Grupo LALA Reports Fourth Quarter 2020 Results

Yahoo Finance
Stock market news live updates: Stock futures open higher, shaking off earlier losses
Stocks fell Monday while commodity prices rallied, as rising Treasury yields and expectations of higher inflation weighed on equity prices.
1h ago
Bloomberg
Copper Surges Above $9,000 as Shortfall Concern Spurs Rally
(Bloomberg) -- Copper rose above $9,000 a metric ton for the first time in nine years, taking another step closer to an all-time high set in 2011 as investors bet that supply tightness will increase as the world recovers from the pandemic.Copper is surging amid a broad rally in commodities from iron ore to nickel, while oil has gained more than 20% this year. The bellwether industrial metal has doubled since a nadir in March, boosted by rapidly tightening physical markets, prospects for rebounding economic growth and the expectation that a years-long era of low inflation in key economies may be ending.Investors are also piling into copper on a bet that demand will surge in the coming years as governments unleash unprecedented stimulus programs targeting renewable energy and electric-vehicle infrastructure, which will require huge volumes of the raw material.“The list of bullish factors for copper is extremely long,” Max Layton, head of EMEA commodities research at Citigroup Inc., said by phone from London. “A lot of the most bullish developments are really going to play out in the next few months, and therefore we think it’s going to be sooner rather than later that it gets to $10,000.”In some areas of the physical copper market, supply conditions are the tightest in years and may come under even more pressure as smelters in top consumer China face shrinking profit margins for processing raw ore into refined metal. Copper treatment charges, an indicator of refining margins, are at $45.50 a ton, the lowest since 2012. One leading supplier is considering cutting output, in a potential blow to buyers.Surging prices are a boost for miners, driving up stock prices and raising the prospect of more blockbuster returns to shareholders. Jiangxi Copper Co., China’s top producer, gained as much as 20% in Hong Kong to the highest level since 2012, while U.S. producer Freeport-McMoRan Inc. closed at the highest since 2014 on Friday.Inflation ThreatWith inflation expectations already increasing around the world, the sharp rally in commodities including copper could soon start filtering into the price of end-use goods, raising costs for governments with big infrastructure spending plans.The risk of faster inflation has prompted a selloff in bonds globally, with the benchmark 10-year U.S. Treasury yield jumping to the highest in about a year on Monday. The gap between 5-year and 30-year yields reached the widest since October 2014, moving past yet another historic level on signs of strength in the reflation trade.Wilting real returns in the bond markets could drive further inflows into copper, creating an inflation feedback loop and intensifying the clamor for hard assets as prices rise.There are already signs of emerging tightness on the London Metal Exchange, as spot contracts trade at a premium to futures. That pattern, known as backwardation, was a feature of the market during a record-breaking boom in Chinese demand last year, and suggests that spot demand is once again outpacing supply as exchange inventories run low.Copper for delivery in three months rose 2.1% to settle at $9,097 a ton at 5:51 p.m. in London after touching $9,269.50, the highest since 2011. The metal is on pace for an unprecedented 11th straight monthly gain. The current price record of $10,190 was reached in February 2011.In China, the SHFE contract hit the daily limit. Most other metals rose, with tin climbing to the highest since 2011.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
6h ago
Reuters
Explainer: U.S. Treasury's cash drawdown - and why markets care
The U.S. Treasury is due to run down a $1.6 trillion bank account at the Federal Reserve as government spending ramps up in the months ahead - a move some analysts warn may crush short-term money rates further and flood financial markets with cash. The Treasury said recently it would halve its extraordinarily large balance at the so-called Treasury General Account (TGA) by April and cut it to $500 billion by the end of June. The U.S. government runs most of its day-to-day business through the TGA - managed by the New York Fed and into which flow tax receipts and proceeds from the sale of Treasury debt.
