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Bitcoin, Ether Etch Largest Daily Gains in a Week

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Sebastian Sinclair
·1 min read
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The world’s two largest cryptocurrencies by market capitalization, bitcoin and ether, have rebounded from seven-day lows.

Bitcoin was up 8.8%, over the past 24 hours having clawed back more than $3,000 from May 31 lows near $34,200. At press time the price was around $37,200. The move marks bitcoin’s biggest daily gain in a week.

Ether surged 15% over the previous 24 hours, also the most in a week, extending the rally from May 23 lows to find a footing above $2,670.

Related: Bitcoin Miner Marathon Will No Longer Censor Transactions, CEO Says

“We’ve seen our institutional clients express nothing but increased interest in strengthening their long-term positions during this time,” said Gunnar Jaev, COO at First Digital Trust, a digital-asset trust and custodian. “The movement is bullish.”

The price increases came amid fresh reports that the Reserve Bank of India (RBI) issued a circular on Monday stating commercial banks under its purview cannot cite the reserve bank’s 2018 ban.

That ban initially denied customers involved in digital assets access to traditional banking services. The ban was then quashed by the country’s supreme court last year.

Prices have since begun to cool, with intraday resistance around $38,000 for bitcoin and $2,730 for ether.

Related: Human Rights Foundation Gives Out $210K in Bitcoin Development Grants

Other notable cryptos in the top 10 by market capitalization have also risen between 3% and 13% over the last 24 hours. XRP, Uniswap, and Dogecoin clocked the most gains.

See also: RBI Says Banks Can’t Quote 2018 Circular to Restrict Crypto Transactions

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  • Exxon Exits Oil Exploration Prospect in Ghana After Seismic Work

    (Bloomberg) -- Exxon Mobil Corp. is pulling out of a deep-water oil prospect in Ghana just two years after the west African nation ratified an exploration and production agreement with the U.S. oil titan.The company relinquished the entirety of its stake in the Deepwater Cape Three Points block and resigned as its operator after fulfilling its contractual obligations during the initial exploration period, according to a letter to Ghana’s government seen by Bloomberg and people familiar with the matter, who asked not to be named because the information isn’t public.Exxon controlled 80% of the block, with state-owned Ghana National Petroleum Corp. holding 15% and Ghana Oil Co., the remaining 5%. The two partners will now have to search for a new operator for the block, the people said.The work done so far included processing about 2,200 square kilometers (850 square miles) of seismic data, but Exxon didn’t drill any exploration wells, the people said.Exxon couldn’t immediately comment during the Memorial Day holiday in the U.S. Representatives for Ghana National and Ghana Oil couldn’t immediately be reached.More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.

  • Ethereum extends gains to rise 8%; bitcoin firms

    Cryptocurrency Ethereum extended gains to rise more than 8% on Monday to $2,587 but remained 40% below a record high of above $4,300 hit earlier this month. In the latest salvo against the cryptocurrency, Bank of Japan Governor Haruhiko Kuroda said much of the trading was speculative.

