SHAREHOLDER ALERT: BLUE HSACW APA: The Law Offices of Vincent Wong Reminds Investors of Important Class Action Deadlines

Reuters
Thai households struggle with record debt, COVID-19 increases burden
"I'm so heavily indebted and don't know what to do," said the 51-year-old, single mother of two, who travelled from the northern province of Kamphaeng Phet to join a demonstration of indebted rice growers in Bangkok late last month, asking the government to help reduce their debt burden. Such protests have put further pressure on the Thai government, which is already grappling with mounting pro-democracy demonstrations and struggling to revive the pandemic-hit economy. The level of household debt is the highest since the central bank began keeping records in 2003.
4h ago
CoinDesk
Crypto Long & Short: Bitcoin Outflows Aren’t the Bullish Signal You Think They Are
Exchange flows shift as tether continues to replace bitcoin, building quote currency dominance in altcoin trading.
6h ago
Reuters
Hertz selects Chapter 11 exit plan backed by Centerbridge, Warburg, Dundon
The proposed deal, which is subject to approval by the U.S. bankruptcy court for the district of Delaware, is supported by holders of over 85% of the company's unsecured notes, Hertz said in a statement.
1d ago
MoneyWise
If you have $1,000 in your account, make these 6 money moves now
While it feels great to see cash in the bank, you shouldn’t just let it sit there.
1d ago
Bloomberg
A 33-Year-Old Fueling Crypto Boom Is Worrying Thai Regulators
(Bloomberg) -- Atichanan Pulges first became interested in cryptocurrencies a decade ago when he was an engineering student in Los Angeles. Mining Bitcoin was a way for the Bangkok native to learn about markets and pay his rent.Now back in Thailand after a stint at Goldman Sachs Group Inc., Atichanan is a co-founder of the nation’s largest licensed cryptocurrency exchange. He’s also on the front lines of an intensifying debate over who should be allowed to buy digital assets in Southeast Asia’s second-largest economy.Thailand’s Securities and Exchange Commission, alarmed by a sixfold surge in domestic crypto trading since November, said on April 1 that it would soon require traders to have experience, or take courses or pass an exam. The regulator didn’t finalize a date and opted not to ban local exchanges from accepting clients who didn’t meet minimum-income levels, which had been mulled. Digital-asset proponents including Atichanan argue that too many restrictions will merely drive Thais to unregulated platforms overseas.“The regulator realizes any curbs can’t reverse the tide toward toward digital,” said Atichanan, 33, who co-founded Bitkub in 2018. He said the exchange accounts for about 90% of domestic crypto trading and serves 300,000 customers, figures that Bloomberg has been unable to independently verify.While volumes on Thai crypto exchanges are still small relative to counterparts in countries like the U.S. and South Korea, they’ve been surging in recent months as digital assets including Bitcoin have jumped to all-time highs.Total trading turnover on all local licensed crypto exchanges jumped to 124 billion baht ($3.96 billion) in February from 18 billion baht in November, according to data from the Thai SEC, which only date back to November. Bitkub’s daily turnover of 4.2 billion baht in February reflects an increase of nearly 40% from a month earlier, according to the company’s statistics. A 24-hour turnover figure on March 30 ranked it 124th among more than 300 exchanges worldwide tracked by CoinMarketCap.As in other markets that have experienced a spike in retail trading during the pandemic, crypto activity in Thailand has soared in large part thanks to demand from younger investors. The boom has also been marked by hiccups at local exchange operators, including Bitkub.Both developments have attracted scrutiny from the Thai SEC. In January, the regulator asked Bitkub to submit a plan to address investor complaints about “problematic work systems” that have caused trading outages. A month later, the regulator said it was considering eligibility restrictions for clients of crypto exchanges that include a minimum income of more than 1 million baht. The SEC at its April 1 meeting decided not to impose the income requirement, opting for an education or knowledge program.“Crypto participants, including platform operators and investors, are mostly young and passionate about new technology and decentralization,” Ruenvadee Suwanmongkol, the SEC’s secretary general, said in an interview. “They must realize any financial innovation also has the potential to cause collateral damage to the general public and financial system.”The SEC abandoned its income requirement after gathering feedback from market participants. The borderless and decentralized nature of crypto trading makes such controls difficult to implement, said Poomsiri Dumrongvute, who teaches a financial technology course at Chulalongkorn University in Bangkok.Bitkub has made a similar argument in its feedback to regulators, also noting that stricter curbs could hamper the development of local blockchain technology.Despite the regulatory risk, Bitkub is gearing up for a major expansion. The company plans to double staff to 500 by year-end, introduce its own debit card and open a physical crypto trading outlet in Bangkok to lure new entrants and serve as a meeting place for existing ones, according to Atichanan. Over the longer term, Bitkub has ambitions to gain “unicorn” status, or a private valuation of more than $1 billion.Atichanan said the exchange raised the equivalent of $11 million from investors in three rounds since its establishment, though he declined to comment on the company’s current valuation.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
