Feb.08 -- Bloomberg Opinion columnist Timothy O’Brien speaks on Bloomberg Television about Donald Trump's finances, the potential risk to national security, and the outlook for the historic Senate impeachment trial. O’Brien’s opinions are his own.
Feb.08 -- Bloomberg Opinion columnist Timothy O’Brien speaks on Bloomberg Television about Donald Trump's finances, the potential risk to national security, and the outlook for the historic Senate impeachment trial. O’Brien’s opinions are his own.
President Biden's nominees for attorney general, health and human services secretary, interior secretary, CIA director and U.S. trade representative will testify before Senate committees next week.The big picture: Biden wants known, trusted people around him, many from the Obama administration, to help implement his policies and turn away from the tumultuous Trump years.Stay on top of the latest market trends and economic insights with Axios Markets. Subscribe for freeScheduleNo upcoming hearingsConfirmed Cabinet membersAvril Haines, confirmed as director of national intelligence on Jan. 21. Retired Gen. Lloyd Austin, confirmed as defense secretary on Jan. 22. Janet Yellen, confirmed as treasury secretary on Jan. 25. Antony Blinken, confirmed as secretary of state on Jan. 26. Pete Buttigieg, confirmed as transportation secretary on Feb. 2. Alejandro Mayorkas, confirmed as secretary of homeland security on Feb. 2.Denis McDonough, confirmed as veterans affairs secretary on Feb. 8. Tom Vilsack, confirmed as agriculture secretary on Feb. 23. Linda Thomas-Greenfield, confirmed as UN ambassador on Feb. 23. Jennifer Granholm, confirmed as energy secretary on Feb. 25.Miguel Cardona, confirmed as education secretary on March 1.Nominees pending confirmation voteGina Raimondo, nominee for commerce secretary.Marcia Fudge, nominee for housing and urban development secretary.Cecilia Rouse, nominee to lead the Council of Economic Advisers.Michael Regan, nominee for administrator of the Environmental Protection Agency. Marty Walsh, nominee for labor secretary. Isabel Guzman, nominee for small business administrator. Merrick Garland, nominee for attorney general.Xavier Becerra, nominee for health and human services secretary.Deb Haaland, nominee for interior secretary.William Burns, nominee for CIA director.Katherine Tai, nominee for U.S. trade representative.This page will be updated as more hearings are scheduled.Go deeper: Biden finalizes full slate of Cabinet secretariesLike this article? Get more from Axios and subscribe to Axios Markets for free.
(Bloomberg) -- International bond issuance from the Balkans is dwarfing sales from bigger countries in Eastern Europe.North Macedonia is the latest addition to a widening stream of sovereign issuance from the Balkan region, offering seven-year euro bonds on Wednesday, according to a person familiar with the deal who asked not to be named as they are not authorized to speak publicly. Earlier deals from Slovenia, Serbia and Croatia have pushed the region’s international debt sales this year to more than half of the full-year average since 2010.Meanwhile, more developed countries further north, such as Poland, Hungary and the Czech Republic, are turning away from Eurobonds as they have deep domestic markets to tap into.The growing discrepancy is an extension of an almost decade-long trend. Foreign issuance from the Balkans has topped $10 billion every year since 2011, while sales from Poland, Hungary and the Czech Republic have been falling, barring a spike last year to help fund Covid-19 relief efforts.One reason for the shift is a turn toward debt self-sufficiency in Hungary and Poland, where borrowing in foreign currencies -- both by the state and households -- has left scars on the economy. With economic output more than double the Balkans, domestic saving rates are higher and more mature central banking has allowed officials to turn to asset-purchase programs to help fund budgets.North Macedonia is offering a benchmark-size bond due March 2028 at around 230 basis points above midswaps, according to the person. Slovenia has issued 2.5 billion euros ($3 billion) of debt in two transactions this year, Croatia priced 2 billion euros, and Serbia 1 billion euros.“Issuance on international markets is preferred by Balkan countries because their less-developed local capital markets do not allow for raising such big amounts of capital,” said Anton Hauser, a money manager at Erste Asset Management in Vienna. For investors, the “higher-yielding debt issued by Balkan countries is a kind of substitute for bonds issued by central European countries, which nowadays offer much lower yields,” he said.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 US dollar has rallied significantly on Tuesday to reach towards the ¥107 level. At this point, it is obvious that we are trying to change the overall trend.
