CLASS ACTION UPDATE for FUBO, IQDNX and LDOS: Levi & Korsinsky, LLP Reminds Investors of Class Actions on Behalf of Shareholders

Elle
Prince William Releases Heartfelt Statement on Prince Philip and New Photo of Him With Prince George
“I will always be grateful that my wife had so many years to get to know my grandfather and for the kindness he showed her.”
2h ago
Reuters
Indian shares, rupee slide as lockdown fears loom after COVID-19 surge
Indian shares tumbled more than 3% and the rupee hit an eight-month low on Monday as a relentless surge in COVID-19 cases and a possible lockdown by a large state threatened to derail a recovery in Asia's third-largest economy. India reported another record daily surge in coronavirus infections and overtook Brazil to be the second worst-hit country by the health crisis on Monday.
11h ago
Reuters
Instant View: India's March inflation accelerates on higher food, transportation costs
Further, core inflation too accelerated to more than a 2-year high, at close to 6.0% which does not offer comfort. Continued comfort on food and goods inflation as production continues to normalize should prove supportive. "Upside from crude oil prices, if any, could be offset by a likely hold or reduction in duties on petroleum products, softening of demand due to a resurgence in COVID-19 infections, and likelihood of a normal monsoon outturn (as per private weather forecasting firm AccuWeather) in 2021."
3h ago
Reuters
HSBC and Huawei CFO reach agreement on document publication linked to extradition case
HSBC and Huawei Technologies' Chief Financial Officer Meng Wanzhou have reached an agreement in a dispute about the publication of documents relating to U.S. fraud allegations against her, their lawyers told a Hong Kong court. The legal dispute reached the Hong Kong court last month after a British judge in February blocked the release of internal HSBC documents relating to the fraud allegations against Meng.
11h ago
FX Empire
Most Asia-Pacific Stock Markets Finish Lower as China PPI Rises More than Expected
China’s factory gate prices rose at their fastest annual pace since July 2018 in March, as growth continued to gather momentum.
1d ago
Bloomberg
Singapore Dealer Prepares Vault for 15,000 Tons of Silver
(Bloomberg) -- Inside a six-story high warehouse near Singapore’s Changi airport, a vast hangar-like space is waiting to be filled with a precious metal that usually plays second fiddle to its more lustrous sibling.The vault that’s being built by Silver Bullion Pte Ltd. will -- when completed in the first half of next year --- be able to store 15,000 tons of silver. It’s only holding around 400 tons of the metal at the moment, but the vacant space is an indication that silver appears to be on the cusp of a promising few years.Demand for coins and bars is booming, fueled in part by a Reddit-induced buying frenzy in February that drove prices to an eight-year high. While the fervor has abated, retail interest is still elevated, valuations are relatively cheap and measures are being taken to meet the surge in demand. The amount of silver stored in vaults in London rose 11% in March to a record, according to the London Bullion Market Association.As well as the Singapore vault, JM Bullion, one of the biggest precious metals retailers in the U.S., plans to open a 25,000-square-foot-warehouse in Dallas in June that will be used for storing silver and other precious metals.The metal’s crucial role in the energy transition -- it’s a key component in solar panels -- also looks set to buoy consumption over the longer-term. All this has some analysts forecasting that silver will outperform gold this year.“The outlook for demand growth for silver over the next few years looks very positive, especially across a wide range of industrial applications, including solar, 5G and automotive,” said Philip Klapwijk, managing director of Hong Kong-based consultant Precious Metals Insights Ltd. “That, coupled with ongoing high levels of investment is likely to create the need for more dedicated storage space for silver in bullion and also intermediate forms.”Gregor Gregersen, founder of Silver Bullion, said he started searching for a bigger warehouse two or three years ago and that decision was vindicated last year when demand for the metal surged during the coronavirus pandemic. “The idea is to make this into a really iconic building,” he said during a tour of the vault that will be known as The Reserve. “There isn’t really a facility built specifically to store large quantities of silver securely.”Singapore has a reputation as a stable financial center and has taken steps to position itself as a bullion hub, exempting investment-grade gold, silver and platinum from a goods and services