FANG earnings call for the period ending December 31, 2020.
(Bloomberg) -- China’s Inner Mongolia has banned cryptocurrency mining and declared its intention of shutting all such projects by April, spurring fears the world’s No. 2 economy will take more steps this year to eradicate the power-hungry practice.The autonomous region, a favorite among the industry because of its cheap power, also banned new digital coin projects, according to a draft plan posted on the Inner Mongolia Development and Reform Commission’s website Feb. 25. The aim is to constrain growth in energy consumption to about 1.9% in 2021.The announcement unnerved an industry that’s already been through a years-long Chinese campaign to shrink it down amid concerns over speculative bubbles, fraud and energy waste. The draft policy was released weeks after the National Development and Reform Commission -- China’s top economic planner -- blasted Inner Mongolia for being the only province to fail to control energy consumption in 2019.The region now aims to cut emissions per unit of gross domestic product by 3% this year and control incremental growth of energy consumption at about 5 million tons of standard coal, according to the draft plan.Bitcoin extended gains on Monday amid reports of the move, increasing as much as 5.1% in the session to $47,559.Chinese officials first outlined proposals in 2018 to discourage crypto-mining -- the computing process that makes transactions with virtual currencies possible but consumes vast amounts of power.Inner Mongolia, which is clustered with large coal mines, is famous for inexpensive energy and has attracted investment from a plethora of power-intensive sectors such as aluminum and ferro-alloy smelting over past decades. The region accounted for 8% of global Bitcoin mining computing power, according to the Bitcoin Electricity Consumption Index compiled by Cambridge University. China overall had over 65% of the network’s total, with its appealing combination of inexpensive electricity, local chipmaking factories and cheap labor.The local crackdown is reviving old fears. Beijing since 2017 has abolished initial coin offerings and clamped down on virtual currency trading within its borders, forcing many exchanges overseas. The country was once home to about 90% of trades but the lion’s share of mining, but major players like Bitmain Technologies Ltd. have since fled abroad.Taiwan Semiconductor Manufacturing Co. and Nvidia Corp. are among listed chipmakers that supply crypto miners in China and around the world.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
Buffett views his stock portfolio as a 'collection of businesses.'
The World Trade Organization's (WTO) first female and first African director-general Ngozi Okonjo-Iweala began work on Monday, ending a six-month leadership void by vowing to unblock negotiations on rules to stop over-fishing. The first day with the former finance and foreign minister at the helm of the WTO coincides with a meeting of its top decision-making body, the General Council. Its 164 member states will discuss topics such as trade rules on COVID-19 vaccine distribution which Okonjo-Iweala has identified as a priority.
(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.
- FX Empire
It’s a bullish start to the day for Bitcoin and the broader market. A Bitcoin move through to $47,000 levels would support a breakout day for the majors.
(Bloomberg) -- The freeze-driven shuttering of core sections of the U.S. refining system isn’t all good news for rival plants in Europe. Down at the bottom of the barrel, losses are deepening.While U.S. shutdowns mean less competition for European refiners in supplying gasoline and diesel on both sides of the Atlantic, they also remove an important export market for the remnants of the refining process -- products known as fuel oil.With much of the U.S. Gulf Coast in recovery mode after February’s extreme weather, many of those barrels need a new home. That is acting as a drag on margins for those refineries that churn out relatively large amounts of higher-sulfur fuel oil.“The U.S. is suddenly not taking so many cargoes a month transatlantic,” said Hedi Grati, a director at IHS Markit. “It needs to find another outlet.”Gulf Coast refineries regularly import bottom-of-the-barrel feedstocks from Europe and Russia, turning them into higher-value fuels like diesel and gasoline. But with so many outages on the Gulf Coast, there’s little appetite from that region for such cargoes at the moment.As a result, exports toward the U.S. from Europe and Russia of dirty petroleum product -- including various grades of mostly high-sulfur fuel oil and vacuum gasoil -- have plunged. They sank by 136,000 barrels a day, or about 40%, during the period February 1-23 compared with January, and by roughly 50% year-on-year, according to tanker analytics firm Kpler. The figures don’t include dirty shipments known to be low-sulfur.Lack of DemandThat’s led to diminished demand for European barrels, which is helping to push down the value of high-sulfur fuel oil relative to crude oil, known as the crack spread. In northwest Europe, the measure recently fell to its lowest since May.“High-sulfur fuel oil cracks in Europe -- but also in the U.S. Gulf Coast and Singapore -- are under pressure due to lower seasonal utility demand in the Middle East and refinery outages in the United States, drawing less fuel oil as heavy feedstock,” Grati said.With Gulf Coast refiners beginning to resume operations, the absence of U.S. demand for bottom-of-the-barrel material might prove short-lived. But there is another bearish factor on the horizon: OPEC+ may start ramping production back up, and its output of heavier, sulfurous crudes is likely to result in more high-sulfur fuel oil being made.“You would essentially be replacing light, sweet, U.S. crude with primarily medium sours, which have a much higher yield of HSFO,” said Chris Barber, principal of ESAI Energy. That “should increase HSFO supply,” he said.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 drop reflects tougher foreign investment laws and the effects of Covid-19.