7h ago
Bloomberg
Texas Deep Freeze Delivers Macquarie $210 Million Windfall
(Bloomberg) -- The Texas deep freeze that upended the U.S. energy market has delivered Macquarie Group Ltd. a windfall of as much as A$270 million ($210 million) amid wild swings in gas and electricity prices.The Sydney-based investment bank on Monday raised its profit forecast, citing increased demand for its gas and power supply services in the U.S. At the same time, Griddy Energy, a household supplier in Texas that’s backed by Macquarie Energy is handing out massive electricity bills to residents who used power when wholesale prices were spiking.Read more about soaring Texas electricity bills hereMacquarie is the second-biggest physical gas supplier in the U.S. behind BP Plc, and typically moves gas between different parts of the country based on last-minute customer needs.Last week the bank profited as its major clients -- including energy companies -- sought to buy and move higher-than-expected volumes of gas and electricity to their customers amid the crisis in Texas, according to a person with knowledge of the matter. The price of physical gas, which is normally less than $3 per million British thermal units, skyrocketed to as much as $1,250 in some locations last week.As the cold blast froze oil and gas wells, sent electricity prices to record highs and caused blackouts for 5 million homes and businesses, more of Macquarie’s customers ordered gas for Texas that had to be shipped from other parts of the country, the person said.Consumers are now feeling the impact of the huge price swings. Griddy customers in Texas are being handed massive utility bills some as high as $8,000. The supplier charges electricity based on real-time prices in wholesale markets, therefore passing the costs straight on to consumers. Griddy saw the problem developing and even urged its retail customers last weekend to switch to another provider. By Sunday last week, 20% managed to do so.A Giant Flaw in Texas Blackouts: It Cut Power to Gas SuppliesMacquarie’s commodities business is unusual among banks in the U.S., where counterparts such as Goldman Sachs Group Inc. and Morgan Stanley have had to curb commodities trading activities to satisfy regulators. But Macquarie, which expanded its commodities operations by purchasing Cargill Inc.’s power and gas trading business in the U.S. in 2017, doesn’t trade commodities with its own balance sheet, the person said.In its profit upgrade, Macquarie said the “extreme winter weather conditions in North America have significantly increased short-term client demand for Macquarie’s capabilities in maintaining critical physical supply across the commodity complex and particularly in relation to gas and power.”After two weeks ago saying earnings in the year ending March 31 will be “slightly” down on last year’s result, Macquarie on Monday forecast profit would now be up 5%-10%. That implies net income of about A$2.87 billion ($2.3 billion) to A$3 billion, compared to A$2.73 billion a year earlier.The improved outlook sent Macquarie shares to a one-year high in Sydney trading. The stock was up 3.7% to A$147.56 at 3:50 p.m. in Sydney, the highest since Feb. 21, 2020.(Adds information on electricity bills in sixth paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
13h ago
CoinDesk
Bitcoin Faces Price Turbulence as Market Liquidity Falls, Says JPMorgan
With liquidity falling in the bitcoin market, smaller trades can have a relatively large price impact.
14h ago
Bloomberg
U.K.’s Vaccine Milestone Ignites World-Beating Market Rally
(Bloomberg) -- A world-leading vaccine campaign is bringing U.K. markets back to life.With one in three adults receiving at least one shot, Prime Minister Boris Johnson has just set out a roadmap for lifting lockdown -- giving cross-asset bulls fresh ammo.Among the biggest moves of late: The pound has rallied faster than any other major currency this year. U.K. stocks have been generating outsized gains in dollar terms. Companies have been enjoying a borrowing bonanza that’s looking historic.For many investors who fled in the aftermath of the 2016 Brexit vote, buying Britain looks like a safer bet today.“We refrained from being overweight U.K. equities for many years as it has significantly lagged other regions ever since the Brexit referendum,” said Michael Herzum, head of macro strategies at Union Investment in Frankfurt. He’s now buying the FTSE 250 while selling the Eurostoxx Index.Here’s how the catch-up trade is playing out.Currency SupremacyAs the country delivers one of the fastest immunization programs in the world, the pound is one of the hottest trades in currency markets -- gaining around 2.5% against the dollar this year.Just last week, it breached the $1.40 threshold for the first time since 2018, while surging to the strongest versus the euro since the depths of the pandemic panic last March.The sterling rally may now have fresh legs, as the U.K.-euro area monetary path diverges.