Howell date : 210524 19h17m50s World Reuters 210524 19h02m Australia reinstates COVID-19 curbs in Melbourne after fresh outbreak Australia's second largest city Melbourne reinstated COVID-19 restrictions on Tuesday as authorities scrambled to find the missing link in a fresh outbreak that has grown to five cases. "This is a responsible step that we need to take to get on top of this outbreak," James Merlino, Victoria state's acting premier, told reporters in Melbourne. Victoria was the hardest-hit state during a second wave late last year, accounting for about 70% of total cases and 90% of deaths in Australia. World Bloomberg 210524 18h28m Oil Holds Two-Day Surge as Investors Weigh Iran Talks, Demand (Bloomberg) -- Oil was steady after its biggest two-day surge since early March as investors tracked a recovery in the U.S. economy before summer driving season and progress toward the revival of the Iranian nuclear deal.West Texas Intermediate traded near $66 a barrel after rallying more than 6% in the previous two sessions. Talks between Iran and world powers will continue in Vienna this week to resolve outstanding issues on the accord, which may pave the way for the removal of U.S. sanctions on Iranian crude flows. Goldman Sachs Group Inc. said the market will likely be able to absorb the extra barrels, highlighting the robustness of demand as vaccines are rolled out.Mobility in the U.S. is picking up, aiding energy consumption. With more than 61% of U.S. adults having received at least one vaccine dose, new coronavirus cases rose just 0.5% in the past week, the slowest increase since March 2020. The upcoming Memorial Day break, a three-day weekend for many, traditionally marks the start of the nation’s summer driving season.Oil remains on course for another monthly gain in May -- the fourth out of five this year -- as investors wager demand will pick up in the U.S., Europe, and China as the pandemic eases. That will be partially offset, however, by weakness elsewhere, especially India, where the coronavirus is still rampant.The possibility of Iran’s official return to the global oil market has been well-flagged. While Tehran said on Monday that gaps remain in negotiations aimed at reaching a deal, diplomats are pressing for a solution. As part of that process, Iran has agreed to extend a key nuclear-monitoring pact with United Nations’ inspectors, clearing the way for more time for the talks.Iranian President Hassan Rouhani spoke by phone with his Chinese counterpart, Xi Jinping, on Monday, with the pair agreeing to deepen ties in trade and energy, an important issue if a deal removes restrictions on crude exports.Brent’s prompt timespread was 7 cents a barrel in backwardation. While that’s a bullish pattern -- with near-term prices above those further out -- it is down from 32 cents at the beginning of last week.More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. Business Bloomberg 210524 18h27m Weight-Loss App Noom Gets $540 Million in Silver Lake-Led Round (Bloomberg) -- Noom Inc., whose app is designed to help people lose weight by changing their behavior, raised $540 million in a new funding round as it seeks to expand into other realms of personal health.Private equity firm Silver Lake led the round, which also included investors such as health-care funds Oak HC/FT and Novo Holdings. Noom plans to use the money to hire fresh talent, Chief Executive Officer Saeju Jeong said in an interview.Noom is valued at $3.7 billion after the round, according to people who asked not to be identified because the information was private. A representative for the company declined to comment on the valuation.Noom, founded more than a decade ago under a different name, saw interest swell amid the coronavirus pandemic. Sales reached $400 million last year, up from $200 million in 2019, said Chief Financial Officer Michael Noonan.Noom is expanding beyond weight loss to areas such as stress management, help with sleep, diabetes and hypertension. While it currently focuses on individual consumers, it’s also reaching out beyond the app store, tapping employers and possibly even health insurers.Pushing into the enterprise market will pit Noom against a growing number of companies vying for that business. The digital health space is booming, with startups pitching employers on technology to make their workers healthier and reduce their costs.“That’s where we come in, and we get excited because that’s very much our bread and butter,” said Andrew Adams, Oak HC/FT’s co-founder and managing partner.Noom could go public within a year. The company has met with potential advisers to discuss an initial public offering, eyeing a valuation of around $10 billion, Bloomberg has reported. Noonan wouldn’t comment on the company’s listing plans.Sequoia, Samsung VenturesThe latest funding round was a mix of primary and secondary purchases, Noom said. Silver Lake, Oak HC/FT, Novo Holdings and Temasek were the new investors participating in the Series F round. Existing investors Sequoia Capital, RRE and Samsung Ventures also contributed.Adam Karol, managing director at Silver Lake, and Stacy Brown-Philpot, former Taskrabbit Inc. CEO and a founding member of the SoftBank Opportunity Fund, will join Noom’s six-member board of directors.Getting people to lose weight and keep it off is challenging -- and potentially lucrative. Almost three-quarters of adults in the U.S. are overweight and about 43% qualify as obese, according to the Centers for Disease Control and Prevention. Dieting can help people shed pounds, though people tend to gain them back. Noom markets its program as addressing underlying psychological factors related to weight gain.“We are building the world’s best behavior-changing platform,” Jeong said.Users input information such as their current and ideal weight, as well as their motives and time frames for wanting to shed pounds. People enter the foods they eat into the app and receive tips on nutrition and exercise.Diabetes, HypertensionIn a 2016 study of roughly 36,000 Noom users, 78% of them dropped pounds while using the app. Almost one-quarter of the people lost more than 10% of their body weight. To Jeong, those numbers show Noom is working -- and that the company could push into treating some diseases.Many Noom users have weight-related health conditions like diabetes and hypertension, Jeong said. The company wants to treat those, too.Managing chronic diseases will require some retooling of Noom’s current product and continued investment, Adams said.“I wouldn’t call it a risk, but you’ve got to have real execution and focus,” he said.More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. Business Bloomberg 210524 18h24m Asian Stocks Steady Amid Easing Inflation Fears: Markets Wrap (Bloomberg) -- Asian stocks were steady Tuesday after technology shares spurred a Wall Street rally as Federal Reserve officials tried to soothe concerns about inflation. Bitcoin held onto gains following last week’s crypto rout.Equities in Japan, South Korea and Australia rose modestly at the open. U.S contracts edged up after the S&P 500 climbed and the Nasdaq 100 outperformed amid a jump in Apple Inc. and Tesla Inc. Bitcoin soared in part on Elon Musk’s support for an apparent effort to improve its green credentials.The Fed comments aided sentiment, as officials reiterated they expect transitory rather than lasting price pressures from the U.S. economic rebound. Ten-year U.S. Treasury yields and the dollar were stable following a retreat.Oil held an advance after Iran said that gaps remain in negotiations aimed at reaching a deal to end U.S. sanctions on its crude. The Bloomberg Commodity Spot Index advanced the most in about a week.Fed officials Lael Brainard, Raphael Bostic and James Bullard said they wouldn’t be surprised to see bottlenecks and supply shortages push prices up in coming months as the pandemic recedes, but that much of those gains should be temporary. While market-based measures of inflation expectations have dipped, investors remain cautious about the risk of a pullback in stimulus. They are also monitoring Covid-19 spikes in regions such as Asia.“Inflation is a key focus for investors, meaning uncertainty over what happens to interest rates,” Chris Iggo, chief investment officer of core investments at AXA Investment Managers, wrote in a note. “Yield curves have stabilized, but it is not clear that renewed inflation concerns automatically mean steeper curves.”Here are some events this week:Bank of Indonesia rate decision Tuesday, Reserve Bank of New Zealand policy decision Wednesday, Bank of Korea rate decision Thursday.CEOs of the largest U.S. banks, including JPMorgan and Goldman Sachs, will testify before lawmakers in the Senate Banking and House Financial Services committees Wednesday.U.S. initial jobless claims, GDP, durable goods, pending home sales on Thursday.These are some of the main moves in markets:StocksS&P 500 futures rose 0.1% as of 9:20 a.m. in Tokyo. The index added 1%.Nasdaq 100 contracts rose 0.1%. The gauge added 1.7%Japan’s Topix index climbed 0.2%Australia’s S&P/ASX 200 index gained 0.5%South Korea’s Kospi index climbed 0.5%CurrenciesThe Japanese yen was at 108.76 per dollarThe offshore yuan traded at 6.4114 per dollarThe Bloomberg Dollar Spot Index was steadyThe euro was at $1.2218BondsThe yield on 10-year Treasuries held at 1.60%Australia’s 10-year bond yield was steady at 1.69%CommoditiesWest Texas Intermediate crude was steady at $65.92 a barrelGold dipped 0.2% to $1,876.77 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. Business Bloomberg 210524 18h18m China Grapples With Yuan Messaging Amid Inflation Pressures (Bloomberg) -- China’s central bank has sought to clarify that it won’t let the yuan strengthen too much, too quickly, as mixed signals from officials underline the challenges presented by a currency trading near a three-year high.The exchange rate will remain “basically stable,” the deputy governor of the People’s Bank of China said in a statement on Sunday. Earlier, another central bank official wrote that the yuan should appreciate to offset the higher costs of commodity imports. That essay, published in a state-backed magazine on Friday, has since been deleted. Separately, another official said China has to give up its control over the exchange rate eventually to achieve greater global use of the yuan.With factory-gate prices surging, a stronger yuan helps reduce the cost of imports, such as commodities -- a key component of inflation. Yet any sign that Beijing is encouraging gains in the currency may spur traders to bet on further appreciation, triggering capital inflows that could inflate asset bubbles.“The PBOC has a higher tolerance for strength in the yuan, but that doesn’t mean it wants to see major capital inflows or outflows, any directional trend or large volatility,” said Becky Liu, head of China macro strategy at Standard Chartered Plc. in Hong Kong. “That’s why, when it thinks the supply and demand of the yuan is imbalanced, it will use the fixing to manage expectations.”The yuan has gained 2.1% this quarter, making it one of the best performers in Asia. The rally has been fueled by weakness in the dollar, which is near a three-year low. Capital inflows helped to quicken the gains, as overseas funds bought yuan bonds that will be included in global indexes and offer more attractive yields.China has long been resistant to one-way appreciation in its currency, which has become a key concern after foreign investors boosted their holdings of onshore stocks and bonds by nearly 70% in the year through March.An appreciating local currency also makes Chinese exports less competitive. “The main risk of such a strong yuan is that it hurts exports, and as such, it hurts exporters and therefore producers in the same way as high commodity prices,” said Iris Pang, chief economist for Greater China at ING Bank NV.The PBOC is doing more than sending verbal signals. The central bank set its reference rate at weaker-than-expected levels on all except three days this month, suggesting its tolerance for a strong currency is fading. The authorities also boosted the quota for onshore investors to buy overseas assets in January and March, reflecting Beijing’s willingness to see more capital outflows. The onshore yuan gained 0.2% to 6.42 per dollar on Monday.“The yuan will have room to gain further in the near term as the dollar remains weak,” said Tommy Ong, managing director for treasury and markets at DBS Hong Kong Ltd. “But the PBOC will likely manage expectations when the rally is too quick.”(Update prices in fifth and penultimate paragraphs.)More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. Howell date : 210524 18h17m14s Business Reuters 210524 18h00m Singapore Q1 GDP up 1.3% on higher manufacturing output, topping forecasts Singapore's economy expanded more than initially estimated in the first quarter, helped by stronger-than-expected manufacturing, official data showed on Tuesday. Gross domestic product (GDP) grew 1.3% year-on-year in the first quarter, the Ministry of Trade and Industry (MTI) said, higher than the 0.2% growth seen in the government's advance estimate. The MTI said it would maintain 2021 GDP growth forecast at 4% to 6% amid significant uncertainties arising from the COVID-19 pandemic. Business Reuters 210524 17h56m At Epic v Apple's closing, judge probes implications of upending Apple's App Store Federal Judge Yvonne Gonzalez Rogers held unconventional closing arguments Monday in the antitrust trial between Epic Games and Apple Inc, peppering both sides' attorneys for three hours about how far she could - and should - go to change Apple's App Store business. App makers and regulators around the world are watching the trial and Gonzalez Rogers has hinted in sharp questions to Apple that she may be receptive to some of the "Fortnite" game creators' allegations that Apple misuses its control over the App Store and hurts developers. Business Reuters 210524 17h29m WRAPUP 1-U.S. Treasury deputy chief sees G7 backing for 15%-plus global minimum tax U.S. Treasury Deputy Secretary Wally Adeyemo said he expects strong backing from G7 peers for Washington's proposed 15%-plus global minimum corporate tax, which should help solidify support in the U.S. Congress for domestic corporate tax legislation. "My sense is that you're going to see a lot of unified support amongst the G7 moving forward," Adeyemo told Reuters on Monday after France, Germany, Italy and Japan made positive comments about the Treasury's proposal. Business Business Business Business Bloomberg 210524 16h17m AI Specialist BigBear Is In Merger Talks With GigCapital4 SPAC (Bloomberg) -- BigBear.ai, an artificial-intelligence company, is in talks to go public through a merger with GigCapital4 Inc., a blank-check firm, according to people with knowledge of the matter.The special purpose acquisition company is seeking to raise equity and convertible debt to support a deal that’s set to value the combined entity at more than $1.5 billion, said one of the people. Terms could change and as with all transactions that aren’t yet finalized, it’s possible talks could collapse.Columbia, Maryland-based BigBear’s projected 2021 revenue is $150 million to $200 million, one of the people said. The company says it is a provider of artificial intelligence and machine learning, advanced analytics, data science and management to U.S. government clients including the Department of Defense and intelligence agencies.BigBear, led by Reggie Brothers, was formed through the merger of NuWave Solutions and PCI Strategic Management, portfolio companies of private equity firm AE Industrial Partners LP, according to a February statement. AE acquired both companies last year.A spokeswoman for both BigBear and AE Industrial Partners and a GigCapital representative declined to comment.GigCapital4, led by Chairman Avi Katz and Chief Executive Officer Raluca Dinu, raised about $359 million in an February initial public offering with a focus on technology, media, telecommunications and sustainable industries.Earlier GigCapital vehicles have agreed to take other companies public, including Lightning eMotors Inc., Kaleyra Inc., UpHealth Holdings Inc. and Cloudbreak Health LLC.More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. Business Yahoo Finance 210524 16h17m Stock market news live updates: Stock futures open slightly higher, extending gains as tech stocks rebounded Stock futures opened slightly higher Monday evening following a rally during the regular trading day, with technology stocks outperforming as concerns over rising inflation were at least temporarily pushed to the side. Howell date : 210524 17h16m36s Business Yahoo Finance 210524 16h25m Stock market news live updates: Stock futures open slightly higher, extending gains as tech stocks rebounded Stock futures opened slightly higher Monday evening following a rally during the regular trading day, with technology stocks outperforming as concerns over rising inflation were at least temporarily pushed to the side. Business Business Health Yahoo Finance Video 210524 15h16m Filipino nurses hit hard by the coronavirus pandemic The coronavirus pandemic brought to light the inequities of America's health care system — including access to care and underlying conditions that disproportionately affect certain communities. One particular subgroup has been suffering on the front lines: Filipino-American nurses. Filipinos make up about 4% of all registered nurses in the U.S., but accounted for 30% of COVID-19 related deaths among nurses in 2020, according to National Nurses United. The disproportionate impact of COVID-19 on Filipino-American nurses in the U.S. is no coincidence. The U.S. colonized the island after the Spanish American war in 1898, setting up nursing schools that trained Filipinos in Western medicine and English. That strategy eventually became a convenient source to fill a nursing shortage in the U.S. After World War II, when government funding to scale up wartime nursing staff declined, the U.S. was left with a shortage that was filled by an Exchange Visitor Program. The program had a dual purpose — it filled the nurse shortage and was also a propaganda strategy against rising Soviet communist influences in the region. But many of the nurses were eventually sent back to the Philippines. The U.S. once again leaned on Filipino nurses to fill shortages in the 1960s, but this time immigration reform allowed them to remain in the states. The influx was mutually beneficial for the two countries, as the U.S. was looking for cheap labor and the Philippines was looking for a way to export its labor as joblessness soared at home. Its economy also benefited as the result of many immigrants sending money home to their families. Throughout these periods, Filipino nurses were paid poorly and given some of the most strenuous jobs. It’s why they are often found in critical and long term care settings, which have been the hardest hit by the pandemic. And it’s why they were among the most affected during the pandemic. (Photo by: Basilio H. Sepe/Majority World/Universal Images Group via Getty Images) Intolerance for intolerance Lourdes Careaga, president of the Metro District of Columbia Chapter of the Philippine Nurses Association, arrived in the U.S. in the 1980s to help support her family. She was in her early 20s at the time and came to earn money to help support her 7 younger siblings in order to help them get a better education. "My story was written for me my first 20 years. My parents said, 'She has to go to college and she has to take up nursing.' That’s the only way to, as a woman, have a career and help the family out. I didn’t want to be a nurse," Careaga told Yahoo Finance. She said that by time she had arrived, the previous generation of nurses had established better advocacy networks within the community and the pay was better. Still, she said, there is still an underrepresentation of Filipino nurses in management positions. Careaga said she sees more Filipinos in middle management, but only recently have a few — largely from the younger, American-born generation — been breaking through to upper management. Careaga says she has witnessed the increase in hate crimes and bias against Asian Americans this year. She said the recent attacks are far more serious than the passive racism she experienced when she first arrived in the U.S.. She recalled once helping a white patient walk, with the help of an African-American colleague, through the hospital halls. A white surgeon commented that the trio looked like an Oreo cookie. "I was so new to the country I didn't even know what an Oreo cookie is. Lucky for him I didn't know," Careaga said. Another time, a woman at a shoe store asked multiple times if she knew the cost of a shoe Careaga was asking to try on — insinuating she wouldn't be able to afford it. She'd largely brushed off or quietly tolerated such experiences, but the attacks that have been reported in the past year have changed how she feels. "I'm getting more aware that I have to speak up and have to be more attuned to [bias] ... I think I should be a little bit intolerant," Careaga said. More from Anjalee: Moderna can't afford to share its vaccine technology, CEO says China, Russia playing 'greater-than-expected' roles in global pandemic response Biden COVID-19 adviser: Vaccine news is great, but we still have a ways to go Read the latest financial and business news from Yahoo Finance. Follow Yahoo Finance on Twitter, Facebook, Instagram, Flipboard, SmartNews, LinkedIn, YouTube. Business Bloomberg 210524 15h16m Germany’s Vonovia to Buy Deutsche Wohnen for $23 Billion (Bloomberg) -- German residential property firm Vonovia SE agreed to acquire rival Deutsche Wohnen SE for about 19 billion euros ($23 billion) in the biggest-ever takeover in European real estate.Vonovia will offer 53.03 euros per share in cash for each Deutsche Wohnen share, including a proposed dividend, the companies said in a statement Monday, confirming an earlier Bloomberg News report. The bid represents about an 18% premium to Deutsche Wohnen’s Friday closing price.The deal for Deutsche Wohnen ranks as the year’s biggest European takeover, according to data compiled by Bloomberg. It would reshape the country’s property industry, bringing together the two largest residential landlords with control of more than 500,000 apartment units.German property companies have faced rising public pressure over the past few years over high prices, particularly in the nation’s capital. Deutsche Wohnen faced a brief respite after a mid-April decision by the German constitutional court to overturn a controversial rent freeze in Berlin, where the company’s apartments are located.As part of the deal, Vonovia and Deutsche Wohnen are offering the state of Berlin the option to buy “a significant number” of residential units from the companies, according to the statement.Vonovia is planning a rights issue of as much as 8 billion euros after the completion of the transaction, expected in the second half. The companies anticipate 105 million euros in cost savings a year from the joint management of their portfolios.The latest move marks the third time Vonovia has tried to acquire Deutsche Wohnen. A previous attempt failed in February 2016 after Vonovia couldn’t win enough support from Deutsche Wohnen investors. Deutsche Wohnen called that bid hostile and not in the best interests of shareholders.Vonovia brought on advisers early last year to again consider the feasibility of a transaction, Bloomberg News reported at the time. In the end, it decided not to move forward with a bid.The deal shows that Vonovia Chief Executive Officer Rolf Buch was finally able to win over his counterpart at Deutsche Wohnen, Michael Zahn, after the two clashed over price during the failed pursuit about five years ago. Buch has built Bochum-based Vonovia into a European property heavyweight through several acquisitions, including the 2019 purchase of Swedish landlord Hembla AB and a 2016 deal for Austrian developer Conwert Immobilien Invest SE.Zahn and Deutsche Wohnen Chief Financial Officer Philip Grosse are expected to be named to Vonovia’s management board after the acquisition, the companies said.(Adds details on deal starting in the fifth 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. Business Bloomberg 210524 15h16m Amazon Deal to Acquire MGM to Come as Soon as Tuesday (Bloomberg) -- Amazon.com Inc. is poised to announce an acquisition of the Metro-Goldwyn-Mayer movie studio as soon as Tuesday, according to a person familiar with the matter, marking the e-commerce giant’s biggest push yet into Hollywood.Amazon is in talks to pay almost $9 billion for the business, said the person, who asked not to be identified because the deliberations are private. The discussions -- first reported last week -- could still fall apart, and it’s possible that the price or timing changes.The agreement would bring a vast library of movies and shows to Amazon, which operates the Prime Video streaming service. MGM’s catalog includes the James Bond, Pink Panther, RoboCop and Rocky franchises, as well as films such as “The Silence of the Lambs.”Amazon and MGM declined to comment.MGM, currently owned by hedge funds including Anchorage Capital Group, has been seen as a takeover target for years, but was never able to close a sale before. The company made a fresh push last year, when it reportedly hired advisers to seek offers.What Bloomberg Intelligence says:“The acquisition could raise Amazon.com’s streaming profile by adding a mountain of proprietary content, strengthening the reach and value of its Prime offering. The deal would be Amazon’s second biggest after Whole Foods.”-- Poonam Goyal, BI retail analystClick here to read the research.The studio also has sought other ways to wring money from its movies. It held talks with Apple Inc. and Netflix Inc. about taking its new James Bond film directly to streaming, people familiar with the matter said last year. The studio opted to stick with a theatrical release for the film, which debuts in the U.S. on Oct. 8.The Wall Street Journal previously reported that an MGM-Amazon deal could come as soon as this week.At roughly $9 billion, the MGM takeover would be Amazon’s biggest acquisition since it agreed to buy Whole Foods in 2017 for $13.7 billion. But it’s not the first sign that the company is willing to spend big on media. The company shelled out about $11 billion on content for its streaming video and music services last year alone. And it agreed to pay about $1 billion a year on NFL rights.(Updates with MGM’s response in fourth 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. Howell date : 210524 16h16m00s Business Bloomberg 210524 15h46m Asian Stocks Set to Climb as Dollar, Yields Drop: Markets Wrap (Bloomberg) -- Asian stocks are set to open higher Tuesday after technology shares led gains in the U.S. as investors put inflation worries on the backburner for now. Bitcoin surged after a weekend rout.Futures pointed higher in Japan, Australia and Hong Kong. The S&P 500 rose and the Nasdaq 100 outperformed amid a rally in technology giants such as Apple Inc., Amazon.com Inc. and Tesla Inc. The world’s largest cryptocurrency soared after plunging as much as 18% on Sunday. Benchmark 10-year Treasury yields and the dollar retreated.Oil jumped by the most in a month after Iran said that gaps remain in negotiations aimed at reaching a deal to end U.S. sanctions on its crude, which would add to supply in the market.Federal Reserve officials reiterated that they expect spikes in inflation to be transitory. Federal Reserve Governor Lael Brainard, Atlanta Fed President Raphael Bostic and St. Louis’s James Bullard said they wouldn’t be surprised to see bottlenecks and supply shortages push prices up in coming months as the pandemic recedes and pent-up customer demand is unleashed -- but much of those price gains should prove temporary.While market-based measures of inflation expectations have dipped, investors remain cautious about price pressures as well as Covid-19 spikes, for instance in Asia.“Inflation is a key focus for investors, meaning uncertainty over what happens to interest rates,” Chris Iggo, chief investment officer of core investments at AXA Investment Managers, wrote in a note. “Yield curves have stabilized, but it is not clear that renewed inflation concerns automatically mean steeper curves.”Here are some events this week:Bank of Indonesia rate decision Tuesday, Reserve Bank of New Zealand policy decision Wednesday, Bank of Korea rate decision Thursday.CEOs of the largest U.S. banks, including JPMorgan and Goldman Sachs, will testify before lawmakers in the Senate Banking and House Financial Services committees Wednesday.U.S. initial jobless claims, GDP, durable goods, pending home sales on Thursday.These are some of the main moves in markets:StocksThe S&P 500 rose 1%The Nasdaq 100 added 1.7%Nikkei 225 futures climbed 0.5%Australia’s S&P/ASX 200 index futures gained 0.3%Hang Seng index futures rose 0.3%CurrenciesThe Japanese yen was at 108.76 per dollarThe offshore yuan traded at 6.4096 per dollarThe Bloomberg Dollar Spot Index fell 0.2%The euro was at $1.2216BondsThe yield on 10-year Treasuries declined two basis points to 1.60%CommoditiesWest Texas Intermediate crude rose 3.9% to $66.05 a barrelGold was at $1,881.02 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. Health Yahoo Finance Video 210524 15h31m Filipino nurses hit hard by the coronavirus pandemic The coronavirus pandemic brought to light the inequities of America's health care system — including access to care and underlying conditions that disproportionately affect certain communities. One particular subgroup has been suffering on the front lines: Filipino-American nurses. Filipinos make up about 4% of all registered nurses in the U.S., but accounted for 30% of COVID-19 related deaths among nurses in 2020, according to National Nurses United. The disproportionate impact of COVID-19 on Filipino-American nurses in the U.S. is no coincidence. The U.S. colonized the island after the Spanish American war in 1898, setting up nursing schools that trained Filipinos in Western medicine and English. That strategy eventually became a convenient source to fill a nursing shortage in the U.S. After World War II, when government funding to scale up wartime nursing staff declined, the U.S. was left with a shortage that was filled by an Exchange Visitor Program. The program had a dual purpose — it filled the nurse shortage and was also a propaganda strategy against rising Soviet communist influences in the region. But many of the nurses were eventually sent back to the Philippines. The U.S. once again leaned on Filipino nurses to fill shortages in the 1960s, but this time immigration reform allowed them to remain in the states. The influx was mutually beneficial for the two countries, as the U.S. was looking for cheap labor and the Philippines was looking for a way to export its labor as joblessness soared at home. Its economy also benefited as the result of many immigrants sending money home to their families. Throughout these periods, Filipino nurses were paid poorly and given some of the most strenuous jobs. It’s why they are often found in critical and long term care settings, which have been the hardest hit by the pandemic. And it’s why they were among the most affected during the pandemic. (Photo by: Basilio H. Sepe/Majority World/Universal Images Group via Getty Images) Intolerance for intolerance Lourdes Careaga, president of the Metro District of Columbia Chapter of the Philippine Nurses Association, arrived in the U.S. in the 1980s to help support her family. She was in her early 20s at the time and came to earn money to help support her 7 younger siblings in order to help them get a better education. "My story was written for me my first 20 years. My parents said, 'She has to go to college and she has to take up nursing.' That’s the only way to, as a woman, have a career and help the family out. I didn’t want to be a nurse," Careaga told Yahoo Finance. She said that by time she had arrived, the previous generation of nurses had established better advocacy networks within the community and the pay was better. Still, she said, there is still an underrepresentation of Filipino nurses in management positions. Careaga said she sees more Filipinos in middle management, but only recently have a few — largely from the younger, American-born generation — been breaking through to upper management. Careaga says she has witnessed the increase in hate crimes and bias against Asian Americans this year. She said the recent attacks are far more serious than the passive racism she experienced when she first arrived in the U.S.. She recalled once helping a white patient walk, with the help of an African-American colleague, through the hospital halls. A white surgeon commented that the trio looked like an Oreo cookie. "I was so new to the country I didn't even know what an Oreo cookie is. Lucky for him I didn't know," Careaga said. Another time, a woman at a shoe store asked multiple times if she knew the cost of a shoe Careaga was asking to try on — insinuating she wouldn't be able to afford it. She'd largely brushed off or quietly tolerated such experiences, but the attacks that have been reported in the past year have changed how she feels. "I'm getting more aware that I have to speak up and have to be more attuned to [bias] ... I think I should be a little bit intolerant," Careaga said. More from Anjalee: Moderna can't afford to share its vaccine technology, CEO says China, Russia playing 'greater-than-expected' roles in global pandemic response Biden COVID-19 adviser: Vaccine news is great, but we still have a ways to go Read the latest financial and business news from Yahoo Finance. Follow Yahoo Finance on Twitter, Facebook, Instagram, Flipboard, SmartNews, LinkedIn, YouTube. Business Bloomberg 210524 15h25m Germany’s Vonovia to Buy Deutsche Wohnen for $23 Billion (Bloomberg) -- German residential property firm Vonovia SE agreed to acquire rival Deutsche Wohnen SE for about 19 billion euros ($23 billion) in the biggest-ever takeover in European real estate.Vonovia will offer 53.03 euros per share in cash for each Deutsche Wohnen share, including a proposed dividend, the companies said in a statement Monday, confirming an earlier Bloomberg News report. The bid represents about an 18% premium to Deutsche Wohnen’s Friday closing price.The deal for Deutsche Wohnen ranks as the year’s biggest European takeover, according to data compiled by Bloomberg. It would reshape the country’s property industry, bringing together the two largest residential landlords with control of more than 500,000 apartment units.German property companies have faced rising public pressure over the past few years over high prices, particularly in the nation’s capital. Deutsche Wohnen faced a brief respite after a mid-April decision by the German constitutional court to overturn a controversial rent freeze in Berlin, where the company’s apartments are located.As part of the deal, Vonovia and Deutsche Wohnen are offering the state of Berlin the option to buy “a significant number” of residential units from the companies, according to the statement.Vonovia is planning a rights issue of as much as 8 billion euros after the completion of the transaction, expected in the second half. The companies anticipate 105 million euros in cost savings a year from the joint management of their portfolios.The latest move marks the third time Vonovia has tried to acquire Deutsche Wohnen. A previous attempt failed in February 2016 after Vonovia couldn’t win enough support from Deutsche Wohnen investors. Deutsche Wohnen called that bid hostile and not in the best interests of shareholders.Vonovia brought on advisers early last year to again consider the feasibility of a transaction, Bloomberg News reported at the time. In the end, it decided not to move forward with a bid.The deal shows that Vonovia Chief Executive Officer Rolf Buch was finally able to win over his counterpart at Deutsche Wohnen, Michael Zahn, after the two clashed over price during the failed pursuit about five years ago. Buch has built Bochum-based Vonovia into a European property heavyweight through several acquisitions, including the 2019 purchase of Swedish landlord Hembla AB and a 2016 deal for Austrian developer Conwert Immobilien Invest SE.Zahn and Deutsche Wohnen Chief Financial Officer Philip Grosse are expected to be named to Vonovia’s management board after the acquisition, the companies said.