  • China Huarong’s Journey From Safe Bet to Bad News: A Timeline

    (Bloomberg) -- It’s nearly two months since turbulence erupted around China Huarong Asset Management Co.At the end of March, its 4% perpetual dollar bond was trading at 102 cents on the dollar as investors figured the January execution of former chairman Lai Xiaomin for bribery put a line under past wayward behavior. But the failure of the company to release 2020 results by a March 31 deadline, and a subsequent report by mainland media Caixin that the firm will restructure, sparked weeks of turmoil. The same bond is now at 57 cents.The heart of the matter is whether the central government will rescue a state-owned company that’s integral to the smooth running of the financial system. While there are signs Beijing wants to ensure China Huarong can repay its debts on time, uncertainty prevails.Here’s a look at the key events for China Huarong:May 28The company has wired funds to repay $978 million of notes maturing within the following week, according to Bloomberg News, the biggest bond payment since the 2020 results delay.May 27Liang Qiang, who currently heads another bad-debt manager, is on track to become president of China Huarong, reports Bloomberg News.May 24China Huarong dollar bonds climb after the managing editor of Caixin Media wrote in an opinion piece that the asset manager is “nowhere near” defaulting on its more than $20 billion of offshore notes.May 21Some of China Huarong’s thinly traded onshore bonds slump after having held up better than the company’s dollar-denominated notes, signaling broadening concern about the firm’s financial health.May 18China Huarong has transferred funds to repay a $300 million note maturing May 20, Bloomberg News reports, the first dollar bond to come due since the delayed 2020 results. Prices for the firm’s dollar bonds slump earlier in the day after the New York Times reports China is planning an overhaul that would inflict “significant losses” on both domestic and foreign China Huarong bondholders.May 17The company has reached funding agreements with state-owned banks to ensure it can repay debt through at least the end of August, by which time China Huarong aims to have completed its 2020 financial statements, according to a Bloomberg News report. That as at least two of its onshore bonds see big price declines in recent days, worrying some investors.May 13The firm says it’s prepared to make future bond payments and has seen no change in the level of government support, seeking to ease investor concerns after a local media report that regulators balked at China Hurarong’s restructuring plan.May 6The company says it transferred funds to pay five offshore bond coupons due the following day, its latest move to meet debt obligations amid persistent doubts about its financial health.April 30China Huarong breaks its silence, with an executive telling media it is prepared to make its bond payments and state backing remains intact. The official also says the week’s rating downgrades “have no factual basis” and are “too pessimistic.”April 29Moody’s Investor Service downgrades China Huarong by one notch to Baa1, adding the firm remains on watch for further downgrade. The cut reflects the company’s weakened funding ability due to market volatility and increased uncertainty over its future, according to the statement.April 27China Huarong units repay bonds maturing that day. The S$600 million ($450 million) bond was repaid with funds provided by China’s biggest state-owned bank, according to a Bloomberg News report.April 26Fitch Ratings downgrades China Huarong by three notches to BBB while dropping the company’s perpetual bonds into junk territory. The lack of transparency over government support for the firm may hamper its ability to refinance debt in offshore markets, Fitch said.April 25China Huarong says it won’t meet an April 30 deadline to file its 2020 report with Hong Kong’s stock exchange because auditors needed more time to finalize a transaction the company first flagged on April 1. Securities and asset-management units said in the days before that they wouldn’t release 2020 results by month’s end.April 22The China Banking and Insurance Regulatory Commission asks lenders to extend China Huarong’s upcoming loans by at least six months, according to REDD, citing two bankers from large Chinese commercial lenders.April 21China is considering a plan that would see its central bank assume more than 100 billion yuan ($15 billion) of China Huarong assets to help clean up the firm’s balance sheet, according to a Bloomberg News report. Peer China Cinda Asset Management Co. was said to be planning the sale of perpetual bonds in the second quarter.April 20China Huarong’s key offshore financing unit says it returned to profitability in the first quarter and laid a “solid” foundation for transformation. Reorg Research reports that regulators are considering options including a debt restructuring of the unit, China Huarong International Holdings Ltd.April 19Huarong Securities Co. says it wired funds to repay a 2.5 billion yuan local note.April 16The CBIRC says China Huarong’s operations are normal and that the firm has ample liquidity. These are the first official comments about the company’s troubles. Reuters reports Chinese banks have been asked not to withhold loans to Huarong.April 13Fitch and Moody’s both put the company on watch for downgrade. The finance ministry, which owns a majority of Huarong, is considering the transfer of its stake to a unit of the country’s sovereign wealth fund, Bloomberg News reports. Chinese officials signal they want failing local government financing vehicles to restructure or go bust if debts can’t be repaid.April 9China Huarong says it has been making debt payments “on time” and its operations are “normal.” Bloomberg News reports the company intends to keep Huarong International as part of a potential overhaul that would avoid the need of a debt restructuring or government recapitalization. S&P Global Ratings puts China Huarong’s credit ratings on watch for possible downgrade.April 8China Huarong is preparing to offload non-core and loss-making units as part of a broad plan to revive profitability that would avoid the need for a debt restructuring or government recapitalization, Bloomberg News reports.April 6Selling gains steam in China Huarong’s dollar bonds, following a holiday in China. Huarong Securities says there has been no major change to its operations, in response to a price plunge for its 3 billion yuan local bond.April 1China Huarong announces a delay in releasing 2020 results, saying its auditor is unable to finalize a transaction. Stock trading is suspended and spreads jump on the firm’s dollar bonds while China Huarong tells investors its business is running as usual. Caixin reports the company submitted restructuring and other major reform plans to government officials and shareholders.More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.

