Image source: The Motley Fool. Viper Energy Partners LP (NASDAQ: VNOM)Q4 2020 Earnings CallFeb 23, 2021, 11:00 a.m. ETContents: Prepared Remarks Questions and Answers Call Participants Prepared Remarks: OperatorLadies and gentlemen, thank you for standing by, and welcome to the Viper Energy Partners' Fourth Quarter 2020 Earnings Call.
State-owned Saudi Arabian Airlines (Saudia) plans to order 70 airliners from Airbus and Boeing, Saudi news outlet Maaal reported on Monday, citing unidentified sources. Saudia is in talks with local banks to raise 11.5 billion riyals ($3.07 billion) to partly finance an order for Airbus A321 narrow-bodied jets and Boeing 777 and 787 Dreamliner wide-bodies, Maaal said. The report did not breakdown how many aircraft of each type Saudia was planning to purchase.
(Bloomberg) -- Israel accused Iran of attacking one of its cargo ships in the Gulf of Oman last week, as tensions mount over the U.S.’s desire to rejoin a nuclear deal with Tehran.“It was indeed an act by Iran, that’s clear,” Israeli Prime Minister Benjamin Netanyahu said Monday in an interview with Kan radio, a local station. Iran “is Israel’s greatest enemy and we are striking it across the region.”The Israeli-owned car carrier, called the Helios Ray, was struck by an explosion while sailing 100 kilometers (62 miles) off the coast of Oman either on Feb. 25 or the early hours of Feb. 26. None of its crew was hurt and the vessel is now docked in Dubai for repairs.“We categorically reject” Israel’s accusation, a spokesman for the Iranian foreign ministry, Saeed Khatibzadeh, said in a press conference on Monday in Tehran.Friction between Israel and Iran has been high at a time U.S. President Joe Biden is exploring rejoining a 2015 accord designed to reduce Tehran’s nuclear activities. Netanyahu opposes Washington returning to the pact, saying it would pave the way for Iran to build a nuclear weapon. Biden’s predecessor, Donald Trump, withdrew the U.S. from the accord in 2018 and tightened sanctions on Iran.Iran has accused Israel of several attacks and killings in the past year. It said Israel sabotaged one of its nuclear facilities in July and assassinated a top Iranian nuclear scientist in November.Israeli media reported that the country launched missile strikes on Iranian targets in Syria over the weekend in response to the assault on the ship. Israel’s military did not comment.The Helios Ray, owned by Tel Aviv-based Ray Shipping Ltd., had traversed the Strait of Hormuz and was on its way to Singapore when the explosion occurred, according to tracking data compiled by Bloomberg and information from U.K. Maritime Trade Operations, which serves as a link between the Royal Navy and commercial vessels in high-risk areas. It turned around on Feb. 26.The Associated Press, citing unnamed American officials, said the explosion created two holes on each side of the ship, just above the waterline.Several merchant vessels have been attacked or detained in the Persian Gulf and Gulf of Oman over the last two years, rattling oil and shipping markets. Iran seized a South Korean-flagged oil tanker in the Strait of Hormuz in January and its forces boarded another ship in the Gulf of Oman in August 2020. It also detained the U.K.-flagged Stena Impero for several months in 2019.Four oil vessels were attacked with explosives in May 2019 while at anchorage off Fujairah, a United Arab Emirates port on the Gulf of Oman coast. Two more were sabotaged in the Gulf of Oman in June. Iran was blamed for the incidents but denied involvement.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.
China's rare earths, a group of 17 minerals used in military equipment and consumer electronics, are being undersold due to "vicious competition" domestically and face low resource utilisation, the country's industry minister said on Monday. Prices for some rare earths in China, such as praseodymium-neodymium (PrNd) - used in rare earth magnets - have spiked to multi-year highs this year amid strong demand from the electric vehicle sector. However, prices for other rare earths mined simultaneously, such as cerium and lanthanum, used in catalysts for oil refining, remain depressed due to abundant supply.