Why should you be paying closer attention to global bond yields? Because that is what the major central banks are watching and they control the money.
(Bloomberg) -- Brazos Electric Power Cooperative joined a rare club of investment-grade companies that filed for bankruptcy after the Texas power firm collapsed under a brutal winter storm, highlighting the growing risk of climate change.In Wall Street parlance, they’re known as “failing angels,” a play on the more common “fallen angels” tag for debt issuers that get downgraded to junk. In those cases, managers still have time to turn things around, and investors who can’t tolerate the risk have months or years to get out. For companies like Brazos that get caught in sudden calamities, the fall from grace can be a matter of days.Brazos -- which carried an A+ grade from Fitch Ratings -- would be the first failing angel since PG&E Corp., which went bankrupt in 2019 to manage more than $30 billion in liabilities from the California wildfires. While both companies saw their fiscal woes fueled by extreme weather, previous failing angels have been connected to wider financial crises or individual scandals.The California wildfires were a known risk for PG&E, but the prolonged freeze and energy crisis was a surprise for Brazos. Investors and credit raters likely will need to pay more attention to such scenarios in the future, according to Bloomberg Intelligence credit analyst Jaimin Patel.“Surprise events like this make everyone more cognizant of the potential risk involved with utilities,” which are typically considered safe investments, he said in an interview.Brazos became a failing angel Monday after seeking Chapter 11 in Houston to address an estimated $2.1 billion in electricity charges stemming from last month’s freeze, which decimated the otherwise robust balance sheet of the Waco-based generation and transmission company.Black SwanFitch said in a June report that Brazos did business in a “low operating risk” environment with low energy costs. Nevertheless, the company said it had “no choice” but to file for bankruptcy because the charges it owed to the Texas electricity grid operator far outpaced available liquidity.“Brazos Electric will not foist this catastrophic ‘black swan’ financial event onto its members and their consumers,” the company wrote in court documents.Climate-change risk is becoming increasingly relevant to investors, banks and ratings firms due to the potential for catastrophic damage and economic losses. Companies have $7.2 trillion of debt with “high inherent exposure to physical climate risks,” like wildfires or storms, out of $79 trillion of debt with credit risk linked to the environment, according Moody’s Investors Service.The ratings firm said environmental effects are becomingly increasingly important to how it grades companies. Electric Reliability Council of Texas, the grid operator in the state, said last week it had started to see defaults stemming from February’s storm, which forced nearly half of power-plant capacity offline and left more than 4 million in the dark for days.Companies seeking financing may soon feel pressure on the topic from some of their biggest would-be creditors. BlackRock Inc. recently said it preferred to invest in developed areas due to their efforts to address climate change, while Citigroup Inc.’s new chief executive officer, Jane Fraser, is pledging to achieve net-zero greenhouse-gas emissions in its financing activities by 2050.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) -- Stocks climbed as confidence returned to markets, with investors shaking off concern about the impacts of higher Treasury yields.In a broad-based rally, the S&P 500 notched its biggest advance in almost nine months, the Nasdaq Composite jumped 3% while the Russell 2000 of small caps outperformed. GameStop Corp. added to last week’s surge of over 150%, with retail investors promoting the stock on social-media platforms such as Reddit and StockTwits. After the close of regular trading, Zoom Video Communications Inc. soared as its revenue forecast topped Wall Street’s estimates.Read: Stock Bulls Have Stopped Pretending to Care About Balance SheetsLonger-dated Treasuries resumed their selloff even as intermediate maturities found support, with traders priming themselves for how Federal Reserve officials slated to speak this week might respond to the recent tumult. Investors piled back into risk assets as stocks rebounded following a rout that was triggered by concern that massive stimulus as well as progress in battling the coronavirus have left some areas of the economy at risk of possibly overheating. The S&P 500 extended a rally from its March 2020 lows to about 75%.