SmileDirect Club has responded to NBC’s investigative report, which ran last week and called into question the safety of SmileDirectClub’s customers. Yahoo Finance’s Seana Smith and Brian Sozzi discuss the details on The First Trade.
SmileDirect Club has responded to NBC’s investigative report, which ran last week and called into question the safety of SmileDirectClub’s customers. Yahoo Finance’s Seana Smith and Brian Sozzi discuss the details on The First Trade.
(Bloomberg) -- China’s economy strengthened in the first quarter of the year as consumer spending rose more than expected, putting it on course to join the U.S. as twin engines for a global recovery in 2021.Gross domestic product climbed 18.3% in the first quarter from a year earlier, largely in line with the 18.5% predicted in a Bloomberg survey of economists, though that record-breaking figure was mainly due to comparisons with a year ago when much of the economy was shut due to coronavirus. Retail sales beat expectations while industrial output growth moderated.The latest data puts China on course to grow well above its annual target of more than 6%, supporting the view that China and the U.S., where economists predict 6.2% growth, will both outperform other major nations this year. China’s recovery hasn’t yet plateaued after it became the first major economy to contain the spread of coronavirus and return to growth, with GDP rising 0.6% in the first three months of 2021 from the previous quarter.How Much of China’s GDP Was Made in America?: Daniel MossThe recovery last year was led by strong investment in real estate and infrastructure spurring demand for industrial goods, while overseas orders for medical goods and electronic devices fueled exports. Consumer spending had lagged, but the latest figures showed a turnaround. Retail sales growth was 6.3% in March when calculated on a two-year average growth basis -- which removes distortions created by last year’s lockdowns -- up sharply from the rates seen last year.“We are seeing a bit more balanced recovery in the Chinese economy,” Wang Tao, chief China economist at UBS AG, said in an interview with Bloomberg TV. “That early pickup in construction industry is going to give way to more household consumption,” she added. Consumer spending at restaurants and sales of discretionary goods such as jewelry, alcohol and tobacco led the growth of retail sales in March.The economy was also boosted by a jump in investment from overseas. Inbound investment into China rose almost 40% to $45 billion in the first three months of 2021, according to data from the Ministry of Commerce released Thursday. That was the highest for that period in comparable data back to 2002.Markets were choppy following the data release but ended the day little changed, with the benchmark CSI 300 Index paring an earlier loss of as much as 0.6% to finish up 0.35% for the day. The yield on benchmark 10-year sovereign debt fell slightly to 3.16%. The onshore yuan was unchanged on the day at 6.5226 per dollar.Broadening out the recovery remains a work in progress with growth in the first quarter still reliant on the property sector. Fixed-asset investment in real estate rose 7.6% on a two-year average growth basis and infrastructure spending increased roughly in-line with pre-pandemic rates. Quarterly steel production of 271 million tons suggests that annual output is on course to top 1 billion tons for the second year running.What Bloomberg Economics Says...The undershoot in GDP growth relative to expectations and lopsided nature of the recovery do not warrant any economy-wide shift in monetary policy, in our view.Looking forward, production is poised to start peaking, while demand should pick up further. This should add more balance in what looks to be a steady recovery ahead.Chang Shu, chief Asia economistFor full report, click hereAlthough Beijing has promised “no sharp turns” in monetary and fiscal support this year, some prominent economists have warned that premature tightening could still put the recovery at risk. The central bank has asked banks to curtail loan growth in coming months as it seeks to control credit to curb asset bubbles. Alongside the investment data, data showing home prices grew at the fastest pace in seven months in March will likely prompt more action by Chinese policy makers to rein in the sector.“Considering the robust recovery, we certainly do not expect Beijing to step up easing measures, but it is also unlikely to make a sharp shift in its policy stance,” Nomura economists led by Lu Ting wrote in a note. Authorities have learned lessons from a “forceful deleveraging campaign” in 2017-18, which led to bond defaults, a stock market selloff and weaker growth, they said.The statistics bureau said Friday inflation is expected to remain in a moderate range this year, and while rising commodity costs could boost domestic prices, there’s no basis for prices in upstream sectors to rise significantly.