Bloomberg
Made in U.S.A. Reflation Trade Is One Export World Doesn’t Want
(Bloomberg) -- The U.S. bond tantrum is sending a chill through indebted countries which have for years paid less to borrow more.As the American economy powers ahead, government bond yields from Australia to Italy are taking the cue and following those of the U.S. upwards. Those higher costs threaten to undermine a flagging recovery in Europe, which is losing control of the pandemic and extending curbs. They’re also unwelcome for emerging markets reliant on dollar funding.“This is something investors are watching,” said Thomas Wacker, head of credit at UBS Global Wealth Management. “Any increase in interest rate costs reduces countries’ fiscal headroom and adds to future deficits when it could have been spent on investments and reforms. Debt sustainability is a valid concern.”Yields on Group of Seven government debt have more than doubled since the start of the year after climbing 27 basis points to 0.48%, according to Bloomberg Barclays index data, as Treasury yields set a blistering pace.While it’s hard to pin down how much of that is down to what’s happening in the Treasury market, analysts at ING Groep NV point to the U.S. as the driver, going as far as to assert that no reflation trade would be happening in Europe in a world in which it was isolated from the U.S.Regardless of whether they can blame run-it-hot American economic policy, the rising price of government debt has become a headache for policymakers and investors alike.In an interview with Bloomberg Television, European Central Bank President Christine Lagarde this week said that policy makers won’t shy away from using all their powers to stop bond yields moving higher. The ECB has accelerated bond buying to push back against rising borrowing costs.Bond MathThe math goes something like this: Every 10 basis-point move across Europe’s debt structure would translate into about 11 billion euros ($12.9 billion) of annual interest. That’s based on a back-of-the-envelope calculation of the region’s debt at 11 trillion euros, according to European Commission data, and the average rate of interest at 1.6%, or 181.42 billion euros over a four-quarter rolling period.For now, funding conditions in the euro region are still low compared with costs of existing debt. Italian 10-year bonds sold with a coupon of 4.75% almost a decade ago are likely to be refinanced at a much lower rate given their current yield of 0.631%.Across the Atlantic, there’s even less cause for worry, this year anyway. Interest payments on the national debt fell last year and are on track to continue sliding -- even after all the pandemic spending and amid the highest 10-year borrowing costs in a year.Yellen’s Go-To Measure Shows U.S. Debt Is Still Getting CheaperBut a period of belt-tightening down the line could harm the economic recovery and eventually require more stimulus from central banks, according to Mark Nash, a money manager at Jupiter Investment Management.“The market will have to look for austerity in the future,” Nash said. “There is just too much debt. The recovery is masking this so far, but fragilities are growing for markets.”Tantrum ReduxNash says the “canary in the coalmine” is the developing world, already feeling the impact of rising costs to borrow in U.S. dollars. A benchmark gauge of emerging-market stocks just erased gains for the year amid concern poorer nations will lag efforts to deliver vaccines to their population and stimulus to their economies.Emerging-market nations owe more than $4 trillion in dollar debt, according to estimates from the Bank for International Settlements. The burden gets bigger as U.S. yields rise, with the potential that their debt troubles spill over into other markets, according to Nash.Cash Is King for Emerging Markets Facing Off With Yield SurgeWhile the causes are different from the taper talk that wreaked havoc on markets in 2013, there may be parallels with the chaos sparked by then Federal Reserve chief Ben Bernanke suggesting monetary stimulus would be pared at some point in the future.This time bond markets have become unruly because the U.S. has unleashed trillions of dollars in fiscal stimulus, according to Steve Major, the head of fixed-income research at HSBC Holdings Plc.“For all the talk of another taper tantrum, we may have already had something similar but this time it was brought on by the government’s aggressive fiscal loosening. Shall we call it a ‘fiscal tantrum’?” Major said. “Whatever the reason, the economy is not going to be helped by higher yields.”What’s happening this week:Germany, France, Spain and Austria will sell bonds totaling almost 21 billion euros, according to Commerzbank AG. Germany is expected to redeem 21 billion euros.The data schedule for the coming week is thin Euro area Sentix investor confidence for April on Tuesday is the only forward-looking number; German factory orders for February are published Thursday, followed by industrial production for the same month FridayThe U.K.’s data calendar is also light, leaving investors to focus on March construction PMI numbers from Markit/CIPS on ThursdayThere are no central bank speeches scheduled but the ECB publishes its March policy meeting account on ThursdayThere are no notable sovereign rating reviews 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.
11h ago
Quartz
Quiz: How much do you know about what employees want now?
Are you in touch with what people are looking for at work these days? Are they satisfied with the job? Feeling valued? Or are the ready for a change? Take our quiz to test your intuition.
13h ago
MoneyWise
Suze Orman's financial tips for surviving a fourth wave of COVID-19