(Adds details on deal starting in the fifth 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. Business Bloomberg 210524 15h24m Amazon Deal to Acquire MGM to Come as Soon as Tuesday (Bloomberg) -- Amazon.com Inc. is poised to announce an acquisition of the Metro-Goldwyn-Mayer movie studio as soon as Tuesday, according to a person familiar with the matter, marking the e-commerce giant’s biggest push yet into Hollywood.Amazon is in talks to pay almost $9 billion for the business, said the person, who asked not to be identified because the deliberations are private. The discussions -- first reported last week -- could still fall apart, and it’s possible that the price or timing changes.The agreement would bring a vast library of movies and shows to Amazon, which operates the Prime Video streaming service. MGM’s catalog includes the James Bond, Pink Panther, RoboCop and Rocky franchises, as well as films such as “The Silence of the Lambs.”Amazon and MGM declined to comment.MGM, currently owned by hedge funds including Anchorage Capital Group, has been seen as a takeover target for years, but was never able to close a sale before. The company made a fresh push last year, when it reportedly hired advisers to seek offers.What Bloomberg Intelligence says:“The acquisition could raise Amazon.com’s streaming profile by adding a mountain of proprietary content, strengthening the reach and value of its Prime offering. The deal would be Amazon’s second biggest after Whole Foods.”-- Poonam Goyal, BI retail analystClick here to read the research.The studio also has sought other ways to wring money from its movies. It held talks with Apple Inc. and Netflix Inc. about taking its new James Bond film directly to streaming, people familiar with the matter said last year. The studio opted to stick with a theatrical release for the film, which debuts in the U.S. on Oct. 8.The Wall Street Journal previously reported that an MGM-Amazon deal could come as soon as this week.At roughly $9 billion, the MGM takeover would be Amazon’s biggest acquisition since it agreed to buy Whole Foods in 2017 for $13.7 billion. But it’s not the first sign that the company is willing to spend big on media. The company shelled out about $11 billion on content for its streaming video and music services last year alone. And it agreed to pay about $1 billion a year on NFL rights.(Updates with MGM’s response in fourth 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. Business Reuters 210524 15h18m U.S. chip funding could result in seven to 10 new factories -officials U.S. Commerce Secretary Gina Raimondo said on Monday a proposed $52 billion boost in U.S. government funding for semiconductor production and research could result in seven to 10 new U.S. factories. Raimondo said at an event outside a Micron Technology Inc chip factory that she anticipated the government funding would generate "$150 billion-plus" in investment in chip production and research - including contributions from state and federal governments and private-sector firms. Business World Howell date : 210524 15h15m23s Business Reuters 210524 15h03m GLOBAL MARKETS-Equities rally, dollar falls as inflation concerns grow Market participants were gearing up for U.S. personal consumption data - the Federal Reserve's preferred inflation measure - on Thursday, and a potential tapering of asset purchases in the face of strong economic data. "The market is taking a deep breath and is coming to terms with inflation," said Thomas Hayes, managing member at Great Hill Capital in New York. Business Bloomberg 210524 15h03m Shale Drillers Baffle Analysts With $7.4 Billion Merger (Bloomberg) -- Shale investors have been demanding more consolidation in the U.S. oil patch. But not exactly a deal like this one.The merger of Cabot Oil & Gas Corp. with Cimarex Energy Co. announced Monday has confounded investors and analysts, leaving them to question the logic behind a tie-up that the companies say will increase diversification. Cimarex is mostly an oil explorer in Texas and Oklahoma, while Cabot is focused on natural gas drilling in the Marcellus shale basin in Appalachia.Although the two companies are following a path blazed by other shale explorers of late by clinching a deal involving almost no takeover premium, it wasn’t enough to win over investors. Shares of both drillers slumped.Analysts at Citigroup Inc. said the deal -- an all-stock transaction valued at about $7.4 billion -- was an unexpected pairing as it creates geographic diversity, unlike other major industry transactions recently. KeyBanc Capital Markets Inc. downgraded shares of Cimarex because of the lack of a premium and what it views as no clear strategic benefit to investors. Bloomberg Intelligence said a Permian-focused partner would have made far more sense for Cimarex.“This deal comes as a bit of a surprise and may have a less clear story to tell investors,” Andrew Dittmar, an analyst at Enverus, wrote in a statement. “Some investors may wonder why in-basin opportunities weren’t pursued ahead of a surprising multi-basin deal.”Deal-making in the shale patch has picked up following a rebound in oil prices from their pandemic-era lows. The number of U.S. exploration and production deals announced or closed this year have more than quadrupled to about $26 billion from the same period a year earlier, Bloomberg data show.“We don’t really try to guess how people are going to react,” Cimarex Chief Executive Officer Tom Jorden said in a telephone interview. “This is a long-term move, and we will win our critics over.”By contrast, enthusiasm permeated through markets two weeks ago when Bonanza Creek Energy Inc. and Extraction Oil & Gas Inc. announced an all-stock deal valued at about $1.1 billion that will combine assets in Colorado. The merger -- a low-premium deal -- was favored among shareholders, as it aims to build on the companies’ existing footprint in the area. Shares for Bonanza and Extraction surged as a result.“I realize this one is a little different than many of the others,” Jorden said. “We’re not terribly focused on the short-term here.”Debt-laden oil drillers squeezed by back-to-back oil-market busts have faced the grim prospects of bankruptcy or absorption by a stronger rival. Jorden said the deal -- the largest merger in the U.S. shale patch in almost a year -- was not defensive and will allow the companies to go after bigger acquisitions that they couldn’t have otherwise sought on their own, roughly in the $1 billion to $2 billion range.“This is an offensive move on our part,” Jorden said. “This combined financial powerhouse -- we have great flexibility that neither one of us have individually.”The newly merged energy producer will be renamed and be based in Houston. Jorden will lead the company as chief executive officer, while Cabot’s current CEO Dan Dinges will remain executive chairman.The transaction is expected to be completed in the fourth quarter, subject to the approval of shareholders. The deal will give Cabot shareholders about 49.5% of the combined entity, with Cimarex shareholders holding the rest, the companies said Monday in a statement.Shares of Cabot closed 6.8% lower at $16.60 in New York while Cimarex dropped 7.1% to $66.14, the two biggest declines on the S&P Oil & Gas Exploration and Production Index.(Updates with closing share prices in last 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. Business Reuters 210524 15h02m Exclusive: Deputy U.S Treasury chief sees G7 support for 15%-plus global minimum tax U.S. Deputy Treasury Secretary Wally Adeyemo said he anticipates strong support from the G7 industrial democracies for the Biden Administration's proposed 15%-plus global minimum corporate tax, which in turn should help solidify support in the U.S. Congress for domestic corporate tax legislation. "My sense is that you're going to see a lot of unified support amongst the G7 moving forward," Adeyemo told Reuters on Monday after supportive comments about the Treasury's proposal from France, Germany, Italy and Japan. Business Bloomberg 210524 15h10m Musk Jolts Bitcoin Higher With Push to Burnish Miners’ Image (Bloomberg) -- Elon Musk continued to toy with the price of Bitcoin Monday, taking to Twitter to indicate support for what he says is an effort by miners to make their operations greener.Musk and Michael Saylor, another long-time Bitcoin booster, tweeted that they held a call with major North American miners, including Michael Novogratz’s Galaxy Digital and publicly traded Hut 8 Mining Corp., on Sunday to discuss “energy usage transparency.” Saylor said the group agreed to form the Bitcoin Mining Council “to standardize energy reporting.”The world’s largest cryptocurrency advanced as much as 19% to trade around $39,944 following the tweets. It has slumped to as low as $31,132 on Sunday.The latest was at least the fourth tweet by Musk that has sent Bitcoin prices running one way or another in the past two weeks. The volatility, almost unprecedented in an asset known for its wild swings, has raised concern among Wall Street veterans and regulators alike that Bitcoin might not be ready for the prime time its backers envision.“If the market continues to see wild swings based on Elon Musk tweets, it’s going to be a big set back for this asset class. The fact that it sees such wild swings to the tweets from one person takes away the legitimacy of the asset class,” said Matt Maley, chief market strategist for Miller Tabak + Co.A spokesperson from Galaxy confirmed that a company mining representative participated in the call. Hut 8 Mining tweeted that it also was on the call, and would be part of an effort to “educate the market that sustainable mining is possible and a priority.”The timing is conspicuous. Two weeks ago, Musk roiled the crypto world when he said Tesla Inc. wouldn’t accept Bitcoin for cars because of its energy-intensive proof-of-transaction process. While the creation of a mining industry council might standardize energy-usage reporting, it will take years for many of the largest miners to recalibrate where they source their energy.Pledges to make the industry more green picked up since Musk’s tweet, with several miners joining the Crypto Climate Accord, a private-sector initiative to decarbonize the crypto industry by 2030. The group was inspired by the Paris Climate Agreement.Energy usage -- a long-known problem -- had not seemed to bother Musk as he hyped crypto and earlier this year plowed $1.5 billion of Tesla’s corporate cash into it. Miners use hundreds of computers that run around the clock to verify Bitcoin transactions in exchange for new coins. While some have hooked into energy sources powered by hydroelectric dams or solar and wind farms, much of the power comes from coal-fired plants.Musk’s tweet criticizing the energy usage sent Bitcoin tumbling the most in years, wiping more than $500 billion from its market value. He later tweeted that he still believed in Bitcoin, helping the token recoup some of its losses. The volatility persisted through the weekend before a modest rebound Monday got supercharged by his latest online missive.Saylor, CEO and founder of Microstrategy Inc., announced last week that his enterprise-software company bought more Bitcoin as prices fell, bringing its holdings to approximately 92,079 Bitcoins, which it says were acquired for about $2.25 billion at an average of about $24,450 per token.A host of crypto bulls are lining up to hype the industry as it holds one of its biggest conferences of the year this week. Federal Reserve Governor Lael Brainard noted at the Consensus conference that a big issue for central banks with regard to a digital currency is the impact on the financial system.More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. Business Bloomberg 210524 14h56m Amazon Deal to Acquire MGM to Come as Soon as Tuesday (Bloomberg) -- Amazon.com Inc. is poised to announce an acquisition of the Metro-Goldwyn-Mayer movie studio as soon as Tuesday, according to a person familiar with the matter, marking the e-commerce giant’s biggest push yet into Hollywood.Amazon is in talks to pay almost $9 billion for the business, said the person, who asked not to be identified because the deliberations are private. The discussions -- first reported last week -- could still fall apart, and it’s possible that the price or timing changes.The agreement would bring a vast library of movies and shows to Amazon, which operates the Prime Video streaming service. MGM’s catalog includes the James Bond, Pink Panther, RoboCop and Rocky franchises, as well as films such as “The Silence of the Lambs.”Amazon declined to comment, while MGM didn’t immediately respond to a request for comment.MGM, currently owned by hedge funds including Anchorage Capital Group, has been seen as a takeover target for years, but was never able to close a sale before. The company made a fresh push last year, when it reportedly hired advisers to seek offers.What Bloomberg Intelligence says:“The acquisition could raise Amazon.com’s streaming profile by adding a mountain of proprietary content, strengthening the reach and value of its Prime offering. The deal would be Amazon’s second biggest after Whole Foods.”-- Poonam Goyal, BI retail analystClick here to read the research.The studio also has sought other ways to wring money from its movies. It held talks with Apple Inc. and Netflix Inc. about taking its new James Bond film directly to streaming, people familiar with the matter said last year. The studio opted to stick with a theatrical release for the film, which debuts in the U.S. on Oct. 8.The Wall Street Journal previously reported that an MGM-Amazon deal could come as soon as this week.At roughly $9 billion, the MGM takeover would be Amazon’s biggest acquisition since it agreed to buy Whole Foods in 2017 for $13.7 billion. But it’s not the first sign that the company is willing to spend big on media. The company shelled out about $11 billion on content for its streaming video and music services last year alone. And it agreed to pay about $1 billion a year on NFL rights.(Updates with previous Amazon deals in final 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. Business Bloomberg 210524 14h42m German Landlord Vonovia to Buy Deutsche Wohnen for $23 Billion (Bloomberg) -- German residential property firm Vonovia SE agreed to acquire rival Deutsche Wohnen SE for about 19 billion euros ($23 billion) in the biggest-ever takeover in European real estate.Vonovia will offer 53.03 euros per share in cash for each Deutsche Wohnen share, including a proposed dividend, the companies said in a statement Tuesday, confirming an earlier Bloomberg News report. The bid represents about an 18% premium to Deutsche Wohnen’s Friday closing price.Vonovia is planning a rights issue of as much as 8 billion euros to fund the transaction, expected in the second half of the year.The deal for Deutsche Wohnen ranks as the year’s biggest European takeover, according to data compiled by Bloomberg. It would reshape the country’s property industry, bringing together the two largest residential landlords with control of more than 500,000 apartment units.German property companies have faced rising public pressure over the past few years over high prices, particularly in the nation’s capital. Deutsche Wohnen faced a brief respite after a mid-April decision by the German constitutional court to overturn a controversial rent freeze in Berlin, where the company’s apartments are located.The latest move marks the third time Vonovia has tried to acquire Deutsche Wohnen. A previous attempt failed in February 2016 after Vonovia couldn’t win enough support from Deutsche Wohnen investors. Deutsche Wohnen called that bid hostile and not in the best interests of shareholders.Vonovia brought on advisers early last year to again consider the feasibility of a transaction, Bloomberg News reported at the time. In the end, it decided not to move forward with a bid.The deal shows that Vonovia Chief Executive Officer Rolf Buch was finally able to win over his counterpart at Deutsche Wohnen, Michael Zahn, after the two clashed over price during the failed pursuit about five years ago. Buch has built Bochum-based Vonovia into a European property heavyweight through several acquisitions, including the 2019 purchase of Swedish landlord Hembla AB and a 2016 deal for Austrian developer Conwert Immobilien Invest SE.More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. Business Yahoo Finance 210524 14h42m AT&T CEO John Stankey explains bullish financial targets for new media company Yahoo Finance Live catches up with AT&T CEO John Stankey to discuss his company's major deal with Discovery. Business Reuters 210524 14h32m Lordstown Motors says 2021 production will be half expectations, needs capital DETROIT (Reuters) -Lordstown Motors Corp on Monday said 2021 production of its Endurance truck will be half of prior expectations and that the electric vehicle startup needs additional capital to execute its plans, sending shares down more than 9% in after-hours trading. "We are still in a position to ramp the Endurance, but we do need additional capital to execute on our plans," Chief Executive Steve Burns said in a statement. Lordstown said Endurance production this year will be limited and would be "at best 50%" of the company's prior expectations. Howell date : 210524 14h14m46s Business Reuters 210524 14h05m Walmart blocks emails containing racial slur from being sent through its domain Several Twitter users posted screenshots of emails, from the company's official 'help@walmart.com' address, that contained a slur instead of their names. Walmart said a "bad actor" had created fake Walmart accounts using people's real email addresses and altered first names to fool its automated reply system. The company said it did not know how many fake accounts were created, but that its systems had not been hacked and no customer data was compromised. Business Yahoo Finance 210524 14h05m Stock market news live updates: Stocks gain as technology shares outperform, Bitcoin recovers some losses Stocks pointed to a higher open Monday morning and looked to recover some of last week's losses. Business Bloomberg 210524 14h02m Tech Leads Gains in Stocks as Inflation Fears Ease: Markets Wrap (Bloomberg) -- Technology shares led gains in U.S. stocks as inflation anxiety appeared to be easing. Bitcoin surged after a weekend rout.Ten out of the 11 groups in the S&P 500 rose, while the Nasdaq 100 outperformed major equity benchmarks amid a rally in giants such as Apple Inc., Amazon.com Inc. and Tesla Inc. The world’s largest cryptocurrency soared after plunging as much as 18% on Sunday. Benchmark 10-year Treasury yields and the dollar retreated.While several analysts are warning it may be too early to signal the all-clear on inflation pressures, weaker-than-expected economic data have helped quell investor worries. Federal Reserve Governor Lael Brainard, Atlanta Fed President Raphael Bostic and St. Louis’s James Bullard said they wouldn’t surprised to see bottlenecks and supply shortages push prices up in coming months as the pandemic recedes and pent-up customer demand is unleashed -- but much of those price gains should prove temporary.“The Fed continues its wait-and-see posture, which added wind beneath the tech sector’s wings,” said Chris Larkin, managing director of trading and investing product at E*Trade Financial. “Stocks head into the final full week of the month trying to break a two-week bull-bear stalemate.”For Tom Essaye, a former Merrill Lynch trader who founded “The Sevens Report” newsletter, inflation fears will remain a headwind for stocks until it becomes clear that any potential price pressures won’t last long.“Until then, expect a more volatile market,” he wrote in a note to clients. “But at this point, strong policy support for stocks remains very much in place, and that’s a good thing.”Some other corporate highlights:Virgin Galactic Holdings Inc. soared after the company founded by British billionaire Richard Branson conducted a test flight to space for the first time in more than two years.Beyond Meat Inc. jumped as the plant-based protein producer was upgraded to outperform at Bernstein.Here are some events this week:Bank of Indonesia rate decision Tuesday, Reserve Bank of New Zealand policy decision Wednesday, Bank of Korea rate decision Thursday.CEOs of the largest U.S. banks, including JPMorgan and Goldman Sachs, will testify before lawmakers in the Senate Banking and House Financial Services committees Wednesday.U.S. initial jobless claims, GDP, durable goods, pending home sales on Thursday.These are some of the main moves in markets:StocksThe S&P 500 rose 1% as of 4 p.m. New York timeThe Nasdaq 100 rose 1.7%The Dow Jones Industrial Average rose 0.5%The MSCI World index rose 0.7%CurrenciesThe Bloomberg Dollar Spot Index fell 0.2%The euro rose 0.3% to $1.2216The British pound was little changed at $1.4158The Japanese yen rose 0.2% to 108.77 per dollarBondsThe yield on 10-year Treasuries declined one basis point to 1.61%Germany’s 10-year yield declined one basis point to -0.14%Britain’s 10-year yield declined two basis points to 0.81%CommoditiesWest Texas Intermediate crude rose 3.7% to $66 a barrelGold futures rose 0.4% to $1,886 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. Business Reuters 210524 14h00m Lebanon central bank chief says depositors' money safe Lebanon's central bank chief Riad Salameh said on Monday that depositors' money was safe in the country's banks and they might soon be able to access some of their dollars. Once ranked among the world's more profitable lenders, Lebanon's banks froze customers out of their deposits and blocked them from transferring cash abroad after a financial crisis erupted in late 2019. Lebanese banks for years funnelled funds from a scattered diaspora into state coffers in return for high interest rates. Business Reuters 210524 13h59m EMERGING MARKETS-Chile, Peru lead Latam FX losses; c.bank forex swap buoys Brazil' real * Potential Chinese price curbs weigh on copper exporters * Brazil c.bank to start $12.2 bln FX swaps rollover program * Mexico inflation well above central bank target in early May (Adds comments, bullets; Updates prices throughout) By Susan Mathew and Shreyashi Sanyal May 24 (Reuters) - The currencies of Chile and Peru led declines in Latin America on Monday on concerns over curbs on industrial metals in top consumer China, while Brazil's real recovered from over two-week lows as the central bank intervened. Chile's peso fell 1.2%, while Peru's sol dropped 1.5%. Business Reuters 210524 13h59m Analysis: Google's Starline shows promise and perils of 3D chats Google's Project Starline 3D videoconferencing system, unveiled last week, is well-timed for a post-pandemic world but still has a long way to go in seamlessly marrying the in-person and the virtual, three people who have used the system say. Alphabet's Google and rivals, including Microsoft Corp, Apple Inc and Facebook Inc, all view "mixed reality," as it is sometimes known, as the next big new wave in computing - following smartphones - and all are staking out fresh ground. Starline uses pricey cameras, sensors and cutting-edge screens to generate an illusion of depth, allowing users seated in special booths in different locations to see each other "life-size and in three dimensions," as Google puts it. World Bloomberg 210524 13h50m Jailed Journalist Denies Health Reports in Video: Belarus Update (Bloomberg) -- A video of Belarusian journalist Raman Pratasevich was released late Monday contradicting reports of his deteriorating health, as European Union leaders began debating possible measures against Minsk over the forced landing of a Ryanair Holdings Plc plane.The 27 leaders are considering further sanctions against President Alexander Lukashenko’s administration at a two-day summit in Brussels. German Chancellor Angela Merkel called the incident “without precedent” and said explanations from the Belarus government weren’t credible.Potential measures could include suspending flights over Belarus, banning the country’s national airline from landing at EU airports and blocking ground transit into the bloc, according to a person familiar with the summit preparations.For now, even as Ryanair calls the interception an “act of aviation piracy,” the Irish carrier -- like many other airlines -- is still flying through Belarus’s airspace.Read More: How Belarus Snatched a Dissident Off a Ryanair Plane From GreeceKey Developments:Belarusian journalist Raman Pratasevich removed from plane in MinskU.S., EU and U.K. leaders condemn actions by authorities in BelarusRussia defends Belarus, its closest allyFlights over Belarus airspace continueAll times are Central European Time.Hamas Denies It Sent Bomb Threat to Airport (9:50 p.m.)A Hamas spokesman denied a Belarusian assertion that the organization sent a bomb threat to the Minsk airport, leading to the forced landing of a Ryanair flight on Sunday.“It’s not true at all and Hamas never does such kinds of actions,” Hazem Qassem, a Hamas spokesman in Gaza, told Bloomberg.Earlier on Monday, Artiom Sikorskiy, director of aviation at the Belarus Transportation Ministry, told reporters that an email from people claiming to be Hamas fighters demanded that Israel stop fighting in Gaza and for the EU to withdraw support for Israel.Pratasevich Appears in Video, Says He’s Healthy (9:13 p.m.)Belarusian journalist Raman Pratasevich appeared in a video posted by state-owned media channels late Monday, denying reports that he’s suffering from health issues and is in the hospital.“I continue to cooperate with the investigation and am confessing evidence of organizing mass unrest in Minsk,” he said in the video, adding that his treatment is consistent with the law.Lufthansa Suspends Flights Over Belarus (9:13 p.m.)Lufthansa will suspend operations in Belarusian airspace “for the time being,” a company spokesperson said in an email.Earlier Monday, a Lufthansa flight from Minsk to Frankfurt was held for 2 hours after its scheduled time of departure. The airline had said that it was cooperating with local authorities who were “searching the aircraft again before departure and subjecting the passengers to another security check” after receiving a security alert during boarding.Belarus Denies Reports That Journalist Is in Hospital (8:25 p.m.)Belarusian Interior Ministry spokeswoman Olga Chemodanova denied reports that Pratasevich had been transferred to hospital with serious health problems. Chemodanova said on her Telegram account that Pratasevich hasn’t complained about his health and is still being held in jail in Minsk.Polish Deputy Foreign Minister Pawel Jablonski earlier told TVN24 television that his government has received reports from Pratasevich’s mother that her son has “very serious” health conditions. Jablonski said such information is “very worrisome” given the unexplained deaths among members of Belarussian opposition who have been arrested in recent months.Inessa Olenskaya, Pratasevich’s lawyer, said by phone from Minsk that she couldn’t immediately confirm his condition and didn’t have information about his whereabouts.EU Leaders Go Dark to Keep Talks Secret (8:20 p.m.)Leaders at the summit have been asked not to use electronic devices, including their mobile phones, during the talks on Belarus and on Russia.Summit chair Charles Michel, who heads the European Council, requested the move “to ensure the confidentiality of the discussion,” his spokesman Barend Leyts tweeted.Von Der Leyen Says EU Preparing ‘Very Strong Answer’ (7:32 p.m.)Ursula von der Leyen, head of the EU’s executive arm, pledged that the bloc will ensure “a very strong answer because it is outrageous behavior and Lukashenko and his regime have to understand this will have serious consequences.”On her way into the summit, the chief of the European Commission said leaders will explore “sanctions against individuals that are involved in this hijacking but also sanctions against business and economic entities that are financing this regime. And we are looking into sanctions against the aviation sector in Belarus.”Von der Leyen said a previously prepared 3 billion-euro ($3.7 billion) investment and economic package by the EU “is on hold and frozen until Belarus turns democratic.”Belgian Prime Minister Alexander De Croo told reporters before the meeting that the bloc would act quickly.“This is a flight between two European capitals where European citizens have been used as hostages in an illegal arrest,” he said. “We will propose rapid, swift and severe measures are being taken to make it very clear that something like this is not being accepted.”Merkel Calls for a Ban on Overflights (6:42 p.m.)On her way into the summit, German Chancellor Angela Merkel called for further sanctions against Belarusian officials and a ban on overflights.She called the actions of Belarus authorities “without precedent” and said their explanations were “totally uncredible.”The White House Demands an Immediate Investigation (6:42 p.m.)The White House demanded an international investigation of Belarus’s forced landing of the Ryanair plane, calling it an “affront” by Lukashenko’s government.“This was a shocking act, diverting a flight between two EU member states for the apparent purpose of arresting a journalist,” White House Press Secretary Jen Psaki told reporters on Monday. “It constitutes a brazen affront to international peace and security by the regime. We demand an immediate international transparent and credible investigation of this incident.”She said the U.S. government is “in touch” with allies about the incident, and the U.S. ambassador to Belarus has conveyed the Biden administration’s concerns “directly.” White House National Security Adviser Jake Sullivan also “raised our strong concerns” about Belarus’s action with his Kremlin counterpart. Russia is Belarus’s closest ally.Leaders Begin Arriving at Summit in Brussels (6:15 p.m.)EU leaders are expected to use the following wording in their joint communique on Belarus, according to a senior diplomat familiar with the ongoing drafting of the text:They’ll condemn the forced landing and call for release of Raman Pratasevich and Sofia Sapega.Call for an investigation of this “unprecedented and unacceptable incident”Vow “to adopt additional listings as soon as possible on the basis of the relevant sanctions framework”Call on all EU-based carriers to avoid overflight of BelarusTask their ministers “to adopt the necessary measures to ban overflight of EU airspace by Belarusian Airlines and prevent access to EU airports”Transport Lobby Says Avoiding Belarus Airspace Difficult (6:02 p.m.)It could be complicated for airlines to avoid Belarusian airspace given its location and the fact that there are other restricted flight areas nearby, according to Director General of the International Air Transport Association Willie Walsh. He told Bloomberg Television’s Guy Johnson and Alix Steel that airlines that are still flying over Belarus will have assessed the risk.“We do have to strongly condemn the actions of the government of Belarus,” Walsh said. “What they did on Sunday, intercepting a commercial civil aircraft, clearly put the passengers and crew of that aircraft at risk. Forcing them to divert is unacceptable behavior by any government.”U.K. Summons Belarus Ambassador (6:02 p.m.)The U.K. summoned the Belarusian ambassador to London to explain the forced landing of a commercial plane and arrest of journalist Raman Pratasevich, according to Foreign Secretary Dominic Raab.Raab told Parliament on Monday that the actions by Belarus were an “egregious and extraordinary departure from international law.”“It’s very difficult to believe that this kind of action could’ve been taken without at least the acquiescence of the authorities in Moscow,” Raab said.U.K. Suspends Operating Permit of Belarus Airline (6:02 p.m.)Raab told Parliament the U.K. has suspended the operating permit on the Belarusian airline Belavia. He added that the Civil Aviation Authority has been instructed not to grant any further ad hoc permits for carriers between the U.K. and Belarus, and to request airlines not to venture into Belarusian airspace.Belarus Says Bomb Threat Led to Forced Landing (6:02 p.m.)Belarus grounded the Ryanair flight after receiving an emailed bomb threat signed by people claiming to be Hamas fighters, Artiom Sikorskiy, director of aviation at the country’s Transportation Ministry, said during an online briefing Monday.The message included demands for Israel to stop fighting in Gaza and the EU to withdraw support for Israel, and was composed in English, Sikorskiy said. The bomb was allegedly set to explode over Lithuania’s capital, Vilnius.The anonymous email to the Minsk airport was sent just days after the Israel-Palestine truce sparked celebrations in Gaza.Michel to Push for Concrete EU Measures (4:45 p.m.)European Council President Charles Michel will push for EU leaders to decide on measures against Belarus when they meet for dinner Monday night at the start of a two-day summit.“What happened yesterday is an international scandal. Lives of European civilians were at risk,” Michel said as he arrived at the summit building. “This is not acceptable and this is why we put the debate on sanctions on the table of the European Council.”“We are preparing different options, different possible measures and I hope tonight we can take decisions on that,” he added.Schroders Says Putin Unlikely to Jeopardize Biden Summit (4:45 p.m.)“The developments over the weekend are obviously negative and we will await a European response,” Schroders money manager James Barrineau said by email from New York. “We doubt Putin will want to jeopardize his summit with Biden over this issue, but it does not help the overall tone of the relationship of Russia with Europe.”Schroders has a “very small” position in Belarus, and for now does not expect implications for Russian assets from the forced landing of the Ryanair plane in Minsk, he said.Germany Summons Belarus Ambassador (4:29 p.m.)Germany summoned the Belarus ambassador to the foreign ministry in Berlin Monday evening to explain why the country forced a Ryanair jet to land in Minsk. Foreign Minister Heiko Maas called the previous explanations from Alexander Lukashenko’s regime “absurd and not credible.”