“The economy is far from overheating,” said Bruce Pang, head of macro and strategy research at China Renaissance Securities Hong Kong Ltd. “The consumer sector doesn’t have a solid basis for overheating, and I don’t think the central bank will take a faster turn for monetary policy.”Bloomberg Economics forecasts global GDP growth of 6.9% in 2021, rapid enough to bring output substantially back onto its pre-Covid path. Data released Thursday showed the U.S. economy’s comeback is firing on all cylinders, with retail sales exceeding pre-pandemic levels in all categories except restaurants. Production at U.S. factories increased in March by the most in eight months.China has rapidly accelerated its vaccination campaign over the past month in a move that should help bolster spending on services. A recovery in major economies fueled by vaccine roll-outs and the Biden administration’s massive fiscal stimulus is expected to sustain rapid growth in Chinese exports this year.Economists have upgraded their forecasts for China’s growth in recent days: Bloomberg Economics expects 9.3% expansion, ING Groep NV economist Iris Pang predicts 8.6% and Nomura sees 8.9%.“We expect the economy to continue to gain momentum in the second quarter, with a rotation in terms of the drivers of growth compared to last year,” said Louis Kuijs, head of Asia Economics at Oxford Economics Ltd. in Hong Kong. “Less generous fiscal and monetary policy will weigh on infrastructure and real estate investment, while improved profitability and confidence should buoy corporate investment and consumption.”(Updates with foreign investment data.)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 approval comes just over two months after Canada approved its first bitcoin ETF.
CCEP sweetened its takeover offer in February to A$13.5 per share from A$12.75 after reports that Amatil's major shareholders viewed the earlier offer as too low. The deal, which would be Australia's biggest this year, will combine two companies that bottle and distribute Coca-Cola drinks, and gives CCEP a platform to consolidate in Asia.
WASHINGTON (Reuters) -Taiwan and Thailand risk joining Vietnam and Switzerland in running afoul of U.S. currency manipulation triggers in Treasury Secretary Janet Yellen's first foreign exchange report, expected this week, but whether she applies that label is unclear. The Biden administration has sought to engage more constructively with trading partners and allies, and currency experts say that Yellen could veer from the aggressive approach applied by the Trump administration in the currency report, taking into account the trade and capital flow distortions of the coronavirus pandemic and reviewing the structure of the report.
(Bloomberg) -- Europe’s auto sales soared last month from a depressed level a year ago, making up for a dismal start to the year even as virus-related restrictions persisted in key markets.New car-registrations rose 63% in March, the European Automobile Manufacturers’ Association said Friday. The gains erased an early-year decline to leave sales up 0.9% for the quarter.While automakers are benefiting from easy comparisons to a year ago, when countries were locking down to contain the spread of Covid-19, last month’s sales stack up well even relative to pre-pandemic. The 1.39 million vehicles registered was the highest since June 2019.Carmaker shares advanced on sales regaining momentum and Daimler AG reporting better-than-expected earnings for the first quarter. The Mercedes-Benz maker cited strong sales in all major regions.The Stoxx Europe 600 Automobiles & Parts Index climbed 1.5% in early trading, led by gains for Volkswagen AG, parts maker Continental AG and Daimler.Consumers returning to dealerships are a welcome development for the industry after months of Europe’s car market lagging behind rising sales seen in China and the U.S. Carmakers’ concerns have shifted dramatically from demand to supply issues, with the global chip shortage hampering production for the likes of VW, Stellantis NV and Renault SA.“Only the critical global supply situation for various semiconductor categories currently has a limiting effect on this upswing,” VW Chief Executive Officer Herbert Diess said at the Hannover Messe trade fair Thursday.March tends to be a seasonally strong time of year for Europe’s auto industry, so registrations were still about 13% below what the industry averaged for the month in the decade before the pandemic, according to the ACEA.While Italy -- the epicenter of Europe’s initial virus outbreak -- saw sales rise almost 500% last month, they remained 12% below 2019 levels as virus-related measures curb economic activity.Carmakers have been coping with restrictions by moving sales processes online and taking advantage of government subsidies for electric vehicles. Economic forecasters have said the continent’s growth prospects rest on a vaccination program that started slowly but has begun to accelerate.Even as many areas slowly return to normal, carmakers are benefiting from health concerns about using public transport or ride-hailing services during the pandemic.Among Europe’s five largest markets, sales rose 29% and 21% in Italy and France in the first quarter. Registrations fell 15% in Spain, 12% in the U.K. and 6.4% in Germany.The industry witnessed historic consolidation during the quarter, with France’s PSA Group merging with Italian-American carmaker Fiat Chrysler to form Stellantis. About 47% of vehicles registered in the first three months of the year were VW or Stellantis models.(Updates with shares, Daimler earnings in 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.