With so much out of your control, here are 17 things you can do to protect your money.
13h ago
MoneyWise
Meet 4 stock market influencers every investor should know about
Millions of social media followers look to them for money-making advice.
15h ago
Bloomberg
Canadian Dollar Shows It Has Swagger as Supercyclists Hop Aboard
(Bloomberg) -- Already one of the best performing major currencies this year, Canada’s dollar looks poised to become a market darling for all of 2021.At the heart of the loonie’s broad gains are demand for the country’s abundant natural resources, attractive yields and proximity to the U.S., where vaccination rollouts and infrastructure spending are seen helping Canada’s biggest export market regain its footing.Against that reflation-trade backdrop and relative calm in equity markets, the Bank of Canada signaled it will slow quantitative easing. That’s fueled the currency’s largest quarterly return in years against two haven counterparts: the yen and Swiss franc. Even versus the dollar, which defied dour forecasts to post its best quarter in a year, the loonie rose more than 1%, and it’s just behind the British pound for the title of best major currency so far this year.“The Canadian recovery will be impressive in the second half, with growth projections revised up,” said John Velis, a strategist at BNY Mellon, who is long the loonie versus the dollar. “Furthermore, the global reopening will help commodities as we get deeper into the year and we’ll see commodity- and oil-related FX do well.”The loonie’s first-quarter performance is unlikely to be just a flash in the pan. With economies of Group-of-20 nations forecast to rebound this year, U.S. and Canada rank in the top five, seen expanding 5.7% and 5.4%, respectively, according to Bloomberg data. As growth gains traction and major central banks remain accommodative for the foreseeable future, rising demand for commodities could support the currency well into next year.While commodity prices and the loonie don’t move in lockstep, the 21-day correlation between the Bloomberg Commodity Index and Deutsche Bank AG’s trade-weighted index for the Canadian dollar is above 70% and near the highs seen in the past five years. U.S. President Joe Biden’s “green” infrastructure packages should further underpin prices with some analysts touting an impending commodity supercycle.Philippe Jauer, a money manager at Amundi Asset Management, says the Biden spending package will be bullish for the Canadian dollar and other resource-linked currencies. The administration is moving “swiftly, massively and this is what the market is looking at for now,” he said, adding that Canada’s export market stands to benefit.Jauer is following a butterfly strategy that comprises long bets on the dollar, commodity-linked currencies and a short on the euro. He favors the Canadian dollar versus most other G-10 currencies except the greenback.The combination of solid growth and subdued inflation is particularly appealing to fixed-income managers. Headline consumer-price inflation in Canada is running about 1.1% per year -- below a 1.7% reading in the U.S. The five-year breakeven inflation rate for Canada, a gauge of bond market expectations for consumer-price gains, is around 1.9% compared with around 2.6% for a similar U.S. measure.With Canadian government yields in maturities of less than five years exceeding that of U.S. counterparts, carry returns are comparatively attractive. Among higher yielding nations, Canada’s favorable sovereign ratings and limited U.S. dollar funding concerns make it an attractive alternative to many emerging-market counterparts.Not everyone is upbeat on the loonie. For Bipan Rai, a strategist at Canadian Imperial Bank of Commerce, the global growth story is already priced in and he anticipates weakening versus the greenback as markets re-price central bank policy. “Put simply, we don’t think that the Bank of Canada will hike ahead of the Fed when push comes to shove post-2021.”There are also risks to the growth outlook, among them the potential failure of vaccines to rein in the pandemic and challenges that Biden will face to get his spending plans approved. But at the moment, markets are betting on a brighter outlook.One-year implied volatility in the Canadian dollar last week plummeted to the lowest level in more than a month -- a sign that options traders are getting more comfortable with loonie stability longer term. Technically, the loonie is flirting with key long-term hurdles against the U.S. dollar, euro and yen. Versus the greenback, a double-top and descending wedge pattern since March 2020 have spot slowly approaching a 2015 support line at around C$1.2280 per dollar, from its current level of about C$1.2578.That’s a level to be tested this year, if Greg Anderson at Bank of Montreal is right. He’s got a year-end outlook of C$1.22, which would be the strongest since 2017, and sees yield differentials helping guide the way. Canadian two-year rates still exceed equivalent U.S. debt by close to 4 basis points and their German counterparts by more than 93 basis points. Canadian yields have largely kept pace with jumps in Treasury rates, so that pulled the loonie higher on lots of crosses, said Anderson.“The yield differential that has opened up will still create a bit of attraction for the loonie on crosses,” he said. “And that should help it outperform.”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.
9h ago
Bloomberg
World Economy Risks ‘Dangerously Diverging’ Even as Growth Booms
