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2024-01-19 18:26:29+00:00

{"Bitcoin": [670, 2709, 10841, 11372]}

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Wall Street Counterattack on Gensler Hits SEC’s Foundations

https://finance.yahoo.com/news/wall-street-counterattack-gary-gensler-113020283.html

Bloomberg

https://www.bloomberg.com/

(Bloomberg) -- The fake news, supposedly from the SEC, arrived at precisely 4:11 pm. The real news, from Gary Gensler, came 15 minutes later. Most Read from Bloomberg Hedge Funds Rake in Huge Profits Betting on Catastrophe Risk Putin Orders Hunt for Property of Russian Empire, Soviet Union Burger King Is Serving Whoppers With a Side of Cringe The Easy Money Has Already Been Made in Bonds UAE Warns US Time Running Out to Avoid Wider Mideast Crisis The official X account of the Securities and Exchange Commission somehow had been hacked, the SEC chair tweeted flatly from his personal account. An earlier post on @SECGov, claiming the commission had approved several Bitcoin investment products, was false — possibly a ploy to manipulate the cryptocurrency. “MY DUDE HOW ARE YOU GOING TO PROTECT CRYPTO INVESTORS WHEN YOU CAN’T EVEN PROTECT YOUR TWITTER ACCOUNT,” came one reply to @garygensler. It wasn’t how Gensler, a longtime crypto-skeptic, wanted this one to go. But then, cryptocurrencies and cybersecurity are only two of the sharp objects he’s juggling nowadays. When Gensler arrived at the SEC in 2021, he took on just about everything. His message: Let the sunshine in. Rules for stock-market trading, Treasury-security clearing, executive-pay disclosures, private equity, crypto, short-selling, climate-change risks, even AI: nothing seemed off limits. That was then. Nearly three years later, Wall Street’s counterattack, in the form of lawsuits challenging the commission and its powers, is striking at the very foundations of the SEC. To Big Finance, the verdict is clear: Gary Gensler overreached. Now, the mighty Securities and Exchange Commission, his critics say, not unkindly, will pay a price for his ambition. It doesn’t help that other federal agencies have sometimes felt slighted by Gensler’s muscular SEC. Or that many Republicans have grown weary of him. Even recently departed commission staff wonder whether rules that have been months or even years in the making will end up getting tossed out by the courts, leaving the commission weaker than Gensler found it.The SEC said in a statement that Gensler’s agenda is to make US capital markets more efficient, competitive, resilient and boost their integrity. The commission added that it maintains “strong relationships with our regulatory partners across the government,” and benefitted from working with several on newly adopted rules for clearing Treasuries. Regulations passed during Gensler’s tenure are already “benefitting investors and issuers alike,” it said. Story continues The Jan. 9 hack and the chair’s please-disregard-this tweet -- followed, the very next day, by official word that the SEC would, in fact, okay Bitcoin exchange-traded funds — only stoked the fire. (The SEC has been pushing public corporations to improve their own cybersecurity.) “I do think the SEC chair, Gary Gensler, is a political liability in the United States,” Brad Garlinghouse, head of crypto company Ripple, told CNBC on Jan. 16. “And I think he’s not acting in the interests of the citizenry, he’s not acting in the interests of the long-term growth of the economy, and I don’t understand it.” (Ripple and the SEC have been fighting about crypto products since late 2020, before Gensler’s tenure.)Garlinghouse’s rebuke highlights the battle Gensler’s waged as head of an agency that views the cypto industry as flagrantly noncompliant with its rules. “Crypto firms should do their work within the bounds of the law, or they shouldn’t do it at all,” the agency said in its statement.The collapse of crypto giant FTX in late 2022 bolstered Gensler's case that the digital-asset industry needs more guardrails. The attacks on the chair's agenda were always expected, said Andrew Park, senior policy analyst at Americans for Financial Reform, a consumer advocacy group. "In many cases you have a lot of long-running loopholes that are being addressed," he said. "Many have been very profitable." Sitting in his sunlit Washington office, the walls adorned with black-and-white photos and family art, Gensler, who at 66 still has a marathoner’s build, waves off critics and questions about the future. He says what he so often has since becoming the face of Wall Street regulation in the Biden era: Protecting investors is good for the country. “Ultimately, we are here for the investors and the issuers and trying to drive greater competition and efficiency in that market in the middle,” Gensler says. Nearly everyone who follows Gensler says he wants to go down as the most consequential SEC chair since Joseph Kennedy. Which is saying something, seeing as Joe Kennedy, father of JFK, was the very first chair of the SEC, the one brought in during the dark days of the Depression to root out fraudsters and get-rich-quick schemers and restore America’s faith in Wall Street. Gensler insists, over and over, that he’s not racing any clock. But after one career on Wall Street, and well into a second in Washington, time is short. Other famed Goldman Sachs Group Inc. alums — Hank Paulson, Lloyd Blankfein, Gary Cohn, to name a few — have moved on, retired richer. But Gensler is still hoping for a shot at history. If former President Donald Trump or another Republican wins the White House in November, Gensler, like many Democrats, will likely be forced to move on. If President Joe Biden prevails, Gensler might serve out his SEC term into 2026, at which point he’ll be pushing 70. Either way, Gensler will almost certainly leave Washington without ever getting the job many suspect he’s always burned for: US Treasury Secretary. It hasn’t been for lack of ambition or experience. He spent nearly two decades at Goldman. Then as a Treasury undersecretary, head of the Commodity Futures Trading Commission and now SEC chair, Gensler has thrived at the nexus of Wall Street and Washington, where he’s been responsible for crafting the rulebook for the financial services sector. The SEC said the suggestion that Gensler secretly wants to be Treasury Secretary is being used by opponents to attack his policy agenda. “As Chair Gensler has said multiple times, he couldn’t be more honored to be the SEC chair,” the agency added. Former staff describe Gensler as an intense leader, pushing people to move faster, closing off backdoor channels to finance-industry lobbyists (many of them former SEC staffers) and discouraging gossip, that valuable Washington currency. In fact, the SEC inspector general said in a 2022 report that Gensler’s grueling pace was adding to agency-wide burnout. That, plus staff attrition, might expose SEC rules to legal challenges down the road, the report concluded. A follow-on IG report noted that 2023 was the year that external hires significantly surpassed departures. An outside nonprofit group also has ranked the SEC as the third best mid-size federal agency to work at. Gensler contends the commission had to move quickly. The financial industry has faced “consequential, existential issues” since the onset of the Covid-19 pandemic, he said in the recent interview. Any SEC chair would’ve been obligated to respond, he adds. Respond, Gensler has, with a rule-making agenda packed with 50-odd items. More than half of those plans have been finalized, and most haven't been challenged in court. Going forward, the commission will stay within the “chalk lines” set by courts, Gensler said in the interview, while noting Congress has granted the SEC “strong authorities.” The SEC undertakes rulemaking “consistent with its authorities and laws governing the administrative process,” the agency added in its statement. “We will vigorously defend challenged rules in court.” Wall Street tends to complain that rules just get in the way, at least when its profits are at stake. Industry lobbyists warn regulation will strangle capitalism’s animal spirts. “What will markets look like in two years, when all these rules come online?” asks Bryan Corbett, the CEO of the Managed Funds Association, a hedge-fund trade group. For the first time in its three-decade-long history, the MFA has sued the SEC to block proposed regulations, including one requiring short-sellers to disclose more about their positions. The MFA isn’t the only one complaining about onerous regulation. Corporate America has a sympathetic ear these days from conservative jurists wary of federal overreach. A new Supreme Court case about fishing regulation could have big ramifications for federal agencies like the SEC and their power to police finance, healthcare, consumer safety and more. Jill Fisch, a professor at the University of Pennsylvania School of Law, says the SEC today risks getting caught up in the broader backlash. “We have a court that’s expressed concern about the administrative state,” Fisch says. The Supreme Court has signaled it might cut back on federal agencies’ discretion and power, she says. If the courts curtail the SEC’s powers to protect investors, mandate disclosures and promote transparency, the implications for US capital markets could be enormous, Fisch says. Gensler, for instance, wants to require everyone from Walmart to oil majors to disclose more about carbon emissions — a potentially monumental legal headache. He’s also raised questions about how stocks are traded. The SEC has proposed rules designed to ensure that Wall Street firms aren’t taking advantage of individual investors. Those rules would require trades to be routed to exchanges for public auctions, rather than to wholesalers like Citadel Securities, part of the financial empire led by Ken Griffin. Gensler’s allies say the market reforms are long overdue. “The best regulatory approach is to identify and solve problems before they ripen into a crisis,” said Stephen Hall, legal director at Better Markets, a Washington advocacy group that’s often allied itself to Gensler’s initiatives. Predictably, Griffin and his like have a different view. “That’s a great example of a solution — in this case it’s an anti-solution — in search of a problem,” Griffin said of the proposal at an industry conference in November. In Washington and on Wall Street, some people are already speculating about Gensler’s future and what the commission might look like without him. During his time at the 5,000-person strong SEC and before, Gensler has at times tapped early-career lawyers and personnel who share his vision for change and market transparency, people who’ve worked with him say. That’s handed those people a big opportunity. Sometimes, however, the tactic has come at the expense of staff who have more experience implementing policy and navigating legal challenges, the people said. Given the legal winds — and the political ones ahead of the November election — Gensler will have to work hard just to stay the course he’s charted. The fake news about Bitcoin ETFs was embarrassing. Few are completely happy with how Gensler has handled crypto — or any number of other issues. But as Gensler sees it, he’s already notched several wins in his transformative agenda. “I’m feeling really good about the progress we’ve made,” he says. (Updates with analyst comment in 13th paragraph. An earlier version corrected spelling of the Commodity Futures Trading Commission.) Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P.

2024-01-19 18:26:44+00:00

{"Bitcoin": [598]}

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Stock market today: US futures advance as chipmakers shine; oil rises

https://finance.yahoo.com/news/stock-market-today-us-futures-182644003.html

Business Insider

https://www.businessinsider.com/

US stocks futures were upbeat in early trades, tracking gains in Japanese and European markets. Chipmakers including Texas Instruments, AMD, and Nvidia led premarket gains among S&P 500 stocks. Oil prices were on track for a weekly gain amid lingering concerns about tensions in the Middle East. US stock futures rose in Friday's early trades, after European and Japanese markets extended advances led by tech names. Texas Instruments, Microchip, AMD, and Nvidia topped the S&P 500 risers in premarket trading, while Estee Lauder, O'Reilly Automotive, and Dominion Energy were among the decliners. Bitcoin traded near a one-month low in the absence of fresh catalysts, while the dollar held near the highest level since mid-December. Crude oil prices extended gains amid lingering fears that geopolitical tensions in the Middle East could disrupt supply. Market overview: Futures on the S&P 500 index climbed 0.3% to 4,825 points as of 4:55 a.m. ET, while similar contracts on the Nasdaq 100 gained 0.6% to 17,207.75. European stocks remained in the green, with the Euro Stoxx 50 rising 0.3%. Germany's DAX 40 index was 0.2% higher and France's CAC 40 edged up 0.1%. Trends were more mixed across Asian markets. Hong Kong's Hang Seng index and the Shanghai Composite fell 0.5% each, but Japan's Nikkei 225 rallied 1.4% to 35,963.30. India's Nifty 50 rose 0.7%. In the crypto market, bitcoin was at $41,341, trading in a tight range after Thursday's 3.4% sell-off. Ether was a tad higher at $2,478.50. The Dollar Index, which tracks the greenback against a basket of currencies, was stable near the highest level in more than a month. Ten-year Treasury yields edged higher to 4.14%. Brent crude oil rose 0.7% to $79.63 a barrel. Read the original article on Business Insider

2024-01-19 18:57:40+00:00

{"Bitcoin": [3344]}

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Bankruptcy Judge Lets Giuliani Challenge $148 Million Judgment

https://finance.yahoo.com/news/bankruptcy-judge-lets-giuliani-challenge-185740594.html

Bloomberg

https://www.bloomberg.com/

(Bloomberg) -- Former New York mayor Rudy Giuliani won bankruptcy court permission to challenge a $148 million judgment over false claims he made against two Georgia election workers, but faces long odds if he moves to get the financial penalty excused in Chapter 11. Most Read from Bloomberg Hedge Funds Rake in Huge Profits Betting on Catastrophe Risk Putin Orders Hunt for Property of Russian Empire, Soviet Union Trump’s 2016 Win Shook Markets. Traders Won’t Get Fooled Again. Burger King Is Serving Whoppers With a Side of Cringe The Easy Money Has Already Been Made in Bonds US Bankruptcy Judge Sean Lane said Friday during a hearing in White Plains, New York that Giuliani can request a second trial in federal court over damages he owes poll workers Ruby Freeman and Wandrea’ ArShaye “Shaye” Moss, whom Giuliani falsely accused of rigging the 2020 election for Joe Biden. Giuliani’s legal fees in the defamation action will be covered by a legal defense fund, his bankruptcy lawyer said. Friday’s decision is more limited than what Giuliani sought, but allows him to seek a reappraisal of amounts he owes Freeman and Moss. Still, the federal judge overseeing the defamation case could deny the request. Giuliani had to ask his bankruptcy judge’s permission to seek a new trial because insolvency rules pause all the lawsuits he’s facing and prevent Freeman and Moss from immediately collecting their judgment against him. Friday’s hearing was the first in his insolvency proceedings. Giuliani’s bankruptcy lawyer, Gary Fischoff, said the former mayor has limited assets, which include some real estate, retirement accounts and income from his radio and podcast show. Besides the judgment, Giuliani faces a $1.3 billion defamation lawsuit brought by Dominion Voting Systems over false claims he made alleging the company used its voting machines to rig the 2020 election. “There is not pot of gold at the end of the rainbow,” Fischoff said in the hearing. Judge Lane also indicated Giuliani will face obstacles if he ultimately tries to use bankruptcy to excuse the judgment. Giuliani conceded in a stipulation that he published defamatory statements against Freeman and Moss that were false, their lawyer, Rachel Strickland, said during the hearing. And Giuliani has continued to make false statements about her clients online, Strickland said. Strickland described the $148 million judgment as a “self-inflicted wound” because Giuliani, a former federal prosecutor, ignored his legal discovery obligations during the defamation case and flouted court orders. Giuliani has said in court papers that he believes the amount of the judgment is unreasonably large. Story continues Generally, bankruptcy law doesn’t let litigants like Giuliani use Chapter 11 to discharge judgments or other debt arising from wrongdoing. Judge Lane said Friday that the stipulation Giuliani signed appears to use legal language that specifically protects the election workers’ judgment from a potential Chapter 11 discharge. “This is not about politics at all,” Strickland said. “He said and did despicable things.” The case is Rudolph W. Giuliani, 23-12055, in the U.S. Bankruptcy Court for the Southern District of New York (Manhattan). Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P. View comments

2024-01-19 19:13:33+00:00

{"Bitcoin": [1628]}

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Chevron Seeks to Sell Duvernay Shale Assets After Hess Purchase

https://finance.yahoo.com/news/chevron-seeks-sell-duvernay-shale-191333982.html

Bloomberg

https://www.bloomberg.com/

(Bloomberg) -- Chevron Corp. has begun marketing its Duvernay shale holdings in Alberta as the oil giant divests assets following its agreement to buy Hess Corp. Most Read from Bloomberg Hedge Funds Rake in Huge Profits Betting on Catastrophe Risk Trump’s 2016 Win Shook Markets. Traders Won’t Get Fooled Again. Putin Orders Hunt for Property of Russian Empire, Soviet Union Burger King Is Serving Whoppers With a Side of Cringe The Easy Money Has Already Been Made in Bonds Chevron plans to shed all of its 70% stake in the Western Alberta oil and natural gas play, spokesman Braden Reddall said in an email. Other assets in Canada won’t be affected. The company inked a $53 billion deal to acquire Hess in October. “Chevron will be soliciting and reviewing expressions of interest, but there are no assurances of any sale,” Reddall said. Chevron has been one of the largest drillers in the Duvernay, a rich producer of condensate, light oil and gas. The company is looking to sell as much as $15 billion of assets by the end of 2028 in an effort to “high-grade” its portfolio and focus capital spending on the most productive areas, such as the Permian Basin and Guyana. The California-based company is looking to step up performance this year after its stock tumbled 17% in 2023, worse than its supermajor peers. It faced a multitude of operational difficulties, ranging from refinery disruptions to lower-than-expected Permian production to cost increases at its $45 billion Tengiz project in Kazakhstan. Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P.

2024-01-19 19:30:08+00:00

{"Bitcoin": [4169]}

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Pakistan, Iran Ease Tensions After Tit-for-Tat Missile Strikes

https://finance.yahoo.com/news/us-china-urges-calm-pakistan-074146363.html

Bloomberg

https://www.bloomberg.com/

(Bloomberg) -- Pakistan and Iran said they’re aiming to defuse tensions, amid calls for restraint from the US and China after the neighboring nations exchanged missile strikes. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Presidential Race Hedge Funds Rake in Huge Profits Betting on Catastrophe Risk Trump’s 2016 Win Shook Markets. Traders Won’t Get Fooled Again. Putin Orders Hunt for Property of Russian Empire, Soviet Union Burger King Is Serving Whoppers With a Side of Cringe Pakistan Foreign Minister Jalil Abbas Jilani and his Iranian counterpart Hossein Amir-Abdollahian spoke Friday, according to separate statements. Pakistan said the two agreed to de-escalate the situation and discussed the return of ambassadors to their respective capitals. Iran stressed the “sovereignty and territorial integrity” of its neighbor and said the two must cooperate to neutralize and destroy “terrorist camps” in Pakistan. After the strikes this week, diplomats from Washington to Beijing urged the countries to show restraint and avoid the situation spiraling out of control at a time of rising turmoil in the Middle East over the Israel-Hamas war. The Biden administration spoke out after Pakistan’s army responded to an attack by Iran on militant hideouts with its own missile strikes. “We don’t want to see this conflict escalated in any way, shape, or form,” Matthew Miller, the State Department spokesperson, said at a briefing Thursday. “There’s no need for escalation, and we would urge restraint on all sides in this case.” Miller’s comments came after China’s Foreign Ministry spokeswoman Mao Ning said Beijing was tracking the developments and urged the two countries to avoid making matters worse. China, an economic and military ally of Pakistan and Iran, has been seeking to expand its geopolitical reach. “We have repeatedly said Iran is a friend,” Pakistan Foreign Ministry spokeswoman Mumtaz Zahra Baloch said by phone earlier on Friday. “We do not want an escalation and we also got similar kind of sentiments from their side. So we are taking it further.” Story continues The attacks began earlier this week when Tehran launched air strikes against Jaish al-Adl, a separatist group that it says is based in Pakistan’s Balochistan province. Iran’s foreign minister said in his Friday statement that the missile strikes were necessary to thwart a planned attack on Iran involving more than 50 militants. Beyond its own retaliatory strikes, Pakistan also downgraded its diplomatic ties with Iran. Pakistan also on Friday called a meeting of its National Security Committee, which said in a statement that the two nations would mutually overcome “minor irritants through dialogue and diplomacy and pave the way to further deepen their historic relations.” United Nations Secretary-General Antonio Guterres urged both countries to address their security issues peacefully. Pakistan and Iran share a porous frontier dominated by militant groups including Jaish al-Adl. It has launched multiple attacks on Iranian security forces, most recently a December assault on a police station that killed 11 people. After this week’s flare-up, Turkey offered to help defuse tensions, with Foreign Minister Hakan Fidan shuttling through calls with his Pakistani and Iranian counterparts. Taliban-ruled Afghanistan also asked Pakistan and Iran, both of which it borders, to resolve their differences through diplomatic channels. The strikes hit less than a month before Pakistan heads into national elections on Feb. 8. Interim Prime Minister Anwaar-ul-Haq Kakar cut short his visit to Davos as the crisis unfolded. Pakistan’s major rival, India, was silent on the retaliatory strikes Thursday, although Randhir Jaiswal, a spokesman with India’s External Affairs Ministry, said after Iran’s action that “we understand the actions that countries take in their self defense.” --With assistance from Sudhi Ranjan Sen, Eltaf Najafizada and Kamran Haider. (Recasts story to incorporate statements from Pakistan and Iran after talks.) Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P.

2024-01-19 19:34:44+00:00

{"Bitcoin": [6113]}

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Apple Vision Pro Deliveries Delayed to March in Sign of Early Demand

https://finance.yahoo.com/news/apple-first-taste-consumer-demand-050100149.html

Bloomberg

https://www.bloomberg.com/

(Bloomberg) -- Apple Inc. began taking preorders for its long-awaited Vision Pro mixed-reality headset on Friday, and early indications suggest that buyers are snapping up initial supplies of the $3,499 device. Most Read from Bloomberg China Weighs Stock Market Rescue Package Backed by $278 Billion Netflix Pays $5 Billion for ‘Raw’ in Bet on Live Events An Isolated Israel Doubles Down on War in Gaza — At All Costs India Tops Hong Kong as World’s Fourth-Largest Stock Market Hong Kong Stocks at 36% Discount Show True Depth of China Gloom The product went on sale at 8 a.m. Eastern time on Apple’s website and mobile app, ahead of its rollout on Feb. 2. Delivery dates for all three models quickly slipped to March 8-15 for online orders, and the device was sold out for in-store pickup on day one at many locations. The delay signals that either demand is strong or supplies are limited — or something in between. Apple shares gained as much as 1.8% to $191.95 Friday in New York, erasing most of its 2% decline for January. With the launch, the company disclosed two additional configurations: a version with 512 gigabytes of storage for $3,699, and a top-end model with 1 terabyte of space for $3,899. The base model includes 256 gigabytes of storage. The company also said it would sell a carrying case for $199 and additional batteries for $199, while extra bands will cost $99 a piece. The purchasing process for the Vision Pro is unique. Customers need to use a recent iPhone or iPad to scan their head and, if necessary, provide a vision prescription. Apple typically doesn’t comment on the sales performance of new products. Wall Street analysts are predicting a slow start for the device. UBS Group AG analyst David Vogt expects Apple to ship 300,000 to 400,000 units this year, generating as much as $1.4 billion. For a company that had sales of $383 billion last year, that’s “immaterial.” Read More: Apple Headset Lacks Blockbuster Buzz Needed to Energize Shares Still, the idea is to set the stage for something bigger. Apple is entering its first major new product category since the company began selling smartwatches in 2015, and the Vision Pro may take years to catch on. Apple will continue to refine the headset — making it cheaper and more comfortable — and find compelling applications for the device. In the longer run, Apple could use a fresh moneymaker. The smartphone market has matured, and it’s under particular pressure in China. The company’s revenue has fallen for four straight quarters — its longest streak of declines in more than two decades. Story continues Initially, the Cupertino, California-based company only plans to sell the Vision Pro in the US, with launches in other markets coming in the months ahead. The company is eyeing the UK, Canada and China as some of the first other countries, Bloomberg News has reported. It’s a complex product to manufacture, which could limit early supplies. The dual 4K resolution displays in the headset, which melds virtual and augmented reality, have suffered production snags. But the fact that Apple has been ramping up manufacturing for months suggests that it will be able to satisfy initial demand. The company is also offering a 25% discount on the device for employees, signaling that supplies aren’t too tight. Inside Apple, executives are anticipating a strong opening weekend, with sales tapering off later. At $3,499, the Vision Pro is one of the priciest consumer headsets ever — about seven times more expensive than the latest device from VR market leader Meta Platforms Inc. The Vision Pro also will be a hard product to share with family and friends. It requires a precise fitting process to ensure a good experience. The face scan is designed to determine the best light seal and strap size for users. The company has prepared 25 different light seals — a cushion that prevents light from seeping into the wearer’s field of view — in addition to two straps. There also are prescription lens inserts, at an additional cost. And the headset may be hard for some people to wear for extended periods. In early testing, some users have found it to be too heavy. Another concern that’s cropped up in recent days is a lack of support from top streaming apps. Netflix Inc., Spotify Technology SA and Google’s YouTube are opting not to release software for the device, at least at launch. But Apple has carefully refined its sales pitch for the headset. When consumers try it out at Apple retail stores, they’ll get a 25-minute demo, letting them get comfortable with the 3D experience that the company calls “spatial computing.” To commemorate the launch, Apple executives Mike Rockwell and Alan Dye discussed the device in a Q&A shared with employees this week. A key focus, said Dye, was ensuring that the Vision Pro didn’t have a closed-in feel — a complaint with VR headsets. “From the onset, we all had concerns about people sitting with their eyes covered and disconnected from the world,” he said. “It really became central to how we thought about the core principles of the product.” That led to the EyeSight system, which can show a wearer’s eyes through a screen on the front of the Vision Pro. “It was a huge technical challenge to do this in a way that looks and feels natural,” Rockwell said. Apple also developed an interface that doesn’t require handheld accessories. Instead, it tracks eye movement and hand gestures. Users control the device by looking at an on-screen item and pinching their fingers together to select it. One of the biggest selling points may be how easy it makes collaboration, Rockwell said. Users in far-flung locations can feel like they’re in the same place. “It’s the closest thing to being there in person that you can possibly have,” Rockwell said. “It changes the way you collaborate and is very different from videoconferencing as we know it.” (Updates with shares in third paragraph.) Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine Should I Tell My Colleagues (or My Boss) About My Bipolar Diagnosis? The Bitcoin Hype Is Back and About Just as Hollow as Before ©2024 Bloomberg L.P. View comments

2024-01-19 20:02:45+00:00

{"Bitcoin": [3752, 4051, 4168, 6638]}

{}

Gaming Gift Cards Are Like Crypto – and Not in a Good Way

https://finance.yahoo.com/news/gaming-gift-cards-crypto-not-200245514.html

CoinDesk

https://www.coindesk.com

In crypto – especially in the category of blockchain interoperability – we think a lot about fragmented currencies: ETH providing security across multiple layer-2s; USDC in multiple, non-fungible wrapped versions (abcUSDC, xyzUSDC). So-called real-world assets also experience similar fragmentation: a dollar in your pocket is not the same as a dollar in the bank. Take gift cards. You’re probably holding a few after the holidays and if you are, you’re not alone. A Bankrate survey earlier this year estimated $23 billion is sitting in unused gift cards across the US. That’s about 0.1 percent of the M2 money supply . Stripping away the colorful plastic packaging, gift cards are a number, some 16 to 30 digits in length, that provides access to a digital equivalent of cash. They’re somewhere between cryptocurrency and a debit card: not as secure or uncensorable as bitcoin or ether, but you don’t need a bank account to use them and they can be bought and sold with minimal information exchanged. This opens up some interesting wrinkles in the world of commerce on the internet, one of which I recently stumbled upon, involving metaverse activities and unbanked members of my household. The Fortnite V-Bucks Gift Card: The Worst UX in Payments? I have teens and tweens in the house and that means I deal in metaverse currencies, specifically Fortnite V-Bucks. The in-game currency is Fortnite publisher Epic Games’ main vessel for turning FOMO into dollars. For young players of Fortnite, the metaverse of Web3 and $META hype is here today: the game really is a “ third place .” The virtual goods (“skins”) that signify status or identity in Fortnite can be just as crucial as any clothes or accessories available in real life. The result is a steady stream of requests across my phone, accompanied by a wrinkled bill or a CashApp transfer. I fulfill the requests by adding dollars from my credit card to the Microsoft account for Xbox in-game purchases. The kids are playing Fortnite, and I’m playing my favorite game, which is a text-based roleplaying game called Web2 Payments. Story continues V-Bucks: Default transaction flows for unbanked tweens I play Web2 Payments almost daily in one form or another. But, the other day, one of my kids found a workaround that cut me out of the flow: the Fortnite V-Bucks gift card. The V-Bucks gift card is available at many retail stores. My kid bought one with physical cash and thought they’d been scammed. The gift card was legit, it turned out, but the process for converting it into in-game currency wasn’t an ideal end-around to parental capital controls. It was too complex for anyone uninitiated in the art of internet search queries. The in-game form for entering a V-Bucks gift card requires a 16-digit code. But the code on the back of a physical V-Bucks gift card is 25 digits. No explanation is given – not on the card, not on the in-game form. A search reveals a separate webform, where a 25-digit gift card code can be converted into the 16-digit code that the game requires – after logging in with a player account. If you happen to log in with the wrong account, there’s no way to transfer the V-Bucks. I’ve worked in the cryptocurrency industry since 2017 and for the past couple of years I’ve focused on cross-chain interoperability . Let’s just say I’m no stranger to bad user experience – but the convoluted UX for converting V-Bucks gift cards into in-game currency surprised me. Gift-Card Fraud Vs. Cryptocurrency Fraud The crux of the bad V-bucks gift card UX is simple: it requires a login on a third-party site. This could be more seamless with better instructions or an integrated form, but the need for the login seems pretty obvious. It prevents fraud and money laundering. Bitcoin and ether have no similar constraints, making them more apt for extralegal uses ranging from laundering the proceeds of fraud, to funding dissident movements in Hong Kong, to escaping capital controls in Turkey. Regulated entities layer similar anti-money-laundering (AML) measures atop the Bitcoin and Ethereum networks. Just like a V-Buck on a gift card is not the same as a V-Buck in-game, bitcoin on the Bitcoin network is not the same as bitcoin in your Coinbase trading account. It’s entertaining to imagine a world that isn’t like this. Dark-web deals in the Fortnite metaverse sounds like a good wrinkle in a Charlie Stross novel. But in my opinion it would not improve the game – any more than Coinbase would be improved by less-restrictive access. An all-too-real “Grand Theft Auto” is not what most people want in their metaverse. Even if Fortnite did turn into a channel for gift-card fraud, it would probably be the virtual tip of an iceberg-sized illegal business done via gift cards in much more mundane locations, like Home Depot parking lots and your online bank account. U.S. Federal Trade Commission data on gift-card scams show they increased from $180 million in 2021 to $228 million in 2022 – but that’s just vanilla scams, duping people into buying and sending a gift card as payment. The real world of gift-card scams is much more varied and colorful. It involves alleged fraudulent charity tax rebates on Home Depot gift cards , compromised Starbucks loyalty points accounts and gift cards allegedly purchased with the intent to fund ISIS. Cryptocurrency Vs. Robux Of course, things get much more interesting – if not more lucrative – when fraud begins on the internet, goes out through retail and comes back to the internet. Roblox is another successful MMORPG. It doesn’t have the cultural cachet of Fortnite or the money-making engine: Roblox reported $2.2 billion in revenue in 2022. Epic Games’ 2022 sales from Fortnite alone are estimated at more than double that amount. However, Roblox does have its own in-game currency, Robux, and a legion of youthful, unbanked players who lust after it. Players have fallen victim to a “gift card method” attack, where accounts have been griefed or taken over using the gift card code as a means of authentication. The ripple effects of Robux supply and demand have spread beyond the game, too – into [ click fraud . In a 2022 episode of the internet true-crime podcast Darknet Diaries, a pseudonymous guest described distributed click farms where kids are compensated in Robux for watching ads and filling out surveys. “So, it would cost him like, $6 to pay a kid for like, $50 worth of income for him. He’d have like 2000 kids a month and he was making $1,000 to $2,000 a day, and that was the most I had ever seen.... He’s my age; he’s like, fourteen, fifteen, and he’s doing this every single day.” Does Bitcoin Fix This? I think $2,000 a day is impressive earnings for a child of 15, but it’s almost certainly a rounding error in the multibilion-dollar business of fake traffic on the internet. And in the rankings of scams, it doesn’t come close to the billions crypto users have lost to bridge hacks alone. And, while permissionless networks like bitcoin provides extralegal paths for uses both deplorable and laudable, some crypto projects are apparently finding a better option for regulatory escape in something that looks a lot like gift cards. Ya'll realise that teams are doing points instead of tokens because of Gary Gensler and the SEC, right? — sassal.eth/acc 🦇🔊 (@sassal0x) December 13, 2023 There could be many interesting opportunities in a more open-source approach, making gift cards more composable or programmable. There might even be a role for a shared trust layer. But at present, it’s hard to see incentives for issuers to create one. Once you build to a point where you can issue a desirable gift card, you want to keep those dollars in-network, behind your moat – whether that moat is a Home Depot parking lot, or an Epic Games login. It’s up to builders in Web3 to find the user experiences where open and composable networks make those businesses look obsolete.

2024-01-19 20:10:45+00:00

{"Bitcoin": [4109]}

{}

Summers Warns Biden Team Against Pandering on US Steel Deal

https://finance.yahoo.com/news/summers-warns-biden-team-against-160540573.html

Bloomberg

https://www.bloomberg.com/

(Bloomberg) -- Former Treasury Secretary Lawrence Summers said there’s no national-security justification for questioning the proposed takeover of United States Steel Corp. by Japan’s Nippon Steel Corp., amid a Biden administration review of the deal. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hedge Funds Rake in Huge Profits Betting on Catastrophe Risk Trump’s 2016 Win Shook Markets. Traders Won’t Get Fooled Again. Putin Orders Hunt for Property of Russian Empire, Soviet Union Burger King Is Serving Whoppers With a Side of Cringe “There is no remotely plausible national-security rationale for questioning the Nippon-US Steel transaction,” Summers said on Bloomberg Television’s “Wall Street Week” with David Westin. “Japan is a staunch ally.” Scrutiny of the $14.1 billion agreement by US officials is unlikely to end until late this year and may even extend into 2025, Bloomberg reported last week. President Joe Biden’s top economic adviser, Lael Brainard, said in late December that a review should be conducted because “it’s important to make sure there is serious scrutiny of these kinds of transactions from the perspective of national security and supply chain resilience.” “This is a test for the Biden administration,” said Summers, a Harvard University professor and paid contributor to Bloomberg TV. The question is whether its industrial policy is truly based on seeking resilience, or serves as “a cloak for protectionist pandering to traditional industries — with no genuine national security rationale.” Summers cited advantages to the agreement, which would create the world’s second-biggest steelmaker. China Warning “The result will be the infusion of more capital into the US steel industry,” he said, helping to lower steel prices as an input. Industries that use steel employ 100 times as many American workers as the steel industry itself does, he said. Summers also said production will continue to take place in the US. Story continues Separately, the former Treasury chief said he came away from a visit to China this week with “substantial concerns about China’s growth prospects.” China faces a major question about how to deploy excess savings, some of which have been channeled to “wasteful over-investment” in infrastructure and real estate. The risk is an overhang of bad debt that, amid a lack of demand and deflation, “gets more burdensome, and the whole thing cycles,” he said. “That’s basically why Japan had a very weak generation of economic growth after 1990 and China is facing similar kinds of challenges,” Summers said. Still, he said “never count the Chinese out,” and noted Beijing has a large number of skilled bureaucrats. US Taxes Turning to the US, Summers cautioned that Washington will eventually have to raise taxes to address large recurring budget deficits and expanded spending responsibilities, and favored overhauling the estate levy in a future package. “Ultimately, I suspect we’re going to have to increase taxes,” he said. “That’s not right now on the political agenda, but it will force its way onto the agenda in the next years, given arithmetic reality.” With the US debt-to-GDP ratio above 100%, “there are big increases in debt service” costs coming, and spending requirements on items including defense are likely to rise, Summers said. “There are places where we’re going to need to cut government spending,” and there will be opportunities of raising revenue through non-tax means, such as spectrum auctions, he said. But there will in the end need to be “at least some increases in tax rates.” Summers said Washington should “seriously look” at the estate law, “which now for so many successful people approaches being a voluntary tax,” given the special breaks and gimmicks that are used to avoid paying. He also reiterated the importance of tax-collection enforcement, and of boosting the corporate tax rate. (Adds comments on taxes, debt in last four paragraphs.) Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P.

2024-01-19 20:26:23+00:00

{"Bitcoin": [2034]}

{}

Oil Edges Lower as Oversupply Forecasts Outweigh Red Sea Risks

https://finance.yahoo.com/news/oil-steady-near-highest-close-034705223.html

Bloomberg

https://www.bloomberg.com/

(Bloomberg) -- Oil edged lower after a week of rangebound trading as investors weighed forecasts of an amply supplied market against increased attacks in the Red Sea. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hedge Funds Rake in Huge Profits Betting on Catastrophe Risk Trump’s 2016 Win Shook Markets. Traders Won’t Get Fooled Again. Putin Orders Hunt for Property of Russian Empire, Soviet Union Burger King Is Serving Whoppers With a Side of Cringe West Texas Intermediate dropped 0.9% to settle near $75 after trading in a roughly $4 range for the week. The US has launched multiple attacks on Houthi targets in Yemen as the Iranian-backed group continues to menace shipping off the coast. Still, the International Energy Agency expects robust supplies this year, and US data released Thursday showed an unexpected gain in the country’s crude stockpiles. The market remains gripped by a fundamental pessimism and is relying heavily on geopolitical developments to eke out gains, said Rebecca Babin, a senior energy trader at CIBC Private Wealth. “Geopolitical headlines are the oxygen keeping a bid in crude,” Babin said. “It can only stay higher for so long without a new one.” Futures have struggled for direction in 2024 and frequently followed broader financial market sentiment. Participation in crude markets from fundamental players has been limited, said Daniel Ghali, a commodity strategist at TD Securities. “Flows from trend-following algorithms are now overwhelmingly driving” oil trading, he said. Despite the front-month price’s lack of momentum, parts of the oil complex are signaling a tight market. WTI’s prompt spread, a critical barometer for supply and demand, surged into a bullish backwardated structure earlier this week, indicating supply is outstripping consumption. To get Bloomberg’s Energy Daily newsletter into your inbox, click here. Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P.

2024-01-19 20:32:07+00:00

{"Bitcoin": [3328]}

{}

Fed’s Daly Says It’s Premature to Think Interest Rate Cuts Are Around the Corner

https://finance.yahoo.com/news/fed-daly-says-premature-think-200715054.html

Bloomberg

https://www.bloomberg.com/

(Bloomberg) -- Federal Reserve Bank of San Francisco President Mary Daly said it’s “premature” to think interest-rate cuts are around the corner, noting she needs to see more evidence that inflation is on a consistent trajectory back to 2% before easing policy. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hedge Funds Rake in Huge Profits Betting on Catastrophe Risk Trump’s 2016 Win Shook Markets. Traders Won’t Get Fooled Again. Putin Orders Hunt for Property of Russian Empire, Soviet Union Burger King Is Serving Whoppers With a Side of Cringe “While I think it’s appropriate for us to look forward and ask when would policy adjustments be necessary so we don’t put a stranglehold on the economy, it’s really premature to think that that’s around the corner,” Daly said Friday in an interview on Fox Business. Daly, who votes on monetary policy decisions this year, said she needs to see more evidence that inflation is heading back down to 2% “consistently and sustainably for me to feel confident enough to start adjusting the policy rate.” In addition to inflation data, the San Francisco Fed president said she will be looking for any early signs the labor market is starting to falter to inform her decision. “Do I get consistent evidence that inflation is coming down, or do I get any early signs with the labor market starting to falter?” Daly said. “Neither one of those right now is pushing me to think that an adjustment is necessary.” The Federal Open Market Committee is expected to leave its benchmark interest rate unchanged for a fourth straight meeting when policymakers gather Jan. 30-31. Daly’s comments are among the last by Fed officials before the committee goes into a self-imposed communications blackout ahead of the gathering. Policymakers’ quarterly projections from December implied three interest-rate cuts in 2024 — or some 75 basis points of cuts – and Fed officials have pushed back against market expectations of imminent and deep rate reductions this year. Odds of a March cut have notably eased since Governor Christopher Waller said earlier this week that policy moves should be “carefully calibrated and not rushed.” Story continues Inflation has fallen sharply over the past year without sparking a surge in unemployment. Excluding the volatile food and energy categories, the core metric rose 1.9% in November on a six-month annualized basis — just below the Fed’s 2% target. December figures will be released next week. Data published earlier Friday also showed near-term inflation expectations slipped to a three-year low, helping to drive a surge in consumer sentiment. Longer-term price views also eased. Daly said Americans’ balance sheets are in a “good” position, but noted she will be watching delinquency rates for early warning signs the economy is slowing. When asked about a plan regulators are working on that would require banks to tap the Fed’s discount window at least once a year to reduce the stigma and ensure lenders are ready for troubled times, Daly said it was premature for her to comment. However, she did say the discount window is regularly used by banks. (Adds additional comments from Daly.) Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P.

2024-01-19 20:39:39+00:00

{"Bitcoin": [1879]}

{}

Apollo Is Among Private Equity Firms Considering a Redstone Buyout

https://finance.yahoo.com/news/apollo-among-private-equity-firms-203939082.html

Bloomberg

https://www.bloomberg.com/

(Bloomberg) -- Apollo Global Management Inc. is considering making an offer for National Amusements Inc., the Redstone family company that controls film and TV giant Paramount Global. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hedge Funds Rake in Huge Profits Betting on Catastrophe Risk Trump’s 2016 Win Shook Markets. Traders Won’t Get Fooled Again. Putin Orders Hunt for Property of Russian Empire, Soviet Union Burger King Is Serving Whoppers With a Side of Cringe Apollo is one of a number investors, both wealthy individuals and professional money managers, that have reached out in recent weeks to BDT & MSD Partners, the investment bank advising the Redstones, according to people familiar with the discussions. Film and TV producer David Ellison is weighing an offer for National Amusements that could involve merging his company, Skydance Media, with Paramount, the Wall Street Journal reported. Private equity firms RedBird Capital Partners and KKR & Co. are both investors in Skydance. Apollo, one of the world’s largest money managers, is also an investor in Legendary Entertainment, another independent film studio. The Redstone family, led by Shari Redstone, controls 77% of the voting stock in Paramount, the parent of CBS, MTV and other film and TV properties. Paramount, like other media giants, is struggling with declining viewership for traditional TV and ongoing losses in streaming. At a recent price of $13.20, the actively traded Class B nonvoting shares of Paramount are down more than 85% from their 2021 high of over $100. The family, along with the Paramount board, has been more open in recent months to doing a transformative deal, according to people familiar with their thinking. Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P. View comments

2024-01-19 20:43:31+00:00

{"Bitcoin": [810, 1066, 2809]}

{}

Founder of Crypto Firm USI Tech Charged With Fraud

https://finance.yahoo.com/news/founder-crypto-firm-usi-tech-183902718.html

Bloomberg

https://www.bloomberg.com/

(Bloomberg) -- The German founder of USI Tech, a crypto mining company and digital-asset trading platform, was charged by federal prosecutors in New York with defrauding investors of about $150 million in an illegal multilevel marketing scheme. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hedge Funds Rake in Huge Profits Betting on Catastrophe Risk Trump’s 2016 Win Shook Markets. Traders Won’t Get Fooled Again. Putin Orders Hunt for Property of Russian Empire, Soviet Union Burger King Is Serving Whoppers With a Side of Cringe Horst Jicha, 64, faces securities fraud, money laundering, wire fraud and other charges, authorities said Friday. After promising investors returns of as much as 140%, he shut down the USI online platform and transferred much of its Bitcoin and Ether assets to accounts he controlled, according to an indictment. He was arrested Dec. 23 while attempting to vacation in Miami, prosecutors said. Jicha, who lived in Brazil and Spain, claimed in 2017 that USI was the world’s first automated Bitcoin trading platform and that it made crypto investments more accessible to retail investors. He raised money from US investors with aggressive marketing pitches in places like New York and Las Vegas, according to the indictment. After authorities began investigating, Jicha closed the platform in March 2018, blocking withdrawals of about $150 million of investor-owned cryptoassets that remain missing, prosecutors said. “The platform was just a facade, and when questions arose, Jicha stole millions of his investors’ money and fled the country,” James Smith, head of the FBI’s New York office, said Friday in a statement. “Although the defendant did not return to the United States for half a decade, my office and the FBI worked to ensure that when he did, he would be brought to justice,” said Brooklyn US Attorney Breon Peace, whose office is prosecuting the case. Jicha was arraigned Friday before a US magistrate in Brooklyn, where he pleaded not guilty. He was released on $5 million bond. “It’s always difficult when investors have suffered losses at the hands of certain bad actors,” Jicha lawyers Marissel Descalzo and David Tarras said in a statement. “We look forward to zealously defending the allegations against Mr. Jicha and bringing forth the facts of his involvement with USI Tech in hopes that the bad actors will be brought to justice.” The most serious charges Jicha faces carry a term of as long as 20 years in prison. The case is US v Jicha, 23-CR-342, US District Court for the Eastern District of New York (Brooklyn). Story continues (Adds comment from defense lawyers in seventh paragraph.) Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P. View comments

2024-01-19 20:44:44+00:00

{"Bitcoin": [4412]}

{}

World Bank, IMF Look to Move Past Old Tensions on Climate, Debt

https://finance.yahoo.com/news/world-bank-imf-look-move-204444694.html

Bloomberg

https://www.bloomberg.com/

(Bloomberg) -- The leaders of the World Bank and International Monetary Fund are seeking to mend fences between their sister institutions after tensions arose in recent years over issues including climate change and sovereign debt issues. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Presidential Race Hedge Funds Rake in Huge Profits Betting on Catastrophe Risk Trump’s 2016 Win Shook Markets. Traders Won’t Get Fooled Again. Putin Orders Hunt for Property of Russian Empire, Soviet Union Burger King Is Serving Whoppers With a Side of Cringe Ajay Banga, who took over as World Bank president in June, met last week with the IMF executive board, made up of 24 executive directors who represent its 190 member countries, according to an IMF spokesman. It’s the first time that a chief of the anti-poverty institution has met with those top officials of the world’s lender of last resort in more than five years. It’s part of an effort to move past some bad blood dating to the tenure of Banga’s predecessor, David Malpass. The Trump appointee was criticized for not sufficiently focusing on environmental issues, while IMF Managing Director Kristalina Georgieva moved the fund toward addressing climate issues. An IMF spokesman said in a statement that Banga’s “informal courtesy visit to the IMF Executive Board was for him to outline his vision for the World Bank Group and the importance of continued close collaboration between the fund and the bank, and not in a response to anything else.” The World Bank declined to comment. Banga and Georgieva said in a joint statement in early September that they plan to enhance collaboration — “in particular with regards to climate change, renewed high debt vulnerabilities, and digital transition.” Banga and Georgieva also meet for breakfast or lunch about once a month to discuss shared priorities, according to a person familiar with their discussions, who asked not to be identified discussing private interactions. Story continues Georgieva, an environmental economist, took the top at the IMF job in 2019 after serving as the World Bank’s number two official and running it for several months before Malpass was appointed. Under her, the IMF has begun granting longer-term loans to help nations adapt to climate change, traditionally the purview of the World Bank. That sparked resentment among some at the World Bank, which environmental groups criticized as being disinterested in the issue under Malpass. Meanwhile, Malpass, who in the Trump administration had a reputation as a China hawk, was more vocal than Georgieva in calling for Beijing to provide debt relief to struggling nations during the Covid-19 pandemic. That stirred some unease at the IMF, whose traditional focus is on balance of payments lending and debt. Tensions were further stoked in late 2021 after the World Bank under Malpass’s leadership released a report that characterized Georgieva as trying to improperly boost China’s ranking in a survey of business climates during her time at the bank. That led the IMF board to consider removing her, although it determined the report didn’t “conclusively demonstrate” wrongdoing. Last week’s IMF board meeting with Banga, at the IMF headquarters across the street from the World Bank in Washington, lasted about 90 minutes and was focused on how the institutions can create incentives for greater collaboration between their staffs, which varies between countries and offices around the world, according to people familiar with the meeting, who asked not to be identified because it was private. The visit ended with a pledge to maintain stepped-up interactions, they said. The World Bank’s roughly 16,000 staff are largely focused on project finance, while the IMF’s approximately 3,000 employees, mostly economists, are more focused on balance of payments lending. Malpass stepped down last year, almost a year before the end of his term to “pursue new challenges.” The Biden administration appointed Banga to replace Malpass and has signaled that it now wants to see the IMF refocus on its core mission of macroeconomic and exchange-rate surveillance and guidance, and leave climate expertise to the World Bank and others. Read More: US Calls on IMF to Reload and Refocus Amid China Pushback Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P.

