decision to focus on more-profitable touring bikes at the expense of cheaper entry-level models. The company, however, also received a setback in the European Union - its second-biggest market - where all of its products, regardless of origin, will be subjected to a 56% import tariff from June following a new EU ruling. The ruling revokes the credentials that currently allow Harley to ship certain motorcycles to the EU from its international manufacturing facilities at a 6% tariff.
Rebates required under Obamacare could put hundreds of dollars back in your pocket.