Major stock indexes suffered their sharpest one-day losses since October amid concerns about Covid-19 vaccine distribution, while traders were also captivated by the frenzied trading in GameStop and other heavily shorted stocks.
- FX Empire
Essentially, Powell appeared to be trying to sound supportive for economic growth while downplaying the potential impact of higher inflation.
Charlie Munger says it’s ‘really stupid to have a culture which encourages [so] much gambling in stocks’
Warren Buffett’s business partner and vice chairman of Berkshire Hathaway, in a Wednesday interview with Yahoo Finance, said the GameStop chaos was encouraged by a gambling mentality on Wall Street.
- USA TODAY
The safety of the little-known Genesis luxury car brand was thrust into the spotlight after Tiger Woods crashed a Genesis GV80 in the L.A. area.
The legislation, which goes to a vote on Friday, could put thousands back in your pocket.
(Bloomberg) -- President Joe Biden’s $1.9 trillion relief plan, plus the prospect of more stimulus later this year, is setting the stage for a shift away from historically low Treasury yields that’s likely to lead to a pickup in volatility in currency markets.U.S. yields have marched higher even before the plan’s arrival -- offering an inkling of what may be in store. BlackRock Inc. sees as much as $2.8 trillion in additional fiscal spending this year and the risk of a further rise in long-term rates. BNY Mellon’s John Velis says a 2% 10-year Treasury yield is possible by April as part of a “tantrum without the taper” of Federal Reserve bond purchases. And volatility in currencies is so low that it’s all but certain to go up, says Harley Bassman, creator of a widely watched gauge of Treasury-market movements.For weeks, the million-dollar question for many investors was whether the $1.9 trillion relief plan would flow mainly through financial markets -- as the first package did -- or actually find its way more into the U.S. economy, where it could trigger changes in spending and investment magnitudes greater than the original size of the stimulus. The wave of reflation bets sweeping through global markets indicates the latter narrative is taking greater hold, suggesting such trades may have room to run.“There’s a lot of stimulus in the pipeline that could add up to $2 trillion to $3 trillion in the end,” Velis, an FX and macro strategist at BNY Mellon, said via phone. That includes another package later this year focused on infrastructure and growth, he said.Yields began to inch their way higher in January after Democrats appeared poised to win control of the Senate, sending the 10-year above the previously elusive level of 1%. The rate, currently around 1.37%, is now at its highest level in almost a year.But the moves higher in yields weren’t accompanied by corresponding reactions in the foreign-exchange market, which has largely remained steady. One gauge, for instance, is the CBOE EuroCurrency Volatility Index, which tracks near-term projected volatility of the euro-dollar exchange rate. It has been on a mostly downward trend in 2021, hovering not far from the lowest levels of the past 12 years.Rising rates are the first place that stronger growth and inflation prospects are reflected and that’s set to be followed by currency volatility. One place to watch is the yen, which has one of the lowest implied FX vols among the major currencies, and has “more room to rise,” Velis says. Meanwhile, he sees the dollar’s next direction as “somewhat ambiguous.”‘Turbocharging the Restart’At BlackRock Inc., the world’s biggest money manager, fresh fiscal spending is seen as “turbocharging the restart” of the pandemic-stricken U.S. economy, with further spending only ensuring more support, according to a note by Jean Boivin, head of the firm’s research arm, and others. They see a key risk of a further increase in long-term yields “as markets grapple with an economic restart that could beat expectations,” which could spark bouts of volatility. They downgraded their view on government bonds, while broadening their pro-risk stance that includes favoring stocks.Implied volatility across a wide range of financial instruments is currently “mis-priced and too low,” said Bassman, inventor of what’s now known as the ICE BofA MOVE Index, Wall Street’s most widely watched benchmark for interest-rate volatility. He says the combination of fiscal and monetary policy being undertaken by the Biden administration and Fed “can create volatility in both directions.” While greater volatility in interest rates should translate into currency volatility, he said, “forecasting is now much more challenging.”“Bond and currency markets have been pricing in an initial stimulus of $1.9 trillion that turns into transient inflation and a burst of demand that subsides,” said Thomas Graff, a portfolio manager who helps oversee $100 billion at Brown Advisory in Baltimore. “What hasn’t been priced in is a lasting, booming economy. If the fiscal thrust is enough to put the U.S. on a higher growth plane, that probably results in a higher dollar and makes currency markets more volatile.”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.
- USA TODAY
CVS, Walgreens, Kroger, Rite Aid and other major pharmacies are offering COVID-19 vaccines at certain locations.