“Rates markets are starting to price in a future decoupling between the ECB and the BOE policy outlook, helped by the BOE effectively killing market speculation on negative rates,” said Valentin Marinov, head of G-10 currency research at Credit Agricole.The yield on benchmark U.K. bonds has also risen faster than European peers and U.S. Treasuries in 2021, as markets price in a strong economic rebound and rising inflation expectations.Another gauge of the business cycle signals more good news. The nation’s yield curve -- as measured by the difference between the rates on five and 30-year debt -- is the steepest since 2018 led by moves in longer maturities.FTSE FansEven U.K. stocks are finding more love these days. For years billions have fled the Brexit-lashed market -- dubbed the least-loved region in the world.Now, negative bets are on the wane, according to this month’s Bank of America Corp. survey. A net 10% of respondents have bearish positioning compared with 34% three months ago.Sentiment is following price. While the FTSE 100 is lagging the Stoxx Europe 600 Index this year, on a dollar basis the index is besting a slew of companion gauges in the region.The rise in the British currency has been driving the outperformance of the more domestically exposed FTSE 250 against the exporters-geared FTSE 100 since the market bottom in March 2020.And there may be more juice left in the rally yet with valuations that are cheaper and dividend yields higher than global peers.Borrowing BonanzaAll this is helping U.K borrowers. At 3.8%, the average yield on sterling junk bonds, an indication of borrowing costs, is hovering near all-time lows.That’s pushing sales of corporate bonds in sterling to the fastest annual start in five years. Supermarket chain Asda Group Ltd. showed market hospitality for U.K. risk this month, pricing the largest-ever corporate bond in the British currency at 2.25 billion pounds ($3.15 billion), as part of its buyout financing.Sterling junk debt offers a yield pick-up of almost 180 basis points after currency-hedging costs are taken into account and have outperformed peers in Europe -- a selling point for investors outside the country.“A Brexit deal and the vaccine success means a lot of investors are starting to revisit,” the U.K. market, said Nicolas Trindade, a portfolio manager at Axa Investment Managers, which manages 758 billion pounds ($1.1 trillion).It’s a different story for investment-grade securities that are more prone to rate risk than their euro counterparts. The longer average duration on sterling corporate debt means it suffers as gilt yields rise -- for investors that’s inflicted the biggest year-to-date loss since 2008.(Updates with U.K. plan for economic reopening in second paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
8h ago
Quartz
HSBC is facing dueling loyalty tests it can only fail
When Ted Hui arrived in the UK last December after fleeing Hong Kong, he had a rude shock: not only was his HSBC bank account frozen, but his bank balance was at zero. A key figure in Hong Kong’s democracy movement who took on a visible role as a frontline mediator during the protests in 2019, Hui had feared something like this would happen. In recent months, HSBC has found itself under intense pressure from politicians in the West who accuse the bank of facilitating China’s authoritarian crackdown on Hong Kong.
9h ago
BBC
Brexit: 1,000 EU finance firms 'set to open UK offices'
Applications to operate via a UK base suggest London will remain a key financial centre, a consultancy says.
5h ago
Yahoo Finance
'Retail suckers' with FOMO will eventually get crushed on Bitcoin, says Roubini
'The reality is nobody knows what the value of this pseudo-asset is. It doesn’t have any value cause it doesn’t have any income, doesn’t have any use, doesn’t have any utility. So it’s a speculative play on a bubble that is self-fulfilling,' says Roubini.
3h ago
Bloomberg
About 1,000 Finance Firms Eyeing Post-Brexit Outposts in U.K.
(Bloomberg) -- Around 1,000 European Union finance firms are expected to open their first offices in the U.K. after losing their passporting rights because of Brexit.Roughly two-thirds of the 1,500 money managers, payment firms and insurers that have applied for regulatory permission to continue operating in the U.K. previously had no physical operations in Britain, according to Financial Conduct Authority records obtained by Bovill, a financial consultancy.The firms “were operating on a services passport prior to Brexit, which means they did not have a permanent office in the U.K.,” said Ed O’Bree, partner at Bovill. “These firms are therefore likely to invest in real estate and professional services advice as they set up a U.K. office for the first time.”Irish, French and German companies together accounted for 584 of the 1,500 applications for authorization to do business in the U.K. Cyprus, which is a popular venue for trading platforms, was the next most common, with 151. The data show 100 retail and wholesale banks seeking to increase their presence in the U.K., as well as over 400 firms in the insurance industry.The numbers are in line with data from early last year when Bovill first published the data on firms. The influx is a potential boon to Britain’s finance sector, whose decades-long dominance of European finance is under threat after Brexit.This year, London lost its crown to Amsterdam as Europe’s top place to buy and sell stock, traders have shifted interest-rate swaps out of the U.K. and the relocation of bankers into the bloc continues.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
1d ago
Reuters
HSBC to announce exit from U.S. retail banking, reshuffles top jobs
HSBC is set to withdraw from U.S. retail banking, a source familiar with the matter told Reuters on Monday, as Europe's biggest bank seeks to dispose of a business that has long underperformed. The exit from the U.S. consumer business will form part of the lender's strategy update due on Tuesday, as Chief Executive Noel Quinn seeks to cut costs, boost fee income and continue the lender's shift towards Asia. The sale or closure of its around 150 remaining branches in the United States, after it shuttered 80 last year, would mark the end of HSBC's struggle to turn around a business which has struggled to make inroads against incumbent domestic rivals.