2024-01-19 20:51:59+00:00

{"Bitcoin": [3301]}

{}

JPMorgan Nears $3 Billion for Private Debt in Hunt for Partners

https://finance.yahoo.com/news/jpmorgan-nears-3-billion-private-205159229.html

Bloomberg

https://www.bloomberg.com/

(Bloomberg) -- JPMorgan Chase & Co. is in talks to clinch $2.5 billion to $3 billion of third-party commitments to grow its private credit strategy, according to people with knowledge of the matter. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hedge Funds Rake in Huge Profits Betting on Catastrophe Risk Trump’s 2016 Win Shook Markets. Traders Won’t Get Fooled Again. Putin Orders Hunt for Property of Russian Empire, Soviet Union Burger King Is Serving Whoppers With a Side of Cringe The New York-based lender has cast a wide net as it seeks to raise cash — targeting sovereign wealth funds, pensions, endowments, alternative asset managers and others. It’s received the most interest from credit managers that already invest in corporate debt but have limited access to private deal flow, the people said. Discussions with investors are ongoing and details may still change, the people added, asking not to be named discussing a private transaction. Terms could be finalized in the coming weeks, they said. The biggest US bank has received a lukewarm reception from some deep-pocketed investors while seeking money to augment more than $10 billion of balance sheet cash it has dedicated for private credit deals, according to the people familiar with the situation. Hesitancy from some investors stemmed from the fact that JPMorgan wouldn’t have a fiduciary responsibility, and instead would be balancing the needs of itself, its partners and borrowers, the people said. Large established private credit investors have also expressed little interest in the initiative amid concerns over fees and control, Bloomberg reported in December. JPMorgan plans to originate loans, retain a small chunk of each financing, and syndicate the rest of the debt to its partners, the people said. The bank is seeking commitments of at least $500 million from some investors, one of the people added. A representative for JPMorgan said the bank’s private credit strategy has received significant interest from investors, particularly in recent weeks. Read more: JPMorgan, Citi Are Copying From the Private-Credit Playbook As the private credit market has ballooned to roughly $1.6 trillion globally, firms including Apollo Global Management Inc. and Blackstone Inc. have amassed huge sums of investor cash, allowing them to offer borrowers favorable terms for buyouts and line up larger deals. That’s cut into the profitability of banks’ leveraged finance desks, prompting JPMorgan and others to set up direct lending operations of their own. Story continues Starting off with around $3 billion of investor money would be a modest next step for the bank after setting aside $10 billion of balance sheet capacity for the effort. The goal for many banks is to be able to seamlessly provide a private credit option to borrowers along with more conventional forms of financing such as high-yield bonds and leveraged loans. Leveraged buyouts, where private equity firms buy and sell companies, drive much of the corporate debt market, and the sponsors are a key client base for investment banks. --With assistance from Hannah Levitt and Davide Scigliuzzo. Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P. View comments

2024-01-19 20:59:44+00:00

{"Bitcoin": [782, 892, 1249, 2166, 2237, 2445, 3376, 3543, 3989, 4423, 4684], "BTC": [4759]}

{"Bitcoin": [37]}

The New York Times Still Doesn’t Get Bitcoin

https://finance.yahoo.com/news/york-times-still-doesn-t-205944365.html

CoinDesk

https://www.coindesk.com

Jeff Sommer, a weekly finance columnist for the New York Times, doesn’t seem to like bitcoin ETFs . Joke’s on him, though, because everyone else seems to. Up-to-date info isn’t available, but it’s now known that investors have poured at least $1.9 billion into the new crypto-tracking exchange-traded funds in their first three days of trading. The most bullish estimates expect up to $100 billion flowing into bitcoin funds by the end of the year. This is an excerpt from The Node newsletter, a daily roundup of the most pivotal crypto news on CoinDesk and beyond. You can subscribe to get the full newsletter here . That’s a lot of pent-up demand, beating the last record inflows of $1.2 billion within three days in 2021 … which also went into a bitcoin-based product, ProShares Bitcoin Strategy ETF (which tracked bitcoin futures rather than its spot price), Reuters reported . See also: Bitcoin Instantly Topped Silver in ETF Market and Trails Only Gold Among Commodities A number of marquee financial firms including BlackRock, Fidelity and Franklin Templeton lined up to launch bitcoin ETFs, and are now also considering ether [ETH] funds. And yet, Sommer seems ready to write all of this off. "FOMO is the main reason for putting money into Bitcoin, which remains highly speculative, difficult to categorize and without an immediately identifiable economic function,” the NYT columnist wrote in his latest edition of the “ Strategies ” newsletter, referencing the U.S. Securities and Exchange Commission’s (SEC) anti-FOMO bulletin . FOMO, aka the fear of missing out, is certainly a part of crypto investing. For instance, it’s the main driver behind degens chasing the highs of meme coins like BONK or dogwifhat, which truly serve little economic function beyond speculation. But to write off bitcoin simply as a turn of the roulette wheel with $800 billion on the table is to willingly mislead oneself. You don’t have to personally believe what bitcoiners believe to take their arguments seriously, for fear of mockery or ostracization (FOMOO) by your crypto-skeptic peers, Jeff. Story continues To be fair, Sommer did tip his hat to the technology behind Bitcoin, i.e. b l o c k c h a i n, to hedge his own argument. To wit: “Bitcoin is a serious proposition, in terms of its underlying structure. The use of blockchain, the decentralized, peer-to-peer structure and the complex mathematical code demand respect. Concepts embedded in Bitcoin and other so-called cryptocurrencies could have real-world importance at some point…” This was not Sommer’s only completely original and novel thought, he also steadfastly argued that cryptocurrency is a “misnomer” because cryptocurrencies, despite maybe one day having “real-world” utility somewhere, are not really “currencies.” And, he said, the comparison between bitcoin and gold is off because gold has historical “cache.” As the great and powerful Satoshi Nakamoto once said , “If you don't believe me or don't get it, I don't have time to try to convince you, sorry.” At this point it’s not even worth addressing these extremely tired arguments, which seem to be carried out by seasoned journalists everytime crypto notches some victory. But considering that they’re brand new, I’ll try to do Sommer a solid and get him up-to-date on why interest in bitcoin ETFs is more than FOMO. Why bitcoin ETFs First, there is Bitcoin’s philosophical proposition — the idea that there ought to be a global, stateless monetary network available to all. Often called a libertarian wet-dream, the Bitcoin vision is so simple it actually slots neatly into a range of political philosophies — from globalizing neoconservatism to historical Marxism, just not anything truly authoritarian. Again, you don’t have to buy into the rising trend towards populism to take an interest in it. Many people are feeling with the spread of corporate and governmental surveillance; rising economic inequality; and other geopolitical issues that something like Bitcoin, which empowers everyone without asking for anything of any particular user in return, is a powerful symbol at the very least. Second, there is the fact that bitcoin is one of the most successful economic investments on record. It may not be the best performing asset every year, and certainly many people have lost money trading it, but there is no denying bitcoin’s meteoric gains over the past decade and a half. See also: Bitcoin ETF Net Inflows Near $1B After Three Days This is where the idea of “hodling” comes in, which recommends people buy and hold bitcoin over a long time horizon, because even if the always-volatile bitcoin dips, those are only paper-losses until you sell. Bitcoin ETFs help a larger swath of retail and institutional buyers access BTC, typically through vehicles like retirement accounts or corporate treasuries that will likely hodl for years if not decades. True, bitcoin is not guaranteed to rise in price and could even drop to $0. And true, as Sommer points out, there are other ways to gain exposure to crypto via traditional routes, like buying other indexes that invest in crypto-related stocks, like Coinbase, MicroStrategy or the many publicly listed mining companies. Simply put, there is something powerful to the idea of actually owning an asset that cannot be seized. Spot bitcoin ETFs are a poor approximation of that since buyers of the ETFs never actually get their hands on bitcoin. But Sommer is shutting himself off to that idea early, and trying to convince his readers that the massive interest in bitcoin that was just demonstrably proven via the launch of 11 bitcoin ETFs this month is all just FOMO. The sad thing is, the argument works just as well in reverse: Even if demand for bitcoin is just a matter of social contagion, then so is skepticism, because you need to hear about something to turn away from it. So, check your sources. CORRECTION (JAN. 19, 2024): Removes reference to in-kind redemptions, which were not part of the SEC process.

2024-01-19 21:00:53+00:00

{"Bitcoin": [2829]}

{}

China Is Buying Up US Farmland, But How Much Isn’t Clear

https://finance.yahoo.com/news/china-buying-us-farmland-just-230534826.html

Bloomberg

https://www.bloomberg.com/

(Bloomberg) -- America is seeing more and more of its most fertile land snapped up by China and other foreign buyers, yet problems with how the US tracks such data means it’s difficult to know just how much, according to a report. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hedge Funds Rake in Huge Profits Betting on Catastrophe Risk Trump’s 2016 Win Shook Markets. Traders Won’t Get Fooled Again. Putin Orders Hunt for Property of Russian Empire, Soviet Union Burger King Is Serving Whoppers With a Side of Cringe Foreign ownership and investment in property such as farmland, pastures and forests jumped to about 40 million acres in 2021, up 40% from 2016, according to the US Department of Agriculture data. But an analysis conducted by the US Government Accountability Office — a non-partisan watchdog that reports to Congress — found mistakes in the data, including the largest land holding linked with China being counted twice. Other issues include the challenge of enforcing a US law that requires foreigners to self-report such purchases, the report said, citing USDA. Outside ownership of American cropland is drawing attention from Washington as concern rises about possible threats to food supply chains and other national security risks. Democratic and Republican lawmakers alike have called for a crackdown on sales of farmland to China and other countries. “Without improving its internal processes, USDA cannot report reliable information to Congress or the public about where and how much US agricultural land is held by foreign persons,” the report said. Read more: Senator Calls for Ban on Chinese Land Purchases Following Report The GAO made six recommendations, including that the USDA share more timely and complete data with the Committee on Foreign Investment in the US, an interagency panel led by the Treasury Department that reviews foreign business deals. Another suggestion calls for USDA to ensure its reporting of agricultural foreign investments under a 1978 federal law is complete. USDA said it would need more money to create and maintain an online filing portal, according to the report. Story continues “The GAO’s recommendations would require changes by Congress, starting with the funding needed to increase staff and modernize our processes,” Allan Rodriguez, a USDA spokesperson, said in an emailed statement to Bloomberg on Friday. “Any system for tracking land purchases and owners would be complicated, expensive, and create a potential risk to producer privacy, the price of agricultural land, and individual American seller interests.” (Adds US Department of Agriculture’s response starting in the sixth paragraph.) Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P.

2024-01-19 21:04:43+00:00

{"Bitcoin": [4883]}

{}

Bets on Soft Landing Push US Stocks to First Record in Two Years

https://finance.yahoo.com/news/bets-fed-pivot-drive-p-182910668.html

Bloomberg

https://www.bloomberg.com/

(Bloomberg) -- The S&P 500 Index finished at an all-time high for the first time in two years on Friday, marking a crucial milestone in the resurgence of the US stock market. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hedge Funds Rake in Huge Profits Betting on Catastrophe Risk Trump’s 2016 Win Shook Markets. Traders Won’t Get Fooled Again. Putin Orders Hunt for Property of Russian Empire, Soviet Union Burger King Is Serving Whoppers With a Side of Cringe It’s been a dizzying stretch for equities, triggered by falling inflation and the possibility that the Federal Reserve will cut interest rates in 2024. Over the past two years investors have faced the largest ground war in Europe since World War II, the fastest inflation since the 1980s and the highest borrowing costs since the turn of the millennium — a trio of forces that pushed the American equities benchmark into a bear market in June 2022. Yet stocks defied fears of a recession to soar in 2023 and have continued to climb, albeit at a more modest pace, in early 2024. The S&P 500 set new intraday and closing records on Friday. On Friday, the S&P 500 jumped 1.2% to close at 4,839.81, eclipsing its prior closing high set on Jan. 3, 2022. It also touched a new intraday record of 4,842.07, topping the previous intraday peak of 4,818.62 set on Jan. 4, 2022. “It’s been a wild ride for stock investors after two years of extremes with high inflation and rising rates, but now it looks like the economy is poised for a soft landing,” said Yung-Yu Ma, chief investment officer at BMO Wealth Management. “Inflation is cooling and there’s more predictability on what the path ahead looks like for Fed policy.” The S&P 500 is the last of the three major US indexes to reach a fresh high, joining the Nasdaq 100 Index and the Dow Jones Industrial Average, both of which eclipsed their records in December. After peaking nearly two years ago, the S&P 500 shed as much as a quarter of its value when it sank to a closing low of 3,577.03 on Oct. 12, 2022. But then the index bounced back to post a double-digit return in 2023, its fourth in the last five years. Of course, equity gains from the so-called Magnificent Seven technology companies — Alphabet Inc., Amazon.com Inc., Apple Inc., Meta Platforms Inc., Microsoft Corp., Nvidia Corp. and Tesla Inc. — powered the index’s rise back to records. Apple, for instance, crossed back above a $3 trillion market value late last year after rallying nearly 50% in 2023. History sides with further gains ahead. The S&P 500 went 512 trading days without a record through Thursday, which ranks as the sixth-longest streak since 1928, according to Ed Clissold, chief US strategist at Ned Davis Research. One year after hitting new highs, the index has risen 13 out of 14 times by a median of 13% in that span. Story continues Still, money managers are debating when the Fed may pare back its hawkish policies. One key challenge for investors will be assessing the lagging impact of the hiking cycle. Traders are rapidly repricing their rate-cut expectations, with the odds only of a quarter-point reduction in the federal funds target during the first quarter falling to about 50% after it had been almost fully priced in just a few weeks ago. Since 1957, there have been 16 major advances in the S&P 500, with the length of the rise largely dependent on whether it was preceded by a recession, according to The Leuthold Group. In the eight instances when the upswing began in an economic downturn, the index climbed 135% on average over 45 months. But when the preceding drop wasn’t associated with a recession, the subsequent ascent wasn’t as powerful, with the S&P 500 rising about 75% on average and the rebound lasting slightly less than three years. While consumer spending is robust, there are signs that growth in the crucial holiday quarter is ebbing — but still strong. The Atlanta Fed’s GDPNow model sees fourth-quarter real GDP growth slowing to a 2.4% annual rate, from a 4.9% pace in the three months through September. For now, equities optimists are in the driver’s seat. As they see it, Big Tech will fuel a fresh wave of profit growth, inflation is easing at long last and the economy still looks resilient. Stock prognosticators on Wall Street have history on their side if the Fed’s tightening campaign is drawing to a close since rate pauses historically usher in double-digit returns for shares. “The US economy is still growing at a good, sustainable rate,” said Thomas Martin, senior portfolio manager at Globalt Investments. “Those longer-duration stocks will likely continue to have consistent growth that’s higher than the rest, and they won’t be dependent on a booming economic cycle.” Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P. View comments

2024-01-19 21:06:21+00:00

{"Bitcoin": [4086]}

{}

Outspoken Bank Analyst Bove Retires After Five-Decade Career

https://finance.yahoo.com/news/banks-analyst-dick-bove-retires-194119524.html

Bloomberg

https://www.bloomberg.com/

(Bloomberg) -- Banking sector analyst Dick Bove is retiring at age 83, after a career that spanned more than five decades and several bouts of industry turmoil. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hedge Funds Rake in Huge Profits Betting on Catastrophe Risk Trump’s 2016 Win Shook Markets. Traders Won’t Get Fooled Again. Putin Orders Hunt for Property of Russian Empire, Soviet Union Burger King Is Serving Whoppers With a Side of Cringe The Wall Street veteran’s departure from Odeon Capital was effective Friday, he said in a call from Lutz, Florida. The analyst — once dubbed a “maverick stock picker” and the “dean of banking analysts” — most recently covered major US banks including JPMorgan Chase & Co. and Citigroup Inc. “It was the greatest job ever. I loved every minute of it, because it was so much fun,” Bove said by phone. “The world keeps changing, the industry keeps changing.” Bove joined Odeon Capital in 2019 after a litany of prior roles at firms including Raymond James Financial and Rafferty Capital. Odeon Capital co-founder Mathew Van Alstyne confirmed in a message that Bove’s departure was effective Friday and declined to comment further. Bove is leaving the industry to spend more time with his wife, and said he would consider taking on consulting projects at a future time. Road Ahead Bove’s attention-getting comments about banks were often unambiguous and sometimes moved the stocks. Like other analysts, occasionally his calls were wrong, which Bove acknowledged — most recently walking back a month-old upgrade for Bank of America Corp. after rethinking the impact of interest rates. As with many of the big-bank chief executives he covered, Bove was skeptical of new regulations, even those passed after the meltdown of 2008 that left some of the largest financial companies on the brink of failure. He denounced the seminal Dodd-Frank banking reform act after it was enacted in 2010 as the product of “mass hysteria” that would hurt US consumers by cutting services and making them less affordable. Story continues He’s also been outspoken on housing-finance giants Fannie Mae and Freddie Mac. Just Thursday, he penned a note saying it’s clear that shares of the government-sponsored enterprises are tied to Donald Trump’s reelection chances. The movement in the stocks has always been about politics, he emphasized. “At any rate, the game appears to be on again,” he wrote. For the banking industry, he sees a “very tough” year ahead, he said on Friday. “Banking is undergoing a massive change at the moment,” he said, adding he thinks government regulators want to shrink American banks. “I’m not sure exactly how the major banks are going to deal with it.” In 2013, Bove turned his pro-bank attitude into a book-length defense of too-big-to-fail lenders titled “Guardians of Prosperity: Why America Needs Big Banks.” The financial crisis wasn’t the fault of reckless financiers, according to Bove. “They are prized Americans,” he wrote in the book’s dedication. Some of those CEOs won Bove’s praise, while others received unsparing criticism. Bove defended Ken Lewis, BofA’s chief executive during the financial crisis years, whose tenure left the bank needing a massive bailout and ended with Lewis leaving amid pressure from regulators. Bove called it a “vendetta” against Lewis in 2009 and said “someone with authority should get him to change his mind” about quitting. By contrast, Bove called out Wells Fargo & Co.’s Richard Kovacevich in 2008 for staying on too long past the mandatory retirement age, and cited a “deep weakness” in management at the bank. “Leaders who stay on too long lose their bearings because no one will fight with them,” Bove wrote. “Their thinking becomes too rigid and they cannot change with the times — when that is appropriate.” --With assistance from Bailey Lipschultz. (Updates throughout to add additional context and Odeon response.) Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P.

2024-01-19 21:10:13+00:00

{"Bitcoin": [2645], "BTC": [4973]}

{}

Jailed Cryptocurrency Mogul Sam Bankman-Fried Is Trading A New Alternative Currency In Federal Prison

https://finance.yahoo.com/news/jailed-cryptocurrency-mogul-sam-bankman-211013460.html

Benzinga

http://www.benzinga.com/

Few people in modern history have fallen faster than FTX Trading Ltd. Founder Sam Bankman-Fried, who went from a financial genius to a federal prisoner when his cryptocurrency exchange failed. Perhaps the most obvious reminder of that for Bankman-Fried is the alternative currency he has been reduced to trading in the federal penitentiary: canned mackerels. From Cryptocurrency To Canned Fish: A New Kind Of Alternative Economy Microeconomies exist everywhere, even in places where legal tender is not allowed. This is true for places like New York's Metropolitan Detention Center, which currently houses Bankman-Fried. All you need for a microeconomy to flourish is a universally agreed-upon unit of currency that can be exchanged for services. Since the days of Al Capone and the Alcatraz Federal Penitentiary, cigarettes have functioned as the unofficial alternative currency in the federal prison system. Don't Miss: This brokerage offers custom rewards for users to switch – the biggest reward so far for 1 user is $19,977.48. Will yours beat it ? The last-standing top crypto exchange without a major security breach offers what now? However, they were banned for health reasons in 2004 and canned mackerels or "macks" as they are known on the inside, became the currency of choice among federal prisoners. Macks can be traded for a variety of services, including but not limited to: Haircuts Laundry services Legal brief preparation from prison lawyers Shoe shines and shoe repair Canned Mackerels Even Have a Benchmark It might be tempting to think of the mack trade inside federal prison as one lacking in any sophistication or regulation, but you would be wrong. As is the case with cryptocurrency, the value of macks even has its own benchmark: the U.S. dollar. Their value can rise or fluctuate, but the thing that makes macks so useful as an alternative currency is their shelf-life, their universal popularity and their ease of transport. Story continues It's a bitter irony that the same skills Bankman-Fried acquired as a cryptocurrency trader while building his criminal empire would prepare him for life as a federal inmate. Unfortunately for FTX clients left holding the bag when Bankman-Fried's criminality was discovered, macks can't be used to cover their losses. A Cryptocurrency Superstar's Meteoric Rise Bankman-Fried's investing career began with an internship at Jane Street Capital in 2013, where he worked with exchange-traded funds (ETFs). He would go on to cofound his own crypto-trading company Alameda Research in 2017. Shortly after that, he discovered a novel way to profit from cryptocurrency by arbitraging Bitcoin between the U.S. and Japanese markets before relocating to Hong Kong in 2018. In 2018, Bankman-Fried founded the FTX exchange and found himself in the perfect position to take advantage of the surge in cryptocurrency value that took place during the COVID-19 pandemic. FTX's worth shot through the roof and Bankman-Fried became a billionaire who espoused viewpoints on everything from government regulation to "effective altruism." He even started his own cryptocurrency FTT. No one could have imagined his star would fall as quickly as it rose. A Hard Fall For FTX And Its Account Holders It’s perhaps more than incidental that this is about the same time Bankman-Fried moved FTX from Hong Kong to the Bahamas and cited the "regulatory environment" of the island nation as a reason. While in the Bahamas, Bankman-Fried and his executives lived a lifestyle of luxury while he made riskier and riskier bets through Alameda Trading, all out of the sight of U.S. regulators who would likely have uncovered this scheme before it got so out of hand. He even went so far as to surreptitiously use FTX client funds to cover Alameda Trading's losses. Bankman-Fried's indiscretions may have never come to light if not for a failed deal with Binance, which backed out of a deal to acquire FTX once it discovered numerous irregularities in FTX's handling of client funds. This led to FTT losing an estimated 80% of its value and a shocking chain of events. Within the span of a few chaotic days in November 2022, Bankman-Fried resigned, lost his status as a billionaire and FTX went bankrupt. Most of FTX's client holdings were wiped out along with it. Once the Securities and Exchange Commission got involved, Bankman-Fried could no longer hide the fact that he was illegally using FTX client funds to prop up Alameda Research. A Lifetime Of Mack Trading For Sam Bankman-Fried Bankman-Fried was arrested in the Bahamas in December 2022 and extradited to the U.S. where a jury found him guilty on seven counts of fraud and conspiracy in November 2023. On March 28, 2024, Bankman-Fried will face a sentence of up to 110 years on those counts. It remains to be seen whether he can develop an "arbitrage" scheme for "macks". He will certainly have enough time on his hands to do so. Read Next: Did you know $2.5 BILLION was earned by BTC miners in the 4th quarter of 2023 ? Don't buy the top this time around. Reboot your crypto portfolio today . "ACTIVE INVESTORS' SECRET WEAPON" Supercharge Your Stock Market Game with the #1 "news & everything else" trading tool: Benzinga Pro - Click here to start Your 14-Day Trial Now! Get the latest stock analysis from Benzinga? APPLE (AAPL): Free Stock Analysis Report TESLA (TSLA): Free Stock Analysis Report This article Jailed Cryptocurrency Mogul Sam Bankman-Fried Is Trading A New Alternative Currency In Federal Prison originally appeared on Benzinga.com © 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

2024-01-19 21:12:57+00:00

{"Bitcoin": [404, 800, 4515]}

{}

Why Polygon, NEAR Protocol, and Optimism Nosedived This Week

https://finance.yahoo.com/news/why-polygon-near-protocol-optimism-211257647.html

Motley Fool

http://www.fool.com/

The crypto market has been in flux over the past week, with most major cryptocurrencies losing altitude over the past seven days. Interestingly, three of the leading weekly decliners include Polygon (CRYPTO: MATIC) , NEAR Protocol (CRYPTO: NEAR) and Optimism (CRYPTO: OP) , which have declined 15.7%, 19%, and 22.25%, respectively, since Friday's close. Indeed, last week's long-awaited approval of spot Bitcoin ETFs led to an initial sector-wide pop and then a sell-the-news decline, as investors dialed back their exposure to this sector. The sell-off we've seen materialize over the past week has been more pronounced around key alt coins, with some of this selling pressure among smaller-cap cryptos likely reflecting a broad portfolio repositioning for many investors toward megacap tokens like Bitcoin. That said, these three tokens also have their own unique catalysts driving their underperformance this past week. Let's dive into what investors are watching when it comes to these three top 30 cryptos right now. Token-specific challenges in focus for investors Outside of a simple-to-understand reversion rally from last week's impressive surges, Polygon, NEAR Protocol, and Optimism have their own sets of challenges investors appear to be focusing on right now. For Polygon and NEAR, a key integration between the two networks has failed to generate significant investor interest today. Earlier today, a number of reports highlighting a collaboration between the NEAR Foundation and Polygon Labs to integrate Near's Data Availability with Polygon's Chain Development Kit (CDK) should have stoked enthusiasm around the two projects. This integration will allow developers looking to build zero-knowledge roll-ups (allowing for more efficient Ethereum scaling) to do so in a more reliable and efficient fashion. However, the total value locked (TVL) data coming out of both NEAR and Polygon suggest these ecosystems are seeing significant weekly declines, and it's unclear whether developers will flock to these networks for reduced data availability costs, rather than build directly on the Ethereum network. Story continues An upcoming hard fork of the Optimism network appears to be driving some investor jitters over the past week. Another Ethereum scaling solution, Optimism similarly provides roll-up scaling features that allow users to take advantage of faster and more cost-effect Ethereum transactions. In order to generate some improvements to the network and introduce new functionalities to remain competitive with other scaling solutions, this hard fork is expected to take place in short order. Transactions and withdrawals are expected to be suspended during this fork, so investors may have a short-term incentive to move away from the network for the time being. Where are these alt coins headed from here? To a certain degree, it's unclear whether the recent declines in Polygon, NEAR Protocol, and Optimism should be taken at face value by investors. There is some transaction and TVL data that may suggest that there's a fundamental basis for this decline. However, given the near-term nature of certain catalysts, such as Optimism's hard fork, it could also be the case that these recent declines are overdone, at least to some extent. Thus, it's my view that crypto investors looking at scalability networks may want to pay close attention to these three tokens over the coming weeks. In my view, there's simply not enough data to justify this week's very bearish price action around these tokens. Accordingly, I wouldn't be surprised to see some sort of rally materialize, as longer-term investors step into projects with strong fundamental growth prospects. Right now, I'd put these three tokens in that category. Should you invest $1,000 in Polygon right now? Before you buy stock in Polygon, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Polygon wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*. See the 10 stocks *Stock Advisor returns as of January 16, 2024 Chris MacDonald has positions in Ethereum. The Motley Fool has positions in and recommends Bitcoin, Ethereum, and Polygon. The Motley Fool has a disclosure policy . Why Polygon, NEAR Protocol, and Optimism Nosedived This Week was originally published by The Motley Fool

2024-01-19 21:19:24+00:00

{"Bitcoin": [3459]}

{}

Freezing Weather Is Knocking Out Millions of Barrels of US Oil Output

https://finance.yahoo.com/news/north-dakota-oil-output-may-191203114.html

Bloomberg

https://www.bloomberg.com/

(Bloomberg) -- The wintry weather that blanketed parts of Texas in snow and hammered North Dakota with extreme cold has knocked out millions of barrels of US oil production, and the industry is expected to need weeks to restore output to normal levels. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hedge Funds Rake in Huge Profits Betting on Catastrophe Risk Trump’s 2016 Win Shook Markets. Traders Won’t Get Fooled Again. Putin Orders Hunt for Property of Russian Empire, Soviet Union Burger King Is Serving Whoppers With a Side of Cringe Production across the US was curtailed by about 10 million barrels this week, according to market participants who asked not to be named because the information is private. Losses in the Permian Basin of Texas and New Mexico are estimated at around 6 million barrels and shut-in output in North Dakota’s Bakken is seen at close to 3.5 million barrels. In Midland, in the heart of the Texas Permian, temperatures dipped below freezing in 11 out of the 19 days of this month. The cold has been especially bitter in past few days, with the lows below 20F (-7C) for most of the week, according to Accuweather. Extremely low temperatures freeze water at the wellhead, shutting in production. Icy roads make it difficult for vacuum trucks — used to haul away waste water — to reach drill pads, causing drillers to either halt pumping or curtail rates, the people said. The losses currently amount to less than 1% of total US crude production, which is around 13 million barrels a day, but they are expected to linger or even rise in North Dakota. In the city of Williston, at the center of the Bakken formation, below-freezing temperatures are expected throughout the end of the month, posing continued challenges. Oil producers there may need at least a month to restore output to normal levels after more than half of the state’s flows were cut off this week, state officials said. Natural gas gathering systems that are connected to oil wells fill up with liquids during extreme cold, disrupting the operation of compressors, said Lynn Helms, North Dakota’s mineral resources director. Crude wells are then shut in to avoid flaring. “It will be a long, slow recovery,” Helms said on a webcast. “January will be a very, very bad month.” Drillers in the third-largest oil-producing US state have restored some output after the extreme cold knocked out as much as 700,000 barrels a day of production earlier this week. The state produced about 1.3 million barrels a day in November, the most recent month of data. Story continues The volume of shut-in production has been cut by almost half to between 350,000 barrels a day and 400,000 barrels a day as of Friday, Justin Kringstad, director of the state’s pipeline authority, said in an email. That’s still more than the average 2022 output of OPEC member Congo. Read More: TotalEnergies Port Arthur Regains Power While Remaining Shut Frigid weather also disrupted refining operations in the southern US this week. About 1.5 million barrels of the Gulf Coast’s refining capacity — roughly 15% of the region’s total — was offline as of Friday, both due to the cold and scheduled maintenance, according to Wood Mackenzie. About 1.8 million barrels of crude-processing capacity was idled across the US as a whole. Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P. View comments

2024-01-19 21:27:06+00:00

{"Bitcoin": [490, 4241]}

{}

Why Litecoin Popped More than 5% Today

https://finance.yahoo.com/news/why-litecoin-popped-more-5-212706138.html

Motley Fool

http://www.fool.com/

It's been a mixed day thus far for crypto investors, with a bifurcation among various top-tier cryptocurrencies and their smaller counterparts appearing to build. One notable large-cap winner in today's market is Litecoin (CRYPTO: LTC) , which has surged 5.3% over the past 24 hours as of 3:15 p.m. ET. Now a top 20 cryptocurrency by market capitalization (currently ranked No. 18), Litecoin remains a top proof-of-work network investors view as a proxy for the crypto payments niche. Like Bitcoin , a significant driver of Litecoin's value comes from transaction volumes, with Litecoin distinguishing itself as a relatively faster, cheaper, and more efficient network for transactions. Thus, recent news that Litecoin has actually become the leading crypto network for payments has stoked investor interest in this token over the past week. Nearly 40% of all blockchain-based transactions now take place on the Litecoin blockchain, suggesting growing adoption from users and merchants is driving a strong fundamental bull case for this token. Additionally, reports from earlier today suggest that trading volume has picked up for Litecoin, with $300 million of additional volume being processed over the past 24 hours. Purchases from large accounts (known as whales in the crypto community) appear to be driving much of the volume increase seen with Litecoin. These reports also coincide with news that more than 18 million ordinals have been inscribed on the Litecoin network, and its mining difficulty has now reached an all-time high. Let's dive into what these factors mean for Litecoin investors moving forward. Strong data points in the right direction A key criticism around digital assets such as cryptocurrencies is that there really aren't really any sort of traditional fundamentals an investor can use to value these projects. Unlike companies, which produce cash flows, or even commodities, which have inherent bartering value, valuing a digital ecosystem or blockchain network is a much more difficult task. Story continues That said, for a transaction-focused network like Litecoin, higher volumes generally lead to higher fees. And as mining difficulty increases on the network, there's a mathematical link between the value of a Litecoin token and its corresponding network. Thus, news that Litecoin mining difficulty is at an all-time high and transaction volumes on the network encompass roughly two-fifths of all crypto transactions should spur investor confidence in this project. Litecoin's growth and maturity as a crypto project (it's one of the old guard, to be sure, established in 2011) positions this token well to capture future transaction growth over time. Is Litecoin a buy at current levels? As is the case with any crypto asset, assessing Litecoin's current valuation really requires an investor to consider where they think this sector is headed in the future. Litecoin's current status as a transaction-focused blockchain network certainly holds value. But if regulators clamp down on this space or users simply lose interest in crypto and choose to transact using the traditional financial system, the bull thesis around Litecoin quickly deteriorates. I think investors interested in Litecoin, or any cryptocurrency for that matter, need to pay close attention to network growth as a primary metric. Thus far, Litecoin has surprised me, and I will dive deeper into this network's fundamentals in future articles. Should you invest $1,000 in Litecoin right now? Before you buy stock in Litecoin, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Litecoin wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*. See the 10 stocks *Stock Advisor returns as of January 16, 2024 Chris MacDonald has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bitcoin. The Motley Fool has a disclosure policy . Why Litecoin Popped More than 5% Today was originally published by The Motley Fool

2024-01-19 21:28:46+00:00

{"Bitcoin": [2409]}

{}

Mobile App Kaspi.kz Rises After $1 Billion US IPO

https://finance.yahoo.com/news/mobile-app-kaspi-kz-rises-181454648.html

Bloomberg

https://www.bloomberg.com/

(Bloomberg) -- Kaspi.kz’s US shares gained 4.3% after the Kazakhstan mobile app company’s investors raised more than $1 billion in an upsized initial public offering, the world’s biggest listing since October. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hedge Funds Rake in Huge Profits Betting on Catastrophe Risk Trump’s 2016 Win Shook Markets. Traders Won’t Get Fooled Again. Putin Orders Hunt for Property of Russian Empire, Soviet Union Burger King Is Serving Whoppers With a Side of Cringe The American depositary shares, which were trading below their IPO price until the final minute of their New York debut Friday, closed at $95.97, giving the company a market value of about $18 billion. After the close of regular trading, the shares fell back toward $92, their price in the IPO. The firm’s London-traded global depositary receipts dropped 4.7% to $92.50 in London earlier Friday. It was the world’s biggest debut since Birkenstock Holding Plc raised $1.48 billion three months ago, according to data compiled by Bloomberg. Dozens of IPO candidates are looking for any sign that a two-year lull in listings might be coming to an end. Kaspi.kz Chairman Vyacheslav Kim, Chief Executive Officer Mikheil Lomtadze and Asia Equity Partners Ltd. sold 11.3 million American depositary receipts in the IPO after earlier planning to sell 9 million, according the company’s filings with the US Securities and Exchange Commission. The company isn’t receiving any proceeds from the listing. Kaspi.kz, operating in Kazakhstan, offers the Kaspi.kz Super App, a mobile app for consumers with a diverse range of services, and the Kaspi Pay Super App for merchants and entrepreneurs. The consumer app had 13.5 million average monthly active users as of Sept. 30, according to the filings. Kaspi.kz is also listed on both the Kazakhstan Stock Exchange and the Astana International Exchange. The company said it had net income of $1.27 billion on revenue of $2.83 billion for the nine months ended Sept. 30. Story continues The offering of the US shares was led by Morgan Stanley, JPMorgan Chase & Co. and Citigroup Inc. The shares are trading on the Nasdaq Global Select Market under symbol KSPI. (Updates with closing share price in second paragraph) Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P.

2024-01-19 21:36:43+00:00

{"Bitcoin": [5045]}

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US Weighs Stepping Up Fight Against Houthis as Chaos Drags On

https://finance.yahoo.com/news/us-weighs-stepping-fight-against-213643980.html

Bloomberg

https://www.bloomberg.com/

(Bloomberg) -- The US and the UK are exploring ways to step up their campaign against Houthi militants in Yemen without provoking a broader war, with a focus on targeting Iranian resupplies and launching more aggressive pre-emptive strikes, people familiar with the matter said. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Presidential Race Hedge Funds Rake in Huge Profits Betting on Catastrophe Risk Trump’s 2016 Win Shook Markets. Traders Won’t Get Fooled Again. Putin Orders Hunt for Property of Russian Empire, Soviet Union Burger King Is Serving Whoppers With a Side of Cringe The proposals could mark an escalation in the allied effort to end the chaos in the Red Sea, which handled about 12% of global trade before the Houthis began targeting commercial ships in response to Israel’s bombardment of the Gaza Strip. The Houthi attacks has led to higher insurance costs and provoked fears of fresh inflationary pressure as ships take a longer and costlier route around the southern tip of Africa. The risk is that more aggressive action will put the US in direct conflict with Iran and provoke the sort of regional conflagration that President Joe Biden says he wants to avoid. But the considerations stem from a recognition that a series of US and UK strikes against the Houthis so far hasn’t deterred the group or degraded its ability to target commercial shipping. In fact, the Houthis have vowed to step up their attacks in the week since the allies began targeting them. The people familiar with the matter, who asked not to be identified discussing private deliberations, said the US and UK are examining ways to better disrupt Iranian efforts to resupply the Houthis at sea, especially given that it will be harder to sever land routes. A British official echoed that argument, saying officials are weighing various types of military operations to disrupt Iranian weapons flows to the Houthis. Advocates for more aggressive action also argue that the time is ripe because of what they see as an emerging Iranian weakness. People familiar with the US stance say that the leadership in Iran may have overextended itself with its support for the Houthis along with launching attacks in Pakistan and Iraq, and may not respond to further escalation. Story continues That’s coupled with a growing fear that the Red Sea turmoil may go on longer than initially expected. Since mid-November, at least 16 ships have suffered direct strikes by Houthi drones or missiles, according to data from intelligence firm Ambrey Analytics. There’s already some evidence that the US and allies have taken a more aggressive approach. Last week, US forces boarded a dhow in the Arabian Sea and seized Iranian-made missile components bound for the Houthis, the Pentagon said. Two Navy SEALS were lost in that operation. On Friday, National Security Council spokesman John Kirby said the US had struck three anti-ship cruise missiles that were “sitting on the rails ready to go.” That contrasts with previous strikes against launchers that were believed to pose an immediate threat. “The Houthis need to stop these attacks — they can make that choice,” Kirby said. “We have choices to make, too. And we have options available to us as well. We’ll continue to explore those options.” The allies have also had discussions about whether current rules of engagement allow for the sort of aggressive strikes that officials envision. On Thursday, Pentagon spokeswoman Sabrina Singh said the commander of US Central Command, General Michael Kurilla, already has the authority he needs to take defensive action, and another US official said no policy changes are needed. Read More: US Now Pursuing ‘Least Bad’ Option in Confronting Houthis The people familiar with the US stance said administration officials believe Iran has overplayed its hand and provoked unease in Arab capitals, where leaders fear they could also be targets. Countries in the Middle East and beyond are increasingly concerned about Iran’s actions and are banding together at the United Nations and elsewhere to push back against Tehran and its proxies, a senior State Department official said. In recent days, Iran has launched missile attacks on sites in Iraq and Pakistan, angering those countries’ governments and increasing the risks of broader regional conflict. Top Iraqi officials issued rare public criticisms of Iran after Tehran attacked what it said was an Israeli spy base in Iraq with missiles in revenge for the assassination of one of its commanders in Syria. Addressing the US attacks at the World Economic Forum in Davos, Switzerland, on Tuesday, US National Security Adviser Jake Sullivan said “we are not looking for regional conflict.” But he said “we reserve the right to take further action” because the Houthis can’t be permitted to hijack world trade. --With assistance from Matthew Martin, Alex Wickham and Courtney McBride. Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P.

2024-01-19 21:42:38+00:00

{"Bitcoin": [2715]}

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Saudi Arabia’s PIF Is Key Backer of Electric Racing Leagues

https://finance.yahoo.com/news/saudi-arabia-emerges-key-investor-162214171.html

Bloomberg

https://www.bloomberg.com/

(Bloomberg) -- Saudi Arabia’s Public Investment Fund has pumped tens of millions of dollars into electric racing leagues — backing tournaments for cars, SUVs and boats — as part of its push to build media influence and green credentials. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hedge Funds Rake in Huge Profits Betting on Catastrophe Risk Trump’s 2016 Win Shook Markets. Traders Won’t Get Fooled Again. Putin Orders Hunt for Property of Russian Empire, Soviet Union Burger King Is Serving Whoppers With a Side of Cringe The kingdom’s $700 billion sovereign wealth fund owns significant stakes in racing entrepreneur Alejandro Agag Longo’s Formula E Holdings Ltd., off-road electric SUV racing startup Extreme E, and electric hydrofoil series E1, filings show. The investments underscore how the PIF is becoming an almost ubiquitous investor across sport, from golf to soccer to boxing, a trend that shows the nation pushing to build cultural influence and a post-oil economy. Sign up for the Bloomberg Business of Sports newsletter The country could be a valuable source of future investment for the Formula E series, an all-electric alternative to Formula One, Formula E Chief Executive Officer Jeff Dodds said. Formula E’s biggest owners, Warner Bros Discovery Inc. and Liberty Global Plc, are open to strategic investors to speed up the franchise’s development and tap into new audiences and geographical territories following the start of its 10th season this month, he said in an interview at the company’s London headquarters. “If they’re interested in investing in sport, sustainability and innovation, and we have a great relationship with them, obviously we would have conversations with them,” Dodds said of Saudi Arabia. The championship’s next two races are scheduled for the Saudi city of Diriyah. A representative for the PIF declined to comment. As of January 2023, PIF holds 5.5% of Hong Kong-based Formula E’s B-preferred shares and 9.6% of its ordinary shares, according to company accounts, worth €6.3 million ($6.9 million). It acquired the shares in February 2020. Story continues At Extreme E Hong Kong Holdings Ltd., the SUV-racing sport’s parent company, PIF holds all the preferred A ordinary shares, equating to 55% of the total share value as of September 2023. That stake is worth €50 million, according to another filing. Meanwhile, UK accounts show that PIF owns 50% of the total number of shares in Electric Sea Racing Ltd., known as E1. --With assistance from Lucas Shaw. (Updates amount in sovereign wealth fund) Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P.

2024-01-19 21:43:59+00:00

{"Bitcoin": [5599]}

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Stocks Reach Record on Fed Bets Loaded With Risk

https://finance.yahoo.com/news/stocks-reach-record-fed-bets-214359954.html

Bloomberg

https://www.bloomberg.com/

(Bloomberg) -- A raging debate about the path of monetary policy is falling on deaf ears among traders who have just pushed the S&P 500 to a fresh record. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hedge Funds Rake in Huge Profits Betting on Catastrophe Risk Trump’s 2016 Win Shook Markets. Traders Won’t Get Fooled Again. Putin Orders Hunt for Property of Russian Empire, Soviet Union Burger King Is Serving Whoppers With a Side of Cringe Convinced a soft landing can coexist with five or more Federal Reserve rate cuts this year, they’re all in on a market that is already testing earnings-valuation boundaries which prior to the Covid outbreak hadn’t been breached since the early 2000s. It’s a somewhat jarring stance when viewed alongside a batch of hawkish warnings from the Davos crowd, cautious Fedspeak and a dialing back of euphoria in the bond market over the potential for aggressive interest-rate cuts. Recent weeks have also been dotted with macro data showing the economy continues to hum as prints show consumer strength and a resilient job market. “The solid earnings would require a decent, if not solid, economy. That many rate cuts imply an economy sufficiently weak to require aggressive Fed intervention,” said Steve Sosnick, chief strategist at Interactive Brokers. “I don’t see how we get both.” After a wobbly start to the year, the S&P 500 scored a second weekly gain, pushing the index to a new high. Tech stocks led the way, with the Nasdaq 100 hitting a record and climbing almost 3% for the week. Meanwhile, Treasuries that closed 2023 with a historic rally have notched losses in the new year with yields climbing across the curve. Read more: Bets on Soft Landing Push US Stocks to First Record in Two Years This comes as a slew of US central bank officials push back on rate-cut speculation. Fed Bank of Atlanta President Raphael Bostic urged policymakers to proceed cautiously toward easing, while Fed Governor Christopher Waller appeared to question the need for aggressive rate cuts, at least for now. Accordingly, traders who ended 2023 expecting six rate cuts this year have pared the wager to five and become less certain they will begin in March as they were at year-end. Story continues Elsewhere, economic data showing elevated consumer confidence and lower inflation expectations is being absorbed well by traders, for now. US retail sales rose at the strongest pace in three months in December while US consumer sentiment soared in early January to the highest since 2021 as short-term inflation expectations slipped to a three-year low. “‘Good news is good news’ is working right now,” said Peter Tchir, head of macro strategy at Academy Securities. “It takes some recession fears off the table.” More often than not, when rate cuts occurred in the past as a response to “growth worries,” most of the market pain happened in the run-up but was followed by a gain once the easing began, according to an analysis of 10 such cycles since 1984 by Goldman Sachs. But when cuts reflect the normalization of monetary policy rather than an economic slowdown, equities have tended to rally consistently both in the year before the first reduction and for two years afterward, the bank found. Even a scenario of strong economic growth and higher inflation has delivered positive, albeit below-average, performance to stocks historically, data compiled by Ned Davis Research show. Goldman projects above-trend growth and five Fed rate cuts this year, favoring long risk positions, but sees opportunities to add protection as volatility levels remain low. Yet for Deutsche Bank’s Jim Reid, the extent of rate cuts that have been priced into the market would only make sense if a downturn is on the horizon. This doesn’t appear to be the case at the moment. “Our highest conviction thought so far this year has been that the least likely scenario would be the level of rate cuts priced in by the market occurring without a recession,” he wrote in a note. “Such a scenario has felt completely out of place with history and still does.” Traders have been blindsided repeatedly over the last few years by overestimating the odds of easing when inflation has surprised to the upside. That’s left Wall Street on edge after at least six instances over the past two years when the Fed was derailed from a dovish pivot that market participants were betting on. Jim Caron, co-chief investment officer at Morgan Stanley Investment Management, reckons that if the number of rate cuts are less than six this year, “then naturally bond yields have to rise, and because there is high correlation between stocks and bonds right now, that’s going to put pressure on the equity markets,” he told Bloomberg Television on Thursday. While risk-on bets have lifted stocks, much of the advance is the result of gains in technology firms that have a habit of posting profit growth across business cycles. Tech equity funds saw the biggest two-week inflow since August at $4 billion, according to Bank of America Corp., citing EPFR Global data. This leaves the Nasdaq 100 priced above 30 times profits, among the higher readings on record. “Equity markets have clearly priced in a very, very optimistic scenario — in a way that might not turn out to be so optimistic,” said Tatjana Puhan, chief investment officer at Copernicus Wealth Management. --With assistance from Isabelle Lee, Michael Mackenzie and Edward Bolingbroke. Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P.