- Motley Fool
On Monday, the House Budget Committee approved President Joe Biden's $1.9 trillion COVID-19 relief bill, moving Americans one step closer to a third round of direct stimulus payments. The president's bill -- known as the American Rescue Plan (ARP) -- will next go to the House Rules Committee. For example, most House Republicans have made it clear that they will fight Biden's $15 minimum wage proposal, meaning it may have to be shelved for the time being.
- Motley Fool
Shares of Churchill Capital IV (NYSE: CCIV) plunged 18.5% on Wednesday, following the special purpose acquisition company's deal with electric vehicle maker Lucid Motors. Churchill's stock price surged to a high of $64.86 on Feb. 18 following reports that the SPAC was in talks to merge with Lucid. Churchill Capital IV's stock price is down sharply since announcing its deal with Lucid Motors.
Bill Gates On Investing In Bitcoin: 'If You Have Less Money Than Elon, You Should Probably Watch Out'
Microsoft Corp. (NASDAQ: MSFT) co-founder Bill Gates is not bullish on Bitcoin (BTC) and is cautioning others to reconsider such investments — unless they have more money than Tesla Inc. (NASDAQ: TSLA) CEO Elon Musk. What Happened: Gates told Bloomberg on Monday that he isn’t worried about Musk’s Bitcoin randomly going up or down. “Elon has tons of money and he is very sophisticated,” the tech entrepreneur said, adding that he is more concerned about people getting into such manias who don’t have as much money to spare. “If you have less money than Elon, you should probably watch out,” Gates told Bloomberg. See also: How To Buy Microsoft Stock The philanthropist explained that he is not keen on Bitcoin, primarily because of the amount of electricity it consumes and the promotion of irreversible anonymous transactions. and that he is more enthusiastic about digital currencies. “Digital money is a good thing,” Gates said, claiming the difference lies in terms of being regulatory-compliant and still giving the convenience and low-cost associated with cryptocurrency transactions. Why It Matters: Gates told CNBC last week that he was “neutral” on Bitcoin and acknowledged the cryptocurrency’s role in bringing down transaction costs. Gates also showered praises on Musk in a New York Times podcast, dubbing the entrepreneur's work with Tesla "one of the greatest contributions to climate change anyone’s ever made." Musk has been increasingly tweeting about cryptocurrencies this year, in particular, the joke cryptocurrency Dogecoin (DOGE). The Tesla CEO’s tweets often move markets and several people, including those in the cryptocurrency community, have expressed concern over such statements from the world’s second-richest person. The electric vehicle maker also announced a $1.5 billion investment in Bitcoin this month, but Musk said the move wasn’t "directly reflective of my opinion.” Price Action: Bitcoin traded 14.3% lower at $47.906.71 at press time on Tuesday. Tesla shares are down 3.8% in the pre-market session at $687. Read Next: Elon Musk Lost B In A Single Day And The Cause Could Be One Of His Own Tweets Photo courtesy of World Economic Forum via Wikimedia See more from BenzingaClick here for options trades from BenzingaWhy BinanceCoin, PancakeSwap Cryptos Are Skyrocketing TodayEthereum, Other Altcoins Outperform Bitcoin, As Apex Crypto Finds Footing Above ,000© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Here's what still has to happen, following the big vote scheduled for Friday.
ViacomCBS Inc said on Wednesday it expects to reach as many as 75 million global streaming subscribers by the end of 2024, with global streaming revenue to rise to more than $7 billion by that time. "This is a ViacomCBS that is being reimagined for a new kind of marketplace and a new kind of consumer," said Chair Shari Redstone. In a presentation to investors after releasing fourth-quarter results, the company laid out plans for its Paramount+ streaming service.
(Bloomberg) -- Li Ka-shing, Hong Kong’s richest property tycoon, is planning to raise funds for dealmaking by listing a special purpose acquisition company in the U.S., people with knowledge of the matter said.A company backed by Li’s family is working with advisers on the potential SPAC initial public offering, according to the people, who asked not to be identified because the information is private. They are considering seeking around $400 million, though the exact terms haven’t been finalized, the people said.The blank-check company could file registration documents with the U.S. Securities and Exchange Commission as soon as this week, the people said.Li is lionized by the public in Hong Kong, where he’s been nicknamed “Superman” for his investing prowess. The 92-year-old businessman became famous for his well-timed bets on everything from real estate to social media as he built a corporate empire spanning 50 countries.His family controls CK Hutchison Holdings Ltd., a $29 billion conglomerate that owns one of the world’s biggest port operators and has telecommunications, retail and infrastructure operations across Asia and Europe. They also run CK Asset Holdings Ltd., which is one of Hong Kong’s largest developers and also has investments in hotels, utilities and aircraft leasing. Both companies are now led by Li’s elder son, Victor.Li’s younger son, Richard, has already raised about $900 million via two U.S.-listed SPACs with tech mogul Peter Thiel. Richard is considering setting up a third blank-check company, Bloomberg News reported last week.No final decisions have been made, and details of the transaction could change, the people said. Representatives for Li didn’t immediately respond to emailed queries.(Adds details about Richard Li’s SPAC plans in sixth 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.
