Wendy Williams criticized Madonna's Billboard Music Awards performance, calling her an 'old lady' who should 'stick to her old lady moves'.
Wendy Williams criticized Madonna's Billboard Music Awards performance, calling her an 'old lady' who should 'stick to her old lady moves'.
U.S. Commerce Secretary Gina Raimondo plans to hold a May 20 meeting with senior U.S. auto industry leaders and others on a semiconductor shortage that has cut production, two sources briefed on the matter said. The meeting will include General Motors Co, Ford Motor Co and Stellantis NV, the sources said. The Commerce Department did not immediately respond to a request for comment.
(Bloomberg) -- Meituan’s stock plunged to a seven-month low after the Chinese e-commerce company’s billionaire chief executive officer shared and then deleted a poem on social media that some interpreted as a veiled criticism of Beijing.The food delivery giant fell almost 10% in Hong Kong before closing 7.1% lower to wipe out about $16 billion. Wang Xing posted a classical poem about book burning by the emperor during the Qin dynasty on social media platform Fanfou.com, according to the Hong Kong Economic Times. He deleted it on Sunday and issued a clarification that he used the poem in reference to the company’s competitors. A Meituan spokesperson confirmed both posts and declined to comment further.Investors are jittery after business figures who appeared to criticize the government have faced consequences. Wang’s rival Jack Ma angered Beijing in October last year by blasting regulators publicly over what he considered to be an antiquated approach to oversight. That speech was followed swiftly by tightened rules over consumer lending, the scuppering of Ant Group Co.’s record $35 billion initial public offering as well as an antitrust probe into Alibaba Group Holding Ltd.“To a certain extent, one can interpret the poem posted by Wang Xing as similar to Jack Ma’s criticism of the banking regulators,” said Kerry Goh, chief investment officer at Kamet Capital Partners Pte. “This is not a good time to be too vocal!”China’s technology sector has come under intense regulatory scrutiny in recent months amid concern the largest firms have grown too powerful. That’s weighed on the shares, with the Hang Seng Tech Index tumbling almost 30% from its February high. The antitrust watchdog has launched an investigation into suspected monopolistic practices by Meituan, including forced exclusivity arrangements.The Shanghai Consumer Council criticized Meituan on Monday for practices that hurt consumers’ rights, including refund problems and misleading content on its mobile app. The company has vowed to submit a rectification report in the near term.Meituan reported a net loss for the final quarter of 2020, which prompted the three global credit-rating agencies to downgrade their outlooks. The firm raised $10 billion selling shares and convertible bonds in Hong Kong last month, after burning through cash trying to expand its business.The shares, which have more than 50 buy ratings and no sell recommendations, have fallen for a record nine days. They’re down 42% from their February high in one of the worst performances on the Hang Seng Index.The poem Wang shared is by Tang dynasty poet Zhang Jie about the book burning that took place under emperor Qin Shi Huang.“What the CEO posted is a very famous anti-establishment poem, which shows that he might be under a lot of pressure from the ongoing investigations,” said Hao Hong, head of research at Bocom International in Hong Kong.The following is Wang’s clarification:“A poem from the Tang dynasty inspired me a lot lately: the Qin dynasty was afraid of scholars but Liu Bang and Xiang Yu, whose uprising overthrew the Qin regime, didn’t have much education. This has reminded me that the most dangerous competitors are often not those expected. Alibaba has been focusing on JD.com these years, only to see Pinduoduo exceed it in user numbers. Similarly, Ele.me looks to be the biggest rival of Meituan’s delivery business, but what could really cause a shock to the industry may be some companies and business models that haven’t come under our radar.”(Updates with Shanghai Consumers Council 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.
Iraq has formally asked to buy U.S. energy giant ExxonMobil's share in one of Iraq's biggest oilfields, West Qurna 1, the head of the state-run oil operating company said on Monday. Iraq said last month that Exxon was seeking to sell its 32.7% stake in West Qurna 1, and that the oil ministry had started discussions over a possible purchase. "A decision has been made and we sent a formal letter to ExxonMobil asking to buy its share," Basra Oil Company director Khalid Hamza told Reuters in an interview, adding the oil and finance ministries will follow up with procedures to secure the finance.