2024-01-19 21:46:04+00:00

{"Bitcoin": [3171]}

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Fed Officials Say Data Doesn’t Show It’s Time for a Rate Cut Yet

https://finance.yahoo.com/news/fed-officials-data-doesn-t-214604379.html

Bloomberg

https://www.bloomberg.com/

(Bloomberg) -- Three Federal Reserve officials on Friday emphasized that incoming data will guide their decision on when to cut interest rates, and made clear they haven’t seen enough evidence yet to begin easing. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hedge Funds Rake in Huge Profits Betting on Catastrophe Risk Trump’s 2016 Win Shook Markets. Traders Won’t Get Fooled Again. Putin Orders Hunt for Property of Russian Empire, Soviet Union Burger King Is Serving Whoppers With a Side of Cringe “While I think it’s appropriate for us to look forward and ask when would policy adjustments be necessary so we don’t put a stranglehold on the economy, it’s really premature to think that that’s around the corner,” San Francisco Fed President Mary Daly said Friday in an interview on Fox Business. “Do I get consistent evidence that inflation is coming down, or do I get any early signs with the labor market starting to falter?” said Daly, who votes on monetary policy decisions this year. “Neither one of those right now is pushing me to think that an adjustment is necessary.” The odds of a March rate cut have ebbed significantly in recent days, falling below 50% on Friday. Fed officials, including Daly, have pushed back against market expectations of imminent and deep rate reductions this year. Atlanta Fed President Raphael Bostic, while open to changing his outlook, still anticipates the first rate cut won’t be until the third quarter. “I’d be open to changing that outlook and my view about when we need to start cutting rates,” Bostic said in an interview on Fox Business on Friday. But he added that he wants “to make sure that we are well on our way to 2% before we move off of our restrictive stance.” Policymakers’ quarterly projections from December implied three interest-rate cuts in 2024 — or some 75 basis points of cuts. Of course, much depends on what inflation data show over the coming weeks. That includes next week, when the Fed’s preferred inflation gauges for December will be released. Story continues “If we continue to make surprising progress faster than was forecast on inflation, then we have to take that into account in determining the level of restrictiveness,” Chicago Fed President Austan Goolsbee said Friday in an interview on CNBC. As inflation comes down, “we would clearly be evaluating the responsiveness.” While Goolsbee didn’t comment directly on the timing of the central bank’s first rate cut, he suggested that if price pressures ease faster than anticipated, policymakers can lower borrowing costs to ensure that real interest rates — adjusted for inflation — don’t keep rising. “It’s fundamentally about the data and what will enable us to become less restricted is if we have clear evidence that we’re on a path to get to the 2% target,” Goolsbee said. The policymakers spoke just hours before the Fed’s traditional pre-meeting communications blackout period. The central bank is expected to keep rates unchanged again when they convene Jan. 30-31. Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P.

2024-01-19 22:02:49+00:00

{"Bitcoin": [11189, 11850]}

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S&P 500 Hits All-Time High in Historic Bull Run: Markets Wrap

https://finance.yahoo.com/news/asian-stocks-climb-nasdaq-hits-222137868.html

Bloomberg

https://www.bloomberg.com/

(Bloomberg) -- Wall Street ended the week on a positive note, with stocks closing at all-time highs on speculation the Federal Reserve will start cutting rates this year — bolstering the outlook for Corporate America. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hedge Funds Rake in Huge Profits Betting on Catastrophe Risk Putin Orders Hunt for Property of Russian Empire, Soviet Union Gloom Over China Assets Is Spreading Beyond Battered Stocks Trump Retires ‘DeSanctimonious’ Insult After DeSantis Backs Him Another rally in the S&P 500’s most-influential group — technology — drove the gauge to a record for the first time in two years. Fueled by hopes the artificial-intelligence boom will keep powering the market higher, the benchmark topped 4,800 — defying warnings that the rally remains concentrated in a narrower group of shares. Equities pushed higher on Friday as a drop in Treasury volatility continued to bode well for risk-taking on Wall Street. Also helping sentiment somewhat was a report seen by many as “Fed-friendly,” showing a mix of high consumer confidence and lower inflation expectations. “After a more than two-year wait, the stock market hit a new record high,” said Greg McBride at Bankrate. “Easing inflation pressures and the prospect of both lower interest rates and a soft economic landing have stoked investors’ appetite for risk.” The S&P 500 added 1.2%, erasing this week’s losses. The tech-heavy Nasdaq 100 outperformed, with Advanced Micro Devices Inc. hitting a record and Nvidia Corp. leading megacaps higher. Treasury 10-year yields were little changed. The dollar fell. “Much more good than bad news in the underlying economic data as we enter 2024, with inflation cooling,” said Art Hogan at B Riley Wealth. “We’re seeing a plausible path to inflation continuing to ease gradually, an end to Fed rate hikes, and a re-acceleration of economic growth in the back half of 2024.” After hitting a low in October 2022, the S&P 500 has surged about 35% and topped its previous closing high of 4,796.56 on Friday. The gauge became the last of the three major US equity benchmarks to close at a record. And if history is any guide, there’s potential for further gains ahead. The gauge went 512 trading days without a record through Thursday, which ranks as the sixth-longest streak since 1928, according to Ned Davis Research. One year after hitting new highs, the index has risen 13 out of 14 times by a median of 13% in that span. “The equity market’s path of least resistance seems to be higher until the consumer pulls back and/or the labor market buckles,” said Nicholas Bohnsack at Strategas. “In the absence of a ‘soft patch’ we remain positive on the equity market having increased exposure to stocks into year-end but suspicious the same mix that led the market last year, i.e., the ‘Magnificent 7’ will continue to carry the day.” Story continues The same group of companies that led a stellar run in stocks last year is once again on the driver’s seat in 2024. So far in January, Nvidia, Microsoft Corp. and Meta Platforms Inc. — all part of the “Magnificent Seven” cohort — are the biggest point gainers in the S&P 500. Meta shares also closed at a record as the Facebook parent fully recovers from a selloff that at one point had erased more than three-fourths of its value. Meantime, semiconductor shares got a boost this week from a bullish forecast Taiwan Semiconductor Manufacturing Co. “Despite concerns regarding the Fed’s timetable for initiating rate cuts, and the possibility of Treasury needing to increase its funding requirements, markets — once again — rewarded mega technology as the promise of generative AI increasingly becomes a reality,” said Quincy Krosby at LPL Financial. Investors are reverting to owning growth, technology, the “AI bubble” as the 10-year Treasury yield settles in a range of 3.75% to 4.25%, according to Bank of America Corp.’s Michael Hartnett. While US shares saw redemptions at $4.3 billion in the week through Jan. 17, tech-stock funds saw the biggest two-week inflow since August at $4 billion, BofA said, citing EPFR Global data. “Bottom line, we’re off the bullish boil and the boat is less full, but it’s still leaning firmly positive,” said Peter Boockvar, author of the Boock Report. After being caught flat-footed early last year, fund managers have gone all-in on technology stocks — so much so that it’s sparking warnings that the Nasdaq 100 is looking ever more vulnerable to investor pullbacks. Hedge funds hold the highest level of net-long Nasdaq 100 futures in nearly seven years, according to Societe Generale’s weighted analysis of data on the Nasdaq 100 Index futures and e-mini contracts provided by the Commodities Futures Trading Commission. Meanwhile, a global fund manager survey from Bank of America this month showed the most crowded trade is being long the so-called Magnificent Seven stocks and other tech-related growth shares as a way to play the prospect of Fed easing. “Based on the recent price action, Nasdaq 100 traders don’t seem particularly concerned about the upcoming earnings reports,” said Matthew Weller at Forex.com and City Index. Now, with the “Magnificent Seven” stocks collectively trading at an “eye-watering” valuation, “the only thing that could drag down the Nasdaq 100 may be poor earnings results,” he noted. While narrow areas of US equity markets are dazzling investors with new highs, such action continues to mask a widening divergence underneath the surface that speaks of ongoing “technical disease,” according to Dan Wantrobski at Janney Montgomery Scott. “Narrow leadership such as this is a throwback to last year (mega-cap/AI/Mag 7), and our belief is that if it persists, it will trigger a wider bout of volatility not too far down the road,” Wantrobski added. The combination of better-than-expected growth and a meaningful improvement in inflation — which gives the Fed flexibility to cut interest rates — is giving UBS’s Chief Investment Office greater conviction in its base case for an economic soft landing. While this benign outcome is mostly priced into equity markets, market gains can extend a bit further, the firm notes. “Our June and December S&P 500 price targets are 4,900 and 5,000, respectively,” said David Lefkowitz at UBS Global Wealth Management. “We maintain a neutral preference for US equities in our tactical asset allocation. With S&P 500 valuations full, in our view, we look for a pickup in earnings growth to be the primary driver of the somewhat modest upside that we expect.” A double-digit stock rally led by megacaps in 2023 means an ever-enlarging chunk of the benchmark index is acutely tied to long-term earnings prospects — and hence more sensitive to rising yields. With inflation concerns lingering, positive stock-bond correlations have firmed back up. The 60-day correlation between the S&P 500 and benchmark Treasuries turned positive again and has threatened bonds’ hedging role since August of last year. “The good news is the market has done a decent job of working off some of the extremes in price and sentiment through a correction in time and through churning, as opposed to intense selling pressure,” said Keith Lerner at Truist Advisory Services. “Economic, earnings, and credit trends continue to show resilience.” “Valuations have been driven higher by three main factors: avoiding a recession in 2023, a Federal Reserve pivot lowering borrowing costs, and higher earnings expectations for 2024,” said Rob Swanke at Commonwealth Financial Network. “Still, interest rates are much higher than at the beginning of 2022 and earnings expectations for 2024 are already high,” he noted, “so expectations should be tempered.” Traders also kept a close eye on remarks from policymakers, who spoke just hours before the Fed’s traditional pre-meeting communications blackout period. Three Fed officials on Friday emphasized that incoming data will guide their decision on when to cut interest rates, and made clear they haven’t seen enough evidence yet to begin easing. Fed Bank of Chicago President Austan Goolsbee said a continued decline in inflation would merit discussion of reducing rates, though he stressed the central bank will make decisions meeting-by-meeting. His Atlanta counterpart Raphael Bostic said he’s open to changing his views on the timing of cuts depending on the data, though he wants to be sure inflation is “well” on the way to the 2% goal before easing policy. San Francisco Fed chief Mary Daly said it’s far too early to declare victory on inflation. Markets are overpricing the pace and amount of Fed-rate cuts as they are overlooking stubbornly high inflation, according to economist Mohamed El-Erian. “I do think that we get to the pivot, but relative to what the market expects, it won’t be as fast or as deep,” said El-Erian, president of Queens’ College, Cambridge, and a Bloomberg Opinion columnist. Traders have tempered their wagers on rate cuts as US economic data continued to show resilience and Fed officials emphasized they want to ensure inflation is tamed before embarking on any cuts. Markets are now pricing in about 1.4 percentage points of reductions this year, compared with expectations of as much as 1.7 percentage points of easing as recently as last week. Corporate Highlights: Apple Inc. vowed to open up its coveted tap-to-pay technology on iPhones to rivals in a bid to sidestep potentially massive European Union antitrust fines. Amazon.com Inc.’s proposed $1.4 billion acquisition of Roomba maker iRobot Corp. is expected to be blocked by the European Union’s antitrust regulator over concerns that the deal will harm other robot vacuum makers. Ford Motor Co. cut production of its F-150 Lightning electric truck amid fading demand for electric vehicles. J.B. Hunt Transport Services Inc. hauled more containers of freight than Wall Street expected in the fourth quarter, suggesting the sector may be recovering after a bad year. JetBlue Airways Corp. and Spirit Airlines Inc. appealed a federal judge’s ruling blocking their planned $3.8 billion merger in a last-ditch effort to save a deal that many analysts believe is dead. SLB will raise its payout to shareholders by 10%, marking the highest dividend since 2020, as a ramp-up in drilling outside of North America buoyed results for the world’s biggest oil-field contractor. Ally Financial Inc. announced fourth-quarter results that topped analysts’ estimates and said it will sell a point-of-sale financing business that includes $2.2 billion of loan receivables to Synchrony Financial. Comerica Inc. said net interest income will probably slide 11% this year and reported a plunge in fourth-quarter profit on a series of one-time charges. Some of the main moves in markets: Stocks The S&P 500 rose 1.2% as of 4 p.m. New York time The Nasdaq 100 rose 2% The Dow Jones Industrial Average rose 1.1% The MSCI World index rose 1.1% Currencies The Bloomberg Dollar Spot Index fell 0.2% The euro rose 0.2% to $1.0895 The British pound was little changed at $1.2701 The Japanese yen was little changed at 148.14 per dollar Cryptocurrencies Bitcoin rose 1.4% to $41,638.5 Ether rose 1% to $2,479.65 Bonds The yield on 10-year Treasuries was little changed at 4.14% Germany’s 10-year yield was little changed at 2.34% Britain’s 10-year yield was little changed at 3.93% Commodities West Texas Intermediate crude fell 0.4% to $73.82 a barrel Spot gold rose 0.2% to $2,028.23 an ounce This story was produced with the assistance of Bloomberg Automation. --With assistance from Farah Elbahrawy, Michael Mackenzie, Liz Capo McCormick, Kristine Aquino, Denitsa Tsekova and Jessica Menton. Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P. View comments

2024-01-19 22:24:24+00:00

{"Bitcoin": [5935]}

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Spirit Airlines’ Broken Finances Sow Narrow Path to Survival

https://finance.yahoo.com/news/spirit-airlines-broken-finances-sow-202745709.html

Bloomberg

https://www.bloomberg.com/

(Bloomberg) -- Spirit Airlines Inc.’s bonds got a boost on Friday after the company told investors it was looking to refinance upcoming debt maturities. But their deeply distressed prices suggest it faces an uphill battle to avoid becoming the latest in a long line of US air carriers to go bust. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hedge Funds Rake in Huge Profits Betting on Catastrophe Risk Putin Orders Hunt for Property of Russian Empire, Soviet Union Gloom Over China Assets Is Spreading Beyond Battered Stocks Trump Retires ‘DeSanctimonious’ Insult After DeSantis Backs Him The company’s 8% notes due 2025 jumped nearly 12 cents on the dollar to 63.25 cents, but still yield almost 40%, signaling bondholders’ skepticism about Spirit’s future. They have good reason to be cautious: with about $2.5 billion in debt and flagging revenue, the budget airline already enjoys no advantages in a market tightening the reins on risky borrowers. A bright spot — and potential lifeline — for Spirit is its fleet, which is one of the youngest among US carriers when there’s a premium on good planes. Airlines have had luck raising money using their fleet and even spare parts, which Spirit began doing in December in a series of sale-leaseback deals on its planes. After a federal antitrust ruling Tuesday scuttled JetBlue Airways Corp.’s proposed $3.8 billion acquisition of Spirit Airlines, stakeholders are rushing to determine the latter’s path forward. Its remaining financing options may require a heavy dose of creativity. Both airlines appealed the ruling Friday in a last-ditch effort to save the deal. Representatives for Spirit didn’t provide a comment Friday on the company’s financial prospects. In statements Thursday, the company said it was “not pursuing nor involved in a statutory restructuring,” and that it “has been taking, and will continue to take, prudent steps to ensure the strength” of its finances and ongoing operations. High-Yield Deal Debt markets have been relatively accommodating in recent weeks, with borrowers looking to tweak some of the terms of their loans and even issuers rated at the lower end of the junk spectrum addressing their maturities. Spirit, however, is contending with challenges stemming from its slim margins combined with payments on leases and debt. The company has bled cash in three of the past five quarters, according to data compiled by Bloomberg. That doesn’t bode well for its refinancing prospects on notes due in September 2025. It’s set to receive $70 million via a “breakup fee” if the merger fails to go through and could also see as much as $500 million from engine maker RTX Corp. to compensate it for problems that have grounded some of its fleet, according to George Ferguson, a Bloomberg Intelligence analyst. These are short-term payments and don’t solve the issue of cash burn. Story continues Valuable Assets Companies like Spirit, which rely on expensive machinery in order to operate, have a history of using their fleet as collateral to borrow fresh cash. The airline could ask current bondholders to swap their notes for longer-dated maturities backed by new or better equipment, in what’s often deemed a distressed exchange. Spirit had a fleet of 202 Airbus SE A320-family aircraft, as of Sept. 30. Delivery delays from aircraft manufacturers, the temporary grounding of Boeing Co.’s Max 9, parts shortages and lengthy or delayed engine repairs have resulted in a shortage of planes across the industry. Spirit’s operating fleet has an average age of 6.4 years, making it second youngest in a group of 13 US carriers, just behind rival deep discounter Frontier Group Holdings Inc., according to data from Cirium. Yet with a business that is fundamentally challenged, even valuable equipment has limits to its appeal. “Whoever provides financing, number one, has to be convinced that Spirit is viable as an independent-going enterprise, and I’m not sure it is,” said Blake Haxton, a credit analyst at Brandywine Global Investment Management. Even though Spirit has its fleet, most of the equipment is already pledged as collateral on existing debt. What remains isn’t enough to support the amount of cash it needs to raise, according to Bloomberg Intelligence’s Ferguson. “That is going to make it extremely challenging.” he said. “They have to manage 2024 very carefully,” and “minimize cash burn.” Private Credit Spirit could alternatively lean on the $1.6 trillion private credit market, which often provides financing in distressed situations. Doing so could also prod existing creditors to cooperate before potential funds from new investors subordinate their holdings and further crush recovery hopes in the event of a bankruptcy or liquidation. “The bondholders have a huge incentive to get in there and help Spirit through the situation,” Ferguson said. Sale for Parts While ending up in the halls of bankruptcy court doesn’t always mean the demise of an enterprise, Spirit’s options are limited when it comes to using Chapter 11 protection to shed burdensome liabilities and reemerge as a more functional business. The industry’s aircraft shortage may mean lessors or banks could decline to negotiate lower rates if the planes would be worth more in the open market, Conor Cunningham, a Melius Research analyst, said in a note. There’s likely not much room to seek employee concessions either, he said, with pilot rates 14% below those at Delta Air Lines Inc. Spirit also may face “a mass exodus altogether” among employees, he added. --With assistance from Mary Schlangenstein, Jill R. Shah, Reshmi Basu, Jeremy Hill and Richard Clough. (Updates to add information about Spirit and JetBlue appealing a federal judge’s ruling blocking their planned merger in paragraph four.) Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P. View comments

2024-01-19 22:38:12+00:00

{"Bitcoin": [1322, 2487]}

{}

S&P 500 hits all-time high as new economic data fuels rate-cut bets

https://finance.yahoo.com/news/us-stocks-jump-chipmakers-add-223812463.html

Business Insider

https://www.businessinsider.com/

Traders work on the floor of the NYSE Thomson Reuters US stocks climbed on Friday, with the S&P 500 soaring to an all-time record above 4,800. The benchmark index's all-time closing high of 4,796.56 was set in January 2022. The tech sector continued to drive gains after rallying on Thursday. US stocks climbed Friday, continuing Thursday's gains and pushing the S&P 500 toward an intraday record high of 4,818.70. The benchmark index inched above the intraday record of 4,818.62 shortly after 1:00 p.m. ET Friday, and needs to end the session above 4,796.56 to beat its January 2022 all-time closing high. Powering the gains in Friday's session was data that helped fuel bets the Federal Reserve could be close to cutting interest rates. Year-ahead inflation expectations in the University of Michigan's consumer sentiment survey softened to 2.9%, the lowest mark since December 2020. Consumer sentiment climbed to 78.8 in January, the highest since July 2021. Tech and chip stocks rallied again on Friday, after Taiwan Semiconductor reported strong earnings this week, while Apple got a vote of confidence from Bank of America as it received a "buy" rating from strategists. Chip stocks also got more momentum after Mark Zuckerberg suggested late Thursday that Meta is spending massive amounts of money on Nvidia chips. Bitcoin, meanwhile, hovered near its lowest price in a month, despite the ongoing hype around Wall Street's new spot  ETFs, which have seen billions of dollars in inflows since being approved by the Securities and Exchange Commission earlier this month. Here's where US indexes stood shortly after 1:00 p.m. ET on Friday: S&P 500 : 4,820.57, up 0.83% Dow Jones Industrial Average : 37,753.87, up 0.76% (+284.51 points) Nasdaq Composite : 15,225.02, up 1.13% Here's what else is going on: Blackstone boss Steve Schwarzman said animal spirits have returned to the stock market. The Red Sea attacks are creating chaos in the global coffee trade . LPL Financial expects the Magnificent 7 stocks to continue outperforming the market . Reddit is reportedly eyeing an IPO in March . The Chinese yuan dethroned the dollar as the top currency traded in Russia. Story continues In commodities, bonds, and crypto: Oil prices edged higher, with West Texas Intermediate up 0.34% to $74.32 a barrel. Brent crude , the international benchmark, moved up 0.18% to $79.22 a barrel. Gold rose 0.76% to $2,036.10 per ounce. The 10-year yield moved up 1 basis point to hover at 4.155%. Bitcoin climbed 0.78% to $41,231. Read the original article on Business Insider

2024-01-19 23:17:46+00:00

{"Bitcoin": [2444]}

{}

American Healthcare REIT Seeking $700 Million in NYSE IPO

https://finance.yahoo.com/news/american-healthcare-reit-seeking-700-223832592.html

Bloomberg

https://www.bloomberg.com/

(Bloomberg) -- American Healthcare REIT Inc. is seeking to raise about $700 million in an initial public offering, according to people familiar with the situation. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hedge Funds Rake in Huge Profits Betting on Catastrophe Risk Putin Orders Hunt for Property of Russian Empire, Soviet Union Gloom Over China Assets Is Spreading Beyond Battered Stocks Trump Retires ‘DeSanctimonious’ Insult After DeSantis Backs Him The Irvine, California-based senior housing and assisted living property owner could start gauging investor interest in the listing as soon as next week, the people said, asking not to be identified as the information is private. The company is a non-traded REIT, which is required to make regular filings and only infrequently trades over the counter. Details of the IPO such as size and timing could still change, the people said. A representative for American Healthcare REIT declined to comment. The self-managed real estate investment trust’s IPO is set to be among the first batch of listings testing the still-nascent rebound in the IPO market. They include KKR & Co.-backed BrightSpring Health Services Inc., which is aiming to raise as much as $1.36 billion from the sale of shares and convertible securities as soon as Jan. 25. American Healthcare REIT announced in 2022 that it had filed for an IPO. The firm is working with Bank of America Corp., Morgan Stanley, KeyBanc Capital Markets and Citigroup Inc. on the share sale, according to a preliminary filing. Proceeds from the IPO will be used to reduce existing debt and to fund potential property acquisitions, the filing shows. The investment vehicle acquires, owns and operates a portfolio of properties such as medical office buildings, senior housing, skilled nursing facilities and hospitals, according to the filing. It has nearly 300 properties in states including Indiana, Ohio, Michigan, Texas and Missouri, and values its assets at about $4.6 billion as of Sept. 30, 2023, the filing shows. It also has properties in the UK and the Isle of Man. Story continues The shares are set to trade on the New York Stock Exchange under the ticker symbol AHR. (Updates REIT description in second paragraph and countries where it operates in sixth paragraph.) Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P.

2024-01-19 23:44:00+00:00

{"Bitcoin": [1990, 2543, 3665, 3722]}

{}

Why Altcoins Like Cardano and Arbitrum Flopped This Week

https://finance.yahoo.com/news/why-altcoins-cardano-arbitrum-flopped-234400415.html

Motley Fool

http://www.fool.com/

Is the Great Crypto Rally of 2023 to 2024 over? It was certainly reasonable to think so this week, as both leading coins and altcoins alike shot downward in price. Some of the more popular and once-upwardly mobile altcoins weren't spared in the dive. Cardano (CRYPTO: ADA) declined at a 9% clip, according to figures from crypto-exchange operator Coinbase . S&P Global Market Intelligence data showed that peers Arbitrum (CRYPTO: ARB) and Ethereum Classic (CRYPTO: ETC) took even heavier blows, declining by a respective 18% and 15%. Spot crypto ETF hype subsides While the old saw "buy the rumor, sell the news" doesn't always apply to investments, it was undoubtedly a dynamic behind the drops of Cardano and its ilk this week. Late last year the excitement over spot cryptocurrency exchange-traded funds (ETFs) began to build, reaching a crescendo when a pack of them -- 13, to be exact -- were approved for trading by the Securities and Exchange Commission (SEC) last week. Why was the market in such a froth over these fairly wonky assets? Because, despite their fairly boring name, they represent a major development in crypto investing. Prior to their introduction, the only really effective way to hold digital coins and tokens was directly. Stocks and more traditional investments were far easier to buy, sell, and hold. All an investor needs is a brokerage account. With this, they can transact almost instantly whenever they want, while the broker acts as a custodian for their assets. This hasn't been the case for cryptocurrencies, however. Direct ownership involves setting up one or more digital wallets, which require a fair amount of care and maintenance. There have been numerous instances of investors with large holdings forgetting their wallet passwords and not being able to recover them. That's the stuff of any investor nightmare -- being frozen out of assets worth thousands, or even millions or billions. Story continues Spot crypto ETFs (which, so far, only hold Bitcoin ) are neat instruments in which the ETF manager is the one who directly owns the coins or tokens. That company is the entity that needs to worry about juggling digital wallets, not the investor. The latter simply buys the ETF as a security traded on an exchange, much like an index fund or stock. A market pause We've seen this pattern before; excitement builds for a new product or service on the investing scene, and once it arrives, the market moves on. The mounting excitement over spot crypto ETFs wasn't the only factor behind the rise of Bitcoin and altcoins; an improving economic climate and the promise of Federal Reserve key interest-rate cuts also played a major part. But spot crypto ETFs are now a reality, and there hasn't been any major (and sharply favorable) fresh economic news, so it seems investors are taking profits with some coin and token holdings. The market needs a break, and for many of its players, this is a fine time to take one. Should you invest $1,000 in Cardano right now? Before you buy stock in Cardano, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Cardano wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*. See the 10 stocks *Stock Advisor returns as of January 16, 2024 Eric Volkman has positions in Bitcoin. The Motley Fool has positions in and recommends Bitcoin, Cardano, and Coinbase Global. The Motley Fool has a disclosure policy . Why Altcoins Like Cardano and Arbitrum Flopped This Week was originally published by The Motley Fool

2024-01-20 00:45:31+00:00

{"Bitcoin": [977]}

{}

FTCS Jumps 12%: ETF Flows as of Jan. 19

https://finance.yahoo.com/news/ftcs-jumps-12-etf-flows-004531574.html

etf.com

https://www.etf.com/

etf.com Top 10 Creations (All ETFs) Ticker Name Net Flows ($, mm) AUM ($, mm) AUM % Change IVV iShares Core S&P 500 ETF 1,993.14 405,034.63 0.49% VOO Vanguard 500 Index Fund 1,395.04 376,550.88 0.37% FTCS First Trust Capital Strength ETF 1,179.73 9,833.79 12.00% VCIT Vanguard Intermediate-Term Corporate Bond ETF 778.62 46,204.92 1.69% IWY iShares Russell Top 200 Growth ETF 598.98 8,729.26 6.86% TMF Direxion Daily 20+ Year Treasury Bull 3X Shares 493.13 4,855.60 10.16% VCSH Vanguard Short-Term Corporate Bond ETF 447.88 36,255.94 1.24% XLP Consumer Staples Select Sector SPDR Fund 444.89 15,533.00 2.86% QQQ Invesco QQQ Trust 407.23 231,854.13 0.18% QQQM Invesco NASDAQ 100 ETF 398.94 19,629.98 2.03% Top 10 Redemptions (All ETFs) Ticker Name Net Flows ($, mm) AUM ($, mm) AUM % Change SPY SPDR S&P 500 ETF Trust -1,487.81 473,940.72 -0.31% IWM iShares Russell 2000 ETF -682.32 61,048.97 -1.12% SPYV SPDR Portfolio S&P 500 Value ETF -578.20 19,245.96 -3.00% GBTC Grayscale Bitcoin Trust ETF -460.61 24,791.75 -1.86% TLT iShares 20+ Year Treasury Bond ETF -321.77 49,135.84 -0.65% SOXX iShares Semiconductor ETF -280.00 9,968.14 -2.81% IJS iShares S&P Small-Cap 600 Value ETF -273.29 7,163.10 -3.82% JNK SPDR Bloomberg High Yield Bond ETF -263.49 8,739.96 -3.01% AGG iShares Core U.S. Aggregate Bond ETF -225.60 100,803.08 -0.22% RSP Invesco S&P 500 Equal Weight ETF -213.78 48,950.02 -0.44% ETF Daily Flows By Asset Class Net Flows ($, mm) AUM ($, mm) % of AUM Alternatives -3.83 6,699.77 -0.06% Asset Allocation -20.26 16,184.98 -0.13% Commodities -62.47 125,009.99 -0.05% Currency 125.37 31,185.67 0.40% International Equity -489.95 1,323,577.46 -0.04% International Fixed Income 116.19 169,443.34 0.07% Inverse -494.07 14,584.07 -3.39% Leveraged 1,160.87 78,570.31 1.48% U.S. Equity 2,817.30 4,898,397.35 0.06% U.S. Fixed Income 1,017.47 1,358,410.52 0.07% Total: 4,166.61 8,022,063.47 0.05% Disclaimer: All data as of 6 a.m. Eastern time the date the article is published. Data is believed to be accurate; however, transient market data is often subject to subsequent revision and correction by the exchanges. Permalink | © Copyright 2024 etf.com. All rights reserved View comments

2024-01-20 00:55:48+00:00

{"Bitcoin": [55]}

{}

Owning cryptocurrency is like buying a Beanie Baby, Coinbase lawyer argues

https://finance.yahoo.com/news/owning-cryptocurrency-buying-beanie-baby-005548722.html

USA TODAY

https://www.usatoday.com/money/

A visual representation of the digital cryptocurrency, Bitcoin, alongside U.S. dollars. Cryptocurrency is just another version of Beanie Babies, a Coinbase lawyer said in court to argue against classifying the currency as securities. The attorney said crypto is more like collectibles than actual stakes in a company. “It’s the difference between buying Beanie Babies Inc. and buying Beanie Babies,” said Coinbase attorney William Savitt, according to Bloomberg . Savitt compared cryptocurrency to the collectible plushies in a New York federal court when arguing for the dismissal of the lawsuit brought on by the Securities and Exchange Commission in June 2023. Crypto's Nazi problem: With few rules to stop them, white supremacists fundraise for hate Do they know what happened to Beanie Babies? pic.twitter.com/6WlHkizOpi — More Perfect Union (@MorePerfectUS) January 18, 2024 1993 Beanie Babies: These relics of a bygone consumer craze were once much more than cute plush toys—they became their own collectibles economy that still has legs today. There’s nothing quite like a toy that parents insist their children can’t play with, right? Today, those millennials who followed Mom’s rules are asking just how much they can sell their mint-condition purple Ty Princess Diana bear for on eBay. According to Bloomberg, Savitt told U.S. District Judge Katherine Polk Failla that the currency is different from securities because those who buy them do not have any stake in the companies they're from, like they would if they bought stocks or bonds. Legal experts say it might take Failla two-to-six weeks to make a decision regarding the case, according to Fox Business. This isn't the first time the Coinbase has compared cryptocurrency to Beanie Babies. "It is akin to the sale of a parcel of land, the value of which may fluctuate after the sale. Or a condo in anew development. Or an American Girl Doll, or a Beanie Baby, or a baseball card," Coinbase attorneys stated in a motion it filed in August 2023. The motion also points to a judge's ruling that stated Ripple Labs’ crypto coin XRP was not security. Why did the SEC sue? Today we charged Coinbase, Inc. with operating its crypto asset trading platform as an unregistered national securities exchange, broker, and clearing agency and for failing to register the offer and sale of its crypto asset staking-as-a-service program. https://t.co/XPG2gDkxtV pic.twitter.com/hCdVMw8B2v — U.S. Securities and Exchange Commission (@SECGov) June 6, 2023 The SEC filed the lawsuit because Coinbase was "operating its crypto asset trading platform as an unregistered national securities exchange, broker, and clearing agency," according to a statement from the SEC. It states the commission also charged Coinbase for "failing to register the offer and sale of its crypto asset staking-as-a-service program." This article originally appeared on USA TODAY: Cryptocurrency, Beanie Baby comparison made again in Coinbase case View comments

2024-01-20 01:19:25+00:00

{"Bitcoin": [4050]}

{}

Microsoft Says Russia-Linked Group Hacked Employee Emails

https://finance.yahoo.com/news/microsoft-says-russia-linked-group-223446183.html

Bloomberg

https://www.bloomberg.com/

(Bloomberg) -- Microsoft Corp. said a Russian-linked hacking group attacked its corporate systems, getting into a “small number” of email accounts, including those of senior leadership and employees who work in cybersecurity and legal. Most Read from Bloomberg China Weighs Stock Market Rescue Package Backed by $278 Billion India Tops Hong Kong as World’s Fourth-Largest Stock Market Netflix Pays $5 Billion for ‘Raw’ in Bet on Live Events Hong Kong Stocks at 36% Discount Show True Depth of China Gloom Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump The company said it’s acting immediately to fix older systems, which will probably cause some disruption. The hacking group doesn’t appear to have accessed customers’ systems or Microsoft servers that run outward-facing products, the software giant said Friday in a blog post. Microsoft also has no evidence the group, named Midnight Blizzard, got into source code or artificial intelligence systems. “We will act immediately to apply our current security standards to Microsoft-owned legacy systems and internal business processes, even when these changes might cause disruption to existing business processes,” the company said. “This will likely cause some level of disruption.” The group that Microsoft deemed responsible, also known as “Nobelium,” is a sophisticated nation-state hacking group that the US government has tied to Russia. The same group previously breached SolarWinds Corp., a US federal contractor, as part of a massive cyber-espionage effort against US federal agencies. The company said hackers beginning in November used a “password spray” attack to infiltrate its systems. That technique, sometimes known as a “brute force attack,” typically involves outsiders quickly trying multiple passwords on specific user names in order to try breaching targeted corporate accounts. In this case, in addition to the accessed accounts, the attackers also took emails and attached documents. Microsoft said it detected the hack on Jan. 12, adding that the company is still notifying employees whose emails were accessed. Story continues Eric Goldstein, executive assistant director for cybersecurity at the US Cybersecurity and Infrastructure Security Agency, said government officials are “closely coordinating with Microsoft to gain additional insights into this incident and understand impacts so we can help protect other potential victims.” Microsoft technology has frequently been the target of major hacking campaigns. The US Cyber Safety Review Board, which reports to the Department of Homeland Security, is already assessing a 2023 intrusion against Microsoft Exchange Online that the company attributed to China-linked hackers. That breach enabled the hack of senior US officials’ email accounts and has prompted growing concerns about cloud computing security. Microsoft said in September it identified five different errors in how its systems that have “been corrected.” In an interview with Bloomberg in 2023 following that breach, Jen Easterly, director of the agency that manages the board, suggested that Microsoft should “recapture the ethos” of what Microsoft co-founder Bill Gates called “trustworthy computing” in 2002, when he instructed employees to focus on security over adding new features. “I absolutely positively think they have to focus on ensuring their products are both secure by default and secure by design, and we are going to continue to work with them to urge them to do that,” Easterly said of Microsoft. In November, Microsoft said it was overhauling how it protects its software and systems after a series of high-profile hacks. Now the company said it must pick up the pace on changes, particularly to older systems and products. “For Microsoft, this incident has highlighted the urgent need to move even faster,” the company said Friday. (Updates with comments from cyber agency in the eighth paragraph.) Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P.

2024-01-20 01:23:40+00:00

{"Bitcoin": [5, 597, 1156, 1262, 1321]}

{"Bitcoin": [5]}

Spot Bitcoin ETF Inflows Soar; BlackRock Fund Passes $1 Bln

https://finance.yahoo.com/news/spot-bitcoin-etf-inflows-soar-012340370.html

etf.com

https://www.etf.com/

Spot Bitcoin ETF Inflows Soar; BlackRock Fund Passes $1 Bln Newly-minted spot bitcoin ETFs pulled in $3.33 billion in their first five days of trading, as investors enthusiastically embraced the funds after more than a decade of approval delays from regulators concerned about cryptocurrency’s vulnerability to fraud. At the same time, the funds largely declined over the past 5 days in tandem with the price of bitcoin. Over the same period, broad market exchange traded funds such as the SPDR S&P 500 ETF Trust (SPY) jumped in price. The biggest spot bitcoin exchange-traded fund, the Grayscale Bitcoin Trust (GBTC) , struggled. The fund, which came to market as a $28.6 billion trust, lost $5.5 billion, or 19% of its value, according to Bloomberg data, likely due to fees that are the highest among the 11 spot bitcoin funds approved Jan. 11. BlackRock, Grayscale, Fidelity Still, the launch of the investment vehicles appear in their early days to be a rousing success. The funds’ total market capitalization, excluding the Grayscale fund, climbed to $3.25 billion, surpassing silver to become the second largest commodity ETF in the U.S. The iShares Bitcoin Trust (IBIT) led the group, pulling in $1.2 billion since Jan. 11, while the Fidelity Wise Origin Bitcoin Fund (FBTC) has grabbed $1.06 billion. The Bitwise Bitcoin ETF (BITB) brought in $393.8 million, the third-most. Name recognition helped BlackRock, the world’s biggest ETF issuer, as well as Fidelity, grab the most investor money, etf.com senior analyst Sumit Roy said. Bitwise, a far smaller and lesser-known issuer, has performed well with its BITB fund due to a decision to go to market as a low-fee fund, he said. “At nearly $400 million, BITB is punching well above its weight thanks to its category-low expense ratio,” he said. “On the other hand, the inflows for the ETFs from VanEck and WisdomTree have been a disappointment.” Roy noted that by comparison, precious metals ETFs, commodity funds which have been around for decades, had $120 million in outflows over the same period. Story continues While the SEC has allowed ETFs that track bitcoin futures since 2021, it only approved the investment vehicles that give investors exposure to physically backed bitcoin last week after months of anticipation from eager cryptocurrency investors. The funds are seeing massive inflows despite a number of major asset manager, including Vanguard, refusing to let investors trade the funds with them. During etf.com’s spot bitcoin ETF webinar, chief investment officer of Bitwise Matt Hougan said he wasn’t surprised, but expected the ETFs to be more widely adopted by traditional finance platforms soon. "I would be surprised if there will be firms still holding out after a year because these businesses are responsive to their customers, and people are already clamoring to request access to trade bitcoin ETFs,” he said. Contact Lucy Brewster at [email protected] . Permalink | © Copyright 2024 etf.com. All rights reserved

2024-01-20 01:36:28+00:00

{"Bitcoin": [1583]}

{}

Warren Buffett Tells Citi CEO to Continue Overhaul, Reuters Says

https://finance.yahoo.com/news/warren-buffett-tells-citi-ceo-013628216.html

Bloomberg

https://www.bloomberg.com/

(Bloomberg) -- Citigroup Inc. Chief Executive Officer Jane Fraser said billionaire investor Warren Buffett had urged her to continue with the bank’s reorganization efforts during a recent lunch meeting, Reuters reported. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Presidential Race Hedge Funds Rake in Huge Profits Betting on Catastrophe Risk Trump’s 2016 Win Shook Markets. Traders Won’t Get Fooled Again. Putin Orders Hunt for Property of Russian Empire, Soviet Union Burger King Is Serving Whoppers With a Side of Cringe Fraser told managing directors on Thursday about her conversation with Buffett, according to the report. Buffett’s Berkshire Hathaway Inc., one of Citigroup’s largest shareholders, confirmed the lunch took place but declined to provide details about the conversation, Reuters said. The CEO, who is undertaking a broad overhaul of Citigroup that includes the elimination of 20,000 jobs, indicated that more information about the next round of the reorganization would be shared as soon as next week, according to Reuters. Citigroup declined to comment to the news service. The 20,000 job cuts will include the impacts from a broad restructuring of Citigroup that Fraser initiated in September. The bank will begin eliminating more roles as part of that reorganization beginning the week of Jan. 22, she told staffers in a memo seen by Bloomberg. Read more: Citi to Cut 20,000 Roles in Fraser’s Bid to Boost Returns Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P.