“Equity investors are still looking at the rise in rates mostly as ‘a good thing’ and not yet as a threat, notwithstanding some shaking of the tree in high multiple stocks and other parts of the market last week,” wrote Peter Boockvar, chief investment officer at Bleakley Advisory Group. “The benefits of the vaccines versus the challenge of higher rates will be the theme this year.”Read: Investors Poured Record $86 Billion Into Equity ETFs in FebruaryBitcoin rallied after a volatile weekend session, riding a broad resurgence in risk assets and a bullish report from Citigroup Inc. The bank’s strategists laid out a case for the digital asset to play a bigger role in the global financial system, saying the cryptocurrency could become “the currency of choice for international trade” in the years ahead.There are some key events to watch this week:U.S. Federal Reserve Beige Book is due Wednesday.OPEC+ meeting on output Thursday.U.S. factory orders, initial jobless claims and durable goods orders are due Thursday.The February U.S. employment report on Friday will provide an update on the speed and direction of the nation’s labor market recovery.These are some of the main moves in markets:StocksThe S&P 500 Index surged 2.4% as of 4 p.m. New York time.The Stoxx Europe 600 Index climbed 1.8%.The MSCI Asia Pacific Index advanced 1.8%.The MSCI Emerging Market Index rose 1.7%.CurrenciesThe Bloomberg Dollar Spot Index dipped 0.1%.The euro declined 0.2% to $1.2046.The Japanese yen depreciated 0.2% to 106.78 per dollar.BondsThe yield on 10-year Treasuries rose two basis points to 1.43%.Germany’s 10-year yield sank seven basis points to -0.33%.Britain’s 10-year yield declined six basis points to 0.759%.CommoditiesWest Texas Intermediate crude declined 1.8% to $60.40 a barrel.Gold fell 0.6% to $1,723.42 an ounce.Silver dropped 0.6% to $26.51 per ounce.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) -- The European Central Bank “can and must react against” any unwarranted rise in bond yields that threaten to undermine the euro-area economy, policy maker Francois Villeroy de Galhau said.The comments by the Bank of France governor, among the strongest yet by ECB officials, encouraged investors to bet that the central bank is already stepping up its own emergency bond-buying program. While fresh data on Monday showed net purchases slowing last week, it said the figures were distorted by redemptions.The yield on 10-year Italian debt fell 10 basis points to 0.66%, its biggest decline since June.Yields are being pushed up by a global selloff of longer-term government bonds. That’s a concern for the euro zone because returns on sovereign debt are used by lenders as a reference point for their loans to companies and households.The bloc is lagging well behind the U.S. and U.K. in vaccinations, forcing it to extend virus restrictions that hurt the economy. ECB officials have been pledging for a week that they’ll act if needed, yet they’ve barely managed to stem the selling.Villeroy said part of the recent tightening of financial conditions is due to “excessive spillovers and tensions.” The ECB should start by using its pandemic emergency bond-buying program to drive down yields, he said, and “we continue to stand ready to adjust all of our instruments, as appropriate, including possibly a lowering of the deposit rate if needed.””Villeroy’s statement voices the sentiment of most analysts after last week’s events: with the euro-zone growth outlook being weighed down by slow vaccine distribution, the ECB must avoid undue policy tightening,” said Simon Harvey, senior analyst at Monex Europe. “However, talk is cheap and the market will need proof of action by the ECB after today’s bemusing data.”The ECB settled 12 billion euros ($14.5 billion) of net purchases under its emergency program, compared to 17.2 billion euros the week before. A fuller picture will be available on Tuesday when figures on the redemptions are released.The French government redeemed a 3-year bond last week, which had 31 billion euros outstanding, according to Bloomberg data.“It is unfortunate timing, if they wanted to send a signal to the market,” said Piet Christiansen, chief strategist at Danske Bank A/S. “But they would have been aware of the large redemption.”The purchase data also don’t reflect orders made Thursday and Friday, as transactions take a couple of days to settle and show up in the ECB’s accounts.Economists mostly predict the euro-area economy will contract this quarter, before starting a recovery around the spring. The bloc’s fiscal support is also smaller than in the U.S., and a breakthrough recovery fund won’t kick in until the middle of the year.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.