“We need clarity about what really happened on board and on the ground yesterday,” Maas said in a statement. “And we need clarity about the well-being of Raman Pratasevich and his partner, who must be released immediately.”Lithuania Urges Its Citizens to Avoid Belarus (4:29 p.m.)The Lithuanian foreign ministry urged its nationals not to travel to Belarus and recommended those currently in the neighboring country to leave, according to a statement. The incident with the Ryanair plane demonstrates “a threat to security and lives of individuals,” the ministry said.Lufthansa Flight Leaves Minsk With all Passengers (3:42 p.m.)Lufthansa flight LH1487 from Minsk to Frankfurt took off at 4:21 p.m. local time, according to FlightRadar24, 2 hours after its scheduled time of departure. The airline had earlier said that it was cooperating with local authorities who were “searching the aircraft again before departure and subjecting the passengers to another security check” after receiving a security alert during boarding.All 51 people schedule to depart on the flight were on board, according to a Lufthansa spokesperson.Tsikhanouskaya Calls for Belarus Sanctions (3:28 p.m.)Exiled Belarus opposition leader Svetlana Tsikhanouskaya called for sanctions against the country during a Monday phone call with EU foreign policy chief Josep Borrell. She is scheduled to hold a call later in the day with members of President Joe Biden’s administration.Tsikhanouskaya also said the whereabouts of the detained journalist Raman Pratasevich are unknown and his lawyer is unable to contact him. The journalist’s girlfriend, who is a Russian citizen, is being held in a Minsk prison and has been refused assistance from the Russian consulate.Lufthansa Flight From Minsk Delayed by Threat (3:02 p.m.)Lufthansa flight LH1487 from Minsk to Frankfurt was delayed following a “security alert,” the German airline said in a statement. The Minsk airport said on its Telegram channel that it had received an anonymous email about a planned “terrorist attack.” Lufthansa said 51 passengers, including five crew members, were on board the plane.“We are cooperating with the authorities, who are searching the aircraft again before departure and subjecting the passengers to another security check,” Lufthansa said on Monday. The search includes unloading all suitcases and cargo.Czech Premier Says EU Must Be Tough (2:50 p.m.)The proposals for discussion about EU’s response include banning Belarus airlines from landing in the EU or suspending flights over Belarus’s airspace, Czech Prime Minister Andrej Babis said. He said that according to available information, there were four Russian citizens on the Raynair flight “who probably had a lot to do with this unbelievable act.”“Europe’s response must be tough,” Babis told reporters before departing to EU summit.Passenger Number Confusion (2:40 p.m.)Lithuania’s criminal police said on Monday that 121 of the 126 passengers who left Athens on the flight arrived in Vilnius. On Sunday, both Greece and Lithuania said 171 passengers and crew were on the flight, which Lithuania said Monday was the number of reservations. There was also confusion over infant passengers, who didn’t require tickets, and some boarding passes that weren’t digital. Ryanair hasn’t confirmed the numbers.Lithuania’s transport member also said the country would ban flights to and from Belarus airspace starting at 3 a.m. on Tuesday. The ban will affect 26 flights a day. Lithuania’s neighbor Poland will propose at the EU summit on Monday that all flights between the bloc and Belarus be halted.Poland Wants to Halt All Flights Between EU and Belarus (1:55 p.m.)Poland has come as one of the strongest voices demanding firm action. At the meeting of leaders in Brussels Prime Minister Mateusz Morawiecki will propose halting all flights between EU and Belarus.Belarusian Activists Ask EU For Help (1:50 p.m.)Holding a placard reading “SOS,” Belarusian activists in Poland appealed to the EU for help. Standing in front of Belarus embassy in Warsaw, Nexta founder and blogger Stsiapan Putsila said he’s received “more than a thousand threats” since Sunday. “We can’t stay silent,” said Jana Shostak, another activist.Police Revise Passenger Numbers (1:40 p.m.)According to Lithuania’s criminal police, 121 of the 126 passengers who left Athens on the flight arrived in Vilnius. The captain of the airliner consulted with Ryanair’s management before deciding to divert to Minsk. On Sunday, both Greece and Lithuania said 171 passengers and crew were on the flight.Poland Increases Protection of Activists (1:30 p.m.)Polish Deputy Foreign Minister Pawel Jablonski said on Monday his country was setting up “special protection” for activists on Polish territory who “could be in the cross-hairs of Belarusian or Russian services.”Raman Pratasevich, arrested after the Ryanair plane was diverted to Minsk, worked for Nexta, a media group registered and run out of Warsaw.Jablonski urged activists to avoid contact with Belarus as “we can’t tell what the regime is capable of.”France Says All Options Being Considered (1:20 p.m.)“Nothing is off the table,” a French diplomat told journalists when asked about possible punitive measures against Belarus.In addition to sanctions targeting Belarusian officials and companies, the EU is mulling the suspension of overflights of European airlines over Belarus, a landing ban for flag carrier Belavia in European airports, and the suspension of transits (including land) from Belarus to the EU, the French diplomat added, asking not to be named in line with policy.Ryanair Is Flying Over Belarus Today (1:10 p.m.)Flight FR3340 from Paphos, Cyprus, is scheduled to land at Talinn, Estonia, at 2:30 p.m. local time. The route takes the plane directly across Belarus territory, highlighting the mixed messaging coming out of Europe in response to Sunday’s incident.The airspace over Belarus is part of a major route for flights between Asia and Europe, with some carriers including Deutsche Lufthansa AG and cargo hauler FedEx Corp. continuing to fly over the country on Monday. Airlines have routed traffic over Belarus to avoid the restive eastern Ukraine region that’s been off-limits since a Malaysian Airlines Boeing 777 jet was shot down there in 2014, killing 298 people.Poland Orders Probe (12:20 p.m.)Poland’s state prosecutor said it has ordered an investigation into the landing because the Ryanair jet was registered in Poland and therefore falls under Polish jurisdiction.Estonia to Raise Issue at UN Security Council (12:00 p.m.)Estonia plans to raise the Belarus issue at the Security Council and has already started consultations to have a discussion, public broadcaster ERR cited the country’s foreign minister, Eva-Maria Liimets, as saying.Ryanair Cooperating with EU, NATO (11:50 a.m.)The diversion of the Ryanair plane to Minsk on Sunday was an “act of aviation piracy,” the airline said in a statement today.Ryanair said it was “fully cooperating” with the EU safety and security agencies as well as NATO, and wouldn’t comment further due to security reasons.Kremlin Says U.S.-Russia Summit Plans Not Affected (11:45 a.m.)Tensions between Moscow’s closest ally and the West over Minsk’s forcing of a Ryanair jet to land won’t affect Russia’s efforts to arrange a summit meeting between President Vladimir Putin and his U.S. Counterpart, Joe Biden, Kremlin spokesman Dmitry Peskov said.“I wouldn’t combine all this into a single system,” Peskov told reporters on a conference call. “These are different things, after all.”Peskov declined to comment on the details of the case, including on whether Belarus gave Russia advance warning of its decision to force the plane to land or whether Moscow’s agents were involved. “Our special services are in the closest possible contact,” he said, adding that he doesn’t have detailed information about the Ryanair jet.Russia Calls Western Reaction ‘Shocking’ (11:15 a.m.)Western countries are showing double standards, according to Russian Foreign Ministry spokeswoman Maria Zakharova. “It’s shocking that the West is calling the incident in Belarus’s airspace ‘shocking,’” she wrote in a Facebook post.Zakharova cited past examples of what she said were western governments forcing planes to land, such as a 2013 episode when the plane of Bolivian President Evo Morales had to land in Austria as the U.S. searched for Edward Snowden, as evidence that the U.S. and its allies use the same tactics.U.K. Joins Calls for Sanctions (10:40 a.m.)Foreign Secretary Dominic Raab added to the voices calling for further sanctions against Belarus and the immediate release of Protasevich. In a statement, Raab condemned the arrest, adding “Mr Lukashenko must be held to account for his outlandish actions.”Russian Senator Defends Belarus (10:35 a.m.)“Formally, there was a bomb threat, so everything was done properly,” Vladimir Dzhabarov, first deputy chairman of the International Affairs committee in the upper house of parliament, said in a phone interview Monday. “I don’t see anything unusual or unacceptable in the actions of the Belarusian authorities.”The arrest of Raman Pratasevich, the journalist, was justified, he said. “This person was sitting abroad and criticizing his homeland,” he said. “It’s a warning to Tsikhanouskaya,” he said, referring to exiled opposition leader Sviatlana Tsikhanouskaya.EU Mulls Sanction Options (10:25 a.m.)Of the possible options for EU action, sanctions against individuals and entities would likely be the simplest, according to a senior official close to the European talks.Other options, such as the suspension all flights by EU airlines over Belarus and the suspension of all transit -- including ground travel -- between Belarus and the EU, would trigger increased costs for European companies, the official said.‘State-Sponsored Hijacking’ (10:10 a.m.)“This was a case of state-sponsored hijacking,” Ryanair CEO Michael O’Leary said in comments broadcast by RTE Radio. The airline has to do a “detailed debrief today with the NATO and EU authorities” after the incident, which he said saw passengers and crew held under armed guard.It appears the intent of Belarusian authorities was to remove a journalist and his traveling companion, O’Leary said. “We believe there was also some KGB agents offloaded off the aircraft as well,” he said.Irish Minister Calls for Tough EU Response (10:00 a.m.)“This was effectively aviation piracy, state sponsored,” Irish foreign minister Simon Coveney told RTE Radio. The EU’s response “has to be clear, tough, and needs to happen quickly,” he said.Belarus’s Bonds Tumble (9:30 a.m.)Worries over potential sanctions are scaring away bond investors. Belarus’s dollar bonds due 2031 tanked early on Monday, pushing yields up 23 basis points to a one-month high of 7.48%. The bonds traded at a yield of above 8% in August after authorities cracked down on protesters following Lukashenko’s claim to a landslide election victory.Flights Avoid Belarus (9:25 a.m.)Wizz Air Holdings Plc, Eastern Europe’s biggest discount carrier, said it has rerouted a service from the Ukrainian capital Kyiv to Tallinn in Estonia to avoid Belarusian airspace. A spokesman said in an email that the Budapest-based company is “continuously monitoring and evaluating the situation.”Latvia’s national carrier Airbaltic has decided to avoid Belarusian air space “for the time being,” Latvian Transport Minister Talis Linkaits said in interview with Latvijas Radio.Poland to Call for More Sanctions Against Lukashenko (9:22 a.m.)Belarus’s neighbor, Poland, will propose new sanctions against Lukashenko’s government at Monday’s EU meeting, according to Deputy Foreign Minister Pawel Jablonski. He declined to specify the type of measures Warsaw will seek, saying the government wants to consult with EU partners first.(An earlier version of this story corrected the spelling of “Minsk” in first bullet point)More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. Business Yahoo Finance 210524 13h45m Jobs are back—but pay isn’t Pay for open jobs is lower than it was before the coronavirus pandemic, suggesting there may be no labor shortage at all. Howell date : 210524 13h44m09s Business Yahoo Finance 210524 13h33m St. Louis Fed's Bullard: Most cryptocurrencies are 'worthless' St. Louis Fed President James Bullard told Yahoo Finance that among the thousands of private cryptocurrencies out there, 'most of them are worthless.' Business Bloomberg 210524 13h31m Oil Surges With Iran Saying Differences Remain on Sanctions Deal (Bloomberg) -- Oil climbed the most in a month after Iran said that gaps remain in negotiations aimed at reaching a deal to end U.S. sanctions on its crude.Futures rose 3.9% in New York on Monday with added support from a weaker dollar, which makes commodities priced in the currency more attractive, and a rally in U.S. equities. Iran said there are still differences around the timing of when countries will return to compliance with the original 2015 nuclear agreement, allaying some concern about a rapid ramp-up in the Persian Gulf nation’s output.While the market is anticipating the Islamic Republic’s supply will pick up again by late summer, the demand recovery will be strong enough to absorb it, Goldman Sachs Group Inc. said. The bank expects Brent futures to hit $80 a barrel in the next few months.“Seasonally we’re coming into a strong demand period, overwhelming concerns on supply,” said Peter McNally, global head for industrials, materials and energy at Third Bridge. With the U.S. continuing to reopen, air travel picking up and Europe lifting pandemic-driven lockdowns, “it’s more than likely those barrels can get absorbed.”Talks between Iran and world powers will continue in Vienna this week to resolve outstanding issues. As part of that process, Iran extended a United Nations nuclear inspections agreement, buying diplomats time to revive the landmark deal that would usher in an official return of the Persian Gulf nation to world oil markets.“Statements over the weekend in the time between the expiration of the old monitoring agreement and the signing of the new deal made it clear that the sense of optimism (over a deal) that was pressuring prices last week was probably overdone,” Bob Yawger, head of the futures division at Mizuho Securities, said in a note. “There is still a lot of work that needs to be done before a final agreement is finished.”Global benchmark crude has been largely stuck between $60 and $70 a barrel since March, with concern about returning output and Covid-19 flare-ups counterbalanced by the demand recovery underway in some key markets. Virus cases in the U.S. were below 30,000 every day last week for the first time since June, and drivers are taking to the road again in parts of Europe, helping boost demand in the region.The discount for U.S. benchmark crude futures against Brent shrank on Monday to its narrowest since the end of November on a settlement basis. The smaller that discount becomes, the less attractive U.S. crude exports are to foreign buyers.Ahead of any agreement on a nuclear deal, Iran has already found buyers for its oil exports, notably China. Those ties may become even stronger, with the leaders of both countries speaking on the phone about Iran expanding its oil sales to China.Still, Goldman isn’t alone in its view on the impact of returning Iranian supply. Citigroup Inc. said it expects only a partial return of the country’s barrels initially. The bank still sees oil hitting the mid-$70s in the third quarter, but said prices could retreat thereafter.Physical markets continue to get a boost from a raft of buying from refiners in Asia. Japan’s Fuji Oil became the latest company to buy Middle Eastern crude on Monday, after a spate of bullish interest last week.More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. Business Bloomberg 210524 13h24m Gold Holds Near Four-Month High as Fund Buying, ETFs Buoy Demand (Bloomberg) -- Gold steadied near the highest in more than four months amid signs that investors are turning more bullish on the precious metal.Hedge funds and other large speculators raised their net-long position in U.S. gold futures and options to the highest since January, government data showed Friday. Holdings in exchange-traded funds backed by bullion have climbed in May, following three months of outflows. Declines in the dollar and bond yields on Monday also helped gold.Gold has posted three straight weekly gains, bringing it closer to wiping out losses for the year after prices slumped in the first three months. The metal has advanced on wobbles in the greenback on Treasury yields, and demand for bullion as a store of value is rising as inflation worries threaten to undercut economic growth. Investors were also weighing the extreme volatility in Bitcoin, which may have lent an added pillar of support.“Gold prices are trending higher as weakness in cryptocurrencies and rising demand for inflation-hedge assets buoyed the appeal of the precious metal,” said Margaret Yang, a strategist at DailyFX. “Recent ETF data showed that investors are stockpiling the yellow metal for the first time since January, underscoring rising appetite.”Spot gold rose 0.1% to $1,883.03 an ounce by 3:01 p.m. in New York, after reaching $1,890.13 last week, the highest since Jan. 8. Futures for August delivery on the Comex rose 0.4% to settle at $1,886.70. Silver and platinum also advanced, while palladium fell.“The recent move lower in real rates, accompanied by further U.S. dollar weakness, have been the key drivers of gold’s rebound,” Morgan Stanley analysts led by Susan Bates said in a note on Monday. Still, “we continue to see a risk of a sharper sell-off similar to that seen in 2013 once tapering begins in 2022, but in our base case we assume price remains supported in the $1,600s per ounce until the first Fed rate hike.”Former U.S. Treasury Secretary Lawrence Summers said cryptocurrencies could stay a feature of global markets as something akin to “digital gold,” even if their importance in economies will remain limited. Cryptocurrencies offered an alternative to gold for those seeking an asset “separate and apart from the day-to-day workings of governments,” he said.On Monday, Bitcoin rebounded from its roller-coaster weekend, with prices on track for the biggest gain in more than three months.More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. Business Yahoo Finance Video 210524 13h17m The two biggest risks for equities Mark Mahaney, Evercore ISI Senior Managing Director & Head of Internet Research, joins Yahoo Finance Live to discuss the reopening trade, the streaming space, and outlook on the market. Business Bloomberg 210524 13h17m Acore Capital Backs Graduate Hotels as Pandemic Doom Lifts (Bloomberg) -- Acore Capital is wagering on a post-pandemic recovery by making a preferred-equity investment of around $200 million in Graduate Hotels, a lodging brand focused on serving college campuses, according to people with knowledge of the matter.The value of the company’s real estate assets exceeds $2.1 billion, one of the people said.Graduate Hotels has 32 locations in the U.S. and the U.K., with another two opening soon, according to its website. The boutique properties cater to prospective students, returning alumni and other campus visitors.AJ Capital Partners founded Graduate Hotels in 2014. It tapped Newmark for advice as it sought a strategic partner to supply growth capital and pay down debt, Bloomberg News reported in February.An Acore representative declined to comment and AJ Capital didn’t immediately respond to a request for comment.Acore in February raised $1 billion to make investments in North American hotels and said at the time it would focus on senior loans, mezzanine debt and preferred equity.Last year was the worst on record for the U.S. hospitality industry, with occupancy rates at 42%, according to lodging data firm STR. Room demand was better than expected in the first three months of 2021, leading STR to upgrade its forecast for a lodging recovery.More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. World Bloomberg 210524 13h14m Merkel Says Minsk’s Explanations Aren’t Credible: Belarus Update (Bloomberg) -- European Union leaders are debating possible measures against Belarus, a day after the nation forced the landing of a Ryanair Holdings Plc plane and arrested a journalist on board.The 27 leaders are considering further sanctions against President Alexander Lukashenko’s administration at the two-day summit in Brussels, which got underway at 7 p.m. German Chancellor Angela Merkel called the incident “without precedent” and said explanations weren’t credible.Potential measures could also include suspending flights over Belarus, banning the country’s national airline from landing at EU airports and blocking ground transit into the bloc from Belarus, according to a person familiar with the summit preparations.For now, even as Ryanair calls the interception an “act of aviation piracy,” the Irish carrier -- like many other airlines -- is still flying through Belarus’s airspace.Read More: How Belarus Snatched a Dissident Off a Ryanair Plane From GreeceKey Developments:Belarusian journalist Raman Pratasevich removed from plane in MinskU.S., EU and U.K. leaders condemn actions by authorities in BelarusRussia defends Belarus, its closest allyFlights over Belarus airspace continueAll times are Central European Time.Pratasevich Appears in Video, Says He’s Healthy (9:13 p.m.)Belarusian journalist Raman Pratasevich appeared in a video posted by state-owned media channels late Monday, denying reports that he’s suffering from health issues and is in the hospital.“I continue to cooperate with the investigation and am confessing evidence of organizing mass unrest in Minsk,” he said in the video, adding that his treatment is consistent with the law.Lufthansa Suspends Flights Over Belarus (9:13 p.m.)Lufthansa will suspend operations in Belarusian airspace “for the time being,” a company spokesperson said in an email.Earlier Monday, a Lufthansa flight from Minsk to Frankfurt was held for 2 hours after its scheduled time of departure. The airline had said that it was cooperating with local authorities who were “searching the aircraft again before departure and subjecting the passengers to another security check” after receiving a security alert during boarding.Belarus Denies Reports That Journalist Is in Hospital (8:25 p.m.)Belarusian Interior Ministry spokeswoman Olga Chemodanova denied reports that Pratasevich had been transferred to hospital with serious health problems. Chemodanova said on her Telegram account that Pratasevich hasn’t complained about his health and is still being held in jail in Minsk.Polish Deputy Foreign Minister Pawel Jablonski earlier told TVN24 television that his government has received reports from Pratasevich’s mother that her son has “very serious” health conditions. Jablonski said such information is “very worrisome” given the unexplained deaths among members of Belarussian opposition who have been arrested in recent months.Inessa Olenskaya, Pratasevich’s lawyer, said by phone from Minsk that she couldn’t immediately confirm his condition and didn’t have information about his whereabouts.EU Leaders Go Dark to Keep Talks Secret (8:20 p.m.)Leaders at the summit have been asked not to use electronic devices, including their mobile phones, during the talks on Belarus and on Russia.Summit chair Charles Michel, who heads the European Council, requested the move “to ensure the confidentiality of the discussion,” his spokesman Barend Leyts tweeted.Von Der Leyen Says EU Preparing ‘Very Strong Answer’ (7:32 p.m.)Ursula von der Leyen, head of the EU’s executive arm, pledged that the bloc will ensure “a very strong answer because it is outrageous behavior and Lukashenko and his regime have to understand this will have serious consequences.”On her way into the summit, the chief of the European Commission said leaders will explore “sanctions against individuals that are involved in this hijacking but also sanctions against business and economic entities that are financing this regime. And we are looking into sanctions against the aviation sector in Belarus.”Von der Leyen said a previously prepared 3 billion-euro ($3.7 billion) investment and economic package by the EU “is on hold and frozen until Belarus turns democratic.”Belgian Prime Minister Alexander De Croo told reporters before the meeting that the bloc would act quickly.“This is a flight between two European capitals where European citizens have been used as hostages in an illegal arrest,” he said. “We will propose rapid, swift and severe measures are being taken to make it very clear that something like this is not being accepted.”Merkel Calls for a Ban on Overflights (6:42 p.m.)On her way into the summit, German Chancellor Angela Merkel called for further sanctions against Belarusian officials and a ban on overflights.She called the actions of Belarus authorities “without precedent” and said their explanations were “totally uncredible.”The White House Demands an Immediate Investigation (6:42 p.m.)The White House demanded an international investigation of Belarus’s forced landing of the Ryanair plane, calling it an “affront” by Lukashenko’s government.“This was a shocking act, diverting a flight between two EU member states for the apparent purpose of arresting a journalist,” White House Press Secretary Jen Psaki told reporters on Monday. “It constitutes a brazen affront to international peace and security by the regime. We demand an immediate international transparent and credible investigation of this incident.”She said the U.S. government is “in touch” with allies about the incident, and the U.S. ambassador to Belarus has conveyed the Biden administration’s concerns “directly.” White House National Security Adviser Jake Sullivan also “raised our strong concerns” about Belarus’s action with his Kremlin counterpart. Russia is Belarus’s closest ally.Leaders Begin Arriving at Summit in Brussels (6:15 p.m.)EU leaders are expected to use the following wording in their joint communique on Belarus, according to a senior diplomat familiar with the ongoing drafting of the text:They’ll condemn the forced landing and call for release of Raman Pratasevich and Sofia Sapega.Call for an investigation of this “unprecedented and unacceptable incident”Vow “to adopt additional listings as soon as possible on the basis of the relevant sanctions framework”Call on all EU-based carriers to avoid overflight of BelarusTask their ministers “to adopt the necessary measures to ban overflight of EU airspace by Belarusian Airlines and prevent access to EU airports”Transport Lobby Says Avoiding Belarus Airspace Difficult (6:02 p.m.)It could be complicated for airlines to avoid Belarusian airspace given its location and the fact that there are other restricted flight areas nearby, according to Director General of the International Air Transport Association Willie Walsh. He told Bloomberg Television’s Guy Johnson and Alix Steel that airlines that are still flying over Belarus will have assessed the risk.“We do have to strongly condemn the actions of the government of Belarus,” Walsh said. “What they did on Sunday, intercepting a commercial civil aircraft, clearly put the passengers and crew of that aircraft at risk. Forcing them to divert is unacceptable behavior by any government.”U.K. Summons Belarus Ambassador (6:02 p.m.)The U.K. summoned the Belarusian ambassador to London to explain the forced landing of a commercial plane and arrest of journalist Raman Pratasevich, according to Foreign Secretary Dominic Raab.Raab told Parliament on Monday that the actions by Belarus were an “egregious and extraordinary departure from international law.”“It’s very difficult to believe that this kind of action could’ve been taken without at least the acquiescence of the authorities in Moscow,” Raab said.U.K. Suspends Operating Permit of Belarus Airline (6:02 p.m.)Raab told Parliament the U.K. has suspended the operating permit on the Belarusian airline Belavia. He added that the Civil Aviation Authority has been instructed not to grant any further ad hoc permits for carriers between the U.K. and Belarus, and to request airlines not to venture into Belarusian airspace.Belarus Says Bomb Threat Led to Forced Landing (6:02 p.m.)Belarus grounded the Ryanair flight after receiving an emailed bomb threat signed by people claiming to be Hamas fighters, Artiom Sikorskiy, director of aviation at the country’s Transportation Ministry, said during an online briefing Monday.The message included demands for Israel to stop fighting in Gaza and the EU to withdraw support for Israel, and was composed in English, Sikorskiy said. The bomb was allegedly set to explode over Lithuania’s capital, Vilnius.The anonymous email to the Minsk airport was sent just days after the Israel-Palestine truce sparked celebrations in Gaza.Michel to Push for Concrete EU Measures (4:45 p.m.)European Council President Charles Michel will push for EU leaders to decide on measures against Belarus when they meet for dinner Monday night at the start of a two-day summit.“What happened yesterday is an international scandal. Lives of European civilians were at risk,” Michel said as he arrived at the summit building. “This is not acceptable and this is why we put the debate on sanctions on the table of the European Council.”“We are preparing different options, different possible measures and I hope tonight we can take decisions on that,” he added.Schroders Says Putin Unlikely to Jeopardize Biden Summit (4:45 p.m.)“The developments over the weekend are obviously negative and we will await a European response,” Schroders money manager James Barrineau said by email from New York. “We doubt Putin will want to jeopardize his summit with Biden over this issue, but it does not help the overall tone of the relationship of Russia with Europe.”Schroders has a “very small” position in Belarus, and for now does not expect implications for Russian assets from the forced landing of the Ryanair plane in Minsk, he said.Germany Summons Belarus Ambassador (4:29 p.m.)Germany summoned the Belarus ambassador to the foreign ministry in Berlin Monday evening to explain why the country forced a Ryanair jet to land in Minsk. Foreign Minister Heiko Maas called the previous explanations from Alexander Lukashenko’s regime “absurd and not credible.”“We need clarity about what really happened on board and on the ground yesterday,” Maas said in a statement. “And we need clarity about the well-being of Raman Pratasevich and his partner, who must be released immediately.”Lithuania Urges Its Citizens to Avoid Belarus (4:29 p.m.)The Lithuanian foreign ministry urged its nationals not to travel to Belarus and recommended those currently in the neighboring country to leave, according to a statement. The incident with the Ryanair plane demonstrates “a threat to security and lives of individuals,” the ministry said.Lufthansa Flight Leaves Minsk With all Passengers (3:42 p.m.)Lufthansa flight LH1487 from Minsk to Frankfurt took off at 4:21 p.m. local time, according to FlightRadar24, 2 hours after its scheduled time of departure. The airline had earlier said that it was cooperating with local authorities who were “searching the aircraft again before departure and subjecting the passengers to another security check” after receiving a security alert during boarding.All 51 people schedule to depart on the flight were on board, according to a Lufthansa spokesperson.Tsikhanouskaya Calls for Belarus Sanctions (3:28 p.m.)Exiled Belarus opposition leader Svetlana Tsikhanouskaya called for sanctions against the country during a Monday phone call with EU foreign policy chief Josep Borrell. She is scheduled to hold a call later in the day with members of President Joe Biden’s administration.Tsikhanouskaya also said the whereabouts of the detained journalist Raman Pratasevich are unknown and his lawyer is unable to contact him. The journalist’s girlfriend, who is a Russian citizen, is being held in a Minsk prison and has been refused assistance from the Russian consulate.Lufthansa Flight From Minsk Delayed by Threat (3:02 p.m.)Lufthansa flight LH1487 from Minsk to Frankfurt was delayed following a “security alert,” the German airline said in a statement. The Minsk airport said on its Telegram channel that it had received an anonymous email about a planned “terrorist attack.” Lufthansa said 51 passengers, including five crew members, were on board the plane.“We are cooperating with the authorities, who are searching the aircraft again before departure and subjecting the passengers to another security check,” Lufthansa said on Monday. The search includes unloading all suitcases and cargo.Czech Premier Says EU Must Be Tough (2:50 p.m.)The proposals for discussion about EU’s response include banning Belarus airlines from landing in the EU or suspending flights over Belarus’s airspace, Czech Prime Minister Andrej Babis said. He said that according to available information, there were four Russian citizens on the Raynair flight “who probably had a lot to do with this unbelievable act.”“Europe’s response must be tough,” Babis told reporters before departing to EU summit.Passenger Number Confusion (2:40 p.m.)Lithuania’s criminal police said on Monday that 121 of the 126 passengers who left Athens on the flight arrived in Vilnius. On Sunday, both Greece and Lithuania said 171 passengers and crew were on the flight, which Lithuania said Monday was the number of reservations. There was also confusion over infant passengers, who didn’t require tickets, and some boarding passes that weren’t digital. Ryanair hasn’t confirmed the numbers.Lithuania’s transport member also said the country would ban flights to and from Belarus airspace starting at 3 a.m. on Tuesday. The ban will affect 26 flights a day. Lithuania’s neighbor Poland will propose at the EU summit on Monday that all flights between the bloc and Belarus be halted.Poland Wants to Halt All Flights Between EU and Belarus (1:55 p.m.)Poland has come as one of the strongest voices demanding firm action. At the meeting of leaders in Brussels Prime Minister Mateusz Morawiecki will propose halting all flights between EU and Belarus.Belarusian Activists Ask EU For Help (1:50 p.m.)Holding a placard reading “SOS,” Belarusian activists in Poland appealed to the EU for help. Standing in front of Belarus embassy in Warsaw, Nexta founder and blogger Stsiapan Putsila said he’s received “more than a thousand threats” since Sunday. “We can’t stay silent,” said Jana Shostak, another activist.Police Revise Passenger Numbers (1:40 p.m.)According to Lithuania’s criminal police, 121 of the 126 passengers who left Athens on the flight arrived in Vilnius. The captain of the airliner consulted with Ryanair’s management before deciding to divert to Minsk. On Sunday, both Greece and Lithuania said 171 passengers and crew were on the flight.Poland Increases Protection of Activists (1:30 p.m.)Polish Deputy Foreign Minister Pawel Jablonski said on Monday his country was setting up “special protection” for activists on Polish territory who “could be in the cross-hairs of Belarusian or Russian services.”Raman Pratasevich, arrested after the Ryanair plane was diverted to Minsk, worked for Nexta, a media group registered and run out of Warsaw.Jablonski urged activists to avoid contact with Belarus as “we can’t tell what the regime is capable of.”France Says All Options Being Considered (1:20 p.m.)“Nothing is off the table,” a French diplomat told journalists when asked about possible punitive measures against Belarus.In addition to sanctions targeting Belarusian officials and companies, the EU is mulling the suspension of overflights of European airlines over Belarus, a landing ban for flag carrier Belavia in European airports, and the suspension of transits (including land) from Belarus to the EU, the French diplomat added, asking not to be named in line with policy.Ryanair Is Flying Over Belarus Today (1:10 p.m.)Flight FR3340 from Paphos, Cyprus, is scheduled to land at Talinn, Estonia, at 2:30 p.m. local time. The route takes the plane directly across Belarus territory, highlighting the mixed messaging coming out of Europe in response to Sunday’s incident.The airspace over Belarus is part of a major route for flights between Asia and Europe, with some carriers including Deutsche Lufthansa AG and cargo hauler FedEx Corp. continuing to fly over the country on Monday. Airlines have routed traffic over Belarus to avoid the restive eastern Ukraine region that’s been off-limits since a Malaysian Airlines Boeing 777 jet was shot down there in 2014, killing 298 people.Poland Orders Probe (12:20 p.m.)Poland’s state prosecutor said it has ordered an investigation into the landing because the Ryanair jet was registered in Poland and therefore falls under Polish jurisdiction.Estonia to Raise Issue at UN Security Council (12:00 p.m.)Estonia plans to raise the Belarus issue at the Security Council and has already started consultations to have a discussion, public broadcaster ERR cited the country’s foreign minister, Eva-Maria Liimets, as saying.Ryanair Cooperating with EU, NATO (11:50 a.m.)The diversion of the Ryanair plane to Minsk on Sunday was an “act of aviation piracy,” the airline said in a statement today.Ryanair said it was “fully cooperating” with the EU safety and security agencies as well as NATO, and wouldn’t comment further due to security reasons.Kremlin Says U.S.