Bitcoin's 300% price surge since October has revived China's grey market in cryptocurrency trading, putting regulators on alert over financial risks and capital outflows as volatility spikes. China shut down its local cryptocurrency exchanges in 2017, smothering a speculative market that had accounted for 90% of global bitcoin trading. Onshore investors now trade bitcoin on platforms owned by Chinese exchanges that have relocated overseas, including Huobi and OKEx.
The report added that it was not clear over what period British-based AstraZeneca sold its holding in Moderna. AstraZeneca and Moderna did not immediately respond to requests for comment. AstraZeneca is retaining partnership with Moderna on other disease treatments and could sell its AstraZeneca/Oxford University COVID-19 vaccine on a commercial basis in future if the virus becomes endemic, the report added.
(Bloomberg) -- President Joe Biden is voicing support for organizing efforts at an Amazon.com Inc. warehouse in Alabama, saying workers should be able to make their own choice about whether to join a union, free from pressure and threats from the company.“Let me be really clear: It’s not up to me to decide whether anyone should join a union. But let me be even more clear: It’s not up to an employer to decide that either,” Biden said in a direct-to-camera video produced by the White House and given first to Bloomberg News. “The choice to join a union is up to the workers -- full stop, full stop.”While not an explicit endorsement of the organizing effort, Biden made his preference clear. “There should be no intimidation, no coercion, no threats, no anti-union propaganda,” he said in the video. “No supervisor should confront employees about their union preferences. You know, every worker should have a free and fair choice to join a union. The law guarantees that choice.”The effort at the facility in Bessemer, Alabama, is the largest organizing push in Amazon’s nearly three decades. The company has fought off previous unionization drives and is working against this one, though its efforts to delay a vote have so far failed. Mail-in voting for 6,000 workers began in mid-February and will continue until the end of March.Biden’s allies in labor had been urging him to weigh in, arguing it wasn’t enough for him to speak only generally about his support for organizing and not to use the platform of the presidency to help the organizing push.“It’s important for the administration to demonstrate during this campaign its support for unionization,” Stuart Appelbaum, president of the group that hopes to represent the Alabama workers, the Retail, Wholesale and Department Store Union, told the Huffington Post last week. Appelbaum is also a longtime member of the Democratic National Committee.“As President Biden points out, the best way for working people to protect themselves and their families is by organizing into unions,” Appelbaum said in a statement after the Biden video was published. “And that is why so many working women and men are fighting for a union at the Amazon facility in Bessemer, Alabama.”Three dozen left-leaning groups, including the American Economic Liberties Project, the Working Families Party and the UNITE HERE union, wrote to Biden on Thursday urging that he publicly back the unionization effort.Noting that he campaigned on a pledge to be “the most pro-union president you’ve ever seen,” the groups told Biden that “this is a once-in-a-generation opportunity to make that pledge a reality. We urge you to lend all your support to the Amazon workers in Bessemer. They deserve nothing less.”Former Obama White House Press Secretary Jay Carney, whose first job in that administration was as Biden’s communications director, is now senior vice president of global corporate affairs at Amazon.The company didn’t immediately respond to a request for comment.(Adds additional comment from Stuart Appelbaum in seventh 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.
Hyatt Hotels Corp called symbols of hate "abhorrent" on Sunday after the design of a stage at the Conservative Political Action Conference at one of its hotels drew comparisons to a Norse rune used by Nazis during World War Two. High-profile Republicans including former President Donald Trump were attending the four-day event in Orlando, Florida, as conflict rages between Trump allies and establishment politicians trying to distance the party from him. A photo of the CPAC stage went viral on social media on Saturday, with thousands of Twitter users sharing posts comparing its distinctive design to an othala rune, one of many ancient European symbols that Nazis adopted to "reconstruct a mythic 'Aryan' past," according to the Anti-Defamation League.
Some analysts worry that rising bond yields might prompt the Federal Reserve to tighten historically loose monetary policy, prompting a correction in assets perceived as risky.
Warren Buffett makes mistakes too. The 90-year-old billionaire on Saturday admitted he "paid too much" when his Berkshire Hathaway Inc spent $32.1 billion in 2016 to buy aircraft and industrial parts maker Precision Castparts Corp, its largest acquisition. Berkshire wrote off $9.8 billion of Precision's value last August, as the coronavirus pandemic sapped demand for air travel and the Portland, Oregon-based unit's products.