(Bloomberg) -- The pound strengthened more than 1% against the dollar after the Scottish National Party’s election showing pushed back the risk of a near-term vote on independence, yet traders are bracing for further clashes over the U.K.’s future down the road.Sterling climbed by the most in almost a month to $1.4134 on Monday, its highest level since February, after the SNP fell one seat short of a parliamentary majority. Strategists from Rabobank International to Credit Agricole SA cite the push for a referendum -- which U.K. Prime Minister Boris Johnson opposes -- as a headwind that could create volatility in the months to come.“There are a lot of voices in the market that see the lack of a majority for the SNP combined with Johnson’s refusal to hold a referendum as meaning that the risks to the union are a non-issue for the pound,” said Jane Foley, head of foreign-exchange strategy at Rabobank. “I would be more cautious on this.”Investors will now be paying attention to how SNP’s leader Nicola Sturgeon pursues the goal of changing Scotland’s constitutional future. Her party boosted its haul to 64 of the 129 seats in the Scottish Parliament and, alongside the Green party that also increased its share, would have enough to form a pro-independence majority. Johnson has said that he would not grant one any time soon, which could lead to a clash in the courts.Sterling’s rally started during Asia as investors covered short positions and Japanese banks bought the currency, traders said, before extending through London trading. U.K. government bonds led a selloff of haven sovereign assets following the vote. Ten-year yields climbed as much as four basis points to 0.81%.The U.K. prime minister did strengthen his hand across Northern England, benefiting from the country’s speedy rollout of vaccines. Britain is due to be fully re-opened by June 21 and the corresponding economic boost could be another tailwind for the pound over the coming months. One-month risk reversals, a gauge of market sentiment, show pound traders are at their most bullish versus the dollar since last month.“’What matters is the U.K. economy, the Bank of England, the dollar and risk markets,” said James Athey, a money manager at Aberdeen Standard Investments. If the dollar suffers in coming months, sterling could rise as high as $1.45, a level last seen in 2016, he said.Read more: Why Scotland’s Road to Independence Vote Is RockyFor Rabobank’s Foley, continued uncertainties over Scotland’s future could spur volatility in sterling over the next 18 months. Sturgeon has said that if Johnson wants to stop Scottish legislation on a referendum, he would have to go to the Supreme Court to challenge it. A draft Referendum Bill has already been published. While a majority voted to remain in the union in 2014, odds show that a new referendum could be much tighter.“The pound is not out of the woods just yet,” said Valentin Marinov, head of Group-of-10 foreign-exchange research at Credit Agricole. “The confrontation over independence between Holyrood and Westminster could grow more intense in the wake of the Scottish election and thus add to the downside risks for sterling once again.”(Updates prices to reflect 1% rally from first 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) -- Meituan shares fell for the 10th straight session after an influential consumer group voiced criticism over issues that hurt consumer rights, fueling concerns the Chinese tech firm is facing heightened regulatory scrutiny.The Shanghai Consumer Council, a consumer rights advocacy group, blasted the food delivery giant for its practices including refunding problems and misleading content on its mobile app in a statement released late Monday. The company has vowed to submit a rectification report in the near term. Shares fell 5.3% Tuesday to HK$249, taking the slump so far this week to nearly 12%.Meituan stock has been sliding since the company became one of the latest targets of the Chinese government’s crackdown on internet companies amid concern the country’s large tech firms have grown too powerful. China’s State Administration for Market Regulation announced late last month that it has launched an investigation into the company’s suspected monopolistic practices.The shares suffered a fresh blow on Monday after chief executive officer Wang Xing’s social media posting last week of a classical poem about book burning by the emperor during the Qin dynasty went viral on the internet. Wang later deleted it and said he used the poem in reference to the company’s competitors. The topic with hashtag #MeituanSharePriceSlump# has been read more than 33 million times on popular Chinese blogging platform Weibo.com.The stock plunge this week knocked nearly $2.5 billion off the value of Wang Xing’s 11% stake in Meituan, according to the Bloomberg Billionaires Index.China’s technology sector has come under intense regulatory scrutiny in recent months, with Ant Group. Co. pulling a record $35 billion initial public offering in November as it complies with new rules. The Hang Seng Tech Index, which includes many Chinese tech giants, has tumbled about 30% from its February high. That compares with a less than 3% fall for the Nasdaq 100 Index during this period.