OTTAWA, ON, April 7, 2021 /CNW/ -
Note: All times local
Toronto, Ontario
Private meetings.
The Deputy Prime Minister will virtually participate in the IMF's International Monetary and Financial Committee meeting.
Closed to media.
This document is also available at https://deputypm.canada.ca
SOURCE Deputy Prime Minister's Office
View original content: http://www.newswire.ca/en/releases/archive/April2021/07/c1516.html
The US dollar fell during Asian trading against the Japanese yen, but as the Europeans came back on board, the market started to recover again.
(Bloomberg) -- Global funds trimmed holdings of China’s sovereign debt for the first time in two years in March, as their yield premium over Treasuries narrowed and the government announced plans for more debt sales.Foreign investors held 2.04 trillion yuan ($312 billion) of Chinese government bonds as of the end of last month, according to data from ChinaBond. That’s 16.5 billion yuan lower than the record amount held in February, according to calculations by Bloomberg.While Chinese bonds have emerged as a haven during the global debt rout this year, the surge in Treasury yields to levels last seen in January 2020 have dimmed their appeal. Inflows may also slow going ahead after FTSE Russell said last month an inclusion of the nation’s debt into its global bond index will take three years, instead of the 12 months initially envisioned.“Foreign investors reduced their holdings of China sovereign bonds in March mainly because U.S. Treasury yields rose a lot and some overseas investors switched to that,” said Ming Ming, head of fixed income research at Citic Securities Co. “In addition, foreign holdings had already jumped rapidly, so that also needs to be adjusted.”Read: U.S. Debt Rout Ignites Hunt for New Havens That Ends in ChinaGlobal funds had been piling into Chinese sovereign debt for 24 consecutive months, doubling their holdings over that period as the government loosened ownership restrictions and the securities were included in global indexes. A lack of correlation with overseas bonds have also lured investors, helping them to rise 1% in the first quarter, the only one to do so among the 20 largest global markets,.The reduction in foreign interest also came after China announced a larger-than-expected quota for the sales of local government debt, with some analysts saying that would pressure the overall market.The ChinaBond data cover the majority of the interbank market, where most government and policy bank notes are traded. More figures will likely be released by the Shanghai Clearing House in a few days that will cover some credit bonds in the interbank and exchange markets.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.
BP stock climbed early on Tuesday, as the oil major said it would hit its net debt target almost a year earlier than expected, opening the door to share buybacks.
(Bloomberg) -- Morgan Stanley sold $5 billion of shares owned by Archegos Capital Management a day before a deluge of block trades sent shockwaves across capital markets.The sale of the basket of shares on March 25 was completed at a fixed discount, according to a person with knowledge of the matter, who asked not to be identified discussing private transactons.The Wall Street bank sold shares held by Bill Hwang’s family office in about 10 companies after the market close, mainly to hedge funds, the person said. CNBC reported earlier Tuesday on the size of the stock sale.Morgan Stanley’s early bid for the exits helped the firm emerge largely unscathed from a fund flameout that’s inflicted billions in losses at other banks. Credit Suisse Group AG on Tuesday announced a $4.7 billion writedown tied to its exposure to Archegos, and Nomura Holdings Inc. has said it could take a hit of as much as $2 billion.Morgan Stanley was one of the early backers of the family office despite the legal taint tied to Hwang. He was accused of insider trading by authorities and in 2012 pleaded guilty to wire fraud on behalf of his hedge fund, Tiger Asia Management.A spokesman for Morgan Stanley declined to comment.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
Gold markets initially pulled back just a bit on Wednesday but found buyers underneath to turn things around and show signs of life again.
The oldest cryptocurrency is looking at a price support level around $54,000, with resistance around $60,000.