-Russia Summit Plans Not Affected (11:45 a.m.)Tensions between Moscow’s closest ally and the West over Minsk’s forcing of a Ryanair jet to land won’t affect Russia’s efforts to arrange a summit meeting between President Vladimir Putin and his U.S. Counterpart, Joe Biden, Kremlin spokesman Dmitry Peskov said.“I wouldn’t combine all this into a single system,” Peskov told reporters on a conference call. “These are different things, after all.”Peskov declined to comment on the details of the case, including on whether Belarus gave Russia advance warning of its decision to force the plane to land or whether Moscow’s agents were involved. “Our special services are in the closest possible contact,” he said, adding that he doesn’t have detailed information about the Ryanair jet.Russia Calls Western Reaction ‘Shocking’ (11:15 a.m.)Western countries are showing double standards, according to Russian Foreign Ministry spokeswoman Maria Zakharova. “It’s shocking that the West is calling the incident in Belarus’s airspace ‘shocking,’” she wrote in a Facebook post.Zakharova cited past examples of what she said were western governments forcing planes to land, such as a 2013 episode when the plane of Bolivian President Evo Morales had to land in Austria as the U.S. searched for Edward Snowden, as evidence that the U.S. and its allies use the same tactics.U.K. Joins Calls for Sanctions (10:40 a.m.)Foreign Secretary Dominic Raab added to the voices calling for further sanctions against Belarus and the immediate release of Protasevich. In a statement, Raab condemned the arrest, adding “Mr Lukashenko must be held to account for his outlandish actions.”Russian Senator Defends Belarus (10:35 a.m.)“Formally, there was a bomb threat, so everything was done properly,” Vladimir Dzhabarov, first deputy chairman of the International Affairs committee in the upper house of parliament, said in a phone interview Monday. “I don’t see anything unusual or unacceptable in the actions of the Belarusian authorities.”The arrest of Raman Pratasevich, the journalist, was justified, he said. “This person was sitting abroad and criticizing his homeland,” he said. “It’s a warning to Tsikhanouskaya,” he said, referring to exiled opposition leader Sviatlana Tsikhanouskaya.EU Mulls Sanction Options (10:25 a.m.)Of the possible options for EU action, sanctions against individuals and entities would likely be the simplest, according to a senior official close to the European talks.Other options, such as the suspension all flights by EU airlines over Belarus and the suspension of all transit -- including ground travel -- between Belarus and the EU, would trigger increased costs for European companies, the official said.‘State-Sponsored Hijacking’ (10:10 a.m.)“This was a case of state-sponsored hijacking,” Ryanair CEO Michael O’Leary said in comments broadcast by RTE Radio. The airline has to do a “detailed debrief today with the NATO and EU authorities” after the incident, which he said saw passengers and crew held under armed guard.It appears the intent of Belarusian authorities was to remove a journalist and his traveling companion, O’Leary said. “We believe there was also some KGB agents offloaded off the aircraft as well,” he said.Irish Minister Calls for Tough EU Response (10:00 a.m.)“This was effectively aviation piracy, state sponsored,” Irish foreign minister Simon Coveney told RTE Radio. The EU’s response “has to be clear, tough, and needs to happen quickly,” he said.Belarus’s Bonds Tumble (9:30 a.m.)Worries over potential sanctions are scaring away bond investors. Belarus’s dollar bonds due 2031 tanked early on Monday, pushing yields up 23 basis points to a one-month high of 7.48%. The bonds traded at a yield of above 8% in August after authorities cracked down on protesters following Lukashenko’s claim to a landslide election victory.Flights Avoid Belarus (9:25 a.m.)Wizz Air Holdings Plc, Eastern Europe’s biggest discount carrier, said it has rerouted a service from the Ukrainian capital Kyiv to Tallinn in Estonia to avoid Belarusian airspace. A spokesman said in an email that the Budapest-based company is “continuously monitoring and evaluating the situation.”Latvia’s national carrier Airbaltic has decided to avoid Belarusian air space “for the time being,” Latvian Transport Minister Talis Linkaits said in interview with Latvijas Radio.Poland to Call for More Sanctions Against Lukashenko (9:22 a.m.)Belarus’s neighbor, Poland, will propose new sanctions against Lukashenko’s government at Monday’s EU meeting, according to Deputy Foreign Minister Pawel Jablonski. He declined to specify the type of measures Warsaw will seek, saying the government wants to consult with EU partners first.(An earlier version of this story corrected the spelling of “Minsk” in first bullet)More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. Business Reuters 210524 13h05m CORRECTED-TREASURIES-U.S. yields drop after Fed officials vow support to keep policy easy for some time Fed Board Governor Lael Brainard, St. Louis Fed President James Bullard, and Atlanta Fed President Raphael Bostic in separate remarks all backed the U.S. central bank's current easy monetary policy view. Brainard, for one, said she sees inflation pressures fading, and expects that spikes in prices associated with supply bottlenecks and the reopening of the economy to "subside over time," in line with what Fed Chairman Jerome Powell has said repeatedly over recent weeks. Howell date : 210524 13h13m31s Business Reuters 210524 12h57m UPDATE 1-Shell to sell interest in Deer Park refinery to partner Pemex Royal Dutch Shell said it would sell its interest in the Deer Park Refinery joint venture to partner Petroleos Mexicanos for about $596 million, the latest move by the European oil major to cut its global refining footprint. Operated by Shell, the Deer Park complex in Texas includes a petrochemical complex and it also refines crude from Africa, South America and the United States. Shell said on Monday one of its units would continue to operate the chemicals facility adjacent to the refinery. Business Bloomberg 210524 12h52m Bitcoiners Waving Eco-Friendly Bona Fides Bet on Premium (Bloomberg) -- Bitcoin’s environmental dark side has been glossed over for years. Elon Musk changed that with a tweet.And with it, the Tesla Inc. chief executive officer threw open what some see as a new market opportunity for crypto “miners” brandishing their eco-friendly credentials. Some are working to sell what they are calling green Bitcoin -- coins whose transactions are verified on the blockchain by computers powered only by renewable energy. The bet is that they will be able to command a premium of up to 10%.“There’s a market that doesn’t know it yet,” said Sheldon Bennett, CEO at crypto miner DMG Blockchain Solutions Inc. His firm has had discussions with “multiple banks and financial institutions” that want to buy Bitcoins that can fulfill increasing demand for environmental, social and corporate governance compliance, he said. “More and more, they are saying if there’s an option, I am willing to pay a premium to get it.”The corporate world has increasingly focused on environmental concerns in recent years -- or at least on appearing to care about green issues. With the shift, investors are hot to buy into renewable energy as the next big thing. Companies in every sector are pledging to cut their carbon emissions. And the Biden administration has set tough carbon goals and promised to fund new green technologies. Even before Musk helped to roil the crypto world with his tweet saying Tesla would no longer accept Bitcoin as payment, industry participants have been moving to address the green backlash. In addition to the mining pool focused on specifically using renewable energy, DMG recently joined the Crypto Climate Accord, a private-sector initiative to decarbonize the crypto industry by 2030. The group was inspired by the Paris Climate Agreement.The idea of paying a premium for green Bitcoin may not be such a stretch, considering that coins that don’t use energy-intensive mining -- such as Cardano and Polkadot -- actually enjoyed a short rally following Musk’s comments when Bitcoin tumbled. The protocols they use to secure their networks and process transactions use less power than the system that supports Bitcoin.A growing number of companies in the crypto industry are alert to the danger of being tagged as not green, said Isaac Maze-Rothstein, a research analyst at Wood Mackenzie.Intense Competition“There are a bunch of miners who saw what happened with the coal industry,” he said. “So they only pursue a project if it’s carbon negative. There are others who want to co-locate with wind, or with solar.”Miners’ willingness to shoulder potentially higher costs to go green may depend on Bitcoin’s price, of course. When the going gets tough, many green miners may be forced to change their game and go for lower cost, and dirtier energy, instead, said Christopher Bendiksen, head of research at CoinShares, a provider of digital-asset investment services.“Right now mining is hyper profitable,” Bendiksen said. “And these hyper profitability periods don’t last forever. When mining costs start approaching Bitcoin price again, the costs will matter. Bitcoin mining is absolutely ruthless, and you are competing against miners that are in different countries than you are, and they don’t necessarily care about the environment like you do. It’s quite dangerous for your competitiveness over time.”Today, only between 55% to 65% of total Bitcoin mining is done using renewable energy, Bendiksen estimated. About 50% of all Bitcoin is being mined in China, some of whose regions rely on cheap coal. Some of it is mined in Kazakhstan and Iran, using dirty energy as well.Ironically, some Bitcoin miners that call themselves green have managed to get to a low energy cost that can help them survive downturns -- by purchasing old coal-burning power plants. While designating themselves as green miners may raise some eyebrows, the strategy appears to be increasing in use.Greenidge Generation Holdings, is mining using a dormant New York state-based coal-powered power plant, which has been converted to natural gas. Starting in June, the company will be purchasing carbon offset credits to be carbon neutral.Elsewhere, Stronghold Digital Mining Inc. owns a plant in Scrubgrass Township, Pennsylvania, that runs on waste coal. The state has about 700 piles -- some of them containing as many as 10 million tons -- of coal-containing waste left over from steel making. Stronghold gets paid by the state to clean up the piles, which it burns to generate energy -- some for Bitcoin mining.“We don’t know of anyone who has a lower cost of power than us,” said Greg Beard, Stronghold’s CEO.Others are going for more innovative methods. A firm called Gather mines crypto using the unused processing power of computers used by people visiting Websites the company partners with. While users are streaming a video or reading the news on a website that’s teamed up with Gather, the company will mine crypto.“You’re not building massive new server farms in Iceland or Alaska, you’re just using the wasted resources that are already consuming electricity,” said Gather CEO Raghav “Reggie” Jerath, who founded the company in 2018. “We are not taking extra electricity from the grid.”Talen Energy Corp., a debt-laden power producer operating in the U.S. Northeast and Texas, unveiled a sweeping plan this week to focus more on clean energy and expand into crypto mining. The Woodlands, Texas-based company owns a mix of natural gas, coal, nuclear and solar plants.For Gryphon Digital Mining, one of the cheapest and longest used sources of power fits the bill while keeping it all simple. Gryphon, which expects to begin mining in August, plans to go 100% hydropower using a facility in upstate New York.“We are ESG committed,” said Gryphon CEO Rob Chang. “We will only look at renewable. We’ll not do the financial gymnastics others do.”(Updates chart.)More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. Business Yahoo Finance Video 210524 12h48m How to gauge sustainability of the tech sector rally Michele Schneider, Marketgauge.com Partner and Director of Trading Research & Education, joins Yahoo Finance to discuss, moves in the tech sector, outlook on the market and cryptocurrency. Business Bloomberg 210524 12h46m Copper Gains, Shrugging Off China Push Against Commodity Surge (Bloomberg) -- Copper rebounded, shrugging off China’s stepped-up fight against soaring commodities prices as the dollar slipped and inflation fears ebbed.The dollar weakened against most Group-of-10 currencies as a disappointing index of U.S. economic activity boosted sentiment that a recent spike in inflation is transitory, further damping speculation on any Federal Reserve tightening moves. Copper fell as much as 0.9% earlier after China summoned top executives to a meeting that threatened severe punishment for violations ranging from excessive speculation to spreading fake news.The warning from Chinese officials comes after a surge in commodities prices fueled fears that faster inflation could dent economic growth. The push to rein in metals prices rippled across markets, with steel and iron ore tumbling before prices steadied. Some analysts questioned how much control China can exert over global prices, and with broader price worries easing on Monday, concerns over the outlook for tight copper supply returned to the fore.“I don’t think China can do too much when it comes to copper,” Citigroup Inc. analyst Max Layton said during an interview with Bloomberg TV. “I don’t think China is going to slow its growth just to limit commodity prices.”Investors have been piling into industrial metals on bets that the world will rebound strongly from the pandemic.Layton said he thinks the rally in commodities has just started. Preference shifts during the pandemic have resulted in a “colossal” backlog of home renovations and consumer goods, and there’s “a ton of pent-up demand” in automobiles as economies reopen and people travel again, he said. “You’ve got to stick with this rally.”There’s been a steady drumbeat of government warnings about the consequences of commodity prices that are near the highest level in almost a decade. But aside from changes to trading rules at futures exchanges, there hasn’t been a lot of action. Beijing is likely to face a “potential exhaustion of policy options” to restrain the rally, Citigroup Inc. said in a note.In targeting commodity prices, authorities are fighting trends over which they have only partial control as the world economy reboots with supply chains stretched. The government is also tackling the consequences of its own efforts to reduce greenhouse gas emissions, which have contributed to price gains.Copper for three-month delivery rose 0.7% to settle at $9,947 a metric ton on the London Metal Exchange. Prices slid 3.5% last week, the most since September. Nickel and aluminum also gained, while lead, tin and zinc slipped.More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. Business Bloomberg 210524 12h45m Blockchain Startup Chia Nabs $500 Million Valuation, Eyes IPO (Bloomberg) -- Chia Network Inc., a blockchain and digital currency platform founded by BitTorrent creator Bram Cohen, has more than doubled its valuation after raising $61 million from investors including Richmond Global Ventures and Andreessen Horowitz.The San Francisco-based company was valued at about $500 million in the funding round, a person with knowledge of the matter said. Breyer Capital, Slow Ventures, True Ventures, Cygni Capital, Naval Ravikant, Collab+Currency and DHVC also participated in round.“We want to make digital currency easier to use than cash,” Gene Hoffman, Chia’s president and chief operating officer, said in an interview. He called the fresh funding “rocket fuel” for hiring and accelerating the company’s ambition to become a trading and payment system used by governments, banks and other institutions.Hoffman said the company is looking to a traditional initial public offering as soon as this year, although a merger with the “right” special purpose acquisition company is a possibility.“Our goal has always been to go public relatively quickly as that will significantly clarify our regulatory environment and allow customers to use currency to hedge public market volatility, which is different from other coins,” Hoffman said.Chia calls itself eco-friendly, saying its operations are less energy-intensive than traditional mining. The firm is is now the largest storage-related blockchain, nearly double Filecoin, Hoffman said.Richmond Global Ventures managing partner David Frazee said the Chia coin is auditable, secure and regulatorily compliant, making it user-friendly for monetary authorities and multinationals.“Chia is what Bitcoin would look like if it was designed with knowledge from the last 13 years,” he said. Frazee is joining Chia’s board and personally invested in the company in 2018.More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. Business Bloomberg 210524 12h37m Nasdaq 100 Rallies 2% as Inflation Concerns Ebb: Markets Wrap (Bloomberg) -- Technology shares led gains in U.S. stocks as inflation anxiety appeared to be easing. Bitcoin headed toward its biggest surge since February, rebounding from a weekend rout.All 11 groups in the S&P 500 advanced, while the Nasdaq 100 outperformed major equity benchmarks amid a rally in giants such as Apple Inc., Amazon.com Inc. and Google’s parent Alphabet Inc. The world’s largest cryptocurrency soared after plunging as much as 18% on Sunday. Most base metals were under pressure, with iron ore and steel sinking as China stepped up its fight against soaring commodity prices.While several analysts are warning it may be too early to signal the all-clear on inflation pressures, weaker-than-expected economic data have helped quell investor worries. Federal Reserve Governor Lael Brainard, Atlanta Fed President Raphael Bostic and St. Louis’s James Bullard said they wouldn’t surprised to see bottlenecks and supply shortages push prices up in coming months as the pandemic recedes and pent-up customer demand is unleashed -- but much of those price gains should prove temporary.“The Fed continues its wait-and-see posture, which added wind beneath the tech sector’s wings,” said Chris Larkin, managing director of trading and investing product at E*Trade Financial. “Stocks head into the final full week of the month trying to break a two-week bull-bear stalemate.”For Tom Essaye, a former Merrill Lynch trader who founded “The Sevens Report” newsletter, inflation fears will remain a headwind for stocks until it becomes clear that price pressures are temporary.“Until then, expect a more volatile market,” he wrote in a note to clients. “But at this point, strong policy support for stocks remains very much in place, and that’s a good thing.”Some other corporate highlights:Virgin Galactic Holdings Inc. soared after the company founded by British billionaire Richard Branson conducted a test flight to space for the first time in more than two years.Beyond Meat Inc. gained as the plant-based meat producer was upgraded to outperform at Bernstein.Here are some events this week:Bank of Indonesia rate decision Tuesday, Reserve Bank of New Zealand policy decision Wednesday, Bank of Korea rate decision Thursday.CEOs of the largest U.S. banks, including JPMorgan and Goldman Sachs, will testify before lawmakers in the Senate Banking and House Financial Services committees Wednesday.U.S. initial jobless claims, GDP, durable goods, pending home sales, Thursday.These are some of the main moves in markets:StocksThe S&P 500 rose 1.3% as of 2:36 p.m. New York timeThe Nasdaq 100 rose 2%The Dow Jones Industrial Average rose 0.7%The MSCI World index rose 0.8%CurrenciesThe Bloomberg Dollar Spot Index fell 0.2%The euro rose 0.3% to $1.2213The British pound was little changed at $1.4157The Japanese yen rose 0.2% to 108.79 per dollarBondsThe yield on 10-year Treasuries declined two basis points to 1.61%Germany’s 10-year yield declined one basis point to -0.14%Britain’s 10-year yield declined two basis points to 0.81%CommoditiesWest Texas Intermediate crude rose 3.8% to $66 a barrelGold futures rose 0.4% to $1,886 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. World Reuters 210524 12h32m Russian prosecutor seeks to ban Dolce & Gabbana same-sex kiss ads A Russian prosecutor has called for Dolce & Gabbana Instagram advertisements showing same-sex couples kissing to be banned in the country following a lawmaker's complaint about them, the prosecutor's office said on Monday. Mikhail Romanov, a member of the ruling United Russia party who sits in the Duma, or lower house of parliament, filed the complaint about the ads posted under the @dolcegabbana handle, the St Petersburg courts press service said. Same-sex relationships are legal in Russia, but a 2013 law bans disseminating "propaganda on non-traditional sexual relations" among young Russians. World Bloomberg 210524 12h31m Merkel Says Minsk’s Explanations Aren’t Credible: Belarus Update (Bloomberg) -- European Union leaders are debating possible measures against Belarus, a day after the nation forced the landing of a Ryanair Holdings Plc plane and arrested a journalist on board.The 27 leaders are considering further sanctions against President Alexander Lukashenko’s administration at the two-day summit in Brussels, which got underway at 7 p.m. German Chancellor Angela Merkel called the incident “without precedent” and said explanations weren’t credible.Potential measures could also include suspending flights over Belarus, banning the country’s national airline from landing at EU airports and blocking ground transit into the bloc from Belarus, according to a person familiar with the summit preparations.For now, even as Ryanair calls the interception an “act of aviation piracy,” the Irish carrier -- like many other airlines -- is still flying through Belarus’s airspace.Read More: How Belarus Snatched a Dissident Off a Ryanair Plane From GreeceKey Developments:Belarusian journalist Raman Pratasevich removed from plane in MinskU.S., EU and U.K. leaders condemn actions by authorities in BelarusRussia defends Belarus, its closest allyFlights over Belarus airspace continueAll times are Central European Time.Belarus Denies Reports That Journalist Is in Hospital (8:25 p.m.)Belarusian Interior Ministry spokeswoman Olga Chemodanova denied reports that Pratasevich had been transferred to hospital with serious health problems. Chemodanova said on her Telegram account that Pratasevich hasn’t complained about his health and is still being held in jail in Minsk. Polish Deputy Foreign Minister Pawel Jablonski earlier told TVN24 television that his government has received reports from Pratasevich’s mother that her son has “very serious” health conditions. Jablonski said such information is “very worrisome” given the unexplained deaths among members of Belarussian opposition who have been arrested in recent months.Inessa Olenskaya, Pratasevich’s lawyer, said by phone from Minsk that she couldn’t immediately confirm his condition and didn’t have information about his whereabouts.EU Leaders Go Dark to Keep Talks Secret (8:20 p.m.)Leaders at the summit have been asked not to use electronic devices, including their mobile phones, during the talks on Belarus and on Russia.Summit chair Charles Michel, who heads the European Council, requested the move “to ensure the confidentiality of the discussion,” his spokesman Barend Leyts tweeted.Von Der Leyen Says EU Preparing ‘Very Strong Answer’ (7:32 p.m.)Ursula von der Leyen, head of the EU’s executive arm, pledged that the bloc will ensure “a very strong answer because it is outrageous behavior and Lukashenko and his regime have to understand this will have serious consequences.”On her way into the summit, the chief of the European Commission said leaders will explore “sanctions against individuals that are involved in this hijacking but also sanctions against business and economic entities that are financing this regime. And we are looking into sanctions against the aviation sector in Belarus.”Von der Leyen said a previously prepared 3 billion-euro ($3.7 billion) investment and economic package by the EU “is on hold and frozen until Belarus turns democratic.”Belgian Prime Minister Alexander De Croo told reporters before the meeting that the bloc would act quickly.“This is a flight between two European capitals where European citizens have been used as hostages in an illegal arrest,” he said. “We will propose rapid, swift and severe measures are being taken to make it very clear that something like this is not being accepted.”Merkel Calls for a Ban on Overflights (6:42 p.m.)On her way into the summit, German Chancellor Angela Merkel called for further sanctions against Belarusian officials and a ban on overflights.She called the actions of Belarus authorities “without precedent” and said their explanations were “totally uncredible.”The White House Demands an Immediate Investigation (6:42 p.m.)The White House demanded an international investigation of Belarus’s forced landing of the Ryanair plane, calling it an “affront” by Lukashenko’s government.“This was a shocking act, diverting a flight between two EU member states for the apparent purpose of arresting a journalist,” White House Press Secretary Jen Psaki told reporters on Monday. “It constitutes a brazen affront to international peace and security by the regime. We demand an immediate international transparent and credible investigation of this incident.”She said the U.S. government is “in touch” with allies about the incident, and the U.S. ambassador to Belarus has conveyed the Biden administration’s concerns “directly.” White House National Security Adviser Jake Sullivan also “raised our strong concerns” about Belarus’s action with his Kremlin counterpart. Russia is Belarus’s closest ally.Leaders Begin Arriving at Summit in Brussels (6:15 p.m.)EU leaders are expected to use the following wording in their joint communique on Belarus, according to a senior diplomat familiar with the ongoing drafting of the text:They’ll condemn the forced landing and call for release of Raman Pratasevich and Sofia Sapega.Call for an investigation of this “unprecedented and unacceptable incident”Vow “to adopt additional listings as soon as possible on the basis of the relevant sanctions framework”Call on all EU-based carriers to avoid overflight of BelarusTask their ministers “to adopt the necessary measures to ban overflight of EU airspace by Belarusian Airlines and prevent access to EU airports”Transport Lobby Says Avoiding Belarus Airspace Difficult (6:02 p.m.)It could be complicated for airlines to avoid Belarusian airspace given its location and the fact that there are other restricted flight areas nearby, according to Director General of the International Air Transport Association Willie Walsh. He told Bloomberg Television’s Guy Johnson and Alix Steel that airlines that are still flying over Belarus will have assessed the risk.“We do have to strongly condemn the actions of the government of Belarus,” Walsh said. “What they did on Sunday, intercepting a commercial civil aircraft, clearly put the passengers and crew of that aircraft at risk. Forcing them to divert is unacceptable behavior by any government.”U.K. Summons Belarus Ambassador (6:02 p.m.)The U.K. summoned the Belarusian ambassador to London to explain the forced landing of a commercial plane and arrest of journalist Raman Pratasevich, according to Foreign Secretary Dominic Raab.Raab told Parliament on Monday that the actions by Belarus were an “egregious and extraordinary departure from international law.”“It’s very difficult to believe that this kind of action could’ve been taken without at least the acquiescence of the authorities in Moscow,” Raab said.U.K. Suspends Operating Permit of Belarus Airline (6:02 p.m.)Raab told Parliament the U.K. has suspended the operating permit on the Belarusian airline Belavia. He added that the Civil Aviation Authority has been instructed not to grant any further ad hoc permits for carriers between the U.K. and Belarus, and to request airlines not to venture into Belarusian airspace.Belarus Says Bomb Threat Led to Forced Landing (6:02 p.m.)Belarus grounded the Ryanair flight after receiving an emailed bomb threat signed by people claiming to be Hamas fighters, Artiom Sikorskiy, director of aviation at the country’s Transportation Ministry, said during an online briefing Monday.The message included demands for Israel to stop fighting in Gaza and the EU to withdraw support for Israel, and was composed in English, Sikorskiy said. The bomb was allegedly set to explode over Lithuania’s capital, Vilnius.The anonymous email to the Minsk airport was sent just days after the Israel-Palestine truce sparked celebrations in Gaza.Michel to Push for Concrete EU Measures (4:45 p.m.)European Council President Charles Michel will push for EU leaders to decide on measures against Belarus when they meet for dinner Monday night at the start of a two-day summit.“What happened yesterday is an international scandal. Lives of European civilians were at risk,” Michel said as he arrived at the summit building. “This is not acceptable and this is why we put the debate on sanctions on the table of the European Council.”“We are preparing different options, different possible measures and I hope tonight we can take decisions on that,” he added.Schroders Says Putin Unlikely to Jeopardize Biden Summit (4:45 p.m.)“The developments over the weekend are obviously negative and we will await a European response,” Schroders money manager James Barrineau said by email from New York. “We doubt Putin will want to jeopardize his summit with Biden over this issue, but it does not help the overall tone of the relationship of Russia with Europe.”Schroders has a “very small” position in Belarus, and for now does not expect implications for Russian assets from the forced landing of the Ryanair plane in Minsk, he said.Germany Summons Belarus Ambassador (4:29 p.m.)Germany summoned the Belarus ambassador to the foreign ministry in Berlin Monday evening to explain why the country forced a Ryanair jet to land in Minsk. Foreign Minister Heiko Maas called the previous explanations from Alexander Lukashenko’s regime “absurd and not credible.”“We need clarity about what really happened on board and on the ground yesterday,” Maas said in a statement. “And we need clarity about the well-being of Raman Pratasevich and his partner, who must be released immediately.”Lithuania Urges Its Citizens to Avoid Belarus (4:29 p.m.)The Lithuanian foreign ministry urged its nationals not to travel to Belarus and recommended those currently in the neighboring country to leave, according to a statement. The incident with the Ryanair plane demonstrates “a threat to security and lives of individuals,” the ministry said.Lufthansa Flight Leaves Minsk With all Passengers (3:42 p.m.)Lufthansa flight LH1487 from Minsk to Frankfurt took off at 4:21 p.m. local time, according to FlightRadar24, 2 hours after its scheduled time of departure. The airline had earlier said that it was cooperating with local authorities who were “searching the aircraft again before departure and subjecting the passengers to another security check” after receiving a security alert during boarding.All 51 people schedule to depart on the flight were on board, according to a Lufthansa spokesperson.Tsikhanouskaya Calls for Belarus Sanctions (3:28 p.m.)Exiled Belarus opposition leader Svetlana Tsikhanouskaya called for sanctions against the country during a Monday phone call with EU foreign policy chief Josep Borrell. She is scheduled to hold a call later in the day with members of President Joe Biden’s administration.Tsikhanouskaya also said the whereabouts of the detained journalist Raman Pratasevich are unknown and his lawyer is unable to contact him. The journalist’s girlfriend, who is a Russian citizen, is being held in a Minsk prison and has been refused assistance from the Russian consulate.Lufthansa Flight From Minsk Delayed by Threat (3:02 p.m.)Lufthansa flight LH1487 from Minsk to Frankfurt was delayed following a “security alert,” the German airline said in a statement. The Minsk airport said on its Telegram channel that it had received an anonymous email about a planned “terrorist attack.” Lufthansa said 51 passengers, including five crew members, were on board the plane.“We are cooperating with the authorities, who are searching the aircraft again before departure and subjecting the passengers to another security check,” Lufthansa said on Monday. The search includes unloading all suitcases and cargo.Czech Premier Says EU Must Be Tough (2:50 p.m.)The proposals for discussion about EU’s response include banning Belarus airlines from landing in the EU or suspending flights over Belarus’s airspace, Czech Prime Minister Andrej Babis said. He said that according to available information, there were four Russian citizens on the Raynair flight “who probably had a lot to do with this unbelievable act.”“Europe’s response must be tough,” Babis told reporters before departing to EU summit.Passenger Number Confusion (2:40 p.m.)Lithuania’s criminal police said on Monday that 121 of the 126 passengers who left Athens on the flight arrived in Vilnius. On Sunday, both Greece and Lithuania said 171 passengers and crew were on the flight, which Lithuania said Monday was the number of reservations. There was also confusion over infant passengers, who didn’t require tickets, and some boarding passes that weren’t digital. Ryanair hasn’t confirmed the numbers.Lithuania’s transport member also said the country would ban flights to and from Belarus airspace starting at 3 a.m. on Tuesday. The ban will affect 26 flights a day. Lithuania’s neighbor Poland will propose at the EU summit on Monday that all flights between the bloc and Belarus be halted.Poland Wants to Halt All Flights Between EU and Belarus (1:55 p.m.)Poland has come as one of the strongest voices demanding firm action. At the meeting of leaders in Brussels Prime Minister Mateusz Morawiecki will propose halting all flights between EU and Belarus.Belarusian Activists Ask EU For Help (1:50 p.m.)Holding a placard reading “SOS,” Belarusian activists in Poland appealed to the EU for help. Standing in front of Belarus embassy in Warsaw, Nexta founder and blogger Stsiapan Putsila said he’s received “more than a thousand threats” since Sunday. “We can’t stay silent,” said Jana Shostak, another activist.Police Revise Passenger Numbers (1:40 p.m.)According to Lithuania’s criminal police, 121 of the 126 passengers who left Athens on the flight arrived in Vilnius. The captain of the airliner consulted with Ryanair’s management before deciding to divert to Minsk. On Sunday, both Greece and Lithuania said 171 passengers and crew were on the flight.Poland Increases Protection of Activists (1:30 p.m.)Polish Deputy Foreign Minister Pawel Jablonski said on Monday his country was setting up “special protection” for activists on Polish territory who “could be in the cross-hairs of Belarusian or Russian services.”Raman Pratasevich, arrested after the Ryanair plane was diverted to Minsk, worked for Nexta, a media group registered and run out of Warsaw.Jablonski urged activists to avoid contact with Belarus as “we can’t tell what the regime is capable of.”France Says All Options Being Considered (1:20 p.m.)