2024-01-20 02:53:34+00:00

{"Bitcoin": [2470]}

{}

Musk’s AI Startup Secures $500 Million Toward $1 Billion Funding Goal

https://finance.yahoo.com/news/musk-ai-company-secures-500-000901838.html

Bloomberg

https://www.bloomberg.com/

(Bloomberg) -- Elon Musk’s artificial intelligence company, xAI, has secured $500 million in commitments from investors toward a $1 billion goal, according to people with knowledge of the talks. Most Read from Bloomberg China Weighs Stock Market Rescue Package Backed by $278 Billion India Tops Hong Kong as World’s Fourth-Largest Stock Market Hong Kong Stocks at 36% Discount Show True Depth of China Gloom Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Netflix Pays $5 Billion for ‘Raw’ in Bet on Live Events The company is discussing a valuation of $15 billion to $20 billion, though terms could still change in the coming weeks, the people said, declining to be named because they were not authorized to speak publicly about the investment. Musk said on X, the network formerly called Twitter, that the report was “fake news.” Musk launched the startup last year as an alternative to Open AI, which he co-founded and later left over philosophical differences about how to profit from the technology. xAI’s product, a chatbot named Grok, is developed using social media posts on X, which Musk also owns. That allows Grok to access more recent data for its answers than other chatbots. Read More: Elon Musk’s Grok Represents a Serious Threat to ChatGPT The two companies’ investors will likely overlap too. Those who backed Musk’s $44 billion takeover of Twitter include Larry Ellison, Sequoia Capital, Andreessen Horowitz, Fidelity Management & Research Co. and Saudi Prince Alwaleed bin Talal. Musk said in November that equity investors in X will own 25% of xAI. In practice, that means those investors are invited to invest in xAI at least 25% the amount they invested in X, according to a person with knowledge of the arrangement. If they invested $10 billion in X, they’re invited to invest $2.5 billion or more in xAI, for example. Musk and investors are expected to finalize terms in the next couple weeks, the people said. Some parties are evaluating whether they can get computing power in addition to, or in some cases instead of, xAI equity shares, one of the people said. That would be beneficial to venture firms’ portfolio companies, which need to process data intensively in order to build new artificial intelligence products. --With assistance from Kurt Wagner. (Updates with Musk’s comment in second paragraph.) Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P. View comments

2024-01-20 02:53:34+00:00

{"Bitcoin": [2474]}

{}

Musk’s AI Startup Secures $500 Million Toward $1 Billion Funding Goal

https://finance.yahoo.com/news/musk-ai-company-secures-500-000901525.html

Bloomberg

https://www.bloomberg.com/

(Bloomberg) -- Elon Musk’s artificial intelligence company, xAI, has secured $500 million in commitments from investors toward a $1 billion goal, according to people with knowledge of the talks. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hedge Funds Rake in Huge Profits Betting on Catastrophe Risk Gloom Over China Assets Is Spreading Beyond Battered Stocks Putin Orders Hunt for Property of Russian Empire, Soviet Union Trump Retires ‘DeSanctimonious’ Insult After DeSantis Backs Him The company is discussing a valuation of $15 billion to $20 billion, though terms could still change in the coming weeks, the people said, declining to be named because they were not authorized to speak publicly about the investment. Musk said on X, the network formerly called Twitter, that the report was “fake news.” Musk launched the startup last year as an alternative to Open AI, which he co-founded and later left over philosophical differences about how to profit from the technology. xAI’s product, a chatbot named Grok, is developed using social media posts on X, which Musk also owns. That allows Grok to access more recent data for its answers than other chatbots. Read More: Elon Musk’s Grok Represents a Serious Threat to ChatGPT The two companies’ investors will likely overlap too. Those who backed Musk’s $44 billion takeover of Twitter include Larry Ellison, Sequoia Capital, Andreessen Horowitz, Fidelity Management & Research Co. and Saudi Prince Alwaleed bin Talal. Musk said in November that equity investors in X will own 25% of xAI. In practice, that means those investors are invited to invest in xAI at least 25% the amount they invested in X, according to a person with knowledge of the arrangement. If they invested $10 billion in X, they’re invited to invest $2.5 billion or more in xAI, for example. Musk and investors are expected to finalize terms in the next couple weeks, the people said. Some parties are evaluating whether they can get computing power in addition to, or in some cases instead of, xAI equity shares, one of the people said. That would be beneficial to venture firms’ portfolio companies, which need to process data intensively in order to build new artificial intelligence products. --With assistance from Kurt Wagner. (Updates with Musk’s comment in second paragraph.) Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P. View comments

2024-01-20 03:00:00+00:00

{"Bitcoin": [4392]}

{}

Football Star Keisuke Honda Sets Up $100 Million Japan VC Fund

https://finance.yahoo.com/news/football-star-keisuke-honda-sets-030000041.html

Bloomberg

https://www.bloomberg.com/

(Bloomberg) -- Former star football player Keisuke Honda, a rare Japanese athlete-turned-angel-investor, is in talks to raise as much as ¥15 billion ($100 million) for his first fund wholly dedicated to startups in his home country. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hedge Funds Rake in Huge Profits Betting on Catastrophe Risk Gloom Over China Assets Is Spreading Beyond Battered Stocks Putin Orders Hunt for Property of Russian Empire, Soviet Union Trump Retires ‘DeSanctimonious’ Insult After DeSantis Backs Him The X&KSK Fund plans to invest in about 30 Japanese startups. It seeks to identify at least one that will eventually reach a valuation of $10 billion, Honda said in an interview. “I realized I’m getting access to pretty good deals because people know who I am from my career as a soccer player,” the 37-year-old said. In a country where celebrities shy away from speaking about their money or investments, the former AC Milan midfielder faces little competition from other sports stars. It’s a far cry from the US, where the path from star athlete to VC mogul has been trodden by the likes of Andre Iguodala, Shaquille O’Neal, LeBron James and Serena Williams. “I don’t have any rivals here. I’m in an extremely lucky place,” Honda said. Honda joins an inflow of investment in Japan’s long-neglected startup scene. Prime Minister Fumio Kishida’s five-year plan to channel more money from the Government Pension Investment Fund and elsewhere into startups lifted investment in the ecosystem to a record high in 2022. While deal values were seen shrinking last year, the number of new players is growing: 61 new venture funds launched in the country during the first half of 2023, up almost 25% from a year ago, according to data compiled by Japanese startup data firm Initial. For years, the well-traveled sportsman chased fledgling companies abroad, teaming up with celebrities like Will Smith and other venture capital investors in the US to gain an edge. The Dreamers VC, a vehicle he established together with Smith in 2018 with backing from Nomura, has invested in firms like Elon Musk’s brain implant startup Neuralink Corp. and tunneling company The Boring Co. Honda had originally planned to set up the new fund in the US, where big investors such as Sequoia and Andreessen Horowitz provide far more possible exits than Japan. Corporate VC funds dominate in the third-largest economy, and they don’t write many big checks. Financed by the likes of Toyota Motor Corp. and Sony Group Corp., many prioritize long-term strategic partnerships rather than quick returns and growth. Story continues But Tokyo’s renewed support for startups and Honda’s own track record convinced him to give Japan a chance. His KSK Angel Fund has bet on three companies that have since gone public: Makuake Inc., which he exited at valuations that went as high as ¥143 billion; e-commerce manager AnyMind Group Inc. and English-language education provider Progrit Inc. He also invested in e-scooter ride-share firm Luup KK and blockchain firm Layerx KK and recently sold his stake in worker evaluation system HRBrain Inc. “I saw the five-year plan and thought, this is it,” Honda said, lauding Kishida’s startup support initiative. “You don’t get many chances like this.” Honda plans to leverage his connections in the US to help founders raise funds and gain a foothold in the world’s largest consumer market. “It’s important that someone famous is giving all that support to Japanese entrepreneurs, spurring more activity and drawing attention to what’s happening here,” said Incubate Fund co-founder Yusuke Murata, who has known Honda for seven years and has invested with him. “We all need to grow a much higher tolerance toward risk.” Dozens of Japanese startups, ranging from software-outsourcing companies to translation gadget makers, are preparing to list on Nasdaq in a bid to win over US investors and lower their reliance on an aging and risk-averse home market. “Japanese startups have been playing a game that’s too domestic, and one of the reasons lies with VCs here,” Honda said. “We’re going to go after the few startups at the very top that are hungry for growth and turn them into global companies.” Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P. View comments

2024-01-20 03:00:00+00:00

{"Bitcoin": [3517]}

{}

The SEC Goes Back to Court

https://finance.yahoo.com/news/sec-goes-back-court-030000101.html

CoinDesk

https://www.coindesk.com

Last summer, the U.S. Securities and Exchange Commission (SEC) sued crypto exchanges Coinbase and Binance, alleging they listed and traded unregistered securities in the form of various cryptocurrencies. This week, the regulator's legal teams faced the exchanges in court as the companies argued the SEC did not make the case that those cryptos are securities. You’re reading State of Crypto, a CoinDesk newsletter looking at the intersection of cryptocurrency and government. Click here to sign up for future editions. A rose by any other name? The narrative There's no rest for the weary: While the story last week was about whether or not the SEC would approve spot bitcoin exchange-traded funds (ETFs) and the rough sequence of events that occurred before the approval was final, this week found us back in court as the regulator's Enforcement Division argued that it has a case to make about cryptos being securities. Why it matters A hefty chunk of the U.S. crypto industry may well hinge on how the SEC's cases against Coinbase, Binance/Binance.US and Kraken play out. If federal judges agree that various digital assets are securities, and the SEC has the latitude to say which are, that'll impose new registration and reporting requirements on issuers and trading platforms. If, instead, judges find consensus in saying that the SEC has overreached or that Congress should create some tailored laws, that'll give a green light to a huge chunk of the industry. Breaking it down In June 2023, the SEC sued Coinbase and Binance, alleging the companies listed digital assets like solana (SOL), filecoin (FIL) and axie infinity (AXS), among others, but that these assets were really unregistered securities. The industry – naturally – was pretty upset about these suits, despite SEC Chair Gary Gensler telegraphing for quite a while that these suits would happen. Over the course of the last few months, we've seen lawmakers, industry lobbyists and others file amicus briefs urging the courts to agree with the defendants' motions to dismiss the cases entirely. Jesse Hamilton previewed Wednesday's Coinbase hearing here , and a lot of the core ideas are functionally identical to the Binance case. The entire article is worth your attention of course, but one of his most important points may be that a dismissal at this stage is unlikely. Judge Katherine Polk Failla asked a number of tough questions during the hearing, but hasn't made a ruling just yet. An SEC attorney said the token itself was not a security , but rather the actual transactions involved during the hearing. Story continues A Friday hearing for the SEC's case against Binance was pushed to Monday due to snow in the Washington, D.C. area. A separate hearing of interest occurred before the U.S. Supreme Court, where two parties are challenging a longstanding Supreme Court precedent known as the Chevron doctrine, which gives federal regulatory agencies latitude to interpret federal laws for rulemaking purposes. This precedent may be overturned, SCOTUSblog reported after the hearing. Michael Passalacqua, an associate with Willkie Farr & Gallagher LLP, said the case is worth watching, as regulatory agencies "would be less inclined to discover new meanings within ambiguous (and often dated) statutes." "We may even see crypto legislation gain momentum again in Congress as Congress may be incentivized to pass new laws to regulate the industry (as opposed to deferring to agency interpretations)," he said. Stories you may have missed Bitcoin ETFs Stir Optimism, Ambivalence and Dread Among Crypto's Staunchest Supporters : Sandali Handagama spoke to a number of bitcoin and crypto advocates about last week's ETF approvals. Do Kwon Appeals New Montenegro High Court Decision Upholding Extradition Requests, Lawyer Says : Terraform Labs' Do Kwon has appealed the Montenegro High Court's ruling that he should be extradited. Elsewhere, Terraform Labs' attorneys successfully lobbied for the SEC's case against it to be postponed to March 25 in the hopes that he'll be extradited to the U.S., rather than South Korea. This week Wednesday 09:00 UTC (10:00 a.m. CET) The European Banking Authority (EBA) held the first of two hearings on the Markets in Crypto Assets Regulation (MiCA), looking at regulatory technical standards (RTS) and implementing technical standards (ITS). 13:00 UTC (2:00 p.m. CET) The EBA held its second MiCA hearing , which focused on guidelines for preventing illicit crypto activities. 15:00 UTC (10:00 a.m. EST) There was a hearing in SEC v. Coinbase. Friday 15:00 UTC (10:00 a.m. EST) There was going to be a hearing in SEC v. Binance, but it was delayed to Monday due to snow in Washington, D.C. Elsewhere: ( Axios ) Brady Dale and Crystal Kim, alongside several of their colleagues at Axios, created this delightful timeline chronicling the bitcoin ETF saga. ( The Air Current ) TAC created a reading list of stories that perhaps provide an explanation for how Boeing began this year by watching a deactivated emergency exit door blow off an aircraft during flight (Disclosure: I'm invested in Boeing shares). ( IRS ) The Internal Revenue Service has said that a controversial component of the 2021 bipartisan Infrastructure Investment and Jobs Act that modified Section 6050I of the U.S. code to require business to report related crypto transactions in excess of $10,000 will not take effect until the Treasury Department publishes some regulations around that. The reporting requirement is in effect for cash transactions exceeding that amount. If you’ve got thoughts or questions on what I should discuss next week or any other feedback you’d like to share, feel free to email me at [email protected] or find me on Twitter @nikhileshde . You can also join the group conversation on Telegram . See ya’ll next week! View comments

2024-01-20 05:07:08+00:00

{"Bitcoin": [2609]}

{}

S&P 500 closes at a new all-time high as fresh data drives optimism for rate cuts

https://finance.yahoo.com/news/p-500-closes-time-high-050708201.html

Business Insider

https://www.businessinsider.com/

Andrew Burton/Getty Images The S&P 500 notched an all-time record on Friday, closing above its previous high set two years ago. The Dow and Nasdaq also surged as traders took in strong economic data. The University of Michigan's consumer sentiment gauge jumped to its highest since 2021. Strong economic data fueled the S&P 500 to a record on Friday, with markets getting more optimistic about potential rate cuts from the Federal Reserve. Soon after trading began, the benchmark index was already on pace to clear its all-time closing high of 4,796.56 set two years ago. And by midday, it cleared its intraday record of 4,818.62. The Dow Jones Industrial Average had already topped its prior high last month and set a fresh record on Friday. Meanwhile, the Nasdaq Composite outpaced the other indexes as chipmakers led the tech sector higher, but it remains more than 4% below its highs. The stock market rally came as the University of Michigan's consumer sentiment survey showed Americans are feeling better about the economy and see prices cooling. Inflation expectations for the year ahead fell to 2.9%, the lowest since December 2020, giving the Fed more breathing room to loosen monetary policy this year. "The powerful surge shows Americans are feeling the effects of lower inflation," said Robert Frick, an economist with Navy Federal Credit Union. "That's transmitted directly through prices at the pump, which have been falling since September, and less directly given wage increases have risen above the rate of inflation. The strong jobs market also heavily influences American's view of the economy in general." Here's where US indexes stood as the market closed at 4:00 p.m. on Friday: S&P 500 : 4,839.81, up 1.23% Dow Jones Industrial Average : 37,863.80, up 1.05% (395.19 points) Nasdaq Composite : 15,310.97, up 1.70% Here's what else is going on: AI's copyright problem could be solved by blockchain , Grayscale's CEO said. The CEO of the National Association of Home Builders said the housing market will take off in 2024 as construction and demand come back. The Fed has to start cutting rates to avoid tipping the economy over, BofA chief Brian Moynihan said . Economist Paul Krugman said China is entering an era of stagnation and disappointment that may not be resolved like Japan's. In commodities, bonds, and crypto: Oil prices dropped, with West Texas Intermediate down 0.28% to $73.87 a barrel. Brent crude , the international benchmark, moved lower 0.23% to $78.88 a barrel. Gold edged higher 0.46% to $2,031.00 per ounce. The 10-year yield rose 1 basis point to hover at 4.149%. Bitcoin climbed 2.35% to $41,876. Read the original article on Business Insider View comments

2024-01-20 06:00:00+00:00

{"Bitcoin": [7227]}

{}

Bank of England Faces Growing Calls to Drop Language on Hikes

https://finance.yahoo.com/news/bank-england-faces-growing-calls-060000913.html

Bloomberg

https://www.bloomberg.com/

(Bloomberg) -- The Bank of England is being urged to end its bias toward further interest-rate hikes or risk undermining its own credibility, in what’s likely to be a tricky communication challenge for Governor Andrew Bailey. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hedge Funds Rake in Huge Profits Betting on Catastrophe Risk Gloom Over China Assets Is Spreading Beyond Battered Stocks Putin Orders Hunt for Property of Russian Empire, Soviet Union Trump Retires ‘DeSanctimonious’ Insult After DeSantis Backs Him Former members of the central bank’s Monetary Policy Committee and other senior UK economists said the BOE’s current hawkish stance is out of step with both the economic outlook and peers in the US and the euro zone. New guidance, they said, should come with the next rate decision on Feb. 1. The longer the BOE waits, the more it risks clashing with a general election Prime Minister Rishi Sunak is expected to call later in the year. The BOE’s current guidance hasn’t changed since August, when the latest inflation reading was 7.9% and the MPC raised rates for a final time to 5.25%. As recently as last month, three of the nine MPC members voted to increase borrowing costs, and Bailey said there was “some way to go” in the fight against inflation. Since then, output, wages and job creation have all weakened. Inflation has fallen to 4% and is on track to hit the 2% target by spring, a year earlier than the BOE’s most recent forecast. Both the US Federal Reserve and European Central Bank have signaled rate cuts are on the agenda. Investors have barreled ahead of the BOE, pricing in sharp rate cuts this year and posing a new threat to bank’s credibility. Public confidence in the institution is already at a record low. The BOE “is still very hawkish,” Jari Stehn, economist at Goldman Sachs, said at a conference on Jan. 15. As a result, switching the message will “take a little bit longer” for the BOE than the Fed or ECB, he added. Story continues Bailey faces three communication challenges: Pivoting from the current guidance that emphasizes the potential for more rate hikes. Preparing investors for cuts early enough to avoid the risk of clashing with an election. Producing forecasts based on an market path the MPC finds too optimistic about cuts. Markets are betting on a sharp reduction in borrowing costs this year, even after the slight shift in sentiment following this week’s surprisingly strong inflation reading in the UK. They’ve priced in four quarter-point cuts in the benchmark rate to 4.25% this year, starting in June. Just three months ago, markets saw rates remaining above 5% throughout 2024. Guidance How far out of step the BOE has become with its peers was driven home last week when ECB President Christine Lagarde told Bloomberg TV that a rate cut for the euro area was likely by summer. Meanwhile, Fed Chairman Jerome Powell has said rates should be reduced before inflation drops to 2%, which Goldman Sachs chief economist Jan Hatzius said was consistent with “cuts at the March meeting.” Yet the BOE said in December that policy was “likely to need to be restrictive for an extended period of time” and that “further tightening” might be necessary. That month, three MPC members voted to raise rates a quarter point, and none backed a rate cut. Bailey will need to avoid making its former guidance look like nonsense when the bank eventually pivots. George Buckley, chief European economist at Nomura, said the MPC’s current view should be toned down. “It would make a lot of sense to change the guidance from ‘further tightening,’” he said. Michael Saunders, a former BOE rate-setter who is now senior policy adviser at Oxford Economics, said the bank could use its forecast to soften the guidance by showing that “unchanged rates would leave inflation well below target two and three years out, while the market curve would be about right.” Another way the bank could signal a shift would be for individual MPC members to cast more dovish votes. The February vote could split three ways, Buckley said. In that scenario. one or two MPC members vote for a hike, one for a cut and six or seven for hold. Swati Dhingra, an external member of the committee, is most likely to switch from no change to a reduction. The last time she voted to raise rates was to 2.75% in November 2022, around the time inflation peaked at a four-decade high of 11.1%. Jonathan Haskel, one of the three hawks, hinted that he may move to a hold. Writing on social media site X in December after a steep fall in inflation, he said the drop contained “news” and was more “broadly based” than expected. Politics Politics may complicate BOE policy on two fronts. The Chancellor will deliver a budget in March, and any broad-based tax cuts announced then could add to inflation, delaying rate cuts. Also, an early election might paralyze decision-making, with policy makers wanting to move carefully to avoid their decisions looking political. While a general election is widely expected to be held around November, an earlier vote would run a greater risk of clashing with the BOE’s first cut. In the six elections since the government established the bank’s independence in 1997, it has moved policy only once during a campaign: a quarter-point cut in 2001, two days after the election was called. Saunders said MPC members “might be reluctant to make the first cut during a campaign,” but would they be less concerned if the loosening process had begun. BOE Deputy Governor Ben Broadbent has indicated that uncertainty would leave the bank in limbo, a comment that would apply to potential change in government. “The reaction of policy is likely to be somewhat more delayed,” he said in December. Conversely, the government’s stated ambition to cut taxes in the March budget may tempt the BOE to wait before cutting rates, said James Smith, market economist at ING Groep NV. The Forecast The bank’s Feb. 1 decision will include new forecasts on growth that will be based on market expectations for rates. That will likely mean predictions for inflation, unemployment and growth that are more optimistic than the bank’s internal assessments. The tension between the market path and the bank’s own analysis is part of a wider review of BOE forecasting being conducted by Ben Bernanke. The former Fed chair is expected to report on his finding in March. The BOE ran into a similar communication problem in November 2022, when then-Prime Minister Liz Truss’s mini-budget triggered a gilt market panic that forced the BOE to use a distorted rate path. The result was a forecast for the longest recession since the 1930s – a prediction the BOE swiftly disowned. Martin Weale, a former rate-setter now professor of economics at King’s College London, said the convention may commit MPC members to a “market path they think is extremely unlikely” next month. “So we are in danger of a forecast that shows higher inflation, faster growth and lower unemployment than they believe,” Weale said. --With assistance from Andrew Atkinson. Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P.

2024-01-20 08:30:00+00:00

{"Bitcoin": [3294]}

{}

The Oil Market Is Making Plans for Red Sea Chaos to Last Weeks

https://finance.yahoo.com/news/oil-market-making-plans-red-083000477.html

Bloomberg

https://www.bloomberg.com/

(Bloomberg) -- The oil market is bracing for a weeks-long disruption to shipping in the southern Red Sea, where Houthi militants have for months been attacking merchant vessels in response to Israel’s war in Gaza. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hedge Funds Rake in Huge Profits Betting on Catastrophe Risk Gloom Over China Assets Is Spreading Beyond Battered Stocks Putin Orders Hunt for Property of Russian Empire, Soviet Union Trump Retires ‘DeSanctimonious’ Insult After DeSantis Backs Him Charters of tankers to haul crude and fuels — which for some vessels are arranged up to a month in advance — reveal growing numbers of the vessels are being hired for routes that will avoid the danger zone, according to shipowners, brokers and traders. Airstrikes in Yemen on Jan. 12 by the US and UK have heightened a sense of chaos for ships in the area, especially after western navies subsequently warned vessels to stay away. With the Houthis pledging to strike back against both nations’ commercial fleets, numerous owners elected to stay away from a route that normally handles about 12% of global seaborne trade. “More and more owners are avoiding the area,” said Alexander Saverys, Chief Executive Officer of Euronav NV, whose own fleet can transport more than 50 million barrels of oil. “What looked like something that could be solved within weeks, now could indeed have consequences for many months.” Tankers to move fuel cargoes are instead being hired to sail to Asia instead of Europe, sparking a surge in earnings. At the same time, several Iraqi crude shipments have been booked on tankers that will take a thousands-of-miles detour around Africa. Earnings Rising Danish tanker owner Torm said in a statement that there’s been an increase in voyages to Asia for transporting refined fuels. That has helped pushed earnings on the so-called relatively large tankers that ship oil products from $35,000 a day to $60,000 a day over the past week. READ: Iraq’s Oil Faces Delays as Tankers Steer Away From Red Sea Chaos In addition, there’s also been a significant volume of Iraqi crude cargoes booked to sail from the Persian Gulf to Europe around Africa, according to people involved in the market. Some are jointly loading smaller cargoes onto bigger ships to make the journey more cost-effective, one of the people said. Although crude flows from the Persian Gulf to Europe are less common than ones to Asia, the shipments nevertheless reveal owners’ attitudes to transiting the Red Sea. More Detours Container shipping, where many Houthi attacks had initially been concentrated, had already largely diverted before the US and UK airstrikes. Increasing numbers of tankers and bulk commodity carriers followed suit. Story continues Some crude tanker rates have been climbing too in recent weeks too. Aframax ships that haul about 700,000 barrels more than doubled to hit almost $80,000 a day since the middle of December. Suezmax ships — so-called for their ability to sail full through the canal that links Asia and Europe — are up about 50% to almost $70,000 a day. --With assistance from Anthony Di Paola. Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P. View comments

2024-01-20 09:30:00+00:00

{"Bitcoin": [3241, 3422]}

{}

Hong Kong eyes 'more flexible' path in regulating spot cryptocurrency ETFs as US races ahead with approvals

https://finance.yahoo.com/news/hong-kong-eyes-more-flexible-093000768.html

South China Morning Post

https://www.scmp.com/

Hong Kong is set to develop a more flexible regime for cryptocurrency exchange-traded funds (ETFs), even though the US leads in both approval speed and market size, experts said. A key difference between Hong Kong's proposed rules for spot cryptocurrency ETFs and products approved in the US is that Hong Kong will allow both cash and in-kind subscriptions. Under such rules, participating dealers can directly use bitcoin to subscribe to or redeem the ETF's shares, whereas in the US, such subscriptions and redemptions are only allowed with cash. The different approach reflects a divergence of virtual asset regulatory frameworks, where the US Securities and Exchange Commission (SEC) "appears reluctant to allow licensed dealers to touch bitcoin" when subscribing for and redeeming ETF shares because spot bitcoin trades are unregulated in the US, according to Andrew Fei, a partner at King & Wood Mallesons in Hong Kong. Do you have questions about the biggest topics and trends from around the world? Get the answers with SCMP Knowledge , our new platform of curated content with explainers, FAQs, analyses and infographics brought to you by our award-winning team. Regulators in Hong Kong last month said that they will allow retail access to spot virtual asset ETFs, and are willing to accept applications from funds hoping to offer such products to the public. After nine spot bitcoin ETFs in the US, offered by fund giants including BlackRock and Fidelity, attracted nearly US$2 billion in their first three days of trading, virtual asset industry participants in Hong Kong have urged the Hong Kong government to speed up the approval of the city's own offerings. "I hope that Hong Kong, amid the rapid development and intense competition in the virtual asset sector, can seize a spot globally as quickly as possible," Legislative Council member Johnny Ng Kit-chong wrote in a post on X, formerly Twitter, last week. "[Hong Kong should] strive to be the first to implement relevant policies and products particularly in Asia." In a statement last week, SEC chair Gary Gensler said that despite its approval of spot bitcoin ETFs, the regulator "did not approve or endorse bitcoin", which is "primarily a speculative, volatile asset that's also used for illicit activity including ransomware, money laundering, sanction evasion, and terrorist financing". "In the US, the spot bitcoin market is largely unregulated and the SEC remains somewhat sceptical about spot bitcoin transactions," Fei said. Story continues However, because spot virtual asset transactions on licensed virtual asset trading platforms are regulated in Hong Kong, the city's Securities and Futures Commission (SFC) "appears to be more comfortable with virtual asset ETFs", he added. The SFC and the Hong Kong Monetary Authority's joint plan to authorise spot cryptocurrency ETFs has given the industry optimism about the city's prospects of becoming a cryptocurrency hub. "Hong Kong's regulatory environment, known for adaptability, positions it well in navigating the evolving world of digital assets," said Dmitry Lapidus, senior liquid analyst at US venture capital firm CoinFund. The Nasdaq board in Times Square, New York, shows video of the opening bell as Bitcoin Spot ETF's are launched on the Nasdaq Exchange on January 11. Photo: Getty Images via AFP alt=The Nasdaq board in Times Square, New York, shows video of the opening bell as Bitcoin Spot ETF's are launched on the Nasdaq Exchange on January 11. Photo: Getty Images via AFP> "Hong Kong is one of the few major jurisdictions in the world that has a clear vision on regulating virtual assets now, and I truly believe this move will continue to serve Hong Kong as a global financial hub in the coming days," said Kennix Chan, executive director at Victory Securities Company Limited. But the city will face strong competition from jurisdictions like the US, experts noted. The American cryptocurrency market is poised to be much larger for US and world investors, especially when the ones offering the spot cryptocurrency ETFs are finance heavyweights such as Blackrock, Fidelity, Franklin, and Invesco, said Jack Poon, professor of practice for fintech and entrepreneurship at the Hong Kong Polytechnic University. "They have a huge existing customer base and a brand that retail investors feel comfortable with," Poon said, adding that they are also offering low fees that issuers in Hong Kong may not be able to absorb in the long term. This article originally appeared in the South China Morning Post (SCMP) , the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP's Facebook and Twitter pages. Copyright © 2024 South China Morning Post Publishers Ltd. All rights reserved. Copyright (c) 2024. South China Morning Post Publishers Ltd. All rights reserved. View comments

2024-01-20 09:50:00+00:00

{"Bitcoin": [41, 80, 180, 502, 594, 815, 941, 1008, 1322, 1488, 1591, 1841, 1949, 2089, 2176, 2246, 2378, 2477, 2774, 2876, 3086, 3171, 3578, 3833, 3985, 4019, 4297, 4344, 4498, 4579, 4633, 4676, 4832, 5312, 5369, 5467], "BTC": [58]}

{"Bitcoin": [47]}

Here Come the Million-Dollar Price Targets for Bitcoin. Should We Believe Any of Them?

https://finance.yahoo.com/news/come-million-dollar-price-targets-095000371.html

Motley Fool

http://www.fool.com/

Due to all the bullish enthusiasm around Bitcoin (CRYPTO: BTC) and the new spot Bitcoin ETFs, it's unsurprising that we're starting to see some very aggressive price estimates for Bitcoin . The one that is getting all the attention, of course, is the new $1.5 million forecast from Cathie Wood and Ark Invest. While $1.5 million might sound like an impossibly high pie-in-the-sky number for a single cryptocurrency token, you'd be surprised at how easy it is to find million-dollar price estimates for Bitcoin. In fact, you can find $10 million, $100 million, and even $1 billion forecasts for Bitcoin. So, just how realistic are any of these price estimates? Past results are no guarantee of future performance The most common approach for coming up with a $1 million price target, quite simply, is to look at how Bitcoin has behaved in the past and then extrapolate how it might behave in the future. Once you examine the price history of Bitcoin, you'll quickly see how easy this is. For example, it took Bitcoin approximately six months to 10x in value from $1 to $10, another six months to 10x from $10 to $100, and another six months to 10x from $100 to $1,000. Image source: Getty Images. So, you can see where I'm going with this. If you rely entirely on past performance, you could fall into the trap of assuming Bitcoin can routinely increase in price by 10x every six months or so. At a current price of $50,000, that gets you to a price of $500,000 by mid-2024. If you assume Bitcoin can double in price over the following six months, then voilà! You've arrived at $1 million in Bitcoin by the end of the year. Congratulations! There are different variants of this approach, of course. One of them involves considering the halving, a blockchain-specific event that occurs only once every four years. As a result of this halving, Bitcoin tends to skyrocket in value. If you examine the history of three previous halving events and assume Bitcoin will perform similarly after the next halving event (scheduled for April), you can come up with some dizzying price assumptions for Bitcoin. Market sizing comparisons Another approach to creating a $1 million price for Bitcoin involves market sizing comparisons. By comparing the value of Bitcoin to the value of another well-known financial asset, you can come up with some pretty impressive numbers. For example, since Bitcoin is often referred to as "digital gold," it could make sense to compare the market value of Bitcoin (currently around $1 trillion) to the value of all the physical gold in the world (which is about $13.7 trillion). If you buy into the argument that "digital gold" will eventually crowd out "physical gold" as a store of value, then you've found a very clever way to show that the value of Bitcoin could increase by a factor of anywhere from 10x to 15x. That gets you to a $500,000 price for Bitcoin pretty quickly. Story continues But do the numbers make sense? My concern is that, at some point, the numbers stop making sense. For example, given the current circulating coin supply of 20 million for Bitcoin, a target price of $1 million assumes a market valuation of $20 trillion for Bitcoin. But think about that number for a second. That $20 trillion is nearly 7x the market cap of the world's most valuable publicly traded company ( Microsoft or Apple , take your pick). It's approximately equal to the annual gross domestic product (GDP) of the United States. And it's roughly half the combined value of the S&P 500, now estimated at $40 trillion. In short, a $20 trillion valuation for Bitcoin is possible only if there is a huge shock of some kind to the entire U.S. economy. Unfortunately, that probably means a market crash of some kind. In such a scenario, money would presumably flow out of dollar-denominated financial assets and into Bitcoin very rapidly. Cathie Wood's $1.5 million price forecast With all credit to Cathie Wood, I think she has the best $1 million valuation model for Bitcoin. It's based on looking at Bitcoin's use cases, extrapolating future growth prospects, and then aggregating the values of these different use cases. And the math behind the model is completely transparent and publicly available, so you can check the numbers yourself. That said, I have a hard time seeing Bitcoin hitting $1 million anytime soon. Sure, Bitcoin might be trading around $1 million sometime within the next decade. But just be careful about listening to anyone who tells you that the price of Bitcoin is skyrocketing to $1 million in 2024 simply because Wall Street now has Bitcoin ETFs to sell you. Should you invest $1,000 in Bitcoin right now? Before you buy stock in Bitcoin, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Bitcoin wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*. See the 10 stocks *Stock Advisor returns as of January 8, 2024 Dominic Basulto has positions in Bitcoin. The Motley Fool has positions in and recommends Bitcoin. The Motley Fool has a disclosure policy . Here Come the Million-Dollar Price Targets for Bitcoin. Should We Believe Any of Them? was originally published by The Motley Fool View comments

2024-01-20 10:00:00+00:00

{"Bitcoin": [4741]}

{}

Charting the Global Economy: Inflation Slows Further in Japan

https://finance.yahoo.com/news/charting-global-economy-inflation-slows-100000162.html

Bloomberg

https://www.bloomberg.com/

(Bloomberg) -- Inflation in Japan slowed for a second month, giving central bankers reason to wait before ending their negative rate policy. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hedge Funds Rake in Huge Profits Betting on Catastrophe Risk Gloom Over China Assets Is Spreading Beyond Battered Stocks Putin Orders Hunt for Property of Russian Empire, Soviet Union Trump Retires ‘DeSanctimonious’ Insult After DeSantis Backs Him While the data support the view the Bank of Japan officials won’t rush into the first rate hike since 2007 when they meet next week, services prices remained elevated and suggest that an eventual normalizing of policy remains on the table. Inflation expectations declined in Europe, while retail sales and consumer sentiment in the US increased. Here are some of the charts that appeared on Bloomberg this week on the latest developments in the global economy: World Bank Indonesia left its benchmark interest rate unchanged, and signaled caution in easing monetary policy as it awaits more convincing signs of rupiah stability and manageable inflation. Angola also held while Kazakhstan and Paraguay continued their rate-cutting campaigns. Asia Japan’s latest inflation report gives the BOJ another reason to wait beyond next week’s meeting before ending the negative rate policy, while also adding to the case for a hike in coming months. For a second month, services prices rose at the fastest pace in three decades when excluding periods distorted by sales tax hikes. China’s deflation was driven by falling prices in its manufacturing sector last year, adding to the risk of trade tensions with the US and Europe amid a major ramp-up in Chinese industrial capacity. Japan welcomed 25 million tourists in 2023, the largest number since 2019, as a weak yen helped attract post-pandemic visitors in a boost to the nation’s fragile economy. The return of large numbers of visitors to Japan is a positive development for an economy that shrank at the sharpest pace since the height of the pandemic in the summer. Story continues China’s population declined at a faster pace in 2023 as births fell to a record low, accelerating a demographic shift that poses long-term challenges to a government already contending with deflation pressures and a property crisis. The decline in births could pose more challenges to the economy, which hit an official growth target for last year but remains dragged by factors including weak domestic demand and confidence. Europe Consumer expectations for euro-zone inflation fell in November to the lowest in more than 1 1/2 years — supporting markets’ view that interest-rate cuts by the European Central Bank could soon be in the offing. Despite an uptick in December, inflation is in retreat across Europe, with its rapid slowdown prompting investors to speculate on rate reductions as soon as the spring. UK retail sales fell at the fastest pace since Covid-19 lockdowns three years ago, adding to the risk the economy slid into a shallow recession to end 2023. US US retail sales rose in December by the most in three months, capping a solid holiday season that suggests consumer resilience. However, economists cautioned the momentum may fade in 2024 as consumers contend with lingering inflation, elevated borrowing costs and waning savings. Wage growth is on track to slow to around its pre-pandemic pace over the next few months, according to data from job-search website Indeed, relieving one source of inflationary pressure that’s been a concern for the Federal Reserve. Consumer sentiment soared in early January to the highest since 2021, far exceeding expectations, as short-term inflation expectations slipped to a three-year low. More than half of households expect their incomes to grow at least as fast as inflation, the highest share since mid-2021. Emerging Markets El Nino, the weather phenomenon with a history of disrupting agricultural powerhouses like Brazil, has returned with a vengeance in the South American summer, unleashing torrential rains in parts of the country and leaving others uncommonly dry. Prices of staples like rice and potatoes are soaring as a result, challenging both the central bank’s plans to continue the interest rate cuts the president demanded and his campaign promises to deliver cheaper fare to everyday Brazilians. --With assistance from Kelly Li, Barbara Nascimento, Yoshiaki Nohara, Zoe Schneeweiss, Dayanne Sousa, Alex Tanzi, Alexander Weber, Josh Xiao, Irina Anghel, Maria Eloisa Capurro, Toru Fujioka, Mia Glass, Tom Hancock, John Liu and Jing Li. Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P.

2024-01-20 11:35:01+00:00

{"Bitcoin": [204, 465, 955, 2373]}

{}

From SBF to ETF: These 4 charts show crypto's comeback since FTX's shocking collapse

https://finance.yahoo.com/news/sbf-etf-4-charts-show-113501481.html

Business Insider

https://www.businessinsider.com/

FTX founder Sam Bankman-Fried leaves following his arraignment in New York City on December 22, 2022. Ed Jones/AFP/Getty Images Cryptocurrencies have staged a fightback since FTX collapsed 14 months ago. Bitcoin has soared 150%, while other tokens like ether and solana have also racked up huge gains. The rally has led to digital assets' total market cap doubling to over $1.6 trillion. When FTX imploded in November 2022, it felt like crypto had hit rock bottom. Bitcoin was mired in a long-term slump and trading 75% below its all-time high, and financial watchdogs were preparing to start cracking down on digital assets to make sure that nothing like the blow-up of Sam Bankman-Fried's business empire could ever happen again. Fourteen months later, cryptocurrencies have returned to form in a stunning comeback – capped last week by the Securities and Exchange Commission's approval of 11 spot bitcoin ETFs , after months of speculation. Read more: Bitcoin ETFs just won the SEC's approval. Here's everything you need to know about the watchdog's groundbreaking decision. Excitement in the run-up to the SEC's decision, better-than-expected US growth, and investors' belief that the Federal Reserve will soon start cutting interest rates have all powered the large-cap token higher. It's currently priced at just over $41,000, 150% higher than the level it traded at on November 11, 2022 – the day FTX filed for bankruptcy. Crypto bulls believe bitcoin's stellar run could last a while longer, thanks to the SEC. Standard Chartered and Fundstrat perma-bull Tom Lee are among the names who believe the financial watchdog's approval of ETFs will help it to surge past $100,000 for the first time, while other analysts called its decision a " watershed moment" and a "'game changer' for crypto ." The large-cap token isn't the only cryptocurrency that's rebounded in the aftermath of the FTX fiasco. Ether , the native token of the ethereum blockchain, has climbed 94% to nearly $2,500 as BlackRock tries to launch a separate spot ETF tracking its price, while altcoins solana and avalanche have each racked up triple-digit gains. Story continues That cross-token surge has led to the overall valuation of the digital-currency sector doubling since November 2022, with the industry's total market capitalization rising from $740 billion to $1.6 trillion as of Thursday. Bitcoin's market cap alone has jumped from $400 billion to $840 billion. Total digital-currency market capitalization has rebounded from the 'crypto-winter' lows. TradingView It should be no surprise that the combination of that stellar comeback and the SEC's decision to open crypto up to institutional investors for the first time has led to more online buzz about bitcoin and other tokens. The number of people searching for bitcoin has jumped by around 50% this month, according to data from The Block and Google Trends – a return to form after interest in the once-volatile asset died down in the wake of FTX's failure. Just over a year after Bankman-Fried's spectacular fall from grace , crypto has bounced back – in a rebound that's got both the traditional finance world and retail investors chattering about digital assets again. Read the original article on Business Insider

2024-01-20 12:25:00+00:00

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Could MicroStrategy Stock Help You Become a Millionaire?

https://finance.yahoo.com/news/could-microstrategy-stock-help-become-122500425.html

Motley Fool

http://www.fool.com/

MicroStrategy (NASDAQ: MSTR) , a developer of data mining and analytics software, made a lot of investors millionaires shortly after its public debut on June 11, 1998. It went public at a split-adjusted price of $60 per share and eventually skyrocketed to an all-time high of $3,130 during the peak of the dot-com bubble on March 10, 2000. Today, MicroStrategy's stock only trades at about $480. A $20,000 investment in its initial public offering (IPO) would have blossomed to $1.04 million before shrinking back to $160,000. That pullback is disappointing, but that eight-bagger gain still outperformed the S&P 500 -- which would have turned the same investment to $140,000 after including reinvested dividends. Image source: Getty Images. However, MicroStrategy probably wouldn't have outperformed the market if it hadn't started hoarding Bitcoin (CRYPTO: BTC) over the past 3 1/2 years. That abrupt shift drew a lot of attention away from its slower-growth software business, and Bitcoin's rebound over the past 12 months caused its stock to more than double. Can MicroStrategy's stock continue rallying and turn a new $20,000 investment into over $1 million again over the next two decades? Or are investors better off buying Bitcoin directly or investing in higher-growth tech companies, instead? MicroStrategy is still a slow-growth company MicroStrategy initially gained a lot of attention when big companies like McDonald's started using its data-crunching software. But over the past two decades, it faced tougher competition from cloud-based analytics companies like Salesforce , integrated analytics tools in public cloud platforms like Amazon Web Services (AWS) and Microsoft Azure, and smaller mobile business intelligence companies like Domo . MicroStrategy tried to keep up by divesting some of its older businesses and expanding into the mobile and cloud markets. But from 2010 to 2020, its revenue rose at a sluggish compound annual growth rate (CAGR) of 0.6%. Story continues Its revenue rose 6% in 2021 as it lapped its slowdown during the pandemic but dipped 2% in 2022. Analysts anticipate 1% revenue growth in 2023 as the company's rising subscription revenue gradually offset declining license and support revenue. Its transition to a Bitcoin hoarder brought back the bulls For many years, MicroStrategy seemed destined to become an also-ran in the saturated enterprise software space. But in August 2020, its co-founder and then-CEO Michael Saylor directed it to start hoarding Bitcoin. As a result, its Bitcoin holdings swelled from $250 million to $4.7 billion by the end of the third quarter of 2023. That's nearly half of MicroStrategy's current enterprise value of $9.7 billion and dwarfs its $45 million in cash and equivalents. That transition initially spooked investors for three reasons. First, Bitcoin was highly volatile. The token's price plunged from its record high of nearly $65,000 in late 2021 to $16,000 by the end of 2022 -- but bounced back to about $43,000 over the past year. Second, the company's massive impairment costs from those purchases caused it to turn unprofitable on a generally accepted accounting principles ( GAAP ) basis over the past three years. That seemed like a dangerous strategy for a company that was already shouldering $2.2 billion in long-term debt and a debt-to-equity ratio of 3. Lastly, MicroStrategy's Bitcoin strategy seemed like a desperate 11th-hour bid that didn't meaningfully strengthen its core business. Despite all of those flaws, Bitcoin's rising price over the past year still brought a stampede of bulls back to MicroStrategy's stock. But its enterprise value is getting a bit overheated at 19 times this year's sales. Can MicroStrategy produce millionaire-making gains? Even if MicroStrategy can maintain those high valuations, it would need to grow its revenue at a CAGR of 22% over the next 20 years to turn a $20,000 investment into $1 million. It probably can't achieve that with its core software business alone. But if Bitcoin's price skyrockets over the next 20 years, the company's Bitcoin holdings could drive its stock price a lot higher, even if it generates anemic revenue growth. Coin Price Forecast estimates Bitcoin's price might reach $240,000 by the end of 2035, while Ark Invest's Cathie Wood claims its price will eventually hit $1.5 million by 2030. The investment giant Fidelity is even more bullish: It expects Bitcoin's price to hit $100 million by 2035 and $1 billion by 2038. We should be skeptical of those bullish forecasts, but multibagger gains for Bitcoin over the next 20 years could still turn MicroStrategy into a millionaire-maker stock. The company could also liquidate some of its Bitcoin to strengthen its core business with bold investments and reduce its debt. That said, I think it's smarter for investors to directly buy Bitcoin or one of the new Bitcoin ETFs instead of investing in MicroStrategy's wobbly, capital-intensive, and highly leveraged business. Simply put, MicroStrategy's stock might eventually make you a millionaire -- but there are clearer and simpler ways to achieve that goal. Should you invest $1,000 in MicroStrategy right now? Before you buy stock in MicroStrategy, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and MicroStrategy wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*. See the 10 stocks *Stock Advisor returns as of January 16, 2024 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Leo Sun has positions in Amazon. The Motley Fool has positions in and recommends Amazon, Bitcoin, Microsoft, and Salesforce. The Motley Fool has a disclosure policy . Could MicroStrategy Stock Help You Become a Millionaire? was originally published by The Motley Fool

2024-01-20 12:40:00+00:00

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1 Surprising Crypto Stock to Buy Before It Soars 100%

https://finance.yahoo.com/news/1-surprising-crypto-stock-buy-124000578.html

Motley Fool

http://www.fool.com/

Right now, crypto investors are laser focused on Bitcoin (CRYPTO: BTC) . That's fair enough. The recent approval of the new spot Bitcoin ETFs has made Bitcoin even more popular than it already was. But if you expand your focus, there are several stocks that stand to benefit from any future gains in Bitcoin. The one that's on my radar right now is MicroStrategy (NASDAQ: MSTR) . That might sound strange, given that MicroStrategy is an enterprise software company. But if you look under the hood, you'll see why this stock could skyrocket 100% or more this year. MicroStrategy as a Bitcoin proxy stock The first thing you need to know about MicroStrategy is that it holds a lot of Bitcoin on its balance sheet. And I mean a lot. After a recent buying spree at the end of 2023, MicroStrategy now holds 189,150 Bitcoins. That ranks first among all publicly traded companies, and it's not even close. At Bitcoin's current price of $42,500, those holdings are valued at approximately $8 billion. Image source: Getty Images. If you compare the company's overall market cap ($6.5 billion) to the value of its Bitcoin, then it becomes immediately obvious just how leveraged MicroStrategy is to the price of Bitcoin. The Bitcoin holdings are worth more than the company itself! In fact, some investors refer to MicroStrategy as a Bitcoin proxy stock because, for the past year, the stock has essentially been just a way to get access to Bitcoin without actually buying Bitcoin. As a result, over the past 12 months, MicroStrategy is up more than 100%. Bitcoin proxy stock or Bitcoin ETF? But there's just one problem. The approval of the new spot Bitcoin exchange-traded funds (ETFs) in January 2024 has completely shifted the narrative. The very same investors who once used MicroStrategy as a proxy stock can now invest in Bitcoin ETFs instead. Theoretically, these Bitcoin ETFs will do a much better job of tracking the price of Bitcoin. And, thus, they could eventually make MicroStrategy less appealing to investors. As evidence of this, the price of MicroStrategy fell by 20% in just the first 48 hours after Bitcoin ETF approval. For the year, MicroStrategy is down 30%. On top of all that, former MicroStrategy CEO (and current executive chairman) Michael Saylor says that he is planning to sell off 315,000 shares in the company worth over $200 million between now and April. So that should put downward pressure on the price of MicroStrategy as well. Will Bitcoin go to $100,000? But there might be two very good reasons to buy the dip on MicroStrategy. For one, investors appear to be ignoring completely the fact that MicroStrategy is actually an enterprise software company. As noted above, they are ascribing zero value to the company's core business operations (which includes artificial intelligence- and business intelligence-related software solutions), and instead simply valuing MicroStrategy as a Bitcoin proxy. So that's one additional source of value for MicroStrategy. Story continues Moreover, there's the future price of Bitcoin to consider. The Bitcoin ETF is just the first catalyst for Bitcoin this year. The second major catalyst -- the upcoming halving event -- is arriving in April. In three previous halving cycles, the price of Bitcoin has exploded, so investors are expecting the same to happen this year as well. That partially explains why Saylor plans to sell off all those company shares by April: He needs the money to invest in more Bitcoin before it goes completely parabolic. Admittedly, this is a very risky strategy, but it's so bold it just might work. According to a growing number of influential voices on Wall Street, the price of Bitcoin could top $100,000 by the end of the year . Thus, by extension, the value of all that Bitcoin on the balance sheet of MicroStrategy should also double. And that means the market cap of MicroStrategy should also double. Before you buy MicroStrategy Just keep in mind that investors have a number of different ways to get access to Bitcoin. They can buy it directly, via a cryptocurrency exchange such as Coinbase Global . They can buy it indirectly via a futures-based Bitcoin ETF. They can buy it indirectly via a spot Bitcoin ETF. And, finally, they can buy it indirectly via an investment in a Bitcoin proxy stock such as MicroStrategy. Your risk-reward profile will likely determine which strategy makes the most sense for your portfolio. For example, investment giant Vanguard Group has said that it would not be offering the new Bitcoin ETFs to its customers. Instead, (drum roll, please) it will be loading up on MicroStrategy. For me, that's a pretty convincing argument that Bitcoin proxy stocks such as MicroStrategy will continue to perform well in 2024. You get indirect access to Bitcoin, plus the additional value from the underlying operations of the company. There is likely to be quite a bit of volatility along the way, so just be sure to buckle up if you plan on adding to your MicroStrategy position this year. Should you invest $1,000 in MicroStrategy right now? Before you buy stock in MicroStrategy, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and MicroStrategy wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*. See the 10 stocks *Stock Advisor returns as of January 8, 2024 Dominic Basulto has positions in Bitcoin. The Motley Fool has positions in and recommends Bitcoin and Coinbase Global. The Motley Fool has a disclosure policy . 1 Surprising Crypto Stock to Buy Before It Soars 100% was originally published by The Motley Fool View comments

2024-01-20 13:00:00+00:00

{"Bitcoin": [4829]}

{}

Bank Stocks Are Laggards as Questions on Fed Complicate Outlook

https://finance.yahoo.com/news/bank-stocks-laggards-questions-fed-130000190.html

Bloomberg

https://www.bloomberg.com/

(Bloomberg) -- When earnings season kicked off for Corporate America this month, all eyes were on whether the biggest US banks could deliver bullish enough outlooks to extend last quarter’s rally in their shares. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hedge Funds Rake in Huge Profits Betting on Catastrophe Risk Gloom Over China Assets Is Spreading Beyond Battered Stocks Trump Retires ‘DeSanctimonious’ Insult After DeSantis Backs Him Putin Orders Hunt for Property of Russian Empire, Soviet Union They didn’t, and the KBW Bank Index slumped to its worst losing streak since August. The gauge is trailing the broader stock market in January, even after surging Friday. The lenders have given investors a bevy of mixed signals to digest. Many issued guidance for net interest income — a crucial source of revenue — to be lower this year amid questions around the pace of expected interest-rate cuts and the health of the economy. Credit quality is also showing signs of deteriorating. However, bankers expect investment banking will finally rebound. Bank executives were tasked with boiling all that down into guideposts for the year ahead, no easy feat given how central the Federal Reserve’s policy decisions in the coming months will be to the companies’ performance in virtually all corners of their business. “They’re trying to kind of straddle between the Fed cutting multiple times as the forward yield curve is suggesting, and perhaps a more rational one or two cuts and then sort of see it play out,” said Christopher Marinac, an analyst at Janney Montgomery Scott who covers regional lenders including Truist Financial Corp. and Fifth Third Bancorp. “They’re trying to kind of hedge themselves, give conservative guidance with the idea that if they’re wrong and it’s higher, no one will mind.” Judging by Wall Street analysts’ price targets, the sector is poised to rise about 11% over the next 12 months, data compiled by Bloomberg show. That implied move has increased since the start of the year, as the shares declined and analysts revised their calls higher. Story continues Fed Assumptions The earnings reports featured a slew of nonrecurring issues, such as assessments to refill the FDIC’s coffers following last year’s bank failures. Those one-time items amounted to billions of dollars in total across the largest firms. The noise pushed investors to lean even more on the firms’ guidance for the year ahead. And with the path of rates a key uncertainty, projections for net interest income — the measure of what banks make on loans versus what they pay for deposits — were particularly in focus, as were the assumptions the forecasts were built on. Read more: US Big-Bank Revenue Looks Cloudy With Rates; Card Driving Credit Wells Fargo & Co.’s guidance, like many peers, cited the forward rate curve as of early January as an input. PNC Financial Services Group Inc., meanwhile, said it expects the Fed to stay on hold through mid-year, with a mild recession starting around then, and 75 basis points of easing for 2024. Citigroup Inc. is factoring in three to six rate cuts. The market’s stance has wavered in the past week, and reflects roughly a 50% chance the Fed starts cutting in March, with 2024 easing totaling at least 125 basis points. Fed officials anticipate 75 basis points of cuts this year. “The perfect scenario for the group is probably two to three cuts in the back half of the year because inflation has come down, but it still is a soft landing,” said Keefe, Bruyette & Woods analyst David Konrad. “It feels like the market’s saying soft landing and a lot of rate cuts, which seems contradictory, but we’ll see.” Deal Revival A Fed pivot could prove a boon for another critical Wall Street business — investment banking. There are growing expectations for a pickup in dealmaking, after a drought that weighed on earnings the past two years and spurred layoffs. Both Goldman Sachs Group Inc. and Morgan Stanley cited optimism around that segment. Read More: Wall Street Banks See Investment-Banking Comeback on Fed Pivot Of course, one of the key areas investors look to banks for is their view on lending and credit, as a reading into their view on the health of the economy and the American consumer. JPMorgan Chase & Co. said that outside of credit card growth, loan growth is expected to stay muted. Citigroup said card net credit losses have risen back to pre-Covid levels. Meanwhile, credit-card issuer Discover Financial Services said its provision for credit losses more than doubled from a year earlier. The finance industry’s results continue next week, with reports from American Express Co. and Visa Inc. Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P.