“So many headwinds still persist in the Chinese technology sector,” Jackson Wong, asset management director at Amber Hill Capital Ltd., said by phone. “The policy worry is not just about Meituan. Tech regulations just keep coming in China. The lingering regulatory risk makes forecasting the sector’s growth really really difficult.”Wong expects funds to continue to rotate out of the tech sector into cyclical names and sees mainland market stabilization as the next catalyst. “If the sentiment recovers in the domestic market, investors could buy more Hong Kong tech stocks and regulatory fears may recede a bit. So far I haven’t seen that happening,” he added.Meituan may face persisting stock price pressure in the short term, Citigroup Inc. analysts including Alicia Yap wrote in a note commenting on the Shanghai consumer organization’s statement.User growth at internet platforms may decelerate, possibly causing revenue expansion to slow, while their costs may rise in order to comply with regulatory requirements, after the council said an overemphasis on user traffic by the firms is unhealthy, according to the note.Bernstein slashed its target price for Meituan by 21% to HK$330 on lower estimates for food delivery profitability and regulatory policy headwinds, according to a Tuesday note by analysts including Robin Zhu. It expects regulatory risks to remain an “overhang” until an official anti-monopoly ruling is handed down possibly in a few months.(Updates prices throughout and with Berstein note in the last 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) -- The rand’s 30% gain against the dollar since the height of the pandemic has outstripped emerging-market peers -- and the rally may not be over yet.South Africa’s currency has recovered all its losses since it slumped to a record in April last year, and then some. Strong commodity prices and the global search for yield should support the narrative for further gains in coming months. Domestic fiscal metrics -- though still far from healthy -- are improving along with terms of trade, while the government’s crackdown on corruption is also fueling positive sentiment.The rand extended its rally on Tuesday, advancing 0.4% to 13.9877 per dollar by 11:13 a.m. in Johannesburg.It’s becoming easier to back South Africa’s currency, and these charts illustrate why:Bond Investors ReturnAfter record outflows from South Africa’s bond market in the first four months of the year, last week’s disappointing U.S. jobs numbers heralded a reprieve. Foreign investors bought a net 5.2 billion rand ($370 million) of South African government debt on Friday, the biggest in inflow since November, as the move lower in Treasury rates gave new impetus to the search for yield. Together with a healthy trade surplus fueled by rising commodity prices, those inflows could be rand-supportive in coming months.Technical CheerThe dollar last week tested a pivotal area at 14.40-14.50 after consolidating in the second half of April. Failure to breach resistance meant that rand bulls got the upper hand once again, as shown by the fear-greed indicator, and the pair fell to fresh cycle lows. In the longer-term, the rand seems to be in the final stages of the ABC correction of an Elliot Wave Cycle that started in 2011 and was completed in early 2020. The dollar may weaken toward the 11.50 handle, according to the pattern.Encouraging OptionsDemand for dollar topside exposure took a hit as key resistance around 14.50 held. While greenback calls still trade at a significant premium, bearish sentiment for the South African currency, as measured by one-month risk reversals, has moved to the lowest level in three weeks, with room to extend toward February range extremes.Shiny ProspectsThe correlation between the Bloomberg Industrial Metals Sub-Index and the rand has strengthened to 0.6, near its strongest level this year. Industrial metals account for about a quarter of South Africa’s export earnings, bolstering the current-account balance, for long the rand’s Achilles heel. The current account may be in surplus this year, according to the median forecast in a Bloomberg survey.Best BetThe large inflows from loans South Africa procured from the International Monetary Fund and New Development Bank amid the height of the Covid-19 pandemic have created a surplus of dollars in the local banking system. That’s lifted USDZAR basis swaps well above the long-term average, making it expensive to short the South African currency. With more inflows expected this year from a World Bank loan and Eurobond issuance, the cost of betting against the rand will remain elevated for some time.(Updates with rand move in third 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.
‘I bought the house for $125,000 and it is now worth approximately $285,000, with a total owed of $185,000.’
(Bloomberg) -- Cathie Wood’s Ark Innovation ETF looked set for another difficult day on Tuesday as it extended losses in early trading after suffering its worst drop in seven weeks.The ARKK exchange-traded fund fell 2.9% as of 5:38 a.m. in New York. The product, which makes concentrated bets on tech companies aiming to disrupt industries, plunged 5.2% on Monday to a six-month low with all but five of its 58 holdings retreating in a broad tech selloff.That was double the loss of the Nasdaq 100 Index, and took ARKK’s decline from a February peak to 34%.Wood has doubled down on some of her favorite bets in recent downdrafts, buying Twitter Inc. in three out of five days last week as it fell 5.2% in the worst week since March. She said in a television interview that the tech selloff has only set her fund up for a strong rebound. ARKK surged almost 150% in 2020 and is down 16% this year.While all of ARKK’s major holdings retreated on Monday -- Tesla Inc., its biggest exposure, dropped 6.4% -- the hardest-hit names in the portfolio were two biotech stocks. Twist Bioscience Corp. was the fund’s biggest laggard, plunging more than 17% for its worst one-day performance since Feb. 5. NanoString Technologies Inc. sank 12%.On the bright side, Coinbase Global Inc., which accounts for about 3% of the ETF’s holdings, gained 11.3% in the best day since its April 14 direct listing.Wood’s firm, Ark Investment Management, added 33,300 Coinbase shares on Monday, according to Bloomberg’s calculations of data from the company’s daily trading update. The asset manager also sold 30.4% of its Apple Inc. holdings, the data show.(Updates Tuesday move. An earlier version corrected the second paragraph to show 5.2% drop was Monday.)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.