(Bloomberg) -- Suez SA agreed to sell its Australian business to Cleanaway Waste Management Ltd., with completion conditional on further talks about its own takeover by Veolia Environnement SA.Suez signed a deal to sell its recycling and recovery business in Australia to Melbourne-based Cleanaway for A$2.5 billion ($1.9 billion), the French water and waste-treatment firm said in a statement Tuesday. Under the terms, Suez can terminate the deal by May 6 if it gets taken over by Veolia, Cleanaway said in a filing.The arrangement leaves room for Suez to maneuver its own fate in its seven-month battle to convince shareholders that Veolia’s takeover offer is too low. Veolia bought almost 30% of Suez in October with a plan to absorb the whole company and create a new global leader in the sector.“We’re continuing to seek a friendly, negotiated solution with Veolia” with the aim of finding a solution by April 20, Suez Chairman Philippe Varin said on a conference call Tuesday. The valuation of the Suez asset sales, including in Australia, show that Veolia’s takeover offer, which it has resolutely maintained since October, “isn’t sufficient,” he said.Veolia said in a statement that Suez’s agreement to sell the Australian business creates another obstacle to a negotiated solution that will have a “negative impact” on its takeover offer. The company will continue to use “all legal means to prevent the sale of these strategic assets,” according to Veolia’s statement. Poison PillSuez on March 21 put forward a solution that would involve Veolia paying at least 20 euros ($23.63) per share -- 2 euros more than its offer -- and selling on over half of the company to Ardian SAS and Global Infrastructure Partners. It gave Veolia until April 20 to negotiate on that proposal.Alternatively, Suez wants a 22.50 euros per share bid by May 5, following which it would remove a so-called poison pill that’s meant to deter Veolia.Beyond that date, a legal mechanism has been put in place that would prevent any buyer from selling Suez’s French water assets until September 2024. It’s meant to complicate Veolia’s ability to resolve antitrust concerns after any deal unless it decides to sell its own French water business.Suez shares rose 0.3% in Paris trading, while Veolia was unchanged. Cleanaway surged 16% in Australia.The agreement with Cleanaway values Suez’s Australian assets at 12.9 times 2020 earnings before interest, taxes, depreciation and amortization, the company said. Given that Suez currently trades at about 8.5 times its Ebitda, the Australian deal shows the company is worth more than 20 euros a share, Chief Financial Officer Julian Waldron said.If no agreement is found with Veolia in the coming weeks, other asset sales can’t be ruled out, the Suez chairman said.Veolia or any other company can also make a higher bid for Suez’s Australian assets by April 21. If the deal between Suez and Cleanaway isn’t completed, the Australian utility will still acquire a portfolio of two landfills and five transfer stations in the Sydney region for A$501 million, the companies said.If the Australia deal is completed, it would make Cleanaway among the largest waste treatment operators in the country. It’s still currently searching for a new chief executive after longtime leader Vik Bansal announced plans to step down following an investigation into his workplace conduct.Cleanaway said it plans to raise new equity to partially fund the deal.(Updates with Veolia comment in fifth 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.
The S&P 500 and the Dow closed modestly higher and Treasury yields reversed slight losses after the Federal Reserve, in minutes of its latest meeting, said that the economic recovery remains far from complete despite showing signs of progress. The Nasdaq ended the session nominally lower, and economically sensitive small caps and transports crossed the finish line well into negative territory. "Today is noncommittal, not much going on, not much conviction one way or another," said Robert Pavlik, senior portfolio manager at Dakota Wealth in Fairfield, Connecticut.
(Bloomberg) -- Carousell, a Southeast Asian online marketplace that lets people buy and sell second-hand goods, said it plans to invest aggressively to grow its classified cars business in the region.The Singapore-based startup, last valued at $850 million, will bolster its classified auto business across Malaysia, Vietnam, the Philippines, Hong Kong and Singapore with OneShift -- a portal that connects sellers with buyers and dealers -- and Reno Financial, which offers loans and other financial services, the company said in a statement.Carousell’s ambition underscores intensifying competition in the online second-hand car market in Southeast Asia, where middle class consumers are expected to swell in number to 334 million by 2030. Rivals Carsome, backed by investors including Asia Partners, and Carro, whose backers include Insignia Ventures Partners, both claim to be the region’s largest automotive marketplace and are trying to expand rapidly.“Covid has accelerated the trend of users buying and selling online, including for cars,” said Gaurav Bhasin, chief strategy officer of Carousell, who leads the firm’s automotive strategy. “We want to go one step further to power our autos brands with transactional models.”Carousell said it’s the most-visited auto classifieds platform in the region, with one of the biggest inventories of auto-related listings. Its cars business is now Carousell’s largest vertical, contributing a third of the company’s revenue.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.
Despite short-term volatility, bitcoin's uptrend remains intact. And some traders could be shifting to altcoins.
TOKYO (Reuters) -Japanese regulators will heighten scrutiny on high-risk trades by domestic financial institutions in the wake of the Archegos fallout, the Nikkei business daily reported on Wednesday. Top investment bank and brokerage, Nomura Holdings, was one of the highest-profile casualties while Mitsubishi UFJ Financial Group (MUFG) warned of a loss of around $270 million. The Financial Services Agency (FSA) and the Bank of Japan (BOJ) will scrutinise how financial institutions that incurred losses had been managing transaction risks, the Nikkei said.