2024-01-20 13:30:00+00:00

{"Bitcoin": [6334]}

{}

Fed to Begin Rate Cut Discussions But Avoid Teeing First One Up

https://finance.yahoo.com/news/fed-begin-rate-cut-discussions-133000845.html

Bloomberg

https://www.bloomberg.com/

(Bloomberg) -- Federal Reserve Chairman Jerome Powell and his colleagues could be forgiven if they’re feeling a bit like parents on an extended road trip with their children. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hedge Funds Rake in Huge Profits Betting on Catastrophe Risk Gloom Over China Assets Is Spreading Beyond Battered Stocks Trump Retires ‘DeSanctimonious’ Insult After DeSantis Backs Him Putin Orders Hunt for Property of Russian Empire, Soviet Union Investors eager for interest-rate cuts keep asking policymakers, “Are we there yet?” The repeated reply so far: “Soon, but not quite yet.” The Federal Open Market Committee is widely expected to hold interest rates steady for the fourth straight meeting when it gathers in Washington on Jan. 30 and 31. The real focus though will be on what lies ahead, at the FOMC’s March meeting and beyond. Policymakers have recently suggested they’re ready to begin discussing the broad parameters for lowering rates after giving the subject only a passing nod at their last meeting in December. Several have also indicated a willingness to entertain rate cuts in the first half of 2024 if inflation falls faster than expected. But officials haven’t given any sign they plan to use their upcoming gathering to tee up a rate cut for March – although that doesn’t preclude one from happening in response to economic shifts between now and then. San Francisco Fed President Mary Daly on Friday said it’s “premature” to think interest-rate cuts are around the corner, noting she needs to see more evidence that inflation is on a consistent trajectory back to 2% before easing policy. ”The Fed can be patient,” said Morgan Stanley chief US economist Ellen Zentner, who expects the first rate cut to come in June. Powell and his colleagues can take their time because they won’t be cutting rates to counteract an economic contraction — as has often occurred in the past. Instead, they will be calibrating policy to reflect a surprisingly steep drop in inflation from a multidecade high 1-1/2 years ago. Read More: Fed Starts to Confront the Next Big Question: Why to Cut Rates “With economic activity and labor markets in good shape and inflation coming down gradually to 2%, I see no reason to move as quickly or cut as rapidly as in the past,” Fed Governor Christopher Waller told the Brookings Institution on Jan. 16. His comments – coupled with news of stronger-than-expected retail sales in December – prompted investors to rein in their expectations for a March rate reduction. They now see a slightly less than even chance of that happening, based on trading in the federal funds futures market on Friday. Just a week earlier they put the odds of a reduction at about three in four. Story continues Worst Outcome History also argues for the Fed being cautious in initiating rate reductions. In the 1970s, the central bank was too quick off the mark in easing policy before inflation was truly vanquished. That’s an error that even Paul Volcker – widely considered the greatest US central banker – committed in 1980 as the economy weakened, only to reverse course later and drive the US into a deeper downturn. The worst outcome would be for policymakers to lower rates and have to raise them again later if inflation moves higher, Atlanta Fed President Raphael Bostic told business leaders on Jan. 18. “We do not want to go on these up-and-down or a back-and-forth pattern,” he said. Such thinking will probably prompt the central bank to delay a rate reduction until May, according to economist Claudia Sahm, a former Fed staffer. But once it gets going, it could move quickly, Sahm, who heads her own consulting firm and is a Bloomberg Opinion columnist, said. “If inflation looks really good, they could have some 50-basis-point cuts in the second half of the year,” she said. Policymakers will receive fresh data on their preferred inflation gauge next Friday, as well as a first read on gross domestic product in the fourth quarter on Thursday. Bloomberg Economics chief US economist Anna Wong said she expects the core measure of the Fed’s favored inflation gauge to come in below 2% on a one-, three- and six-month annualized basis. Read More: Fed Officials Say Data Doesn’t Show It’s Time for a Rate Cut Yet Policymakers last month projected they would lower rates by 75 basis points in 2024, according to their median forecast. Bostic told Fox Business on Friday said he’s open to changing his views on the timing of interest-rate cuts depending on the data, though he wants to be sure inflation is “well” on the way to the central bank’s 2% goal before easing policy. Forward Guidance One decision the FOMC will have to make at its upcoming gathering is whether to alter the guidance it gives on future policy actions in its post-meeting statement. In December, policymakers left the door slightly ajar to the possibility they might raise rates further, after hiking them by more than five percentage points since March 2022. Whether that is still applicable is unclear. Many officials believe the risks of a reacceleration of inflation – and thus the possibility of another rate hike — have dwindled. But with the bond and stock markets rallying on hopes of lower rates, hawkish FOMC members may be reluctant to abandon that guidance. “In light of the easing in financial conditions in recent months, we shouldn’t take the possibility of another rate increase off the table just yet,” Dallas Fed President Lorie Logan told economists on Jan. 6. Looming in the background of the Fed’s deliberations is the November presidential election. In a Jan. 17 report, Morgan Stanley economists Matthew Hornbach and Seth Carpenter made the case against assuming the upcoming election would influence monetary policy. But that doesn’t mean the central bank will escape criticism on the campaign trail, especially if Donald Trump — the leading contender for the Republican nomination — worries that Fed rate cuts will help President Joe Biden. The “Fed will be blamed for influencing the election, regardless of what it decides,” said Diane Swonk, chief economist at KPMG LLP. --With assistance from Steve Matthews. Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P. View comments

2024-01-20 13:38:00+00:00

{"Bitcoin": [1013, 1452, 1614, 2336, 2370, 3151, 3205, 3241, 3282, 3324, 3360, 3393, 3431, 3464, 3498, 6286]}

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Bitcoin ETFs just had their first week of trading. Here’s who’s winning and losing.

https://finance.yahoo.com/news/bitcoin-etfs-just-had-first-133800792.html

MarketWatch

http://www.marketwatch.com/

Investors are assessing new spot bitcoin ETFs, which began trading Jan. 11. - Getty Images BlackRock is leading inflows into spot bitcoin exchange-traded funds after about a week of trading, as investors weigh a group of similar ETFs that all launched on the same day. Most Read from MarketWatch Nvidia is no longer Morgan Stanley’s top chip pick. A much different name is. I inherited $246,000 from my mother and used $142,000 to pay off our mortgage. If we divorce, can I get it back? SPAC buying Trump’s Truth Social has nearly doubled over six-session win streak I want my son to inherit my $1.2 million house. Should I leave it to my second husband in my will? He promised to pass it on. ‘She’s obsessed’: My mom moved into my house and refuses to move out. She has paid for repairs and appliances. What should I do? “It’s pretty clear that BlackRock has a pretty strong start out the gate,” said Aniket Ullal, head of ETF data and analytics at CFRA Research, in a phone interview Friday. The firm’s iShares Bitcoin Trust IBIT has already attracted more than $1 billion of inflows, he said, since it began trading on Jan. 11 alongside nine other spot bitcoin ETFs launched that same day. “We are excited to see the strong early demand from clients for IBIT, especially within both the end-investor and advisor communities,” said Jay Jacobs, BlackRock’s U.S. head of thematic and active equity ETFs, in an emailed comment. The Fidelity Wise Origin Bitcoin Fund FBTC has the next-largest inflows among spot bitcoin ETFs as of Jan. 18, garnering more than $600 million, according to CFRA data. But the Grayscale Bitcoin Trust ETF GBTC has the most assets under management by far, at around $23.7 billion as of Jan. 18, after converting into an ETF from an already large fund, Ullal observed. “Grayscale has seen some outflows,” said Ullal, “but they’re actually not that bad considering the size of the fund.” After the Securities and Exchange Commission approved 11 spot bitcoin ETFs , it was “a very unusual situation” to see 10 of those funds all launch on the same day with the same underlying asset, Ullal said. The funds are “practically identical.” Read: Spot bitcoin ETF ticker symbols are live. Here’s what investors are looking for after SEC approval. Of the 11 bitcoin ETFs approved by the SEC, two of them — the Grayscale Bitcoin Trust ETF and the Hashdex Bitcoin Futures ETF DEFI — were conversions from existing funds, Ullal noted. The Hashdex fund has yet to convert into a spot bitcoin ETF, he said. Ullal looked at the top 10 crypto exchange-traded funds in the U.S. by assets, including those that provide exposure to spot bitcoin BTCUSD prices as well as futures contracts. Story continues CFRA RESEARCH, FLOWS BASED ON SHARES OUTSTANDING AS REPORTED BY ISSUERS FOR JAN. 18, 2024 - Ullal said that he expects that the “excitement around the initial launch” of the new spot bitcoin ETFs will be followed by a “longer grind” of building up assets over time. While “the smaller funds could face some pressure,” he said that he’d be “surprised” to see one close down in the first year. Spot bitcoin ETFs YTD Flows ($M) Assets iShares Bitcoin Trust (IBIT) 1,052 1,026 Fidelity Wise Origin Bitcoin Fund (FBTC) 637 839 Bitwise Bitcoin ETF (BITB) 378 360 ARK 21 Shares Bitcoin ETF (ARKB) 254 310 Invesco Galaxy Bitcoin ETF (BTCO) 115 131 Valkyrie Bitcoin Fund (BRRR) 64 61 VanEck Bitcoin Trust (HODL) 22 88 WisdomTree Bitcoin Fund (BTCW) 2 5 Franklin Bitcoin ETF (EZBC) 1 47 Grayscale Bitcoin Trust ETF (GBTC) -1,598 23,708 Source: CFRA data as of Jan. 18, 2024 “They all started with some seed capital,” said Ullal. AllianceBernstein analysts Gautam Chhugani and Mahika Sapra wrote in a recent note that “whichever way we look at this, it confirms our view that bitcoin spot ETFs are off to a flying start.” The 10 spot bitcoin ETFs have seen total trading volumes of $16.6 billion in their first six trading days as of Friday, according to FactSet and Dow Jones Market Data. GBTC outflows Meanwhile, investors are weighing the costs of the new bitcoin ETFs and some traders may have already reaped profits from Grayscale’s fund. JPMorgan Chase & Co. analysts led by Nikolaos Panigirtzoglou said in a Jan. 11 research note that they were expecting around $3 billion to exit GBTC, due to investors taking profits after buying “deeply discounted” shares in the secondary market over the past year. GBTC was launched in 2013 as a private, open-ended trust for accredited investors and began trading publicly in 2015. While the trust initially traded at a premium to its net asset value, or the value of the bitcoin it holds, it flipped to a discount in 2021. The discount didn’t disappear until the SEC finally approved Grayscale’s application to convert the fund into an ETF. Compared with close-ended funds, ETFs have a unique structure that allows certain financial institutions, known as authorized participants, to create and redeem shares, to keep the funds’ value aligned with that of the assets they hold. Now, as GBTC trades as an ETF, “those early investors finally have an opportunity to cash in,” according to a note Friday from James Harte, analyst at TickMill Group. The JPMorgan analysts were anticipating that Grayscale’s higher management fees could lead to additional outflows from GBTC of potentially $5 billion to $10 billion as investors seek cheaper alternatives, according to their note. GBTC charges a management fee as high as 1.5%, while most other bitcoin ETFs have fees that range from 0.2% to 0.4%. But Grayscale Investments Chief Executive Michael Sonnenshein has defended GBTC’s higher fees, noting that it is the largest bitcoin fund, has a multi-year track record and a diversified investor base, according to a CNBC report on Friday. “Investors are weighing heavily things like liquidity and track record and who the actual issuer is behind the product,” Sonnenshein told CNBC at the World Economic Forum in Davos. “Grayscale is a crypto specialist. And it has really paved the way for a lot of these products coming through.” Sonnenshein told CNBC that other bitcoin ETFs don’t have a track record and that issuers are using lower fees as an incentive to lure investors. Grayscale’s spot bitcoin ETF gained 2% on Friday, FactSet data show. Bitcoin rose 0.5% over the preceding 24 hours to around $41,500 on Friday evening, according to CoinDesk data. “GBTC has seen a big drop in funds, with money coming out of that. And the inflows into BlackRock and Fidelity are kind of compensating for that,” said Akbar Thobhani, chief executive at sFOX, in a phone interview with MarketWatch. “So you do see a shift in capital going from one to the other.” Most Read from MarketWatch ADM’s stock sees biggest-ever one-day decline on news of accounting issue ‘I can’t afford to keep paying for two households’: My adult sons live rent-free in my house, while I pay for 50% of utilities in my second husband’s condo Alphabet’s X division shedding dozens of jobs: report My brother lives in our parents’ home, which we’ll inherit 50/50. I want to keep it in the family for my children. How do I protect my interests? A new issue in divorce: Who keeps the mortgage rate? View comments

2024-01-20 15:00:00+00:00

{"Bitcoin": [3670]}

{}

Five Charts Showing the S&P 500’s Wild Ride Back to Record Highs

https://finance.yahoo.com/news/five-charts-showing-p-500-150000497.html

Bloomberg

https://www.bloomberg.com/

(Bloomberg) -- The S&P 500 Index set new closing and intraday highs for the first time in two years Friday, capping a stunning rebound from 2022’s violent selloff. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hedge Funds Rake in Huge Profits Betting on Catastrophe Risk Gloom Over China Assets Is Spreading Beyond Battered Stocks Trump Retires ‘DeSanctimonious’ Insult After DeSantis Backs Him Putin Orders Hunt for Property of Russian Empire, Soviet Union The resurgence is being powered by the so-called Magnificent Seven technology companies — Apple Inc., Microsoft Corp., Nvidia Corp., Alphabet Inc., Amazon.com Inc., Meta Platforms Inc. and Tesla Inc. — and it’s largely based on investors’ hopes for artificial intelligence and cost-cutting efforts that fueled a profit boom at those firms. It’s also getting significant help from a Federal Reserve that appears to be done raising interest rates and starting to consider when to begin cutting after the biggest monetary tightening campaign in decades. Here’s a look at the S&P 500’s wild round trip: The road from a previous record in January 2022 took 512 trading sessions. That’s the longest dry spell in more than a decade, according to data compiled by Bloomberg. Historically, however, the 512-day streak isn’t quite as impressive. In the 1970s, the S&P 500 went more than seven years without a record as inflation skyrocketed and growth stagnated. After peaking two years ago, the S&P 500 shed as much as a quarter of its value before hitting a closing low of 3,577.03 on Oct. 12, 2022. Since then, it has added more than $10 trillion in market value while rebounding from the 2022 selloff, the worst year for the index since the financial crisis in 2008. The last rout came as fast-growing tech companies got pummeled by rising interest rates. In addition, Russia’s war with Ukraine created a humanitarian crisis in Europe, oil prices soared past $100 a barrel and parts of the Treasury yield curve inverted. Story continues The information technology, communication services and consumer-discretionary sectors led the S&P 500’s bounce back in 2023. They also house the Magnificent Seven technology companies. In the first half of 2023, the seven-largest companies in the S&P 500 outperformed the rest of the index by the most since the dot-com bubble. Apple crossed back above a $3 trillion market capitalization in December after rallying nearly 50% last year. Nvidia, whose stock skyrocketed in 2023 following a massive sales forecast in May that ignited AI excitement, takes the title as top percentage-gain contributor to the S&P 500 since October 2022, rallying over 400%, followed by Royal Caribbean Cruises Ltd., Advanced Micro Devices Inc., Meta and Broadcom Inc. In terms of index-point contributions, Microsoft holds the top spot, adding 156.90 points. Nvidia added 141.54 points, while Apple contributed 95.40 points, with Meta and Amazon rounding out the top five. First Republic Bank and SVB Financial Group were the two worst performers in the S&P 500 last year, as multiple regional lenders collapsed. First Republic plunged nearly 100% and ultimately was taken over by JPMorgan Chase & Co., while SVB lost almost 70% following the failure of its Silicon Valley Bank subsidiary. Other major decliners in that span were Lumen Technologies Inc., Advance Auto Parts Inc. and Enphase Energy Inc., each of which shed about 60%. Most of these worst performers are no longer in the S&P 500. --With assistance from Alexandra Semenova. Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P.

2024-01-20 15:00:00+00:00

{"Bitcoin": [5355]}

{}

Wild Week for Spirit Shares Ends With Rally on Antitrust Appeal

https://finance.yahoo.com/news/wild-week-spirit-shares-ends-150000427.html

Bloomberg

https://www.bloomberg.com/

(Bloomberg) -- The worst week on record for shares in Spirit Airlines Inc. took a turn late Friday, when the cut-rate carrier and its would-be merger partner, JetBlue Airways Corp., appealed a regulatory decision to block a tie-up of the airlines. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hedge Funds Rake in Huge Profits Betting on Catastrophe Risk Gloom Over China Assets Is Spreading Beyond Battered Stocks Trump Retires ‘DeSanctimonious’ Insult After DeSantis Backs Him Putin Orders Hunt for Property of Russian Empire, Soviet Union Spirit shares jumped as much as 17% in late trading Friday after news of the court filing landed, adding to a 17% advance in the cash session. Overall, the stock plunged 55% in the holiday-shortened week, the worst showing in its 13-year trading history. Skepticism was mounting over Spirit’s ability to survive as a stand-alone company after a federal judge ruled JetBlue’s $3.8 billion takeover would harm cost-conscious travelers who rely on Spirit’s cheap fares. Read More: JetBlue, Spirit Appeal Ruling Blocking $3.8 Billion Merger While not unexpected, the appeal adds another variable to an increasingly complicated calculus for investors trying to assess the value of Spirit and JetBlue. Immediately after the antitrust ruling, sell-side analysts turned more bearish on Spirit’s shares than they’ve ever been, worried mostly about its debt burden and other balance-sheet woes. Short sellers also lined up to bet against the stock, with the percentage of shares borrowed to make bearish bets jumping to 20% of the total outstanding, according to S3 Partners LLC. Now, judging the stock’s next move has become fraught, though analysts remain skeptical the deal can pass regulatory muster. “JetBlue’s appeal of a Department of Justice decision to block its purchase of Spirit might not be successful, since it requires a ‘clear error’ in the judge’s interpretation of the evidence,” according to Bloomberg Intelligence antitrust analyst Jennifer Rie. Story continues There are reasons to have doubts. Just this week, Citi Research, Susquehanna Financial Group and Bank of America Global Research instituted sell-equivalent ratings on the stock. Seaport Research Partners analyst Daniel McKenzie downgraded Spirit to neutral and withdrew his price target. “Investors are understandably worried that SAVE will run out of cash,” McKenzie said in a note on Friday. “SAVE is one macro event away from a liquidity crisis but on our base outlook, limps along and is viable.” Late Friday, Spirit and JetBlue filed a one-sentence appeal that didn’t specify reasons for the move. Spirit had previously said the deal was still in effect as it explores ways to shore up its liquidity. The company declined to comment for this story. Earlier, some positive operating news following this week’s rout sparked a rebound in official trading Friday, likely fueled at least in part by investors forced to close newly deployed bearish positions. Spirit’s descent was a boon for short sellers, which reaped paper profits of roughly $181 million this week alone through Thursday’s close, according to data from S3 Partners. Read More: Keeping Spirit Cheap for Flyers Threatens to Kill It Altogether The stock ended at $6.68 in official trading Friday, below the $31 payout investors would get if the deal closes. The court decision has added turbulence to Spirit’s dire financial situation. New labor contracts for pilots will boost pay by an average of 34% over two years, adding to costs. Competition has grown stiffer as legacy airlines have expanded promotions on domestic routes, and industry supply is outweighing leisure demand within the US market, forcing budget-friendly airlines to slash already-low fares to drum up traffic. Travelers who are still taking vacations have to deal with the inconvenience of engine removals tied to Pratt & Whitney’s manufacturing defects — which are expected to ground Spirit aircraft throughout the year — in addition to Airbus SE delivery backlogs and ATC staffing shortages that have caused severe delays and network disruptions. As for JetBlue, analysts say a legal defeat is actually a positive outcome, given the high cost of the deal and Spirit’s disappointing financial performance since the proposal was first announced. The company is banking on the combination to give it sufficient scope to compete with the nation’s largest airlines for market share. JetBlue shares ended the week up about 2%. “JetBlue can now focus on more promising opportunities like further developing its premium offering or expanding its international profile,” said Xavier Smith, director of E&I Research at AlphaSense. “Given industry conditions, these actions will bolster JetBlue’s return on capital more than the Spirit acquisition.” Spirit plans to conduct a conference call to discuss fourth quarter results and its forward outlook on Feb. 8, though earnings season for the industry kicks off in earnest next week. United Airlines Holdings Inc. reports fourth-quarter earnings on Monday, followed by Southwest Airlines Co., Alaska Air Group Inc. and American Airlines Group Inc. on Jan. 25. --With assistance from Angel Adegbesan. Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P.

2024-01-20 17:32:38+00:00

{"Bitcoin": [684, 2110, 2636, 4190]}

{"Bitcoin": [58]}

Why Satoshi Nakamoto is smiling at BlackRock’s embrace of Bitcoin

https://finance.yahoo.com/news/why-satoshi-nakamoto-smiling-blackrock-173238779.html

Fortune

http://fortune.com/

The SEC’s recent decision to approve nearly a dozen bitcoin ETFs was hailed as a major win for crypto. But not by everyone. On X/ Twitter , a disgruntled faction of the cryptocurrency community cried foul over the alleged heresy of a bitcoin product custodied and marketed by the likes of BlackRock . The most common objection seems to be that “ bitcoin doesn’t need an ETF ” and that using intermediaries to purchase it—particularly ones from Wall Street— perverts the ideal of decentralization. On the more extreme end, people like self-described researcher “Chris Blec” went so far to as to suggest that BlackRock and others might conspire to alter bitcoin’s core features. And OG Bitcoiner Max Keiser warned of a scenario where the bitcoins held by ETFs get confiscated by the US government. This outcry is misguided. A bitcoin ETF is a great thing for furthering the original mission of the bitcoin project, and it’s safe bet that Satoshi Nakamoto—wherever he is—is nodding happily at this new tool to acquire his creation. Recall bitcoin is meant to be a type of peer-to-peer digital cash that can’t be usurped by the whims of any intermediary. And if bitcoin is meant to enable individuals to be their own bank, an ETF strengthens its case as a store of value. The way a store of value works is that you buy it with excess savings and sell it when you need to consume it at a later point. The way a censorship-resistant, seizure-resistant store of value works is that you buy it when you need the protection it affords you and sell it when you don’t. In other words, people willing to hold bitcoin without needing its raison d'etre render a valuable service to those who do need it. I buy bitcoin largely because other people will accept it. If I were living in an authoritarian regime, I would prefer to buy bitcoin over the local currency because I know it has a global market outside of the capital controls destroying my wealth. Knowing there is a bitcoin market that caters to even the most straight-laced investors in the world’s largest capital market only strengthens that case. Story continues Bitcoin was engineered for censorship resistance and portability, which means it can be taken anywhere in the world. Keeping bitcoin safe is a matter of keeping a string of characters a secret, one that could reside in your head if need be. It’s a sad sign of the times that this feature of bitcoin is becoming more important as capricious government policies leave more and more people “unbanked.” Even more sad is that the use cases for bitcoin have grown due to armed conflict and a mass of capital flight in recent years. Bitcoin-holders have always rendered a service to bitcoin-needers. Over the last decade, companies like Coinbase and Kraken have made it easy to set up accounts on their exchanges to buy a bitcoin or a fraction of a bitcoin. It's fair to wonder what the market is for bitcoin ETF buyers in 2024. Under existing regulations, it’s much simpler for an ETF to be held in an IRA or a 401k than any type of crypto-token because the issuers of these assets are audited in a way that’s compatible with the requirements of modern financial services. Thus, ETFs can broaden the market by appealing to a different segment of potential consumers. What’s more, fewer bad experiences with security and liquidity for the average bitcoin owner mean better outcomes for the reputation of the industry. For years, journalists have breathlessly covered stories about lost fortunes made by users’ error (and come up with creative accounting methods to exaggerate their impact). To put it another way, spot bitcoin ETFs help solve the last mile problem for cryptocurrencies. The cryptocurrency market has, to date, been saturated by ideologues and gamblers. The appearance of audited vehicles holding bitcoin creates more liquidity globally without alienating potential users by burdening them with esoterica that early ideologues (like me) readily tolerated. Instead of making a commitment to finding security solutions that usually resemble a Rube Goldberg machine, the marginally interested, crypto-curious consumer can now enjoy an easy entry into this grand experiment. Bitcoin may not need an ETF, but it certainly needs an alternative to safety deposit boxes and Ledger devices. Average folks, not just the tech savvy, who are bitcoin-curious can now contribute to bitcoin’s liquidity by dipping their toe into the ETF pool. Ultimately, this should be celebrated by even bitcoin’s most old school believers – not to mention the people using it as a lifeline. Kathleen Breitman is a cofounder of Tezos . The opinions expressed in Fortune.com commentary pieces are solely the views of their authors and do not necessarily reflect the opinions and beliefs of Fortune . This story was originally featured on Fortune.com

2024-01-20 20:00:00+00:00

{"Bitcoin": [6444]}

{}

The Easy Money Has Already Been Made in Bonds

https://finance.yahoo.com/news/easy-money-already-made-bonds-200000282.html

Bloomberg

https://www.bloomberg.com/

(Bloomberg) -- Asset managers, worried that the end-of-year rally on expectations of a soft landing was overly optimistic, are selling bonds and boosting their cash holdings. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hedge Funds Rake in Huge Profits Betting on Catastrophe Risk Gloom Over China Assets Is Spreading Beyond Battered Stocks Trump Retires ‘DeSanctimonious’ Insult After DeSantis Backs Him Putin Orders Hunt for Property of Russian Empire, Soviet Union Bond allocations among fund overseers have tumbled 17 percentage points since the same time last month, according to a Bank of America Corp. fund manager survey published this week. The amount of money they parked in money market funds and other cash vehicles rose 13 percentage points in the same period. Taking profits in bonds makes sense now. Because short-term rates are so high relative to intermediate- and longer-term yields, a junk bond doesn’t pay that much more yield than a Treasury bill. And monetary officials caution that markets have grown too confident that rate cuts are coming soon. Traders are broadly tempering bets on the number of interest rate cuts by central banks this year. “This is a month to sell risk into a rally rather than aggressively chase risk,” said Adam Darling, a high-yield bond fund manager at Jupiter Fund Management Plc, who is among those increasing his allocation to cash. “If data indicates anything other than a soft landing there will be a lot of panic in the market.” For managers like Darling, it’s becoming harder to justify holding bonds that can slump if rates fail to fall as much as expected or if fears of a recession start to intensify. Geopolitical tensions, including attacks by Houthi militants on commercial vessels in the Red Sea, could cause inflation to start to tick back up again, complicating the outlook for monetary easing. Click here to listen to a podcast on the growth of private credit Story continues Rates traders are currently pricing in more than five 25-basis-point cuts this year in the euro region and the US, and more than four by the Bank of England, according to data compiled by Bloomberg. Easing is likely in the summer, European Central Bank President Christine Lagarde said this week, while cautioning that the aggressive bets are “not helping our fight against inflation.” Allspring Global Investments is among the money managers that still see an opportunity in bonds because yields are high enough to compensate for inflation, said Henrietta Pacquement, head of global fixed income and sustainability at the firm. But there could still be pressure on the debt this year, she said. “We would be amazed if we didn’t have at least one spread selloff this year,” said Jupiter’s Darling. “The economic environment is so volatile that we could have a selloff on even a small piece of bad news.” Click here to watch the latest edition of Bloomberg Real Yield Week in Review UBS Group AG has moved away from Credit Suisse’s original plan to sell its $250 million distressed-debt business to a single bidder after it failed to attract enough interest, and is instead planning to dispose of the assets individually. Trading volume for US blue-chip corporate bonds hit a record last year, and could grow again in 2024, as investors have looked to snatch up notes while yields are still relatively high and supply of new bonds hasn’t been able to keep pace. Global leveraged loan sales are booming as issuers take advantage of strong buyer demand ahead of any cuts to interest rates and election-fueled volatility later this year. Companies are rushing to borrow money in the US high-grade and junk bond markets, with blue-chip debt sales approaching the highest for a January since 2017, as corporations look to take advantage of recent drops in yields. Demand for Europe’s debt sales is running at a record pace as investors clamor to lock in attractive yields before central banks start cutting rates. Until recently, real estate was the poster child of what can go wrong when interest rates rise rapidly. But now, bond prices are jumping and investment banks including Goldman Sachs Group Inc. are endorsing the embattled sector. The global speculative-grade default rate rose to the highest level since May 2021, on the back of higher funding costs, inflation and tighter financing conditions, according to a Moody’s Investors Service note. Borrowing costs in China’s yuan bond market used by lower-rated firms and local government financing vehicles have dropped to the lowest in almost two decades, following a string of government measures to clean up bad debts and boost the economy. Major Chinese lender Ping An Bank Co. has put 41 developers on a list of builders eligible for its funding support, a shift toward more lending to a property sector in crisis following government steps to stanch the pain. JPMorgan Chase & Co. is in talks to clinch $2.5 billion to $3 billion of third-party commitments to grow its private credit strategy. Royal Bank of Canada reopened the loonie-denominated market for debt similar to the notes issued by Credit Suisse Group AG that were wiped out last year. Dish Network Corp.’s debt exchange ambitions are causing consternation among traders who bought a form of insurance that pays out if the struggling satellite television company defaults. On the Move Five Credit Suisse portfolio managers are leaving the bank to set up a new global macro fund at the alternatives platform of Lombard Odier Investment Managers. Kevin Burke, a longtime banking executive who was an early figure in the leveraged loan business, has died after a battle with pancreatic cancer. Paul Gibbs, Citigroup Inc.’s current co-head of EMEA loans and leveraged finance, is set be given a bigger role that will include debt capital markets for the region. Carlyle Group Inc. has appointed Peter Mackie to global head of credit distribution, replacing Andrew Curry, who is leaving the firm. David Hirschmann and Ariadna Stefanescu were appointed co-heads of Permira Credit, after former head James Greenwood stepped down from the business in 2023. StoneX Group Inc. is seeking to grow its distressed sales and trading business at a time when larger firms are exiting the market. --With assistance from Dan Wilchins. Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P.

2024-01-21 01:54:56+00:00

{"Bitcoin": [2143]}

{}

Canva Holders Are Said to Near Expanded $1.5 Billion Share Sale

https://finance.yahoo.com/news/canva-holders-said-near-expanded-015456514.html

Bloomberg

https://www.bloomberg.com/

(Bloomberg) -- Australian software company Canva Inc. is close to completing a share sale that’s set to raise more than $1.5 billion, according to people familiar with the matter. Most Read from Bloomberg China Weighs Stock Market Rescue Package Backed by $278 Billion India Tops Hong Kong as World’s Fourth-Largest Stock Market An Isolated Israel Doubles Down on War in Gaza — At All Costs Netflix Pays $5 Billion for ‘Raw’ in Bet on Live Events Hong Kong Stocks at 36% Discount Show True Depth of China Gloom The share sale by a group of investors including current and former employees of the privately held firm would value the company at around $26 billion, the people said, roughly the same as in its previous round. Canva is working with Goldman Sachs Group Inc. on the round, though it’s not raising new capital, they said. Canva generated more than $2 billion in annualized revenue in 2023, the people said, asking not to be identified as the information isn’t public. Deliberations are ongoing and details may change, the people said. Representatives for Canva and Goldman Sachs declined to comment. The round comes as Canva ramps up competition with Adobe Inc., with both firms introducing artificial intelligence features last year. Adobe, long the dominant maker of software tools for graphics professionals, saw the implosion in December of a $20 billion deal to acquire Figma, another rival. Read More: Canva Unveils AI Design Tools as Competition From Adobe Heats Up Canva’s platform has gained popularity among smaller companies and Gen Zs since its inception in 2013, and more recently sought to attract larger enterprise customers. FedEx Corp., Starbucks Corp. and Zoom Video Communications Inc. are among firms that have embraced its platform. The all-in-one design product has 170 million monthly active users in 190 countries, according to the company. It counts backers including Franklin Templeton, Bessemer Venture Partners and Blackbird Ventures. Story continues --With assistance from Katie Roof. Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Should I Tell My Colleagues (or My Boss) About My Bipolar Diagnosis? ©2024 Bloomberg L.P.

2024-01-21 01:54:56+00:00

{"Bitcoin": [2142]}

{}

Canva Holders Are Said to Near Expanded $1.5 Billion Share Sale

https://finance.yahoo.com/news/canva-holders-said-near-expanded-015456319.html

Bloomberg

https://www.bloomberg.com/

(Bloomberg) -- Australian software company Canva Inc. is close to completing a share sale that’s set to raise more than $1.5 billion, according to people familiar with the matter. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hedge Funds Rake in Huge Profits Betting on Catastrophe Risk Gloom Over China Assets Is Spreading Beyond Battered Stocks Trump Retires ‘DeSanctimonious’ Insult After DeSantis Backs Him Sony Sends Termination Letter to Zee Over India Merger The share sale by a group of investors including current and former employees of the privately held firm would value the company at around $26 billion, the people said, roughly the same as in its previous round. Canva is working with Goldman Sachs Group Inc. on the round, though it’s not raising new capital, they said. Canva generated more than $2 billion in annualized revenue in 2023, the people said, asking not to be identified as the information isn’t public. Deliberations are ongoing and details may change, the people said. Representatives for Canva and Goldman Sachs declined to comment. The round comes as Canva ramps up competition with Adobe Inc., with both firms introducing artificial intelligence features last year. Adobe, long the dominant maker of software tools for graphics professionals, saw the implosion in December of a $20 billion deal to acquire Figma, another rival. Read More: Canva Unveils AI Design Tools as Competition From Adobe Heats Up Canva’s platform has gained popularity among smaller companies and Gen Zs since its inception in 2013, and more recently sought to attract larger enterprise customers. FedEx Corp., Starbucks Corp. and Zoom Video Communications Inc. are among firms that have embraced its platform. The all-in-one design product has 170 million monthly active users in 190 countries, according to the company. It counts backers including Franklin Templeton, Bessemer Venture Partners and Blackbird Ventures. Story continues --With assistance from Katie Roof. Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P.

2024-01-21 06:00:00+00:00

{"Bitcoin": [5449]}

{}

Europe Moves Into a New World After a Crippling Energy Crisis

https://finance.yahoo.com/news/europe-moves-world-crippling-energy-060000981.html

Bloomberg

https://www.bloomberg.com/

(Bloomberg) -- This month, a cold front swept across much of Europe and giant tankers that carry fuel through the Red Sea were rerouted to avoid escalating violence. That should have pushed gas prices higher. Instead, they just kept falling. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hedge Funds Rake in Huge Profits Betting on Catastrophe Risk Gloom Over China Assets Is Spreading Beyond Battered Stocks Trump Retires ‘DeSanctimonious’ Insult After DeSantis Backs Him Sony Sends Termination Letter to Zee Over India Merger Even if it’s a step too far to give Europe the all-clear, it’s a strong sign that the worst of the nightmare that sent energy bills soaring and pushed inflation to multi-year highs is in the past. Europe is benefiting from having amassed record gas reserves last year, along with help from renewables and a relatively mild winter — some cold snaps aside. Sluggish economic growth is also playing a part, capping demand for energy in major industrial powers such as Germany. That’s been enough to boost confidence across trading desks that the region is on a stable-enough footing to get through the rest of the winter with gas to spare. Benchmark European prices are currently trading under €30 a megawatt-hour, about a tenth of the peak levels in 2022. Still, having scraped through the crisis, Europe has emerged into a new reality that has its own list of challenges. It’s now relying more on renewables, and will have to deal with the intermittency of that power generation. With the loss of Russian gas, on which it was overly dependent before the invasion of Ukraine, it’s also had to look elsewhere to fulfill its fuel needs. That means vying for a share of foreign liquefied natural gas cargoes with other parts of the world. “Just by looking at prices, it seems that the crisis is over,” said Balint Koncz, head of gas trading at MET International in Switzerland. “However, we are now reliant on global factors, which can change rapidly.” Story continues “Prices could rise again, even in this heating season, if there’s a sudden supply disruption or an extended period of cold weather,” he said. One key risk is the Middle East amid attacks on ships in the Red Sea, a route that Qatar uses to send LNG to Europe. Oil and gas tankers are avoiding the area, instead opting to go around the southern tip of Africa. On a typical day, roughly two to three LNG vessels would be using the passage, according to data from Kpler. Alternative Energy Gas prices plunged almost 60% in 2023 and are down a further 12% so far this year, which should help to lower consumers’ energy bills. In the UK, the state-regulated price cap will fall almost 14% by spring, consultancy Cornwall Insight estimated in December. “This is the second winter that Europe is experiencing without Russian gas,” said Kim Fustier, HSBC Holdings Plc head of European oil & gas research. “The fact that there is now a precedent — the 2022-2023 winter that went without any issues — is helping to calm traders’ nerves.” Europe’s build-out of renewable energy means a dwindling share for gas in the continent’s power mix. An increase in wind turbines and solar installations has helped reduce the need for the fuel, together with a recovery in French nuclear production last year. But there’s a long road ahead, with many potential bumps. A gas pipeline transit agreement between Russia and Ukraine expires at the end of this year — and is unlikely to be renewed — meaning that the continent could get even less gas from Russia. While there’s a massive global investment in LNG, much of the new capacity won’t come to the market until 2025 and 2026. And extreme weather events are becoming more frequent, straining power systems and sometimes boosting demand for gas. In Asia, strong inventories mean gas prices there are also declining at the moment, and are at the lowest since June. LNG buyers in Japan, the world’s second biggest importer of the super-chilled fuel, are actively selling shipments because they have too much. Some of those cargoes are likely to make their way to Europe. While there are pockets of demand, particularly in India and China, those purchases are primarily driven by traders looking for a good deal. The story is much the same in the US, where gas futures dropped about 20% last week as storage remains well above the five-year average. Cold weather drove up power demand and froze some gas wells, but did little to boost futures. Canal Disruption Still, issues at two key LNG passages — the Suez Canal and the drought-hit Panama Canal — are lengthening journeys, adding to the cost of shipping and stretching the global fleet of ships. While traders don’t appear to be too fussed, a prolonged disruption could change that. The decline in gas prices from the 2022 peaks hasn’t always been one way. Intense bouts of volatility — from LNG strikes in Australia to outages in the US to the outbreak of the Israel-Hamas war — have caused spikes, offering reminders that the current calm isn’t guaranteed to last. “We are still very cautious on what is going to happen next,” Stefan Rolle, head of energy policy at Germany’s Energy Ministry said at the Americas Energy Summit in New Orleans on Thursday. --With assistance from Stephen Stapczynski and Ruth Liao. Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P.