12h ago
BBC
'They wanted to jail a banker - I was that banker'
Tom Hayes, jailed for rigging interest rates, tells the BBC fresh evidence will show his conviction was unsafe.
9h ago
Reuters
Royal Caribbean advance bookings rise with eyes on vaccinations
The company's shares, down 44% last year, soared 9% in morning trading, as Royal Caribbean said it recorded a 30% increase in new bookings since the beginning of the year when compared to November and December. Analysts have also tipped Royal Caribbean and its peers Carnival Corp and Norwegian Cruise Line Holdings Ltd to resume voyages gradually in the back half of this year, after the pandemic-triggered months-long halt.
11h ago
MoneyWise
Bad money moves: Warren Buffett, Jim Cramer and Suze Orman on their biggest investing regrets
Even the most successful investors fall flat. Luckily, we can learn from their mistakes.
1d ago
Reuters
Former Bank of England Governor Carney joins board of digital payments company Stripe
Mark Carney, former head of the UK and Canadian central banks, has joined the board of U.S. digital payments company Stripe Inc, days after the company was reported to be planning a primary funding round valuing it at over $100 billion. "Regulated in multiple jurisdictions and partnering with several dozen financial institutions around the world, Stripe will benefit from Mark Carney's extensive experience of global financial systems and governance", the company said on Sunday, confirming a report by the Sunday Times newspaper. Forbes magazine had reported on Wednesday that investors were valuing Stripe at a $115 billion valuation in secondary-market transactions.
2d ago
CoinDesk
Nigeria’s Crypto Ban Fuels Mistrust in Government
A central bank ban on crypto transactions is at odds with the government's goal to build a digital economy around blockchain technology.
4h ago
Bloomberg
Central Banks Are Already Facing Up to Threat of Rising Yields
(Bloomberg) -- Reflation trades reached a fever pitch in Australia’s bond markets Monday in a burst of activity that will be hard for global policy makers to ignore.Ten-year yields climbed the most since the height of the market dislocation in March 2020, while benchmark three-year yields inched further above the Reserve Bank of Australia’s 0.1% target. And this was after the RBA ended a two-month hiatus by stepping back into the market to purchase A$1 billion ($790 million) of the shorter-date debt.The moves underscore the challenge to central banks as they strive to keep borrowing costs low for years to come while investors position for a more immediate return of inflation. Global vaccination programs and talk of another commodities supercycle have put Australia at the forefront of bets for rebounding growth and rising prices, making the RBA’s job particularly difficult. But it’s unlikely to be unique.“Commodity prices are showing us a clear reflationary environment,” said Chris Rands, a portfolio manager at Nikko Asset Management in Sydney. “This is all about a global reflation story -- the flow of positive vaccine news is saying that ‘this isn’t crazy’.”Expectations of more economic stimulus from the Biden administration and positive signs on containing Covid-19 are pushing rates higher globally, with the U.S. benchmark 10-year yield hitting a one-year high of 1.39% in Asia trading.Australia’s three-year yield edged up to 0.13% Monday while the 10-year yield jumped 17 basis points to 1.6%, a level last seen on March 19. Excluding that day, it’s the highest 10-year yields have been since mid 2019. While the central bank has signaled that rates won’t begin rising for at least three years, money markets are now pricing in about a 30% chance of a hike by mid next year.“It’s entirely reasonable for markets to start pricing in some risk of the RBA hiking rates,” said Prashant Newnaha, senior rates strategist at TD Securities in Singapore. “Markets are going to price in increasingly higher odds of the RBA having to pull the trigger before their three years are up.”Global DimensionEurope has also been caught up in the bonds selloff, with German 10-year yields, the region’s benchmark, climbing to the highest since mid 2020.As the euro area’s yields track those on Treasuries higher, it faces an “undesirable tightening of monetary conditions,” according to Erik Nielsen, group chief economist at Unicredit SpA.If they continue to climb in coming weeks, “it’ll leave the ECB no choice but to step up their purchases,” Nielsen wrote in an investor note Sunday. “I would be surprised if we don’t hear the first warning shots from key members within the next couple of weeks.”Some Fed officials, though, are willing to accept the rising yields as a sign of optimism in the recovery. That’s the view of Federal Reserve Bank of New York President John Williams, as explained in an interview with CNBC Friday.And Australia’s policy makers may yet disappoint rates traders preparing for a shift.