“Nothing is off the table,” a French diplomat told journalists when asked about possible punitive measures against Belarus.In addition to sanctions targeting Belarusian officials and companies, the EU is mulling the suspension of overflights of European airlines over Belarus, a landing ban for flag carrier Belavia in European airports, and the suspension of transits (including land) from Belarus to the EU, the French diplomat added, asking not to be named in line with policy.Ryanair Is Flying Over Belarus Today (1:10 p.m.)Flight FR3340 from Paphos, Cyprus, is scheduled to land at Talinn, Estonia, at 2:30 p.m. local time. The route takes the plane directly across Belarus territory, highlighting the mixed messaging coming out of Europe in response to Sunday’s incident.The airspace over Belarus is part of a major route for flights between Asia and Europe, with some carriers including Deutsche Lufthansa AG and cargo hauler FedEx Corp. continuing to fly over the country on Monday. Airlines have routed traffic over Belarus to avoid the restive eastern Ukraine region that’s been off-limits since a Malaysian Airlines Boeing 777 jet was shot down there in 2014, killing 298 people.Poland Orders Probe (12:20 p.m.)Poland’s state prosecutor said it has ordered an investigation into the landing because the Ryanair jet was registered in Poland and therefore falls under Polish jurisdiction.Estonia to Raise Issue at UN Security Council (12:00 p.m.)Estonia plans to raise the Belarus issue at the Security Council and has already started consultations to have a discussion, public broadcaster ERR cited the country’s foreign minister, Eva-Maria Liimets, as saying.Ryanair Cooperating with EU, NATO (11:50 a.m.)The diversion of the Ryanair plane to Minsk on Sunday was an “act of aviation piracy,” the airline said in a statement today.Ryanair said it was “fully cooperating” with the EU safety and security agencies as well as NATO, and wouldn’t comment further due to security reasons.Kremlin Says U.S.-Russia Summit Plans Not Affected (11:45 a.m.)Tensions between Moscow’s closest ally and the West over Minsk’s forcing of a Ryanair jet to land won’t affect Russia’s efforts to arrange a summit meeting between President Vladimir Putin and his U.S. Counterpart, Joe Biden, Kremlin spokesman Dmitry Peskov said.“I wouldn’t combine all this into a single system,” Peskov told reporters on a conference call. “These are different things, after all.”Peskov declined to comment on the details of the case, including on whether Belarus gave Russia advance warning of its decision to force the plane to land or whether Moscow’s agents were involved. “Our special services are in the closest possible contact,” he said, adding that he doesn’t have detailed information about the Ryanair jet.Russia Calls Western Reaction ‘Shocking’ (11:15 a.m.)Western countries are showing double standards, according to Russian Foreign Ministry spokeswoman Maria Zakharova. “It’s shocking that the West is calling the incident in Belarus’s airspace ‘shocking,’” she wrote in a Facebook post.Zakharova cited past examples of what she said were western governments forcing planes to land, such as a 2013 episode when the plane of Bolivian President Evo Morales had to land in Austria as the U.S. searched for Edward Snowden, as evidence that the U.S. and its allies use the same tactics.U.K. Joins Calls for Sanctions (10:40 a.m.)Foreign Secretary Dominic Raab added to the voices calling for further sanctions against Belarus and the immediate release of Protasevich. In a statement, Raab condemned the arrest, adding “Mr Lukashenko must be held to account for his outlandish actions.”Russian Senator Defends Belarus (10:35 a.m.)“Formally, there was a bomb threat, so everything was done properly,” Vladimir Dzhabarov, first deputy chairman of the International Affairs committee in the upper house of parliament, said in a phone interview Monday. “I don’t see anything unusual or unacceptable in the actions of the Belarusian authorities.”The arrest of Raman Pratasevich, the journalist, was justified, he said. “This person was sitting abroad and criticizing his homeland,” he said. “It’s a warning to Tsikhanouskaya,” he said, referring to exiled opposition leader Sviatlana Tsikhanouskaya.EU Mulls Sanction Options (10:25 a.m.)Of the possible options for EU action, sanctions against individuals and entities would likely be the simplest, according to a senior official close to the European talks.Other options, such as the suspension all flights by EU airlines over Belarus and the suspension of all transit -- including ground travel -- between Belarus and the EU, would trigger increased costs for European companies, the official said.‘State-Sponsored Hijacking’ (10:10 a.m.)“This was a case of state-sponsored hijacking,” Ryanair CEO Michael O’Leary said in comments broadcast by RTE Radio. The airline has to do a “detailed debrief today with the NATO and EU authorities” after the incident, which he said saw passengers and crew held under armed guard.It appears the intent of Belarusian authorities was to remove a journalist and his traveling companion, O’Leary said. “We believe there was also some KGB agents offloaded off the aircraft as well,” he said.Irish Minister Calls for Tough EU Response (10:00 a.m.)“This was effectively aviation piracy, state sponsored,” Irish foreign minister Simon Coveney told RTE Radio. The EU’s response “has to be clear, tough, and needs to happen quickly,” he said.Belarus’s Bonds Tumble (9:30 a.m.)Worries over potential sanctions are scaring away bond investors. Belarus’s dollar bonds due 2031 tanked early on Monday, pushing yields up 23 basis points to a one-month high of 7.48%. The bonds traded at a yield of above 8% in August after authorities cracked down on protesters following Lukashenko’s claim to a landslide election victory.Flights Avoid Belarus (9:25 a.m.)Wizz Air Holdings Plc, Eastern Europe’s biggest discount carrier, said it has rerouted a service from the Ukrainian capital Kyiv to Tallinn in Estonia to avoid Belarusian airspace. A spokesman said in an email that the Budapest-based company is “continuously monitoring and evaluating the situation.”Latvia’s national carrier Airbaltic has decided to avoid Belarusian air space “for the time being,” Latvian Transport Minister Talis Linkaits said in interview with Latvijas Radio.Poland to Call for More Sanctions Against Lukashenko (9:22 a.m.)Belarus’s neighbor, Poland, will propose new sanctions against Lukashenko’s government at Monday’s EU meeting, according to Deputy Foreign Minister Pawel Jablonski. He declined to specify the type of measures Warsaw will seek, saying the government wants to consult with EU partners first.(An earlier version of this story corrected the spelling of “Minsk” in first bullet)More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. Howell date : 210524 12h42m54s World Bloomberg 210524 12h31m Merkel Says Minsk’s Explanations Aren’t Credible: Belarus Update (Bloomberg) -- European Union leaders are debating possible measures against Belarus, a day after the nation forced the landing of a Ryanair Holdings Plc plane and arrested a journalist on board.The 27 leaders are considering further sanctions against President Alexander Lukashenko’s administration at the two-day summit in Brussels, which got underway at 7 p.m. German Chancellor Angela Merkel called the incident “without precedent” and said explanations weren’t credible.Potential measures could also include suspending flights over Belarus, banning the country’s national airline from landing at EU airports and blocking ground transit into the bloc from Belarus, according to a person familiar with the summit preparations.For now, even as Ryanair calls the interception an “act of aviation piracy,” the Irish carrier -- like many other airlines -- is still flying through Belarus’s airspace.Read More: How Belarus Snatched a Dissident Off a Ryanair Plane From GreeceKey Developments:Belarusian journalist Raman Pratasevich removed from plane in MinskU.S., EU and U.K. leaders condemn actions by authorities in BelarusRussia defends Belarus, its closest allyFlights over Belarus airspace continueAll times are Central European Time.Belarus Denies Reports That Journalist Is in Hospital (8:25 p.m.)Belarusian Interior Ministry spokeswoman Olga Chemodanova denied reports that Pratasevich had been transferred to hospital with serious health problems. Chemodanova said on her Telegram account that Pratasevich hasn’t complained about his health and is still being held in jail in Minsk. Polish Deputy Foreign Minister Pawel Jablonski earlier told TVN24 television that his government has received reports from Pratasevich’s mother that her son has “very serious” health conditions. Jablonski said such information is “very worrisome” given the unexplained deaths among members of Belarussian opposition who have been arrested in recent months.Inessa Olenskaya, Pratasevich’s lawyer, said by phone from Minsk that she couldn’t immediately confirm his condition and didn’t have information about his whereabouts.EU Leaders Go Dark to Keep Talks Secret (8:20 p.m.)Leaders at the summit have been asked not to use electronic devices, including their mobile phones, during the talks on Belarus and on Russia.Summit chair Charles Michel, who heads the European Council, requested the move “to ensure the confidentiality of the discussion,” his spokesman Barend Leyts tweeted.Von Der Leyen Says EU Preparing ‘Very Strong Answer’ (7:32 p.m.)Ursula von der Leyen, head of the EU’s executive arm, pledged that the bloc will ensure “a very strong answer because it is outrageous behavior and Lukashenko and his regime have to understand this will have serious consequences.”On her way into the summit, the chief of the European Commission said leaders will explore “sanctions against individuals that are involved in this hijacking but also sanctions against business and economic entities that are financing this regime. And we are looking into sanctions against the aviation sector in Belarus.”Von der Leyen said a previously prepared 3 billion-euro ($3.7 billion) investment and economic package by the EU “is on hold and frozen until Belarus turns democratic.”Belgian Prime Minister Alexander De Croo told reporters before the meeting that the bloc would act quickly.“This is a flight between two European capitals where European citizens have been used as hostages in an illegal arrest,” he said. “We will propose rapid, swift and severe measures are being taken to make it very clear that something like this is not being accepted.”Merkel Calls for a Ban on Overflights (6:42 p.m.)On her way into the summit, German Chancellor Angela Merkel called for further sanctions against Belarusian officials and a ban on overflights.She called the actions of Belarus authorities “without precedent” and said their explanations were “totally uncredible.”The White House Demands an Immediate Investigation (6:42 p.m.)The White House demanded an international investigation of Belarus’s forced landing of the Ryanair plane, calling it an “affront” by Lukashenko’s government.“This was a shocking act, diverting a flight between two EU member states for the apparent purpose of arresting a journalist,” White House Press Secretary Jen Psaki told reporters on Monday. “It constitutes a brazen affront to international peace and security by the regime. We demand an immediate international transparent and credible investigation of this incident.”She said the U.S. government is “in touch” with allies about the incident, and the U.S. ambassador to Belarus has conveyed the Biden administration’s concerns “directly.” White House National Security Adviser Jake Sullivan also “raised our strong concerns” about Belarus’s action with his Kremlin counterpart. Russia is Belarus’s closest ally.Leaders Begin Arriving at Summit in Brussels (6:15 p.m.)EU leaders are expected to use the following wording in their joint communique on Belarus, according to a senior diplomat familiar with the ongoing drafting of the text:They’ll condemn the forced landing and call for release of Raman Pratasevich and Sofia Sapega.Call for an investigation of this “unprecedented and unacceptable incident”Vow “to adopt additional listings as soon as possible on the basis of the relevant sanctions framework”Call on all EU-based carriers to avoid overflight of BelarusTask their ministers “to adopt the necessary measures to ban overflight of EU airspace by Belarusian Airlines and prevent access to EU airports”Transport Lobby Says Avoiding Belarus Airspace Difficult (6:02 p.m.)It could be complicated for airlines to avoid Belarusian airspace given its location and the fact that there are other restricted flight areas nearby, according to Director General of the International Air Transport Association Willie Walsh. He told Bloomberg Television’s Guy Johnson and Alix Steel that airlines that are still flying over Belarus will have assessed the risk.“We do have to strongly condemn the actions of the government of Belarus,” Walsh said. “What they did on Sunday, intercepting a commercial civil aircraft, clearly put the passengers and crew of that aircraft at risk. Forcing them to divert is unacceptable behavior by any government.”U.K. Summons Belarus Ambassador (6:02 p.m.)The U.K. summoned the Belarusian ambassador to London to explain the forced landing of a commercial plane and arrest of journalist Raman Pratasevich, according to Foreign Secretary Dominic Raab.Raab told Parliament on Monday that the actions by Belarus were an “egregious and extraordinary departure from international law.”“It’s very difficult to believe that this kind of action could’ve been taken without at least the acquiescence of the authorities in Moscow,” Raab said.U.K. Suspends Operating Permit of Belarus Airline (6:02 p.m.)Raab told Parliament the U.K. has suspended the operating permit on the Belarusian airline Belavia. He added that the Civil Aviation Authority has been instructed not to grant any further ad hoc permits for carriers between the U.K. and Belarus, and to request airlines not to venture into Belarusian airspace.Belarus Says Bomb Threat Led to Forced Landing (6:02 p.m.)Belarus grounded the Ryanair flight after receiving an emailed bomb threat signed by people claiming to be Hamas fighters, Artiom Sikorskiy, director of aviation at the country’s Transportation Ministry, said during an online briefing Monday.The message included demands for Israel to stop fighting in Gaza and the EU to withdraw support for Israel, and was composed in English, Sikorskiy said. The bomb was allegedly set to explode over Lithuania’s capital, Vilnius.The anonymous email to the Minsk airport was sent just days after the Israel-Palestine truce sparked celebrations in Gaza.Michel to Push for Concrete EU Measures (4:45 p.m.)European Council President Charles Michel will push for EU leaders to decide on measures against Belarus when they meet for dinner Monday night at the start of a two-day summit.“What happened yesterday is an international scandal. Lives of European civilians were at risk,” Michel said as he arrived at the summit building. “This is not acceptable and this is why we put the debate on sanctions on the table of the European Council.”“We are preparing different options, different possible measures and I hope tonight we can take decisions on that,” he added.Schroders Says Putin Unlikely to Jeopardize Biden Summit (4:45 p.m.)“The developments over the weekend are obviously negative and we will await a European response,” Schroders money manager James Barrineau said by email from New York. “We doubt Putin will want to jeopardize his summit with Biden over this issue, but it does not help the overall tone of the relationship of Russia with Europe.”Schroders has a “very small” position in Belarus, and for now does not expect implications for Russian assets from the forced landing of the Ryanair plane in Minsk, he said.Germany Summons Belarus Ambassador (4:29 p.m.)Germany summoned the Belarus ambassador to the foreign ministry in Berlin Monday evening to explain why the country forced a Ryanair jet to land in Minsk. Foreign Minister Heiko Maas called the previous explanations from Alexander Lukashenko’s regime “absurd and not credible.”“We need clarity about what really happened on board and on the ground yesterday,” Maas said in a statement. “And we need clarity about the well-being of Raman Pratasevich and his partner, who must be released immediately.”Lithuania Urges Its Citizens to Avoid Belarus (4:29 p.m.)The Lithuanian foreign ministry urged its nationals not to travel to Belarus and recommended those currently in the neighboring country to leave, according to a statement. The incident with the Ryanair plane demonstrates “a threat to security and lives of individuals,” the ministry said.Lufthansa Flight Leaves Minsk With all Passengers (3:42 p.m.)Lufthansa flight LH1487 from Minsk to Frankfurt took off at 4:21 p.m. local time, according to FlightRadar24, 2 hours after its scheduled time of departure. The airline had earlier said that it was cooperating with local authorities who were “searching the aircraft again before departure and subjecting the passengers to another security check” after receiving a security alert during boarding.All 51 people schedule to depart on the flight were on board, according to a Lufthansa spokesperson.Tsikhanouskaya Calls for Belarus Sanctions (3:28 p.m.)Exiled Belarus opposition leader Svetlana Tsikhanouskaya called for sanctions against the country during a Monday phone call with EU foreign policy chief Josep Borrell. She is scheduled to hold a call later in the day with members of President Joe Biden’s administration.Tsikhanouskaya also said the whereabouts of the detained journalist Raman Pratasevich are unknown and his lawyer is unable to contact him. The journalist’s girlfriend, who is a Russian citizen, is being held in a Minsk prison and has been refused assistance from the Russian consulate.Lufthansa Flight From Minsk Delayed by Threat (3:02 p.m.)Lufthansa flight LH1487 from Minsk to Frankfurt was delayed following a “security alert,” the German airline said in a statement. The Minsk airport said on its Telegram channel that it had received an anonymous email about a planned “terrorist attack.” Lufthansa said 51 passengers, including five crew members, were on board the plane.“We are cooperating with the authorities, who are searching the aircraft again before departure and subjecting the passengers to another security check,” Lufthansa said on Monday. The search includes unloading all suitcases and cargo.Czech Premier Says EU Must Be Tough (2:50 p.m.)The proposals for discussion about EU’s response include banning Belarus airlines from landing in the EU or suspending flights over Belarus’s airspace, Czech Prime Minister Andrej Babis said. He said that according to available information, there were four Russian citizens on the Raynair flight “who probably had a lot to do with this unbelievable act.”“Europe’s response must be tough,” Babis told reporters before departing to EU summit.Passenger Number Confusion (2:40 p.m.)Lithuania’s criminal police said on Monday that 121 of the 126 passengers who left Athens on the flight arrived in Vilnius. On Sunday, both Greece and Lithuania said 171 passengers and crew were on the flight, which Lithuania said Monday was the number of reservations. There was also confusion over infant passengers, who didn’t require tickets, and some boarding passes that weren’t digital. Ryanair hasn’t confirmed the numbers.Lithuania’s transport member also said the country would ban flights to and from Belarus airspace starting at 3 a.m. on Tuesday. The ban will affect 26 flights a day. Lithuania’s neighbor Poland will propose at the EU summit on Monday that all flights between the bloc and Belarus be halted.Poland Wants to Halt All Flights Between EU and Belarus (1:55 p.m.)Poland has come as one of the strongest voices demanding firm action. At the meeting of leaders in Brussels Prime Minister Mateusz Morawiecki will propose halting all flights between EU and Belarus.Belarusian Activists Ask EU For Help (1:50 p.m.)Holding a placard reading “SOS,” Belarusian activists in Poland appealed to the EU for help. Standing in front of Belarus embassy in Warsaw, Nexta founder and blogger Stsiapan Putsila said he’s received “more than a thousand threats” since Sunday. “We can’t stay silent,” said Jana Shostak, another activist.Police Revise Passenger Numbers (1:40 p.m.)According to Lithuania’s criminal police, 121 of the 126 passengers who left Athens on the flight arrived in Vilnius. The captain of the airliner consulted with Ryanair’s management before deciding to divert to Minsk. On Sunday, both Greece and Lithuania said 171 passengers and crew were on the flight.Poland Increases Protection of Activists (1:30 p.m.)Polish Deputy Foreign Minister Pawel Jablonski said on Monday his country was setting up “special protection” for activists on Polish territory who “could be in the cross-hairs of Belarusian or Russian services.”Raman Pratasevich, arrested after the Ryanair plane was diverted to Minsk, worked for Nexta, a media group registered and run out of Warsaw.Jablonski urged activists to avoid contact with Belarus as “we can’t tell what the regime is capable of.”France Says All Options Being Considered (1:20 p.m.)“Nothing is off the table,” a French diplomat told journalists when asked about possible punitive measures against Belarus.In addition to sanctions targeting Belarusian officials and companies, the EU is mulling the suspension of overflights of European airlines over Belarus, a landing ban for flag carrier Belavia in European airports, and the suspension of transits (including land) from Belarus to the EU, the French diplomat added, asking not to be named in line with policy.Ryanair Is Flying Over Belarus Today (1:10 p.m.)Flight FR3340 from Paphos, Cyprus, is scheduled to land at Talinn, Estonia, at 2:30 p.m. local time. The route takes the plane directly across Belarus territory, highlighting the mixed messaging coming out of Europe in response to Sunday’s incident.The airspace over Belarus is part of a major route for flights between Asia and Europe, with some carriers including Deutsche Lufthansa AG and cargo hauler FedEx Corp. continuing to fly over the country on Monday. Airlines have routed traffic over Belarus to avoid the restive eastern Ukraine region that’s been off-limits since a Malaysian Airlines Boeing 777 jet was shot down there in 2014, killing 298 people.Poland Orders Probe (12:20 p.m.)Poland’s state prosecutor said it has ordered an investigation into the landing because the Ryanair jet was registered in Poland and therefore falls under Polish jurisdiction.Estonia to Raise Issue at UN Security Council (12:00 p.m.)Estonia plans to raise the Belarus issue at the Security Council and has already started consultations to have a discussion, public broadcaster ERR cited the country’s foreign minister, Eva-Maria Liimets, as saying.Ryanair Cooperating with EU, NATO (11:50 a.m.)The diversion of the Ryanair plane to Minsk on Sunday was an “act of aviation piracy,” the airline said in a statement today.Ryanair said it was “fully cooperating” with the EU safety and security agencies as well as NATO, and wouldn’t comment further due to security reasons.Kremlin Says U.S.-Russia Summit Plans Not Affected (11:45 a.m.)Tensions between Moscow’s closest ally and the West over Minsk’s forcing of a Ryanair jet to land won’t affect Russia’s efforts to arrange a summit meeting between President Vladimir Putin and his U.S. Counterpart, Joe Biden, Kremlin spokesman Dmitry Peskov said.“I wouldn’t combine all this into a single system,” Peskov told reporters on a conference call. “These are different things, after all.”Peskov declined to comment on the details of the case, including on whether Belarus gave Russia advance warning of its decision to force the plane to land or whether Moscow’s agents were involved. “Our special services are in the closest possible contact,” he said, adding that he doesn’t have detailed information about the Ryanair jet.Russia Calls Western Reaction ‘Shocking’ (11:15 a.m.)Western countries are showing double standards, according to Russian Foreign Ministry spokeswoman Maria Zakharova. “It’s shocking that the West is calling the incident in Belarus’s airspace ‘shocking,’” she wrote in a Facebook post.Zakharova cited past examples of what she said were western governments forcing planes to land, such as a 2013 episode when the plane of Bolivian President Evo Morales had to land in Austria as the U.S. searched for Edward Snowden, as evidence that the U.S. and its allies use the same tactics.U.K. Joins Calls for Sanctions (10:40 a.m.)Foreign Secretary Dominic Raab added to the voices calling for further sanctions against Belarus and the immediate release of Protasevich. In a statement, Raab condemned the arrest, adding “Mr Lukashenko must be held to account for his outlandish actions.”Russian Senator Defends Belarus (10:35 a.m.)“Formally, there was a bomb threat, so everything was done properly,” Vladimir Dzhabarov, first deputy chairman of the International Affairs committee in the upper house of parliament, said in a phone interview Monday. “I don’t see anything unusual or unacceptable in the actions of the Belarusian authorities.”The arrest of Raman Pratasevich, the journalist, was justified, he said. “This person was sitting abroad and criticizing his homeland,” he said. “It’s a warning to Tsikhanouskaya,” he said, referring to exiled opposition leader Sviatlana Tsikhanouskaya.EU Mulls Sanction Options (10:25 a.m.)Of the possible options for EU action, sanctions against individuals and entities would likely be the simplest, according to a senior official close to the European talks.Other options, such as the suspension all flights by EU airlines over Belarus and the suspension of all transit -- including ground travel -- between Belarus and the EU, would trigger increased costs for European companies, the official said.‘State-Sponsored Hijacking’ (10:10 a.m.)“This was a case of state-sponsored hijacking,” Ryanair CEO Michael O’Leary said in comments broadcast by RTE Radio. The airline has to do a “detailed debrief today with the NATO and EU authorities” after the incident, which he said saw passengers and crew held under armed guard.It appears the intent of Belarusian authorities was to remove a journalist and his traveling companion, O’Leary said. “We believe there was also some KGB agents offloaded off the aircraft as well,” he said.Irish Minister Calls for Tough EU Response (10:00 a.m.)“This was effectively aviation piracy, state sponsored,” Irish foreign minister Simon Coveney told RTE Radio. The EU’s response “has to be clear, tough, and needs to happen quickly,” he said.Belarus’s Bonds Tumble (9:30 a.m.)Worries over potential sanctions are scaring away bond investors. Belarus’s dollar bonds due 2031 tanked early on Monday, pushing yields up 23 basis points to a one-month high of 7.48%. The bonds traded at a yield of above 8% in August after authorities cracked down on protesters following Lukashenko’s claim to a landslide election victory.Flights Avoid Belarus (9:25 a.m.)Wizz Air Holdings Plc, Eastern Europe’s biggest discount carrier, said it has rerouted a service from the Ukrainian capital Kyiv to Tallinn in Estonia to avoid Belarusian airspace. A spokesman said in an email that the Budapest-based company is “continuously monitoring and evaluating the situation.”Latvia’s national carrier Airbaltic has decided to avoid Belarusian air space “for the time being,” Latvian Transport Minister Talis Linkaits said in interview with Latvijas Radio.Poland to Call for More Sanctions Against Lukashenko (9:22 a.m.)Belarus’s neighbor, Poland, will propose new sanctions against Lukashenko’s government at Monday’s EU meeting, according to Deputy Foreign Minister Pawel Jablonski. He declined to specify the type of measures Warsaw will seek, saying the government wants to consult with EU partners first.(An earlier version of this story corrected the spelling of “Minsk” in first bullet)More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. Business Yahoo Finance 210524 12h24m Here is one big inflation risk not many people are thinking about Beware of upside inflation risks, warns Goldman Sachs chief economist Jan Hatzius on Yahoo Finance Live. U.S. Reuters 210524 12h21m U.S. administers nearly 287 mln doses of COVID-19 vaccines - CDC The United States has administered 286,890,900 doses of COVID-19 vaccines in the country as of Monday morning and distributed 357,250,475 doses, the U.S. Centers for Disease Control and Prevention said. The number of administered doses is up from the 285,720,586 vaccine doses the CDC said had gone into arms by Sunday. CDC said 163,907,827 received at least one dose, while 130,615,797 people are fully vaccinated as of Monday. Politics Bloomberg 210524 11h57m Biden Directs $1 Billion for Severe Weather Preparedness (Bloomberg) -- President Joe Biden announced on Monday a doubling of federal spending on preparations for severe weather events, the president’s latest move to put climate change at the center of his domestic agenda.The administration will provide $1 billion this year to state, local and tribal governments to prevent damage from floods, hurricanes, wildfires and other natural disasters, the White House said in a statement. Biden is also directing the National Aeronautic and Space Administration to collect more advanced climate data.“We all know these storms are coming, and we’re going to be prepared,” Biden said during a visit to the Federal Emergency Management Agency’s headquarters. “We have to be ready.”The president has pledged to address climate change, including a push to build roads, bridges and seaports better able to withstand storms that are increasing in severity due to global warming. The approach stands in contrast to the views of President Donald Trump, who called climate change a “hoax” and disputed its connection to extreme weather events.The money will come from funding already allocated for 2021 and will be distributed through the Building Resilient Infrastructure and Communities program. The announcement comes one week after Biden signed an executive order directing the government come up with a strategy to measure the risks climate change poses to public and private financial assets.Read more: Hurricanes to Pound Atlantic in Active Season, U.S. Says Forecasters believe 2021 will have another overactive hurricane season. The National Oceanic and Atmospheric Administration predicted as many as 20 storm systems could be named this year. Of those, six to 10 would develop into hurricanes, and three to five would become major storms with winds of 111 miles per hour or more.A storm is named when its winds reach 39 miles per hour (63 kilometers per hour) and an average season has 14 such systems.The Atlantic Ocean has produced one storm so far this year with Tropical Storm Ana emerging to the east of Bermuda over the weekend. The short-lived system has already fallen apart, but it is the record seventh year in a row storms have begun before the official June 1 start of the six-month season.Atlantic storms are closely watched because they can disrupt global energy, agriculture, and insurance markets. The Gulf of Mexico is home to about 16% of the U.S.’s crude oil production and 2% of its gas output. In addition, about 48% of American refining capacity is located along the Gulf Coast, and Florida is the world’s second-largest source of orange juice.In addition to that, trillions of dollars of real estate from Mexico to Maine are vulnerable to hurricane strike.As the world’s oceans have warmed, storms have become more destructive. Last year, a record 30 storms formed in the Atlantic, which left more than 400 people dead and caused over $40 billion in damage and losses across North America. The National Hurricane Center resorted to using Greek letters to designate storms because so many took shape last year.Earlier: Biden Targets Louisiana Bridge in Infrastructure Sales PitchBiden’s infrastructure proposal includes $50 billion for improving resilience across the electric grid, transportation networks and cities and part of the money would go toward retrofitting buildings to make them better able to handle the effects of climate change.(Updates with Biden comment 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. Howell date : 210524 12h12m16s Politics Bloomberg 210524 11h58m Biden Directs $1 Billion for Severe Weather Preparedness (Bloomberg) -- President Joe Biden announced on Monday a doubling of federal spending on preparations for severe weather events, the president’s latest move to put climate change at the center of his domestic agenda.The administration will provide $1 billion this year to state, local and tribal governments to prevent damage from floods, hurricanes, wildfires and other natural disasters, the White House said in a statement. Biden is also directing the National Aeronautic and Space Administration to collect more advanced climate data.“We all know these storms are coming, and we’re going to be prepared,” Biden said during a visit to the Federal Emergency Management Agency’s headquarters. “We have to be ready.”The president has pledged to address climate change, including a push to build roads, bridges and seaports better able to withstand storms that are increasing in severity due to global warming. The approach stands in contrast to the views of President Donald Trump, who called climate change a “hoax” and disputed its connection to extreme weather events.The money will come from funding already allocated for 2021 and will be distributed through the Building Resilient Infrastructure and Communities program. The announcement comes one week after Biden signed an executive order directing the government come up with a strategy to measure the risks climate change poses to public and private financial assets.Read more: Hurricanes to Pound Atlantic in Active Season, U.S. Says Forecasters believe 2021 will have another overactive hurricane season. The National Oceanic and Atmospheric Administration predicted as many as 20 storm systems could be named this year. Of those, six to 10 would develop into hurricanes, and three to five would become major storms with winds of 111 miles per hour or more.A storm is named when its winds reach 39 miles per hour (63 kilometers per hour) and an average season has 14 such systems.The Atlantic Ocean has produced one storm so far this year with Tropical Storm Ana emerging to the east of Bermuda over the weekend. The short-lived system has already fallen apart, but it is the record seventh year in a row storms have begun before the official June 1 start of the six-month season.Atlantic storms are closely watched because they can disrupt global energy, agriculture, and insurance markets. The Gulf of Mexico is home to about 16% of the U.S.’s crude oil production and 2% of its gas output. In addition, about 48% of American refining capacity is located along the Gulf Coast, and Florida is the world’s second-largest source of orange juice.In addition to that, trillions of dollars of real estate from Mexico to Maine are vulnerable to hurricane strike.As the world’s oceans have warmed, storms have become more destructive. Last year, a record 30 storms formed in the Atlantic, which left more than 400 people dead and caused over $40 billion in damage and losses across North America. The National Hurricane Center resorted to using Greek letters to designate storms because so many took shape last year.Earlier: Biden Targets Louisiana Bridge in Infrastructure Sales PitchBiden’s infrastructure proposal includes $50 billion for improving resilience across the electric grid, transportation networks and cities and part of the money would go toward retrofitting buildings to make them better able to handle the effects of climate change.