Exxon Mobil Corp on Wednesday unveiled plans to grow dividends and curb spending with projections that were less bold than previous years after the top U.S. oil and gas producer posted a historic annual loss for 2020. Investor pressure has mounted for Exxon to cut costs, improve financial returns and better prepare for the energy transition to lower-carbon fuels. At its investor day presentation, the company reaffirmed plans to keep project spending between $16 billion and $19 billion in 2021, and between $20 billion and $25 billion a year through 2025.
Rocket Companies Inc (NYSE: RKT) founder Dan Gilbert’s wealth got a $25 billion booster on Tuesday as the holding company gets the attention of retail investors on Reddit’s r/WallStreetBets, according to Bloomberg Billionaire’s Index. What Happened: Gilbert, Age 59, has moved up 19 spots to No. 16 on the index that tracks 500 of the world’s richest. A large chunk of Gilbert’s fortune, 93% to be precise, is comprised of his stake in Rocket, reported Bloomberg. See also: How to Buy Rocket Companies (RKT) Stock Why It Matters: The one-day jump in Gilbert’s wealth is the largest so far in the year, noted Bloomberg. As of press time, Detroit-based Rocket Companies with subsidiaries such as Rocket Mortgage and Quicken Loans was the most discussed company on WallStreetBets, according to SwaggyStocks data. WallStreetBets investors previously carried out short squeezes in the stocks of GameStop Corp (NYSE: GME), AMC Entertainment Holdings Inc (NYSE: AMC), Nokia Oyj (NYSE: NOK), BlackBerry Ltd (NYSE: BB), and others. Rocket reported 162% revenue growth and 350% growth in net income for the fourth quarter, which beat analyst estimates. The company’s shares have shot up since last Friday. S3 Partners data indicates the Rocket has currently $1.2 billion in short interest — making it one of the most shorted stocks in the market. Price Action: Rocket shares traded nearly 8.2% lower at $38.20 in after-hours trading on Tuesday after shooting up almost 71.2% in the regular session. Photo by Steve Jennings on Wikimedia See more from BenzingaClick here for options trades from BenzingaRocket Companies Overtakes GameStop, Palantir As WallStreetBets' Top Interest© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
It’s a bearish start to the day. Failure to move back through early highs would bring support levels into play.
(Bloomberg) -- Eight years ago, when the taper tantrum roiled emerging markets, the so-called Fragile Five of Turkey, Brazil, South Africa, India and Indonesia suffered the most. Another spike in U.S. Treasury yields is threatening to wreak havoc on at least three of those nations.The Turkish lira, Brazilian real and South African rand led major global declines last week in the worst developing-nation currency selloff since late September. Those exchange rates have the highest one-week implied volatility in the world, with some analysts warning of more pain ahead.“Higher U.S. interest rates leave all EMs vulnerable,” said Robin Brooks, chief economist of the Institute of International Finance in Washington. This is especially the case for “big current-account deficit countries like Turkey and places where fiscal expansion in 2020 causes markets to question funding needs in 2021. The latter affects Brazil and South Africa,” he said.Benchmark 10-year Treasury yields surged last week to the highest in more than a year, leading traders to bring forward their expectations about how soon the Federal Reserve will tighten policy. For now, officials are stressing the central bank has no plans to raise interest rates given lingering weakness in the labor market. That will make Fed Chairman Jerome Powell’s comments on Thursday at a Wall Street Journal event all the more interesting.In the developing world, dollar-denominated and local bonds endured their worst month since March 2020, while stocks posted their biggest weekly decline in almost a year. MSCI Inc.’s emerging-market equity index slid below its 50-day moving average, indicating additional weakness may lie ahead. Meantime, a JPMorgan Chase & Co. gauge tracking volatility in developing-nation assets jumped last week by the most since early August. Even so, inflows to emerging-market exchange-traded funds accelerated last week.Listen to the EM Weekly Podcast: Rising Yields Take Toll; China Congress“In the absence of a more concerted effort to slow the spike in yields, emerging markets may remain under pressure,” said Ilya Gofshteyn, a senior strategist at Standard Chartered in New York. “Higher-yielding currencies will continue to be particularly adversely affected and duration across emerging markets is also likely to remain especially vulnerable.”OPEC+ will meet on Thursday, setting the stage for another potential conflict between Russia and Saudi Arabia after last year’s oil-price war. The same day, Malaysian policy makers are forecast to keep their benchmark rate at a record low of 1.75%. Elsewhere, Turkey may report quickening inflation, while a purchasing managers’ index figure will provide a health check for South Korea.What to