  • Malaysian Assets Fall After Government Imposes Full Lockdown

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  • Turkish Economy Likely Outperformed Most Peers But at a Cost

    (Bloomberg) -- Sign up for the New Economy Daily newsletter, follow us @economics and subscribe to our podcast.Turkey’s economy has continued to grow at a strong pace so far this year, but that doesn’t necessarily mean its citizens are getting richer.The $717 billion economy likely outperformed all Group of 20 nations except for China in the first quarter after nearly stalling a year ago when the pandemic struck. It’s been bolstered by robust consumption on the back of last year’s government-led credit push, an expansion that came at the expense of price and currency stability.Data on Monday is likely to show gross domestic product rose 6.3% from a year earlier and 1.3% from the fourth quarter, according to the medians of forecasts in Bloomberg surveys. Treasury and Finance Minister Lutfi Elvan said Thursday that “data point to 6% growth in the first quarter.”There is an “exchange rate illusion” in Turkey’s economic growth data, according to Enver Erkan, chief economist at Istanbul-based Tera Yatirim, who’s ranked by Bloomberg as the most accurate forecaster on Turkish GDP data.Noting that the GDP per capita in U.S. dollar terms dropped nearly 40% since 2013 to around $7,700 last year, Erkan said Turkey’s recent economic model isn’t sustainable as the growth is mainly driven by consumption supported by government spending and loan campaigns.“This comes at the expense of lira and price stability,” he said.The government pushed banks to ramp up lending to help businesses and consumers ride out last year’s Covid-19 emergency. The credit boom was coupled with a front-loaded easing cycle that helped prime the economy. That growth push weakened the currency by 20% last year and kept headline inflation in double digits. The size of the economy dropped to $717 billion last year from $760.8 billion a year earlier.The currency further lost 10% against the dollar in the first quarter, especially after President Recep Tayyip Erdogan fired the central bank’s former hawkish governor Naci Agbal in March. The decision to fire Agbal, who had sought to restore the central bank’s credibility, set off a swift reversal of investor enthusiasm, sending Turkish markets into a nosedive.The data expose the challenge facing new central bank Governor Sahap Kavcioglu as he looks to restore price stability without cooling the economy ahead of the general elections in 2023.Kavcioglu has pledged policy continuity after his appointment and kept benchmark interest rate unchanged at 19% for a second meeting this month, saying the pace of price gains had peaked in April. Consumer inflation quickened for a seventh month to 17.14% in April.More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.

  • Credit Suisse’s RenTech Fund Holds Back Some Client Cash

    (Bloomberg) -- Credit Suisse Group is temporarily barring clients from withdrawing all their cash from a fund that invests with Renaissance Technologies.The bank has seen redemption requests prompted by the poor performance of the CS Renaissance Alternative Access Fund, according to people with knowledge of the matter. Assets under management slumped to about $250 million this month, from approximately $700 million at the start of 2020, the people said, asking not to be identified as the matter is private.Redemption demands at the fund trigger a hold back clause, which means clients will receive 95% of their funds after two months, with the remaining 5% expected to be paid out in January, after the fund’s year-end audit, the people said. The hold back mechanism was put in place at the fund’s inception in 2016.The fund lost about 32% last year, in line with the decline in the Renaissance Institutional Diversified Alpha Fund International fund that it invests into, the people said. Renaissance, regarded as one of the most successful quant investing firms in the world, was rocked by billions of dollars in redemptions earlier this year after unprecedented losses in 2020. Three of its funds open to external investors fell by double digits last year.Credit Suisse and Renaissance declined to comment.Credit Suisse is currently under broader scrutiny as new chairman Antonio Horta-Osorio reviews the risk and control functions after the implosion of the bank’s supply-chain finance funds linked to Greensill Capital and the collapse of family office Archegos Capital Management.The Credit Suisse feeder fund was sold as an investment option for rich clients at the bank’s wealth arm.The Renaissance fund, which allows investors to take out money every month, also has the ability to hold back but is not invoking the clause and hasn’t ever done so, according to a person with knowledge of the matter.The fund was up 9.4% this year through May 21 after last year’s losses, the person said. Hold back clauses are a standard part of offer documents at some U.S. based hedge funds.(Updates with details on hold back clause in third paragraph)More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.