(Updates with Biden comment 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. Business Yahoo Finance 210524 11h56m St. Louis Fed President James Bullard speaks with Yahoo Finance [Transcript] A full transcript of St. Louis Fed President James Bullard's interview with Yahoo Finance on May 24, 2021. World Bloomberg 210524 11h33m Merkel Says Minsk’s Explanations Aren’t Credible: Belarus Update (Bloomberg) -- European Union leaders are debating possible measures against Belarus, a day after the nation forced the landing of a Ryanair Holdings Plc plane and arrested a journalist on board.The 27 leaders are considering further sanctions against President Alexander Lukashenko’s administration at the two-day summit in Brussels, which got underway at 7 p.m. German Chancellor Angela Merkel called the incident “without precedent” and said explanations weren’t credible.Potential measures could also include suspending flights over Belarus, banning the country’s national airline from landing at EU airports and blocking ground transit into the bloc from Belarus, according to a person familiar with the summit preparations.For now, even as Ryanair calls the interception an “act of aviation piracy,” the Irish carrier -- like many other airlines -- is still overflying Belarus airspace.Read More: How Belarus Snatched a Dissident Off a Ryanair Plane From GreeceKey Developments:Belarusian journalist removed from plane in MinksU.S., EU and U.K. leaders condemn actions by authorities in BelarusRussia defends Belarus, its closest allyFlights over Belarus airspace continueAll times are Central European Time.Von Der Leyen Says EU Preparing ‘Very Strong Answer’ (7:32 p.m.) Ursula von der Leyen, head of the EU’s executive arm, pledged that the bloc will ensure “a very strong answer because it is outrageous behavior and Lukashenko and his regime have to understand this will have serious consequences.”On her way into the summit, the chief of the European Commission said leaders will explore “sanctions against individuals that are involved in this hijacking but also sanctions against business and economic entities that are financing this regime. And we are looking into sanctions against the aviation sector in Belarus.”Von der Leyen said a previously prepared 3 billion-euro ($3.7 billion) investment and economic package by the EU “is on hold and frozen until Belarus turns democratic.”Belgian Prime Minister Alexander De Croo told reporters before the meeting that the bloc would act quickly.“This is a flight between two European capitals where European citizens have been used as hostages in an illegal arrest,” he said. “We will propose rapid, swift and severe measures are being taken to make it very clear that something like this is not being accepted.”Merkel Calls for a Ban on Overflights (6:42 p.m.)On her way into the summit, German Chancellor Angela Merkel called for further sanctions against Belarusian officials and a ban on overflights.She called the actions of Belarus authorities “without precedent” and said their explanations were “totally uncredible.”The White House Demands an Immediate Investigation (6:42 p.m.)The White House demanded an international investigation of Belarus’s forced landing of the Ryanair plane, calling it an “affront” by Lukashenko’s government.“This was a shocking act, diverting a flight between two EU member states for the apparent purpose of arresting a journalist,” White House Press Secretary Jen Psaki told reporters on Monday. “It constitutes a brazen affront to international peace and security by the regime. We demand an immediate international transparent and credible investigation of this incident.”She said the U.S. government is “in touch” with allies about the incident, and the U.S. ambassador to Belarus has conveyed the Biden administration’s concerns “directly.” White House National Security Adviser Jake Sullivan also “raised our strong concerns” about Belarus’s action with his Kremlin counterpart. Russia is Belarus’s closest ally.Leaders Begin Arriving at Summit in Brussels (6:15 p.m.)EU leaders are expected to use the following wording in their joint communique on Belarus, according to a senior diplomat familiar with the ongoing drafting of the text:They’ll condemn the forced landing and call for release of Raman Pratasevich and Sofia Sapega.Call for an investigation of this “unprecedented and unacceptable incident”Vow “to adopt additional listings as soon as possible on the basis of the relevant sanctions framework”Call on all EU-based carriers to avoid overflight of BelarusTask their ministers “to adopt the necessary measures to ban overflight of EU airspace by Belarusian Airlines and prevent access to EU airports”Transport Lobby Says Avoiding Belarus Airspace Difficult (6:02 p.m.)It could be complicated for airlines to avoid Belarusian airspace given its location and the fact that there are other restricted flight areas nearby, according to Director General of the International Air Transport Association Willie Walsh. He told Bloomberg Television’s Guy Johnson and Alix Steel that airlines that are still flying over Belarus will have assessed the risk.“We do have to strongly condemn the actions of the government of Belarus,” Walsh said. “What they did on Sunday, intercepting a commercial civil aircraft, clearly put the passengers and crew of that aircraft at risk. Forcing them to divert is unacceptable behavior by any government.”U.K. Summons Belarus Ambassador (6:02 p.m.)The U.K. summoned the Belarusian ambassador to London to explain the forced landing of a commercial plane and arrest of journalist Raman Pratasevich, according to Foreign Secretary Dominic Raab.Raab told Parliament on Monday that the actions by Belarus were an “egregious and extraordinary departure from international law.”“It’s very difficult to believe that this kind of action could’ve been taken without at least the acquiescence of the authorities in Moscow,” Raab said.U.K. Suspends Operating Permit of Belarus Airline (6:02 p.m.)Raab told Parliament the U.K. has suspended the operating permit on the Belarusian airline Belavia. He added that the Civil Aviation Authority has been instructed not to grant any further ad hoc permits for carriers between the U.K. and Belarus, and to request airlines not to venture into Belarusian airspace.Belarus Says Bomb Threat Led to Forced Landing (6:02 p.m.)Belarus grounded the Ryanair flight after receiving an emailed bomb threat signed by people claiming to be Hamas fighters, Artiom Sikorskiy, director of aviation at the country’s Transportation Ministry, said during an online briefing Monday.The message included demands for Israel to stop fighting in Gaza and the EU to withdraw support for Israel, and was composed in English, Sikorskiy said. The bomb was allegedly set to explode over Lithuania’s capital, Vilnius.The anonymous email to the Minsk airport was sent just days after the Israel-Palestine truce sparked celebrations in Gaza.Michel to Push for Concrete EU Measures (4:45 p.m.)European Council President Charles Michel will push for EU leaders to decide on measures against Belarus when they meet for dinner Monday night at the start of a two-day summit.“What happened yesterday is an international scandal. Lives of European civilians were at risk,” Michel said as he arrived at the summit building. “This is not acceptable and this is why we put the debate on sanctions on the table of the European Council.”“We are preparing different options, different possible measures and I hope tonight we can take decisions on that,” he added.Schroders Says Putin Unlikely to Jeopardize Biden Summit (4:45 p.m.)“The developments over the weekend are obviously negative and we will await a European response,” Schroders money manager James Barrineau said by email from New York. “We doubt Putin will want to jeopardize his summit with Biden over this issue, but it does not help the overall tone of the relationship of Russia with Europe.”Schroders has a “very small” position in Belarus, and for now does not expect implications for Russian assets from the forced landing of the Ryanair plane in Minsk, he said.Germany Summons Belarus Ambassador (4:29 p.m.)Germany summoned the Belarus ambassador to the foreign ministry in Berlin Monday evening to explain why the country forced a Ryanair jet to land in Minsk. Foreign Minister Heiko Maas called the previous explanations from Alexander Lukashenko’s regime “absurd and not credible.”“We need clarity about what really happened on board and on the ground yesterday,” Maas said in a statement. “And we need clarity about the well-being of Raman Pratasevich and his partner, who must be released immediately.”Lithuania Urges Its Citizens to Avoid Belarus (4:29 p.m.)The Lithuanian foreign ministry urged its nationals not to travel to Belarus and recommended those currently in the neighboring country to leave, according to a statement. The incident with the Ryanair plane demonstrates “a threat to security and lives of individuals,” the ministry said.Lufthansa Flight Leaves Minsk With all Passengers (3:42 p.m.)Lufthansa flight LH1487 from Minsk to Frankfurt took off at 4:21 p.m. local time, according to FlightRadar24, 2 hours after its scheduled time of departure. The airline had earlier said that it was cooperating with local authorities who were “searching the aircraft again before departure and subjecting the passengers to another security check” after receiving a security alert during boarding.All 51 people schedule to depart on the flight were on board, according to a Lufthansa spokesperson.Tsikhanouskaya Calls for Belarus Sanctions (3:28 p.m.)Exiled Belarus opposition leader Svetlana Tsikhanouskaya called for sanctions against the country during a Monday phone call with EU foreign policy chief Josep Borrell. She is scheduled to hold a call later in the day with members of President Joe Biden’s administration.Tsikhanouskaya also said the whereabouts of the detained journalist Raman Pratasevich are unknown and his lawyer is unable to contact him. The journalist’s girlfriend, who is a Russian citizen, is being held in a Minsk prison and has been refused assistance from the Russian consulate.Lufthansa Flight From Minsk Delayed by Threat (3:02 p.m.)Lufthansa flight LH1487 from Minsk to Frankfurt was delayed following a “security alert,” the German airline said in a statement. The Minsk airport said on its Telegram channel that it had received an anonymous email about a planned “terrorist attack.” Lufthansa said 51 passengers, including five crew members, were on board the plane.“We are cooperating with the authorities, who are searching the aircraft again before departure and subjecting the passengers to another security check,” Lufthansa said on Monday. The search includes unloading all suitcases and cargo.Czech Premier Says EU Must Be Tough (2:50 p.m.)The proposals for discussion about EU’s response include banning Belarus airlines from landing in the EU or suspending flights over Belarus’s airspace, Czech Prime Minister Andrej Babis said. He said that according to available information, there were four Russian citizens on the Raynair flight “who probably had a lot to do with this unbelievable act.”“Europe’s response must be tough,” Babis told reporters before departing to EU summit.Passenger Number Confusion (2:40 p.m.)Lithuania’s criminal police said on Monday that 121 of the 126 passengers who left Athens on the flight arrived in Vilnius. On Sunday, both Greece and Lithuania said 171 passengers and crew were on the flight, which Lithuania said Monday was the number of reservations. There was also confusion over infant passengers, who didn’t require tickets, and some boarding passes that weren’t digital. Ryanair hasn’t confirmed the numbers.Lithuania’s transport member also said the country would ban flights to and from Belarus airspace starting at 3 a.m. on Tuesday. The ban will affect 26 flights a day. Lithuania’s neighbor Poland will propose at the EU summit on Monday that all flights between the bloc and Belarus be halted.Poland Wants to Halt All Flights Between EU and Belarus (1:55 p.m.)Poland has come as one of the strongest voices demanding firm action. At the meeting of leaders in Brussels Prime Minister Mateusz Morawiecki will propose halting all flights between EU and Belarus.Belarusian Activists Ask EU For Help (1:50 p.m.)Holding a placard reading “SOS,” Belarusian activists in Poland appealed to the EU for help. Standing in front of Belarus embassy in Warsaw, Nexta founder and blogger Stsiapan Putsila said he’s received “more than a thousand threats” since Sunday. “We can’t stay silent,” said Jana Shostak, another activist.Police Revise Passenger Numbers (1:40 p.m.)According to Lithuania’s criminal police, 121 of the 126 passengers who left Athens on the flight arrived in Vilnius. The captain of the airliner consulted with Ryanair’s management before deciding to divert to Minsk. On Sunday, both Greece and Lithuania said 171 passengers and crew were on the flight.Poland Increases Protection of Activists (1:30 p.m.)Polish Deputy Foreign Minister Pawel Jablonski said on Monday his country was setting up “special protection” for activists on Polish territory who “could be in the cross-hairs of Belarusian or Russian services.”Raman Pratasevich, arrested after the Ryanair plane was diverted to Minsk, worked for Nexta, a media group registered and run out of Warsaw.Jablonski urged activists to avoid contact with Belarus as “we can’t tell what the regime is capable of.”France Says All Options Being Considered (1:20 p.m.)“Nothing is off the table,” a French diplomat told journalists when asked about possible punitive measures against Belarus.In addition to sanctions targeting Belarusian officials and companies, the EU is mulling the suspension of overflights of European airlines over Belarus, a landing ban for flag carrier Belavia in European airports, and the suspension of transits (including land) from Belarus to the EU, the French diplomat added, asking not to be named in line with policy.Ryanair Is Flying Over Belarus Today (1:10 p.m.)Flight FR3340 from Paphos, Cyprus, is scheduled to land at Talinn, Estonia, at 2:30 p.m. local time. The route takes the plane directly across Belarus territory, highlighting the mixed messaging coming out of Europe in response to Sunday’s incident.The airspace over Belarus is part of a major route for flights between Asia and Europe, with some carriers including Deutsche Lufthansa AG and cargo hauler FedEx Corp. continuing to fly over the country on Monday. Airlines have routed traffic over Belarus to avoid the restive eastern Ukraine region that’s been off-limits since a Malaysian Airlines Boeing 777 jet was shot down there in 2014, killing 298 people.Poland Orders Probe (12:20 p.m.)Poland’s state prosecutor said it has ordered an investigation into the landing because the Ryanair jet was registered in Poland and therefore falls under Polish jurisdiction.Estonia to Raise Issue at UN Security Council (12:00 p.m.)Estonia plans to raise the Belarus issue at the Security Council and has already started consultations to have a discussion, public broadcaster ERR cited the country’s foreign minister, Eva-Maria Liimets, as saying.Ryanair Cooperating with EU, NATO (11:50 a.m.)The diversion of the Ryanair plane to Minsk on Sunday was an “act of aviation piracy,” the airline said in a statement today.Ryanair said it was “fully cooperating” with the EU safety and security agencies as well as NATO, and wouldn’t comment further due to security reasons.Kremlin Says U.S.-Russia Summit Plans Not Affected (11:45 a.m.)Tensions between Moscow’s closest ally and the West over Minsk’s forcing of a Ryanair jet to land won’t affect Russia’s efforts to arrange a summit meeting between President Vladimir Putin and his U.S. Counterpart, Joe Biden, Kremlin spokesman Dmitry Peskov said.“I wouldn’t combine all this into a single system,” Peskov told reporters on a conference call. “These are different things, after all.”Peskov declined to comment on the details of the case, including on whether Belarus gave Russia advance warning of its decision to force the plane to land or whether Moscow’s agents were involved. “Our special services are in the closest possible contact,” he said, adding that he doesn’t have detailed information about the Ryanair jet.Russia Calls Western Reaction ‘Shocking’ (11:15 a.m.)Western countries are showing double standards, according to Russian Foreign Ministry spokeswoman Maria Zakharova. “It’s shocking that the West is calling the incident in Belarus’s airspace ‘shocking,’” she wrote in a Facebook post.Zakharova cited past examples of what she said were western governments forcing planes to land, such as a 2013 episode when the plane of Bolivian President Evo Morales had to land in Austria as the U.S. searched for Edward Snowden, as evidence that the U.S. and its allies use the same tactics.U.K. Joins Calls for Sanctions (10:40 a.m.)Foreign Secretary Dominic Raab added to the voices calling for further sanctions against Belarus and the immediate release of Protasevich. In a statement, Raab condemned the arrest, adding “Mr Lukashenko must be held to account for his outlandish actions.”Russian Senator Defends Belarus (10:35 a.m.)“Formally, there was a bomb threat, so everything was done properly,” Vladimir Dzhabarov, first deputy chairman of the International Affairs committee in the upper house of parliament, said in a phone interview Monday. “I don’t see anything unusual or unacceptable in the actions of the Belarusian authorities.”The arrest of Raman Pratasevich, the journalist, was justified, he said. “This person was sitting abroad and criticizing his homeland,” he said. “It’s a warning to Tsikhanouskaya,” he said, referring to exiled opposition leader Sviatlana Tsikhanouskaya.EU Mulls Sanction Options (10:25 a.m.)Of the possible options for EU action, sanctions against individuals and entities would likely be the simplest, according to a senior official close to the European talks.Other options, such as the suspension all flights by EU airlines over Belarus and the suspension of all transit -- including ground travel -- between Belarus and the EU, would trigger increased costs for European companies, the official said.‘State-Sponsored Hijacking’ (10:10 a.m.)“This was a case of state-sponsored hijacking,” Ryanair CEO Michael O’Leary said in comments broadcast by RTE Radio. The airline has to do a “detailed debrief today with the NATO and EU authorities” after the incident, which he said saw passengers and crew held under armed guard.It appears the intent of Belarusian authorities was to remove a journalist and his traveling companion, O’Leary said. “We believe there was also some KGB agents offloaded off the aircraft as well,” he said.Irish Minister Calls for Tough EU Response (10:00 a.m.)“This was effectively aviation piracy, state sponsored,” Irish foreign minister Simon Coveney told RTE Radio. The EU’s response “has to be clear, tough, and needs to happen quickly,” he said.Belarus’s Bonds Tumble (9:30 a.m.)Worries over potential sanctions are scaring away bond investors. Belarus’s dollar bonds due 2031 tanked early on Monday, pushing yields up 23 basis points to a one-month high of 7.48%. The bonds traded at a yield of above 8% in August after authorities cracked down on protesters following Lukashenko’s claim to a landslide election victory.Flights Avoid Belarus (9:25 a.m.)Wizz Air Holdings Plc, Eastern Europe’s biggest discount carrier, said it has rerouted a service from the Ukrainian capital Kyiv to Tallinn in Estonia to avoid Belarusian airspace. A spokesman said in an email that the Budapest-based company is “continuously monitoring and evaluating the situation.”Latvia’s national carrier Airbaltic has decided to avoid Belarusian air space “for the time being,” Latvian Transport Minister Talis Linkaits said in interview with Latvijas Radio.Poland to Call for More Sanctions Against Lukashenko (9:22 a.m.)Belarus’s neighbor, Poland, will propose new sanctions against Lukashenko’s government at Monday’s EU meeting, according to Deputy Foreign Minister Pawel Jablonski. He declined to specify the type of measures Warsaw will seek, saying the government wants to consult with EU partners first.More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. U.S. Reuters 210524 11h32m GRAPHIC-U.S. reports lowest number of new COVID-19 cases in nearly a year The United States last week reported the lowest number of new COVID-19 cases in nearly a year, with new infections dropping 26% from the previous seven days to just under 180,000, according to a Reuters analysis of state and county data. About 39% of the country's population has been fully vaccinated as of Sunday, and 49% has received at least one dose of a COVID-19 vaccine, according to the U.S. Centers for Disease Control and Prevention. In the past seven days, an average of 1.8 million vaccine doses were administered per day, down from a peak of 3.1 million shots per day in April. Howell date : 210524 11h41m39s U.S. Reuters 210524 11h31m GRAPHIC-U.S. reports lowest number of new COVID-19 cases in nearly a year The United States last week reported the lowest number of new COVID-19 cases in nearly a year, with new infections dropping 26% from the previous seven days to just under 180,000, according to a Reuters analysis of state and county data. About 39% of the country's population has been fully vaccinated as of Sunday, and 49% has received at least one dose of a COVID-19 vaccine, according to the U.S. Centers for Disease Control and Prevention. In the past seven days, an average of 1.8 million vaccine doses were administered per day, down from a peak of 3.1 million shots per day in April. Business Bloomberg 210524 11h22m Bank of England Plays Down Risk of Runaway U.K. Inflation (Bloomberg) -- Bank of England policy makers pushed back against concerns that the U.K.’s rapid economic rebound from the pandemic will lead to a damaging wave of inflation.The expected acceleration in prices this year will likely be temporary, Governor Andrew Bailey said in testimony to lawmakers Monday. Jon Cunliffe, one of his deputies, said inflation will later return to the central bank’s 2% target as growth slows.While most economists agree, financial markets are betting that the central bank will raise interest rates as early as next year, implying that investors expect the recovery to gain enough momentum to force the BOE’s hand.Monday’s comments come after data showed U.K. inflation more than doubled in April to 1.5%.Market-based inflation expectations are now at their highest since 2008. The so-called 10-year breakeven rate -- a gauge derived from the difference between conventional bond yields and those linked to retail-price inflation -- has risen more than 50 basis points this year.Andy Haldane, the BOE’s outgoing chief economist, has also been sounding the alarm about inflationary risks. He cast the only vote against keeping the central bank’s stimulus unchanged, opting for a reduction on the bond-buying program.Cost PressuresHaldane told lawmakers that inflation represents a bigger risk to the economy than scars on the labor market following the recession.“My sense was that the balance of inflation risks is titled to the upside and therefore justified reducing that degree of accommodation by that 50 billion pounds,” Haldane said, adding that there’s a “better than even chance” that companies facing cost pressures will take advantage of the strong economic rebound to raise prices.Michael Saunders, another policy maker, said he sees risks that inflation would “undershoot the target over time” due to lingering scars from the pandemic.Bailey said policy makers need to watch inflation “very carefully,” though there are no signs that either inflation expectations or price rises are becoming entrenched. He attributed the recent gains to commodity prices and shortages in items such as computer chips.“We hope some of those factors will correct,” he said.(Updates with comment from Haldane from sixth 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. Business Reuters 210524 11h22m Chile's Codelco strikes deal with Microsoft to extend automation at its copper mines Chile's Codelco, the world's largest copper producer, said on Monday it had struck a deal with tech giant Microsoft to fast-track the digitization of its sprawling mining operations, helping it extend automation and improve analytics. The joint project with Microsoft will beef up the company's capacity to make its production processes more efficient and promote "sustainability" within its operations, Codelco said in a statement. Codelco, like many Chilean miners, has fought in recent years to adopt new technologies to boost efficiency and keep down costs at its aging deposits, many of which suffer from declining ore grades. World Bloomberg 210524 11h21m Iran Nuclear Diplomacy Picks Up With Xi-Rouhani Call, IAEA Deal (Bloomberg) -- International efforts to reach a breakthrough over the Iran nuclear accord kicked into higher gear as China’s president spoke with Iran’s leader and Tehran agreed to extend a key nuclear-monitoring pact with United Nations inspectors, buying more time for diplomacy.Iranian President Hassan Rouhani spoke with President Xi Jinping on Monday, with the Chinese leader saying he’ll support Iran’s “reasonable demands” on nuclear issues, according to Chinese state broadcaster CCTV. The two leaders agreed to deepen ties in trade and energy, a key issue if a deal removes restrictions on Iran’s oil exports.Separately, negotiators from the U.S., Iran and European parties to the 2015 nuclear deal are preparing to return to Vienna for talks this week aimed at reviving the accord with a key deadline pushed over the weekend into June, soon after national elections in Iran. U.S. Secretary of State Antony Blinken said getting a deal done is a priority.“The first thing we need to do is put the nuclear problem back in the box,” Blinken said Sunday on “This Week” on ABC News, adding that an agreement would serve as a “platform” for addressing broader concerns about Tehran’s activities in the Mideast. “That’s why we’re committed to trying to see if Iran will come back into compliance with the nuclear agreement.”Blinken may also find time to discuss the Iran talks with Israeli Prime Minister Benjamin Netanyahu, who lobbied hard against the original deal and has called Tehran his country’s biggest threat, when he arrives in Tel Aviv for talks this week about the latest cease-fire with Hamas.A last-minute compromise over the weekend with the International Atomic Energy Agency means Iran will continue storing camera data recorded at key atomic installations for one month, buying time for diplomacy.‘Stopgap Measure’“This temporary technical understanding is a stopgap measure,” IAEA Director General Rafael Mariano Grossi said at a press briefing in Vienna. “It’s something we came up with as a way to avoid flying completely blind.”Diplomats warned last week, after the fourth round of negotiations in Vienna, that failing to extend the monitoring agreement could have scuttled the fragile process that seeks to end a standoff between Tehran and Washington that has roiled oil markets and almost sparked a war between the two sides.“We recommend the negotiating countries to seize the extra opportunity provided by Iran in good faith for the complete lifting of sanctions in a practical and verifiable manner,” Iran’s representative at the IAEA, Kazem Gharib Abadi, said in a tweet.Without Nuclear Deal, How Close Is Iran to a Bomb?: QuickTakeWhile oil markets are braced for an increase in Iranian supply, crude rallied above $64 a barrel after Iran’s Foreign Ministry said earlier on Monday that gaps remain in negotiations involving world powers around the sequencing and verification of sanctions removal.Following the Iranian parliament’s decision last year to restrict some agency access, Tehran reached a temporary monitoring pact with Grossi in February that enabled recorded video material to be temporarily retained.Erasing the material would jeopardize the continuity of inspectors’ knowledge of the nuclear program. Iran and the IAEA have been at loggerheads for months over an investigation into decades-old particles of man-made uranium discovered at undeclared sites. Grossi said he expects to publish an update of that probe next month.Rouhani is eager to restore the nuclear accord and secure the removal of former President Donald Trump’s tough sanctions regime before he leaves office later this year. Reviving the nuclear deal would loosen restrictions on Iranian oil exports, the nation’s main source of foreign currency revenue.More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. Business Bloomberg 210524 11h18m Bitcoin Surges the Most Since February After Weekend Selloff (Bloomberg) -- Bitcoin rebounded from its roller-coaster weekend, with prices on track for the biggest gain in more than three months.The world’s largest cryptocurrency advanced 12% to trade around $37,598 as of 1:17 p.m. in New York. It climbed as high as $38,683 at one point. Digital currencies have been gripped by volatility in the past two weeks, with Bitcoin prices plunging as much as 18% on Sunday.Traders may be feeling more positive as the crypto industry holds one of its biggest conferences of the year this week. Federal Reserve Governor Lael Brainard noted at the Consensus conference that a big issue for central banks with regard to a digital currency is the impact on the financial system.If people can keep digital dollars in a wallet that’s unrelated to a bank account, and easily use that wallet to make payments and transfers, that then undermines the commercial banking system, Brainard said. It could starve the banks of deposits, which of course are vital for making loans, she noted.Bridgewater’s Ray Dalio said there is little incentive right now to hold dollars with no interest being paid. Eventually people will go to “almost anything else” -- stocks, gold, Bitcoin and real estate, he said during the conference webcast.Meanwhile, in a separate panel at the virtual conference, Wyoming Senator Cynthia Lummis said Bitcoin was a “friendly asset that everybody can hold,” and added that she sees it as “leveling the playing field.” And when it comes to government or central-bank backed digital currencies, “we have to compete with China,” Lummis said. “We want to make sure that we continue to be strong in innovation in the digital-asset space.”“Love or hate it, Bitcoin is impacting markets,” said Amy Wu Silverman, equity derivatives strategist at RBC Capital Markets, in a note Sunday. “What is Bitcoin—a currency? A 1-for-1 manifestation of Elon Musk’s thoughts? A ‘factor’ of momo+meme+speculation+angry Gen Z’s? Like a tween Justin Bieber, you don’t know what Bitcoin will be yet -- but you have a feeling it will be big.”Ether, the second-largest token, also rebounded on Monday, jumping more than 23% at one point Monday to about $2,559.The extreme volatility of late has prompted analysts to try guessing the outlook for digital currencies, with a JPMorgan Chase & Co. team saying it’s premature to call the end of the Bitcoin selloff. Goldman Sachs Group Inc. signaled that extreme swings hamper crypto’s appeal for institutional investors.(Updates prices throughout, adds Lummis comments)More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. Business Yahoo Finance 210524 11h13m Bullard: Fed 'not quite there yet' to start taper talk St. Louis Fed President James Bullard said Monday that the central bank is not yet ready to pull back on its aggressive monetary stimulus, but could be ready soon. Business Yahoo Finance Video 210524 11h07m St. Louis Fed President Bullard: Many cryptocurrencies are 'worthless' Yahoo Finance reporter Brian Cheung joins the Yahoo Finance Live panel with an exclusive interview with Federal Reserve Bank of St. Louis President James Bullard. Howell date : 210524 11h11m02s Business Bloomberg 210524 11h04m Vonovia Is Said in Talks on $23 Billion Deutsche Wohnen Deal (Bloomberg) -- German residential property firm Vonovia SE is in advanced talks on a potential acquisition of rival Deutsche Wohnen SE for about 19 billion euros ($23 billion) in what would be the biggest-ever takeover in European real estate, people with knowledge of the matter said.Vonovia is discussing a friendly purchase of Deutsche Wohnen for about 53 euros per share in cash, according to the people, who asked not to be identified because the information is private. The companies are prepared to address political and tenant concerns in Berlin as part of any transaction, the people said.A deal for Deutsche Wohnen, valued at 28 billion euros including debt at Friday’s close, would rank as the year’s biggest European takeover and the largest acquisition of a German company in about four years, data compiled by Bloomberg show. It would reshape the country’s property industry, bringing together the two largest residential landlords with control of more than 500,000 apartment units.While an agreement could be reached as soon as this week, there’s no certainty the negotiations will lead to a transaction, according to the people. Representatives for Vonovia and Deutsche Wohnen weren’t immediately available for comment during a German public holiday.Shares of Deutsche Wohnen were up 9.7% on the Tradegate platform at 6:34 p.m. Monday in Frankfurt, giving the company a market value of about 17.6 billion euros, after earlier jumping as much as 11%. Vonovia fell as much as 1.9% on Tradegate.German property companies have faced rising public pressure over the past few years over high prices, particularly in the nation’s capital. A combination between Vonovia and Deutsche Wohnen would enable significant cost savings and free up the firms to offer concessions to address political concerns, the people said.Deutsche Wohnen faced a brief respite after a mid-April decision by the German constitutional court to overturn a controversial rent freeze in Berlin, where the company’s apartments are located. The company had a net asset value per share of 52.50 euros at the end of March, according to its latest results.The negotiations mark the third time Vonovia has tried to acquire Deutsche Wohnen. A previous attempt failed in February 2016 after Vonovia couldn’t win enough support from Deutsche Wohnen investors. Deutsche Wohnen called that bid hostile and not in the best interests of shareholders.Vonovia brought on advisers early last year to again consider the feasibility of a transaction, Bloomberg News reported at the time. In the end, it decided not to move forward with a bid.Any combination would require alignment between Vonovia Chief Executive Officer Rolf Buch and his counterpart at Deutsche Wohnen, Michael Zahn, who clashed over price during the failed pursuit about five years ago. Buch has built Bochum-based Vonovia into a European property heavyweight through several acquisitions, including the 2019 purchase of Swedish landlord Hembla AB and a 2016 deal for Austrian developer Conwert Immobilien Invest SE.