In the past week, investors have had to cope with multiple conflicting signals from the markets. The April jobs report, which was expected to show almost 1 million new positions for the month, showed only 266,000. The official unemployment number ticked upward slightly to 6.1%, and hourly wages also gained – by 0.7%. That last would seem to be a positive – except that, combined with the massive government stimulus injecting cash into the economy – higher wages are seen as a portent of inflation. At first glance, it seems like an environment that would have investors cautious. Except – the Fed has signaled that it will not be winding down its easy money policies. Low interest rates have helped to fire up the bull market engine in recent years, for two reasons. First, it keeps the cost of credit low, making it easy to leverage all sorts of purchases – cars, homes… even stocks. And second, with rates low, bond yields have been unable to make any significant rise. For investors seeking a return, this makes stocks the place to go. It also creates an environment that’s conducive to IPO events. Markets have been on a steady, long-term upward trend for months; the S&P 500 has gained 44% over the last 12 months. With a return potential like that, it’s no wonder that companies are turning to the public trading markets to raise capital. When it comes to equities, a rising tide truly will lift all boats. This brings us to JPMorgan. The banking firm’s stock analysts have been looking for the equities primed to gain in current conditions. And they’ve tapped two stocks new to the public markets as likely to jump 80% or more in coming months – a solid return that investors should note. After running both tickers through TipRanks’ database, we found out that the rest of the Street is also standing squarely in the bull camp as each boasts a “Strong Buy” analyst consensus. LAVA Therapeutics (LVTX) We’ll start with a Netherlands-based biotech firm. LAVA Therapeutics has a focus on cancer treatments, and is working to develop what it calls gamma-delta bispecific T cell engagers. These compounds are intended to activate the innate and adaptive immune systems, using the body’s own response to fight tumors. LAVA’s pipeline includes four proprietary compounds, and a fifth that is being investigated in combination with Janssen. All five drug candidates are in preclinical trials. The leading candidate, LAVA-051, is scheduled to begin a Phase 1/2a clinical trial in the first half of this year, while a second candidate, LAVA-1207, will begin a Phase 1/2a trial during 2H21. These drug candidates are being developed as treatments for multiple myeloma and prostate cancer, respectively. LVTX shares entered the public markets on March 25, in an IPO that raised $100.5 million. The shares started trading at $15, and saw 6.7 million shares hit the market. Among the bulls is JPM analyst Jessica Fye, who likes the fundamental of this newly public stock. Fye rates LVTX an Overweight (i.e. Buy), and her $22 price target implies a robust upside potential of ~86% for the year ahead. (To watch Fye’s track record, click here) "Our Overweight rating is based on our positive view of the company’s proprietary platform, gamma-delta bsTCE, which redirects a specific group of T cells called gamma-delta T cells towards tumor cells. We see LAVA’s off-the-shelf bsTCEs, which can conditionally activate gamma-delta T cells in a tumor/antigen directed manner, as differentiated, potentially leading to a safer therapy and more durable benefit. To the extent that initial data for lead asset LAVA-051 begins to derisk the platform, we see upside for shares as soon as early 2022," Fye noted. In its short time on the public market, LAVA’s unique approach to cancer treatment has attracted notice from three Wall Street biotech analysts – and all three agree that this is a stock to buy, making the Strong Buy consensus rating unanimous. The shares are trading for $11.80, and their $23.67 average price target is even more bullish Fye allows, suggesting an upside of ~100% in the next 12 months. (See LVTX stock analysis on TipRanks) Zhihu (ZH) From biotech, let’s shift gears to online content. The net has given content creators a nearly unlimited field to work in, and Zhihu operates in the Chinese online content market. The company’s website is a question-and-answer forum, on the model of Quora, allowing users to pose questions to the community or offer replies. A look at some of the company’s numbers shows its size. By the end of December last year, Zhihu had a total of 43.1 million content creators, who has posted over 315 million questions and answers. The monthly average users (MAU), a key metric for any website, increased from 43.1 million in 4Q19 to 75.7 million in 4Q20. Zhihu held a US IPO on March 26, to raise capital for further operations and expansion. The company put 55 million shares on the American public markets, at $9.50 each. The IPO raised $522.5 million in gross proceeds, and Zhihu now shows a market cap of $4.58 billion. In their early trading, ZH shares faced pressure after a Securities and Exchange Commission ruling on accounting regulations. US law requires that accounting firms permit US regulators to review the financial audits of overseas companies, under threat of potential delisting from the US equity markets. The SEC ruling promises stricter enforcement of this provision. Even under this pressure, however, the Zhihu IPO was the third-largest by a Chinese company in the US markets so far this year. In an initiation of coverage report on Zhihu, JPM analyst Binbin Ding notes several factors that bode well for the stock, with two in particular standing out: “(1) Differentiated positioning. Unlike online content communities that are mostly entertainment-oriented, Zhihu is known for its depth of content and is recognized as the most trustworthy online content community in China (CIC survey). This positioning makes it the go-to platform for users seeking quality answers. (2) Diversified monetization models, including ads, membership, content-commerce solution, ecommerce and education. In particular, we believe Zhihu’s content-commerce solutions is an innovative model with significant potential growth upside…” Ding summed up, "We expect Zhihu to see a 112% top-line CAGR over 2020 to ’22E, driven by a 35% traffic CAGR and a 57% monetization CAGR. Such growth rates make Zhihu the fastest-growing digital content operator in our coverage universe." To this end, Ding gives ZH shares an Overweight (i.e. Buy) rating, along with a $16 price target that suggests room for an impressive 96% growth potential this year. (To watch Ding’s track record, click here) Ding's bullish stance on ZH is in line with Wall Street’s view. The stock has a Strong Buy consensus rating, based on 3 Buy ratings set in recent weeks. The shares are trading for $8.15, and their $15.23 average price target suggests ~87% upside for the year ahead. (See ZH 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.