tax.Physical investment in silver, which covers bullion coin and bar purchases, is expected to reach a six-year high of 257 million ounces in 2021, according to the Silver Institute.Spot silver, currently trading around $25 an ounce, is forecast by Citigroup Inc. to peak at $28 to $30 in the second half, aided by “still solid” investment demand and an end to physical de-stocking in China and India. The lender sees the price averaging $27.30 this year. Morgan Stanley, meanwhile sees the metal averaging $25 an ounce in 2021, up 22% from last year.Gold, meanwhile, is stabilizing after its first quarterly loss since 2018 amid high bond yields and optimism over the global economic recovery from the pandemic that’s damping demand for the metal. Citi sees gold, currently fetching around $1,740 an ounce, falling to $1,575 in six to 12 months.Sill, there’s no shortage of silver. The Silver Institute expects the global market to remain in a surplus this year, although it sees the lowest excess since 2015. And even against a backdrop of strong electronics and automotive demand as well as growing solar power investment, silver’s failure to break higher suggests the gold price, real yields and the U.S. dollar remain powerful drags, Morgan Stanley said in a note.“Considering the high correlation of silver to gold, and our bearish outlook for the yellow metal over the next 12 months, we expect silver together with gold to continue to struggle amid higher real interest-rate expectations in the U.S.,” said Giovanni Staunovo, a strategist at UBS Group AG.JM Bullion Chief Executive Officer Michael Wittmeyer is more optimistic. The Reddit-fueled buying frenzy caused a spike in demand from existing silver bugs as well as bringing in a lot of first-time investors in the metal, he said. “We’re just trying to expand our capacity so that next time this happens, we’ll be able to get all these orders shipped more quickly.”The accelerating move away from fossil fuels should also provide an enduring tailwind for silver demand as investment in solar power ramps up. China, Japan and South Korea all set carbon zero targets last year, while the U.S. is considering emissions cuts of 50% or more from 2005 levels by 2030.The energy transition demand should give prices an extra boost, said CPM Group analyst Rohit Savant. Silver will average $27 this year and beat gold due to its relatively cheaper valuation and strong investment demand, he said. Spot silver fell 2% to $24.77 an ounce at 10:40 a.m. in New York on Monday after gaining 1% last week.In Singapore, Silver Bullion’s Gregersen is confident all that currently vacant space in his vault won’t go to waste. “Silver is usually a forgotten metal that people don’t really care much about,” he said. “But it’s starting to shine a bit more and that trend will continue.”(Updates with spot silver price in the 16th 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.
9m ago
Bloomberg
Rupee Tumbles With Stocks as Virus Cases in India Hit New Record
(Bloomberg) -- India’s deepening coronavirus crisis slammed the nation’s stocks and currency on concern it will deliver a fresh blow to an economy that’s only just recovering from the worst contraction in nearly seven decades.The Indian rupee dropped past 75 to a dollar for the first time since August 2020, while the benchmark S&P BSE Sensex Index declined 3.4%, the most in almost two months. India reported a record 168,912 new infections for a day, taking the tally to 13.53 million cases, the government said Monday.Many provinces across the nation, from the financial hub Mumbai to capital New Delhi, are bringing back stricter restrictions on movement of people to curb the surge in cases. Reports are emerging of hospital beds running short and immunization centers turning away people as they run out of vaccines.That and a vaccine shortage “are unnerving markets and no one is sure whether lockdowns will help bring cases under control,” said Deepak Jasani, head of retail research at HDFC Securities. Given the uncertainty, “the incentive to try and bottom-fish at this point is limited for traders.”Taking a BeatingThe NSE Nifty 50 Index dropped 3.5%, making India’s key stock indexes the worst performers in Asia on Monday. All 19 sector sub-indexes compiled by BSE Ltd. slipped, led by a gauge of property and industrial shares.India’s virus resurgence has prompted some brokerages to reconsider their preference for stocks, which are most sensitive to the economic recovery. Nomura cut the weight of financials and cement shares in its model portfolio, while Jefferies downgraded Indian banks to underweight from overweight.Not everyone is pessimistic. India’s long-term outlook remains strong and any decline in equities due to infections should be used as an entry point by investors, according to Prabhudas Lilladher Ltd. India’s gross domestic product is forecast to grow by as much as 12.5% this fiscal year, which would make it the world’s fastest-growing major economy.Bonds held on to last week’s gains, with the yield on the benchmark 10-year notes near the lowest since mid-February, amid optimism the central bank may keep its policy accommodative for long to support the economy. The rupee fell 0.4% to close at 75.0550 per dollar on Monday.