U.S. Treasury Secretary Janet Yellen on Wednesday fleshed out the details of a corporate tax hike plan linked to President Joe Biden's infrastructure investment proposal, aiming to raise $2.5 trillion in new revenues over 15 years by deterring tax avoidance. Yellen's plan relies on negotiating a 21% global minimum corporate tax rate with major economies and a separate 15% minimum tax on 'booked' income aimed at the largest U.S. corporations. Yellen said that promises of increased U.S. investment by corporations under the 2017 Republican tax cuts failed to materialize.
(Bloomberg) -- The Swedes are learning that their once pioneering vision for a central bank digital currency might take a lot longer to enact than initially thought.The Riksbank just published the results of the first phase of a pilot project into what is essentially the most advanced exploration of a post-cash era to be undertaken by a major, western economy. It says the rapid pace at which cash is disappearing presents “potential problems” that a digital currency controlled by a central bank can address.The task is huge and Sweden’s central bank, the world’s oldest, keeps pushing back its timeline. After once suggesting it might be ready to move ahead with an e-krona by 2018, the Riksbank now says the current pilot project won’t be completed until early next year, and has even given itself room to continue trying until the end of 2026.Other central bankers have openly dismissed the notion that there’s any reward to be gained from being a first-mover in the field of digital currencies. Federal Reserve Chairman Jerome Powell recently said the U.S. would rather be right than first.“In most economies it will take time. And especially if lawmakers need to weigh in,” Johanna Jeansson of Bloomberg Economics.GLOBAL INSIGHT: Carpe Diem - Central Banks in Digital Future Mithra Sundberg, who heads the Riksbank unit that’s running the project from Stockholm, suggests it’s important not to settle on the technology before figuring out exactly what the digital currency needs to do. That’s as the Riksbank makes clear it’s not replacing cash, and that whatever it ends up creating -- if it moves ahead -- will probably require a new legal framework before it can be used.Meanwhile, cash in the form of bank notes and coins is slowly but surely petering out in the largest Nordic economy. Last year, Swedes used cash less often than the citizens of seven other “mature” markets, as a percentage of total transactions, according to the McKinsey Global Payments Report.But not everyone sees cashlessness as a trigger for embarking on a digital currency project. In neighboring Norway, another virtually cashless society, the central bank says there’s “no acute need” to introduce a digital currency.What Bloomberg Economics Says...“The motivation for introducing a central bank digital currency may change as policy makers explore the issue. Simply introducing a complement to cash for retail transactions may not make much of a difference in the economy. Using wholesale CBDCs in cross-border transactions has the potential to raise efficiency. Employing new digital tools for policy purposes could really alter the macroeconomic playing field. The bigger the step, the more thought it’s likely to require. Expect that to take time.”-- Johanna Jeansson, Scandinavia economistSundberg says Sweden’s e-krona pilot project hasn’t yet explored the monetary policy ramifications of such a transformation. But she and her team have “looked at the technical possibilities of being able to charge interest,” she says.The Riksbank’s pilot project shows that it would be possible to apply interest rates on a CBDC, regardless of whether it’s account-based or token based. If a negative interest rate is to be applied, the end-user can hold the tokens, but not a separate key that provides access to those tokens.“The compatibility of an interest-bearing ekrona, positive or negative, with a distribution model as tested in phase one, is a much broader question than the purely technical possibilities and limitations,” the Riksbank said.For now, the Riksbank is focusing on a so-called two-tier model, in which it would be responsible for the issuance and redemption of a CBDC. In such a framework the so-called participants, such as banks or payment firms, would have direct contact with the end-user, according to Micael Lindgren, the technical project manager at the Riksbank.Ultimately, politicians and not central bankers will decide what the future of money will look like in Sweden. Lawmakers will judge whether the information produced through the pilot project persuades them that an e-krona is even necessary, and if so, what form it should take.(Adds comment from Bloomberg Economics)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.
Analysts at Bloomberg Crypto argue the largest cryptocurrency might be due for a run analogous with the steep rallies of 2017 and 2013, following prior "halvings" on the blockchain network.
The finance chief and two other top executives at Limetree Bay Ventures, operator of a long-stalled Caribbean oil refinery, are stepping down, according to an internal letter reviewed by Reuters. The 200,000-barrel-per-day refinery in St. Croix recently halted processing after a mishap, according to people familiar with the matter. It has run more than $1 billion over its original budget and well behind a plan to begin processing in late 2019.
