Over 1.5 million accounts were opened since 2011.
Over 1.5 million accounts were opened since 2011.
(Bloomberg) -- The husband-and-wife duo that ran private lender Bridging Finance Inc. has been fired by a court-appointed receiver as Canada’s main securities regulator investigates the firm over alleged mismanagement and self-dealing.PricewaterhouseCoopers, which took control of Bridging at the request of the Ontario Securities Commission, fired David and Natasha Sharpe from the firm they co-founded almost a decade ago. The move came less than a week after the regulator said it was investigating the executives at the firm, which had about C$2 billion ($1.7 billion) in assets under management as of December.“The decision of the receiver is regrettable but not surprising,“ David Sharpe said in an emailed message. “Notwithstanding our termination, we will cooperate with the receiver to the extent possible in the interests of investors while we address the OSC’s misguided allegations.”The Toronto-based firm lends to small and mid-sized companies involved in everything from milling flour to delivering groceries. It attracted a following in particular among high-net-worth individuals with promises of steady gains from its loan portfolio. Those investments are now frozen, and it’s unclear how much will be recouped after the company emerges from receivership.In court documents made public last weekend, the OSC alleged the firm and senior executives mismanaged funds and failed to disclose conflicts of interest.Among the alleged conflicts, David Sharpe received C$19.5 million in undisclosed payments into his personal checking account from a company controlled by entrepreneur Sean McCoshen, the commission says in documents. During that same period, Bridging’s funds had lent more than C$100 million to other companies of McCoshen’s, the commission said in the documents.According to an affidavit by OSC forensic accountant Daniel Tourangeau, much of the undisclosed money was moved into David Sharpe’s personal investment accounts.The OSC said Friday that Bridging and some of its directors and officers, including David Sharpe, may have taken actions “which they knew or reasonably ought to have known perpetrated a fraud on unitholders” of the funds. They may have made statements that were “misleading or untrue” to the regulator, according to an OSC document. Bridging may have also “failed to deal fairly, honestly and in good faith with its clients.”Another central accusation is that Bridging misappropriated about C$35 million “to complete an acquisition for its own benefit” -- a deal with investment manager Ninepoint Partners LP for an interest in an income fund the two firms had been jointly operating.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.
After the initial reaction to the report and the surge to $1844.60, gold prices drifted lower then became rangebound into the close as yields firmed.
Barry Silbert, a power player in the digital-asset sector, said he's betting against dogecoin and is urging investors in one of the hottest trades in 2021 to convert their doge holdings into bitcoin.
Families can get up to $50 off their bill to stay connected during the pandemic.
It takes every cent I earn to get by and pay debt service. If I were to retire today, I would draw $1,200 a month in Social Security, or $1,400 a month if drawing against my ex-husband’s account (we were married 23 years). See: Confused about Social Security — including spousal benefits, claiming strategies and how death and divorce affect your monthly income?
U.S. stock funds now are riding a river of new cash from investors — and that is not a bullish sign. In fact, fund flows are a contrarian indicator: the U.S. stock market in the past has performed better when there is a net outflow of cash. The evidence is summarized in the chart below, which plots net inflows of cash to U.S. stock funds (both open-end and exchange-traded funds) by year over the past decade.
(Bloomberg) -- Copper soared this week to an all-time high, continuing a sizzling rally that’s seen prices double in the past year.The previous copper record was set in 2011, around the peak of the commodities supercycle sparked by China’s rise to economic heavyweight status — fueled by massive amounts of raw materials. This time, investors are betting that copper’s vital role in the world’s shift to green energy will mean surging demand and even higher prices. Copper futures rose as high as $10,440 a ton in London on Friday. What’s the big deal about copper?Through human history, copper has played a critical role in many of civilization’s greatest advances: from early monetary systems to municipal plumbing, from the rise of trains, planes and cars to the devices and networks that underpin the information age.The reddish brown metal is mostly unrivaled as an electrical and thermal conductor, while also being durable and easy to work with. Today, a vast array of uses in all corners of heavy industry, construction and manufacturing mean it’s a famously reliable indicator for trends in the global economy.The copper market was one of the first to react as the Covid-19 coronavirus emerged in Wuhan, with prices slumping by more than a quarter between January and March last year. Then as China’s unprecedented steps to control the domestic spread of the virus started to yield results, copper rapidly rebounded -- and it hasn’t looked back since.But it’s not just China driving the rally. While the country accounts for half of the world’s copper consumption and has played an integral part in copper’s surge, demand there has actually softened this year. Yet prices continue to drive higher.Why is copper surging now?It’s partly due to evidence of recoveries in other major industrial economies, with