(Bloomberg) -- The world economy is on course for its fastest growth in more than a half century this year, yet differences and deficiencies could hold it back from attaining its pre-pandemic heights any time soon.The U.S. is leading the charge into this week’s semi-annual virtual meeting of the International Monetary Fund, pumping out trillions of dollars of budgetary stimulus and resuming its role as guardian of the global economy following President Joe Biden’s defeat of “America First” President Donald Trump. Friday brought news of the biggest month for hiring since August.China is doing its part too, building on its success in countering the coronavirus last year even as it starts to pull back on some of its economic aid.Yet unlike in the aftermath of the 2008 financial crisis, the recovery looks lopsided, in part because the rollout of vaccines and fiscal support differ across borders. Among the laggards are most emerging markets and the euro area, where France and Italy have extended restrictions on activity to contain the virus.“While the outlook has improved overall, prospects are diverging dangerously,” IMF Managing Director Kristalina Georgieva said last week. “Vaccines are not yet available to everyone and everywhere. Too many people continue to face job losses and rising poverty. Too many countries are falling behind.”The result: It could take years for swathes of the world to join the U.S. and China in fully recovering from the pandemic. By 2024 world output will still be 3% lower than was projected before the pandemic, with countries reliant on tourism and services suffering the most, according to the IMF.The disparity is captured by Bloomberg Economics’ new set of nowcasts which shows global growth of around 1.3% quarter on quarter in the first three months of 2021. But while the U.S. is bouncing, France, Germany, Italy, the U.K. and Japan are contracting. In the emerging markets, Brazil, Russia and India are all being clearly outpaced by China.For the year as whole, Bloomberg Economics forecasts growth of 6.9%, the quickest in records dating back to the 1960s. Behind the buoyant outlook: a shrinking virus threat, expanding U.S. stimulus, and trillions of dollars in pent-up savings.Much will depend on how fast countries can inoculate their populations with the risk that the longer it takes the greater the chance the virus remains an international threat especially if new variants develop.Bloomberg’s Vaccine Tracker shows while the U.S. has administered doses equivalent to almost a quarter of its people, the European Union has yet to hit 10%, while rates in Mexico, Russia and Brazil are below 6%. In Japan the figure is less than 1%.“The lesson here is there is no trade-off between growth and containment,” said Mansoor Mohi-uddin, chief economist at the Bank of Singapore Ltd.Former Federal Reserve official Nathan Sheets said he expects the U.S. to use this week’s virtual meetings of the IMF and World Bank to argue that now is not the time for countries to pull back on assisting their economies.It’s an argument that will be mostly directed at Europe, particularly Germany, with its long history of fiscal stringency. The EU’s 750 billion-euro ($885 billion) joint recovery fund won’t start until the second half of the year.The U.S. will have two things going for it in making its case, Sheets said: A strengthening domestic economy and an internationally respected leader of its delegation in Treasury Secretary Janet Yellen, no stranger to IMF meetings from her time as Fed Chair.But the world’s largest economy could find itself on the defensive when it comes to vaccine distribution after accumulating massive supplies for itself. “We will hear a hue and cry emerge during these meetings for more equal access to vaccinations,” said Sheets, who is now the head of global economic research at PGIM Fixed Income.And while America’s booming economy will undoubtedly act as a driver for the rest of the world by sucking in imports, there could also be some grumbling about the higher market borrowing costs that the rapid growth brings, especially from economies which aren’t as healthy.“The Biden stimulus is a two edged sword,” said former IMF chief economist Maury Obstfeld, who is a now senior fellow at the Peterson Institute for International Economics in Washington. Rising U.S. long-term interest rates “tighten global financial conditions. That has implications for debt sustainability for countries that went deeper into debt to fight the pandemic.”JPMorgan Chase & Co. chief economist Bruce Kasman said he hasn’t seen such a wide gap in 20 to 25 years in the expected out-performance of the U.S. and other developed countries when compared with the emerging markets. That’s in part due to differences in distribution of the vaccine. But it’s also down to the economic policy choices various countries are making.Having mostly slashed interest rates and started asset-purchase programs last year, central banks are splitting with some in emerging markets beginning to hike interest rates either because of accelerating inflation or to prevent capital from flowing out. Turkey, Russia and Brazil all raised borrowing costs last month, while the Fed and European Central Bank say they won’t be doing so for a long time yet.Rob Subbaraman, head of global markets research at Nomura Holdings Inc. in Singapore, reckons Brazil, Colombia, Hungary, India, Mexico, Poland, the Philippines and South Africa all risk running overly-loose policies.“With major developed market central banks experimenting on how hot they can run economies before inflation becomes a problem, emerging market central banks will need to be extra careful to not fall behind the curve, and will likely need to lead, rather than follow, their developed market counterparts in the next rate hiking cycle,” said Subbaraman.In an April 1 video for clients, Kasman summed up the global economic outlook this way: “Boomy type conditions with quite wide divergences.”(Updates with Japan vaccination figure.)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.