The U.S. cannabis deal would give Florida’s dominant player a notable southwestern U.S. footprint. Trulieve (ticker: TCNNF) and Harvest Health (HRVSF) combined would be one of the largest cannabis companies in the world, in terms of sales. Combining analyst estimates for both companies puts the estimated 2021 revenue at $1.24 billion, only slightly below consensus estimates for Curaleaf (CURLF) at $1.26 billion.
(Bloomberg) -- Gas stations along the U.S. East Coast are beginning to run out of fuel as North America’s biggest petroleum pipeline races to recover from a paralyzing cyberattack that has kept it shut for days.From Virginia to Florida and Alabama, stations are reporting that they’ve sold out of gasoline as supplies in the region dwindle and panic buying sets in. An estimated 7% of gas stations in Virginia were out of fuel as of late Monday, according to GasBuddy analyst Patrick DeHaan.The White House said in a statement it is monitoring the situation and directing government agencies to help alleviate any shortages. Colonial Pipeline Co. said it’s manually operating a segment of the pipeline running from North Carolina to Maryland and expects to substantially restore all service by the weekend.The Colonial pipeline has been shut down since late Friday. On Monday, the Federal Bureau of Investigation pointed the finger at a ransomware gang known as DarkSide. While President Joe Biden stopped short of blaming the Kremlin for the attack, he said “there is evidence” the hackers or the software they used are “in Russia.”Colonial Chief Executive Officer Joe Blount and a top lieutenant assured Deputy Energy Secretary David Turk and state-level officials that the company has complete operational control of the pipeline and won’t restart shipments until the ransomware has been neutralized.The dwindling supplies come just as the nation’s energy industry was preparing to meet stronger fuel demand from summer travel. Americans are once again commuting to the office and booking flights after a year of restrictions. Depending on the duration of the disruption, retail prices could spike, further stoking fears of inflation as commodity prices rally worldwide.The U.S. East Coast is losing around 1.2 million barrels a day of gasoline supply due to the disruption, according to a note from industry consultant FGE.In Asheville, North Carolina, Aubrey Clements, a clerk at an Exxon Mobil station answered the phone with “Hello, I’m currently out of gas.” The Marathon gas station in Elizabethtown, North Carolina, had roughly two dozen cars waiting to fuel up, said an employee there. Drivers pulling into a station with a sign offering unleaded gasoline for $2.649 per gallon in Manning, South Carolina, were met with pumps covered in yellow and red “out of service” bags.Shortages are also hitting the aviation industry, forcing American Airlines Group Inc. to add additional stops to two long-haul flights originating from Charlotte, North Carolina. Airlines flying out of Philadelphia International Airport are burning through jet-fuel reserves and the airport has enough to last “a couple of weeks,’ a spokeswoman said.In an 18-minute virtual meeting, Blount said Colonial is working with refiners, marketers and retailers to prevent shortages, according to a person involved with the meeting who wasn’t authorized to speak publicly about the discussion. The pipeline serves 90 U.S. military installations and 26 oil refineries, the person said.The shutdown has prompted frenzied moves by traders and retailers to secure alternative supplies. Oil tanker charter rates skyrocketed in the U.S. with refiners scrambling for ships to store fuel that has nowhere to go.Emergency shipments of gasoline and diesel from Texas are already on the way to Atlanta and other southeastern cities via trucks, and at least two Gulf Coast refineries began trimming output amid expectations that supplies will begin backing up in the nation’s oil-refining nexus.The national average retail gasoline price rose to $2.967 a gallon on Monday, a 2.4% increase from Friday, according to AAA. The premium for wholesale gasoline in the New York area expanded to its widest in three months.Gasoline futures that initially surged as much as 4.2% earlier this week have since declined. Futures prices had gained more than 50% this year, helped by the recovery from the pandemic.The event is just the latest example of critical infrastructure being targeted by ransomware. Hackers are increasingly attempting to infiltrate essential services such as electric grids and hospitals. The escalating threats prompted the White House to respond last month with a plan to increase security at utilities and their suppliers. Pipelines are a specific concern because of the central role they play in the U.S. economy.Ransomware cases involve hackers seeding networks with malicious software that encrypts the data and leaves the machines locked until the victims pay the extortion fee. This would be the biggest attack of its kind on a U.S. fuel pipeline.DarkSide said in a post on the dark web that it wasn’t to blame and hinted that an affiliate group may have been behind the attack. The group promised to do a better job of screening customers that buy its malware.Government officials haven’t advised Colonial on whether it ought to pay the ransom, Deputy National Security Adviser for Cyber and Emerging Technologies Anne Neuberger said during a briefing.Learn more about how emergency powers can counter fuel-supply disruptions.“It’s an all-hands-on-deck effort right now,” said U.S. Commerce Secretary Gina Raimondo. “We are working closely with the company, state and local officials to make sure that they get back up to normal operations as quickly as possible and there aren’t disruptions in supply.”The White House pulled together an inter-agency task force to address the breach, including exploring options for lessening its impact, according to an official. Biden can invoke an array of emergency powers to ensure supplies keep flowing to big cities and airports along the East Coast.Some rules curbing domestic transportation of fuel have been eased to help deal with any shortages. That doesn’t extend to waiving the Jones Act, a measure that would allow foreign tankers to help shuffle more petroleum products between U.S. ports.The Northeast can secure gasoline shipments from Europe but it will come at an increasing cost the longer the pipeline stays shut. In the meantime, fuel producers including Marathon Petroleum Corp. are weighing alternatives for how to ship their products to the Northeast.Landlocked cities face the greatest danger of fuel shortages compared with those with access to water-borne deliveries, said Steve Boyd, senior managing director at Houston-based distributor Sun Coast Resources Inc. If the pipeline remains down for many more days, he’s anticipating a “massive surge” in orders.(Adds Virginia situation in second 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.