Warren Buffett's enthusiasm for the future of America and his company Berkshire Hathaway Inc has not been dimmed by the coronavirus pandemic. Buffett used his annual letter to investors to assure he and his successors would be careful stewards of their money at Berkshire, where "the passage of time" and "an inner calm" would help serve them well. Despite the disappearance last year of more than 31,000 jobs from Berkshire's workforce, Buffett retained his trademark optimism, buying back a record $24.7 billion of its stock in 2020 in a sign he considers it undervalued.
Reserve Bank of India governor Shaktikanta Das has said the central bank has "certain major concerns about cryptocurrency" and its impact on financial stability.
- Yahoo Finance
Buffett, 90, isn’t slowing down much and seems poised to lead Berkshire Hathaway into the post-pandemic world.
(Bloomberg) -- The Philippine peso has been under siege from rising Treasury yields and buoyant crude prices. But technicals may offer some support.The peso slumped to its lowest level in six months last week following an extension of coronavirus-led curbs in the nation and delays in vaccine rollouts. The 10-year Treasury yield’s surge to 1.6% added to the bearish sentiment.Still, losses have been limited to near the dollar-peso’s 200-day moving average so far, spurring hopes that the barrier may hold at least in the near term. The pair’s relative strength index, a momentum indicator, is in the overbought territory, providing further support to the Philippine currency.Still, expectations that U.S. yields will rise further is keeping sentiment cautious toward the peso. Especially after the rout in emerging market assets on Friday brought back memories of the 2013 taper tantrum among investors.“How U.S. yields evolve from here and the broad USD picture will be the key driver of USD/PHP,” said Irene Cheung, a currency strategist at Australia & New Zealand Banking Group Ltd. She sees the peso at 48.30 per dollar at the end of the quarter.The peso is among Southeast Asia’s worst performing currencies this year. It’s declined 1.1% in February to 48.59 as global funds sold $171 million of Philippine stocks during this period.Inflation FocusTechnical factors supporting the peso are likely to come into focus once again on Friday, when February inflation data is due. If price pressures quickened, this could erode the nation’s real yields and weigh on the currency.Comments from Bangko Sentral ng Pilipinas Governor Benjamin Diokno that the rise in the nation’s consumer prices is temporary will also be put to the test. A Bloomberg survey forecasts inflation quickened to 4.8% in February, which would be the fastest since December 2018.“Rising inflation has pushed Philippines’ real rates into the negative territory,” said Divya Devesh, head of Asean and South-Asia currency research at Standard Chartered Bank in Singapore. “Depressed real rates and elevated real effective exchange rate is a negative for the PHP,” he said, adding that the peso may fall toward 49.50 per dollar this year.Below are the key Asian economic data and events due this week:Tuesday, March 2: RBA policy decision, Australia building approvals and 4Q BoP current account balance, net exports of GDP, New Zealand 4Q terms of trade, Japan jobless rate and 4Q capita spending, South Korea industrial productionWednesday, March 3: Australia 4Q GDP, New Zealand building permits, China Caixin services PMIThursday, March 4: Australia retail sales and trade balance, RBNZ Governor. Orr speaks, South Korea CPI and 4Q GDP, BNM policy decision, Thailand consumer confidenceFriday, March 5: New Zealand 4Q volume of all buildings, Philippine CPI, Singapore retail sales, Thailand CPI(Corrects analyst forecast for peso in ninth paragraph and clarifies peso move in sixth paragraph was for February.)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) -- As investors fled almost every fixed-income asset from the safest government bonds to the highest-yielding securities last week, one market stood out as a haven.Funds poured $671 million into exchange-traded funds tracking yuan bonds last week, taking inflows so far this year to $2.2 billion, data compiled by Bloomberg show. In contrast, they offloaded almost $600 million of emerging-market notes last week.China’s bonds have largely escaped the tumult in global debt markets, with yields on the benchmark holding firm on Thursday while that on Treasuries soared more than 20 basis points. Chinese sovereign notes were the third-best performer globally in February, according to data from indexes compiled by Bloomberg and Barclays Plc.