manufacturing output surging in places like the U.S., Germany and Japan. But investors have also been piling into copper on a bet that global efforts to cut carbon emissions are going to mean the world needs a lot more of the metal, putting a strain on supply. New mine production may be slow to arrive, as mines are hard to find and expensive to develop.Electric vehicles contain about four times as much copper as a conventional car, and vast amounts of copper wiring will be needed in roadside chargers to keep them running. Bringing electricity from offshore wind farms to national power grids is also a copper-intensive exercise.Governments around the world have announced ambitious infrastructure investment plans, much of which involves construction, green energy, or both.Are things that use copper getting more expensive?Increasingly, yes. Major manufacturers have been hiking prices for air-conditioning units and fridges over the past few months, and they’re warning there may be more to come.Still, copper is often used in small quantities in complex consumer goods, and so the doubling in prices over the past year won’t be nearly as painful for consumers as an equivalent jump in food or fuel prices would be. Similarly, governments rolling out big spending programs might not be too worried about a rise in copper alone.But with other raw materials rising too, there are growing signs that they’ll get less bang for their buck as the cost of big-ticket items like wind turbines rise.What does it mean for the economy?There are mounting concerns that the broad rally in everything from lumber to steel will force central bankers to step in to stop inflation in raw-materials markets spiralling out of control.In turn, the stellar economic rebound that’s driving the commodities rally may start to stall as businesses are hit by higher interest rates, compressed margins, and waning demand from consumers. The key question for policymakers at the Federal Reserve — and traders on Wall Street — is whether the broad spike in commodities prices will be temporary.Could the rally fizzle out?In the case of copper, there are some signs that spot demand is starting to cool, particularly in China, and some analysts and traders say the record prices aren’t justified by today’s fundamentals.The view among policymakers is that the rise in commodities prices will prove short-lived, as consumers will focus their spending on services and experiences as economies open up, easing the strain on demand for commodities-intensive items such as second homes, electronics and appliances seen during lockdown.For copper though, it’s not just about strong demand today. In fact, a lot of expected spending on renewables and electric-vehicle infrastructure is yet to really materialize. When it does, it could transform the outlook for copper usage in countries such as Germany and the U.S.How high could copper go?Trafigura Group, the world’s top copper trader, and Goldman Sachs Group Inc. both say prices could hit $15,000 a ton in the coming years, on the back of a global surge in demand due to the shift to green energy. Bank of America says $20,000 could even be possible if drastic issues arise on the supply side.The copper market itself may also be facing a big shift. Trafigura predicts that demand growth in China will be eclipsed by rising consumption in the rest of the world over the coming decade, in a dramatic reversal of the recent trend. That could help underpin a new “supercycle” in the copper market, driving prices higher for years on the back of a step-change in global demand.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.
Ethereum has outperformed major digital currency rivals this year, bolstered by the surge in decentralized finance (DeFi) and the anticipation of a technical adjustment this summer, but it faces hurdles that could stall its rise. With a jump of more than 350% in its price this year, ethereum has the second-largest market capitalization after bitcoin, but not as much cache and perhaps more operational challenges that could prevent it from eclipsing its major rival. In the crypto world, the terms "ethereum" and "ether" have become synonymous.
Everyone has a different idea of what wealth is. You could ask 20-somethings what they think wealth is, and they might describe extravagant houses or a private jet. Someone older might mention lucrative investments. Everyone seems to have a different … Continue reading → The post What Is the Financial Definition of Wealth? appeared first on SmartAsset Blog.
The 39-year-old landlord, who was born and raised in Toronto, Canada, reached $1 million Canadian dollars, or approximately US$791,000, in 2019, though he felt he had reached financial independence even sooner. Chad found the FIRE Movement, made it to $1 million CAD before 40, and became a firefighter and sheepherder along the way. The former network administrator and his partner, Catherine, who is a Ph.D. student and research coordinator, save between 50% and 80% of their income every year and live off of $27,000 in annual expenses.
How you can take your health insurance into your own hands.
The Dow Jones lagged the Nasdaq indexes in afternoon trading Friday, but Nike and Boeing outperformed. Retailer Revolve Group surged on earnings.
As the US economy continues to open up, the April jobs report from the US Bureau of Labor Statistics shows the boom in delivery jobs has taken a tumble. The industry covers workers who deliver and pick up packaged good, employed by companies like Amazon, Fedex, and DHL. When the Covid-19 pandemic halted the world and people stayed home, the demand for online retailers, online grocers, delivery firms shifted into high-gear.
Evidence mounts that some employers can't find workers because they're jerks.