“The central banks fear that the bond market is jumping at what will be a transitory hike in inflation over the months ahead,” said Shane Oliver, chief economist at AMP Capital Investors Ltd. in Sydney. “They would rather look through any short term spike in inflation, and allow the recovery to use up spare capacity and generate higher wages growth before tightening -- and this may still be several years away.”What Bloomberg Economics Says...“Rising yields are likely to pressure further enlargement of the RBA’s recently-expanded bond purchase program, in an effort to limit further currency appreciation. There is also an increased risk of an earlier than planned announcement of a switch the yield target to the November 2024 bond..”-- James McIntyre, economistFor the full note, click here.Read More: Bond Traders Can See RBA Yield Curve Control’s Use By DateStill, Australia’s success in containing Covid-19 has rapidly restored sentiment among households and businesses. That’s helped unemployment fall more than a percentage point from its pandemic peak of 7.5%, and rising property prices and cashed-up consumers are a potent mix for economic expansion.This prompted Westpac Banking Corp. economist Bill Evans to last week raise his forecast for Australia’s 10-year yield to 1.9% by the end of this year, from 1.55% earlier.In addition to purchases to control the three-year yield, the RBA is still conducting regular purchases of longer-dated bonds under quantitative easing, and bought another A$2 billion of them on Monday.(Updates with Europe, U.S. in paragraphs 8-11.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
15h ago
Reuters
Brazil markets tank as Bolsonaro shakes up Petrobras to cut energy costs
Brazilian financial markets went into a tailspin on Monday, as investors dumped the country's currency and stocks, while pushing up interest rates, after President Jair Bolsonaro moved late on Friday to sack the head of state-run oil firm Petrobras following weeks of clashes over fuel price hikes. The right-wing populist's intervention in one of Brazil's most valuable companies, along with a vow to reduce prices in the power sector too, cast growing concern on the government's commitment to free markets. Several brokerages downgraded Petroleo Brasileiro SA, as Petrobras is formally known, and Bank of America cut Brazilian stocks to 'marketweight' in its Latin American portfolio, excluding Petrobras and state power company Eletrobras entirely.
6h ago
CoinDesk
Bitcoin Transfers Worth Billions Could Mean More Selling Pressure
Blockchain data showed investors moving the cryptocurrency onto exchanges, ostensibly preparing for a quick sale.
7h ago
Reuters
OPEC, U.S. oil firms expect subdued shale rebound even as crude prices rise
OPEC and U.S. oil companies see a limited rebound in shale oil supply this year as top U.S. producers freeze output despite rising prices, a decision that would help OPEC and its allies. OPEC this month cut its 2021 forecast for U.S. tight crude, another term for shale, and expects production to decline by 140,000 barrels per day (bpd) to 7.16 million bpd. The U.S. government expects shale output in March to fall about 78,000 bpd to 7.5 million bpd and also sees an annual drop.
18h ago

*MXN$ in millions*	Q4'19	% Sales	Q4'20	% Sales	Var. %	FY'19	% Sales	FY'20	% Sales	Var. %
Net Sales	19,217	100%	20,654	100%	7.5%	75,784	100%	80,831	100%	6.7%
Gross Profit	6,463	33.6%	7,011	33.9%	8.5%	26,608	35.1%	27,501	34.0%	3.4%
Operating Income ⁽¹⁾	615	3.2%	1,380	6.7%	124.5%	5,029	6.6%	5,144	6.4%	2.3%
EBITDA ⁽¹⁾	1,429	7.4%	2,221	10.8%	55.4%	8,100	10.7%	8,335	10.3%	2.9%
Net Income ⁽¹⁾	3	0.0%	616	3.0%	22,343%	1,739	2.3%	1,889	2.3%	8.6%

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Grupo LALA Reports Fourth Quarter 2020 Results

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(1)	Normalized excludes: Q4'20 CR Closure and NIC Impairment, Q3'20 MX one-time tax expense, Q2'20 US accrual cancellation, Q1'20 BR tax benefit, and Q4'19 BR tax benefit