“China bonds are likely to be a safe haven now -- stable policy and growth make them less volatile compared to global peers, while yields are also more attractive,” said Xing Zhaopeng, a senior China strategist at Australia & New Zealand Banking Group Ltd. in Shanghai. “The notes’ relative performance this year will be better than bonds sold by other major economies.”With strategists warning of more volatility in the days ahead, investors may find safety in the more-insulated Chinese debt market where fears of sudden monetary tightening are less prevalent. The authorities’ successful containment of the coronavirus outbreak has also allowed the economy to rebound more quickly.China’s benchmark 10-year yield fell two basis points to 3.26% Monday while 10-year bond futures jumped 0.3%, the most since December. The spread between the 10-year Chinese yield and its U.S. counterpart was at 1.82 percentage points on Monday. This compares with a five-year average of 1.25 percentage points.EPFR Global data showed China bond funds absorbed record flows in the week ended Feb. 24, with investments almost breaching the $2 billion mark.Other large Asian economies such as Indonesia and India do offer higher returns, but they remain vulnerable at times of stress, with major ratings agencies assessing China’s debt as four-to-five levels more sound.And while other countries are still in the process of selling near-record amount of debt to fund stimulus, China’s faster-economic recovery means there could be less supply. Economists expect the government to lower its fiscal deficit target, while cutting its quota for special local bonds.The iShares China CNY Bond UCITS ETF, which tracks the Bloomberg Barclays Index of Chinese government and policy bank debt, saw the largest inflows among all similar contracts this year, data compiled by Bloomberg showed. The fund gained 8.8% over the past year, beating most global peers.The Bloomberg Barclays China Aggregate Index, which tracks the performance of the yuan-denominated debt, is up 1.5% year-to-date, while the global aggregate index is down 2.6%.Overseas investors are also buying more Chinese notes directly. In January, they purchased $27 billion of bonds in the interbank market, the most according to data going back to 2014. Sovereign securities accounted for $19 billion of the total inflows.(Adds China bond yield and futures in sixth paragraph, EPFR Global data in seventh paragraph and background in eighth and ninth paragraphs)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) -- In the showdown between traders and central bankers over rising bond yields, the Bank of England is aligned more with the relaxed views of the U.S. Federal Reserve than peers in Asia and Europe that are trying to rein in markets.Addressing the topic for the first time late last week, BOE policy makers echoed Fed officials in reading a surge in borrowing costs as optimism about a rapid recovery. They brushed aside concerns about a return to the dysfunction in markets that dominated the early days of the coronavirus pandemic.Their remarks suggest that the U.K. central bank has no immediate plans to counter the sell-off that quadrupled yields on 10-year government bonds since the start of the year. While borrowing costs remain historically low, the increase could embolden Chancellor of the Exchequer Rishi Sunak to talk more about how he will repair public finances when he delivers his annual budget on Wednesday.“It will probably reinforce Sunak’s hawkish instincts,” said Jacob Nell, chief U.K. economist at Morgan Stanley and a former Treasury official. “The motivation for getting on a sustainable footing is you’re worried the bond market will push up yields and constrain you.”A rapid effort to vaccinate the population against Covid-19 in the U.S. and U.K. has boosted optimism about a quick rebound. Those expectations fueled a plunge in bond prices around the world, pushing the yield on 10-year U.S. Treasuries to the highest level in a year.What Bloomberg Economics Says...“The rise in bond yields over the past month, if it sticks, would mean debt interest costs as a share of GDP average 1.2% over the five years rather than 1%. Debt servicing costs have averaged 1.7% since 2000.”-- Dan Hanson, senior economist. Read his full INSIGHT here.U.K. bonds were among the hardest-hit across developed markets, with yields on tenors of more than 10 years now a half percentage point above where they were a year ago before when the pandemic struck. Money-market traders last week priced-out any further interest-rate cuts after months of speculation that policy makers might push borrowing costs into negative territory.The U.K. credit market has also been pummeled given its sizable share of long-dated debt, which tends to be more sensitive to inflation. Sterling high-grade corporate bonds have fallen 3.4% in total return terms this year. By contrast, shorter-dated euro-denominated notes have lost just 0.5%.Those gains in yields have a consequence both for the strength of the recovery and for Sunak’s Treasury, which is taking on record amounts of debt to protect businesses and consumers from the impact of a third national lockdown.The rise in yields adds about 10 billion pounds ($14 billion) to the government’s debt burden, enough to offset revenue from the potential increase in corporate tax under consideration in the budget, said Robert Wood, chief U.K. economist at Bank of America Merrill Lynch.