“We expect the rupee to weaken versus the USD as have other EM currencies,” and given the slow progress of vaccination, the economy “will be slower to recover,” R Venkataraman, managing director at IIFL Securities, wrote in a note.(Updates with closing prices; adds IIFL analyst’s comment in last paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
5h ago
Reuters
Analysis: Chinese tech start-ups pull IPO plans as Beijing tightens scrutiny
A growing number of Chinese tech start-ups are cancelling plans to list on Nasdaq-style markets at home with some eyeing Hong Kong share sales instead, as regulators tighten scrutiny of IPO applicants after the halting of Ant Group's $37 billion float. Over 100 companies have voluntarily withdrawn applications to list on Shanghai's STAR Market and Shenzhen's ChiNext since Ant's termination of its initial public offering (IPO) in November, according to Reuters review of exchange filings. The unprecedented withdrawals come against the backdrop of sharply intensified grilling of listing prospects by regulators, leading to IPO delays, outright rejection or even penalties, say bankers and company executives.
16h ago
FX Empire
U.S dollar faces headwinds in a U.S Fed dovish stance
The greenback began the first trading session of the week on a strong footing but remained close to its yearly lows thanks to the plunging value in U.S. Treasury yields.
6h ago
Bloomberg
Record Alibaba Fine Shows China’s Big Tech Can’t Fight Back
(Bloomberg) -- After China imposed a record antitrust fine on Alibaba Group Holding Ltd., the e-commerce giant did an unusual thing: It thanked regulators.“Alibaba would not have achieved our growth without sound government regulation and service, and the critical oversight, tolerance and support from all of our constituencies have been crucial to our development,” the company said in an open letter. “For this, we are full of gratitude and respect.”It’s a sign of how odd China’s crackdown on the power of big tech has been compared with the rest of the world. Mark Zuckerberg and Tim Cook would likely not express such public gratitude if the U.S. government were to hit Facebook Inc. or Apple Inc. with record antitrust fines.Almost everything about China’s regulatory push is out of the ordinary. Beijing regulators wrapped up their landmark probe in just four months, compared with the years that such investigations take in the U.S. or Europe. They sent a clear message to the country’s largest corporations and their leaders that anti-competitive behavior will have consequences.For Alibaba, the $2.8 billion fine was less severe than many feared and helps lift a cloud of uncertainty hanging over founder Jack Ma’s internet empire. The 18.2 billion yuan penalty was based on just 4% of the internet giant’s 2019 domestic revenue, regulators said. While that’s triple the previous high of almost $1 billion that U.S. chipmaker Qualcomm Inc. handed over in 2015, it’s far less than the maximum 10% allowed under Chinese law. Alibaba’s shares rose more than 8% Monday in Hong Kong.“We’re happy to get the matter behind us,” Joseph Tsai, co-founder and vice chairman, said on an investor call on Monday. “These regulatory actions are undertaken to ensure fair competition.”The fine came with a plethora of “rectifications” that Alibaba will have to put in place -- such as curtailing the practice of forcing merchants to choose between Alibaba or a competing platform -- many of which the company had already pledged to establish. But Tsai said regulators won’t impose radical changes to its e-commerce strategy. Instead, he and other executives pledged to open up Alibaba’s marketplaces more, lower costs for merchants while spending “billions of yuan” to help its clients handle e-commerce.Tsai said the company is unaware of any other antitrust investigations into the company, except for a previously discussed probe into acquisitions and investments by Alibaba and other tech giants.