Many retailers have been caught up in the epic short squeeze roiling markets at the moment, and food stocks are no exception.
- Yahoo Finance
Berkshire Hathaway vice chairman Charlie Munger unloaded on bitcoin, showing that his views haven't changed since Warren Buffett and Munger last opined on the digital asset.
Global airline industry body IATA warned that the outlook for airlines had weakened since its December forecasts, and due to tightening travel restrictions it now expected the sector to still be bleeding cash by the fourth quarter of this year. IATA raised its forecast for total airline cash burn for 2021 to between $75 billion and $95 billion, up from the $48 billion it had forecast in December. This summer is make-or-break for many airlines and holiday companies which are struggling to survive with close to a year of almost no revenue due to pandemic restrictions.
Travel firms serving the UK and overseas report a huge jump in bookings and website traffic since Monday.
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Lordstown Motors gets ready to bring its electric pickup truck called the Endurance to market. Yahoo Finance chats with Lordstown Motors founder and CEO Steve Burns.
(Bloomberg) -- New Zealand’s government will require the central bank to take account of rampant house prices when it sets interest rates, a change that may restrict its ability to run loose monetary policy.The Reserve Bank’s remit will be amended so that the bank considers “the impact on housing when making monetary and financial policy decisions,” Finance Minister Grant Robertson said in a statement Thursday in Wellington. The New Zealand dollar jumped to its highest since 2017 as investors ramped up bets on higher interest rates.The government is under political pressure to cool an overheating housing market, which has been fueled by record-low borrowing costs after the RBNZ responded to the coronavirus pandemic by slashing its cash rate and embarking on quantitative easing. Governor Adrian Orr pushed back against Robertson’s proposal when it was first made last year, saying that forcing the bank to consider house prices when setting rates could lead to below-target employment and inflation.“The more objectives you’ve got, the more complicated it can be to meet all those objectives,” said Nick Tuffley, chief economist at ASB Bank in Auckland. “Inflation and employment is what they will focus on, but they have to think harder about how their decisions impact on the housing market.”The kiwi dollar jumped about a third of a U.S. cent to 74.55 cents, its highest since August 2017. Bond yields and swap rates also rose on news of the changed remit, which comes into force on March 1. Investors are now pricing a 30% chance of a rate hike in November, even though the RBNZ yesterday sought to damp bets on tighter policy and said it could cut rates further if needed.Robertson ‘In Charge’“The market is saying no more rate cuts, so push the kiwi higher,” said Jason Wong, currency strategist at Bank of New Zealand in Wellington. “The RBNZ has shown its independence by saying ‘we don’t like this measure,’ but they are going to have to live with it because the finance minister’s in charge.”Robertson said today that the RBNZ’s objectives and mandate remain the same, which is to maintain price stability, support full employment and promote a sound and stable financial system.But a change to the Monetary Policy Committee’s remit will force it to “assess the effect of its monetary policy decisions on the government’s policy.” A clause has been added stating that the government’s policy “is to support more sustainable house prices, including by dampening investor demand for existing housing stock, which would improve affordability for first-home buyers.”“The committee retains autonomy over whether and how its decisions take account of potential housing consequences, but it will need to explain regularly how it has sought to assess the impacts on housing outcomes,” Robertson said.Robertson also issued a direction under the Reserve Bank Act requiring the bank to have regard to government policy on housing in relation to its financial policy functions.In a statement Thursday, the RBNZ said it “welcomes the direction it has received today from the Minister of Finance.” It said changes to financial stability policy are “in tune with our recent advice.”The bank acknowledged the change to its monetary policy remit but noted its targets “remain unchanged.”“The adjustments increase the focus on understanding and communicating the impact of the bank’s decisions on house price sustainability,” Orr said in the statement. “We have a long-standing commitment to transparency about our policy actions and approaches, and this will continue.”Soaring house prices have raised concerns that first-time buyers are being locked out of the market. Much of the surge has been attributed to investors taking advantage of low interest rates.The RBNZ, which predicts prices will rise 22% in the year through June, is reinstating mortgage lending restrictions and will tighten them further for investors from May 1.Orr in December recommended that the bank be required to address the issue of rapid house-price inflation via financial policy, and requested it be allowed to add debt-to-income ratios to its macro-prudential toolkit.Robertson said today he has asked the RBNZ to provide advice on interest-only mortgages and debt-to-income ratios. He would want the latter to apply only to investors, he said.“Today’s announcement is just the first step as the government considers broader advice about how to cool the housing market,” Robertson said. “We know the rapid increases we have seen in recent months are not sustainable, which has meant many first-home buyers are struggling to access the market. We’ll be making further announcements in the coming weeks on other policy responses.”(Updates with chart)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.