“This doesn’t make the public finances unsustainable. Does it matter? Yes!” he said.But BOE officials appeared largely unperturbed in a series of appearances last week. David Ramsden, a deputy governor, called the move “a corollary of that more positive news on the economy, driven by more positive vaccination news rather than something about a new worry around inflation.”Andy Haldane, the bank’s chief economist and one of the most hawkish members of its rate-setting committee, suggested that central bankers and financial markets could be underestimating the risk of inflation as the economy reopens.Together, those comments shifted speculation away from further bank stimulus and toward the question of when policy makers might pare back the support they have in place now.“Haldane is coming out with very bullish, very positive, and by implication hawkish views on the economic rebound,” said Liz Martins, senior economist at HSBC Holdings Plc.The BOE’s view contrasts with thinking at the European Central Bank and among others across Asia. The Reserve Bank of Australia made $2 billion of unscheduled purchases, while Korea announced buying plans for the next few months. ECB Executive Board member Isabel Schnabel said more stimulus could be added if the surge in yields hurts growth.At the Fed, several officials argued last week that higher yields come with a solid recovery. St. Louis Fed President James Bullard called it “a good sign.”Read More: Fed Views Rising Yields as Bullish Sign Reflecting 2021 OptimismBritain’s main inflation rate is below 1% now. The BOE’s forecast is for it to reach its 2% target by the first quarter of 2022 and to settle just above thereafter. Martins at HSBC said that a 10-year bond yield close to 1% combined with a strong pound would mean “material tightening in financial conditions.”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.
- Yahoo Finance
A new analysis by Yahoo Finance and Economic Innovation Group (EIG) highlights a subset of America for which the coronavirus pandemic has been particularly devastating.
Prices of the precious metals in the emissions-control devices have skyrocketed.
(Bloomberg) -- President Joe Biden’s plans for a new era of tough Wall Street oversight will take center stage this week when two of his top regulator picks face questions from Senate Banking Committee members at a Tuesday hearing.Gary Gensler, whom the White House has tapped to head the Securities and Exchange Commission, and Rohit Chopra, the administration’s choice to lead the Consumer Financial Protection Bureau, are likely to win confirmation, lawmakers and financial executives say. Yet their strong support from progressive Democrats means they’re certain to get pointed questions from Republican senators about their plans to crack down on businesses.The wild rally in GameStop Corp., the explosion of blank-check companies and apps -- like Robinhood Markets’ platform -- that have prompted millions of novice investors to start trading are sure to be focuses. The biggest banks, hedge funds and private equity firms are also likely to be spotlighted, particularly after four years of rule cutting under former President Donald Trump.Gensler, 63, is well known on Wall Street after leading the Commodity Futures Trading Commission during the Obama administration and making a fortune decades earlier at Goldman Sachs Group Inc. Chopra, a 39-year-old Federal Trade Commission member who helped Senator Elizabeth Warren set up the CFPB, would run an agency that Democrats want reinvigorated to protect consumers from abuses involving credit cards, mortgages and high-interest loans. Republicans would prefer it remain in the slumber that defined the bureau in the Trump era.