“The required corrective measures will likely limit Alibaba’s revenue growth as a further expansion in market share will be constrained,” Lina Choi, a senior vice president at Moody’s Investors Service, said in a note. “Investments to retain merchants and upgrade products and services will also reduce its profit margins.”Alibaba Chief Executive Officer Daniel Zhang on Saturday declared his company now ready to move on from its ordeal, while China’s Communist Party mouthpiece People’s Daily issued assurances that Beijing wasn’t trying to stifle the sector.The Hangzhou-based firm “has escaped possible outcomes such as a forced breakup or divestment of assets. The penalty will not shake up its business model, either,” said Jet Deng, an antitrust lawyer at the Beijing office of law firm Dentons.Beijing remains intent on reining in its internet and fintech giants, a broad campaign that’s wiped more than $250 billion off Alibaba’s valuation since October. The e-commerce giant’s speedy capitulation underscores its vulnerability to further regulatory action -- a far cry from just six years ago, when Alibaba openly contested one agency’s censure over counterfeit goods on Taobao and eventually forced the State Administration for Industry and Commerce to backtrack on its allegations.On Monday, shares in Alibaba’s fellow internet giants from social media titan Tencent Holdings Ltd. to food delivery leader Meituan and JD.com Inc. fell on fears they could draw similar scrutiny. “It’s exactly what the market is thinking right now: Tencent and Meituan are next in line if the same standards are to be applied, but even the worst won’t be so bad,” said Zhuang Jiapeng, a fund manager at Shenzhen JM Capital Co.Beyond antitrust, government agencies are said to be scrutinizing other parts of Ma’s empire, including Ant Group Co.’s consumer-lending businesses and Alibaba’s extensive media holdings. And the shock of the crackdown will continue to resonate with peers from Tencent and Baidu Inc. to Meituan, forcing them to tread far more carefully on business expansions and acquisitions for some time to come.What Bloomberg Intelligence SaysChina’s record fine on Alibaba may lift the regulatory overhang that has weighed on the company since the start of an anti-monopoly probe in late December. The 18.2 billion yuan ($2.8 billion) fine, to penalize the anti-competitive practice of merchant exclusivity, is equivalent to 4% of Alibaba’s 2019 domestic sales. Still, the company may have to be conservative with acquisitions and its broader business practices.-- Vey-Sern Ling and Tiffany Tam, analystsClick here for the full research.The investigation into Alibaba was one of the opening salvos in a campaign seemingly designed to curb the power of China’s internet leaders, which kicked off after Ma infamously rebuked “pawn shop” Chinese lenders, regulators who don’t get the internet, and the “old men” of the global banking community. Those comments set in motion an unprecedented regulatory offensive, including scuttling Ant’s $35 billion initial public offering.It remains unclear whether the watchdog or other agencies might demand further action. Regulators are said, for instance, to be concerned about Alibaba’s ability to sway public discourse and want the company to sell some of its media assets, including the South China Morning Post, Hong Kong’s leading English-language newspaper.Read more: China Presses Alibaba to Sell Media Assets, Including SCMPChina’s top financial regulators now see Tencent as the next target for increased supervision, Bloomberg News has reported. And the central bank is said to be leading discussions around establishing a joint venture with local technology giants to oversee the lucrative data they collect from hundreds of millions of consumers, which would be a significant escalation in regulators’ attempts to tighten their grip over the country’s internet sector.“The high fine puts the regulator in the media spotlight and sends a strong signal to the tech sector that such types of exclusionary conduct will no longer be tolerated,” said Angela Zhang, author of “Chinese Antitrust Exceptionalism” and director of the Centre for Chinese Law at the University of Hong Kong. “It’s a stone that kills two birds.”For now, it appears investors are just glad it wasn’t worse. In its statement, the State Administration for Market Regulation concluded Alibaba had used data and algorithms “to maintain and strengthen its own market power and obtain improper competitive advantage.” Its practice of imposing a “pick one from two” choice on merchants “shuts out and restricts competition” in the domestic online retail market, according to the statement.The firm will be required to implement “comprehensive rectifications,” including strengthening internal controls, upholding fair competition and protecting businesses on its platform and consumers’ rights, the regulator said. It will need to submit reports on self-regulation to the authority for three consecutive years.The company will have to make adjustments but can now “start over,” Zhang wrote in a memo to Alibaba’s employees Saturday.