2024-01-21 08:28:00+00:00

{"Bitcoin": [205, 398, 640, 760, 980, 2281]}

{}

LBank Labs Announces Incubation Fund Investment in AMBBi

https://finance.yahoo.com/news/lbank-labs-announces-incubation-fund-082800835.html

Newsfile

https://www.newsfilecorp.com

Road Town, British Virgin Islands--(Newsfile Corp. - January 21, 2024) - LBank Labs has established a dedicated Incubation Fund for Inscription Projects, and AMBBi, an innovative dual-asset project on the Bitcoin blockchain, is the first to be inducted into this groundbreaking initiative. This investment not only highlights LBank Labs' vision but also marks a new chapter in the evolution of the Bitcoin ecosystem. LBank Labs Announces Incubation Fund Investment in AMBBi To view an enhanced version of this graphic, please visit: https://images.newsfilecorp.com/files/8831/195063_295af14744131836_001full.jpg AMBBi: A Trailblazer in the Bitcoin Ecosystem AMBBi, standing for "Art Meets Blockchain & Beyond innovation," is a first-of-its-kind project in the Bitcoin ecosystem, featuring the BRC20 inscriptions AMB and BRC69 trendy play NFT AMBBi. With an active community of over 3600 address holders, AMBBi is a testament to the growing interest and belief in the potential of Bitcoin-based assets. Technological Innovation and Cultural Integration The project is renowned for its unique recursive inscription technology, capable of generating over four trillion unique combinations, with a select 10,000 pieces ensuring the artistry, uniqueness, and rarity of each asset. AMBBi's NFT designs, deeply ingrained in Asian culture, have gained international acclaim, signifying a harmonious blend of art, culture, and blockchain technology. LBank Labs' Inscription Track Incubation Fund The establishment of an Inscription Track Incubation Fund by LBank Labs demonstrates their commitment to nurturing projects that are at the forefront of blockchain innovation. AMBBi, being the first project to be incubated under this fund, will benefit from LBank Labs' extensive resources and expertise in the blockchain sector. Focused Support and Resource Advantages As part of its incubation, AMBBi will receive focused support from LBank Labs in various domains, including market expansion and strategic development. A significant aspect of this support is the opening up of new markets, with a special emphasis on penetrating the South Korean and other overseas markets. This strategic move is aimed at amplifying AMBBi's presence on a global scale and establishing it as a leader in the Bitcoin-based NFT space. Story continues Market Growth and Trading Activity Since its inception, AMBBi has demonstrated impressive market growth. The project saw its entire minting of 21 billion AMB inscriptions completed within a week of launch. Additionally, AMB's trading volume on major platforms like OKX Web3 Wallet Ordinals Marketplace has been remarkably high, reflecting the project's liquidity and active market presence. AMBBi's Future with LBank Labs' Support With the backing of LBank Labs' Incubation Fund, AMBBi is poised for significant growth and innovation. This collaboration aligns with LBank Labs' commitment to supporting pioneering projects that reshape the blockchain industry. About LBank Labs LBank Labs, a prominent player in the web3 space, manages a versatile $100 Million fund that extends beyond specific protocols and exchanges. With a team of experienced web3 veterans from prestigious entities, they have built an extensive network of expertise and connections. Their investment strategy includes fund-of-fund investments, direct investments in early-stage projects, and liquid projects, enabling them to explore diverse opportunities. LBank Labs actively promotes their investment thesis, "The Other Angle," through engaging discussions and focuses on the PSE principles to foster sustainable growth and innovation in the web3 landscape. With a Fund of Fund network comprising 12 funds and over $1 billion in AUM, and offices in seven global regions, LBank Labs is well-positioned to expand their network and drive innovation in the web3 ecosystem, together with their partners and collaborators. Press contact: [email protected] Business Contact: LBK Blockchain Co. Limited LBank Exchange [email protected] [email protected] To view the source version of this press release, please visit https://www.newsfilecorp.com/release/195063

2024-01-21 09:50:00+00:00

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{"Bitcoin": [6]}

1 Top Bitcoin ETF to Buy Before the Crypto Market Soars 300%, According to a Wall Street Analyst

https://finance.yahoo.com/news/1-top-bitcoin-etf-buy-095000920.html

Motley Fool

http://www.fool.com/

The cryptocurrency market is currently worth $1.6 trillion, and Bitcoin (CRYPTO: BTC) accounts for 50% of that total. Bitcoin dominance (i.e., the market value attributable to Bitcoin) was also 50% five years ago, though it has ranged from 38% to 70% during that time period. With that in mind, Morningstar analyst Michael Miller expects the cryptocurrency market to soar 300% to $6.4 trillion by 2032. If Bitcoin dominance stays at 50%, the implied upside for Bitcoin would also be 300%. Alternatively, the implied upside would be closer to 200% if Bitcoin dominance slipped to 38%, and the implied upside would be closer 460% if Bitcoin dominance increased to 70%. Regardless, cryptocurrency bulls have good reason to invest in Bitcoin, and that can be done in a few ways. The most obvious method is a cryptocurrency exchange like Coinbase (NASDAQ: COIN) . But creating and managing an account may be a headache, especially for investors with existing brokerage accounts. Fortunately, a new type of investment product eliminates that friction: spot Bitcoin ETFs. Spot Bitcoin ETFs reduce friction for investors Earlier this month, the U.S. Securities and Exchange Commission (SEC) approved 11 spot Bitcoin ETFs, funds that track the price of Bitcoin . That landmark decision could draw more retail and institutional investors to the market, and the influx of capital could drive the price of Bitcoin much higher in the years ahead. Spot Bitcoin ETFs are particularly attractive because they eliminate the headache of managing multiple accounts. Investors no longer need to buy Bitcoin through a specialized exchange, nor do they have to worry about storing the cryptocurrency with a blockchain wallet. Instead, spot Bitcoin ETFs make it possible to add Bitcoin exposure to existing brokerage accounts. That convenience is why spot Bitcoin ETFs could drive the price of the cryptocurrency higher. For context, analysts at Bernstein believe the price per Bitcoin could reach $150,000 by 2025, implying 252% upside from its current price of $42,600. Similarly, analysts at Standard Chartered Bank believe the price per Bitcoin could reach $200,000 by 2025, implying 369% upside. The best (and worst) spot Bitcoin ETFs Generally speaking, all spot Bitcoin ETFs do the same thing. They purchase Bitcoin from a cryptocurrency exchange (often Coinbase), divide the Bitcoin into shares, and sell those shares on the stock market. In other words, this is not a situation where a team of experienced asset managers could create substantial value for fund holders by trading the right securities at the right times. Story continues For that reason, buy-and-hold investors should focus on fees or expense ratios. As mentioned, the SEC has approved 11 spot Bitcoin ETFs, but fees vary widely between certain funds, as detailed below: Bitwise Bitcoin ETF Trust (NYSEMKT: BITB) : 0.20% Ark 21Shares Bitcoin ETF (NYSEMKT: ARKB) : 0.21% Fidelity Wise Origin Bitcoin Fund (NYSEMKT: FBTC) : 0.25% iShares Bitcoin Trust (NASDAQ: IBIT) : 0.25% Valkyrie Bitcoin Fund (NASDAQ: BRRR) : 0.25% VanEck Bitcoin Trust (NYSEMKT: HODL) : 0.25% Franklin Templeton Digital Trust (NYSEMKT: EZBC) : 0.29% WisdomTree Bitcoin Trust (NYSEMKT: BTCW) : 0.3% Invesco Galaxy Bitcoin ETF (BATS-CHIXE: BTCO) : 0.39% Hashdex Bitcoin ETF (NYSEMKT: DEFI) : 0.94% Grayscale Bitcoin Trust (NYSEMKT: GBTC) : 1.5% Personally, I would eliminate the bottom half of that list based on fees alone, and none more so than the Grayscale Bitcoin Trust. There is simply no reason to pay 1.5% for an ETF -- that means investors would pay $15 annually on every $1,000 invested -- when an identical product could be purchased for a fraction of that cost. Next, I would consider the issuer behind the ETF. Several funds listed above are run by asset managers with plenty of experience, including Ark Invest and Fidelity. But the iShares Bitcoin Trust would be my top choice, because the fund is run by BlackRock , the largest asset manager in the world. To be clear, the issuer should matter very little, but ETFs run by larger asset managers may be less prone to liquidity problems arising from insufficient demand. For instance, the iShares Bitcoin Trust finished Jan. 18 at a 0.08% premium to its net asset value. That means investors are valuing the ETF at a 0.08% premium to the price of Bitcoin. That points to strong demand. Conversely, the Grayscale Bitcoin Trust traded at a 0.27% discount to its net asset value, which hints at weaker demand. Here's the bottom line: I would avoid spot Bitcoin ETFs with an expense ratio above 0.25%, and I would absolutely avoid the Grayscale Bitcoin Trust, simply because there are less expensive alternatives. Building on that, I would feel comfortable buying the spot Bitcoin ETFs run by Ark, BlackRock, and Fidelity, but the iShares Bitcoin Trust would be my first choice. Should you invest $1,000 in Bitcoin right now? Before you buy stock in Bitcoin, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Bitcoin wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*. See the 10 stocks *Stock Advisor returns as of January 16, 2024 Trevor Jennewine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bitcoin and Coinbase Global. The Motley Fool has a disclosure policy . 1 Top Bitcoin ETF to Buy Before the Crypto Market Soars 300%, According to a Wall Street Analyst was originally published by The Motley Fool View comments

2024-01-21 13:01:27+00:00

{"Bitcoin": [7556]}

{}

Trump’s 2016 Win Shook Markets. Traders Won’t Get Fooled Again.

https://finance.yahoo.com/news/trump-2016-win-shook-markets-130127050.html

Bloomberg

https://www.bloomberg.com/

(Bloomberg) -- Donald Trump’s surprise victory in the 2016 presidential election delivered a shock to financial markets. If he manages to secure a second one, traders will — if anything — be far more prepared. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hedge Funds Rake in Huge Profits Betting on Catastrophe Risk Gloom Over China Assets Is Spreading Beyond Battered Stocks Trump Retires ‘DeSanctimonious’ Insult After DeSantis Backs Him Sony Sends Termination Letter to Zee Over India Merger Trump seems to be on a quicker path to the nomination than eight years ago, when he didn’t lock it down until May. And polls show it would likely be a close contest between him and President Joe Biden, a shift from his long-shot status in 2016. The result: Wall Street is already starting to game out the impact of Trump’s possible return to the White House. “This time the markets will be aware of both possibilities and price them to some extent — we wouldn’t expect the same volatility as we saw in 2016 after the election,” said Daniel Tobon, head of G10 FX strategy at Citigroup Global Markets. Nothing is assured, of course, and Trump’s prospects risk being upended by the ongoing criminal cases against him or a surprise turn of events at the polls. That’s made the election little more than background noise so far — for markets, at least, with the focus instead squarely on the trajectory of the economy, geopolitical tensions and when the Federal Reserve will start cutting interest rates. But something of an early consensus is emerging, based in part on what happened last time around and the likely impacts of the few policies he’s staked out so far — like imposing 10% tariffs on imports and making his 2017 individual tax cuts permanent. The upshot is that it could put upward pressure on bond yields, bolster the dollar, and exert a drag on trading partners’ currencies. Here’s a look at the market reaction to Trump’s 2016 victory and how it could play out if he heads to a second win this year: Story continues Bond Rally’s Fate The US bond market is facing a far different dynamic than in 2016, when the central bank had just raised interest rates for the first time of its cycle and was poised to keep doing so. Those expectations — combined with a view that Trump’s tax cut plans would stimulate the economy — contributed to a deep bond-market selloff, pushing up 10-year Treasury yields in the fourth quarter by the most in more than seven years. Bond funds saw the largest outflows of cash since 2013’s “taper tantrum.” The question this time around is to what degree Trump’s proposed policies — either as his party’s nominee or the incoming president — could alter the interest-rate cut expectations that are now priced into markets. “It’s about tax and growth implications, deficit implications, regulatory implications, because that’s quite crucial for markets,” said Gennadiy Goldberg, head of US rates strategy at TD Securities. But the fiscal impact of the election will likely be seen as more muted this time, in part because a key issue will be whether to extend Trump’s 2017 tax cuts when they expire next year, not necessarily pushing through new ones. Furthermore, Biden has been overseeing an expansionary fiscal policy, leaving the government already contending with large deficits at a time of near full employment. “Which one of these candidates is likely to generate a higher deficit? The way things stand, it’s currently both,” Goldberg said. “A lot of this comes down to what the fiscal trajectory is in the US, and right now there’s no push for fiscal conservatism. That’s making investors nervous about 2025 and 2026.” Whether the next president’s party controls Congress or not is also key, since a divided government may result in gridlock. Goldman Sachs Group Inc.’s Dominic Wilson and Vickie Chang said in a note to clients that it looks more likely that Republicans — not Democrats — could win control of both the White House and Congress. Such a sweep, they said, could result in higher bond yields — particularly on longer-dated securities — by keeping the Fed on guard for a potential overheating in the economy. Strong Dollar? Higher yields could be good for the dollar. The currency drifted lower as bond yields retreated from last year’s peaks due to expectations for rate cuts, leaving it holding well below its 2022 high. While the dollar surged after Trump’s 2016 victory as Treasury yields jumped, it went on to slide in 2017 as the U.S. economy lost momentum while growth picked up in Europe. But Trump’s push to impose tariffs — if successful — could help boost the dollar against other currencies by curbing imports and stanching the flow of dollars outside of the US. “The Trump effect is in part by default dollar positive, precisely because it’s negative for important currencies like the euro, yuan and Mexican peso,” said Deutsche Bank strategist Alan Ruskin. “Traders are recognizing that Trump’s impact on trade and geopolitics is for different reasons, at least initially, positive for the dollar.” The Mexican peso, which rallied last year, slipped some 2% on Tuesday as investors adapted to the news of Trump’s Iowa victory. The Chinese yuan is also expected to face added pressure if a Trump victory looks likely as the election nears. Deutsche Bank strategists wrote in a note to clients that the election will likely keep the dollar in 2023’s ranges this year even if the Fed cuts interest rates as sharply as expected. “The market is likely to start adding to a dollar safe-haven premium through the year as election risks build,” they wrote. Stocks in Limbo The US stock market rebound — which drove the S&P 500 back to a record high Friday — is hanging more than anything on whether the Fed can dial back interest rates and pull the economy into a soft landing instead of a recession. In early 2016, the global stock markets were arguably on a more shaky footing than they are now, contending with the specter of rising rates instead and a world-wide oil glut. In August 2015, China’s decision to devalue the yuan set off an equity rout there that rippled to other markets, and the UK’s vote to pull out of the European Union dealt another shock in mid-2016. Even so, the S&P 500 drifted up for most of that year and jumped in the two months after Trump’s victory. Some corners fared better under Trump than others, with his America First rhetoric and pledge to bolster US defense spending lifting defense contractors like Lockheed Martin Corp. and Northrop Grumman Corp. While Trump fell short on his promise to enact a major infrastructure plan, Caterpillar Inc., the maker of signature yellow diggers and bulldozers, more than doubled during his tenure. But overall, the so-called Trump trades of 2016 lagged the S&P 500 during his term. That’s left investors wary of trying to predict equity-market winners and losers at this stage, particularly since macro-economic forces are overriding election talk. “Political predictions and the market don’t seem to match up at this point” said Joseph Saluzzi, co-head of equity trading at Themis Trading LLC. “At this point of the economic cycle, it’s impossible to say that the market reactions are based on political predictions. You bet on coal stocks, you bet on financials, you bet on infrastructure stocks — the markets will find a way to make you look like an idiot.” Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P.

2024-01-21 14:00:00+00:00

{"Bitcoin": [2077]}

{}

Australian House Price Growth Seen ‘Muted’ in 2024, Oxford Says

https://finance.yahoo.com/news/australian-house-price-growth-seen-140000603.html

Bloomberg

https://www.bloomberg.com/

(Bloomberg) -- Australia’s housing market is at an inflection point as the factors that boosted prices to record highs last year are now starting to fade, according to Oxford Economics, which expects 2024 to be softer for property prices. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hedge Funds Rake in Huge Profits Betting on Catastrophe Risk Gloom Over China Assets Is Spreading Beyond Battered Stocks Sony Sends Termination Letter to Zee Over India Merger Trump Retires ‘DeSanctimonious’ Insult After DeSantis Backs Him The company forecasts home price growth of 2.7% nationally in 2024, Maree Kilroy, senior economist at Oxford Economics Australia, wrote in a research note on Monday. That compares with an 8.1% surge in 2023, according to property consultancy CoreLogic Inc. Read More: Australian Home-Price Growth Slows Further as Sydney Cools Australia’s property market surprised with a recovery last year despite the central bank’s 4.25 percentage points of monetary policy tightening since May 2022. The increases were largely fueled by a lack of new housing stock and a surge in population growth. The Reserve Bank last left interest rates at a 12-year high of 4.35% and maintains a hawkish tone as the economy and labor market show ongoing resilience. The housing price momentum eased in recent months as rate hikes, persistent cost of living pressures, worsening affordability, rising advertised stock levels and poor consumer sentiment came together to take some heat out of the market. Kilroy said deteriorating housing affordability will continue to play a key role in containing the pace of growth, especially for houses. Still, a significant shortage of homes is likely to persist across the country, placing a floor under prices, she added. Australia faced a deficiency of more than 100,000 homes in 2023. That’s expected to ease slightly this year to roughly 97,000, Kilroy’s research shows. Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P. View comments

2024-01-21 14:21:00+00:00

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{"Bitcoin": [22]}

Time to Choose: Which Bitcoin ETFs Stand Out in the Early Going, and How Different Are the Winners?

https://finance.yahoo.com/news/time-choose-bitcoin-etfs-stand-142100661.html

Motley Fool

http://www.fool.com/

At long last, the U.S. Securities and Exchange Commission (SEC) has approved a handful of applications to launch exchange-traded funds (ETFs) reflecting the spot price of Bitcoin (CRYPTO: BTC) tokens. Investors now have access to 11 Bitcoin-based ETFs, allowing exposure to the largest cryptocurrency even in account types that don't offer crypto-trading. And there was much rejoicing. It's still early, but the hopeful field of Bitcoin ETF options has already started separating the wheat from the chaff. Four of the 11 funds stand head and shoulders over the rest with far more trading action and larger Bitcoin portfolios under management one week later. Each fund offers a unique spin on the idea of Bitcoin-based ETFs. Some of the lagging options may offer interesting features, but their market footprint is too small for proper coverage under The Fool's disclosure policy and general publishing guidelines. Stocks and cryptocurrencies with market caps below $200 million are below the coverage threshold, and the same limit applies to the net asset value (NAV) of ETFs. Most of the new Bitcoin names sit far below that level. So let's take a deeper look at the four early winners instead. I'm doing this for your benefit, dear reader, but also for my own. Regular readers might recall that I might switch my own Bitcoin-fund holdings currently parked in the just-converted Grayscale Bitcoin Trust (NYSEMKT: GBTC) , since that particular option comes with above-average annual fees. So what you're about to read will show you how and why I'd pick an alternative and make the jump -- or not, as the case may be. The early winners, by the numbers ETF Name and Ticker Net Asset Value (NAV) Average Daily Volume (number of shares) Annual Management Fees Grayscale Bitcoin Trust $25.2 billion 7.7 million 1.5% (No introductory fee waiver) iShares Bitcoin Trust (NASDAQ: IBIT) $698 million 22.4 million 0.25% (Introductory rate of 0.12% for the first year or first $5.0 billion assets under management (AUM)) Bitwise Bitcoin ETF Trust (NYSEMKT: BITB) $355 million 3.1 million 0.2% (Introductory 0% rate for the first 6 months or first $1.0 billion AUM) Ark 21Shares Bitcoin ETF (NYSEMKT: ARKB) $279 million 3.4 million 0.21% (Introductory 0% rate for the first 6 months or first $1.0 billion AUM) Data sources: Finviz.com, Yahoo! Finance, and each fund's online home page. Data was collected on Thursday, Jan. 18, 2024. Story continues What's wrong with the Grayscale Bitcoin Trust? As you can see, Grayscale's fund is far larger than the others. It's the only asset on this list that was converted from a mutual fund format instead of created from scratch last week. As such, it has built up a massive Bitcoin portfolio over the last 11 years. Grayscale has been fighting for the ETF classification for years, filing the first such application in October 2021. The old mutual fund format lacks the advanced price management features of a modern ETF, so Grayscale's Bitcoin Trust didn't always reflect the true value of its underlying cryptocurrency holdings. For instance, the fund often traded at a generous premium to its Bitcoin value -- averaging 40% in the 6-year period between 2015 and 2020 -- before swinging to a deep discount in 2021. The fund's price dipped to an average 49% rebate from December 2022 to May 2023, as investors feared that the ETF conversion might never come: GBTC Discount or Premium to NAV Chart I built my Grayscale investment by buying in thirds on the outskirts of that ideal period, at discounts ranging from 25% to 40%. An important part of my investment thesis was that the full-fledged ETF would finally match the true market value of Grayscale's substantial Bitcoin holdings, and that's exactly what happened. Over the last 5 market days, the ETF has traded as a minimal discount of roughly 1%. So far, so good. Now I'm effectively holding a Bitcoin investment in an account that doesn't offer any form of direct cryptocurrency trading. And there was much rejoicing. But then it turns out that Grayscale's sector-leading ETF also comes with the highest management fees of any Bitcoin ETF. These annual expenses were reportedly a sticking point in negotiations for that precious SEC approval, and the firm agreed to lower its annual fee from 2% to 1.5% just two days before the final approval. My first thought was to leave my Grayscale investment alone. A 1.5% fee may be high compared to the single-digit rates and even lower introductory fees seen in other Bitcoin ETFs, but it's small potatoes next to the potential gains of a long-term Bitcoin investment. Wouldn't trading fees and capital gains taxes undermine or even overwhelm the savings I'd see from moving to a cheaper option, anyway? And then it struck me. Like most modern brokerages, my trading platform doesn't charge any fees or commissions on ordinary trades in stocks or ETFs. Furthermore, that basket of Grayscale Bitcoin Trust shares is in a traditional IRA retirement account where taxes are levied on withdrawal and the trades along the way don't incur any additional tax charges. In other words, I shouldn't let taxation issues limit my efforts to optimize that Bitcoin ETF position. So now I'm leaning toward making that move, squeezing the last drop of available returns from my IRA-based Bitcoin investment. Goodbye, Grayscale. What are my options? Grayscale's high management fees may be a mistake since the fund's net asset value has declined in the early going while lower-priced options posted substantial growth instead. Hence, it's time to eat Sir Robin's minstrels and look at the other three winners. Are there any game-changing differences between the iShares, Bitwise, and Ark Invest alternatives? The iShares fund comes with a robust early uptake, building nearly a billion-dollar Bitcoin bucket in just a few days. That's hardly surprising, given the iShares series' solid reputation, competitive fees, and financial backing of its parent company, colossal investing services firm BlackRock (NYSE: BLK) . Whatever happens to Grayscale over time, the iShares Bitcoin Trust could very well become the go-to choice of Bitcoin ETFs. Bitwise's fund offers the lowest fees once all the introductory rebate offers expire. Furthermore, this isn't a financial services firm dabbling in Bitcoin, but a cryptocurrency expert taking a swing at ETFs. I see that as an upside, but your mileage may vary. Bitwise also leans into its cryptocurrency focus by pledging to donate a portion of the ETF's profits to Bitcoin developers. Some critics see this as Bitwise attempting to gain some control over Bitcoin's future direction. I see a helpful effort to support the blockchain infrastructure behind the whole Bitcoin system, which should be a good thing. Finally, I kind of expected this firm to manage its own Bitcoin transactions and asset custody, as Fidelity does, but that's not the case. Bitwise leaves that duty to the Coinbase (NASDAQ: COIN) Custody service -- the same custodian used by every ETF in the table above. Still, low fees and deep cryptocurrency expertise make Bitwise a tempting option. Then there's the Ark 21Share fund, managed by Cathie Wood and her team of growth-stock experts. This ETF is barely large enough to merit coverage so far, offering a middle-of-the-road fee schedule and no eye-catching special features. Buying Ark's Bitcoin ETF is essentially a vote of confidence in Cathie Wood's team and its ability to effectively manage a plain-vanilla digital assets ETF in the long run. So where will I go and what should I recommend for you, dear reader? I'm tempted to reinvest my Grayscale Bitcoin Trust holdings in the Bitwise fund, thanks to its low fees and commitment to supporting the Bitcoin development community. The Ark option was the runner-up for me, as the fund is nearly identical to the iShares alternative but with a lighter fee schedule. In another ETF race, the minimal fees of a Vanguard fund would always be a top choice but that firm sees no value in Bitcoin and won't launch an ETF in this sector anytime soon. There you have it; I'll probably move my Grayscale investment over to the Bitwise Bitcoin ETF trust in a few days. The disclosure policy I mentioned earlier limits me from buying or selling any of these assets a few days before and after publishing articles about them, so I can't do anything today. You, on the other hand, are free to pick your favorite Bitcoin ETF and grab a few shares, as you might with any normal stock. Again, I'd recommend the Bitwise or Ark 21Share alternatives, depending on whether you crave Bitwise's developer support or not. Both Bitcoin ETFs offer rock-bottom annual fees. And there was much rejoicing. Should you invest $1,000 in Bitwise Bitcoin ETF Trust right now? Before you buy stock in Bitwise Bitcoin ETF Trust, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Bitwise Bitcoin ETF Trust wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*. See the 10 stocks *Stock Advisor returns as of January 16, 2024 Anders Bylund has positions in Bitcoin, Coinbase Global, and Grayscale Bitcoin Trust (BTC). The Motley Fool has positions in and recommends Bitcoin and Coinbase Global. The Motley Fool has a disclosure policy . Time to Choose: Which Bitcoin ETFs Stand Out in the Early Going, and How Different Are the Winners? was originally published by The Motley Fool

2024-01-21 15:00:07+00:00

{"Bitcoin": [5469]}

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Big Tech Still Rules Profit Growth Even as S&P Leadership Widens

https://finance.yahoo.com/news/big-tech-still-rules-profit-150007197.html

Bloomberg

https://www.bloomberg.com/

(Bloomberg) -- Bets on the US stock market rally broadening out beyond a handful of tech behemoths this year are bumping into a familiar reality: Those same megacaps remain Corporate America’s most likely source of profit growth. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hedge Funds Rake in Huge Profits Betting on Catastrophe Risk Gloom Over China Assets Is Spreading Beyond Battered Stocks Sony Sends Termination Letter to Zee Over India Merger Trump Retires ‘DeSanctimonious’ Insult After DeSantis Backs Him Tech’s fourth quarter earnings season kicks off this week with results from Netflix Inc., Tesla Inc. and Intel Corp. The so-called Magnificent Seven are expected to deliver combined profit growth of about 46%, according to data compiled by Bloomberg Intelligence. That’s down slightly from the third quarter’s 53% expansion, but it still dwarfs almost all of the main sectors in the S&P 500 Index. Considering how important these companies are to the overall stock market — they accounted for virtually all of last year’s 24% advance and drove the S&P 500 to an all-time high on Friday — earnings season doesn’t quite get going until they show up with their results. “The dominant growth in the market is coming from Big Tech,” said Anthony Saglimbene, chief market strategist at Ameriprise Financial. “If they disappoint, that’s a real risk to the overall market.” Bulls are banking on strong earnings reports to rekindle a rally in the S&P 500 Index that has slowed a bit to start the year after 2023’s torid pace. Apple Inc., Microsoft Corp., Alphabet Inc., Amazon.com, Nvidia Corp., Tesla and Meta Platforms Inc. accounted for about two-thirds of that gain. Apple, one of the pillars of last year’s rally after adding nearly $1 trillion in market value, has limped out of the gate in 2024 amid concerns about its growth prospects. Its most innovative product in years, the $3,499 Vision Pro headset, is set to begin shipping next month but is unlikely to provide a jolt to sales any time soon. Story continues Meanwhile, Microsoft has pushed deeper into record territory on rising expectations that its expanding lineup of AI-infused software products will fuel bigger profits. The Redmond, Washington-based company said on Jan. 15 it will charge $20 a month for a consumer version of its AI assistant. Changing Leadership Looking at the stock market as a whole, the S&P 500 has had a bumpy ride to start the year, falling in early January before rising to a new record on Friday. Investors are trying to assess the strength of the US economy and determine when the Federal Reserve will start cutting its benchmark interest rate, which is sitting at the highest since the dot-com era. The S&P 500’s leadership has changed in recent weeks, with Advanced Micro Devices Inc., Broadcom Inc., Eli Lilly & Co. and Merck & Co. among the most prominent point gainers so far in 2024. Meanwhile Tesla, which is down more than 15% since New Year’s, has become the heaviest drag on the S&P, with Apple close behind. For tech investors, one big question is how much the AI craze will contribute to earnings and then spill over into stock prices. Nvidia, which is the best stock in the S&P 500 this year and last, dominates the market for chips used in AI computing and is expected to post fourth-quarter profits of more than $10 billion, up from $1.4 billion a year ago. Without Nvidia, the S&P 500 Information Technology Index’s projected fourth quarter profit growth would be more than cut in half, according to Wendy Soong, an analyst with Bloomberg Intelligence. “We think more companies are likely to find ways to monetize their AI exposure, and investors will be looking for evidence on how companies can maintain or improve their margins,” Solita Marcelli, chief investment officer for the Americas at UBS Global Wealth Management, wrote in a research note on Jan. 17. “We are only in the first innings of the AI story.” Crowding Concerns At the same time, signs of crowded positioning in tech are raising concerns about the risk of a sell off if results from some of the giants disappoint. A global fund manager survey from Bank of America Corp. this month showed the most common trade is being long Big Tech and other tech growth stocks. To Matt Maley of Miller Tabak + Co., recent trading has shown that Big Tech is driving the market again and the heavy concentration is a “warning flag” for investors that may come back to bite them. “When the fast-money hedge funds have such large concentrated positions, it leaves the market very vulnerable to a short-term shock,” said Maley, the firm’s chief market strategist. Despite this set up, the options market is pricing in “virtually no risk” for megacap stocks, according to Brian Donlin, head of equity derivatives strategy at Stifel Nicolaus. Ameriprise Financial’s Saglimbene is confident that any selloff would be relatively short lived as the attraction of Big Tech stocks are unlikely to dim. “Over the long term, investors will look to these companies and gravitate back to them because they really do have the growth, the recurring revenue and the potential for greater growth in the future,” he said. “No other sector offers that kind of runway for earnings.” --With assistance from Carly Wanna, Isabelle Lee and Ryan Vlastelica. Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P.

2024-01-21 15:26:02+00:00

{"Bitcoin": [2507, 2582, 2623, 3796]}

{}

Big Tech Earnings and the New Hampshire Primary: Sunday US Briefing

https://finance.yahoo.com/news/big-tech-earnings-hampshire-primary-152602714.html

Bloomberg

https://www.bloomberg.com/

(Bloomberg) -- Hello, from Washington. This week all eyes are on Big Tech earnings, ongoing US strikes on Yemen-based Houthis who’ve been targeting Red Sea commercial traffic for weeks and, of course, New Hampshire. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hedge Funds Rake in Huge Profits Betting on Catastrophe Risk Gloom Over China Assets Is Spreading Beyond Battered Stocks Sony Sends Termination Letter to Zee Over India Merger Trump Retires ‘DeSanctimonious’ Insult After DeSantis Backs Him The big standoff: Attacks against Houthis continued this weekend as US air strikes destroyed a Houthi anti-ship missile that was expected to launch into the Gulf of Aden. The Yemen-based militants have targeted Red Sea commercial traffic for weeks, sparking attention from oil market investors who are preparing for weeks-long disruption to shipping in the region. With the spillover from Israel’s war on Hamas rattling the Middle East, the United Arab Emirates has urged the US to support an immediate ceasefire in Gaza, warning that the risk of a regional conflagration is growing daily. The big stat: The US economy is expected to grow moderately in the fourth quarter. That, on top of the 4.9% third-quarter advance, would mark the strongest back-to-back quarters of growth since 2021, feeding expectations that an economic expansion will remain intact. Slowing inflation has opened the door for central bankers to lower interest rates this year, but many policymakers are reluctant to commit to such a move as early as March. The big tech takeover: Earnings season is in full swing and all eyes are on Big Tech this week, with results to come from Netflix, Tesla and Intel. Bets on the US stock market rally broadening out beyond a handful of tech giants this year are finding that those megacaps remain Corporate America’s most l ikely source of profit growth. The big week for Haley: The New Hampshire Republican primaries are this week. Although former president Donald Trump is polling in first place, the state could be an opportunity for Nikki Haley to pull ahead. State Republican Party Chairman Chris Ager said her challenge against Trump could receive a boost on Tuesday from New Hampshire’s more moderate electorate. Haley has the backing of a number of prominent Wall Street billionaires, who will co-host a fundraiser for her campaign later this month. Story continues The big boycott: Vanguard Group founder Jack Bogle warned people to “avoid Bitcoin like the plague” in 2017. Now, Vanguard is doubling down, snubbing Bitcoin-spot products and futures-backed Bitcoin funds from its platform. Crypto die-hards aren’t taking it too well, with some vowing to boycott the firm. The big deal: Congress avoided a government shutdown last week, but lawmakers remain deadlocked on a sweeping deal to overhaul the southern border and unlock aid to Ukraine. President Joe Biden said on Friday he is open to “massive changes” in US border policy, including to asylum laws, to secure a deal and release aid to its allies overseas. The president expressed confidence the Senate could “work out” an emerging bipartisan border compromise as soon as this week. The big thought: Black women in academia have filled national news headlines in recent weeks, from the ouster of Claudine Gay from Harvard University to the suicide of Lincoln University’s vice president of student affairs, Antoinette “Bonnie” Candia-Bailey. The potential for an exodus of Black leaders will have significant consequences on the lives of students and the future workforce, Anna Branch writes in Bloomberg Opinion. Enjoy your week. Thanks for reading. Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P.

2024-01-21 15:57:34+00:00

{"Bitcoin": [2576]}

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Dish Creditors Send Letter to Company Alleging Debt Swap Fraud

https://finance.yahoo.com/news/dish-creditors-send-letter-company-155734932.html

Bloomberg

https://www.bloomberg.com/

(Bloomberg) -- A group of Dish Network Corp. creditors sent a letter to the company’s board alleging that the satellite television provider’s restructuring plan is illegal, and threatening legal action if the deal isn’t reversed, according to people with knowledge of the situation. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hedge Funds Rake in Huge Profits Betting on Catastrophe Risk Gloom Over China Assets Is Spreading Beyond Battered Stocks Sony Sends Termination Letter to Zee Over India Merger Trump Retires ‘DeSanctimonious’ Insult After DeSantis Backs Him The creditor group, working with law firm Milbank, argued in the letter sent Friday that the company’s plan to swap nearly $10 billion of debt for new secured notes violates debtholder agreements, said the people, who asked not to be identified because the communications are private. The letter also alleges that Dish’s move to transfer prized collateral away from existing creditors could be considered fraudulent, and an illegal dividend. Read more: Dish Network’s Wireless Dream Turns Nightmarish for Creditors Such claims in controversial restructuring deals are increasingly ending up in court, where they can take months or years to be resolved. Dish creditors have been up in arms since earlier this month, when the struggling company moved assets including crown-jewel wireless spectrum licenses out of reach of existing bondholders. It later proposed exchanging $4.9 billion of convertible notes and $5 billion of bonds for new securities issued by its parent company EchoStar Corp. and backed by those licenses and 3 million television subscribers. The maneuvers sparked a widespread selloff in Dish’s debt and a wave of creditor organization. The Milbank group holds more than $10 billion of Dish debt, including a majority of the company’s 11.75% notes due 2027, according to the letter. A representative for Houlihan Lokey, which is advising EchoStar, declined to comment. Representatives for EchoStar and Milbank didn’t respond to requests for comment made outside of normal business hours. Story continues Bloomberg reported earlier this month that the Milbank group was examining legal options including sending a default notice to the company. Englewood, Colorado-based Dish has more than $20 billion of debt, and is seeking to extended upcoming maturities to give it more time to pivot its business toward wireless services. Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P.

2024-01-21 16:20:15+00:00

{"Bitcoin": [2479]}

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Stopping Houthi Ship Attacks Will Take Time, Biden Adviser Says

https://finance.yahoo.com/news/stopping-houthi-ship-attacks-time-162015921.html

Bloomberg

https://www.bloomberg.com/

(Bloomberg) -- US military action to deter Iranian-backed groups such as Yemen’s Houthi rebels will take time and the Biden administration “will have more to say about it soon,” Deputy National Security Adviser Jon Finer said. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hedge Funds Rake in Huge Profits Betting on Catastrophe Risk Gloom Over China Assets Is Spreading Beyond Battered Stocks Sony Sends Termination Letter to Zee Over India Merger Trump Retires ‘DeSanctimonious’ Insult After DeSantis Backs Him While hinting at unspecified additional measures, Finer’s comments on ABC’s This Week are broadly in line with President Joe Biden’s acknowledgment last week that Houthi missile and drone attacks on commercial shipping in the Red Sea are unlikely to stop immediately. “Deterrence is not a light switch,” Finer said Sunday. “We are taking down, we are taking out these stockpiles so they will not be able to conduct so many attacks over time. That will take time to play out.” Iran-backed militias are carrying out other attacks in the region, including one in a western Iraq on Saturday in which at least two US service members were injured. “You can be assured that we taking this extremely seriously and will have more to say about it soon,” Finer said. Tensions around the Middle East have steadily increased since Hamas’s Oct. 7 attack in southern Israel that killed about 1,200 people and Israel’s counterstrikes, which have killed more than 25,000 people in the Gaza Strip, according to the Hamas-run health ministry. US air strikes destroyed a Houthi anti-ship missile on Saturday that was prepared for launch into the Gulf of Aden, the latest action against the Yemen-based militants that have targeted Red Sea commercial traffic for weeks. The US and the UK are exploring ways to step up their campaign against the Houthis without provoking a broader war, with a focus on pre-emptive strikes and targeting resupply shipments from Iran, according to people familiar with the discussions. Read more: The Israel-Iran Shadow War Reaches a Risky New Phase: QuickTake “We totally reject the justification and the rationale that because there’s a conflict going on between Israel and Hamas in Gaza that entitles a group to take actions military actions against the entire global economy,” Finer said. Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P. View comments

2024-01-21 17:11:14+00:00

{"Bitcoin": [8718]}

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US Fourth-Quarter GDP to Crown Vigorous Second Half

https://finance.yahoo.com/news/us-fourth-quarter-gdp-crown-210000025.html

Bloomberg

https://www.bloomberg.com/

(Bloomberg) -- A likely moderation of US economic growth in the fourth quarter ended an otherwise solid stretch of activity over the final six months of 2023, feeding expectations the expansion will remain intact. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hedge Funds Rake in Huge Profits Betting on Catastrophe Risk Gloom Over China Assets Is Spreading Beyond Battered Stocks Trump Retires ‘DeSanctimonious’ Insult After DeSantis Backs Him Putin Orders Hunt for Property of Russian Empire, Soviet Union Economists project the government’s initial reading of gross domestic product — the sum of goods and services produced — to show an annualized 2% increase, according to the median estimate in a Bloomberg survey. That would follow the 4.9% third-quarter advance and mark the strongest back-to-back quarters of growth since 2021. At the same time, inflationary pressures are becoming less pronounced. A day after Thursday’s GDP figures, the government’s personal income and spending report is seen showing the Federal Reserve’s preferred gauge of underlying inflation rose 3% in the year ended in December, in what would be an 11th straight month of waning annual price growth. Slowing inflation has opened the door for US central bankers to lower interest rates this year, although many policymakers are reluctant to commit to such a move as early as March. Read More: Fed to Begin Rate Cut Discussions But Avoid Teeing First One Up While the Fed wants to guard against a re-acceleration of inflation, a further softening of price pressures risks making policy even more restrictive. Currently, the inflation-adjusted federal funds rate stands at its highest level since 2007, when the economy slipped into a recession. What Bloomberg Economics Says: “Our forecast implies brisk 2.7% growth for full-year 2023 GDP, up from 0.7% in 2022. But we think growth will slow meaningfully in the first half of this year given fast labor-market cooling and concerns about credit availability and the sustainability of consumer demand.” Story continues —Anna Wong, Stuart Paul, Eliza Winger and Estelle Ou, economists. For full analysis, click here Fed officials will observe a blackout period in the coming week ahead of their Jan. 30-31 policy meeting. For more, read Bloomberg Economics’ full Week Ahead for the US Friday’s income and spending figures are expected to show outlays, before adjusting for price changes, increased more in December than a month earlier. That would cap off a healthy holiday-shopping season and indicate demand had some momentum entering the new year. Further north, the Bank of Canada is widely expected to hold its benchmark overnight rate at 5% on Wednesday for a fourth straight meeting. And elsewhere, the European Central Bank and the Bank of Japan may focus investors watching for signs of the first rate move from each of them, while Turkey’s central bank could deliver the final hike of its cycle. Click here for what happened last week, and below is our wrap of what’s coming up in the global economy. Asia The BOJ meets as speculation over its first potential rate increase since 2007 gains momentum. None of the economists surveyed by Bloomberg expects a move this time, as authorities are still assessing the impact of a New Year’s Day earthquake in the nation’s northwest. Instead, the focus will fall on how Governor Kazuo Ueda describes progress toward achieving a positive wage-price cycle and any more signals of a hike in the spring. Japan gets trade statistics on Wednesday that may show exports rebounded in December, possibly putting the economy back into expansion in the fourth quarter. Tokyo consumer inflation ends the week. Elsewhere, China’s prime rates are expected to be left untouched at the start of the week, while 20-day export figures from South Korea will offer an early glimpse of global trade in January. Later in the week, South Korea’s economic growth is forecast to have accelerated in the fourth quarter. Australia releases business confidence on Tuesday and flash PMIs the following day. Read More: Australian House Price Growth Seen ‘Muted’ in 2024 Malaysia’s consumer inflation is seen steady at 1.5% in December with its central bank likely to keep rates unchanged on Thursday, and Singapore’s MAS also meets during the week. Thailand and the Philippines publish trade data, and China releases industrial profits on Saturday. That’s a day after the start of China’s Lunar New Year holiday season, which kicks off ahead of the official start of the year of the dragon in mid-February. The world’s second-biggest economy is gearing up for a record 9 billion trips during the period. For more, read Bloomberg Economics’ full Week Ahead for Asia Europe, Middle East, Africa The region’s highlight will be the ECB’s decision on Thursday. Officials, led by President Christine Lagarde, are set to keep rates unchanged at their first meeting of the year. The governing council appears to be converging around a likely rate cut in June, while markets show a two-in-three chance the first reduction will come in April. Lagarde’s comments will be scoured for any hints on the timing of that first move. The focus of economic data in the region will include initial readings of purchasing managers’ surveys of 2024 — due on Wednesday — with equivalent reports also coming out in the UK. Germany’s Ifo business sentiment will be published on Thursday, giving an indication of whether the contraction Europe’s largest economy endured in the fourth quarter is poised to end. Meanwhile, the European Commission is set unveil an economic security package, which will include new rules to increase powers to screen and potentially block foreign investment in sensitive industries. Another measure under consideration is the creation of a dedicated fund to boost the development of technologies that can serve both military and civil purposes. For more, read Bloomberg Economics’ full Week Ahead for EMEA Several other central bank meetings are scheduled throughout the rest of the region: On Wednesday, Ukrainian officials will announce their rate decision amid uncertainty over foreign financial aid. Norway’s central bank is expected to keep borrowing costs unchanged at 4.5% on Thursday and maintain its outlook for no cuts until autumn, after recent data backed its view of easing price pressures and a cooling economy. The same day in Turkey, analysts expect yet another rate hike that may mark the end of the tightening cycle as policymakers combat inflation of about 65%. The central bank is forecast to increase its benchmark one-week repo rate by 250 basis points to 45%. South African data on Wednesday, which may show inflation eased for a second straight month, are unlikely to persuade officials the next day to cut rates, which have been at 8.25% since May. Governor Lesetja Kganyago told Bloomberg TV that they first need to sees consumer price growth slowing sustainably. Neighboring Eswatini, whose currency is pegged to South Africa’s rand, may follow suit on Friday and hold its key rate at 7.5%. Malawi also meets for its first 2024 rate decision on Friday. Latin America On the inflation front, the region’s two biggest economies post mid-month consumer price readings. The early consensus is that Brazilian inflation slowed modestly from mid-December’s 4.72%, enough disinflation to keep Banco Central do Brasil in easing mode at its Jan. 30-31 rate meeting. Banco de Mexico can expect some good news after consumer prices ticked higher last month to end 2023 on a sour note, with analysts forecasting a return of disinflation in the early January data. Argentina is slated to post economic activity data for November and full-year budget results. Economists expect a modest contraction for the full year and see the budget gap hitting 5% of GDP. Looking ahead, President Javier Milei is aiming to balance the books in 2024 via tax measures and spending cuts. A busy week in Brazil includes full-year bank lending, tax collections, foreign direct investment and current account figures. Mexico also reports December and full-year trade results, along with November GDP-proxy figures, which may again show some of the slowing seen at the margins in the October data. The unemployment rate last month likely held below 3% amid a rapid run-up in worker wages. For more, read Bloomberg Economics’ full Week Ahead for Latin America --With assistance from Brian Fowler, Patrick Donahue, Ott Ummelas, Andrew Davis, Robert Jameson, Monique Vanek, Paul Wallace and Laura Dhillon Kane. Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P.

2024-01-21 18:00:00+00:00

{"Bitcoin": [3908]}

{}

Tide May Turn for NZ Dollar as Bets on Interest Rate Cuts Pared

https://finance.yahoo.com/news/tide-may-turn-nz-dollar-180000574.html

Bloomberg

https://www.bloomberg.com/

(Bloomberg) -- The worst may be over for the New Zealand dollar as higher dairy prices and a push-back of interest rate cuts by the nation’s central bank should support the currency. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hedge Funds Rake in Huge Profits Betting on Catastrophe Risk Gloom Over China Assets Is Spreading Beyond Battered Stocks Sony Sends Termination Letter to Zee Over India Merger Trump Retires ‘DeSanctimonious’ Insult After DeSantis Backs Him The kiwi may recover toward 62 US cents by March-end as traders abandon bets of a May rate cut, according to forecasts. The currency can reach “the mid-60’s” should the Federal Reserve ease policy before the Reserve Bank of New Zealand, Westpac Banking Corp. analysts wrote in a note. The currency closed at 61.13 cents on Friday. Markets are now pricing an almost 80% chance the RBNZ eases rates in May - less than expectations at the start of January, while economists at ASB Bank Limited and ANZ Bank New Zealand Limited expect the first cut in August at the earliest. That makes this week’s inflation print “very important” for the kiwi’s direction after a pickup in business sentiment suggests the economy is getting a second wind, said David Croy, a rates strategist at ANZ in Wellington. “The market has overcooked things to the downside for NZ rates and the NZ dollar, so the kiwi’s probably not far from finding a base,” Croy said. “Sure, cuts are coming, but markets are banking on May and that seems too soon.” READ: ANZ Bank Now Expects RBNZ Rate Cut in August as Inflation Slows Relief may also come from rising milk prices, which support the nation’s terms of trade. Global dairy prices have soared since August, leading ASB to lift its forecast for milk solids. It sees dairy, New Zealand’s biggest export, outperforming despite major importer China buying low volumes. To be sure, the currency still isn’t without risks as the greenback may continue to strengthen as Fed cuts are pushed back. Inflation may also undershoot RBNZ’s forecast, Bloomberg Economics said, while New Zealand’s economy may enter a technical recession in the first half of the year. Story continues That’s led Candriam UK Establishment to short the kiwi with a view that New Zealand could be the first developed nation to start cutting interest rates. “It’s possible the RBNZ could cut in April, as far as I’m concerned,” says Jamie Niven, senior fixed-income fund manager at the €140 billion ($152 billion) investment firm. The central bank will maintain restrictive rate settings for as long as it takes to push inflation below 3%, said Mark Smith, a senior economist at ASB. Headline inflation is expected to slow to 4.7% from 5.6% in the three months to December, according to a Bloomberg survey, above the midpoint of the RBNZ’s 1%-3% target range. “It would take a large deflationary shock for the OCR to move lower before the first half of 2024 and we expect a sequence of gradual OCR cuts to begin from the second half of this year - likely August,” Smith wrote in a note. “If, however, progress in lowering inflation stalls, OCR cuts could be delayed until 2025,” he added, referring to the policy rate. Here are the key Asian economic data this week: Monday, Jan. 22: South Korea trade, China 1-year and 5-year loan prime rates, Hong Kong inflation, Malaysia inflation Tuesday, Jan. 23: South Korea PPI, Australia NAB business confidence, Singapore inflation, Bank of Japan policy decision Wednesday, Jan. 24: South Korea consumer confidence, NZ inflation, Japan trade, Malaysia policy rate Thursday, Jan. 25: South Korea GDP, Hong Kong trade Friday, Jan. 26: Tokyo inflation, Japan PPI, Philippine trade, Singapore industrial production --With assistance from Naomi Tajitsu. Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P.