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.
Japanese companies are ramping up the use of artificial intelligence and other advanced technology to reduce waste and cut costs in the pandemic, and looking to score some sustainability points along the way. Disposing of Japan's more than 6 million tonnes in food waste costs the world's No.3 economy some 2 trillion yen ($19 billion) a year, government data shows. With the highest food waste per capita in Asia, the Japanese government has enacted a new law to halve such costs from 2000 levels by 2030, pushing companies to find solutions.
(Bloomberg) -- New World Development Co.’s Adrian Cheng is planning to raise funds through a special purpose acquisition company in the U.S., according to people familiar with the matter, making him the latest Hong Kong tycoon to jump on the blank-check firm bandwagon.Cheng is working with advisers on the potential SPAC’s initial public offering, said the people, asking not to be identified as the information isn’t public. The blank-check company could raise $200 million to $400 million, one of the people said.Deliberations are at an early stage and details such as size and strategy could still change, they said. A representative for New World said the company had no immediate comment.Cheng, who’s the chief executive officer of New World, joins fellow Hong Kong tycoons Li Ka-shing and Richard Li in planning a blank-check company, tapping what has become a red-hot market in the U.S. with over $60 billion raised through the vehicles, more than half of the total amount fetched in all of 2020, data compiled by Bloomberg show.SPACs raise money from investors and then look to acquire another business, usually a private one, within two years. Historically just a U.S. product, a growing number of Asia-based funds and financiers have been setting up blank-check companies with the aim of snapping up a target in the fast-growing region.So far this year, eight blank-check companies backed by Asian sponsors including Primavera Capital and Hopu Investment have gone public in the U.S., raising a total of $2.42 billion, according to data compiled by Bloomberg. That’s an acceleration from 2020, when 11 Asian SPACs raised $2.26 billion in the whole year.New World Development, whose businesses span across real estate, retail and infrastructure, is also looking for a senior executive to oversee its merger and acquisition activities in areas such as health care and logistics as it expands beyond property, Bloomberg News reported this month.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.
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.
- Yahoo Finance
While Warren Buffett isn’t known to prognosticate on where interest rates are heading, he warns that fixed-income investors “face a bleak future."
(Bloomberg) -- The U.K. is set to introduce a mortgage guarantee program to help people get on the property ladder, after the housing market enjoyed a recession-defying surge.The program will bring back 95% mortgages to help aspiring homeowners who have smaller deposits, the Treasury department said in a statement. Chancellor Rishi Sunak is expected to announce the scheme during Wednesday’s budget.The much-anticipated budget will be the first look into a post-pandemic economy after Prime Minister Boris Johnson announced his road-map out of lockdown earlier this month.The U.K.’s housing market has been bolstered by a moratorium on stamp duty charged on property purchases, which saved buyers up to 15,000 pounds ($20,900). That’s due to expire at the end of next month, but there are reports that Sunak could prolong the exemption. First-time buyers or current homeowners looking to buy a house for up to 600,000 pounds will just need a 5% deposit to secure a mortgage. The government will offer lenders the guarantee they need when the program starts in April.“Young people shouldn’t feel excluded from the chance of owning their own home and now it will be easier than ever to get onto the property ladder,” Prime Minister Boris Johnson said in a statement.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.
A look at the shareholders of Gascoyne Resources Limited ( ASX:GCY ) can tell us which group is most powerful...
- FX Empire
Gold is just an investment that competes for capital just like bonds, stocks and now cryptocurrencies.
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.
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.