2h ago
FX Empire
Bank of America Firing on All Cylinders Ahead of Earnings
The banking giant is well-positioned for additional gains following next week’s Q1 2021 earnings release.
14h ago
Bloomberg
Saudis Hike Oil Prices for Key Asia Market in Sign of Confidence
(Bloomberg) -- Saudi Arabia raised prices for oil shipments to customers in its main market of Asia, signaling the kingdom’s confidence in the region’s economic recovery.The decision comes after the OPEC+ cartel, led by the Saudis and Russia, agreed to boost daily crude production by more than 2 million barrels between May and July.Aramco, the Saudi state energy firm, will increase its grades for Asia in May by between 20 and 50 cents a barrel, according to a statement. It will raise the key Arab Light grade for the region by 40 cents from April to $1.80 per barrel above the benchmark. The company had been expected to hike the grade by 30 cents, according to a Bloomberg survey of eight traders and refiners.Most prices for North West European customers won’t be changed, though Arab Light for the region will drop by 20 cents to $2.40 below the benchmark. Most grades to the U.S. will be cut by 10 cents.Prices for Asia have been above those for Europe and the U.S. for several months, partly due to energy demand in the latter two recovering more slowly from the coronavirus pandemic.The Organization of Petroleum Exporting Countries and allies such a Russia -- a grouping of 23 nations -- agreed on Thursday to increase output by 350,000 barrels a day in May, add the same volume again in June and another 450,000 barrels a day in July.In addition, Saudi Arabia -- the world’s largest oil exporter -- will roll back a unilateral 1-million-barrel-a day cut over the same period. It will add 250,000 barrels a day in May, 350,000 in June and 400,000 in July.Saudi Energy Minister Prince Abdulaziz bin Salman told counterparts at the meeting that OPEC+ still needed to be cautious until the global economic recovery is complete. The group started unprecedented production curbs last May to bolster oil prices and is still holding back several million barrels a day from the market.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.
17h ago
Bloomberg
Buffett’s Berkshire Hathaway Returns to Yen Market With Bond
(Bloomberg) -- Warren Buffett’s Berkshire Hathaway Inc. kicked off marketing of a multi-tranche yen bond deal on Monday, several months after announcing investments in Japan’s biggest trading companies.The conglomerate is offering yen notes for a third straight year, after selling 430 billion yen ($3.89 billion) of the securities in its inaugural deal in 2019, one of the largest-ever by a foreign issuer in yen. Berkshire Hathaway is marketing a four-part yen debt offering this week that may price on Thursday, according to an email from JPMorgan Chase & Co., one of the bookrunners on the deal.The U.S. firm said in August that it had acquired stakes of about 5% in Itochu Corp., Marubeni Corp., Mitsubishi Corp., Mitsui & Co. and Sumitomo Corp. Buffett, chairman and chief executive officer of Berkshire Hathaway, didn’t make any major investment in 2020, but the company bought up its own stock and is sitting on $138 billion of cash.The company said last year that it planned to hold its Japanese trading house investments for the long term and that it could increase its holding in any of the five to as much as 9.9%.Debt DemandDemand for corporate bonds in the yen market has been solid this year as the Bank of Japan’s negative interest-rate policy has kept yields on company debt from rising much, despite volatility. Nagoya Railroad Co.’s five-year bond, which priced with a coupon of 0.09% last month, garnered demand almost nine times the issuance size.Berkshire Hathaway is offering a five-year bond at 17-20 basis points over mid-swaps, which at current market levels is equivalent to a coupon of about 0.2%. The deal also includes 10-year, 15-year and 20-year notes, with expected ratings from Moody’s Investors Service and S&P Global Ratings higher than those given to Japanese sovereign.Berkshire Hathaway has yen bonds maturing as early as 2023 and as late as 2060. While the 2023 note has returned about 0.01% this year, longer-dated notes have slumped as their yields have risen more. The price on the 2060 note dropped to 92.55 yen on Friday from 97.3 yen at the end of last year, according to data compiled by Bloomberg.(Updates with details of offering.)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.
17m ago
The Wall Street Journal
The Pandemic Year’s Top Stock-Fund Managers
In a chaotic period for mutual funds, Morgan Stanley’s Dennis Lynch was No. 1, steering his fund to a 273% gain for the 12 months.
10h ago
Yahoo Finance
FOMC meeting minutes, Powell speaks: What to know this week
Traders returning from the long holiday weekend will turn their attention to more commentary out of the Federal Reserve, with the Federal Open Market Committee's latest meeting minutes and a speech from Fed Chair Jerome Powell on deck.
11h ago
Bloomberg
Hertz Picks Centerbridge-Backed Plan to Exit From Bankruptcy