2024-01-21 19:01:00+00:00

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Why Cathie Wood Believes Bitcoin's Upcoming "Halving" Will Redefine the Crypto Market in 2024

https://finance.yahoo.com/news/why-cathie-wood-believes-bitcoins-190100799.html

Motley Fool

http://www.fool.com/

The upcoming halving of mining rewards in the Bitcoin (CRYPTO: BTC) network is not like the others. Ark Invest mastermind Cathie Wood found a game-changing quality in this fundamental update that sets it apart from the first three. Will this unique event make Bitcoin a better long-term storage system for wealth than investing in gold ? Let's have a look. What Cathie Wood said In a recent video interview with Yassine Elmandjra, Ark Invest's director of digital assets, Wood unveiled a rarely discussed detail of Bitcoin's next halving event that could change the game for the cryptocurrency market: The rate of growth in supply is going to be cut in half to just under 1% per year. If you compare this to gold, the gold supply has increased on average roughly 1% per year. Bitcoin's supply growth is going to drop below that. (Lightly edited for readability) Why is this insight so important? It goes back to the famous notion of prices in a free market reflecting the balance between supply and demand. Gold is traditionally seen as a great value-storage tool due to its limited supply and fairly slow rate of new production. But now, for the first time, Bitcoin's supply side rate of growth will suddenly drop below the inflation pace of gold. "The steady addition of a constant amount of new coins is analogous to gold miners expending resources to add gold to circulation," according to the Bitcoin whitepaper that defines how this cryptocurrency works. "In our case, it is CPU time and electricity that is expended." So the self-styled "open-source peer-to-peer money," or digital gold, finally plays the part for which it was designed. That sure sounds like a game-changing event. Bitcoin's gold-like stability Bitcoin's limited supply is hardly a secret. In fact, its lifetime limit of 21 million digital coins is often held up as a reason to invest in this digital paragon of long-term stability. Story continues 19.6 million of those tokens have already been mined, leaving less than 7% of the total supply for future mining efforts. With a halving of the mining rewards scheduled at roughly four-year intervals, the rate of Bitcoin growth will only slow down more in 2029, 2033, and beyond. The last Bitcoin should be mined somewhere around the year 2140. After that, mining rewards will consist of transaction fees alone. This extremely long-term plan is hard-coded into Bitcoin's software. Changing these growth-limiting parameters would require an overwhelming agreement among the supply side stakeholders to sacrifice the fiscal stability of their own assets -- an improbable event, especially if Bitcoin actually evolves into a ubiquitous digital alternative to gold. The impact of the next Bitcoin halving So far, Bitcoin's halvings have always heralded a sharp increase in the cryptocurrency's price. For instance, one Bitcoin was worth $12 on the first reward cut in 2012. One year later, the price peaked at $1,170 before backing down again. The 2016 halving sent Bitcoin prices from $640 to $19,650 in 17 months. The latest reduction in mining rewards took place in May 2020 at a price of $8,600. 18 months later, that price cycle topped out at $67,500. Past performance is no guarantee of future results, but Bitcoin breaks that rule of thumb in some ways. The halvings are quite predictable. They will happen roughly every four years, radically changing the economics of Bitcoin mining each time. The mining process serves a crucial purpose in the processing of Bitcoin transactions. Without it, the blockchain grinds to a halt. Therefore, the whole system makes sense only as long as miners receive enough rewards to run a successful business. And when the mining rewards are cut in half, a steady consumption of processing cycles and electric power will produce half as many Bitcoin tokens. Bitcoin miners would go out of business if prices don't rise over time. Therefore, halvings almost inevitably lead to higher Bitcoin prices. It's not the only factor in play when market makers determine Bitcoin's real-time price, but arguably the most important and predictable pattern-making tool on the encrypted table. The inevitability of this trend will only break if Bitcoin itself goes out of fashion and shuts down. So, the pattern of dramatic price increases in the months after each halving will continue as long as Bitcoin has a future. And the next halving may indeed be different, as the inflation rate below gold's annual production increase suggests a game-changing level of value-guarding stability. The crypto market as a whole, and Bitcoin in particular, still faces numerous headwinds and challenges. The progress of digital currencies can stumble on legal and regulatory roadblocks, on slow uptake of crypto-based services in the consumer market, and on unexpected technology jumps, just to name a few potential game-breakers. But the steady rhythm of scheduled mining-reward halvings will continue regardless, resulting in rock-solid stability or the end of the Bitcoin world. Image source: Getty Images. Bitcoin deserves a modest investment today I expect the Bitcoin community to address and overcome these inevitable challenges as they come along. The supply side looks solid, as long as the global market can generate a steady or rising amount of demand for this digital asset. In the long run, I see tremendous value in the large-scale adoption of digital currencies and blockchain networks, and Bitcoin is the 800-pound gorilla to beat in this sector. So I suggest adding some Bitcoin exposure to your investment portfolio, but I'm not going all-in on cryptocurrency quite yet -- just in case the ambitious gold-replacement plan doesn't work out. Should you invest $1,000 in Bitcoin right now? Before you buy stock in Bitcoin, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Bitcoin wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*. See the 10 stocks *Stock Advisor returns as of January 16, 2024 Anders Bylund has positions in Bitcoin. The Motley Fool has positions in and recommends Bitcoin. The Motley Fool has a disclosure policy . Why Cathie Wood Believes Bitcoin's Upcoming "Halving" Will Redefine the Crypto Market in 2024 was originally published by The Motley Fool

2024-01-21 19:30:00+00:00

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Hedge Funds Rake in Huge Profits Betting on Catastrophe Risk

https://finance.yahoo.com/news/hedge-funds-rake-record-profits-010000192.html

Bloomberg

https://www.bloomberg.com/

(Bloomberg) -- For hedge funds, the science of catastrophes helped generate the best returns of any alternative investment strategy last year. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hedge Funds Rake in Huge Profits Betting on Catastrophe Risk Gloom Over China Assets Is Spreading Beyond Battered Stocks Sony Sends Termination Letter to Zee Over India Merger Trump Retires ‘DeSanctimonious’ Insult After DeSantis Backs Him The calculus around natural disasters such as hurricanes and cyclones fed record gains at funds managed by firms including Tenax Capital, Tangency Capital and Fermat Capital Management. All three delivered results that were more than double an industry benchmark, according to public filings, external estimates and people familiar with the funds’ numbers. Behind those record returns were bold bets on catastrophe bonds and other insurance-linked securities. So-called cat bonds are used by the insurance industry to shield itself from losses too big to cover. That risk is instead transferred to investors willing to accept the chance that they may lose a part of — or all — their capital if disaster hits. In exchange, they get rewarded with outsize profits if a contractually pre-defined catastrophe doesn’t occur. Last year, everything came together for those investors in a uniquely profitable cocktail. “I don’t think we’ve seen a market like this since cat bonds were born in the 1990s,” said Toby Pughe, an analyst at Tenax. The London-based hedge fund’s portfolio of about 120 of the securities delivered an 18% return last year. The best hedge fund strategy of 2023 was a bet on insurance-linked securities (of which catastrophe bonds are the dominant sub-category), which generated over 14%, according to Preqin, a consultancy that provides data on the alternative asset management industry. Preqin’s benchmark return for the industry — across strategies — was 8%. That compares with a 19.7% gain in the Swiss Re Global Cat Bond Performance Index Total Return. Story continues Cat bond issuance has been turbo-charged by concern about extreme weather events fueled by climate change, and by decades-high inflation that’s added to the cost of rebuilding after natural disasters. But the seeds of 2023’s record cat-bond performance were planted several years ago. The securities were generally a dud bet as recently as 2017, when several large hurricanes slammed into the US and investors were called on to cough up the cash needed to cover property losses. Returns were also underwhelming in 2019 and 2020. Then, hurricane Ian hit Florida in September 2022. Ian was the most destructive storm in the state’s history, causing $100 billion in losses of which only 60% was insured, according to Munich Re. The event led insurers to shift more of the risk on their books to the capital markets. And with much higher reconstruction costs amid rampant inflation, the stage was set for the market for cat bonds to come roaring back. “The increase in insured values on the residential side went from 8% to 20%,” said Jean-Louis Monnier, global head of insurance-linked securities at Swiss Re. “Insurance companies needed to buy more cover.” In 2023, cat bond issuance reached an all-time high of $16.4 billion, including non-property and private transactions, according to Artemis, which tracks the market for insurance-linked securities. Those deals brought the total outstanding market to a record $45 billion, it estimates. To mop up the influx of newly-issued risk, cat bond investors demanded — and received — much bigger returns. Spreads — the premium over the risk-free rate that investors get paid to take on “catastrophe” risk — reached a high in early 2023. Returns were then amplified by a relatively benign US hurricane season, meaning fewer trigger events and more money for investors. Greg Hagood, co-founder of Nephila Capital, a $7 billion hedge fund specializing in reinsurance risk, said that last year’s spreads “were probably the highest they’ve been in my career, relative to the risk we’re taking.” Dominik Hagedorn, co-founder at Bermuda-based Tangency Capital, said hedge fund interest in insurance-linked securities has picked up “quite significantly” over the past 12 to 18 months. “Given where the spreads are at the moment, I wouldn’t be surprised if that stayed like that for another year or so,” he said. The impact of global warming on weather patterns is a key feature of cat bond modeling, with recent changes setting the stage for new patterns of loss. Karen Clark, a pioneer in modeling catastrophe risk, says there is increasing market interest in so-called secondary perils, such as severe convective storms, winter storms and wildfires, because that’s where the demand and opportunities are. “Climate change is having the biggest impact on wildfires,” where individual events will lead to losses ranging from $10 billion to $30 billion, said Clark, co-founder of Boston-based Karen Clark & Co. “That’s where the cat bond market can grow.” And earlier this month, Munich Re’s chief climate scientist, Ernst Rauch, said insurers are having to rethink how to classify storms. “We used to refer to regional thunderstorms as secondary perils because they only cause small or medium-sized damage on their own,” according to Rauch. “But as the number of thunderstorms increases, we have to think about a new classification.” Brett Houghton, a managing director at Fermat, which delivered about 20% last year on its roughly $10.8 billion of assets, said that such secondary perils are a good way to “help diversify your portfolio.” He also said they remain hard to model, which means they come with “some uncertainty.” Cat bonds are also expanding to include new kinds of risk. Last year marked the first time investors in public markets were able to buy exposure to cyber-catastrophe bonds, which corporate executives now rate as one of their most feared external threats. Cyber cat bonds “were a big success in 2023,” said Monnier of Swiss Re. “There’s still a limited subset of investors that can invest in cyber, but I think the next step will be a broadening of acceptance” from Wall Street. Global cat bond capacity has grown at about 4% annually for the past six years — adjusted for inflation — which is roughly in line with the growth of natural catastrophe exposures, according to Swiss Re Institute. Globally, ILS capital reached about $100 billion at the end of the third quarter of 2023, insurance broker Aon Plc estimates. Cat bond investors hoping for another record year should note that inflows have tightened spreads, according to Hagedorn at Tangency. And Tenax reckons its return on cat bonds this year may be around 10% to 12%, compared with last year’s 18%. That’s assuming 2024 is another “no loss year,” meaning there’s no natural disaster big enough to trigger the bonds’ carefully worded payment clauses. “I can’t tell you if there’s going to be a hurricane or earthquake this year, obviously,” said Hagood of Nephila Capital. “But what I can tell you is spreads are near historical highs in the sector. So broadly speaking, we believe the market is being well paid for the risk.” --With assistance from Nishant Kumar, Janet Paskin and Stephan Kahl. (Adds Munich Re comment about secondary perils, in 20th and 21st paragraphs.) Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P.

2024-01-21 19:49:00+00:00

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1 Unstoppable Crypto to Buy Hand Over Fist

https://finance.yahoo.com/news/1-unstoppable-crypto-buy-hand-194900761.html

Motley Fool

http://www.fool.com/

Bitcoin may be getting all the headlines in the crypto industry these days, but there are plenty of other cryptocurrencies that have the potential to outperform it this year, including Solana (CRYPTO: SOL) . Solana started 2023 trading around $10, and ended the year trading around $100 after briefly hitting a peak around $120 in late December. While it will be difficult to duplicate that performance in 2024, there are two big reasons why I think Solana is exactly the type of crypto that you should be buying hand over fist right now. Solana is the next Ethereum Most importantly, Solana is finally starting to fulfill its promise as "the next Ethereum ." Ethereum is still the acknowledged market leader in nearly every blockchain niche, from non-fungible tokens (NFTs) to decentralized finance (DeFi). But Solana now appears to be gaining market share at Ethereum's expense. At the end of last year, for example, Solana started to post higher NFT sales volume and decentralized exchange trading volume than Ethereum for the first time ever. And I think that momentum will carry over into 2024. High-profile institutional investors are starting to buy into this narrative of Solana as "the next Ethereum." Cathie Wood of Ark Invest, for example, appeared on CNBC at the end of the year, extolling the virtues of Solana as a faster, more cost-effective version of Ethereum. As this investment thesis gains momentum, it could lead to more institutional investors putting their money into Solana. At the end of last year, CoinShares (which tracks crypto inflows and outflows) found that institutional investors were moving money out of Ethereum and into Solana. That's obviously going to help push up the price of Solana. Solana's mobile strategy is taking off For the past 18 months, Solana has been working on a mobile crypto strategy. It all started back in June 2022, when Solana announced it was working on a "crypto phone" that would be optimized for Solana blockchain users. That was followed up by the official launch of the Saga smartphone priced at $1,000 in April 2023. And now, in January 2024, Solana appears ready to launch a second, more budget-friendly version of the Saga. Story continues Image source: Getty Images. It's easy to see how physical hardware products such as the Saga could spark long-term growth for Solana. They could lead to more developers migrating over to the Solana blockchain ecosystem and the launch of hardware products could be a fantastic way to onboard "crypto-curious" people who have a difficult time conceptualizing blockchain technology. Products such as the Saga could eventually become a pathway to onboard millions of new users into the world of Web3 and decentralized applications. The big question, of course, is whether the world really needs a $1,000 smartphone that is optimized for crypto. The major selling point of the Saga was the inclusion of a crypto wallet within the phone itself. That's great if you're buying and selling NFTs, or if you're regularly buying and selling crypto tokens on decentralized crypto exchanges. But if you're an average user, it's easy to see why you might not want to replace your current smartphone anytime soon. Will this Bitcoin diversion last? The launch of the new spot Bitcoin exchange-traded funds (ETFs) could have broad ramifications beyond just Bitcoin. They could significantly impact the amount of new money that flows into Solana. In the first two weeks of 2024, the flow of money into Solana has slowed to a drip. According to CoinShares, around the time of the spot Bitcoin ETF launch, Bitcoin accounted for a staggering 98% of all investor inflows into crypto. Maybe this is a short-term phenomenon. But what if it's not? For that reason, I'm keeping a close eye on institutional inflows into Solana over the next few weeks. All in all, Solana looks good And, of course, there are many investors convinced that Ethereum will be able to fend off any advances from Solana and retain its position as the preeminent Layer-1 blockchain. There's also hype now building around a potential spot Ethereum ETF. If that ever gets approved, the thinking goes, it could have the same type of impact on Ethereum as the spot Bitcoin ETF has had on Bitcoin. That being said, I'm still convinced that Solana is now a better long-term play than Ethereum. Solana has superior technology, as well as a potential game changer in mobile crypto. As a result, I'm bullish on Solana. Should you invest $1,000 in Solana right now? Before you buy stock in Solana, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Solana wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*. See the 10 stocks *Stock Advisor returns as of January 8, 2024 Dominic Basulto has positions in Bitcoin and Ethereum. The Motley Fool has positions in and recommends Bitcoin, Ethereum, and Solana. The Motley Fool has a disclosure policy . 1 Unstoppable Crypto to Buy Hand Over Fist was originally published by The Motley Fool

2024-01-21 23:00:00+00:00

{"Bitcoin": [3252]}

{}

Thai SEC Tightens High-Yield Bond Oversight as Investment Drops After Defaults, Stark Scandal

https://finance.yahoo.com/news/thai-sec-tightens-high-yield-230000916.html

Bloomberg

https://www.bloomberg.com/

(Bloomberg) -- Thailand’s Securities and Exchange Commission is stepping up supervision of high-yield bonds to boost payment safeguards and investor confidence after several recent defaults and a major accounting scandal rocked the the market for speculative debt, a senior official said. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hedge Funds Rake in Huge Profits Betting on Catastrophe Risk Gloom Over China Assets Is Spreading Beyond Battered Stocks Sony Sends Termination Letter to Zee Over India Merger Trump Retires ‘DeSanctimonious’ Insult After DeSantis Backs Him The SEC is now pro-actively contacting companies as soon as information or news emerges that the regulator views as potentially affecting the ability to service high-yield debt, Secretary-General Pornanong Budsaratragoon said in an interview. Previously, the agency was less active in contacting executives, though it regularly reached out to bond issuers at least three months before their notes expired, she said. Demand for high-yield debt in Thailand has waned after series of payment delays and corporate scandals, including one related to Stark Corp. These sparked calls by investors for more market supervision and monitoring. Thai financial authorities are prepared to implement “appropriate measures” to manage distressed fixed-income debt, the Finance Ministry said earlier this month. “We are trying to prevent any more big surprises that could catch us off guard,” Pornanong said at her office. “Tightening our monitoring efforts should provide more early warning signals on some companies with payment trouble.” Thailand’s corporate bond sales may drop for a second-straight year partly because of concerns related to rising defaults, according to the Thai Bond Market Association. Investors have become more cautious about subscribing to bonds sales of high-risk companies after a series of missed payments, the trade group said. Story continues Italian-Thai Development Pcl on Wednesday won bondholders’ approval to extend the maturity dates for most of its outstanding bonds by another two years amid a liquidity crunch, but the engineering firm had to schedule another meeting because the vote on one tranche lacked a quorum. JKN Global Group Pcl, a media company that owns the Miss Universe beauty-pageant brand, in November petitioned a court for debt restructuring, two months after announcing its inability to fully honor its bond repayments. Pornanong said the SEC, as part of its monitoring boost, will put additional attention on bonds of companies with no credit rating or low grades by requiring more disclosure on financial data, such as cash flow and other ratios. The new requirements are expected to be implemented in the next few months, she said. The slump in high-yield corporate bond sales was a key reason for the 19% decline in total domestic debt sales in 2023, according to data compiled by the TBMA. Companies with junk ratings or no credit assessments sold 92 billion baht ($2.6 billion) of bonds last year, a 29% drop from a record 130 billion baht in 2022, the data show. Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P.

2024-01-21 23:02:39+00:00

{"Bitcoin": [3029]}

{}

Japan Post Joins Insurers Delaying Bond Buying on Lower Yields

https://finance.yahoo.com/news/japan-post-joins-insurers-delaying-230239718.html

Bloomberg

https://www.bloomberg.com/

(Bloomberg) -- Japan Post Insurance Co. is joining other major life insurers in holding off from buying domestic sovereign bonds until yields rise, as speculation lingers that the world’s last sub-zero interest rate policy will end later this year. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hedge Funds Rake in Huge Profits Betting on Catastrophe Risk Gloom Over China Assets Is Spreading Beyond Battered Stocks Sony Sends Termination Letter to Zee Over India Merger Trump Retires ‘DeSanctimonious’ Insult After DeSantis Backs Him Fukoku Mutual Life Insurance Co. and Meiji Yasuda Life Insurance Co. also said last week that they’re avoiding bond purchases for similar reasons. That’s increasing concern that demand will falter at auctions of super-long debt as life insurers are major buyers of these tenors. The Ministry of Finance plans to auction ¥700 billion ($4.7 billion) of the nation’s longest-dated sovereign securities maturing March 2063 on Thursday. The sale will come after demand was weak at offerings of 10-year and 30-year debt this month as lower yields reduced the allure of fixed-income securities. Japan’s 30-year yield has dropped to 1.77% on Friday from a decade high of around 1.9% on Nov. 1. “It is possible to see the 30-year yield rising above 1.8% in the current quarter by pricing in the removal of the negative rate policy,” Hiroyuki Nomura, senior general manager of investment planning department, said in an interview on Friday. “Should the yield climb to attractive levels, we can move up the schedule for next fiscal year and accelerate purchases,” he said. “But we are not planning to buy super-long debt at lower yield levels when the nation is about to change the course of monetary policy.” Local debt yields are facing downward pressure as major overseas monetary authorities including the Federal Reserve and European Central Bank are expected to start cutting interest rate this year. The Bank of Japan is widely expected to stay on hold at a meeting this week, although most economists forecast it will abandon sub-zero rates in 2024 as inflation remains high. Consumer prices gained 2.6% on year in December, staying above the target of 2% since April 2022, according to official data released Friday. The central bank will probably scrap negative rates in April, though “I don’t deny such possibility in March,” Nomura said. A move above zero rate requires the government’s declaration of the end of the deflationary era, which would still take time, he said. Swap markets currently price in less than a 10% chance of a 25-basis-point rate hike at a January meeting and 44% probability in April. That compared with a 57% chance in January and 100% in April, according to prices on Nov. 1, around when yields reached their recent peak. US 10-year benchmark yields also hit a 16-year high late October. Story continues Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P. View comments

2024-01-21 23:30:00+00:00

{"Bitcoin": [6199]}

{}

Asia Hedge Fund Founders Shut Shop for Big Pay at Global Giants

https://finance.yahoo.com/news/asia-hedge-fund-founders-shut-233000991.html

Bloomberg

https://www.bloomberg.com/

(Bloomberg) -- Hedge fund founders in Asia are jumping ship to global giants from Citadel to Millennium Management as the struggles of capital raising and pressure to make higher returns curb the attractiveness for some managers’ solo endeavors. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hedge Funds Rake in Huge Profits Betting on Catastrophe Risk Gloom Over China Assets Is Spreading Beyond Battered Stocks Sony Sends Termination Letter to Zee Over India Merger Morgan Stanley, JPMorgan Say Buy the Dip After Treasury Rout Torq Capital Management Chief Investment Officer Avinash Abraham is closing his firm to rejoin Citadel as a portfolio manager, while macro manager Ayan Sen returned to Millennium this year, marking the end of his more than five-year stint running his own Navik Capital (Singapore), Bloomberg has reported. Smaller hedge fund firms are facing a difficult capital-raising environment and an increasingly costly war for talent. While there have always been isolated cases and it’s too early to know how many more will follow, high interest rates have driven up expected returns and are forecast to tilt more Asia-based hedge fund entrepreneurs in favor of embracing the bigger global so called pod firms, or platforms. “It’s just hard to get investors on board, harder now than it has been for a long, long time, because so many investors just pile the money into platforms,” said John Mullally, Hong Kong managing director of recruiting firm Robert Walters. While some industry followers were surprised when former Balyasny Asset Management Asia head Abraham announced he was shutting up shop in his December newsletter, others before him have made similar moves. Panich Prompat, now a portfolio manager at Dymon Asia Capital, joined Millennium in 2021 after running his firm for three years. Citadel in 2020 hired back Nick Taylor, who set up his own event-driven hedge fund in Hong Kong after an earlier stint with Citadel. Story continues In the three quarters ending June 2023, hedge fund closures in the region outstripped new starts by at least two to one, according to Preqin Ltd. estimates. There were still more funds shutting than opening in the third quarter of 2023, even as the gap narrowed. Abraham began his investment career as an analyst at Och-Ziff Capital Management, honed his skills at Citadel between 2005 and 2009 before his seven-year Balyasny stint, according to his LinkedIn profile and regulatory records. He founded Torq in Hong Kong in 2016 and won the backing of Blue Pool Capital, which invested billions of dollars for wealthy clients including Alibaba Group Holding Ltd. co-founders Jack Ma and Joseph Tsai. Torq declined to comment further. From a modest beginning of $160 million, Torq expanded assets to a peak of $1.5 billion in the first quarter of 2022. But the firm struggled to recover after a 3.7% loss that year, despite topping the 16.5% slump in a Eurekahedge index of Asia-Pacific stock hedge funds and the fund’s small gain in 2023. Investors once favored hedge funds of a moderate size that specialize in a single strategy and charge lower fees. Fledgling funds often produce superior returns, due to their ability to trade in and out of positions unnoticed, as well as explore profitable opportunities too small for larger rivals. In recent years, however, allocators like pensions and foundations have increasingly gravitated toward large firms whose diverse investment pods help churn out consistent returns, even in market downturns. Since 2017, 55 pod shops have nearly tripled their combined assets to $368 billion, during a period of tepid growth for the rest of the global industry, according to a September report from Goldman Sachs Group Inc. prime brokers. Armed with fresh money and often an ability to pass on some or all expenses to clients, those firms hired aggressively to maintain their edge. They now command 27% of global industry headcount, the Goldman Sachs report showed. In Hong Kong, licensed employees of 10 pod shops surged to 596 by Jan. 12, almost three times the 2019 figure, according to Webb-site.com, which aggregates data from the local securities regulator. Their expansion has been increasing industry pay pressure. Industry veteran and chief executive officer of PAG, Chris Gradel, says some staff from its hedge fund platform business were poached by rivals with eight-figure signing bonuses. Outside direct rivals and banks, the likes of Torq and Pinpoint Asset Management Ltd. have been primary hiring targets, as funds that trade with carefully balanced long and short wagers have historically been a small subset of the Asian industry. Two portfolio managers who were among Torq’s most senior investors from its early days departed for such rivals in the past year. Martin Kronborg was poached by Millennium and Sojiro Konishi is heading to Balyasny, according to the regulatory registry and a previous Bloomberg report. Performance Scrutiny With muted recent performances and senior staff departures, Torq’s assets fell to $693 million, according to the newsletter. In 2019, it abandoned a fee model that passed on some expenses to investors in favor of a 1.7% management fee and 20% performance levy. That meant it would have to dig into its own pocket or raise capital to sweeten compensation packages. Investors are now expecting higher returns from smaller hedge funds. The yield on 90-day Treasury bills — an indicator of what investors can earn from cash, instead of parking money with hedge funds — touched a more than two decade high in October and lingers above 5%. Pod shops are notorious for their high staff turnover. Many job candidates still prefer single-manager hedge funds with bottom-up research styles, longer investment holding periods and job security, said Mullally. Still, “there is a certain degree of inevitability that there will be fewer single-manager shops launched,” he added. “You will see some other single-manager shops inevitably find that it’s just too difficult to lift over time.” Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P.

2024-01-21 23:30:00+00:00

{"Bitcoin": [5926]}

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BOJ to Hold as Market Seeks Hints on Inflation Progress Needed to End Negative Rates

https://finance.yahoo.com/news/boj-hold-market-seeks-lift-233000290.html

Bloomberg

https://www.bloomberg.com/

(Bloomberg) -- The Bank of Japan is expected to keep its main monetary policy settings steady Tuesday, with attention focused on how Governor Kazuo Ueda assesses progress made toward achieving the sustainable inflation needed for ending the negative interest rate. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hedge Funds Rake in Huge Profits Betting on Catastrophe Risk Gloom Over China Assets Is Spreading Beyond Battered Stocks Sony Sends Termination Letter to Zee Over India Merger Morgan Stanley, JPMorgan Say Buy the Dip After Treasury Rout All 51 BOJ watchers in a Bloomberg poll expect the bank to keep its short-term policy rate at -0.1% and leave the parameters of the yield curve control program intact at the two-day board meeting. With growing signs of solid wage growth this year, Ueda’s remarks on the degree of “certainty” of achieving the bank’s price goal will be closely scrutinized at a post-decision press conference. The meeting takes place after economists ruled out the chances for an end to the world’s last negative rate this month in the wake of a major earthquake on New Year’s Day and Ueda’s dovish remarks at the end of December. Also, with Prime Minister Fumio Kishida facing a deepening slush-fund scandal, economists say this doesn’t seem to be the best moment for Japan’s first rate hike since 2007. “The BOJ is already all set to scrap the negative rate, and it’s a question of when,” said Nobuyasu Atago, chief economist at Rakuten Securities and a former BOJ official. “There is no need to rush at the time of a disaster, and it’s most natural to ditch it at the April policy meeting.” Most economists agree, as 59% of BOJ watchers share that view. By that point, the central bank will have been able to study the initial results of highly anticipated spring wage talks. Moreover, a new Tankan business survey, fresh results of hearings by branch managers and several additional sets of CPI figures will give officials more data to reference in explaining any move. BOJ officials have been encouraged by growing signs of wage gains after some big businesses pledged larger raises this year. While the officials still see uncertainties over pay trends at the small firms that employ the bulk of Japan’s company workers, they’re generally optimistic about the outlook for wages, people familiar with the matter said. Read More: Ueda’s Signaling in Focus as BOJ Mulls Timing of Rate Hike That points to a chance of Ueda striking a brighter tone on the probability of attaining sustainable inflation. The chief has said in recent appearances that the certainty of hitting the 2% inflation goal has risen gradually. If that wording were to change even subtly it could trigger sharp moves in financial markets. Story continues With market players easing their expectations for a rate cut by the Federal Reserve this year, the yen has once again begun retreating after a short-lived rally that started in November. If the currency weakens too much, it would drive up import costs and exacerbate household budget concerns. Ueda probably will avoid sounding too dovish in order to help put a floor under the currency. The BOJ usually releases its policy decision and outlook report around noon, followed by Ueda’s press conference at 3:30 p.m. What Bloomberg Economics Says... “Signals from Governor Kazuo Ueda suggest the BOJ will stand pat until it determines that spring pay talks (shunto) between unions and business leaders starting in March lead to wage raises that boost prices sufficiently to secure its goal of 2% inflation.” — Taro Kimura, economist Click here to read the full report. Another key focus will be updated quarterly economic projections. The bank is likely to discuss cutting its forecasts for economic growth and a gauge of inflation due to a drop in oil prices even as their overall assessment of price trends stays intact, people familiar with the matter told Bloomberg earlier this month. That indicates changes wouldn’t much influence how they think about the path of monetary policy. Authorities are of the view that their price projections are already high enough to justify a policy change by being around 2% or higher, and their focus now is on whether the outlook for sustained inflation is sufficiently certain, people familiar the matter said. Other key factors to watch: Ueda has made it clear he won’t directly hint at potential policy shifts at meetings. He reckons market participants can anticipate moves to a certain extent by parsing the BOJ’s economic assessments. Any brighter signs for price growth would indicate the bank is closer to a rate hike. Ueda’s expectations for the result of the spring wage talks are a vital point to monitor. Eiji Maeda, former BOJ executive director, predicts the outcome will surpass last year’s results, when unions won pledges for the highest increases in three decades. The BOJ is expected to revise its projection for consumer prices excluding fresh food lower to around 2.5% from 2.8%. Analysts will study how the bank characterizes any revision. Ueda could highlight the positive aspects, noting that subsiding cost-push inflationary pressure increases households’ purchasing power. Inflation forecasts that exclude fresh food and also energy may be more useful to gauge the BOJ’s view on underlying price trends. Those estimates are expected to be more or less unchanged. Investors are watching for comments on the impact of the 7.6 magnitude tremor that struck northwest Japan. Ueda is likely to indicate no considerable economic effects observed so far, as the bank continues to monitor the situation. The bank is likely to extend a lending program again in light of its continued efforts to support lending activity to aid the economic recovery. Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P. View comments

2024-01-21 23:57:39+00:00

{"Bitcoin": [1886]}

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Australian Tycoon Forrest Shuts Nickel Mines After Prices Crash

https://finance.yahoo.com/news/australian-tycoon-forrest-shuts-nickel-235739662.html

Bloomberg

https://www.bloomberg.com/

(Bloomberg) -- Wyloo Metals Pty Ltd., the private nickel producer owned by billionaire Andrew Forrest, is shutting down its Western Australian mines due to a sharp slump in prices for the key transition metal. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hedge Funds Rake in Huge Profits Betting on Catastrophe Risk Gloom Over China Assets Is Spreading Beyond Battered Stocks Sony Sends Termination Letter to Zee Over India Merger Morgan Stanley, JPMorgan Say Buy the Dip After Treasury Rout The mines near Kambalda will go into care and maintenance from May 31, the company said in a statement on Monday. Wyloo, which bought the mines only six months ago, informed BHP Group Ltd. that it won’t be able to fulfill a nickel off-take agreement that’s due to expire at the end of 2025, a spokesperson added. Prices for nickel — used to make stainless steel and EV batteries — have slumped in the past year, mainly driven by a flood of cheap supply from Indonesia that’s threatening to disrupt the industry. Earlier this month, First Quantum Minerals Ltd. said it will halt mining at its nickel and cobalt operation in Australia and cut a third of the workforce in response to weaker metal prices and higher costs. The closure of Wyloo’s Kambalda mines comes after BHP, the world’s biggest miner, last week warned it could be forced to write down the value of its nickel to mitigate the crash in prices. Wyloo, which owns assets in Canada and Australia, last year also entered into a joint venture agreement with with IGO Ltd. to produce battery-ready materials at a plant near Perth. Despite the shutdown of the mines, it’s studying developing its own nickel concentrator in the Kambalda region, Wyloo said in the statement. Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P.

2024-01-22 00:00:20+00:00

{"Bitcoin": [7909]}

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A Rewiring of the World’s Biggest Bond Market Will Transform Trading

https://finance.yahoo.com/news/rewiring-world-biggest-bond-market-000020420.html

Bloomberg

https://www.bloomberg.com/

(Bloomberg) -- After years of regulatory tinkering, Washington is now forcing through the most rigorous overhaul of the world’s biggest bond market in decades. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hedge Funds Rake in Huge Profits Betting on Catastrophe Risk Gloom Over China Assets Is Spreading Beyond Battered Stocks Sony Sends Termination Letter to Zee Over India Merger Morgan Stanley, JPMorgan Say Buy the Dip After Treasury Rout Securities and Exchange Commission Chair Gary Gensler, who once oversaw federal debt management at the US Treasury, has championed a move to require the vast majority of Treasuries trading to migrate to a central counterparty clearinghouse — an intermediary between buyers and sellers that assumes ultimate responsibility for the transaction. The phased-in process culminates in mid-2026 with the inclusion of all repurchase agreement transactions — a key tool used by hedge funds in the popular so-called basis trade that’s drawn scrutiny from Washington. The initiative amounts to one of the most consequential efforts since a regulatory revamp in the wake of a 1991 Treasury auction scandal involving the now-defunct Salomon Brothers. Once complete, it should minimize the danger of contagion from a shock collapse of any one financial institution. It’s akin to what authorities already did with interest-rate derivatives after the downfall of Lehman Brothers, which wreaked havoc in global money markets. Because the clearinghouse assumes responsibility for completing transactions, it reduces the risk of a counterparty being unable to complete a deal. But the reduction in systemic danger will come at a price: dealers will face higher risk-management costs as the SEC also tightens rules governing clearinghouses. And, as dealers will collectively be on the hook for any one counterparty going down, they’re also likely to do more due diligence on clients. New collateral and margin rules may also mean less day-to-day liquidity. Story continues For Gensler and fellow regulators, the move is key to strengthening resilience in the $26 trillion US Treasuries market, which has been roiled several times in recent years by sudden freezes in trading. Only about 13% of the $700 billion-a-day in cash Treasuries trading fully runs through the market’s sole clearinghouse — the Fixed Income Clearing Corp. (FICC) — helping convince authorities that a graduated phase-in was needed. “It is going to transform the way people interact with the market and the way that the market functions,” said Nathaniel Wuerffel, head of market structure at Bank of New York Mellon Corp. and former head of domestic markets at the Federal Reserve Bank of New York. “This is by far the biggest of the reform efforts that regulators have been working on over recent years.” In past episodes of stress, “market participants start to pull back from their counterparties because they’re worried about counterparty credit risk,” Wuerffel said. While that will be reduced going forward, the additional risk-management costs involved in the new regime mean “on a day-to-day basis, liquidity is going to be slightly less continuous than it has been in the past.” Hedge funds got a partial win in the SEC rules unveiled last month — they were exempted from using central clearing for cash trading of Treasuries. But they are far more active in the repo market, which they use for leveraged bets such as in the popular basis trade. Repos amount to about $4 trillion on average a day, and only around 20% of that currently runs through a central counterparty clearinghouse, or CCP. “A lot of finance doesn't lower risk — it just moves it to parties more willing and able to hold it for a price,” Gensler said in an interview last week. “Higher volatility in the underlying market coupled with high leverage is where you can see shocks in a system,” he said. “Central clearing is one of those things in finance that, on net, lowers risk.” CCPs will be required to establish standards for margins that dealers must post for their trades, separate from what they might have been setting for their customers. That may end up crimping hedge funds’ basis trades, where leverage is used to take advantage of price differences between Treasuries and futures. QuickTake: What’s the Basis Trade? Why Does It Worry Regulators? “Repo is the major funding source for a lot of the basis trades, and a lot of the market scares over the last decade were due to repo shocks,” said Kevin McPartland, head of market structure research at Coalition Greenwich. Today, there’s only one CCP for Treasuries — the FICC, a subsidiary of the Depository Trust & Clearing Corp. While there’s potential for new entrants, central clearing is a capital-intensive business and costly to set up. That leaves risk concentrated in the single current operator. “We see this expansion to broaden participation in central clearing as a natural evolution that FICC is well-positioned to execute on,” a DTCC spokesperson said. A key element of CCPs involves a collective backstop in the case of one member’s demise — not unlike the federal deposit insurance kitty that banks pay into. The CCP pools members’ capital to ensure that losses at one firm don’t harm others. The platforms also have what’s called a default fund, known as a waterfall, where bank members deposit cash and securities to be held in reserve as an additional level of loss protection. While members must pony up to that reserve, one advantage of the CCP platform is a broader netting out of trades between market participants each day. That potentially could encourage dealers such as big banks to engage in more Treasuries trading. And that in turn could work to boost liquidity — the ease of being able to buy or sell. “In theory, clearing should free up balance sheets at the primary dealer level through the netting process,” said Amar Reganti, a former deputy director of the Treasury’s Office of Debt Management who’s now a fixed-income strategist at Wellington Management. “That’s a benefit.” It may be particularly helpful in a world where big banks haven’t expanded their trading capacity at anywhere near the magnitude of the growth of the market itself. That’s in part thanks to the 2014 introduction of the so-called supplementary leverage ratio rule — which compels financial institutions to hold capital against their portfolios, including inventories of Treasuries. Big banks are also now facing prospects of tighter capital rules from the Fed. “While central clearing of repo and Treasuries could help improve market resilience, the change is highly unlikely to fully resolve the broader liquidity decline in recent years,” said Gennadiy Goldberg, head of US rates strategy at TD Securities Inc. “Dealer balance sheets remain constrained, increased capital requirements are coming” and Treasury supply keeps rising, he said. Among the awaited next steps are the FICC’s proposed rule changes on issues including margins to bring market structure into line with the SEC’s regulations. Also key: another proposed SEC rule expected to be finalized in coming months that would require proprietary trading firms and other private funds to register as securities dealers. That would force more trading onto a clearinghouse. The Inter-Agency Working Group on Treasury Market Surveillance (IAWG), spanning multiple agencies, has also pushed through other measures — including a US Treasury plan to begin later this year to buy back some existing securities, in part aimed at bolstering liquidity. “The SEC’s new central clearing rules are an important part of the IAWG’s work to improve Treasury market resilience,” said Josh Frost, the Treasury’s assistant secretary for financial markets. Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P.

2024-01-22 00:01:00+00:00

{"Bitcoin": [3227]}

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UK Home Sellers Made £100,000 Profit Per Deal Even In Tough Year

https://finance.yahoo.com/news/uk-home-sellers-made-100-000100626.html

Bloomberg

https://www.bloomberg.com/

(Bloomberg) -- UK home sellers made a tidy profit last year, though the gains were smaller as a double whammy of high interest rates and a cost-of-living squeeze sapped demand. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hong Kong Stocks at 36% Discount Show True Depth of China Gloom Morgan Stanley, JPMorgan Say Buy the Dip After Treasury Rout Gloom Over China Assets Is Spreading Beyond Battered Stocks Hedge Funds Rake in Huge Profits Betting on Catastrophe Risk The average gross profit on a sale in England and Wales dropped about 9% to £102,650 ($130,100) in 2023, from roughly £113,000 in 2022, according to a report from broker Hamptons International. That’s still a bumper gain compared with the average over the past nine years, but shows how discounts hurt earnings during a period of weak demand. “The numbers illustrate how the scale of historic price growth sheltered movers last year,” said Aneisha Beveridge, head of research at Hamptons. “Many households who bought a home between 2014 and 2016, predominantly in prime central London, face selling at a loss which has reduced sales numbers.” Read more: One in Four UK Homebuyers Clinch Discounts of More Than 10% UK housing remains under pressure from a series of interest rate hikes, with many prospective homeowners priced out of buying a property due to higher borrowing costs. One in four deals involved a price reduction of more than 10% in November, according to a separate report from property portal Zoopla. Still, the average seller in England and Wales made a 48% gain last year, albeit down from 54% in 2022, Hamptons said. The decline was largely due to a small dip in house prices in the past 12 months, and the fact that vendors are moving sooner — therefore limiting the build up of value in their home. Some 72% of Londoners who sold a property bought in 2016 last year earned a profit, compared with an average of 88% for all vendors across the city. That’s because the average property in the capital’s most affluent postcodes still costs less than it did when the market peaked eight years ago. Read more: UK Lenders See Growing Mortgage Demand Even as Defaults Rise Regardless, 93% of UK households sold their home for profit in 2023, and optimism that the Bank of England will cut interest rates this year may facilitate higher gains. This month, broker Knight Frank revised its UK house price forecast to growth in 2024, while researcher LonRes noted an “improving outlook” for prime London sales. Of the households that sold a home bought in 2021 last year, two thirds did so in a small town or the suburbs — exceeding the typical average. Meanwhile, 12% of vendors sold houses in the countryside, compared to a longer-term average of 9%, suggesting an unwinding of the pandemic-driven race for space. Story continues “Most of these sellers are selling larger homes in the country, often in favor of a move back to the suburbs or city,” Hamptons’ Beveridge said. “We expect prices to start rising in London later this year which may start to unlock some of these moves.” Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P. View comments

2024-01-22 00:01:00+00:00

{"Bitcoin": [3040]}

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Hedge Funds Cap a Bumper Year for Profits

https://finance.yahoo.com/news/hedge-funds-cap-bumper-profits-000100892.html

Bloomberg

https://www.bloomberg.com/

(Bloomberg) -- Billionaire money managers Chris Hohn and Ken Griffin led hedge funds to deliver one of the best years for clients in 2023. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hong Kong Stocks at 36% Discount Show True Depth of China Gloom Morgan Stanley, JPMorgan Say Buy the Dip After Treasury Rout Gloom Over China Assets Is Spreading Beyond Battered Stocks Hedge Funds Rake in Huge Profits Betting on Catastrophe Risk The industry produced combined gains worth $218 billion after fees, according to estimates by LCH Investments, a fund of hedge funds. Hohn’s TCI Fund Management made $12.9 billion to top LCH’s rankings, followed by Citadel, which made $8.1 billion. The annual survey focuses on money managers with the most overall profits in absolute dollar terms since inception, and as a result the largest and oldest hedge funds typically tend to do best. The top 20 firms, which oversee less than a fifth of the industry’s assets, generated $67 billion or roughly a third of the gains last year. As measured by a more traditional way of assessing returns, the top grouping gained 10.5% in 2023, outperforming the average hedge fund which returned 6.4%. Over the past three years, the top 20 have generated 83% of the absolute gains made by all hedge fund managers, the report found. “In most cases this reflects an ability to limit the downside in adverse conditions and to make money when conditions are favourable, as they were toward the end of 2023,” Rick Sopher, chairman of LCH, said in a statement. “These managers have been generating above average performance over several decades reflecting the persistence of their superior returns.” The report also shows the dominance of large multistrategy hedge funds that have been gobbling up assets, talent and leverage in recent years, causing unease among regulators, investors and traders. Read More: Citadel and Peers Face More Scrutiny as Pod Shop Risks Grow Story continues Citadel, Izzy Englander’s Millennium Management, and D.E. Shaw & Co. lead the rankings for most money made since launch. Over the past three years alone, the trio generated $71.2 billion of gains representing 38.3% of the total profits of all hedge funds. They managed 4.6% of industry assets at the end of last year, LCH estimates. “Firms of this type typically run with leverage levels far higher than the average hedge fund, which has helped boost their performance,” Sopher said. “Their strong net returns have been achieved after passing on substantial operating costs, which continue to be tolerated by their investors. The sustainability and acceptability to investors and regulators of the risks involved in these models is rightly coming under scrutiny.” Top 20 Managers Ranked by Profits in 2023 Source: LCH Investments; Gains are in billions of dollars Note: * Denotes gains frozen when all outside capital returned Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P.

2024-01-22 00:23:53+00:00

{"Bitcoin": [5167]}

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Gloom Over China Assets Is Spreading Beyond Battered Stocks

https://finance.yahoo.com/news/gloom-over-china-assets-spreading-130000159.html

Bloomberg

https://www.bloomberg.com/

(Bloomberg) -- Skepticism over Chinese assets is spreading beyond stocks, with investors expecting the yuan and government bonds to underperform in a year when the Federal Reserve’s dovish pivot is set to buoy emerging markets. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hong Kong Stocks at 36% Discount Show True Depth of China Gloom Morgan Stanley, JPMorgan Say Buy the Dip After Treasury Rout Gloom Over China Assets Is Spreading Beyond Battered Stocks Hedge Funds Rake in Huge Profits Betting on Catastrophe Risk Bearish sentiment toward China has intensified as the latest data confirmed the world’s second largest economy remains in the doldrums. While the gloom adds impetus for the People’s Bank of China to lower interest rates, investors say the monetary authority has less room to cut than its major global peers, whose borrowing costs are now at multi-year highs. “We expect the yuan to remain under pressure in the near term given the bearish expectations for China growth this year,” said Ken Cheung, chief Asian currency strategist at Mizuho Bank Ltd. in Hong Kong. “Bonds will remain supported as the PBOC will maintain an easing bias. However, renewed yuan depreciation pressure and narrow net interest margin among Chinese banks will limit the room for rate cuts.” As China falls out of favor, traders see multiple reasons to be more positive toward its EM peers. Higher-yielding markets will have more room to gain from the Fed’s anticipated rate cuts, while South Korea and India’s potential inclusion into major global bond indexes should give their assets an added boost. Yuan’s Relative Weakness Events over the past week have been a letdown for investors. Despite mounting calls for more stimulus, the PBOC kept its one-year policy rate unchanged, while Premier Li Qiang touted the nation’s ability to achieve economic expansion without resorting to massive stimulus, disheartening hopes for more policy support. While the new-year selloff in Chinese assets has mostly been concentrated in equities, continued foreign outflows will increase downward pressure on its currency. The offshore yuan has weakened more than 1% this year, after dropping almost 3% in 2023. Read more: China Downplays Big Stimulus in 2024, Testing Investor Patience “The yuan can weaken versus the basket of currencies of its trading partners which, for foreign investors, will offset most of the bond performance,” said Rajeev De Mello, a global macro portfolio manager at Gama Asset Management SA. “I prefer local-currency bonds and currencies of countries where policy rates have been hiked preemptively, and where inflation is declining, with Brazil and Mexico standing out.” Story continues JPMorgan Asset Management also sees a weakening bias in the yuan basket against trading partners in the first half of the year and is looking for relative value opportunities, according to Julio Callegari, chief investment officer of Asia fixed income. Economists expect the yuan will retrace some of its losses this year but will again underperform its Asian peers. The dollar-offshore yuan will fall 3% to 6.99 by the end of December, compared with an average 4.4% drop projected for emerging Asia ex-China pairs, according to surveys by Bloomberg. The currency was little changed at 7.2037 Monday after a third straight week of declines against the dollar. The yuan will be “quite an uninspiring currency” in this environment, where the dollar is still strong, said Simon Harvey, head of foreign-exchange analysis at Monex Europe Ltd. in London. Less Attractive Yields China’s government bonds have fared well so far this year, with yields falling as investors pinned their hopes on the PBOC’s easing. Yet markets are increasingly searching for countries that offer higher yields, which stand to benefit once a shift to monetary easing kicks off. China’s benchmark 10-year yield is currently around 2.5%, compared with more than 7% in India, 9% in Mexico and 10% in Brazil. “We are underweight China bonds at this juncture, purely because the yields are higher in markets like India and Indonesia, while US Treasury proxies such as Korea bonds are attractive on the view that Treasuries have more upside from current levels,” said Edmund Goh, investment director of Asia fixed income at abrdn Plc. South Korea’s 10-year yields are the most sensitive within emerging Asia to swings in similar-maturity Treasuries, according to a previous analysis by Bloomberg, making the notes a likely candidate to outperform when the Fed embarks on easing. What to Watch Malaysia, South Africa and Brazil will release inflation data Malaysia is forecast to keep rates unchanged on Wednesday, while South Africa and Turkey will announce rate decisions on Thursday Mexico and Argentina release economic activity numbers for November South Korea will release fourth-quarter advance GDP data on Thursday --With assistance from Ruth Carson, Tania Chen and Wenjin Lv. (Updates with latest yuan moves in the ninth paragraph.) Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P. View comments

2024-01-22 00:30:00+00:00

{"Bitcoin": [3050]}

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Goldman Boosts Backing for Hong Kong Fintech Startup FundPark

https://finance.yahoo.com/news/goldman-boosts-backing-hong-kong-003000035.html

Bloomberg

https://www.bloomberg.com/

(Bloomberg) -- Hong Kong fintech company FundPark has secured a $250 million private loan with Goldman Sachs as a senior facility provider, signaling a rare bright spot in private credit lending in Greater China. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hong Kong Stocks at 36% Discount Show True Depth of China Gloom Morgan Stanley, JPMorgan Say Buy the Dip After Treasury Rout Gloom Over China Assets Is Spreading Beyond Battered Stocks Hedge Funds Rake in Huge Profits Betting on Catastrophe Risk The asset-backed security facility is an extension and increase of an original $250 million deal that FundPark received in 2022, which was led by Goldman Sachs, bringing the total amount to $500 million, said Hay Yip, the company’s chief operating officer, in an interview. The loan has a three-year duration. In an asset-back security facility, the deal is collateralized by a pool of underlying assets, which in this case is FundPark’s cash flow, the inventory of its customers and receivables, Yip said. FundPark operates its own platform that provides mainly cross-border Chinese mainland small- and medium-size ecommerce companies with working capital. This new liquidity injection will enable the company to provide its existing clients in China with further capital. While China was once seen as a key component of Asia’s private lending market, the nation’s unprecedented property debt crisis has pushed many investors to pull back on their exposure to the country. For international firms still seeking to tap into the world’s second-largest economy, the FundPark deal underscores that pockets of opportunity still exist in the sector, which is valued at more than $1.6 trillion globally. The deal represents “exposure to growth and opportunity in Greater China’s new economy sectors, particularly digital small and medium enterprises which have historically been under-banked,” Yip said. Investment Opportunities Story continues Private credit investors still looking into China are pivoting to opportunities in less levered sectors with better growth prospects, including consumer as well as digital and data sectors. Schroders, an asset management firm, said consumption plays and internet platforms are Chinese sectors that it is looking at for 2024. The popularity of ecommerce in China has made that industry another likely candidate for investors. Firms such as Alibaba Group Holding Ltd. and PDD Holdings Inc. may fuel more than half of China’s retail-sale growth in 2024, up from 37% last year, according to a report by Bloomberg Intelligence analysts. In many ways the FundPark deal highlights “the importance of Chinese SMEs, even as the economy isn’t as rosy as it used to be,” said Yip, who hopes the new facility loan will enable the company to grow its clients’ businesses, while also helping FundPark to expand to new markets like South and Southeast Asia. Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P.