“We believe market concerns over the anti-monopoly investigation on BABA are addressed by SAMR’s recent decision and penalties,” Jefferies analysts wrote in a research note entitled “A New Starting Point.”Indeed, The People’s Daily said in its commentary Saturday that the punishment was intended merely to “prevent the disorderly expansion of capital.”“It doesn’t mean denying the significant role of platform economy in overall economic and social development, and doesn’t signal a shift of attitude in terms of the country’s support to the platform economy,” the newspaper said. “Regulations are for better development, and ‘reining in’ is also a kind of love.”(Updates with shares and commentary from the 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.
9h ago
Bloomberg
Bitcoin Nears Record Before Largest U.S. Crypto Exchange Listing
(Bloomberg) -- Bitcoin neared an all-time high on Monday as bullish sentiment gathered steam ahead of a listing by the largest U.S. cryptocurrency exchange.The token rose as much as 2.6% to $61,229, the highest in nearly a month, before falling back to trade little changed. On March 13, Bitcoin reached a record of $61,742. The cryptocurrency is up almost ninefold in the past year, a return that towers above that of more familiar assets like equities or bullion.Against the backdrop of Wall Street’s growing embrace of crypto, the direct listing of digital-token exchange Coinbase Global Inc. is fanning interest. Coinbase is due to go public on the Nasdaq on April 14, the first listing of its kind for a major cryptocurrency company and a test of investor appetite for other start-ups in the sector.Meanwhile, exchange tokens, such as Binance Coin, are seeing their value rise ahead of Coinbase’s public debut as well. Binance’s, known as BNB, rose 23% Monday, according to CoinMarketCap.com. Huobi Token and KuCoin Token, among others, also gained.“A crypto company moving to IPO is a big milestone,” said Nick Jones, CEO and co-founder at cryptocurrency wallet Zumo. “It’s moves like this that make consumers feel safer with crypto and ultimately boost confidence in the space.”A growing list of companies are looking at or even investing in Bitcoin, drawn by client demand, price momentum and arguments that it can hedge risks such as faster inflation. Tesla Inc. earlier this year disclosed a $1.5 billion investment in Bitcoin and more recently started accepting it as payment for electric cars.Elsewhere, Goldman Sachs Group Inc. has said it’s close to offering investment vehicles for Bitcoin and other digital assets to private wealth clients. Morgan Stanley plans to give rich clients access to three funds that will enable crypto ownership. The deck of exchange-traded funds tracking the token is expanding, while Paypal Inc. and Visa Inc. have begun using cryptocurrencies as part of the payments process.A study by Dutch asset manager Robeco suggests that despite its high volatility, a 1% allocation to Bitcoin in a diversified multi-asset portfolio could be beneficial given its resemblance to gold and its near zero correlation to other asset classes.“In recent months, a clear and emphatic narrative that Bitcoin is becoming a store of value in the form of digital gold has developed,” according to Jeroen Blokland, a portfolio manager at Robeco.Other cryptocurrencies, such as second-ranked Ether, have also been climbing. The overall value of more than 6,600 coins tracked by CoinGecko recently surpassed $2 trillion.(Adds paragraph about exchange tokens)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.
25m ago
Yahoo Finance
What Warren Buffett said about the 'Buffett Indicator': Morning Brief
Top news and what to watch in the markets on Monday, April 12, 2021.
5h ago
Quartz
“Er xuan yi”: The business tactic that led to Alibaba’s $2.8 billion antitrust fine
The regulator's statement offers the most detailed look so far at how companies like Alibaba use a controversial business tactic.
4h ago
Reuters
Alibaba shrugs off $2.75 billion antitrust fine, shares rally
Alibaba does not expect any material impact from the antitrust crackdown in China that will push it to overhaul how it deals with merchants, its CEO said on Monday, after regulators fined the e-commerce giant $2.75 billion for abusing market dominance. Shares in Alibaba Group Holdings Ltd rose as much as 9% in Hong Kong trade as a key source of uncertainty for the company was removed, and on relief the fine and steps ordered were not more onerous. Alibaba has come under intense scrutiny since billionaire founder Jack Ma's public criticism of the Chinese regulatory system in October.
14h ago
Reuters