“There remains a sharp divide between Republicans and Democrats on the role of the CFPB in financial regulation,” said Andrew Olmem, National Economic Council deputy director in the Trump administration who is now a partner at the Mayer Brown law firm. “This is a very important nomination because a new director can significantly shift the direction of the CFPB.”What follows is a breakdown of policy topics that Gensler and Chopra will confront at the hearing -- and, if confirmed, in their jobs:Retail InvestorsThe popularity of commission-free trading -- spearheaded by Robinhood -- has forced regulators to grapple with new questions. Top among them is “gamification” and the proliferation of apps that make investing fun but that critics claim inappropriately hook consumers with nudges and prompts to keep them trading. Determining whether and how to respond is something Gensler will have to grapple with. The issue could also fall under the purview of Chopra and the CFPB.The GameStop frenzy has prompted additional regulatory concerns, including whether unsophisticated investors should be able to so freely engage in risky trading involving options. Bubbles, too, will be on senators’ minds. A number think the SEC should do something about the eye-popping rise of unregulated Bitcoin and other cryptocurrencies. Another potential target is special purpose acquisition companies, or SPACS, which are essentially corporate shells that issue shares before investors even know what their money is being used for.Market StructureThe GameStop saga has made lawmakers wake up to the inner-workings of the stock market. Practices like off-exchange trading and Robinhood and other brokers selling their customers’ orders to so-called market makers like Citadel Securities are getting unprecedented attention on Capitol Hill.Short-selling has also come under fire after it emerged that hedge funds making bearish bets had borrowed more than 100% of GameStop’s outstanding shares. In the face of all that complexity, lawmakers will want to know how Gensler plans to ensure that markets are fair for average Americans.Private EquityAmong the Banking Committee Democrats who have most relished going after private equity are Chairman Sherrod Brown of Ohio and Warren of Massachusetts.Warren introduced the “Stop Wall Street Looting Act” in 2019 calling for new rules for buyout firms, and she made the industry’s treatment of workers a centerpiece of her unsuccessful 2020 presidential campaign. She and Brown have said they will continue to press the issue and have ideas for how Gensler can use the SEC to add new oversight. Giving impetus to their plans is a successful push by private-equity firms during the Trump administration to be included as an investment option in corporate retirement saving plans.EnforcementWall Street could soon find itself subject to lots more investigations launched by the CFPB, which was created to crack down on industry abuses that Democrats argue spurred the 2008 financial crisis. Beyond big banks, the agency under Chopra may also focus on payday lenders, student loan providers and on issues tied to the retail trading boom.At the SEC, wielding the agency’s powers to probe and sanction companies is where Gensler can make his biggest impact. A high-profile case against a major bank or hedge fund can ripple through the finance industry, deterring other firms from engaging in similar conduct. During the Trump era, busting Wall Street titans was rarely a priority, something progressives expect Gensler to change quickly.CryptoBitcoin has skyrocketed more than 400% in the past year and Coinbase, a trading platform used by millions American, is on the cusp of one of the biggest initial public offerings in years. Yet, despite all the buzz, cryptocurrencies are still a big question mark for Wall Street. Industry backers say that an impediment to broad adoption is a clear legal framework and a lack of regulatory clarity from the SEC.It’ll probably fall largely on Gensler, who has been teaching about digital tokens at the Massachusetts Institute of Technology, to determine how to regulate the industry. Thorny topics he will likely have to deal with include whether to approve a crypto based exchange-traded fund, and how aggressively to pursue a high-profile lawsuit the SEC filed last year against Ripple Labs Inc. for allegedly misleading investors by selling more than $1 billion of virtual tokens without registering them with the regulator.Climate ChangeProgressives want Biden’s financial regulators to play a crucial role in addressing climate change, including by pressing companies to reveal more about how global warming affects their bottom lines. Democrats also want industry watchdogs to combat inequality by implementing policies that narrow social and economic gaps.At Tuesday’s hearing, such objectives are expected to get lots of attention from Republicans, who argue that securities laws and corporate disclosures should not be used to push what they consider to be political agendas.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.
- Simply Wall St.
Barratt Developments (LON:BDEV) Has Compensated Shareholders With A Respectable 46% Return On Their Investment
One simple way to benefit from the stock market is to buy an index fund. But if you pick the right individual stocks...
- FX Empire
Investors are selling bonds in anticipation of higher inflation, driving up interest rates while making the U.S. Dollar a more attractive asset.