  • Futures, Stocks Decline With Jobs Data in View: Markets Wrap

    (Bloomberg) -- U.S. futures slipped along with European stocks on Monday as traders await fresh catalysts, with the key American jobs data later this week set to provide further clues on the outlook for the world’s biggest economy amid lingering inflation concerns.Contracts on the S&P 500 and Nasdaq declined, with trading hours curtailed due to the Memorial Day holiday in the U.S. The dollar weakened against a basket of peers. The euro gained after data showed Germany’s inflation rate rose to the highest level since October 2018, while price pick-ups in May were also reported by Spain and Italy. There’s no Treasuries cash trading today, after the 10-year yield closed just below 1.6% on Friday.The utilities sector dragged the Stoxx Europe 600 index lower as Spain’s Endesa SA declined following reports the Spanish government is preparing to rein in windfall profits for power producers. Deutsche Bank AG dropped after the Federal Reserve warned that its compliance programs aren’t adequate. U.K. markets are closed for a holiday.Oil climbed as OPEC and its allies forecast that inventories will fall sharply this year if the group sticks to its plan. Gold headed for the biggest monthly advance since July and most industrial metals gained.Global stocks remain near a record, lifted by the ongoing economic recovery from the pandemic and injections of stimulus. The rally has so far weathered concerns that price pressures could force an earlier-than-expected reduction in central bank support. But investors remain sensitive to the risk, and Friday’s U.S. non-farm payrolls report could buffet markets if it changes perceptions of the rebound’s strength.“Policy makers have committed to accepting a higher level of inflation, higher volatility in inflation and as that happens you will see inflation moving structurally higher,” Mixo Das, JPMorgan Asia equity strategist, said on Bloomberg TV. “I don’t think this is in the prices yet.”The offshore yuan weakened after China forced banks to hold more foreign currencies in reserve for the first time in more than a decade, its most substantial move yet to rein in the surging currency. Bitcoin rebounded from Friday’s slump to trade above $36,500.Here are key events to watch this week:U.S. markets are closed Monday for the Memorial Day holiday. U.K. markets will be closed for the Spring Bank holidayReserve Bank of Australia policy decision TuesdayOPEC+ meets to review oil production levels TuesdayPhiladelphia Fed President Patrick Harker, Chicago Fed President Charles Evans, Atlanta Fed President Raphael Bostic and Dallas Fed President Robert Kaplan speak WednesdayU.S. employment report for May on FridayThese are some of the main moves in markets:StocksFutures on the S&P 500 fell 0.2% as of 4:31 p.m. New York timeFutures on the Nasdaq 100 dropped 0.2%The Stoxx Europe 600 fell 0.5%The MSCI World index was little changedCurrenciesThe Bloomberg Dollar Spot Index fell 0.2%The euro rose 0.3% to $1.2227The British pound rose 0.1% to $1.4206The Japanese yen rose 0.3% to 109.55 per dollarBondsGermany’s 10-year yield was little changed at -0.19%Britain’s 10-year yield was little changed at 0.79%CommoditiesWest Texas Intermediate crude rose 0.9% to $67 a barrelGold futures rose 0.2% to $1,910 an ounceMore stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.

  • Turkey’s Economy Outperformed Most Peers -- But at a Cost

    (Bloomberg) -- Sign up for the New Economy Daily newsletter, follow us @economics and subscribe to our podcast.Turkey’s economy has grown at a strong pace this year, outperforming most large economies as it recovers from the pandemic -- an expansion that’s come at the expense of price and currency stability.Turkey grew faster than all Group of 20 nations except for China in the first quarter after nearly stalling a year ago when Covid-19 struck. It’s been bolstered by robust consumption on the back of last year’s government-led push to cut interest rates and boost lending.Gross domestic product rose 7% from a year earlier and 1.7% from the fourth quarter. The median of 22 forecasts in a Bloomberg survey was for 6.3% growth compared to the same period in 2020.There is an “exchange rate illusion” in Turkey’s economic growth data, said Enver Erkan, chief economist at Istanbul-based Tera Yatirim. GDP per capita in U.S. dollar terms has dropped nearly 40% since 2013 to around $7,700 last year, making Turkey’s economic model unsustainable as the growth is mainly driven by government spending and efforts to boost lending, he said.The government encouraged banks to ramp up loans to help businesses and consumers ride out last year’s Covid-19 crisis. The credit boom was coupled with a front-loaded easing cycle. That growth push weakened the currency by 20% last year and kept headline inflation in double digits.The currency lost a further 10% against the dollar in the first quarter, particularly after President Recep Tayyip Erdogan fired the central bank’s hawkish governor Naci Agbal in March. The decision to fire Agbal, who had sought to restore the central bank’s credibility, set off a swift reversal of investor enthusiasm, sending Turkish markets into a nosedive.Below are some more highlights from the GDP report released by the state statistics institute in Ankara on Monday:Household consumption -- estimated to account for about two-thirds of the economy -- continues to be one of the main drivers of growth. It jumped 7.4% from a year earlier.The biggest contribution to growth came from manufacturing sector, which rose 12.2% in the first quarter on an annual basis.The size of the economy grew to $728.5 billion in the first quarter from $717 billion in current prices last year.Exports rose 3.3% on an annual basis. Imports dropped 1.1%.Gross fixed capital formation, a measure of investment by businesses, rose an annual 11.4%. Government spending rose 1.3% after a 6.6% jump in the previous quarter.The economy grew by 1.7% in the last quarter from the previous three months when adjusted for seasonality and the number of working days. Overall output rose 1.8% in 2020.The data expose the challenge facing new central bank Governor Sahap Kavcioglu as he looks to restore price stability without cooling the economy ahead of the general elections in 2023.Kavcioglu pledged policy continuity after his appointment and kept the benchmark interest rate unchanged at 19% for a second meeting this month, saying the pace of price gains had peaked in April. Consumer inflation quickened for a seventh month to 17.14% in April.There may be a limited drop in the pace of growth in the second quarter, according to Istanbul-based economist Haluk Burumcekci. “Uncertainties regarding the monetary policy makes it difficult to assess the upside risks on our growth expectation of 5.5% for 2021,” he said.(Updates with chart and more details in the bullets)More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.