Johnson & Johnson's one-dose COVID-19 vaccine appeared safe and effective in trials, the U.S. Food and Drug Administration said Wednesday, paving the way for its approval for emergency use as soon as this week. The vaccine was 66% effective at preventing moderate to severe COVID-19 in a 44,000 person global trial, the FDA said in documents ahead of a Friday meeting of independent experts who will advise the agency on emergency authorization. New data provided by J&J to the FDA showed the vaccine was 64% effective at stopping moderate to severe cases of COVID-19 after 28 days in thousands of trial participants in South Africa where a worrying new variant has swept across the country.
- FX Empire
Price of Gold Fundamental Daily Forecast – A Dovish Powell Could Sink the Dollar, Spiking Gold Prices Higher
A stock market plunge could drive investors into the safe-haven U.S. Dollar that could lead to renewed pressure on gold prices.
President Joe Biden said on Wednesday he would seek $37 billion in funding for legislation to supercharge chip manufacturing in the United States as a shortfall of semiconductors has forced U.S. automakers and other manufacturers to cut production. Biden also signed an executive order on Wednesday aimed at addressing the global semiconductor chip shortage that has alarmed the White House and members of Congress, administration officials said.
(Bloomberg) -- The unprecedented $9 trillion rescue mission by central banks to haul the world economy from its coronavirus recession is being tested as rising bond yields and inflation bets threaten their ability to keep borrowing costs down.While Federal Reserve Chairman Jerome Powell this week called the recent run-up in bond yields “a statement of confidence” in the economic outlook, other counterparts are sounding less sanguine as their recoveries lag that of the U.S..European Central Bank President Christine Lagarde said Monday that she and colleagues are “closely monitoring” government debt yields. The Bank of Korea warned it’ll intervene in the market if borrowing costs jump, Australia’s central bank has been forced to resume buying bonds to enforce its yield target and the Reserve Bank of New Zealand Wednesday promised a prolonged period of stimulus even as the economic outlook there brightens.The bond market isn’t listening, tumbling again on Wednesday. U.S. 30-year Treasury yields surged as much as 11 basis points to 2.29%, their highest level since before the coronavirus-induced meltdown in March. The rate on similar-dated U.K. bonds also soared, with Germany’s following suit.Because government borrowing costs are used as the benchmark for pricing loans to businesses and consumers, any increase in yields trickles through to the real economy. That counters the campaign by central banks to drive recoveries with cheap money, potentially forcing them to deliver even more stimulus at some point.“It’s the U.S. bond market pulling up global bond yields, and in some cases in ways that are moving faster than they’d like,” said Ethan Harris, Bank of America Corp.’s head of global economic research. “If you’re in countries outside the U.S., you’re looking at this as kind of an unwelcome import.”In the U.S., 10-year Treasury yields have risen more than 50 basis points since the end of December as its economy shows signs of improving, vaccinations roll out and lawmakers ready even more fiscal stimulus. Economists at JPMorgan Chase & Co. now see growth of 6.2% this year, up from 4.2% at the start of the year.More broadly, the yield on the Bloomberg Barclays Global Aggregate Index, which includes investment-grade sovereign and corporate debt, has risen 20 basis points this year to above 1%. That follows a 62-basis-point decline in 2020.The jump in U.S. yields threatens to drag up other markets, challenging the policies of the ECB, Bank of Japan and Bank of England, Krishna Guha and Ernie Tedeschi of Evercore ISI told clients in a report this week. That’s a worry for those policy makers whose focus remains more on stoking growth than containing any nascent inflation pressures.The ECB could be in a particularly uncomfortable spot as it has pledged to keep financing conditions “favorable” through the crisis and is already facing a weaker recovery than counterparts.Yields on 10-year German government bonds have climbed above -0.3% this month from -0.6% in November while equivalent French yields are now barely below zero, compared with -0.3% three months ago.One option for the ECB is to accelerate bond buying via its pandemic emergency purchase program. Another is to strengthen its message on how long it intends to keep interest rates low.