(Bloomberg) -- Hertz Global Holdings Inc. said it chose an “enhanced” offer from Centerbridge Partners, Warburg Pincus and Dundon Capital Partners to provide equity capital for the rental-car company’s exit from Chapter 11.The deal, which is subject to bankruptcy court approval, has the support of holders of more than 85% of the company’s unsecured notes, Hertz said, a level of backing that gave it a “clear advantage” over a competing offer. The company earlier received a rival proposal from Knighthead Capital Management and Certares Management.“We look forward to emerging from Chapter 11 in the second quarter financially and operationally stronger, and well-positioned to achieve the opportunities in the rebounding travel market,” Paul Stone, Hertz’s chief executive officer, said in the statement Saturday.The company remains on track to exit from its bankruptcy in June. The announcement comes a day after the U.S. Centers for Disease Control and Prevention said vaccinated individuals don’t need a Covid test and don’t need to quarantine when traveling domestically.Hertz filed for bankruptcy in May when the near-total shutdown of the global travel industry sent its rental revenues plunging. It became a popular stock among day traders, who sent shares of the bankrupt company soaring against conventions. Hertz made a short-lived effort to raise funds after its bankruptcy filing by selling stock, but abandoned it after the U.S. Securities and Exchange Commission questioned the plan.The new investors will bring operational expertise to Hertz, including experience with companies such as Santander Consumer USA, Dana Inc., and Car Trade, the company said.The supporting noteholders have agreed to support the exchange of the unsecured funded debt claims against Hertz for about 48.2% of the equity in the reorganized company and the right to purchase an additional $1.6 billion of equity. They have also committed to purchase, or otherwise backstop, the full $1.6 billion of equity being offered to the holders of Hertz’s unsecured funded debt.Holders of 725 million euros ($852 million) of European vehicle notes will be paid in cash in full under the plan, while creditors of general unsecured claims will get about 75 cents on the dollar, it said. Hertz’s existing equity will be canceled and receive no distribution.(Adds quotes from Hertz’s CEO, background)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
Bloomberg
As Meme Stock Mania Fizzles, Wall Street Sees ‘Big Reckoning’
(Bloomberg) -- The day-trading Reddit crowd turned the first quarter of 2021 into one of the wildest periods of stock market mania in modern history. Books -- plural -- will undoubtedly be dedicated to the topic in years to come.But after these small-time speculators banded together to drive up dozens of obscure stocks by hundreds or even thousands of percent -- and in the process burned a few hedge-fund barons betting on declines -- the movement appears to be petering out. An index that tracks 37 of the most popular meme stocks -- 37 of the 50 that Robinhood Markets banned clients from trading during the height of the frenzy -- is essentially unchanged over the past two months after soaring nearly 150% in January.Talk to Wall Street veterans and they’ll tell you that this flat-lining is the beginning of what will be an inexorable move downward in these stocks.It’s not so much about the poor fundamentals of the companies. At least not in the short term. The day-trading zealots have shown a surprising ability to ignore those facts. It’s more that as the pandemic slowly winds down and the economy starts to open up, many of them will leave their homes and start going back into offices and out to restaurants and embarking on trips near and far. And as they do, they may stop obsessing about their Robinhood accounts.Their collective sway on the meme-stock universe, in other words, will wane.“People are going to be doing other things,” said Matt Maley, chief market strategist at Miller Tabak + Co. There will be a “big reckoning” at some point, he said. “There’s no question in my mind.”Of course, the Wall Street set has, broadly speaking, misread the Reddit crowd for weeks earlier this quarter, and it’s possible their analysis is wrong again now. Preliminary data, though, suggests they’re right.Recent reports suggest vaccinated Americans are planning long-awaited vacations with searches for “Google flights” reaching a peak popularity score of 100 this week, according to a Google Trends tracker. The opposite is being seen for terms like “stock trading” and “investing” which have plunged, Google Trends shows.“The stimulus check impact on retail trading is waning,” said Edward Moya, senior market analyst at Oanda. “Many Americans are looking to go big on attending sporting events, traveling across the country, vacationing, visiting family and friends, and revamping wardrobes before going out to restaurants, pubs and returning to the office.”Gamestop JuggernautVideo-game retailer GameStop Corp. became the poster child for retail traders looking to rage against the hedge fund elite. However, the stock’s 2,460% roller coaster alongside other favorites touted on Reddit’s WallStreetBets thread caused as much pain as it did joy.The stock’s more than 900% surge this year has drawn a wary eye from the Wall Street analysts that follow it. The average 12-month price target implies the stock will lose more than three-quarters of its value from current levels. Only Jefferies holds a price target near Thursday’s $191.45 close and that call came with the warning that shares are “subject to volatility beyond fundamentals.”But any sense of GameStop trading on fundamentals has been ignored since it first captivated Wall Street and Reddit users in the back half of January. Bulls are more than happy to tout their bets on forums as a move to stick it to short sellers as they buy into a company rebirth delivered by activist investor Ryan Cohen.Given AMC Entertainment Holdings Inc.’s position as a movie theater many Americans went to at some point, it’s not a complete surprise as to why Reddit users rushed to the company’s aide. #SaveAMC trended on Twitter and amateur investors appeared more than happy to fight against Wall Street’s skeptics despite most movie theaters being closed due to the ongoing pandemic.The chain’s latest rally came amid plans to continue reopening