  • Exclusive-G7 to back minimum global corporate tax and support economy - draft

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  • KKR and CD&R Close to $4.7 Billion Deal to Buy Out Cloudera

    (Bloomberg) -- KKR & Co. and Clayton Dubilier & Rice LLC are closing in on a deal to take Cloudera Inc. private at a valuation of about $4.7 billion, a person familiar with the matter said.The private equity firms could finalize a deal Tuesday to buy out the software firm at $16 a share, or about a 24% premium to its previous close, the person said, asking not to be identified discussing an internal deal. Representatives for Cloudera and KKR didn’t respond to emailed requests for comment after normal business hours. A CD&R representative declined to comment.Cloudera -- which counts activist investor Carl Icahn as its largest shareholder -- has explored a potential sale since mid-2020 after receiving takeover interest, Bloomberg News has reported. If sold, it would mark another chapter for a former high-flyer that’s struggled to make money on products related to open-source software, which is usually free to use. Major technology companies including Amazon.com Inc., Alphabet Inc. and Microsoft Corp. have also pushed into some of the cloud software products that are Cloudera’s specialty.Dow Jones first reported the deal on Monday without details on the offer price.(Updates with comment from second paragraph)More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.

  • Kenya Lawmakers Balk as Debt Servicing Costs Jump to $11 Billion

    (Bloomberg) -- Kenya may be heading toward a default unless the government of President Uhuru Kenyatta revamps its debt, lawmakers said in a report.The East African nation’s debt servicing costs are poised to surge to a record 1.17 trillion shillings ($11 billion) in the year starting July 1, parliamentary budget office said in a report. That exceeds the administration’s 660 billion shillings proposed spending on development projects.The increase in debt repayments “indicates a growing level of fiscal inflexibility and therefore increased exposure to fiscal risks or debt default, in absence of debt restructuring,” according to the report by the agency, which advises lawmakers on budget policy. It implies “that borrowing for development expenditure financing might no longer be a viable fiscal principle.”Calls to revamp the nation’s rising debt are growing louder even as it plans to borrow as much as $7.3 billion in the Eurobond market over the next two years, prompting the International Monetary Fund to say that the country may be at the risk of debt distress. Meanwhile, Kenya’s lawmakers want to narrow the government’s fiscal deficit to 7.5% of gross domestic product in the next fiscal year, from 8.7%, according to the report.By the year through 2024, Kenya’s debt servicing expenses will have more than doubled from 2020, with spending on development infrastructure remaining little changed. Borrowing is restricted to funding for development projects, according to Kenya’s public finance management rules.The government should put in place mechanisms to substitute borrowings with alternative financing such as public private partnerships, particularly for large infrastructure expenditure, lawmakers said.Kenya is seeking an extension to a six-month debt service holiday that ends in June, central bank Governor Patrick Njoroge said last week Thursday.More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.

  • Exclusive-Eni, BP in talks over oil and gas assets in Algeria

    BP and Eni are in talks over the future of their oil and gas assets in Algeria as the two groups increase efforts to refocus their businesses to tackle falling margins, rising debt and climate pressures, three sources said. Europe's top energy companies are cutting back their oil and gas portfolios to keep only the assets most likely to be profitable and redeploy capital for a transition to clean energy as uncertainty mounts over future demand for fossil fuel. The sources, asking not to be named, said BP and Eni are in early-stage talks for the Italian group to take over BP's assets in Algeria.