“The ECB has a number of potentially powerful options in its toolbox to anchor bond yields,” said Nick Kounis, head of financial markets research at ABN Amro Holding NV.In Japan, where investors are nervously awaiting the outcome of the central bank’s policy review, yields for 10-year bonds rose to 0.12%, the highest level since Nov. 2018. That’s still within officials’ comfort range of 20 basis points on either side of its target, but some market participants forecast the range to be expanded with the BOJ announcement on March 19.Higher Treasury yields are also a threat for emerging economies, where historically they sparked currency volatility and choppy capital flows, especially for countries that rely on external funding. That then slows expansions, as happened in 2013 when concern the Fed was pulling back triggered a ripple effect.Bloomberg Economics predicts the central banks of Argentina, Brazil and Nigeria will all turn more hawkish this year.“The Fed remains in a more comfortable position compared to many of its peers in emerging markets,” said Frederic Neumann, co-head of Asian economics research at HSBC Holdings Plc. “Inflation in the U.S. is far better anchored than in small, open economies.”Some economists say the yield moves and the bets on an inflation revival may mark something of a turning point for the global economy.“Central banks are now throwing the kitchen sink at beating deflation and disinflation just as they threw it at high inflation in the 1980s and early 1990s,” said Shane Oliver, chief economist at AMP Capital Investors Ltd. in Sydney. “There is a strong case to be made that the disinflation seen since the 1970s is coming to an end and that the long-term trend in inflation is at or close to bottoming.”Still, others point out that disinflation forces will linger, especially as labor markets remain weaker than before the pandemic and full economic recoveries hinge on successfully controlling the virus and delivering vaccines.“I am still not so sure whether the recovery-related steepening of the curve will be long lasting,” said Alicia Garcia Herrero, Asia Pacific chief economist with Natixis SA. “There are a number of risks that might bring us back to a less upbeat scenario.”(Updates with Wednesday’s market moves in fourth 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.
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Charlie Munger, vice chairman of Berkshire Hathaway and long-time business partner of Warren Buffett, issued a strong condemnation of the businesses he said enabled the recent frenzy of speculative trading by retail investors.
The Irish High Court this week is hearing arguments concerning the repudiation of some of Norwegian’s liabilities including aircraft leases. Airbus declined to comment. Boeing was not immediately available for comment.
"Bytedance plans to make Singapore its epicenter for the rest of Asia-Pacific in its quest to find a neutral ground amid the ongoing trade tensions between the US and China."
- Associated Press
All the groceries spoiled and the water was out for days. Then Melissa Rogers, a believer in the Texas gospel that government should know its place, woke up to a $6,000 energy bill before the snow and ice even melted. Now, the emerging response to a winter catastrophe that caused one of the worst power outages in U.S. history is not the usual one in Texas: demands for more regulation.
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Stock market news live updates: Stock futures open flat; GameStop, AMC shares surge
Even after a price plunge of more than $10,000 over the past couple days, analysts see further selling ahead.
AstraZeneca Plc has told the European Union it expects to deliver less than half the COVID-19 vaccines it was contracted to supply in the second quarter, an EU official told Reuters on Tuesday. Contacted by Reuters, AstraZeneca did not deny what the official said, but a statement late in the day said the company was striving to increase productivity to deliver the promised 180 million doses. The expected shortfall, which has not previously been reported, follows a big reduction in supplies in the first quarter and could hit the EU's ability to meet its target of vaccinating 70% of adults by summer.