WatchChina’s National People’s Congress will hold its annual session on March 5, featuring President Xi Jinping and other top leaders. This year’s gathering marks the 100th anniversary of the founding of the Communist Party of China. The event may last shorter than the regular two weeks because of the pandemicThe proposed agenda includes an examination of the economy and the 14th five-year plan, Xinhua reportedThe Chinese People’s Political Consultative Conference, an advisory body whose annual meeting is held in conjunction with the NPC, will gather on March 4, according to XinhuaThe meetings probably won’t set a GDP growth target but will emphasize “high-quality” growth considering Covid-19 is still widespread outside China, Iris Pang, an economist at ING in Hong Kong, wrote in a noteThe yuan is one of the best-performing currency in Asia this yearU.S.-Saudi relations will be monitored after an American intelligence report implicated Saudi Arabia’s Crown Prince Mohammed bin Salman in approving the killing of Washington Post columnist Jamal Khashoggi, an act President Joe Biden called “outrageous”Nigeria’s central bank governor suggested the currency was devaluedGovernor Godwin Emefiele said the official exchange rate now stands at 410 per dollar. That’s 7.6% weaker than the rate of 379 published on the central bank’s websiteBrazilian lawmakers are slated to pick up the debate around emergency cash handoutsThe real is the worst-performing currency in Latin America this year Bank Negara Malaysia:Malaysia’s central bank is forecast to keep its overnight policy rate at a record low 1.75% on Thursday. Traders are reducing bets on further easing amid a surge in global bond yields“Stringent social containment measures have dented Malaysia’s growth recovery trajectory,” Kanika Bhatnagar, an economist at Australia & New Zealand Banking Group Ltd. in Bangalore, wrote in a client note. “Monetary policy will remain accommodative, with the central bank continuing with its purchases of government bonds and carrying out reverse repo operations”The ringgit has weakened 0.9% this year amid an extended lockdown and a delay in vaccine rollouts. At the same time, rising oil prices are starting to improve the outlook for the currency for emerging Asia’s only exporter of the commodityKey DataChina’s manufacturing activity dropped further in February as the Lunar New Year holidays disrupted production, while travel restrictions to contain virus outbreaks cut spending on servicesPMI data released Monday showed manufacturing expanded in Indonesia, Philippines and Vietnam last month, while it continued to shrink in Malaysia and Thailand. South Korea and Taiwan will report similar data TuesdaySouth Korea said Monday that exports rose for a fourth month in Febuary amid the global recovery. January industrial-production numbers are due Tuesday, and final fourth-quarter GDP figures are scheduled for ThursdayThe won has lost 3.3% this yearIndonesia said on Monday that consumer prices rose 1.38% year-on-year in February. South Korea will publish CPI numbers Thursday, and the Philippines and Thailand on FridayPhilippine real yields turned negative in January after CPI rose to the highest level in two yearsSouth Korea will post foreign reserves data Thursday, followed by Indonesia, Malaysia, Taiwan, Thailand and the Philippines on FridayTurkey’s economy outperformed all peers except China in the final quarter of last year, driven by lower interest rates and a credit binge that boosted domestic consumption while destabilizing the currencyGross domestic product expanded 5.9% from a year earlier, faster than all G-20 nations except China’s 6.5%, data showed on Monday. The median of 20 forecasts in a Bloomberg survey was for 6.9% expansion.Read more: Policy Jitters Compound Lira’s Worst Week Since 2018 CrisisRussia’s purchasing managers’ index picked up in February to 51.5, the highest reading since April 2019A reading of Brazil’s GDP on Wednesday is expected to show strong levels of growth in the final three months of 2020 as Latin America’s biggest economy recovered from the shock of Covid-19Traders will also monitor January industrial production figures, to be released on Friday, for signs of a comebackIn Mexico, the central bank will probably raise its GDP growth forecasts for this year and next when it publishes its quarterly inflation report on Wednesday, according to Bloomberg EconomicsColombia’s February consumer price inflation figures are expected to show a contraction from a year earlier amid weak domestic demandThe results may have an impact on investor expectations for the central bank to remain accommodativeChile’s January economic activity fell 3.1% year-on-year, more than economists expectedA reading of confidence will also be watched for signs of a comeback as vaccines are rolled out(Adds information on ETF inflows 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) -- Bond traders have been saying for years that liquidity is there in the world’s biggest bond market, except when you really need it.Last week’s startling gyrations in U.S. Treasury