One of the more fascinating platform items of the Biden presidential campaign was the idea of transferring consumer credit ratings from Equifax (NYSE: EFX), Experian PLC (OTC: EXPGY) and TransUnion...
- Motley Fool
Shares of GameStop (NYSE: GME) were trading moderately higher on Wednesday until about 1 p.m. EST, when they started gaining a little momentum. Earlier this year, GameStop stock had an epic short squeeze, orchestrated by a group on Reddit called Wallstreetbets. This group noticed that short interest for GameStop stock was over 100%.
- Yahoo Finance
Costco has a leg up on e-commerce behemoth Amazon (AMZN) on at least one measure, according to Charlie Munger, vice chairman of Berkshire Hathaway.
As Washington awaits the House of Representatives' vote on the $1.9 trillion COVID-19 relief bill on Friday, California Governor Gavin Newsom signed a coronavirus aid package worth $7.6 billion,...
(Bloomberg) -- A flurry of buying that saw GameStop Corp. shares almost quadruple from Tuesday’s close spread to a host of other meme stocks at the center of last month’s day trader-fueled boom and bust.GameStop jumped 104% in Wednesday’s cash session, spurred by a final-hour surge that brought its biggest advance since Jan. 29, the day Robinhood Markets restricted trading in it and 49 other stocks at the height of the frenzy. An equally weighted Bloomberg basket of those rose more than 5%, the most since late January. AMC Entertainment Inc. rallied 18% to push a three-day climb toward 59%. Express Inc. surged 41%, Naked Brand Group gained 31% and Koss Corp. jumped 55%.The activity inflated trading volumes in the meme stocks and caused an outage on Reddit’s WallStreetBets forum, the hub of the January volatility. The tumult continued in late trading, where GameStop rallied another 120% before paring the advance. At $135, the stock is up more than 200% from its close on Tuesday. Express jumped 30% while AMC was up 21%.“It seems like the Reddit crowd is still active and when you see a bit of news like that they’re pressing again,” Keith Gangl, portfolio manager at Gradient Investments, said in a phone interview. “Though I’m not sure how that’ll last,” he added.The sudden revival in left-for-dead stocks recalled an episode last month that captured the attention of Wall Street, regulators and eventually Congress, as members of Reddit’s WallStreetBets forum egged on retail hordes in an attempt to take on professional short sellers.Various explanations circulated as to what spurred the rallies. The GameStop frenzy came after Bloomberg News reported late Tuesday that the company’s chief financial officer Jim Bell was pushed out in a disagreement over strategy to make way for an executive more in line with the vision of activist investor and board member Ryan Cohen, the co-founder of online pet-food retailer Chewy.com. His addition to the board in early January underpinned the first flurry of moves in the stock after capturing the attention of WallStreetBets.The clearinghouse whose demands for increased margin collateral from Robinhood forced the brokerage to restrict trading last month published a white paper Wednesday that laid the grounds for speeding up the stock settlement process. It proposed cutting settlement to one day from two, prompting some chest puffing among the retail crowd on Reddit.The now infamous WallStreetBets forum, which boasts 9.2 million members, saw so much demand that the site would not load. When attempted, a page read “www.reddit.com is currently unable to handle this request” as of 4:43 p.m. in New York.(Updates late trading moves in third paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
The weather is warming up, birds are singing, snow is melting and people are smiling. You know what that means? Tax refund season is in full swing. I'm always a bit baffled when folks act like they've...
- Motley Fool
During the fourth quarter, the six biggest cable television services (which account for more than 90% of the U.S. cable industry) collectively lost nearly 1.2 million customers. It comes as no surprise that AT&T (NYSE: T) led the charge, losing 616,000 "premium TV" customers (mostly DirecTV subscribers). The company has discontinued lower-priced plans and raised the price of remaining ones in recent months, seemingly unconcerned about preserving the satellite cable company's value in front of a frequently rumored sale of the service.
Find out Tiger Woods' net worth after he won his fifth Masters title on April 14. The victory was Woods' first major win in more than a decade.