2024-01-22 00:37:00+00:00

{"Bitcoin": [47, 251, 705, 1132, 1276, 1477, 1867, 2037, 2257, 2453, 2547, 2884, 3380, 4108, 4181, 4379, 4470, 4908, 5169, 5333, 6610, 6687, 6833], "BTC": [64]}

{"Bitcoin": [75]}

Is Coinbase in the Crosshairs? The Multimillion-Dollar Dilemma It Faces as Bitcoin ETFs Surge in Popularity.

https://finance.yahoo.com/news/coinbase-crosshairs-multimillion-dollar-dilemma-003700398.html

Motley Fool

http://www.fool.com/

Before Jan. 10, the only means of gaining true Bitcoin (CRYPTO: BTC) exposure was by directly purchasing the cryptocurrency off of an exchange, such as Coinbase Global (NASDAQ: COIN) . But now investors can buy shares of one of 11 newly approved spot Bitcoin exchange-traded funds (ETFs) through conventional brokerages. This has created some concern that the ETFs could jeopardize one of Coinbase's main uses and source of income. However, this assumption fails to paint the full picture. Here's why the ETFs will likely be a net gain for Coinbase over the long term. Image source: Getty Images. The new ETF landscape With a crowded field of choices, investors have several options for picking which new Bitcoin ETF they want to buy. Recognizing this, providers are in the midst of a fee war in an attempt to remain competitive and attract buyers. The majority of the ETFs have an expense ratio of 0% and offer fees lower than 0.4%, and some are waiving fees for a period of time. Compared to Coinbase, which charges anywhere from 1.5% to nearly 4% depending on the method of payment, cost-oriented investors would clearly opt for Bitcoin exposure via an ETF. Here lies the potential problem concerned investors are pointing out. Based on the most recent earnings statement, Bitcoin transaction fees made up around 17% of Coinbase's total revenue. Historically, this number has tended to hover around 18% to 20%. While Coinbase offers investors the ability to store purchased Bitcoins on a digital wallet, rather than merely owning shares of an ETF, this isn't a priority for everybody. For many investors, simply having exposure to the cryptocurrency in the form of an ETF is enough and the low fees make them an even better option. As these new ETFs become more popular among institutional and retail investors, Coinbase faces the likely reality that revenue from Bitcoin transactions will decline. But not all hope should be lost. How Coinbase benefits from the ETFs One of the more overlooked aspects of the recent approval of spot Bitcoin ETFs is the role that Coinbase plays. While media attention focused on the big names sponsoring the new funds -- like BlackRock , Fidelity, and Invesco -- a detail was glossed over. Story continues Out of the 11 Bitcoin ETFs now trading on the stock market, Coinbase serves as the custodian for eight of them. This means that Coinbase will benefit from two fees it charges. As the ETF providers buy and sell Bitcoins, Coinbase will receive a 0.2% fee. In addition, it also charges a fee to store those Bitcoins, with a varying cost structure depending on the total value in custody, ranging from 0.1% 0.2 %. These might sound like minuscule numbers, but when considering just how much interest these ETFs have garnered in a short amount of time, those small percentages could begin to add up. Admittedly, we are still in the early days of Bitcoin's arrival on Wall Street, but it remains hard to dismiss just how much activity they are generating. Over the first three days of trading, the ETFs registered over $10 billion in volume. Furthermore, two of them -- BlackRock's and Fidelity's -- at the time of this writing ranked in the top five of total inflow among all ETFs during the past week. Popularity of the ETFs trickled to Coinbase's platform as well. On the day the ETFs were approved, it registered more than $7.5 billion in Bitcoin transactions as investor interest skyrocketed. It was the second-largest single day of trading in the company's history. Quantifying the impact It's difficult to get hard numbers given the newness of the ETFs, but extrapolation of known fees and projected activity can shed some light on just how much money Coinbase could generate from its integral role. One analyst firm estimates up to $30 million in custody fees annually for Coinbase. That isn't very much, considering that during the first three quarters of 2023 it generated over $2 billion in revenue. Yet this assessment overlooks one crucial aspect. Coinbase charges custodial fees based on the total dollar value held in each account. Not the total number of Bitcoins. This holds significant implications over the long term. Should Bitcoin continue its journey of price appreciation -- a reasonable assumption due to its scarcity and current trajectory -- the underlying value of the funds held in custody will appreciate. Should Bitcoin double in price, Coinbase will see those fees double as well. If there is anything Bitcoin's short 15-year history has proved, it's that increases of this size can be a piece of cake. The other aspect that remains even more difficult to quantify, but holds greater implications, is the ripple effect that will occur in the wake of the approval of these ETFs. There is truly no way to estimate how significant of an impact they will have, but one fact remains certain: The approval stands as a momentous accomplishment in Bitcoin's evolution and holds the potential to accelerate market adoption among institutions and eventually trickle down to retail investors. As we saw with the trading surge on its platform in the days after the ETFs got the green light, the legitimization of Bitcoin and crypto in general will inevitably attract more activity and cushion Coinbase's bottom line. Considering the long term While the threat of ETFs stealing Bitcoin transaction revenue warrants concern, the reality is that Coinbase's role as a custodian and position as an industry leader should prove capable of offsetting any declines. But of most importance is the landmark that the ETF approval is. Now the world's most valuable cryptocurrency has a home on Wall Street, and some of the biggest names in the financial industry want a piece of it. As interest in other cryptocurrencies grows and development of new use cases progresses, Coinbase remains one of the key beneficiaries of crypto's evolution. Should you invest $1,000 in Coinbase Global right now? Before you buy stock in Coinbase Global, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Coinbase Global wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*. See the 10 stocks *Stock Advisor returns as of January 8, 2024 RJ Fulton has positions in Bitcoin and Coinbase Global. The Motley Fool has positions in and recommends Bitcoin and Coinbase Global. The Motley Fool has a disclosure policy . Is Coinbase in the Crosshairs? The Multimillion-Dollar Dilemma It Faces as Bitcoin ETFs Surge in Popularity. was originally published by The Motley Fool

2024-01-22 00:41:35+00:00

{"Bitcoin": [2437]}

{}

Macy’s Rejects $5.8 Billion Takeover Offer From Investors

https://finance.yahoo.com/news/macy-rejects-5-8-billion-004135491.html

Bloomberg

https://www.bloomberg.com/

(Bloomberg) -- Macy’s Inc. said Sunday that it wasn’t interested in a bid from Arkhouse Management Co. and Brigade Capital Management to take over the retailer, claiming the offer lacked “compelling value.” Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hong Kong Stocks at 36% Discount Show True Depth of China Gloom Morgan Stanley, JPMorgan Say Buy the Dip After Treasury Rout Gloom Over China Assets Is Spreading Beyond Battered Stocks Hedge Funds Rake in Huge Profits Betting on Catastrophe Risk The investors made a $5.8 billion, or $21 a share, offer for the company last month and Arkhouse earlier Sunday threatened to take its offer to shareholders if the department store chain doesn’t step up negotiations. The offer represents about a 19% premium to Macy’s closing price on Friday. Macy’s board has determined it won’t “enter into a non-disclosure agreement or provide any due diligence information to Arkhouse and Brigade,” the company said after Arkhouse issued its statement. It said that information provided by the investors failed to address concerns over their ability to finance the transaction. Arkhouse earlier said that advisers from all parties had held initial conversations and financing was discussed. It urged Macy’s to “engage expeditiously in good faith discussions,” pointing out that Macy’s shares had retreated from the high they reached after the offer was unveiled. “We are highly motivated to consummate an acquisition of Macy’s and are prepared to pursue all necessary steps, including direct engagement with stockholders, to achieve this goal,” the investor said. “We encourage the company to respond to us this week.” Read more: Macy’s $5.8 Billion Buyout Bid Follows Litany of Retail Misfires Macy’s has struggled to compete as shopper preference has shifted away from department stores, with online retailers making inroads in key merchandise categories such as apparel and home goods. The New York-based company said Thursday it would lay off about 3.5% of its workforce ahead of the departure of longtime Chief Executive Officer Jeff Gennette. Gennette said in the statement Sunday Macy’s continues “to be open to opportunities that are in the best interests of the company and all of our shareholders.” (Adds comments from Macy’s.) Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P. View comments

2024-01-22 00:42:06+00:00

{"Bitcoin": [3367]}

{}

Global stock index gains while US Treasury yields fall

https://finance.yahoo.com/news/japan-leads-asia-stocks-higher-004206749.html

Reuters

http://www.reuters.com/

By Sinéad Carew NEW YORK (Reuters) - MSCI's global equities index rose on Monday as Wall Street fed on momentum that took it to a new record high last week, while the U.S. dollar index edged up slightly. U.S. Treasury yields fell as investors took advantage of a recent decline in bond prices to enter the market ahead of economic indicators due out later this week that may give new information on the direction of interest rates. The benchmark S&P 500 scaled a fresh record-high after closing at a record on Friday for the first time in two years, confirming it was in a bull market. "If anything, what we're seeing is a carry-over of the strength from the last couple of trading sessions. That's probably starting to get money in off the sidelines," said Matt Stucky, chief portfolio manager for equities at Northwestern Mutual Wealth Management Company. "There could just be some fear of missing out driving this, with a lot of liquidity still to enter into equity markets. Narratives tend to follow prices in the mind of retail investors. The S&P 500 at an all-time high gives them another data point to say things are getting better faster than what we were thinking." The Dow Jones Industrial Average rose 138.01 points, or 0.36%, to 38,001.81, the S&P 500 gained 10.62 points, or 0.22%, to 4,850.43 and the Nasdaq composite gained 49.32 points, or 0.32%, to 15,360.29. The MSCI world equity index, which tracks shares in 49 nations, gained 0.29%. Europe's STOXX 600 index rose 0.77%. In Treasuries, the yield on benchmark 10-year Treasury notes rose to 4.1091% compared with its U.S. close of 4.146% on Friday. The two-year yield, which rises with traders' expectations of higher Fed fund rates, touched 4.3932% compared with a U.S. close of 4.408%. In currencies, the U.S. dollar was little changed to modestly higher against a basket of currencies on Monday ahead of central bank policy decisions in Japan and the euro zone that may determine the currency's direction this year. Story continues "Dollar is in a bit of a holding pattern until central banks kick off tomorrow," said Helen Given, FX trader at Monex USA in Washington. The dollar index, which tracks the greenback against a basket of currencies of other major trading partners, was up 0.08% at 103.35. The greenback dropped 0.04% against the yen to 148.08. The European single currency was down 0.1% on the day at $1.0882, having lost 1.4% in a month. The Bank of Japan is expected to keep policy super-easy at a meeting on Tuesday while the European Central Bank (ECB) meets on Thursday and is expected to hold monetary policy steady. Central banks in Canada and Norway also meet this week and no changes to rates are expected, though Turkey is thought likely to hike again. The U.S. Federal Reserve is scheduled to meet again Jan. 30-31. Spot gold prices fell 0.44% to $2,020.36 an ounce as investors rolled back expectations of a U.S. interest rate cut at the end of March, with a surge in equity markets further dampening interest in safe-haven bullion. Oil prices rose as traders saw oil supply tightening due to conflicts in the Middle East and Ukraine, as well as extreme North American cold weather, while the bullish U.S. stock market signalled demand growth ahead. U.S. crude settled up 2.4% at $75.19 a barrel. Brent crude settled up 1.9% at $80.06 per barrel. In crypto currencies, Bitcoin earlier fell to a seven-week low and was last down around 4% at $39,936. Earlier in Beijing, the central bank again skipped a rate cut in its market operations on Monday. China and Hong Kong shares slumped, as relentless foreign outflows and a surge in short-selling pummelled confidence already hurt by the region's creaking economy. China's blue-chip CSI300 Index dropped 1.6% to its lowest closing level in nearly five years while in Hong Kong, the benchmark Hang Seng Index tumbled 2.3% to its lowest level in 14 months. (Reporting by Sinéad Carew, Gertrude Chavez-Dreyfuss, Nell Mackenzie and Wayne Cole; Editing by Kirsten Donovan, Susan Fenton and Rosalba O'Brien)

2024-01-22 00:53:11+00:00

{"Bitcoin": [2934]}

{}

Two Australian Resource-Rich Regions Facing Destructive Storms

https://finance.yahoo.com/news/two-australian-rich-regions-facing-005311952.html

Bloomberg

https://www.bloomberg.com/

(Bloomberg) -- Two Australian resource-rich regions are bracing for potentially damaging storms that could lead to flooding, the latest threats after months of extreme weather events. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hedge Funds Rake in Huge Profits Betting on Catastrophe Risk Gloom Over China Assets Is Spreading Beyond Battered Stocks Trump Retires ‘DeSanctimonious’ Insult After DeSantis Backs Him Sony Sends Termination Letter to Zee Over India Merger A tropical low developing in the Coral Sea off Queensland state is likely to become a cyclone by Tuesday, the nation’s Bureau of Meteorology said. The system is expected to cross the coast around the middle of the week, with a severe impact likely. If the storm crosses the coast, the bureau expects it to weaken and move further south over land, which may trigger heavy rainfall near coal-mining regions. Meanwhile, a separate tropical low that’s hit the Northern Territory has now entered Western Australia state and is forecast to impact the Pilbara region in coming days. The system is expected to bring intense rainfall as its slowly moves near or just off the iron ore mining hub’s coast from Wednesday, with a risk it could later strengthen into a tropical cyclone. Multiple areas in the Northern Territory remain on flood watch. These latest threats come just over a month after Cyclone Jasper triggered destructive flooding and winds in the country’s north. The current tropical low in Queensland is expected to cross the coast around the same region that was impacted by Cyclone Jasper. The Insurance Council of Australia declared that event an “insurance catastrophe.” “We would obviously be concerned if there was to be any further impact on those areas that were already hit by Tropical Cyclone Jasper, and that are very much still in recovery mode,” Australian Emergency Management Minister Murray Watt said in a television interview Monday. Story continues Queensland is the nation’s biggest producer of sugar and has a large resources industry. That includes production of metallurgical and thermal coal, LNG, and base metals including copper, lead and zinc. Meanwhile, the Pilbara region hosts massive iron ore operations for companies including BHP Group Ltd., Rio Tinto Group and Fortescue Ltd., as well as LNG projects operated by Chevon Corp. and Woodside Energy Group Ltd. The weather bureau said in October it expected a below-average number of tropical cyclones in 2023-24 due to El Niño. While that pattern often leads to hotter and drier conditions in the continent’s east, the nation’s summer so far has been marked by a prolonged deluge of rain that’s inundated homes and damaged crops from sugar to wheat. Australia’s cyclone season typically runs from November to April. Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P.

2024-01-22 01:33:29+00:00

{"Bitcoin": [3717]}

{}

US dollar flat as Japan, European policy meetings loom

https://finance.yahoo.com/news/dollar-struggles-retain-gains-even-013329727.html

Reuters

http://www.reuters.com/

By Gertrude Chavez-Dreyfuss NEW YORK (Reuters) -The U.S. dollar was little changed to modestly higher against a basket of currencies on Monday ahead of central bank policy decisions in Japan and the euro zone that may determine the currency's direction this year. Japan's yen moved away from Friday's 148.80 per U.S. dollar, its weakest in a month, and rose to as high as 147.61, as the BOJ started its two-day policy meeting. The dollar was last down 0.1% against the Japanese currency at 148.06 yen. Wagers for an exit from negative rates at this meeting have been wound down following the New Year's Day earthquake on Japan's west coast, alongside dovish BOJ commentary. "BOJ Governor (Kazuo) Ueda is likely to tilt against expectations for an April move out of negative-rates territory in the post-decision press conference, and the bank may lower its full-year inflation forecast, pulling the yen closer to the 150 threshold against the dollar," said Karl Schamotta, chief market strategist at Corpay in Toronto. The yen, which is sensitive to the difference in interest rates between the U.S and Japan, has been the worst hit against the dollar this year, tumbling about 5% in a swift reversal of December's bounce to five-month peaks near 140. "It's incredibly unlikely they'll (BOJ) actually touch their benchmark policy rate, but comments from currency officials are proving to once again have a bit of weight on the (dollar/yen) pair," said Helen Given, FX trader, at Monex USA in Washington. "We'll have to see whether Ueda mentions FX pricing in his press conference following the decision. To put things into context though, this is a relatively small retracement to the losses JPY has taken so far this year." Traders said one factor also driving the yen moves was the expiry of a large amount of currency options this week and the hedging around those contracts. LSEG data showed strike prices between 147.15 and 148.10 dollar-yen levels this week totalled around $2.6 billion. Story continues The European Central Bank is also holding a policy meeting this week and is expected to leave rates unchanged at 4%, with ECB officials saying it is too early for rate cuts. With the ECB likely to remain data-dependent, investors will focus on the tone of the policy statement and President Christine Lagarde's press conference. The euro was last down 0.1% on the day at $1.0883. Speculators pared back net long positions on the euro to their lowest since early November, data from the Commodity Futures Trading Commission showed last Friday. The dollar index was flat to slightly higher at 103.34. It has gained the most among developed market currencies in January, rising about 1.8% from the start of this year. Its rally, however, has been up and down as investors try to make up their minds about when the Federal Reserve will start cutting rates. Data late last week showing U.S. economic activity remains resilient despite interest rates at their highest level in decades caused markets to scale back expectations of rate cuts beginning as soon as March. The U.S. rate futures market on Monday priced in a roughly 40% chance of a rate cut at the March meeting, down from as much 80% 1-1/2 weeks ago, according to LSEG's rate probability app. For 2024, futures traders are betting on five rate cuts of 25 bps each, compared with expectations of six two weeks ago. In cryptocurrencies, bitcoin fell below $40,000 for the first time since early December, as investors continued to book profits following the U.S. approval of spot bitcoin exchange-traded funds a few weeks ago. The world's largest cryptocurrency in terms of market capitalization dropped to $39,335.37, the lowest level since December 4. Bitcoin was last down 3.5% at $40,284. So far this year, bitcoin has fallen 5.3%. (Reporting by Gertrude Chavez-Dreyfuss; Additional reporting by Alun John in London, Vidya Ranganathan in Singapore, and Kevin Buckland in Tokyo; Editing by Sharon Singleton, Kirsten Donovan and Cynthia Osterman)

2024-01-22 02:23:48+00:00

{"Bitcoin": [2624]}

{}

Nvidia CEO Makes First China Tour in Years as US Curbs Roil AI

https://finance.yahoo.com/news/nvidia-ceo-makes-first-china-022348791.html

Bloomberg

https://www.bloomberg.com/

(Bloomberg) -- Nvidia Corp. co-founder Jensen Huang celebrated the new year with staff during his first trip to China in four years, a low-key tour that coincided with growing concerns about Beijing’s ability to get around US chip restrictions. Most Read from Bloomberg China Weighs Stock Market Rescue Package Backed by $278 Billion India Tops Hong Kong as World’s Fourth-Largest Stock Market Hong Kong Stocks at 36% Discount Show True Depth of China Gloom Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Morgan Stanley, JPMorgan Say Buy the Dip After Treasury Rout He visited Nvidia’s offices in Shenzhen, Shanghai and Beijing earlier this month, according to a person familiar with the matter. Images and video of the 60-year-old donning colorful traditional garb and dancing with staff emerged online over the weekend. It wasn’t clear if he’d held formal meetings with other executives or officials, said the person, who asked not to be named discussing a private visit. Huang embarked on his tour — first reported by state newspapers off Chinese social media posts — as Nvidia’s artificial intelligence accelerators become pivotal in a tech race between Washington and Beijing. Huang has warned that an escalation in sanctions designed to cut off the flow of AI training chips could drive Chinese firms to develop their own alternatives. That could harm American tech leaders in the long run, he has said. The Nvidia co-founder name-checked Huawei Technologies Co. — which in 2023 alarmed Washington by including an advanced made-in-China processor in a smartphone — as a potential rival. Read More: US Looking Into Nvidia’s AI Chips for China, Raimondo Says An Nvidia representative confirmed Huang had celebrated the upcoming Lunar New Year with staff, without elaborating. Nvidia, which more than tripled its market value in 2023 thanks largely to its pivotal role in AI development, is up another 20% this year as investors bet on its sector leadership. It’s designed versions of its semiconductors for China that it says are compliant with successive rounds of US sanctions, as Washington watches closely. Among the social media posts, one person describing himself as an Nvidia staffer shared an image of Huang handing over a raffled Nvidia GeForce RTX 4080 graphics card. The CEO has since moved on to Taiwan, according to local newspaper EDN, for his fourth visit to the island in less than a year. Read more: Nvidia’s Red-Hot 2024 Start a Bright Spot as S&P 500 Eyes Record Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P. View comments

2024-01-22 02:26:51+00:00

{"Bitcoin": [4992]}

{}

Chinese Banks Hold Rates, Expectations Rise for Easing by Spring

https://finance.yahoo.com/news/chinese-banks-maintain-lending-rates-011750324.html

Bloomberg

https://www.bloomberg.com/

(Bloomberg) -- China’s commercial lenders held their benchmark lending rates in line with the central bank’s recent move to maintain borrowing costs, as attention shifts toward the likelihood of more easing in the coming months. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hong Kong Stocks at 36% Discount Show True Depth of China Gloom Morgan Stanley, JPMorgan Say Buy the Dip After Treasury Rout Gloom Over China Assets Is Spreading Beyond Battered Stocks Hedge Funds Rake in Huge Profits Betting on Catastrophe Risk The one-year loan prime rate was kept at 3.45%, matching the consensus forecast among economists surveyed by Bloomberg. The five-year rate — a reference for mortgages, was also held at 4.2% as projected — data from the People’s Bank of China showed. Last week, the PBOC refrained from trimming the rate on its one-year policy loans. Beijing has been reluctant to flood the economy with monetary stimulus despite the nation experiencing its longest deflationary streak since the late 1990s. While cutting rates can boost dwindling confidence, policymakers have to balance any easing with the need to guardrail the nation’s massive banking system and safeguard the yuan. The Federal Reserve’s next moves are also a factor, with the US central bank recently pushing back against speculation for rate cuts as soon as March. “Banks are not ready to cut in January, “ said Xing Zhaopeng, senior China strategist at Australia & New Zealand Banking Group Ltd. He also cited a deterioration in net interest margins for banks as a “big concern.” Those pressures suggest lenders may need more time to reduce their funding costs before being able to absorb the impact of lower borrowing rates. Chinese stocks traded slightly lower Monday morning to under-perform against their regional peers. The onshore benchmark CSI 300 Index lost as much as 0.5%, compared to a 0.7% gain in the MSCI Asia Pacific Index. Story continues The Chinese yuan was little changed both onshore and offshore, though has slipped for three consecutive weeks as the US dollar gains strength. The yields on 10-year China government bonds were little changed at 2.5%. The steady rates also illustrate a desire to ensure the existing amount of credit within the financial system is used efficiently. Fast-growing money supply has yet to translate into a significant improvement in actual borrowing. The LPRs are based on the interest rates that 20 banks offer their best customers. They are quoted as a spread over the central bank’s one-year policy rate, or the medium-term lending facility rate. The PBOC, which publishes the LPRs monthly, is seen as having significant sway over them. Investors have so far been underwhelmed by Beijing’s policies to keep economic momentum going. Official data released last week failed to shake off several of the concerns most persistently weighing on the world’s second-largest economy. While China hit its roughly 5% growth target last year, it’s recording its worst deflationary streak since the Asian Financial Crisis. Home prices fell last month by the most since 2015, underscoring the scale of the real estate crash. Analysts do expect the central bank to eventually ease policy through rate cuts or trims to the reserve requirement ratio, the amount of cash banks must keep in reserve, though the timing of such actions is up for debate. Raymond Yeung, ANZ’s chief economist for greater China, said he sees a RRR cut happening before the lengthy Lunar New Year celebrations in February. He also expects the PBOC to reduce the rate on its one-year policy loans in April at the earliest. What Bloomberg Economics Says ... “We see the PBOC trimming rates by 10 basis points this quarter, which should lead broader lending rates down as well. Sluggish growth and increasing deflationary pressure show the economy needs stronger policy support — and quickly. An expected cut in the PBOC policy rate would give banks room to trim lending rates.” — Eric Zhu, economist Click here to read the full report. Serena Zhou, senior China economist at Mizuho Securities Co., is expecting interest rate and RRR cuts — though she sees those moves more likely after China’s leaders hold their annual legislative sessions in early March. That will be “when China has a more coordinated plan for bolstering the economy,” she said, adding that the Fed will likely give “a more clear road map in terms of cutting rates,” which will help avoid pressuring the yuan further. Yeung, though, cautioned that interest rate cuts are a “little step” that wouldn’t be enough to solve the nation’s deflationary pressures. “The key remains to stabilize the property market and defend asset prices,” he said. “Structural measures are needed.” --With assistance from Iris Ouyang and Zhu Lin. (Updates with additional comments throughout.) Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P.

2024-01-22 02:31:40+00:00

{"Bitcoin": [3611]}

{}

Chinese Exports of Battery Material Graphite Plunge on Controls

https://finance.yahoo.com/news/chinese-exports-battery-material-graphite-023140567.html

Bloomberg

https://www.bloomberg.com/

(Bloomberg) -- China’s exports of natural graphite, a material used in electric vehicle batteries, plummeted in December after Beijing imposed controls at the start of the month, tightening its grip on the supply of minerals vital to advanced manufacturing. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hong Kong Stocks at 36% Discount Show True Depth of China Gloom Morgan Stanley, JPMorgan Say Buy the Dip After Treasury Rout Gloom Over China Assets Is Spreading Beyond Battered Stocks Hedge Funds Rake in Huge Profits Betting on Catastrophe Risk Overseas sales plunged 91% month-on-month to 3,973 tons, according to Chinese customs data, after a rush to buy ahead of the deadline saw them surge to more than 45,000 tons in November. Exports had averaged about 17,000 tons a month in the year through October. The export restrictions are generally viewed as Beijing’s response to trade barriers raised on Chinese products by Western nations. They apply to materials deemed highly sensitive as so-called dual-use items, a reference to military applications. The curbs were announced just days after the US stepped up efforts to keep advanced semiconductor chips out of China. Exports of synthetic graphite, which aren’t subject to the curbs, fell 28% to 39,763 tons last month. The commerce ministry flagged in the middle of December that some graphite export applications had been approved. Sales should slow notably from December to the Lunar New Year holidays, which fall in mid-February this year, as government approvals take quite a long time, Shanghai Metals Market said last week, citing its survey of domestic producers. Overseas demand also usually weakens toward the end of the year, and that was particularly the case after purchases ramped up in November, it said. Chinese shipments of two other critical minerals — germanium and gallium — also continue to be affected by separate controls imposed earlier in the year on national security grounds. Germanium exports jumped more than four times to 3.36 tons in December from the month before, while overseas sales of gallium surged to 7.03 tons from 1.53 tons. Story continues The minerals are used to make parts for chips, telecommunications equipment and electric vehicles. Some 94 tons of gallium and 44 tons of germanium were exported by China in 2022. The Week’s Diary (All times Beijing unless noted.) Monday, Jan. 22: China sets monthly loan prime rates, 09:15 Tuesday, Jan. 23: Nothing major scheduled Wednesday, Jan. 24: CCTD’s weekly online briefing on Chinese coal, 15:00 Thursday, Jan. 25: Cnooc’s 2024 strategy briefing in HK, 17:50 Friday, Jan. 26: China weekly iron ore port stockpiles Shanghai exchange weekly commodities inventory, ~15:30 Saturday, Jan. 27 China’s industrial profits for December, 09:30 On the Wire China and Democratic Republic of Congo are discussing $7 billion in financing as part of a renegotiated minerals-for-infrastructure deal, President Felix Tshisekedi said Saturday at his second inaugural address in the capital, Kinshasa. Chinese battery makers, including CATL, and lithium stocks may fall after the US banned the Defense Department from buying batteries produced by China’s biggest manufacturers. China’s commercial lenders held their benchmark lending rates steady on Monday, in line with the central bank’s decision to maintain policy rates amid concerns over pressures on the yuan. --With assistance from Ailing Tan and Kathy Chen. Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P.

2024-01-22 02:47:38+00:00

{"Bitcoin": [2860]}

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Australia’s PM Albanese Plans Cost-of-Living Blitz to Reverse Poll Slump

https://finance.yahoo.com/news/australia-pm-albanese-plans-cost-024738574.html

Bloomberg

https://www.bloomberg.com/

(Bloomberg) -- Australian Prime Minister Anthony Albanese has called ruling-party lawmakers to Canberra for an unscheduled meeting on cost-of-living pressures, as part of a renewed drive to combat inflation that the government hopes will reverse its slide in opinion polls. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hong Kong Stocks at 36% Discount Show True Depth of China Gloom Morgan Stanley, JPMorgan Say Buy the Dip After Treasury Rout Gloom Over China Assets Is Spreading Beyond Battered Stocks Hedge Funds Rake in Huge Profits Betting on Catastrophe Risk Center-left Labor party members will discuss potential solutions to voter concerns about persistent price increases at a meeting on Wednesday, two weeks ahead of the planned 2024 opening of Parliament in early February. Then on Thursday, Albanese will address the National Press Club, where he is expected to make policy announcements to help ease cost-of-living pressures. “If we can find ways to put extra dollars in people’s pockets, particularly those lower middle income earners who are doing it tough, then we’re prepared to do so,” Albanese said in an interview with Sky News on Monday. Among options being considered are an extension of household energy bill rebates and a potential mandatory code of conduct to ensure supermarkets pass on any fall in prices to consumers. Inflation in Australia remains higher than in many developed counterparts and while it has eased from a December 2022 peak, it’s proving sticky in some sectors. Surveys show the high cost-of-living among the most important issues to voters, with the price of food, energy and rent of particular concern. The government also wants to avoid the Reserve Bank having to raise interest rates further — following 13 hikes since May 2022 — so it’s keen to exert downward pressure on prices wherever possible. Since his election win in May 2022, Albanese has watched his initially high approval ratings steadily slide. In a Newspoll released in November, Albanese’s Labor party had drawn level with the opposition Liberal-National Coalition. As a result, the prime minister has made cost-of-living his primary focus at the start of 2024, stepping up communications via multiple press conferences to highlight his government’s policies to ease the strain on households. The blitz also comes ahead of a March 2 by-election in the seat of Dunkley, in the southeastern state of Victoria. While the government is not at risk of losing its majority in Parliament, the vote is seen as a test for both Albanese and Liberal leader Peter Dutton, and the prime minister is keen to hold onto the seat. Story continues Australia’s next election is due around early 2025. Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P. View comments

2024-01-22 02:47:50+00:00

{"Bitcoin": [1496]}

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China Builder Redsun’s Parent Faces Liquidation Court Petition

https://finance.yahoo.com/news/china-builder-redsun-parent-faces-024750286.html

Bloomberg

https://www.bloomberg.com/

(Bloomberg) -- The parent of Chinese developer Redsun Properties Group Ltd. has received a winding-up petition in a Hong Kong court, joining a growing list of the country’s distressed firms facing legal threats in the city. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hong Kong Stocks at 36% Discount Show True Depth of China Gloom Morgan Stanley, JPMorgan Say Buy the Dip After Treasury Rout Gloom Over China Assets Is Spreading Beyond Battered Stocks Hedge Funds Rake in Huge Profits Betting on Catastrophe Risk The court is scheduled to hold a hearing of the petition against Hong Yang Group Co. on March 27, according to the city’s judiciary website. Serica Agency Ltd. is the other involved party in the case. Hong Yang is the parent of Redsun Properties Group Holdings Ltd., which controls Hong Kong-listed Redsun Properties Group Ltd. Both Hong Yang and Redsun Properties Group Holdings are the guarantors of a defaulted $275 million dollar bond that was originally due in 2022, Bloomberg-compiled data show. Creditors frustrated by the prolonged restructuring progress of some Chinese companies have increasingly turned to Hong Kong courts to recoup their losses. At least three Chinese developers or their units have received liquidation orders from the city’s courts. The winding-up petition case number is HCCW 42/2024. Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P. View comments

2024-01-22 02:56:33+00:00

{"Bitcoin": [3782]}

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Amer Sports to weigh raising up to $1.8 billion in US IPO, sources say

https://finance.yahoo.com/news/amer-sports-weigh-raising-1-023054164.html

Bloomberg

https://www.bloomberg.com/

(Bloomberg) — Amer Sports Inc., the maker of Wilson tennis rackets and Salomon ski boots, is seeking to raise as much as $1.8 billion in a US initial public offering, according to people familiar with the matter. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hedge Funds Rake in Huge Profits Betting on Catastrophe Risk Gloom Over China Assets Is Spreading Beyond Battered Stocks Sony Sends Termination Letter to Zee Over India Merger Morgan Stanley, JPMorgan Say Buy the Dip After Treasury Rout The company could market about 100 million shares in a range of $16 to $18 each, the people said, asking not to be identified as the information is private. Terms of the potential offering may be announced as soon as in the coming days, the people said. Details of the share sale including size and timing may change, the people said. A representative for Amer Sports couldn’t immediately comment. The listing would be the biggest in the US since a crop of IPOs led by semiconductor designer Arm Holdings Plc’s $5.23 billion offering in September failed to deliver a hoped-for rebound in the market. While Arm’s shares have since gained 54% from the offer price, Birkenstock Holding Plc had gained less then 1% as of Friday, while Instacart and Klaviyo Inc. remained well below their offer prices. The largest IPO since Birkenstock’s $1.48 billion listing in October was Thursday’s $1 billion offering of American depositary shares by investors in Kazakhstan mobile app company Kaspi.kz. Also this month, Smith Douglas Homes Corp. raised about $162 million. Read More: IPO Market Rebound Hinges on Post-Debut Trading, Retail’s Return This week, KKR & Co.-backed BrightSpring Health Services Inc. and clinical stage biopharmaceutical company CG Oncology Inc. are scheduled for share sales. Including a sale of convertible securities, BrightSpring is seeking to raise as much as $1.36 billion on Thursday, the day after CG Oncology’s listing targeting $212 million is set to price. Story continues Amer Sports, which is backed by China’s largest athletic-apparel producer Anta Sports Products Ltd., owns brands including Louisville Slugger baseball bats, Arc’teryx outdoor gear and Atomic winter equipment. From Finland to China Founded in Finland, Amer Sports has bolstered its owned retail footprint to include 138 Arc’teryx stores, 114 Salomon stores and nine Wilson owned as of Sept. 30. It’s also found Greater China to be a spot of growth, driving nearly one-fifth of its total revenue in the first nine months of 2023 with “significant runway for growth in the region” as it opens more stores and scales its e-commerce platform, its filings show. The company had a net loss of about $115.6 million on revenue of $3.05 billion for the nine months ended Sept. 30, according to the filings. It sees a collective market opportunity across its brands of approximately $522 billion as of 2022. Amer Sports has more than 10,800 employees globally, and offices in Helsinki, Munich, Krakow and Shanghai, according to a statement. A consortium led by Anta acquired Amer Sports for about $5.2 billion in 2019 as part of an effort to bring high-end athletic equipment to China’s increasingly wealthy middle class. The buyer group also included Tencent Holdings Ltd. and Chip Wilson, the billionaire founder of yoga-apparel retailer Lululemon Athletica Inc. Amer Sports’ IPO is being led by Goldman Sachs Group Inc., Bank of America Corp., JPMorgan Chase & Co. and Morgan Stanley. The company plans for its shares to trade on the New York Stock Exchange under the symbol AS. —With assistance from Bailey Lipschultz and Ryan Gould. Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P.

2024-01-22 03:41:58+00:00

{"Bitcoin": [1902]}

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Axiata’s Link Net Considering Sale of Stake in Indonesia Fiber Business

https://finance.yahoo.com/news/axiata-net-considering-sale-stake-015208952.html

Bloomberg

https://www.bloomberg.com/

(Bloomberg) -- Indonesian internet provider PT Link Net is considering selling a stake in its fiber business to raise as much as $500 million to fund an expansion, according to people with knowledge of the matter. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hong Kong Stocks at 36% Discount Show True Depth of China Gloom Morgan Stanley, JPMorgan Say Buy the Dip After Treasury Rout Gloom Over China Assets Is Spreading Beyond Battered Stocks Hedge Funds Rake in Huge Profits Betting on Catastrophe Risk The unit of Axiata Group Bhd., Malaysia’s biggest wireless carrier, is seeking an adviser to help with a potential sale, which could raise $400 million to $500 million, the people said, asking not to be identified discussing private information. Considerations are preliminary and Link Net could decide against a deal, the people said. Link Net declined to comment. A representative for Axiata said Link Net requires capital to accelerate its “fiber build,” but didn’t provide details on the size of the potential fundraising. “Amongst many sources of capital, inviting investors to partner with us in this growth opportunity is one such source,” the spokesperson said. Axiata Group’s shares jumped 3.5% Monday morning, touching the highest in five months. Read More: Malaysia’s Axiata Is Said to Weigh Options for Indonesian Units As part of a non-binding deal in December, Link Net agreed to transfer its fixed broadband business to Indonesian mobile operator PT XL Axiata. Link Net has a market value of about 3.5 trillion rupiah ($224 million). Its share price has fallen 43% over the past 12 months. XL Axiata rose 2.5% Monday. --With assistance from Fathiya Dahrul. (Updates share price moves in fifth and seventh paragraphs.) Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P.

2024-01-22 04:29:10+00:00

{"Bitcoin": [1495]}

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Australia Orders Return of Livestock Ship After Red Sea Turmoil

https://finance.yahoo.com/news/australia-orders-return-livestock-ship-042910031.html

Bloomberg

https://www.bloomberg.com/

(Bloomberg) -- Australia ordered a ship transporting sheep and cattle to return to the country after turmoil in the Red Sea led to the livestock carrier diverting from its original destination in the Middle East toward Africa. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hong Kong Stocks at 36% Discount Show True Depth of China Gloom Morgan Stanley, JPMorgan Say Buy the Dip After Treasury Rout Gloom Over China Assets Is Spreading Beyond Battered Stocks Hedge Funds Rake in Huge Profits Betting on Catastrophe Risk The exporter has been told to immediately return the animals to Australia to ensure their health and welfare, according to a statement from the agriculture department on Saturday. The livestock are on the Bahijah, which left Fremantle port in Western Australia for Aqaba, Jordan, on Jan. 5. The agriculture department also said that biosecurity risks associated with the livestock and the vessel had been considered, but the agency hasn’t identified any basis on which these couldn’t be managed within Australia. The Australian government is seeking to phase out the export of sheep by sea to improve animal welfare, following concerns over previous livestock deaths during transport. The live sheep trade has dwindled over the past 20 years. Read More: Red Sea Unrest Is Bad News for World’s Fragile Food Supply Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P. View comments

2024-01-22 05:00:00+00:00

{"Bitcoin": [5283]}

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EU to Upgrade Economic Security to Shield Key Tech From China

https://finance.yahoo.com/news/eu-upgrade-economic-security-shield-050000146.html

Bloomberg

https://www.bloomberg.com/

(Bloomberg) -- The European Union will take the next step this week in its effort to recreate itself into a global power that can leverage its massive single market to rebuff coercive actions from the likes of Beijing, Moscow and even Washington. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hong Kong Stocks at 36% Discount Show True Depth of China Gloom Morgan Stanley, JPMorgan Say Buy the Dip After Treasury Rout Gloom Over China Assets Is Spreading Beyond Battered Stocks Hedge Funds Rake in Huge Profits Betting on Catastrophe Risk The EU’s executive arm will unveil a proposal on Wednesday with rules aimed at boosting its power to screen and potentially block foreign investment in sensitive industries — including from foreign-controlled companies within the bloc — as well as considering the creation of a fund to increase the development of technologies that can serve both military and civil purposes, according to a draft of the plan seen by Bloomberg. The Covid pandemic and Russia’s war against Ukraine exposed the EU’s over-reliance on supplies from other nations, as well as trade vulnerabilities with partners that don’t share the bloc’s values. That’s focused attention on the need to defend the EU’s economic security, both to safeguard the supply of imported technology and to make sure that competitors can’t gain control of Europe’s strategic industries. The new strategy seeks to address “risks to EU economic security, while ensuring that the EU remains a most attractive destination for business and investment,” according to the draft, which is still subject to change. The goal would be to strengthen the EU and member states’ ability to address “ongoing risk assessments related to supply chains, technologies, infrastructures and economic coercion.” European Commission President Ursula von der Leyen warned last week of “the greatest risk to the global order in the post-war era.” Read more: Red Sea Shipping Chaos Worsens as US Strikes Broaden Crisis Story continues Critical technologies identified by the EU include advanced semiconductors, artificial intelligence, quantum technologies and biotechnologies. But the commission won’t decide until February whether further action is needed to boost technology security and mitigate risks based on the conclusions of the risk assessments on these areas that run jointly with member states. This week’s package will include five initiatives, including: Strengthening of the foreign direct investment regulation; Coordination of export controls; Options to support the research of dual-use technologies; Ideas to improve research security; First steps toward a new tool to control leaks of sensitive know-how to adversaries through European investments overseas. Assertive Trade The economy the EU is trying to shield is in much worse shape than that of China or the US. The euro area was probably in a recession in the second half of last year and grew just 0.6% in 2023 as a whole. That compares with expansion rates above 5% for China and more than 2% in the US. The economic security package will build on the EU’s efforts to date to become a more robust global actor, even as it remains a champion of multilateralism. Read more: EU, China Raise EV and Liquor Probes in Davos Meeting The commission in 2021 outlined a new trade doctrine in which assertiveness was added to the open and green mix, and it’s expanded its economic toolbox to counter so-called bullies, including China, with a new anti-coercion instrument. Since it started buying key European companies over the past decade — including Germany robot-maker Kuka in 2016 — China’s rise has led the bloc to look for ways to strengthen its economic arsenal. Relations worsened since the EU in 2019 labeled Beijing as a systemic rival, and suspended a bilateral investment agreement amid a tit-for-tat sanction dispute over human rights. As a result, the EU has pursued a strategy of de-risking from China instead of fully decoupling, in spite of pressure from the more aggressive stance taken by the US. But the bloc is also competing with Washington. The two allies have failed to solve a years-long dispute over steel and aluminum tariffs, and are competing for resources and companies to accelerate the development of clean and digital technologies. Read more: How World Fell Into a Subsidy Race for Climate Goals: QuickTake The EU remains at a disadvantage due to its high level of energy dependence and the lack of many of the critical materials needed for the green and digital transitions. The pandemic also exposed the vulnerabilities of the EU’s supply chains. Those tensions have brought efforts to remain competitive in a hostile environment to the top of Europe’s agenda, with trade now seen as an essential tool to secure resources and supply chains, and to cement alliances. The EU’s trade chief, Valdis Dombrovskis, said on Friday that 2024 will be a challenging year, with the war in Ukraine, soon to enter a third year, and the Middle East conflict having the potential to disrupt trade and supply chains even further. --With assistance from Zoe Schneeweiss. Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P.

2024-01-22 05:14:42+00:00

{"Bitcoin": [2417]}

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UBS Wealth Arm Says China Stock Recovery Needs Punchier Policies

https://finance.yahoo.com/news/ubs-wealth-arm-says-china-051442555.html

Bloomberg

https://www.bloomberg.com/

(Bloomberg) -- The benefits of monetary easing by the People’s Bank of China have already been priced in and “punchier” policies are needed to revive the country’s equities, according to the global wealth management arm of UBS Group AG. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hong Kong Stocks at 36% Discount Show True Depth of China Gloom Morgan Stanley, JPMorgan Say Buy the Dip After Treasury Rout Gloom Over China Assets Is Spreading Beyond Battered Stocks Hedge Funds Rake in Huge Profits Betting on Catastrophe Risk Authorities need to adopt a more sustained and “holistic” approach to tackle the core issues that are affecting the economy, said Eva Lee, head of Greater China equities at UBS Global Wealth Management. In the long run, Chinese stocks are still the firm’s most preferred market and expected to deliver a return of around 10% this year. A cut to banks’ reserves or the one-year policy rate has been priced in, and “is not going to really excite the market,” Lee said in a briefing on Friday. In this environment, the money manager is staying defensive on Chinese equities and favors state-owned banks which offer attractive dividend yields, sectors that generate a recurring cash flow and new economy names that are actively buying back shares. The gloom surrounding China’s assets is deepening as a long-running property slump, geopolitical risks and a lack of massive stimulus cloud the outlook. Some $6.3 trillion has been erased from the market value of Chinese and Hong Kong stocks since a peak reached in 2021, while the offshore yuan has weakened 1% this year after dropping almost 3% in 2023. “If there is some sense that maybe the near-term pain is a bit too much that the National People’s Congress can have something punchier, that is the upside to break out of” a defensive stance, Min Lan Tan, head of Asia Pacific chief investment office, said at the same briefing. China’s $6.3 Trillion Stock Rout Getting Uglier by the Day Story continues Investors are looking for larger fiscal steps such as more support through a pledged supplementary lending facility or comprehensive reforms to show that the government is re-prioritizing high growth, and not just keeping the pace of expansion at around 4.5%, Tan added. Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P.

2024-01-22 06:03:58+00:00

{"Bitcoin": [1991]}

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Russian Tycoon Rybolovlev to Explore Sale of AS Monaco Football Club

https://finance.yahoo.com/news/russian-tycoon-rybolovlev-explore-sale-060358413.html

Bloomberg

https://www.bloomberg.com/

(Bloomberg) -- Billionaire Dmitry Rybolovlev has hired an advisory firm to study the possibility of a sale of his controlling stake in AS Monaco football club amid interest from potential buyers. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hong Kong Stocks at 36% Discount Show True Depth of China Gloom Morgan Stanley, JPMorgan Say Buy the Dip After Treasury Rout Gloom Over China Assets Is Spreading Beyond Battered Stocks Hedge Funds Rake in Huge Profits Betting on Catastrophe Risk French newspaper Les Echos reported on Sunday that Rybolovlev — one of a few Russian tycoons who is not under sanctions as he left the country over a decade ago — got at least two proposals to sell his stake from American investors last year. Rybolovlev’s company appointed investment bank Raine Group to serve as its exclusive financial adviser as it explores “strategic alternatives for its stake in the club after receiving unsolicited inbound interest,” according to an emailed statement from the tycoon’s family office. “There can be no assurances that the strategic review will result in any transaction involving the club,” it added without providing further details. The 57-year-old tycoon, who lives in Monaco and made his fortune in the Russian potash industry, acquired a 67% stake in AS Monaco in 2011 and pledged at the time to invest at least 100 million euros ($130 million) into the club over the next four years. AS Monaco is one of the most successful clubs in France’s top league and has won eight titles so far. Raine has built a reputation as the go-to adviser on large sports deals, most recently on Manchester United’s stake sale to billionaire Jim Ratcliffe. In 2022, it handled the sale of Chelsea FC on behalf of Russian billionaire Roman Abramovich. READ: Russian Billionaire Blames Sotheby’s for Art Deal Frauds Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P.