Bharti Airtel Ltd said on Tuesday it will work with U.S. chipmaker Qualcomm for 5G services in India, as telecom firms in the world's second-largest wireless market gear up to usher in the latest generation of wireless networks. Airtel, placed second to Reliance Industries-owned Jio by subscribers, said in a statement to stock exchanges that it will use Qualcomm's Radio Access Network platforms, which runs services on the cloud, to roll out 5G networks in the country.
(Bloomberg) -- Huawei Technologies Co. took the wraps off a high-end foldable smartphone to try and stake out a place in the fast-expanding category, revealing that revenue and profit barely grew in 2020 at the height of Trump-era sanctions.China’s largest technology company is trying to keep its shrinking mobile gadgets business alive despite dwindling expectations that Washington will roll back its curbs anytime soon. On Monday, it introduced the 17,999-yuan ($2,800) Mate X2 that unfolds into an 8-inch (203mm) screen powered by Huawei’s own 5G Kirin 9000 chip.Once the world’s biggest smartphone maker, Huawei was forced to dig into a dwindling store of chips after Washington cut it off from American technology and key suppliers like Taiwan Semiconductor Manufacturing Co. Yet billionaire founder Ren Zhengfei has vowed to keep its smartphone business, dismissing reports of a potential sale. The company is now focusing on serving enterprise clients to offset the lost business.“We managed marginal growth both in sales and profit,” Ken Hu, the company’s current rotating chairman, told the Mobile World Congress in Shanghai Tuesday. “We’ll work with partners on how to apply Huawei products in their businesses. Through these partnerships, we are not only hoping Huawei can develop a number of solutions from zero, but also duplicating these solutions in scale.”Read more: Huawei’s Quarterly Revenue Growth Slows, Hit by U.S. SanctionsHuawei has been running phone production at close to minimum capacity to preserve its existing cache of components and prolong the life-cycle of its devices, spurring product shortages at retailers across the country, according to people familiar with the matter.The Mate X2 will go on sale in China on Feb. 25, priced at 18,999 yuan for a beefier version with 512 gigabytes of storage. It’ll run a version of Google’s Android tailored for China, which lacks the U.S. company’s core apps and commercial features, but can be updated to Huawei’s own Harmony operating system in April.“We have prepared enough capacity for Mate X2, the capacity is growing on daily basis,” Richard Yu, chief executive of Huawei’s consumer electronics unit, said at a launch event in Shanghai on Monday.Yu said Monday that more of the company’s top-tier phones will be powered by its in-house software rather than Android in future.Read more: Huawei’s Founder Vows To Keep Making Smartphones in Biden EraHuawei found itself thrust into the heart of U.S.-Chinese tensions in 2019 after the White House labeled it a national security threat and later imposed a series of trading restrictions. Those curbs curtailed its growth and forced the company to sell off its low-end Honor devices arm last year.Ren has urged the new U.S. administration to adopt an “open policy” toward Huawei, which in turn would benefit its American suppliers. But Biden’s nominee for Commerce secretary, Gina Raimondo, said during her Senate confirmation process she knew of “no reason” why Trump-era curbs shouldn’t continue.Huawei’s smartphone shipments dived 42% in the last three months of 2020 while its biggest competitors Samsung Electronics Co., Apple Inc. and Xiaomi Corp. all gained market share, according to researcher IDC.Read more: Samsung’s $1,999 Fold 2 Rectifies Major Foldable Phone FoiblesFor 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 Federal Aviation Administration (FAA) said on Tuesday it was ordering immediate inspections of Boeing 777 planes with Pratt & Whitney PW4000 engines before further flights after an engine failed on a United flight on Saturday. The engines are used on 128 older versions of the plane accounting for less than 10% of the more than 1,600 777s delivered and only a handful of airlines in the United States, South Korea and Japan were operating them recently.
U.S. consumer confidence increased in February, with households slightly more upbeat about the labor market amid declining new COVID-19 infections and expectations for additional money from the government to help the economy's recovery from the pandemic. The survey from the Conference Board on Tuesday also showed consumers warming up to overseas vacations, though fewer intended to purchase homes, automobiles and other big-ticket items over the next six months. Consumers anticipated higher inflation as well.