(Updates with Tradegate share move in fifth 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. Business Bloomberg 210524 11h01m Stocks Climb as Inflation Fears Ebb; Bitcoin Jumps: Markets Wrap (Bloomberg) -- Stocks climbed, led by technology companies, as inflation anxiety appeared to be easing. Bitcoin headed toward its biggest surge since February, rebounding from a weekend rout.All 11 groups in the S&P 500 advanced, while the Nasdaq 100 outperformed major equity benchmarks amid a rally in giants such as Apple Inc., Amazon.com Inc. and Google’s parent Alphabet Inc. The world’s largest cryptocurrency soared after plunging as much as 18% on Sunday. Most base metals were under pressure, with iron ore and steel sinking as China stepped up its fight against soaring commodity prices.While several analysts are warning it may be too early to signal the all-clear on inflation pressures, weaker-than-expected economic data have helped quell investor worries. Rates on 10-year breakevens -- a market gauge of inflation expectations over the next decade -- fluctuated after the biggest weekly drop since September. Federal Reserve Governor Lael Brainard said she expected to see prices rise as the economy reopens -- but played down the risk it could lead to a persistent overshoot.“The Fed continues its wait-and-see posture -- which added wind beneath the tech sector’s wings,” said Chris Larkin, managing director of trading and investing product at E*Trade Financial. “Stocks head into the final full week of the month trying to break a two-week bull-bear stalemate.”For Tom Essaye, a former Merrill Lynch trader who founded “The Sevens Report” newsletter, inflation fears will remain a headwind for stocks until it becomes clear that price pressures are temporary.“Until then, expect a more volatile market,” he wrote in a note to clients. “But at this point, strong policy support for stocks remains very much in place, and that’s a good thing.”Some other corporate highlights:Virgin Galactic Holdings Inc. soared after the company founded by British billionaire Richard Branson conducted a test flight to space for the first time in more than two years.Beyond Meat Inc. gained as the plant-based meat producer was upgraded to outperform at Bernstein.Here are some events this week:Bank of Indonesia rate decision Tuesday, Reserve Bank of New Zealand policy decision Wednesday, Bank of Korea rate decision Thursday.CEOs of the largest U.S. banks, including JPMorgan and Goldman Sachs, will testify before lawmakers in the Senate Banking and House Financial Services committees Wednesday.U.S. initial jobless claims, GDP, durable goods, pending home sales, Thursday.These are some of the main moves in markets:StocksThe S&P 500 rose 1% as of 1 p.m. New York timeThe Nasdaq 100 rose 1.7%The Dow Jones Industrial Average rose 0.6%The MSCI World index rose 0.7%CurrenciesThe Bloomberg Dollar Spot Index fell 0.2%The euro rose 0.3% to $1.2215The British pound was little changed at $1.4157The Japanese yen rose 0.2% to 108.79 per dollarBondsThe yield on 10-year Treasuries declined one basis point to 1.61%Germany’s 10-year yield declined one basis point to -0.14%Britain’s 10-year yield declined two basis points to 0.81%CommoditiesWest Texas Intermediate crude rose 3.5% to $66 a barrelGold futures rose 0.4% to $1,887 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. Business Bloomberg 210524 11h01m Gupta to Try Sell U.K. Plants Amid Debt Talks With Credit Suisse (Bloomberg) -- GFG Alliance is putting seven of its U.K. plants up for sale as it seeks to reach an agreement with Credit Suisse Group AG to stave off insolvencies of some of its units.Owner Sanjeev Gupta made “significant progress” in weekend talks with the Swiss lender’s asset-management arm to resolve GFG’s exposure with Credit Suisse, the metals group said in an emailed statement Monday.GFG has been seeking to raise new financing to replace some of the $5 billion of loans provided by Greensill Capital since the London-based financial firm collapsed in March. Meanwhile, Credit Suisse, which is trying to recover claims on loans it had made via Greensill, has sought to wind up some of GFG’s British and Australian businesses in court.As part of a restructuring plan for its U.K. operations, GFG will look to sell its Liberty Steel aerospace and special alloys business in Stocksbridge, which supplies customers including Rolls-Royce Holdings Plc, as well as the Aluminium Technologies and Pressing Solutions units. Alvarez & Marsal will run the sale processes, according to the statement.Liberty also said it’s in “advanced discussions” with Credit Suisse to reach a debt standstill for its Australian primary metals unit ahead of a refinancing that would repay the Swiss bank in full.A Credit Suisse spokesman declined to comment.Read more: Credit Suisse Seeks Insolvency for Gupta Trading Unit GFG had been in negotiations to obtain new funding from investment fund White Oak Global Advisors, which said last week it was continuing efforts to refinance the Australian primary metals business “subject to financial due diligence and acceptable governance.”Read more: Gupta Loan Effort Ongoing Despite SFO Probe, White Oak SaysU.K PlantsGupta’s British plants that are being put up for sale employ about 1,500 people. The fate of the plants has been closely watched by politicians, suppliers and unions since funding to GFG dried up earlier this year.“Stocksbridge and its downstream plants are strategically important businesses vital to our country’s defense, energy and aerospace sectors,” union representatives for the National Trade Union Steel Coordinating Committee said in a statement. “The trade unions will hold Sanjeev Gupta to his promise that none of our steel plants will close on his watch.”Gupta bought his first steel mill in the U.K. eight years ago, and is now the country’s third-biggest producer with a dozen sites. Many of his Liberty Steel plants provide products tailored to local manufacturers, potentially leaving customers exposed if they shut down, especially given Brexit trade upheaval.A spokesperson for aerospace trade body ADS said the industry was monitoring the situation and that “a successful sale that secures continuity of supply would be a positive outcome.”Pressure on Gupta was dialed up further this month after the U.K.’s Serious Fraud Office said it was investigating GFG for possible fraud and money laundering, including its Greensill financing.The Bank of England revealed on Monday that it had notified the National Crime Agency and the SFO more than a year ago about its concerns over Wyelands Bank, Gupta’s banking arm in the U.K.Andrew Bailey, governor of the Bank of England, told a parliamentary committee that the banking regulator had first identified problems in late 2018 or early 2019 relating to “a lack of transparency particularly around connected lending in the context of the ultimate beneficial owner, who was Mr. Gupta.”He said that “further concerns” came to light in October-November 2019, triggering a new phase of investigations and leading to the regulator setting out its concerns to the SFO in February 2020.A spokesman for GFG didn’t immediately respond to a request for comment.Wyelands Bank said this month it would be wound up if it can’t find a buyer.(Updates with details on U.K. plants, union and trade body comments; BOE comments at the bottom.)More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. World Reuters 210524 10h57m Indian police visit Twitter office to serve notice about inquiry Indian police said on Monday they visited a Twitter office to serve notice to its country managing director about an investigation into the social media giant's tagging of a post by a ruling party spokesman as "manipulated media". Leaders of Prime Minister Narendra Modi's Bharatiya Janata Party last week shared portions of a document on Twitter they said was created by the main opposition Congress and highlighted government failures in handling the COVID-19 pandemic. Congress complained to Twitter saying the document was fake, after which the U.S. company marked some of the posts - including one by BJP spokesman Sambit Patra - as "manipulated media". Business Bloomberg 210524 10h54m Oil Climbs With Iran Saying Differences Remain on Sanctions Deal (Bloomberg) -- Oil climbed to the highest level in nearly a week after Iran said that gaps remain in negotiations aimed at reaching a deal to end U.S. sanctions on its crude.Futures rose as much as 3.7% in New York with added support from a weaker dollar, which makes commodities priced in the currency more attractive, and a rally in U.S. equities. Iran said there are still differences around the timing of when countries will return to compliance with the original 2015 nuclear agreement, allaying some concern about a rapid ramp-up in the Persian Gulf nation’s output.While the market is anticipating the Islamic Republic’s supply will pick up again by late summer, the demand recovery will be strong enough to absorb it, Goldman Sachs Group Inc. said. The bank expects Brent futures to hit $80 a barrel in the next few months.“Seasonally we’re coming into a strong demand period, overwhelming concerns on supply,” said Peter McNally, global head for industrials, materials and energy at Third Bridge. With the U.S. continuing to reopen, air travel picking up and Europe lifting pandemic-driven lockdowns, “it’s more than likely those barrels can get absorbed.”Talks between Iran and world powers will continue in Vienna this week to resolve outstanding issues. As part of that process, Iran extended a United Nations nuclear inspections agreement, buying diplomats time to revive the landmark deal that would usher in an official return of the Persian Gulf nation to world oil markets.Crude has been largely stuck between $60 and $70 a barrel recently, with concern about returning output counterbalanced by the demand recovery underway in some key markets. Virus cases in the U.S. were below 30,000 every day last week for the first time since June, and drivers are taking to the road again in parts of Europe, helping boost demand in the region.“The economy, especially in the U.S., looks good and people are expecting a big uptick in travel this summer,” said Michael Lynch, president of Strategic Energy & Economic Research. With European demand showing signs of picking up too, the global recovery “appears well in hand.”The discount for U.S. benchmark crude futures against Brent shrank on Monday to its narrowest since January on an intraday basis. The smaller that discount becomes, the less attractive U.S. crude exports are to foreign buyers.Ahead of any agreement on a nuclear deal, Iran has already found buyers for its oil exports, notably China. Those ties may become even stronger, with the leaders of both countries speaking on the phone about Iran expanding its oil sales to China.Still, Goldman isn’t alone in its view on the impact of returning Iranian supply. Citigroup Inc. said it expects only a partial return of the country’s barrels initially. The bank still sees oil hitting the mid-$70s in the third quarter, but said prices could retreat thereafter.Physical markets continue to get a boost from a raft of buying from refiners in Asia. Japan’s Fuji Oil became the latest company to buy Middle Eastern crude on Monday, after a spate of bullish interest last week.More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. Business Bloomberg 210524 10h50m ‘Buy Anything’ Debt Market Sees Private Equity Payday (Bloomberg) -- It’s the latest sign of leveraged mania hitting bondholders: Companies across Europe are piling on debt at the fastest pace in at least four years to enrich their private-equity owners.The controversial practice known as dividend recaps is growing as investors gorge on every credit risk, handing a windfall to buyout pros at Lion Capital LLP, Partners Group and Hellman & Friedman LLC, to name a few.Private equity firms have always borrowed to buy companies. But they’re layering on extra debt to write themselves dividend checks at a time when central banks have driven borrowing costs to all-time lows to help foster a global economic rebound.“If people want to put capital to work they’re just buying anything with a bit of yield, regardless of what proceeds are for,” said Mark Benbow, a high-yield fund manager at Aegon Asset Management. “Perhaps the market is just too complacent or perhaps believes the central bankers will always be there as a backstop. Whatever the reason, these deals are getting done very easily.”More than 10 companies in the region have raised junk bonds this year in part to fund dividends, the highest year-to-date number since 2017, according to data provider 9Fin. Some 13 firms also sold loans to finance payouts in the first quarter of this year, a post-financial crisis high, according to data compiled by Bloomberg.Some of this year’s transactions were rated CCC -- the lowest ranking of junk debt -- and paid relatively higher rates. But viewed alongside decades of history, the deals are still dirt cheap.The dividend payouts are one way for buyout firms to take profits as they wait for the growth rebound to spur higher prices in the IPO market. By issuing dividend recaps they can take a cut now and keep their end investors happy while they bide their time to cash out completely.“You have a lot of private equity involvement in the high-yield market, and sponsors don’t want to necessarily exit businesses now because we haven’t seen the full opening-up trade develop,” said Martin Horne, head of global public fixed income at Barings LLC. “Maybe they wouldn’t get the right multiple if they tried to get a full exit by normal mechanics.”Alain Afflelou SA is the latest example. The French eye-glass retailer skimmed off a portion of bonds sold this month and used some of its own cash to make a 135 million-euro payment to owner Lion Capital, according to Andre Verneyre, Afflelou’s head of financial operations.The senior notes received orders for an excess of three times the amount on sale, indicating that “investors know us very well and are happy to continue with us,” he said. Despite the new debt, gross leverage has remained steady as the company retired older borrowings, Verneyre said.Frozen OutThe deal followed dividend recaps for French real-estate developer Foncia Holding SAS and Swedish security systems maker Verisure Holding AB this year. In the U.S., Verizon Communications Victra tapped investors for a dividend twice in the space of just three months this year. The second $75 million transaction which priced last week was used to fund a $65 million dividend to its private-equity sponsor Lone Star.Yet even in the latest wave of market froth, there’s been pushback from bond investors.Lion Capital failed to pull off a deal to extract dividends from another one of its portfolio holdings, French frozen-food retailer Picard Groupe SAS. Investors demanded higher pricing on the 1.7 billion-euro deal in April and Lion walked away.“We completed Afflelou but pulled Picard because we were being opportunistic and didn’t like the pricing,” said Lyndon Lea, co-founder of Picard’s majority owner Lion Capital. “There was no urgency because the proceeds were for a dividend, which is not time-sensitive.”While the economy powers ahead and companies are growing, servicing the extra debt may not seem like much of a strain. The problem arises when the economic boom comes to an end, and fragile balance sheets are left struggling under the weight of large debt piles and falling revenue. In the U.S., the financial travails of the Payless shoe company were blamed in part on such payouts, and have been the target of criticism from Senator Elizabeth Warren.In the public stock market, companies that have paid shareholder dividends are underperforming those that have been buying back shares. The S&P Europe 350 Dividend Aristocrats Index is up about 20% since the end of October, when the vaccine-fueled stock market rally started, compared with 37% for its buyback equivalent.“It’s easier to keep adding debt when business multiples are so high as the market still thinks there is plenty of equity below the bonds,” said Benbow at Aegon. “Obviously when the cycle turns and the market cheapens up you realize that there is little to no equity left.”(Corrects name of BC Partners to Partners Group in second graph. Original story published on 20 May)More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. Business Reuters 210524 10h49m Fed's balance sheet could reach $9 trillion by end of 2022, NY Fed report estimates The forecasts, issued as part of an annual report conducted by the markets team at the New York Fed, assume that the U.S. central bank continues buying bonds at the current pace of $120 billion a month through the end of 2021. Howell date : 210524 10h40m25s Business Yahoo Finance Video 210524 10h23m Lawmakers clash over infrastructure deal as deadline looms Lawmakers are clashing over Biden's infrastructure deal as the deadline approaches. Yahoo Finance's Jessica Smith shares the details. World Reuters 210524 10h19m UPDATE 1-Pound steadies below $1.42, BoE speakers in focus Britain's pound held within recent ranges on Monday, trading just shy of $1.42 as analysts set their eyes on an address by four Bank of England policymakers to a parliamentary sub-committee. Bank of England Governor Andrew Bailey, in an annual report to parliament's Treasury Committee, said on Monday he does not see long-term implications from an expected pick-up in inflation as the economy emerges from the coronavirus pandemic. Michael Saunders, another BoE policymaker, said that he expected the BoE would need to raise interest rates modestly over the next three years if the economy grew as strongly as forecast. World Bloomberg 210524 10h15m EU Leaders Urged to Act Against Lukashenko: Belarus Update (Bloomberg) -- European Union leaders will begin debating possible measures against Belarus, a day after the nation forced the landing of a Ryanair Holdings Plc plane and arrested a journalist on board.The 27 leaders will consider further sanctions against President Alexander Lukashenko’s administration when the two-day summit kicks off in Brussels at 7 p.m. European Council President Charles Michel called the incident an “international scandal.”Potential measures could also include suspending flights over Belarus, banning the country’s national airline from landing at EU airports and blocking ground transit into the bloc from Belarus, according to a person familiar with the summit preparations.For now, even as Ryanair calls the interception an “act of aviation piracy,” the Irish carrier -- like many other airlines -- is still overflying Belarus airspace.Read More: How Belarus Snatched a Dissident Off a Ryanair Plane From GreeceKey Developments:Belarusian journalist removed from plane in MinksU.S., EU and U.K. leaders condemn actions by authorities in BelarusRussia defends Belarus, its closest allyFlights over Belarus airspace continueAll times are Central European Time.Leaders Begin Arriving at Summit in Brussels (6:15 p.m.)EU leaders are expected to use the following wording in their joint communique on Belarus, according to a senior diplomat familiar with the ongoing drafting of the text:They’ll condemn the forced landing and call for release of Raman Pratasevich and Sofia Sapega.Call for an investigation of this “unprecedented and unacceptable incident”Vow “to adopt additional listings as soon as possible on the basis of the relevant sanctions framework”Call on all EU-based carriers to avoid overflight of BelarusTask their ministers “to adopt the necessary measures to ban overflight of EU airspace by Belarusian Airlines and prevent access to EU airports”Transport Lobby Says Avoiding Belarus Airspace Difficult (6:02 p.m.)It could be complicated for airlines to avoid Belarusian airspace given its location and the fact that there are other restricted flight areas nearby, according to Director General of the International Air Transport Association Willie Walsh. He told Bloomberg Television’s Guy Johnson and Alix Steel that airlines that are still flying over Belarus will have assessed the risk.“We do have to strongly condemn the actions of the government of Belarus,” Walsh said. “What they did on Sunday, intercepting a commercial civil aircraft, clearly put the passengers and crew of that aircraft at risk. Forcing them to divert is unacceptable behavior by any government.”U.K. Summons Belarus Ambassador (6:02 p.m.)The U.K. summoned the Belarusian ambassador to London to explain the forced landing of a commercial plane and arrest of journalist Raman Pratasevich, according to Foreign Secretary Dominic Raab.Raab told Parliament on Monday that the actions by Belarus were an “egregious and extraordinary departure from international law.”“It’s very difficult to believe that this kind of action could’ve been taken without at least the acquiescence of the authorities in Moscow,” Raab said.U.K. Suspends Operating Permit of Belarus Airline (6:02 p.m.)Raab told Parliament the U.K. has suspended the operating permit on the Belarusian airline Belavia. He added that the Civil Aviation Authority has been instructed not to grant any further ad hoc permits for carriers between the U.K. and Belarus, and to request airlines not to venture into Belarusian airspace.Belarus Says Bomb Threat Led to Forced Landing (6:02 p.m.)Belarus grounded the Ryanair flight after receiving an emailed bomb threat signed by people claiming to be Hamas fighters, Artiom Sikorskiy, director of aviation at the country’s Transportation Ministry, said during an online briefing Monday.The message included demands for Israel to stop fighting in Gaza and the EU to withdraw support for Israel, and was composed in English, Sikorskiy said. The bomb was allegedly set to explode over Lithuania’s capital, Vilnius.The anonymous email to the Minsk airport was sent just days after the Israel-Palestine truce sparked celebrations in Gaza.Michel to Push for Concrete EU Measures (4:45 p.m.)European Council President Charles Michel will push for EU leaders to decide on measures against Belarus when they meet for dinner Monday night at the start of a two-day summit.“What happened yesterday is an international scandal. Lives of European civilians were at risk,” Michel said as he arrived at the summit building. “This is not acceptable and this is why we put the debate on sanctions on the table of the European Council.”“We are preparing different options, different possible measures and I hope tonight we can take decisions on that,” he added.Schroders Says Putin Unlikely to Jeopardize Biden Summit (4:45 p.m.)“The developments over the weekend are obviously negative and we will await a European response,” Schroders money manager James Barrineau said by email from New York. “We doubt Putin will want to jeopardize his summit with Biden over this issue, but it does not help the overall tone of the relationship of Russia with Europe.”Schroders has a “very small” position in Belarus, and for now does not expect implications for Russian assets from the forced landing of the Ryanair plane in Minsk, he said.Germany Summons Belarus Ambassador (4:29 p.m.)Germany summoned the Belarus ambassador to the foreign ministry in Berlin Monday evening to explain why the country forced a Ryanair jet to land in Minsk. Foreign Minister Heiko Maas called the previous explanations from Alexander Lukashenko’s regime “absurd and not credible.”“We need clarity about what really happened on board and on the ground yesterday,” Maas said in a statement. “And we need clarity about the well-being of Raman Pratasevich and his partner, who must be released immediately.”Lithuania Urges Its Citizens to Avoid Belarus (4:29 p.m.)The Lithuanian foreign ministry urged its nationals not to travel to Belarus and recommended those currently in the neighboring country to leave, according to a statement. The incident with the Ryanair plane demonstrates “a threat to security and lives of individuals,” the ministry said.Lufthansa Flight Leaves Minsk With all Passengers (3:42 p.m.)Lufthansa flight LH1487 from Minsk to Frankfurt took off at 4:21 p.m. local time, according to FlightRadar24, 2 hours after its scheduled time of departure. The airline had earlier said that it was cooperating with local authorities who were “searching the aircraft again before departure and subjecting the passengers to another security check” after receiving a security alert during boarding.All 51 people schedule to depart on the flight were on board, according to a Lufthansa spokesperson.Tsikhanouskaya Calls for Belarus Sanctions (3:28 p.m.)Exiled Belarus opposition leader Svetlana Tsikhanouskaya called for sanctions against the country during a Monday phone call with EU foreign policy chief Josep Borrell. She is scheduled to hold a call later in the day with members of President Joe Biden’s administration.Tsikhanouskaya also said the whereabouts of the detained journalist Raman Pratasevich are unknown and his lawyer is unable to contact him. The journalist’s girlfriend, who is a Russian citizen, is being held in a Minsk prison and has been refused assistance from the Russian consulate.Lufthansa Flight From Minsk Delayed by Threat (3:02 p.m.)Lufthansa flight LH1487 from Minsk to Frankfurt was delayed following a “security alert,” the German airline said in a statement. The Minsk airport said on its Telegram channel that it had received an anonymous email about a planned “terrorist attack.” Lufthansa said 51 passengers, including five crew members, were on board the plane.“We are cooperating with the authorities, who are searching the aircraft again before departure and subjecting the passengers to another security check,” Lufthansa said on Monday. The search includes unloading all suitcases and cargo.Czech Premier Says EU Must Be Tough (2:50 p.m.)The proposals for discussion about EU’s response include banning Belarus airlines from landing in the EU or suspending flights over Belarus’s airspace, Czech Prime Minister Andrej Babis said. He said that according to available information, there were four Russian citizens on the Raynair flight “who probably had a lot to do with this unbelievable act.”“Europe’s response must be tough,” Babis told reporters before departing to EU summit.Passenger Number Confusion (2:40 p.m.)Lithuania’s criminal police said on Monday that 121 of the 126 passengers who left Athens on the flight arrived in Vilnius. On Sunday, both Greece and Lithuania said 171 passengers and crew were on the flight, which Lithuania said Monday was the number of reservations. There was also confusion over infant passengers, who didn’t require tickets, and some boarding passes that weren’t digital. Ryanair hasn’t confirmed the numbers.Lithuania’s transport member also said the country would ban flights to and from Belarus airspace starting at 3 a.m. on Tuesday. The ban will affect 26 flights a day. Lithuania’s neighbor Poland will propose at the EU summit on Monday that all flights between the bloc and Belarus be halted.Poland Wants to Halt All Flights Between EU and Belarus (1:55 p.m.)Poland has come as one of the strongest voices demanding firm action. At the meeting of leaders in Brussels Prime Minister Mateusz Morawiecki will propose halting all flights between EU and Belarus.Belarusian Activists Ask EU For Help (1:50 p.m.)Holding a placard reading “SOS,” Belarusian activists in Poland appealed to the EU for help. Standing in front of Belarus embassy in Warsaw, Nexta founder and blogger Stsiapan Putsila said he’s received “more than a thousand threats” since Sunday. “We can’t stay silent,” said Jana Shostak, another activist.Police Revise Passenger Numbers (1:40 p.m.)According to Lithuania’s criminal police, 121 of the 126 passengers who left Athens on the flight arrived in Vilnius. The captain of the airliner consulted with Ryanair’s management before deciding to divert to Minsk. On Sunday, both Greece and Lithuania said 171 passengers and crew were on the flight.Poland Increases Protection of Activists (1:30 p.m.)Polish Deputy Foreign Minister Pawel Jablonski said on Monday his country was setting up “special protection” for activists on Polish territory who “could be in the cross-hairs of Belarusian or Russian services.”Raman Pratasevich, arrested after the Ryanair plane was diverted to Minsk, worked for Nexta, a media group registered and run out of Warsaw.Jablonski urged activists to avoid contact with Belarus as “we can’t tell what the regime is capable of.”France Says All Options Being Considered (1:20 p.m.)“Nothing is off the table,” a French diplomat told journalists when asked about possible punitive measures against Belarus.In addition to sanctions targeting Belarusian officials and companies, the EU is mulling the suspension of overflights of European airlines over Belarus, a landing ban for flag carrier Belavia in European airports, and the suspension of transits (including land) from Belarus to the EU, the French diplomat added, asking not to be named in line with policy.Ryanair Is Flying Over Belarus Today (1:10 p.m.)Flight FR3340 from Paphos, Cyprus, is scheduled to land at Talinn, Estonia, at 2:30 p.m. local time. The route takes the plane directly across Belarus territory, highlighting the mixed messaging coming out of Europe in response to Sunday’s incident.The airspace over Belarus is part of a major route for flights between Asia and Europe, with some carriers including Deutsche Lufthansa AG and cargo hauler FedEx Corp. continuing to fly over the country on Monday. Airlines have routed traffic over Belarus to avoid the restive eastern Ukraine region that’s been off-limits since a Malaysian Airlines Boeing 777 jet was shot down there in 2014, killing 298 people.Poland Orders Probe (12:20 p.m.)Poland’s state prosecutor said it has ordered an investigation into the landing because the Ryanair jet was registered in Poland and therefore falls under Polish jurisdiction.Estonia to Raise Issue at UN Security Council (12:00 p.m.)Estonia plans to raise the Belarus issue at the Security Council and has already started consultations to have a discussion, public broadcaster ERR cited the country’s foreign minister, Eva-Maria Liimets, as saying.Ryanair Cooperating with EU, NATO (11:50 a.m.)The diversion of the Ryanair plane to Minsk on Sunday was an “act of aviation piracy,” the airline said in a statement today.Ryanair said it was “fully cooperating” with the EU safety and security agencies as well as NATO, and wouldn’t comment further due to security reasons.Kremlin Says U.S.-Russia Summit Plans Not Affected (11:45 a.m.)Tensions between Moscow’s closest ally and the West over Minsk’s forcing of a Ryanair jet to land won’t affect Russia’s efforts to arrange a summit meeting between President Vladimir Putin and his U.S. Counterpart, Joe Biden, Kremlin spokesman Dmitry Peskov said.“I wouldn’t combine all this into a single system,” Peskov told reporters on a conference call. “These are different things, after all.”Peskov declined to comment on the details of the case, including on whether Belarus gave Russia advance warning of its decision to force the plane to land or whether Moscow’s agents were involved. “Our special services are in the closest possible contact,” he said, adding that he doesn’t have detailed information about the Ryanair jet.Russia Calls Western Reaction ‘Shocking’ (11:15 a.m.)Western countries are showing double standards, according to Russian Foreign Ministry spokeswoman Maria Zakharova. “It’s shocking that the West is calling the incident in Belarus’s airspace ‘shocking,’” she wrote in a Facebook post.Zakharova cited past examples of what she said were western governments forcing planes to land, such as a 2013 episode when the plane of Bolivian President Evo Morales had to land in Austria as the U.S. searched for Edward Snowden, as evidence that the U.S. and its allies use the same tactics.U.K. Joins Calls for Sanctions (10:40 a.m.)Foreign Secretary Dominic Raab added to the voices calling for further sanctions against Belarus and the immediate release of Protasevich. In a statement, Raab condemned the arrest, adding “Mr Lukashenko must be held to account for his outlandish actions.”Russian Senator Defends Belarus (10:35 a.m.)“Formally, there was a bomb threat, so everything was done properly,” Vladimir Dzhabarov, first deputy chairman of the International Affairs committee in the upper house of parliament, said in a phone interview Monday. “I don’t see anything unusual or unacceptable in the actions of the Belarusian authorities.”The arrest of Raman Pratasevich, the journalist, was justified, he said. “This person was sitting abroad and criticizing his homeland,” he said. “It’s a warning to Tsikhanouskaya,” he said, referring to exiled opposition leader Sviatlana Tsikhanouskaya.EU Mulls Sanction Options (10:25 a.m.)Of the possible options for EU action, sanctions against individuals and entities would likely be the simplest, according to a senior official close to the European talks.Other options, such as the suspension all flights by EU airlines over Belarus and the suspension of all transit -- including ground travel -- between Belarus and the EU, would trigger increased costs for European companies, the official said.‘State-Sponsored Hijacking’ (10:10 a.m.)“This was a case of state-sponsored hijacking,” Ryanair CEO Michael O’Leary said in comments broadcast by RTE Radio. The airline has to do a “detailed debrief today with the NATO and EU authorities” after the incident, which he said saw passengers and crew held under armed guard.It appears the intent of Belarusian authorities was to remove a journalist and his traveling companion, O’Leary said. “We believe there was also some KGB agents offloaded off the aircraft as well,” he said.Irish Minister Calls for Tough EU Response (10:00 a.m.)“This was effectively aviation piracy, state sponsored,” Irish foreign minister Simon Coveney told RTE Radio. The EU’s response “has to be clear, tough, and needs to happen quickly,” he said.Belarus’s Bonds Tumble (9:30 a.m.)Worries over potential sanctions are scaring away bond investors. Belarus’s dollar bonds due 2031 tanked early on Monday, pushing yields up 23 basis points to a one-month high of 7.48%. The bonds traded at a yield of above 8% in August after authorities cracked down on protesters following Lukashenko’s claim to a landslide election victory.Flights Avoid Belarus (9:25 a.m.)Wizz Air Holdings Plc, Eastern Europe’s biggest discount carrier, said it has rerouted a service from the Ukrainian capital Kyiv to Tallinn in Estonia to avoid Belarusian airspace. A spokesman said in an email that the Budapest-based company is “continuously monitoring and evaluating the situation.”Latvia’s national carrier Airbaltic has decided to avoid Belarusian air space “for the time being,” Latvian Transport Minister Talis Linkaits said in interview with Latvijas Radio.Poland to Call for More Sanctions Against Lukashenko (9:22 a.m.)Belarus’s neighbor, Poland, will propose new sanctions against Lukashenko’s government at Monday’s EU meeting, according to Deputy Foreign Minister Pawel Jablonski. He declined to specify the type of measures Warsaw will seek, saying the government wants to consult with EU partners first.More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. Politics Reuters 210524 10h14m UPDATE 1-Biden doubles U.S. spending on preparations for extreme weather The United States will double its spending to $1 billion on preparations for extreme weather and other natural disasters as part of the battle against climate change, the White House said on Monday. It issued the statement just ahead of U.S. President Joe Biden's planned visit to the Federal Emergency Management Agency to be briefed on a 2021 hurricane season, which is expected to be above-normal along the Atlantic coast. Business Reuters 210524 10h12m Peloton to build first factory in U.S., targets production in 2023 Peloton has emerged as a pandemic winner as home workouts became popular during the prolonged coronavirus-led lockdowns. The factory will be the latest addition to the company's growing global manufacturing network, which includes third-party partners in Asia and Peloton's own facilities, the company said. Peloton said it would commit about $400 million to the facility and add more than 2,000 jobs over the next few years. Business Bloomberg 210524 10h07m Gold Holds Near Four-Month High as Fund Buying, ETFs Buoy Demand (Bloomberg) -- Gold steadied near the highest in more than four months amid signs that investors are turning more bullish on the precious metal.Hedge funds and other large speculators raised their net-long position in U.S. gold futures and options to the highest since January, government data showed Friday. Holdings in exchange-traded funds backed by bullion have climbed in May, following three months of outflows. Declines in the dollar and bond yields on Monday also helped gold.Gold has posted three straight weekly gains, bringing it closer to wiping out losses for the year after prices slumped in the first three months. The metal has advanced on wobbles in the greenback on Treasury yields, and demand for bullion as a store of value is rising as inflation worries threaten to undercut economic growth. Investors were also weighing the extreme volatility in Bitcoin, which may have lent an added pillar of support.