cinemas, however, Wall Street is skeptical. None of the nine analysts tracking the company rate it a buy and the average price target implies the stock will lose 63% of its value in the coming year.Retail euphoria leaked over to a broader range of securities from cult-favorites like Bitcoin, Tesla Inc., and the ARK Innovation ETF to smaller companies like the clothing retailer Express Inc. Chinese tech company The9 Limited is among the group’s best performers this year with an 860% surge.The company’s rally has been fueled by recent moves to ride the Bitcoin wave alongside peers like Future FinTech Group Inc. and Ault Global Holdings Inc.Zomedica Corp., a small-cap animal health company, has become a cult favorite among retail investors chasing stocks with low share prices. The Ann Arbor, Michigan-based company started the year worth less than a quarter, but had soared as high as $2.91.Trading volume of the company has accelerated this year with an average of 174 million shares changing hands per session, more than four times the average over the course of 2020. A mention from Tiger King’s Carole Baskin helped it go viral in mid-January.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
Bloomberg
Ferrari Overtaken by Rivals to End Years in Market Fast Lane
(Bloomberg) -- After racing clear of its rivals for years, Ferrari NV has been relegated to the back row of the stock market grid.The Italian supercar maker, the top performer in the Stoxx 600 Automobiles & Parts index for each of the last three years, has fallen 5.6% since the start of 2021 and just suffered its worst quarter since the end of 2018. That’s a marked contrast to strong gains by rivals including including Volkswagen AG, which owns luxury brands Porsche, Bugatti and Lamborghini.While competitors, particularly VW, have got a boost from the hullabaloo around electric vehicles, the company known for its Prancing Horse logo has run into setbacks including an underwhelming earnings forecast. Without a clear EV strategy, Ferrari has also been hurt by an unresolved search for a new chief executive, and a broader rotation out of so-called growth names for a company that some investors regard more as a luxury play.“The stock has become too expensive and earnings momentum is fading,” said Sanford C. Bernstein analyst Arndt Ellinghorst, also noting uncertainty over the CEO situation and a “lack of EV vision.”In February’s results announcement, Ferrari gave a conservative earnings outlook for this year as the carmaker works through disruption from the pandemic on top of the unexpected search for a new leader. Citing personal reasons, Louis Camilleri abruptly retired from his role as CEO in December, leaving the company facing its second leadership crisis in as many years and complicating the transition toward electric mobility.Ferrari is “making good progress with the search process to identify the right leader,” Chairman John Elkann said April 1.Whoever takes the helm will face a challenging legacy, with Ferrari’s strategy for a full-electric vehicle remaining an unclear long-shot project. Camilleri cast doubts over the plan during his last analyst call in November, saying he didn’t see the carmaker ever being at 100% EV “and certainly, not in my lifetime will it reach even 50%.” Elkann said in February that he envisages Ferrari making a fully-electric car by the end of this decade.A new CEO will also need to combine the need to keep pace with tightening emissions regulations while satisfying the love of its power-hungry customers for the traditional thermal engine.A spokesman for Ferrari declined to comment for this article.The stock’s lofty valuation multiple relative to other carmakers doesn’t leave much room for upset. According to RBC Capital analyst Tom Narayan, Ferrari is less of an auto stock and “more of a luxury play.”Reflecting that status among investors, the stock rose 28% in 2020, similar to the performance of Birkin bag maker Hermes International and luxury leader LVMH, while most auto stocks were weighed down by the pandemic.“The outperformance last year was due to the fact that the stock is perceived as more defensive and so something to own when everything else falls,” said Antonio Amendola, a portfolio manager at Acomea Sgr. “In the end, those who can afford a Ferrari can afford it in any conditions.”Changing DynamicsThis year, stock market dynamics have changed, with investors shifting more toward cyclical stocks and away from defensives as the rollout of vaccines fuels optimism over a global economic recovery.“With the market rotation, it’s normal to see some profit taking,” said Amendola. “Ferrari’s fundamentals are solid and this can be an opportunity to accumulate if the underperformance persists.”And according to UBS Group AG analyst Susy Tibaldi, concern over the company’s approach toward electric vehicles may not be fully justified.“We don’t think the company is under the same pressure and urgency as its non-luxury peers, due to the fact that a Ferrari per se is not a means of transportation but rather a status symbol, and is rarely the first car in a household,” Tibaldi, who rates Ferrari buy, wrote in a March 30 note.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.
23h ago
Quartz
Is the SPAC craze finally cooling off?
SPACs have so dominated Wall Street thinking this year that they are now the stuff of memes and ironic t-shirts. Thanks to their burst in popularity with celebrity and retail investors alike, more than half of companies that went private last year happened through a SPAC. Also termed blank-check companies, SPACs are shell companies that take private firms public by raising money on an exchange and then merging with or acquiring them to take their place on the exchange.
2d ago