NEW YORK/LONDON/SINGAPORE (Reuters) -Cryptocurrency ethereum climbed to a new peak for a third straight day on Monday on continued optimism about further growth in decentralized finance or "DeFi", although some analysts said it was overvalued at current levels. Ethereum has soared this year, fuelled by the boom in DeFi, which are platforms that facilitate crypto-denominated lending outside traditional banking. Many DeFi applications are embedded in the ethereum blockchain.
Ether prices on the Ethereum blockchain have been steadily and quietly carving out new highs as buzz in the crypto has centered predominantly on the fervor around more speculative assets like dogecoin in recent weeks.
E.ON, Europe's largest energy networks operator, on Tuesday posted a 14% rise in first-quarter operating earnings after its British power retail division swung to a profit following a major overhaul. The company stuck to its 2021 outlook, still expecting adjusted core profit (EBITDA) of 7.2 billion to 7.5 billion euros ($8.7-9.1 billion) and adjusted operating profit (EBIT) of 3.8 billion to 4 billion euros. First-quarter adjusted EBIT at the group's closely-watched British retail, which includes the former npower unit it bought as part of the takeover of Innogy, came in at 84 million euros, compared with a 2 million loss in the same period last year.
(Bloomberg) -- Whatever caused the tech selloff, and inflation angst looks to be the likeliest culprit, evidence has been gathering for weeks that traders were bracing for declines.Short interest in the Nasdaq 100 exchange-traded fund, in free fall as recently as March, was surging before the index had its biggest plunge since March. Flows to the ETF were negative in April and would’ve been this month, too, if not for a jump on Friday. All told, about half a billion dollars has been drained from the QQQs this year.As the Nasdaq 100 -- trading at more than 5 times annual revenue -- dropped more than 2.5%, volatility in tech stocks jumped by the most since early March. With inflation expectations leaping to the highest level since 2006, everything from the biggest megacap tech stocks to the frothiest small fry was slammed. Futures on the Nasdaq 100 slid as much as 1.4% in early Asian trading on Tuesday.“Inflationary pressures are becoming harder to ignore,” said Adam Phillips, managing director of portfolio strategy at EP Wealth Advisors. “Although the jury is still out on whether this is merely a temporary issue, the prospect of inflation is leading investors to seek out areas that are better insulated from the threat of rising prices.”Duck and CoverThe breadth of the tech plunge made Monday particularly painful for bulls. Cathie Wood’s ARK Innovation ETF (ticker ARKK) sank 5.2% to the lowest since November as its biggest holdings nosedived, with the likes of Tesla Inc., Roku Inc. and Teladoc Health Inc. skidding. After an eye-watering 150% gain in 2020, ARKK has dropped 16% so far this year.But damage wasn’t limited to tech’s speculative fringe. The New York Stock Exchange FANG Index fell 3.6%, putting the gauge on track for its worst month since March 2020. With inflation threatening to break higher, the cohort’s expensive valuations are growing increasingly harder to justify. Alphabet shares are trading at eight times revenue, the highest in more than a decade, according to data compiled by Bloomberg, while Facebook’s price-to-sales multiple is nine -- nearly twice that of the average Nasdaq 100 company.Roaring BearsBears boosted bets against tech stocks as the industry’s leadership faltered amid a flight to the reflation trade. Short interest on the biggest ETF tracking the Nasdaq 100, or QQQ, increased to 3.6% of the stock outstanding, the highest level since August and up from 0.9% in December. The spike in bearish wagers stood out in a market where shorts have collapsed amid the S&P 500’s 88% rally since the pandemic trough in March 2020.Meanwhile, after several years of one-way flows, investors are starting to pull cash from the $161 billion Invesco QQQ Trust Series 1 ETF. The fund has bled roughly $425 million so far in 2021, after absorbing nearly $17 billion in 2020 -- the second-biggest haul on record. The ETF is on track for its first yearly outflow since 2016.Troubling TechnicalsCharts on the Nasdaq 100 look precarious. In the short term, the gauge is approaching its average price over the 100 days, a trend line that sits within 0.1% of the index’s current level and has served as support during the selloff in last November and again in March. A sustained breakdown in late 2018 and March 2020 foreshadowed losses that exceeded 20% from peak to trough.Viewed from a