yields may offer fresh backing for that mantra, and prompt another bout of soul-searching in a $21 trillion market that forms the bedrock of global finance. While stocks are prone to sudden swings, such episodes are supposed to be few and far between in a government-debt market that sets the benchmark risk-free rate for much of the world.Yet jarring moves occur periodically in Treasuries, forming a bit of a mystery as no two events have been the same. Some point to heightened bank regulations in the wake of the 2008 financial crisis. Scrutiny over liquidity shortfalls intensified in October 2014 when a 12-minute crash and rebound in yields happened with no apparent trigger. Panic selling during the pandemic-fueled chaos a year ago, exacerbated when hedge funds’ leveraged wagers blew up, brought the issue to the fore again.And then came last week, when the gap between bid and offer prices for 30-year bonds hit the widest since the panic of March 2020.The latest events “are a stark reminder what happens when liquidity suddenly vanishes in the deepest, largest bond market,” said Ben Emons, managing director of global macro strategy at Medley Global Advisors.At issue is whether this vast market is more vulnerable to sudden bouts of turbulence thanks to measures that have made it more difficult for banks to hold Treasuries. Some analysts say the tumult last week was magnified by questions over whether the Federal Reserve will extend an easing of bank capital requirements, which is set to end March 31. Put in place early on in the pandemic, the measure is seen as making it easier for banks to add Treasuries to their balance sheets.The 2014 episode triggered a deep dive into the market structure, and regulators have pushed through some changes -- such as increased transparency -- and speculation has grown that more steps to bolster the market’s structure may be ahead.“While the scale and speed of flows associated with the COVID shock are likely pretty far out in the tail of the probability distribution, the crisis highlighted vulnerabilities in the critically important Treasury market that warrant careful analysis,” Fed Governor Lael Brainard said Monday in prepared remarks to the Institute of International Bankers.There are plenty of potential culprits in last week’s bond-market tumble -- which has since mostly reversed -- from improving economic readings to more technical drivers. Ultra-loose Fed policy and the prospect of fresh U.S. fiscal stimulus have investors betting on quicker growth and inflation. Add to that a wave of convexity hedgers, and unwinding by big trend-following investors -- such as commodity trading advisers.Based on Bloomberg’s U.S. Government Securities Liquidity Index, a gauge of how far yields are deviating from a fair-value model, liquidity conditions worsened recently, though it was nothing like what was seen in March.For Zoltan Pozsar, a strategist at Credit Suisse, the action began in Asia with bond investors reacting to perceived hawkish signs from the central banks of Australia and New Zealand. That sentiment then carried over into the U.S. as carry trades and other levered positions in the bond market were wiped out. A disastrous auction of seven-year notes on Thursday added fuel to the unraveling.Last week’s drama “brings to mind other notable episodes in recent years in which a deterioration in the Treasury market microstructure was primarily to blame,” JPMorgan & Chase Co. strategist Henry St John wrote in a note with colleagues.One key gauge of Treasury liquidity -- market depth, or the ability to trade without substantially moving prices -- plunged in March 2020 to levels not seen since the 2008 crisis, according to data compiled by JPMorgan. That severe degree of liquidity shortfall didn’t resurface last week.The bond-market rout only briefly took a toll on share prices last week, with equities surging to start this week, following a sharp retreat in Treasury yields amid month-end buying.The Fed cut rates to nearly zero in March 2020, launched a raft of emergency lending facilities and ramped up bond buying to ensure low borrowing costs and smooth market functioning. That breakdown in functioning has sparked calls for change from regulators and market participants alike.GLOBAL INSIGHT: Recovery? Yes. Tantrum? No. Yield Driver ModelFor now, Treasuries have settled down. Pozsar notes that the jump in yields has provided an opportunity for some value investors to swoop in and pick up extra yield, effectively helping offset the impact of the leveraged investors who scrambled for the exits last week.“Some levered players were shaken out of their positions,” Pozsar said in a forthcoming episode of Bloomberg’s Odd Lots podcast. “It’s not comfortable -- especially if you’re on the wrong side of the trade -- but I don’t think that we should be going down a path where we should redesign the Treasury market.”Why Liquidity Is a Simple Idea But Hard to Nail Down: QuickTake(Updates with details on Bloomberg’s liquidity index in 10th paragraph, and a chart)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.