Gold slips as firmer U.S. yields dull appeal
Gold fell on Monday as an uptick in U.S. Treasury yields dimmed bullion's appeal, while investors awaited key U.S. inflation and retail sales data for cues on economic health. Spot gold was 0.6% down at $1,733.40 an ounce by 10:26 a.m. EDT (1426 GMT). U.S. gold futures eased 0.6% to $1,734.20.
13h ago
Reuters
Stocks slip off record highs ahead of earnings, U.S. data
LONDON (Reuters) -Global stock markets fell from record highs on Monday as investors waited to see whether U.S. earnings would justify sky-high valuations, while a rally in bonds could be tested by what should be strong readings for U.S. inflation and retail sales this week. MSCI's All Country World Index, which tracks stocks across 49 countries, was down 0.14% after the start of European trading, off Friday's record high. Morgan Stanley noted that despite the S&P 500 making all-time highs, small-cap stocks represented by the Russell 2000 small-cap index have underperformed the S&P 500 by 8% since peaking on March 12.
15h ago
Reuters
Analysis: Chinese tech start-ups pull IPO plans as Beijing tightens scrutiny
A growing number of Chinese tech start-ups are cancelling plans to list on Nasdaq-style markets at home with some eyeing Hong Kong share sales instead, as regulators tighten scrutiny of IPO applicants after the halting of Ant Group's $37 billion float. Over 100 companies have voluntarily withdrawn applications to list on Shanghai's STAR Market and Shenzhen's ChiNext since Ant's termination of its initial public offering (IPO) in November, according to Reuters review of exchange filings. The unprecedented withdrawals come against the backdrop of sharply intensified grilling of listing prospects by regulators, leading to IPO delays, outright rejection or even penalties, say bankers and company executives.
14h ago
Reuters
How a winter storm in Texas sent a chill through America's RV industry
Bill Reith felt the blast of February's freak cold snap in Texas almost immediately - from inside his office in northern Indiana. As head of the largest recreational vehicle division of REV Group Inc, a Milwaukee-based producer of specialty vehicles, he watched helplessly as the power grid in Texas buckled under some of the coldest temperatures seen in the state in decades, hobbling shipments of a mundane, but vital, commodity used in every one of his company's RVs: foam. Petrochemical plants of all types shut down in Texas because of the power cuts, including the only five in North America that produce propylene oxide - a critical raw material for the foam that goes into seat cushions and other RV components.
5h ago
Reuters
Holt to head KPMG's UK arm ahead of Carillion probe outcome
Global accountants KPMG said on Monday that Jon Holt has been elected by partners to head its 2.3 billion pound ($3.17 billion) UK arm, which faces a potential fine and major industry reform. Holt, head of audit since 2019, takes up the CEO job immediately until September 2025, replacing Bill Michael, who resigned after reports that he told partners to "stop moaning" about the impact of COVID-19 on their lives. "Now is the time to challenge ways of working and use what we’ve learnt during the pandemic to really drive positive action," Holt said in a statement.
4h ago
Bloomberg
Billionaire Saudi Family Breaks Mold on Kingdom’s Secrecy
(Bloomberg) -- For Ahmad BinDawood, last year’s share offering in the eponymous Saudi grocery business was a chance to shape his legacy at the family firm he’s worked at since the age of eight, while cementing a $3.1 billion fortune built over the decades by his father and uncles.As the October public offering of BinDawood Holding Co. got underway, details emerged of some $76 million in previously undisclosed loans made by the Saudi company to family members. In a departure from the traditional secrecy associated with the kingdom’s family firms, Jeddah-based BinDawood revealed everything, put the IPO on hold and gave buyers the chance to take their money back.As the loans were quickly repaid, the sale resumed and eventually raised about $500 million for the family, attracting $29 billion in bids along the way.