AT&T (NYSE:T) continues to face strong pressures on multiple fronts and the company’s longer term outlook appears to be particularly negative. As a result, I recommend that investors sell T stock into its recent strength. Source: Jonathan Weiss/Shutterstock Although AT&T reported better-than-expected first-quarter results on April 22, driven by the strength of its mobility business, the latter unit will likely face sizeable margin pressures and/or market share losses as inflation heats up. Also likely to drag down the telecom company’s shares over time are its large debt and accelerated cord-cutting. Finally, in the long-term, the company’s broadbands unit could be hit with tough competition from Elon Musk’s Starlink service. Mobility Margin Pressures In the wake of AT&T’s Q1 results, research firm MoffettNathanson stated that the company was able to continue offering attractive discounts to its wireless customers. But in the face of rising inflation, the company will likely have the uncomfortable choice of curtailing those discounts, potentially leading to major market share losses, or causing its wireless profit margins to fall meaningfully.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Further, the unit may have gotten a boost from the novel-coronavirus pandemic as many consumers likely spent less money on experiences and more on computer hardware, including cell phones and tablets. That trend, of course, is expected to fade going forward as the economy reopens. Debt, Cord Cutting and Ad Revenue As of the end of the first quarter, AT&T had a huge debt load of $169 billion., and its net debt was equal to 3.1 times its EBITDA, excluding certain items. There are some indications that the company could have trouble paying off its debt going forward. And if AT&T has to cut its dividend (the shares have a gigantic forward dividend yield of 6.6%) in order to pay down its debt, T stock is likely to dive sharply. 7 Stocks to Buy Right Now With All Eyes on Crypto Cord-cutting continues to be problematic for AT&T, as its premium video subscribers tumbled by 3 million last year and 620,000 last quarter. And according to S&P, in-line with previous predictions I’ve made, cord-cutting is expected to generally accelerate going forward. The revenue of the company’s Warner Media unit jumped 9.8% YOY as its ad sales jumped 18.5% YOY amid the economic reopening trend. Although the reopening will continue to boost ad revenue in the near-term and medium-term, I believe that, over the longer run, inflation may cause the company’s ad revenue to fall meaningfully. Specifically, as companies’ profit margins drop due to higher input costs, many of them may react by cutting their ad budgets. Potential Competition From Starlink For many years, I have believed that tech companies could disrupt the somewhat antiquated broadband internet services offered by the cable and telecom companies. So far, this hasn’t happened yet, but now Elon Musk, the man who revolutionized automobiles, is entering the sector. The Starlink satellite internet service, provided by Musk’s SpaceX company, has gotten off the ground (no pun intended). Although Starlink is only offering internet service in limited areas at this point, by the end of this year, it’s expected to be available in most of the world, although it’s only seeking to serve 5 million U.S. households at this point. Still, as technology and Starlink’s innovations advance, I think that the service’s capacity will surge and its price will decrease. Since AT&T Fiber added a net total of 235,000 consumer subscribers last quarter, competition from Starlink would likely cause a serious problem for AT&T and T stock. The Bottom Line on T Stock AT&T faces an array of threats, including margin pressures, cord-cutting, inflation, and a huge debt load. Moreover, the company only expects its revenue to inch up 1% this year. Given these points, investors should sell T stock. On the date of publication, Larry Ramer did not have (either directly or indirectly) any other positions in the securities mentioned in this article. Larry Ramer has conducted research and written articles on U.S. stocks for 14 years. He has been employed by The Fly and Israel’s largest business newspaper, Globes. Larry began writing columns for InvestorPlace in 2015. Among his highly successful, contrarian picks have been GE, solar stocks, and Snap. You can reach him on StockTwits at @larryramer. More From InvestorPlace Why Everyone Is Investing in 5G All WRONG It doesn’t matter if you have $500 in savings or $5 million. Do this now. Top Stock Picker Reveals His Next Potential 500% Winner Stock Prodigy Who Found NIO at $2… Says Buy THIS Now The post AT&T Is Ailing, and Investors Should Unload T Stock appeared first on InvestorPlace.
Tech investor Cathie Wood tells CNBC she isn't unsettled by the popular ARK Innovation ETF's rough start to May.
A mass of attention has been brought to semiconductor companies as supply-chain constraints have reduced the availability of everything from cars to laptops to gaming consoles. The largest chipmakers and foundries — Intel (INTC) Nvidia (NVDA) Advanced Micro Devices (AMD) Taiwan Semiconductor Manufacturing (TSM) Globalfoundries and Qualcomm (QCOM) — have gotten most of the headlines. As the challenges are sorted out, it has become clear that semiconductors are a hot commodity, and for investors, that could be considered an opportunity.
Barron’s spoke with an economist, a bond manager, and a stock manager about why stocks are higher, and why a rally in fixed income faded.
The residential construction sector is pumping the brakes, judging by April's jobs numbers, despite the strong demand for homes.
The cryptocurrency lacks the mainstream appeal of Bitcoin, but it still has a substantial online community behind it. And that community may be the basis of new financial markets.