wider lens, the picture is no better. Plot the Nasdaq’s relative altitude versus the S&P 500 shows the ratio has fallen back below its 2000 peak again. Its failure in March to hold above that resistance was flagged by DoubleLine Capital LP founder Jeffrey Gundlach as a sign that another collapse may be in store.Cooling CallsWhile none of the data shows significant jumps in bearish sentiment, it’s consistent with a backdrop in which the extreme bullishness that has marked the last 14 months shows signs of subsiding. That may make sense after the index’s 92% gain since its pandemic low.The largest companies, loosely known as Faamg, last September saw day traders flocking to bullish options for quick profits. That demand has since waned, with their combined call open interest falling almost a third from the peak, data compiled by Bloomberg show.(Adds Nasdaq futures move in the third 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) -- Honest Co.’s shares tumbled again on Monday, extending a slide just days after the consumer-goods company started by actress Jessica Alba made a splashy debut in the public markets.A decline of as much as 13% sent the shares as low as $16.52, approaching the initial public offering price of $16 on May 4. After soaring 44% on its first day of trading, the stock declined more than 7% in the next two sessions and was on pace Monday for its third straight drop.The slump is an inauspicious start for a company looking to capitalize on elevated demand for packaged-goods and cleaning supplies during the pandemic. Alba, who co-founded the direct-to-consumer brand in 2011 and now serves as chief creative officer, brought some Hollywood glamour to the IPO last week with multiple media appearances.There have been hints that the pandemic boom is starting to subside for packaged goods, with some peers reporting higher costs and uneven demand trends recently. Data and research company New Constructs called Honest “overvalued” and said the stock is “worth no more than $7” a share.Honest didn’t immediately reply to a request for comment.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.
Winklevoss-owned crypto exchange Gemini announced on Sunday that investors holding Dogecoin (CRYPTO: DOGE) could earn 2.5% APY through Gemini Earn. What Happened: “With our trading and custody support for DOGE, we are the only regulated exchange in the U.S. where you can trade and earn interest on DOGE in all 50 states,” said Gemini. Available to investors in the U.S and Singapore, daily interested generated on Dogecoin will be added to the amount held on the platform. Investors would be able to withdraw and deposit their DOGE with relative ease, given that Gemini Earn doesn’t charge fees or require a minimum investment amount. Why It Matters: The exchange only recently listed DOGE on its platform, adding that “Dogecoin is no joke.” “Dogecoin continues Bitcoin’s tradition of giving the control of money back to the people. Yes, it’s a meme coin, but all money is a meme,” said Gemini CEO Tyler Winklevoss in a blog post. Winklevoss also stated that recent demand for the cryptocurrency had outstripped its supply, resulting in its price reaching unprecedented highs. “The people are speaking,” he said. In fact, if Google search volume is any indication of retail interest, then Winklevoss’s comments stand true as Dogecoin recently outpaced Bitcoin for the first time. In absolute terms, Dogecoin recorded a higher level of interest than Bitcoin hitting a peak popularity of 100/100 while Bitcoin stood at 69/100 for the period between May 2 and May 8, 2021. Price Action: Dogecoin regained support above $0.50 after a disappointing SNL weekend saw the cryptocurrency dip over 30% on Saturday. At press time, the cryptocurrency was trading at $0.4487, down 23.75% in the past 24-hours. Image: MazRx on Wikimedia Commons See more from BenzingaClick here for options trades from BenzingaEthereum (ETH), Cardano (ADA), Binance Coin (BNB) Set All-Time Highs As Bitcoin Dominance DropsNFL's First Crypto Partnership: New York Giants And Grayscale Investments© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
President Biden has proposed taxing capital gains like ordinary income for those with incomes over $1,000,000. In addition to paying for his agenda, this proposal will make the federal income tax fairer, by ensuring that the wealthy pay their appropriate share of the tax bill, and more efficient, by eliminating the incentive to transform high-taxed ordinary income to low-taxed or untaxed capital gains.
Dogecoin's stratospheric run was in jeopardy early Sunday, with the popular crypto unwinding a chunk of its recent rally.