(Bloomberg) -- Gold advanced to the highest in more than a week as gains in bond yields and the dollar abated.Sliding Treasury yields increase the allure of bullion, which doesn’t earn interest, while a weaker dollar makes gold more appealing to investors holding other currencies. The ebb for yields and the greenback is taking place even as positive economic data shows rapid growth for U.S. businesses and jobs.That’s “good news for gold,” according to Commerzbank AG analyst Carsten Fritsch.Gold has been under pressure this year because of increasing optimism over the post-pandemic economic recovery in the U.S., which buoyed bond yields and the dollar. Investors fled bullion-backed exchange-traded funds, a major pillar in gold’s ascent to an all-time high last year, with holdings in ETFs dropping to the lowest since May.Now, bullion could have new tailwinds ahead. If concerns emerge that the U.S. economy might overheat as a result of massive fiscal stimulus, “gold would be the big winner,” Fritsch said. Gold is in a “bottoming-out phase” with support at a low of $1,680 an ounce and an upper bound of $1,760, he said.Spot gold rose 0.8% to $1,742.82 by 1:52 p.m. in New York, after touching the highest since March 25. Futures for June delivery on the Comex added 0.8% to settle at $1,743. Spot silver, palladium and platinum also advanced. The Bloomberg Dollar Spot Index fell, paring an earlier gain.Gold could extend gains if it breaks above $1,750, said Stephen Innes, chief global markets strategist at Axi. Traders were also assessing comments by Treasury Secretary Janet Yellen, who reiterated her view that the $1.9 trillion U.S. pandemic-relief bill signed last month won’t stoke inflation, and suggested that low interest rates will continue to prevail in coming years.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.
The conditions are ripe for a rally in the AUD/USD and NZD/USD, but buyers may be waiting for the release of the Fed minutes before making their move.
(Bloomberg) -- Uber Technologies Inc. said it will spend $250 million to get drivers back on the road and recruit new ones as the coronavirus pandemic eases in the U.S.The money will go toward bonuses for drivers, guaranteed pay and on-boarding for workers who are new to Uber, the company said Wednesday. The program anticipates an eventual rise in demand as more Americans are vaccinated and stores reopen.Uber plans to lay out the money over the coming months, said Matt Wing, a spokesman for the company. Bonuses will depend on a variety of factors, including location and time, he said. Uber shares declined as much as 3.6% during trading Wednesday.Ridership fell sharply over the last year, and a surge in food delivery orders failed to make up for the ride-hailing jobs lost. Many drivers for Uber and Lyft Inc. either sought work elsewhere or applied for government stimulus programs.Uber Chief Executive Officer Dara Khosrowshahi signaled a rise in driver bonuses during a conference call with investors in February. He said increased spending in the first half of the year would boost driver supply and meet what he expected to be higher demand from riders. The company spokesman declined to say how much Uber spent on driver incentives in the first quarter.(Updates with spokesman comments in the third paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
(Bloomberg) -- The purveyors of U.S. penny stocks now have a booming business in blue chips -- European blue chips.While Brexit drove most London equities trading to platforms in Amsterdam, Frankfurt and Paris, some has migrated to New York’s OTC Markets Group, known primarily for owning the “pink sheets” where thousands of speculative U.S. stocks are bought and sold.Average daily trading in European Union companies on the platform increased 27% in January and 25% in February compared to December, according to OTC Markets. The jump has accompanied rising volumes from the frenzy in retail trading during the pandemic.“We’ve been the unexpected beneficiary” of Brexit, says Jason Paltrowitz, director of OTC Markets Group International Ltd. “We’re getting a look where we might not have gotten it before.”The increase in trading volumes in New York is another sign that Brexit is driving some business away from Europe entirely. New York-based derivatives trading venues have gained following Brexit from the EU’s decision to bar its banks from trading certain contracts on London platforms.Even before Brexit, the OTC Markets platform was used to trade shares in foreign companies, such as Siemens AG, BNP Paribas SA and EssilorLuxottica SA. They can have their shares “cross traded” on the platform without going through the rigorous process of going public in the U.S. and meeting the Securities and Exchange Commisssion’s disclosure requirements.OTC Markets is trying to entice more foreign companies, arguing that it’s an easier way for foreign firms to attract U.S. investors who can trade the shares during U.S. hours and in U.S. dollars.“We’re taking that data and absolutely using it as a springboard to increase our outreach to companies both in the U.K. and more broadly in western Europe,” Paltrowitz said.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.
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