A $232 million investment has ballooned into a $5.9 billion stake.
A bill in Congress would give families up to $300 a month per child starting this summer.
Japanese carmaker Toyota, which has its U.S. headquarters and a factory in Texas, said it was looking into the move by Governor Greg Abbott to roll back the mask mandate, and it doesn't contemplate any immediate changes. "The early read is – no change for us," Toyota spokesman Scott Vazin said.
Bitcoin passed its tenth anniversary of the release of its whitepaper, first introducing it to the world, in 2018. But assessments of the cryptocurrency's impact in the last decade or so have mostly been negative. Is bitcoin useless?
A former board member of Tesla Inc (NASDAQ: TSLA) said Tuesday that the company is unlikely to remain the “king of the hill” in electric vehicles forever, CNBC reported. What Happened: Steve Westly said on CNBC’s “Power Lunch” that he had been bullish on the Elon Musk-led automaker for the last 10 years and it’s “hard to imagine an auto company executing better than Tesla has.” Westly pointed to the company’s latest earnings release in January where it said it had a “multi-year horizon” and expected to achieve 50% average annual growth in vehicle deliveries. See also: How to Invest in Tesla Stock “No one else in the auto world is doing that. Having said that, Tesla is not going to be king of the hill in electric forever,” said Westly. Why It Matters: The venture capitalist noted that there have been large-scale commitments on EVs from legacy automakers such as General Motors Company (NYSE: GM) and Volkswagen AG (OTC: VWAGY). “Tesla is not just getting hit from the high end,” said Westly on the availability of EVs from Volkswagen marques such as Audi and Porsche. Tesla also faces increased competition from Chinese EV rivals, which have more affordable offerings. The analyst noted increased competition in Europe where according to him the company was “No. 1, they’re now No. 4.” See Also: Tesla's Share Of European EV Market Reduced To 3.5% “They’re getting competition from all sectors. They’re going to have to double down to compete.” Tesla’s plans to make a more affordable $25,000 vehicle have left Chinese rivals such as Xpeng Inc (NYSE: XPEV), Nio Inc (NYSE: NIO), and others unfazed. In January, a two-door $4,500 EV made by Wuling — a joint venture of GM and state-owned SAIC Motor — outsold Tesla’s Model 3 in China by nearly two-to-one. Price Action: Tesla shares closed 4.45% lower at $686.44 on Tuesday and gained 0.34% in the after-hours session. Click here to check out Benzinga’s EV Hub for the latest electric vehicles news. See more from BenzingaClick here for options trades from BenzingaNio Says Chip Shortage Will Hit EV Production In Q2Such Popularity, Much Wow! Dogecoin Now Available At 1,800 ATMs Across US© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
ASML Holding NV has extended a deal to sell chip manufacturing equipment to Semiconductor Manufacturing International Corp, China's largest chipmaker, until the end of this year, the Dutch company said in a statement on Wednesday. ASML made the statement after SMIC on Wednesday disclosed a volume purchase agreement under which it has already spent $1.2 billion with the toolmaker. In a clarifying statement issued several hours later, ASML said the agreement began in 2018 and was slated to expire at the end of 2020, but the two companies agreed in February to extend the deal to the end of this year.
Heavily shorted mortgage provider Rocket Companies saw its stock surge on Tuesday, in an eye-popping move reminiscent of the rallies that powered GameStop and other so-called meme stocks earlier in the year. Shares of Rocket, the parent company of Quicken Loans, closed up 71.2% at $41.60 after being halted several times for volatility. The outsized move puts Rocket among the stocks that have experienced wild gyrations after becoming a focus of investors on sites such as Reddit’s WallStreetBets, where mentions of the company have multiplied in recent days.