(Bloomberg) -- Morgan Stanley surprised investors with a $911 million loss tied to the collapse of Archegos Capital Management, staining what was otherwise a record quarter for revenue and profit.“The current quarter includes a loss of $644 million related to a credit event for a single prime brokerage client, and $267 million of subsequent trading losses through the end of the quarter related to the same event,” Morgan Stanley said Friday in its first-quarter earnings statement.The hit was related to Archegos, Chief Executive Officer James Gorman said on a call with analysts. The CEO called the matter a “very complex event,” and said he was pleased with how the company handled it.The firm’s philosophy is to “cauterize bad stuff” and deal with it as quickly as possible, Gorman said. Archegos won’t change how Morgan Stanley views its prime-brokerage business, but it will be looking hard at certain types of family offices and the adequacy of their financial disclosures, he said.The Archegos hit leaves Morgan Stanley as the only major U.S. bank to be nursing losses from the flameout of Bill Hwang’s family office. The New York-based bank was one of the early backers of Archegos despite the legal taint tied to Hwang, who was previously accused of insider trading and in 2012 pleaded guilty to wire fraud on behalf of his predecessor hedge fund, Tiger Asia Management.“This amount is material and should have been disclosed earlier, especially given the degree of attention prior to earnings,” Mike Mayo, an analyst at Wells Fargo & Co., said in a note to clients. “We expect more from Morgan Stanley when it comes to governance, and are incrementally concerned about complacency based on the tone from today’s conference call.”Shares of the company fell 3.4% to $78.05 at 1:57 p.m. in New York, paring this year’s gain to 14%The Archegos collapse rattled investment banks across continents, with Credit Suisse emerging as the worst hit with almost $5 billion in losses from its exposure to the family office.In the wake of Archegos, Morgan Stanley’s equity traders gave up their No. 1 spot, falling behind Goldman Sachs Group Inc. and JPMorgan Chase & Co., which posted big trading wins earlier this week off a wild quarter for markets.Equities-trading revenue at Morgan Stanley nevertheless rose 17% to $2.88 billion, compared with the $2.6 billion average estimate of analysts surveyed by Bloomberg. Goldman Sachs and JPMorgan have been clawing away at Morgan Stanley’s lead in that business, but until now the firm has managed to stay ahead of the pack. Both rivals posted equities revenue in excess of $3 billion for the quarter.Gorman’s PayIn January, Gorman leaped past JPMorgan’s Jamie Dimon as the best-paid CEO of a major U.S. bank, after being awarded $33 million for the firm’s performance in 2020 while running a firm that’s a third the size of JPMorgan.One reprieve for Gorman’s firm was the timing of the fund’s blowup. In any other quarter, the losses would have stood out more starkly. Instead, the hit came at a time when the bank and all its major peers have smashed one record after another, helping dull the pain.“Such a shame we have to talk about the” Archegos hit, given the strong results throughout the rest of the firm, Glenn Schorr, an analyst at Evercore ISI, said in a report titled, “Other Than That, It Was a Great Quarter, Mrs. Lincoln.”Fixed-income trading revenue at Morgan Stanley rose 44% to $2.97 billion, compared with the $2.2 billion analysts were predicting before earnings season kicked off.Morgan Stanley’s investment bankers pulled in $2.61 billion in fees, compared to the $2 billion analyst estimate, as equity underwriting quadrupled. The quarter proved particularly lucrative with the continued explosion in blank-check companies, better known as SPACs, as well as public offerings from technology companies.Banks are also having to fend off fierce demand for their top talent, with venture-capital firm General Catalyst this month luring away Paul Kwan, Morgan Stanley’s head of West Coast technology investment banking.Wealth-management revenue totaled $5.96 billion, up from $5.68 billion in the previous quarter.The acquisition of E*Trade last year also proved timely, as average daily trading surged in the first quarter, well above its fourth-quarter record. The firm also announced the completion of the Eaton Vance takeover last month, adding another business likely to throw off consistent fee-based revenue.(Updates with analyst’s comment in sixth 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.