Are we seeing some signs of danger in the markets? At first glance, it wouldn’t seem so. The S&P 500 is sitting just below its record high, as is the Dow Jones average. The big tech giants – Amazon, Apple, Alphabet, Facebook, and Microsoft – all posted great results in their recent earnings reports. And yet, they are leading the declines in the NASDAQ. According to Morgan Stanley equity strategist Michael Wilson, we’re in for a volatile ride, at least in the near-term. "With the S&P 500 making new highs every day, few seem worried... rather than getting excited about reopening, we are getting more concerned about execution risk and what’s already priced in,” Wilson noted. “Whatever correction the market experiences this year, we are likely to make higher highs next year. The goal as an investor is to navigate the... transition, avoid the stocks with the biggest drawdowns and be in position to capture the next leg." So, let’s take this advice, and look for ways to protect the portfolio in the short term while staking a position for the longer term. That’s a strategy which will naturally draw investors toward dividend stocks, the classic defensive play. We’ve used the TipRanks database to pull up two dividend players that combine a Strong Buy sentiment from Wall Street with a yield of at least 7%. Let's take a closer look. New Residential Investment (NRZ) We’ll start with a real estate investment trust (REIT), since these companies have a reputation as solid dividend payers. That’s in part an artifact of their position in regard to tax regulation; they are required to return a certain percentage of profits directly to shareholders, and the dividend is often a convenient vehicle for compliance. New Residential Investment is typical of its sector, holding a $6 billion investment portfolio, of which just over half is mortgage servicing rights. In its recent 1Q21 financial release, New Residential showed a net income of $301 million, up from $101 million at the end of Q4. The company declared a quarterly dividend of 20 cents per share; the payments totaled $82.9 million. At the declared rate, the dividend annualizes to 80 cents per common share, for a yield of 7.5%. This compares favorably to the ~2% yield found among S&P-listed companies. NRZ shares are up 77% in the past 12 months, gaining as the company switched from net losses at the height of the corona crisis to profitability in the last four quarters. To take advantage of the share appreciation, and to raise additional capital, the company announced a public offering of shares in April. The sale generated gross proceeds of $522.4 million on 51.7 million shares sold. The funds raised were used to acquire Caliber Home Loans, with plans to integrate the acquisition into NRZ’s wholly owned mortgage origination service. The transaction is expected to close in Q3 of this year. Covering the stock for BTIG, analyst Eric Hagen writes: “[We] think the company has the capital to be acquisitive in bulk sales transactions as some originators potentially look to offload more thinly capitalized MSRs if origination volume slows more meaningfully. It confirmed the $500 million of capital raised in connection to the Caliber deal was about $0.15 dilutive to NAV, so book is around $11.20. The stock is less than 0.93x book, and about 6.5x forward earnings assuming a 15% ROTCE.” Hagen rates NRZ a Buy, and his $13 price target implies a 25% upside for the year ahead. (To watch Hagen’s track record, click here) Hagen is no outlier in his bullish opinion here. Of the 10 recent analyst commentaries on this stock, 9 recommend it to Buy, against a single Hold. The $12.69 average price target is almost as bullish as Hagen’s, and suggests an upside of ~22% from the current trading price of $10.38. (See NRZ stock analysis on TipRanks) Enterprise Products Partners (EPD) We’ll switch gears now, and take a look at an energy company. Specifically, a midstream company. Enterprise Products Partners controls over 50,000 miles of pipelines, along with facilities capable of storing 160 million barrels worth of oil and 14 billion cubic feet of natural gas. In addition, Enterprise has shipping terminals in the state of Texas, on the Gulf Coast. As the US economy has reopened, demand for fuel has increased – which in turn increased the flow of fuel through Enterprise’s system. The company’s financials have been rebounding since the second half of last year, and the recent 1Q21 report showed $9.1 billion at the top line, the best result in the last two years. EPS came in at 61 cents per share, flat year-over-year, but higher than the last three quarters. Enterprise declared a Q2 dividend of 45 cents per common share, the second quarter in a row at this level. The current payment is backed by the company’s $1.7 billion in distributable cash flow. The annualized payment of $1.80 per common share gives a yield of 7.7%. Among the bulls is Raymond James analyst Justin Jenkins, who sets a Strong Buy rating on EPD shares, along with a $26 price target. (To watch Jenkins’ track record, click here) Backing his stance, Jenkins writes: “While Enterprise (EPD) has not been immune to energy industry challenges, the asset base has continued to show resilience in the difficult environment. Looking forward, EPD's unique combination of integration, balance sheet strength, and ROIC track record remains best in class, in our view. We see EPD as arguably best positioned to withstand the volatile landscape... This is a compelling opportunity for entry into ownership of one of the best positioned MLPs…” Overall, Wall Street’s analysts are sanguine about EPD’s path forward, as evidenced by the unanimous Strong Buy consensus rating, supported by 8 Buy recommendations. The average price target, at $28.75, is more bullish than Jenkins’ and suggests a one-year growth potential of 24% for EPD. (See EPD’s stock analysis at TipRanks) To find good ideas for dividend 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.