“We have to be very transparent with investors,” BinDawood said in an interview in Riyadh last month. “If there is any disclosure at any time that we need to make, we will go ahead and do it. So we took this on the shoulder and decided to announce it.”The success of the IPO has helped establish BinDawood, 37, as one of a new breed of Saudi executives rising within a corporate world that was largely off-limits to foreigners until a few years ago. What’s more, it has made him emblematic of a drive to shake up traditional ways of doing business, dovetailing with Saudi Crown Prince Mohammed bin Salman’s goal of transforming the oil-rich kingdom into a regional business hub.That mold-breaking character can even be seen inside BinDawood stores. The past few months have seen the company doing prominent Valentine’s Day and Easter promotions, a move unthinkable just a few years ago in a country that has historically adhered to a strict Wahhabist interpretation of Islam.Prince Mohammed’s commitment to reshaping the economy isn’t all working in BinDawood’s favor. A sudden decision to triple value added tax last year hit consumer spending. Higher customs duties and fees on expatriates are driving up costs for Saudi firms, too. And all at a time when the Covid-19 pandemic has been stoking unemployment.“We remain cautious of near-to-mid term growth across the consumers space as market size shrinks on potential expat depopulation,” said Mehwish Zafar, a senior equity analyst at Arqaam Capital in Dubai who has a “hold” recommendation on the shares. Like-for-like sales growth will probably be negative until at least 2022, he said, with growth only coming from new store openings or acquisitions.Shares in BinDawood jumped more than 30% in the days immediately after the sale. They have since slipped back, showing as of Monday a gain of about 11.5% from the listing price.It’s a performance that has helped buttress the family’s bid to diversify into other assets while strengthening the core business, a goal identified by Ahmad BinDawood as key to avoiding the kind of strife his father feared might undermine the business as it passed to a new generation.“The majority of family businesses don’t survive the transition to the third generation, and that’s something that concerned my father a lot,” BinDawood said.Pilgrims ProgressThe rise of the BinDawood business has been some 40 years in the making. Once a small-time vendor of Arabian perfumes and groceries to pilgrims visiting the Islamic holy sites of Mecca and Medina, it is now a nationwide concern spanning supermarkets and hypermarkets, hotels and distribution centers. The grocery business alone employs more than 10,000 people across 74 stores.Ahmad BinDawood’s own destiny was sealed as soon as his father, Abdulrazzag BinDawood graduated in the 1980’s from the King Fahd University of Petroleum and Minerals in Dhahran. Instead of following his peers into the oil industry, he decided to join his brothers Ismail and Abdullah in their burgeoning retail trade.Which is why Ahmad found himself on the front line at such a young age. At just eight, he was helping to sell items to the pilgrims during his school holidays, envious of friends who were away avoiding Saudi Arabia’s scorching summers.“Our friends were traveling and off enjoying themselves and sometimes we would would ask: why not us?” BinDawood said. “But that experience built the passion in us to stay in the business that our father and our uncles built.”A decision to push into online shopping and delivery helped prepare the firm for lockdowns during the coronavirus pandemic, but couldn’t outweigh the hit from the absence of religious tourists who were prevented from entering the kingdom for much of the year. While profit climbed almost 7% last year, it had slumped more than 53% in the fourth quarter as Saudi Arabia reimposed travel restrictions.BinDawood is still optimistic that shoppers will return as travel resumes, though how quickly pilgrims come back to Saudi Arabia in anything like their previous numbers remains uncertain.Next up may be the purchase of a rival grocery chain to expand into neighboring countries, BinDawood said. At the same time, the IPO proceeds will help further develop the BinDawood Group family office, which Ahmad’s father is now running. That fortune, which is split across several family members, is estimated at about $3.1 billion, according to the Bloomberg Billionaires Index.“The IPO had two main angles to it -- sustainability and continuity of the business first, and second the diversification for the family,” he said. “We are in the process of building the family office and bringing in the right talent.”More family businesses are likely to follow in BinDawood’s footsteps. The IPO of Saudi Aramco in 2019, which many Saudis never thought they would see, “has been a massive driver in motivating families to take their operating businesses public to help grow their enterprises and generate new wealth,” said Tayyab Mohamed, co-founder of London-based family office staffing firm, Agreus Group.For all the challenges, Ahmad BinDawood is optimistic, citing his life-long involvement in the business as a foundation for success.“Retail is embedded in our DNA now,” he said.(Updates share performance in ninth 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.
3h ago