Grab Holdings, Southeast Asia's ride-hailing to delivery giant, is considering a secondary listing in its home market of Singapore after completing a Nasdaq listing via a $40 billion SPAC merger, three sources familiar with the matter said. Listing on Singapore Exchange would enable Grab to have an investor base close to where its regional business is based, the people said, potentially offering its customers, drivers and merchant partners easier access to trade its shares. Grab, a household name across Southeast Asia, is in the early stages of considering a secondary listing in the city-state, said the sources, who declined to be identified as they were not authorised to speak about the matter.
Gold is rallying because U.S. Treasury yields are trading lower, despite strong weekly jobless claims and booming monthly retail sales data.
The direction of the NZD/USD on Thursday is likely to be determined by trader reaction to the short-term Fibonacci level at .7145.
(Bloomberg) -- Dieter Wemmer, a veteran insurance executive who was chief financial officer at Allianz SE, is launching a blank-check company to target deals in the sector where he worked for more than three decades, people familiar with the matter said.Wemmer plans to raise about 250 million euros ($300 million) on the Amsterdam stock exchange in May, the people said, asking not to be identified discussing confidential information. He’s teaming up with Murray Wood and Santiago Corral, co-owners of insurance-focused investment firm Nazare Capital, to create the SPAC.The executives have begun speaking with potential investors, the people said. They’re considering seeking targets among technology players in the insurance space, the people said. Wemmer, who’s a German national, will be executive chairman of the SPAC while Wood will serve as its chief executive officer, according to the people.Bank of America Corp. is advising on the SPAC, the people said. Wemmer and a representative for Bank of America declined to comment, while a spokesperson for Nazare couldn’t be reached for comment.There’s an active market for insurance mergers and acquisitions. Low interest rates and outdated technology systems are leading insurers, particularly those offering property and casualty cover, to look at restructurings or buying companies that offer tech they don’t have.Blank-Check FrenzyA veteran of European finance, Wemmer worked at Allianz until 2017 and previously held the CFO role at Zurich Insurance Group AG, where he joined the industry in 1986. He still has board positions at Swiss bank UBS Group AG and Danish renewables giant Orsted A/S. Last year, Wemmer teamed up with activist investor Elliott Management Corp. to push for change at Dutch insurer NN Group NV.He joins a growing cohort of financiers from the region in jumping into the SPAC frenzy, which has been spreading from the U.S. to Europe. Former bank CEOs Jean Pierre Mustier, Martin Blessing and Tidjane Thiam are among those working on blank-check companies this year.These vehicles raise investor money in the equity markets to fund takeovers of privately-held targets and have become firmly established among corporate chieftains, politicians and celebrities, with many launching multiple SPACs.More than 300 blank-check companies globally have completed IPOs this year to raise a combined $101.7 billion, according to data compiled by Bloomberg. That’s already more than last year’s record annual haul.Despite a recent uptick in Europe, the trend is just starting on the continent and the U.S. is still the dominant venue for such listings. Four blank-check have gone public through IPOs on European exchanges so far this year to raise $1.5 billion, about triple the amount raised in the whole of 2020, according to data compiled by Bloomberg.(Adds insurance industry detail 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.