(Bloomberg) -- Intel Corp. was told to pay VLSI Technology LLC $2.18 billion by a federal jury in Texas after losing a patent-infringement trial over technology related to chip-making, one of the largest patent-damages award in U.S. history. Intel pledged to appeal.Intel infringed two patents owned by closely held VLSI, the jury in Waco, Texas, said Tuesday. The jury found $1.5 billion for infringement of one patent and $675 million for infringement of the second. The jury rejected Intel’s denial of infringing either of the patents and its argument that one patent was invalid because it claimed to cover work done by Intel engineers.The patents had been owned by Dutch chipmaker NXP Semiconductors Inc., which would get a cut of any damage award, Intel lawyer William Lee of WilmerHale told jurors in closing arguments Monday. VLSI, founded four years ago, has no products and its only potential revenue is this lawsuit, he said.VLSI “took two patents off the shelf that hadn’t been used for 10 years and said, ‘We’d like $2 billion,”’ Lee told the jury. The “outrageous” demand by VLSI “would tax the true innovators.”He had argued that VLSI was entitled to no more than $2.2 million.“Intel strongly disagrees with today’s jury verdict,” the company said in a statement. “We intend to appeal and are confident that we will prevail.”Intel fell 2.6% to $61.24 in New York trading. The stock is up 23% since the beginning of the year.One of the patents was originally issued in 2012 to Freescale Semiconductor Inc. and the other in 2010 to SigmaTel Inc. Freescale bought SigmaTel and was in turn bought by NXP in 2015. The two patents in this case were transferred to VLSI in 2019, according to data compiled by Bloomberg Law.VLSI lawyer Morgan Chu of Irell & Manella said the patents cover inventions that increase the power and speed of processors, a key issue for competition.‘Willful Blindness’Federal law doesn’t require someone to know of a patent to be found to have infringed it, and Intel purposely didn’t look to see if it was using someone else’s inventions, he said. He accused the Santa Clara, California-based company of “willful blindness.”The jury said there was no willful infringement. A finding otherwise would have enabled District Court Judge Alan Albright to increase the award even further, to up to three times the amount set by the jury.“We are very pleased that the jury recognized the value of the innovations as reflected in the patents and are extremely happy with the jury verdict,” Michael Stolarski, chief executive of VLSI, said in an e-mailed statement.Officials with NXP couldn’t immediately be reached for comment.The damage request isn’t so high when the billions of chips sold by Intel are taken into account, Chu said. Intel paid MicroUnity Systems Engineering Corp. $300 million 2005 and in 2011 paid Nvidia Corp. $1.5 billion even though a settlement in that case involved a cross license of technology, he said.“Operating companies are going to be disturbed by not only the size of the award but also the damages theory,” said Michael Tomasulo, a Winston Strawn lawyer who attended the trial. “They more or less seemed to have bought the entire VLSI case.”The damage award is about half of Intel’s fourth-quarter profit. The company has dominated the $400 billion chip industry for most of the past 30 years, though it’s struggling to maintain that position.The verdict is smaller than the $2.5 billion verdict won by Merck & Co. over a hepatitis C treatment. It was later thrown out. Last year, Cisco Systems Inc. was told by a federal judge in Virginia to pay $1.9 billion to a small cybersecurity companies that accused it of copying a feature to steal away government contracts. Cisco has asked the judge for a new trial.The case is among the few in-person patent trials in recent months, with many courts pressing pause amid the coronavirus pandemic. It was delayed a week because of the winter storm that wreaked havoc across much of Texas.Intel had sought to postpone the case because of the pandemic, but was rejected by Albright, a former patent litigator and magistrate who was sworn in as a federal judge in 2018 and has quickly turned his courtroom into one of the most popular for patent owners to file suit.The case is VLSI Technology LLC v. Intel Corp., 21-57, U.S. District Court for the Western District of Texas (Waco).(Updates with VLSI comment in 12th paragraph. An earlier version corrected the spelling of law firm name in eighth 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.