Symbol	Last Price	Change	% Change
APA APA Corporation	18.85	+0.95	+5.31%
BLUE bluebird bio, Inc.	30.04	-0.11	-0.36%

S&P Futures

Dow Futures

Nasdaq Futures

Russell 2000 Futures

Crude Oil

Gold

Silver

EUR/USD

10-Yr Bond

Vix

GBP/USD

USD/JPY

BTC-USD

CMC Crypto 200

FTSE 100

Nikkei 225

SHAREHOLDER ALERT: BLUE HSACW APA: The Law Offices of Vincent Wong Reminds Investors of Important Class Action Deadlines

Recommended Stories

Thai households struggle with record debt, COVID-19 increases burden

Crypto Long & Short: Bitcoin Outflows Aren’t the Bullish Signal You Think They Are

Hertz selects Chapter 11 exit plan backed by Centerbridge, Warburg, Dundon

If you have $1,000 in your account, make these 6 money moves now

A 33-Year-Old Fueling Crypto Boom Is Worrying Thai Regulators

Made in U.S.A. Reflation Trade Is One Export World Doesn’t Want

Quiz: How much do you know about what employees want now?

Suze Orman's financial tips for surviving a fourth wave of COVID-19

Meet 4 stock market influencers every investor should know about

Canadian Dollar Shows It Has Swagger as Supercyclists Hop Aboard

World Economy Risks ‘Dangerously Diverging’ Even as Growth Booms

Bank of America Firing on All Cylinders Ahead of Earnings

Saudis Hike Oil Prices for Key Asia Market in Sign of Confidence

Buffett’s Berkshire Hathaway Returns to Yen Market With Bond

The Pandemic Year’s Top Stock-Fund Managers

FOMC meeting minutes, Powell speaks: What to know this week

Hertz Picks Centerbridge-Backed Plan to Exit From Bankruptcy

As Meme Stock Mania Fizzles, Wall Street Sees ‘Big Reckoning’

Ferrari Overtaken by Rivals to End Years in Market Fast Lane

Is the SPAC craze finally cooling off?