(Bloomberg) -- Russian markets trimmed losses as investors speculated that the impact of long-awaited U.S. debt sanctions would be milder than feared.Benchmark ruble bonds pared declines, leaving the yield up the most since September. The White House barred U.S. financial institutions from buying new Russian bonds, a step that potentially leaves the secondary market unaffected. The ruble and stocks also clawed back losses.The growing threat of bond sanctions had been weighing on investor confidence in Russia for months and Thursday’s announcement came after a massive troop buildup on the border with Ukraine. JPMorgan Chase & Co. cited Russia’s spiraling tensions with the West as one of the reasons for cutting its recommendation on emerging-market currencies to underweight.“Some of the uncertainty has gone,” said Dmitry Polevoy, an analyst at Locko-Invest. “Ultimately, it all depends how it’s interpreted by the compliance departments of U.S. banks and, more importantly, investors in other jurisdictions.”A senior Russian official, speaking on condition of anonymity to discuss matters that aren’t public, called the new debt restrictions the least painful option since they don’t affect the secondary market.Despite a sharp selloff when markets opened in Moscow, the ruble and local bonds are still stronger in the week. Markets rallied after U.S. President Joe Biden proposed a face-to-face meeting in a phone call with Russia’s Vladimir Putin on Tuesday.Russian officials have long said debt curbs won’t seriously hurt the government’s ability to fund itself as local banks and non-U.S. investors could step in to replace those forced to sell. State lender VTB Bank PJSC bought more than 70% of the local notes on offer in Wednesday’s debt sales, which saw a record placement equivalent to almost $3 billion.Foreigners now hold about a fifth of the so-called OFZ debt, worth roughly $37 billion.By targeting the primary market for government ruble debt, the U.S. has found “a way to test the waters,” said Elina Ribakova, deputy chief economist at the Institute of International Finance in Washington.“There is a lot of plumbing we do not understand, so even if there is a plan to move to the secondary market, one wants to do so gradually”Market Snapshot:Yields on Russia’s 10-year ruble bonds were up 13 basis points at 7.17% as of 4:31 p.m. in Moscow, set for the biggest increase since SeptemberThe ruble traded 0.9% weaker at 76.5350, paring a drop of as much as 2.1%Russia’s benchmark MOEX stock index retreated 0.7%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.
Dogecoin was worth as much as $55 billion on Friday, nearly tripling on the day. At current levels, it’s worth about as much as Ford and Marriott.
The three main Wall Street indexes ended Friday higher for the day and week, with the S&P 500 and the Dow breaking closing records, as investors took strong economic data and bank earnings as signs of momentum in the U.S. pandemic recovery. Nine of the 11 S&P sub-sectors rose on Friday. The energy and information technology indexes were the exceptions.
Citibank has hinted there won't be any possible layoff and closure of physical branches in the countries it is exiting.
One analyst has an idea about what’s behind this week’s downturn. Shares of (NIO) (ticker: NIO), (XPEV) (XPEV), and (LI) (LI), fell about 5%, 10%, and 15%, respectively, this week. The S&P 500 and Dow Jones Industrial Average both rose more than 1% this past week.
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.
The IRS chief tells Congress the child tax credit payments will arrive on time after all.
The third-most profitable company in the world wants to finance billions of dollars in payments to its suppliers, according to people familiar with the proposal.
(Reuters) -Citigroup Inc trounced first-quarter profit expectations, thanks to a rebound in the broader economy and a jump in investment banking activity, and said it will exit some overseas businesses as new chief executive Jane Fraser starts to make her mark on the country's third-largest lender. Citigroup's share price was broadly flat in afternoon trading. "Our first impression is the incoming CEO Jane Fraser is striking the right cord on messaging a sense of urgency to undertake strategic changes that enhance the profitability profile," UBS analyst Saul Martinez wrote in a note.
Chamath Palihapitiya By Jarrett Banks and John Jannarone Short interest in Chamath Palihapitiya-backed Clover Health Investments Corp. (Nasdaq: CLOV) is at 150%, data compiled by financial analytics firm S3 Partners shows. The level is reminiscent of the huge short interest in GameStop Corp. that was followed by a retail trading frenzy in January when the […]