Symbol	Last Price	Change	% Change
FUBO fuboTV Inc.	21.73	-1.58	-6.78%
IQDNX Infinity Q Diversified Alpha Fund Institutional Class	12.83	+0.01	+0.08%
LDOS Leidos Holdings, Inc.	100.38	-0.29	-0.28%

S&P 500

Dow 30

Nasdaq

Russell 2000

Crude Oil

Gold

Silver

EUR/USD

10-Yr Bond

GBP/USD

USD/JPY

BTC-USD

CMC Crypto 200

FTSE 100

Nikkei 225

CLASS ACTION UPDATE for FUBO, IQDNX and LDOS: Levi & Korsinsky, LLP Reminds Investors of Class Actions on Behalf of Shareholders

Recommended Stories

Prince William Releases Heartfelt Statement on Prince Philip and New Photo of Him With Prince George

Indian shares, rupee slide as lockdown fears loom after COVID-19 surge

Instant View: India's March inflation accelerates on higher food, transportation costs

HSBC and Huawei CFO reach agreement on document publication linked to extradition case

Most Asia-Pacific Stock Markets Finish Lower as China PPI Rises More than Expected

Singapore Dealer Prepares Vault for 15,000 Tons of Silver

Rupee Tumbles With Stocks as Virus Cases in India Hit New Record

Analysis: Chinese tech start-ups pull IPO plans as Beijing tightens scrutiny

U.S dollar faces headwinds in a U.S Fed dovish stance

Record Alibaba Fine Shows China’s Big Tech Can’t Fight Back

Bitcoin Nears Record Before Largest U.S. Crypto Exchange Listing

What Warren Buffett said about the 'Buffett Indicator': Morning Brief

“Er xuan yi”: The business tactic that led to Alibaba’s $2.8 billion antitrust fine

Alibaba shrugs off $2.75 billion antitrust fine, shares rally

Gold slips as firmer U.S. yields dull appeal

Stocks slip off record highs ahead of earnings, U.S. data

Analysis: Chinese tech start-ups pull IPO plans as Beijing tightens scrutiny

How a winter storm in Texas sent a chill through America's RV industry

Holt to head KPMG's UK arm ahead of Carillion probe outcome

Billionaire Saudi Family Breaks Mold on Kingdom’s Secrecy