(Bloomberg) -- As interest-rate jitters supercharged a meltdown in the world’s biggest bond market, Sam Sicilia barely blinked.“The markets are wrong” about inflation expectations, said Sicilia, chief investment officer of the A$56 billion ($43 billion) Host-Plus Pty pension fund in Melbourne. “Deflationary forces are bigger. Interest rates are going to stay at effectively zero.”With governments around the globe still adding to trillions of dollars of stimulus to ride out the pandemic, pension fund managers who are trying to discern the long-term effects are posing the question: Will inflation make a comeback? If it does, more than $46 trillion of global pension assets would be affected as central banks pivoted toward sustained higher interest rates.Interviews with five pension funds that help oversee parts of Australia’s A$2.9 trillion ($2.3 trillion) in retirement assets reveal a rank of investors largely unconcerned about the risk of rising prices.Last week, bond trades triggered speculation that inflation may accelerate to multi-year highs as the inevitable conclusion to the world’s $19.5 trillion coronavirus rescue package. Yields on 10-year Treasuries surged to pre-pandemic levels on Thursday, convulsing markets from stocks to credit as traders bet on more aggressive tightening -- with a U.S. interest rate hike briefly priced in for late 2022, at least a year earlier than the Federal Reserve had signaled.Debt markets calmed on Monday, as investors bet central banks would ramp up asset purchases to prevent yields rising too quickly.“I don’t think they would want to risk any recovery” by allowing markets to tighten too quickly, said Michael Clavin head of fixed-income at the A$140 billion Aware Super, Australia’s second-biggest pension fund by assets. There may be a “burst of inflationary data, but we’re not really sure it’s sustainable.”Wind VaneLike Sicilia, Clavin points to technology advancements as the biggest damper on long-term price growth.Economists have struggled for years to quantify technology’s deflationary impact on everything from supply chains to wage growth -- Clavin’s wind vane for price pressures -- but the overall effect has been to stifle price increases. And that’s not including the increased unemployment from the pandemic.Read More: Aggressive Fed Hike Bets Spur Treasury Buy-the-Dip Calls“There’s still quite a big hurdle to get the jobs back that were lost,” Clavin said. “I don’t see how you’re going to overcome those deflationary forces without some sort of wage growth.”Aware is sticking to a strategy that includes being overweight in global equities and cash in its default option to ride out the market volatility. It also invests about 15.6% of its default fund in fixed-income assets.Sicilia continues to shun “outrageously expensive” bonds and is investing in stocks and private equity on bets that risk-assets will continue to outperform as central banks keep rates near record lows.“In five to 10 years’ time, you’ll have people saying ‘we should have bought equities at 20 times earnings,’” he said. “If technology is the root cause of no inflation, that means you’re not going to be able to generate inflation anytime soon.”While bond markets suggest there may be “inflation in the pipeline”, it might be short-lived, said John Pearce, Sydney-based investment chief at the A$90 billion UniSuper Management Pty.The 30-year market veteran points to Japan as an example where inflation remains elusive despite years of quantitative easing and ultra-loose monetary policy. Markets today are a far cry from the 1970s when a massive oil shock and collapse of the Bretton Woods system turbocharged price hikes, he said.“You look at the marginal cost of everything just plummeting because of the improvements in technology -- I don’t see that stopping anytime soon,” said Pearce. “We’re not a believer that we’re going to see persistently high inflation.”It may be “worth having a look at” 10-year Treasuries if yields climb to 2.5%, he said.Contrarion BetsThat’s not to say that the recent volatility hasn’t produced some buying opportunities.When bond yields plunged to historic lows last year, IOOF Holdings Ltd. pivoted some of its funds from government debt to credit and senior loans. By December, one of the Melbourne-based pension’s underlying asset managers had switched from a long duration position -- or holding securities with higher interest-rate risk -- to a short on signs inflation pressures were building.The wagers paid off. During the worst month for Australian bond returns on record, the fund’s fixed-income strategy rose 0.6%.“Because we’re starting from such a low base on inflation, you’re probably likely to see over the next three-to-six months” economic data showing some price rises, said Osvaldo Acosta, head of fixed-interest assets who studies bonds and stock returns to look for an inflection point for inflation. “The greatest risk that we saw for the last 12 months was the amount of stimulus both monetary and also fiscal that was coming through -- it is just tremendous.”Now, with U.S. yields pulling global rates higher, Acosta is weighing his fund’s position. “Bonds are starting to look attractive,” he said.Even so, most of those managing Australia’s giant pension funds don’t see a return to the high levels of inflation that characterized U.S. economics in the 1970s.Con Michalakis, chief investment officer of Statewide Superannuation Pty, compares the S&P 500 Index dividend yield against the U.S. 10-year benchmark as a bond valuation barometer and he’s now looking at opportunities in government debt after the selloff.“We’re going to hit an inflection point -- bonds near 2% offer some insurance value that they didn’t offer when they were 80 basis points,” said Adelaide-based Michalakis. “We are in an era of slightly higher structural long-term inflation, but nothing disastrous.”(Adds tout)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.
Reserve Bank of India governor Shaktikanta Das has said the central bank has "certain major concerns about cryptocurrency" and its impact on financial stability.
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.