“Gold prices are trending higher as weakness in cryptocurrencies and rising demand for inflation-hedge assets buoyed the appeal of the precious metal,” said Margaret Yang, a strategist at DailyFX. “Recent ETF data showed that investors are stockpiling the yellow metal for the first time since January, underscoring rising appetite.”Spot gold rose 0.2% to $1,884.88 an ounce by 11:23 a.m. in New York, after reaching $1,890.13 last week, the highest since Jan. 8. Silver and platinum also advanced, while palladium fell. “The recent move lower in real rates, accompanied by further U.S. dollar weakness, have been the key drivers of gold’s rebound,” Morgan Stanley analysts led by Susan Bates said in a note on Monday. Still, “we continue to see a risk of a sharper sell-off similar to that seen in 2013 once tapering begins in 2022, but in our base case we assume price remains supported in the $1,600s per ounce until the first Fed rate hike.”Former U.S. Treasury Secretary Lawrence Summers said cryptocurrencies could stay a feature of global markets as something akin to “digital gold,” even if their importance in economies will remain limited. Cryptocurrencies offered an alternative to gold for those seeking an asset “separate and apart from the day-to-day workings of governments,” he said.On Monday, Bitcoin rebounded from its roller-coaster weekend, with prices on track for the biggest gain in more than three months.More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. Business Bloomberg 210524 10h07m Stocks Rise as Inflation Fears Ebb; Bitcoin Surges: Markets Wrap (Bloomberg) -- U.S. stocks climbed, led by technology companies, as inflation anxiety appeared to be easing. Bitcoin headed toward its biggest surge since February, rebounding from a weekend rout.Ten out of the 11 groups in the S&P 500 advanced, while the Nasdaq 100 outperformed major equity benchmarks amid a rally in giants such as Apple Inc., Amazon.com Inc. and Google’s parent Alphabet Inc. The world’s largest cryptocurrency soared after plunging as much as 18% on Sunday. Most base metals were under pressure, with iron ore and steel sinking as China stepped up its fight against soaring commodity prices.While several analysts are warning that it may be early to signal the all-clear on inflation risks, weaker-than-expected economic reports have helped quell investor worries. Rates on 10-year breakevens -- a market gauge of inflation expectations over the next decade -- fluctuated after the biggest weekly drop since September. Meanwhile, Federal Reserve Governor Lael Brainard said she expected to see prices rise as the U.S. economy reopens -- but played down the risk that the potential increase would lead to a persistent overshoot.“The Fed continues its wait-and-see posture -- which added wind beneath the tech sector’s wings,” said Chris Larkin, managing director of trading and investing product at E*Trade Financial. “Stocks head into the final full week of the month trying to break a two-week bull-bear stalemate.”For Tom Essaye, a former Merrill Lynch trader who founded “The Sevens Report” newsletter, inflation fears will remain a headwind for stocks until it becomes clear that price pressures are temporary.“Until then, expect a more volatile market,” he wrote in a note to clients. “But at this point, strong policy support for stocks remains very much in place, and that’s a good thing.”Some other corporate highlights:Virgin Galactic Holdings Inc. soared after the company founded by British billionaire Richard Branson conducted a test flight to space for the first time in more than two years.Coinbase Global Inc. rose as Goldman Sachs Group Inc. recommended buying shares of the cryptocurrency exchange.Beyond Meat Inc. gained as the plant-based meat producer was upgraded to outperform at Bernstein.Here are some events this week:Consensus by CoinDesk brings prominent crypto voices together to discuss NFTs, exchanges and the role of central banks. Fed Governor Lael Brainard and Bridgewater founder Ray Dalio will participate. Through May 27.Bank of Indonesia rate decision Tuesday, Reserve Bank of New Zealand policy decision Wednesday, Bank of Korea rate decision Thursday.CEOs of the largest U.S. banks, including JPMorgan and Goldman Sachs, will testify before lawmakers in the Senate Banking and House Financial Services committees Wednesday.U.S. initial jobless claims, GDP, durable goods, pending home sales, Thursday.These are some of the main moves in markets:StocksThe S&P 500 rose 1.1% as of 12:06 p.m. New York timeThe Nasdaq 100 rose 1.9%The Dow Jones Industrial Average rose 0.6%The Stoxx Europe 600 rose 0.1%The MSCI World index rose 0.7%CurrenciesThe Bloomberg Dollar Spot Index fell 0.1%The euro rose 0.2% to $1.2211The British pound was little changed at $1.4149The Japanese yen rose 0.1% to 108.80 per dollarBondsThe yield on 10-year Treasuries declined two basis points to 1.60%Germany’s 10-year yield declined one basis point to -0.14%Britain’s 10-year yield declined two basis points to 0.81%CommoditiesWest Texas Intermediate crude rose 3% to $65 a barrelGold futures rose 0.4% to $1,887 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. Howell date : 210524 10h09m49s Business Bloomberg 210524 09h53m PG&E to Sell San Francisco Headquarters for $800 Million (Bloomberg) -- PG&E Corp. has reached a deal to sell its iconic San Francisco headquarters to real estate joint-venture Hines Atlas for $800 million as the utility giant moves to cut costs after it emerged from bankruptcy last year.PG&E, which plans to move to Oakland next year, needs approval from state regulators to sell the 1.7 million-square-foot (158,000-square-meter) complex, which includes 77 Beale Street and 245 Market Street, according to a statement Monday.The sale comes as office markets around the globe have been battered by the coronavirus pandemic. One broker estimated in 2019 that PG&E’s headquarters could bring in more than $1 billion. The utility giant is one of the most high-profile companies to leave San Francisco for Oakland, a less expensive city located across San Francisco Bay.Nearly a dozen bids were submitted for the property, according to a person familiar with the matter, who asked not to be identified discussing the private negotiations. That level of interest suggests real estate investors are willing to bet on a rebound for office demand in the city.“It’s a fantastic bet on San Francisco,” said J.D. Lumpkin, executive managing director at commercial real estate brokerage Cushman & Wakefield in San Francisco, who wasn’t involved in the deal. “While San Francisco has taken its lumps through Covid, perhaps more than other cities, there’s a lot of evidence that we will rebound over the next two or three years.”PG&E didn’t immediately respond to a request for comment about the bids. The company’s shares rose as much as 2.1% Monday.Unlike some other large property sales in San Francisco since the pandemic, the complex will require a substantial amount of renovation. It also doesn’t have a tenant in place, so the buyers will have to fill it in a few years once the redevelopment is finished.Also See: KKR Said to Buy $1.08 Billion San Francisco Dropbox Offices San Francisco’s overall office vacancy rate in the first quarter shattered the previous record high hit during the dot-com bust at the turn of the century, according to CBRE Group Inc. That’s pushed rent down and weighed on the value of buildings.The sale price is about $200 million less than expected, Citigroup Inc. utility analyst Ryan Levine wrote in a research note Monday. That raises the prospect that PG&E may need to raise equity this year, he said.Offset BillsPG&E intends to distribute about $400 million from its gain on the sale to customers over five years to offset bill increases as it invests in safety and operational improvements. In an added benefit, most PG&E workers will have shorter commutes to their new office, the company said.CBRE’s San Francisco Capital Markets team brokered the deal.PG&E filed for bankruptcy in early 2019 after collapsing under liabilities from wildfires sparked by its equipment. Though the company exited Chapter 11 last year, it remains burdened by about $42 billion of debt, raising concerns about its financial durability and ability to make the investments required to fire-proof its grid.Hines is one of the biggest private real estate investors and managers in the world, according to its website. Hines Atlas is a joint venture between Hines and another investor, a Hines spokesman said. He declined to name the other investor.(Adds details of bid beginning in fourth 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. Business Yahoo Finance 210524 09h51m Stock market news live updates: Stocks gain as technology shares outperform, Bitcoin recovers some losses Stocks pointed to a higher open Monday morning and looked to recover some of last week's losses. U.S. Bloomberg 210524 09h41m NYC to End Remote-School Option for Students in September (Bloomberg) -- New York Mayor Bill de Blasio said a remote option will no longer be available when public school students return in September.Requiring in-person learning for the roughly 1 million students in the largest U.S. school system represents a big move toward the city’s full reopening. As the end of the school year approaches, most of the city’s students are learning from home.“You can’t have a full recovery without full-strength schools,” de Blasio said Monday on MSNBC. “More and more kids will be vaccinated, we’ve made vaccination available everywhere. It’s really time to go full strength right now.”New York joins neighboring New Jersey in eliminating a virtual option for students in the fall, among the first in the nation to pledge to bring back all students to in-person schooling.De Blasio had long expressed his hope that kids would return to classrooms in the fall, but it was unclear whether a remote option would be offered. The city began allowing in-person learning for elementary schools last December, middle schools in February and high schools in March. About 600,000 students opted not to return to schools due to health and other concerns.After new distancing guidance in March from the Centers for Disease Control and Prevention allowed the school system to open classrooms for more students, nearly two thirds of kids still chose to stay home.The move will be a step toward easing some of the inequities compounded by the pandemic as students of color and low-income students have struggled disproportionately. More than $100 billion from the American Rescue Plan, in addition to aid from prior relief bills, is headed to school districts across the country to help cover the cost of reopening and addressing those differences.De Blasio urged parents who still feel unsafe sending their kids to in-person classes to mentally put Covid behind them. City schools will welcome parents to come into the buildings starting in June to view safety protocols and get them re-acclimated, he said.“It’s time for everyone to come back,” de Blasio said Monday during a briefing.Teacher ResponseThe mayor also will have to win over the city’s teachers, thousands of whom remain home due to safety concerns.Michael Mulgrew, president of the United Federation of Teachers, the largest New York City teachers union, said he supports getting as many students back in school this fall, but there should still be a remote option.“There is no substitute for in-person instruction,” he said in an emailed statement. “We still have concerns about the safety of a small number of students with extreme medical challenges.”City officials have maintained that health and safety protocols have kept Covid-19 rates relatively low at schools, despite frequent closings throughout the year prompted by student cases. With nearly half of New York City vaccinated, the city’s hospitalization rate has dropped precipitously to below 1 per 100,000 residents.About half of the city’s teachers have been vaccinated, schools chancellor Meisha Ross Porter said during a briefing. “We will welcome all our teachers into the fold,” she said. “We would never take any risks with our most important assets and that’s our children.”De Blasio said he expects more teachers and kids to be vaccinated by September, and that Covid rates will continue their steady decline. Kids ages 12 and up are now eligible for the vaccine. De Blasio said he expects that the CDC may drop their guidance to keep kids three feet apart, but that “every school could go to three feet if we had that rule right now.”Come next school year, teachers won’t be allowed to teach remotely while kids are in classrooms, more commonly known as “Zoom in a Room.”Jasmine Gripper, executive director of the Alliance for Quality Education, a coalition of parent groups, said she was surprised about the mayor’s move and was concerned about returning to large classes.“I think there’s a hesitancy about bringing children back if there are overcrowded classrooms,” Gripper said. “It’s not just the CDC, it’s parents’ concerns about overcrowding. There’s a hesitancy about putting 35 people in a room together, whether six feet apart or three feet apart.”Some parents said today’s move was made without their consultation.“A lot of my parents are very upset,” said Farah Despeignes, president of the Community Education Council District Eight in the Bronx, who has two sons studying remotely. The decision jeopardizes children who have excelled in remote learning and is a risk to areas where vaccine hesitancy is higher, she said.“To have this decision made without speaking to Bronx parents feels like a slap in the face,” Despeignes said.(Updates with Mulgrew comments)More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. World Reuters 210524 09h36m UPDATE 1-Russian, U.S. security chiefs meet in Geneva in push for summit -TASS The U.S. and Russian national security advisers held wide-ranging talks on Monday in what both sides described as an important step in preparing for a possible summit between U.S. President Joe Biden and Russian President Vladimir Putin. White House national security adviser Jake Sullivan and Russian Security Council Secretary Nikolay Patrushev discussed a range of issues at their Geneva meeting, with a focus on strategic stability, according to the White House and the Russian Security Council, quoted by the TASS news agency. Business Bloomberg 210524 09h32m Vonovia Is Said in Talks on $23 Billion Deutsche Wohnen Deal (Bloomberg) -- German residential property firm Vonovia SE is in advanced talks on a potential takeover of rival Deutsche Wohnen SE for about 19 billion euros ($23 billion) as it pursues a third attempt at a combination, people with knowledge of the matter said.Vonovia is discussing a friendly acquisition of Deutsche Wohnen for about 53 euros per share in cash, according to the people, who asked not to be identified because the information is private. The companies are prepared to address political and tenant concerns in Berlin as part of any deal, the people said.While an agreement could be reached as soon as this week, there’s no certainty the negotiations will lead to a transaction, according to the people. Representatives for Vonovia and Deutsche Wohnen weren’t immediately available for comment during a German public holiday.A transaction would bring together Germany’s largest residential landlords, which together control more than 500,000 apartment units. Shares of Deutsche Wohnen have risen 3% this year through Friday, giving it a market capitalization of 16.2 billion euros. It’s valued at about 28 billion euros including debt. Vonovia fell 13% over the period, valuing the company at 30 billion euros.German property companies have faced rising public pressure over the past few years over high prices, particularly in the nation’s capital. A combination between Vonovia and Deutsche Wohnen would enable significant cost savings and free up the firms to offer concessions to address political concerns, the people said.Deutsche Wohnen faced a brief respite after a mid-April decision by the German constitutional court to overturn a controversial rent freeze in Berlin, where the company’s apartments are located. The company had a net asset value per share of 52.50 euros at the end of March, according to its latest results.A previous acquisition attempt by Vonovia failed in February 2016 after it failed to win enough support from Deutsche Wohnen investors. Deutsche Wohnen called that bid hostile and not in the best interests of shareholders.Vonovia brought on advisers early last year to again consider the feasibility of a transaction, Bloomberg News reported at the time. In the end, it decided not to move forward with a bid.Any combination would require alignment between Vonovia Chief Executive Officer Rolf Buch and his counterpart at Deutsche Wohnen, Michael Zahn, who clashed over price during the failed pursuit about five years ago. Buch has built Bochum-based Vonovia into a European property heavyweight through several acquisitions, including the 2019 purchase of Swedish landlord Hembla AB and a 2016 deal for Austrian developer Conwert Immobilien Invest SE.(Updates with further transaction details from first 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. Business Bloomberg 210524 09h28m Elliott Takes Stake in Takeover Target UDG Healthcare (Bloomberg) -- Activist investor Elliott Investment Management has built a position in UDG Healthcare Plc, which has drawn shareholder criticism over the terms of its proposed takeover by buyout firm Clayton Dubilier & Rice.The New York-based hedge fund, which is run by billionaire Paul Singer, disclosed in a regulatory filing Monday it owns a 3.1% stake in the company in derivatives and other options. It didn’t say in the filing what the nature of the investment was, or what changes it might be seeking.A representative for Elliott declined to comment. A representative for UDG wasn’t immediately available for comment.Clayton Dubilier agreed to acquire UDG this month for 2.61 billion pounds ($3.2 billion) in cash, a roughly 22% premium at the time. Shares in the company rose 1.8% to 1,064 pence at 3:53 p.m. Monday in London, above the offer price of 1,023 pence per share.UDG’s largest shareholder said last week in an emailed statement it was opposed to the terms of the deal, arguing it is “opportunistic and undervalues UDG.” Allianz Global Investors, which owns an 8.6% stake in the company, said it was open to further discussions but believed the offer price doesn’t reflect the value of UDG’s future potential.“Having come through the trials of the pandemic with a strong balance sheet, AllianzGI believes UDG can realize the potential of recent acquisitions, consider further inorganic opportunities and improve the efficiency of its capital structure,” it said.More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. Howell date : 210524 09h39m12s Business Reuters 210524 09h18m UPDATE 1-Uber, Lyft launch U.S. vaccine rides program in White House partnership Uber Technologies Inc and rival Lyft Inc on Monday launched COVID-19 vaccine ride programs in partnership with the White House, offering Americans free rides or discounts for their trips to and from a vaccination site. Customers who have booked a vaccine appointment can request a ride through the Uber app and either incur no charges if the trip costs less than $25, or receive a $25 discount for their journey, the company said. With two of the three COVID-19 vaccines available in the United States requiring two separate shots, Uber would pay a maximum of $100 per passenger under the program. U.S. Reuters 210524 09h18m UPDATE 1-Unfriendly skies: 2,500 unruly U.S. airline passengers reported in 2021 Airlines have filed about 2,500 unruly-passenger reports with the U.S. Federal Aviation Administration this year, including 1,900 reports of passengers not wearing required face masks, the agency said on Monday. The jump in cases in midst of the coronavirus pandemic prompted FAA Administrator Steve Dickson in March to indefinitely extend a "zero tolerance policy" on unruly air passengers imposed in January. The FAA said on Monday it had proposed new civil penalties ranging from $9,000 to $15,000 against five airline passengers for disruptive and, in some cases, assaultive behavior. World Reuters 210524 09h14m UPDATE 1-UK's Raab says: difficult to believe Russia not involved in Belarus jet incident Britain said on Monday it was difficult to believe that Russia was not involved, at least by acquiescence, in the jet incident in Belarusian airspace but that London had no clear evidence of Moscow's involvement yet. Belarusian authorities scrambled a fighter jet and flagged what turned out to be a false bomb alert to force a Ryanair plane to land on Sunday and then detained an opposition-minded journalist who was on board, drawing condemnation from Europe and the United States. Business Reuters 210524 09h09m UPDATE 1-Exxon vows to add two new directors ahead of bitter proxy fight Exxon Mobil on Monday said it would appoint two new directors with energy industry and climate experience within the next 12 months, a pledge made days ahead of a shareholder contest over the oil major's climate stance and board makeup. Shareholders on Wednesday will decide between's Exxon's 12 current directors and four from hedge fund Engine No.1, whose nominees had gained support from investors and proxy advisory firms. "Over the next 12 months, we will work with the Board to secure two new directors, one with energy industry experience and one with climate experience," Exxon wrote to shareholders. Business Bloomberg 210524 09h06m Bridgewater’s Ray Dalio Says He Prefers Bitcoin to Bonds (Bloomberg) -- Ray Dalio, founder of Bridgewater Associates, said he would rather own Bitcoin than a bond.Should cryptocurrencies continue to gain traction, investors might decide to invest in them rather than government bonds, Dalio said in a recorded interview that was presented Monday at CoinDesk’s Consensus 2021 conference. The result is that governments lose control over their ability to raise money.Dalio has been bearish bonds for some time, saying in March that the economics of investing in bonds “has become stupid” because they pay less than inflation. Even with that view, a large percentage of the $151 billion his firm manages is in U.S. Treasuries and other government bonds.“I have some Bitcoin,” Dalio said in the interview, which was recorded on May 6, according to CoinDesk. He didn’t say how much he owned.Dalio also said that Bitcoin’s “greatest risk is its success.”The hedge fund manager has previously called Bitcoin “one hell of an invention” and that he found it challenging to put a value on digital assets since investing in Bitcoin means recognizing the potential to lose about 80%.Dalio said in January he was considering cryptocurrencies as investments for new funds that would offer clients protection against the debasement of fiat money.Bridgewater Associates has struggled to make money in its main macro fund. Last year, its Pure Alpha II fund lost 12.6% and it is up 4% this year through April. Overall, Bridgewater manages $73 billion across its macro strategies.More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. Business Reuters 210524 09h05m UPDATE 1-Dollar hangs near 4-month lows, bitcoin rebounds * Dollar down 0.2% for day, holds above Friday low * Euro gains 0.3%, continuing its gain on dollar * Bitcoin perks up after wild weekend * Graphic: World FX rates https://tmsnrt.rs/2RBWI5E (Updates prices) By David Henry and Iain Withers NEW YORK/LONDON, May 24 (Reuters) - The dollar languished near four-month lows against major currencies on Monday as bets on a robust global economic recovery continued to support currencies seen as riskier. Since the end of March, the greenback, seen as a safe-haven trade, has retreated steadily with optimism about the global economic recovery. "Markets have to start pricing in a slightly more hawkish Fed going forward," Win Thin, global head of currency strategy at Brown Brothers Harriman wrote on Monday morning. Business Bloomberg 210524 09h04m FiscalNote, Valued at $1.4 Billion, Eyes Public-Markets Debut (Bloomberg) -- FiscalNote Inc., a company that specializes in software for policy makers and regulators among others, is weighing a public-markets debut after raising fresh capital at a $1.4 billion valuation, according to a person with knowledge of the matter.Led by founder and Chief Executive Officer Tim Hwang, FiscalNote raised $40 million from investors including Clearvision Ventures, Maso Capital Partners and Japan’s CBC Group in an extension of its latest funding round in recent weeks, the person said.The Washington, D.C.-based company is working with an adviser as it explores options for going public, including merging with a special purpose acquisition company or a traditional initial public offering, the person said, asking not to be identified discussing non-public information. A firm decision hasn’t been made.A FiscalNote spokesman declined to comment on its valuation and listing plans. Representatives for Clearvision, Maso and CBC didn’t respond to requests for comment.The FiscalNote representative said the company recently acquired Fireside, a provider of technology to Capitol Hill that includes software to manage customer relationships. It also bought TimeBase, an Australia-based provider of legislative research and tracking tools.FiscalNote in December said it raised $160 million in new equity and debt financing from backers including Matthew Safaii’s Arrowroot Capital, David Spreng’s Runway Growth Capital and Carlos Gutierrez, the former U.S. Secretary of Commerce. Earlier investors include Mark Cuban, Jerry Yang, Winklevoss Capital Management and New Enterprise Associates.FiscalNote has more than 4,000 clients, including the Federal Reserve, AstraZeneca Plc, the U.S. Centers for Disease Control and Prevention, 3M Co., and the American Hospital Association.More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. Howell date : 210524 09h08m36s Business Bloomberg 210524 09h00m Bitcoin Bounces Back Above $38,000 After Weekend Selloff (Bloomberg) -- Bitcoin rebounded from its roller-coaster weekend, with prices on track for the biggest gain in more than three months.The world’s largest cryptocurrency was trading 12% higher around $37,655 as of 10:58 a.m. in New York. It climbed as high as $38,683. Digital currencies have been gripped by volatility in the past two weeks, with Bitcoin prices plunging as much as 18% on Sunday.Traders may be feeling more positive as the crypto industry holds one of its biggest conferences of the year. Federal Reserve Governor Lael Brainard noted at the Consensus conference that a big issue for central banks with regard to a digital currency is the impact on the financial system.If people can keep digital dollars in a wallet that’s unrelated to a bank account, and easily use that wallet to make payments and transfers, that then undermines the commercial banking system, Brainard said. It could starve the banks of deposits, which of course are vital for making loans, she noted.Bridgewater’s Ray Dalio said there is little incentive right now to hold dollars is low with no interest being paid. Eventually people will go to “almost anything else” -- stocks, gold, Bitcoin and real estate, he said during the conference webcast.“Love or hate it, Bitcoin is impacting markets,” said Amy Wu Silverman, equity derivatives strategist at RBC Capital Markets, in a note Sunday. “What is Bitcoin—a currency? A 1-for-1 manifestation of Elon Musk’s thoughts? A ‘factor’ of momo+meme+speculation+angry Gen Z’s? Like a tween Justin Bieber, you don’t know what Bitcoin will be yet -- but you have a feeling it will be big.”Ether, the second-largest token, also rebounded on Monday, jumping 15% to about $2,373.The extreme volatility of late has prompted analysts to try guessing the outlook for digital currencies, with a JPMorgan Chase & Co. team saying it’s premature to call the end of the Bitcoin selloff. Goldman Sachs Group Inc. signaled that extreme swings hamper crypto’s appeal for institutional investors.More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. Business Yahoo Finance Video 210524 08h50m Analyst: We’ve got very robust GDP expectations RBC Capital Markets Head of U.S. Equity Strategy, Lori Calvasina, joins Yahoo Finance to discuss the tech space within the market and how inflation might play a role, and the impact of the new possible corporate tax rate. Business Yahoo Finance Video 210524 08h48m Goldman’s Jan Hatzius: We’re still ‘far from a normal economic environment’ Jan Hatzius, Goldman Sachs Chief Economist and Head of Global Economics and Markets Research, joins Yahoo Finance Live to weigh in on the outlook for U.S. economic recovery, inflation fears and what’s next for the Fed. Business Yahoo Finance 210524 08h46m Stock market news live updates: Stocks gain as technology shares outperform, Bitcoin recovers some losses Stocks pointed to a higher open Monday morning and looked to recover some of last week's losses. Business Bloomberg 210524 08h45m Tech Leads Gains in U.S. Stocks; Bitcoin Rebounds: Markets Wrap (Bloomberg) -- Technology shares led gains in U.S. stocks as inflation anxiety appeared to be easing. Bitcoin headed toward its biggest surge since February, rebounding from a weekend rout.All 11 groups in the S&P 500 advanced, while the Nasdaq 100 outperformed major equity benchmarks amid a rally in giants such as Apple Inc., Amazon.com Inc. and Google’s parent Alphabet Inc. The world’s largest cryptocurrency soared after plunging as much as 18% on Sunday. Most base metals were under pressure, with iron ore and steel sinking as China stepped up its fight against soaring commodity prices.While several analysts are warning that it may be too early to signal the all-clear on inflation risks, weaker-than-expected economic reports have helped quell investor worries. Data from the Federal Reserve Bank of Chicago showed Monday that U.S. economic activity slowed down in April. Rates on 10-year breakevens -- a market gauge of inflation expectations over the next decade -- fluctuated after capping their biggest weekly decline since September.“General inflation fears are a headwind on stocks, and they will be until it becomes clear that inflation is a temporary phenomenon,” Tom Essaye, a former Merrill Lynch trader who founded “The Sevens Report” newsletter, wrote to clients. “Until then, expect a more volatile market -- but at this point, strong policy support for stocks remains very much in place, and that’s a good thing.”Meanwhile, Fed Governor Lael Brainard said Monday she expected to see inflation rise as the U.S. economy reopens from the pandemic -- but played down the risk that this potential increase would lead to a persistent overshoot. A record of the central bank’s April gathering showed last week that some officials were open to a debate at “upcoming meetings” on scaling back their massive bond purchases.“The Fed continues its wait-and-see posture, which added wind beneath the tech sector’s wings,” said Chris Larkin, managing director of trading and investing product at E*Trade Financial. “Stocks head into the final full week of the month trying to break a two-week bull-bear stalemate.”Some other corporate highlights:Virgin Galactic Holdings Inc. soared after the company founded by British billionaire Richard Branson conducted a test flight to space for the first time in more than two years.Coinbase Global Inc. rose as Goldman Sachs Group Inc. recommended buying shares of the cryptocurrency exchange.Beyond Meat Inc. gained as the plant-based meat producer was upgraded to outperform at Bernstein.Here are some events this week:Consensus by CoinDesk brings prominent crypto voices together to discuss NFTs, exchanges and the role of central banks. Fed Governor Lael Brainard and Bridgewater founder Ray Dalio will participate. Through May 27.Bank of Indonesia rate decision Tuesday, Reserve Bank of New Zealand policy decision Wednesday, Bank of Korea rate decision Thursday.CEOs of the largest U.S. banks, including JPMorgan and Goldman Sachs, will testify before lawmakers in the Senate Banking and House Financial Services committees Wednesday.U.S. initial jobless claims, GDP, durable goods, pending home sales, Thursday.These are some of the main moves in markets:StocksThe S&P 500 rose 1.1% as of 10:44 a.m. New York timeThe Nasdaq 100 rose 1.7%The Dow Jones Industrial Average rose 0.6%The Stoxx Europe 600 was little changedThe MSCI World index rose 0.7%CurrenciesThe Bloomberg Dollar Spot Index fell 0.2%The euro rose 0.3% to $1.2224The British pound was little changed at $1.4159The Japanese yen rose 0.2% to 108.74 per dollarBondsThe yield on 10-year Treasuries declined two basis points to 1.61%Germany’s 10-year yield was little changed at -0.14%Britain’s 10-year yield declined two basis points to 0.81%CommoditiesWest Texas Intermediate crude rose 2.2% to $65 a barrelGold futures rose 0.4% to $1,886 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. World Bloomberg 210524 08h45m Germany Summons Ambassador, Flights Delayed: Belarus Update (Bloomberg) -- Russia dismissed European Union and U.S. outrage at the forced landing of a Ryanair Holdings Plc plane in Minsk by Belarusian authorities who arrested a journalist on board.The European Union will consider further sanctions against President Alexander Lukashenko’s administration when its leaders meet for dinner in Brussels on Monday night for the start of a two-day summit.The EU was already working on an additional package of sanctions over a disputed election last year and will now look at increasing the pressure on Belarus. Potential measures could include suspending flights over Belarus, banning the country’s national airline from landing at EU airports and blocking ground transit into the EU from Belarus, according to a person familiar with summit preparations.For now, even as Ryanair calls the interception an “act of aviation piracy,” the Irish carrier -- like many other airlines -- is still overflying Belarus airspace.Read More: How Belarus Snatched a Dissident Off a Ryanair Plane From GreeceKey Developments:Ryanair jet diverted to Minsk under escort from Mig-29 fighter jetBelarusian journalist removed from plane in Belarusian capitalU.S., EU and U.K. leaders condemn actions by authorities in BelarusRussia defends Belarus, its closest allyFlights over Belarus airspace continueAll times are Central European Time.Michel to Push for Concrete EU Measures (4:45 p.m.)European Council President Charles Michel will push for EU leaders to decide on measures against Belarus when they meet for dinner Monday night at the start of a two-day summit.“What happened yesterday is an international scandal. Lives of European civilians were at risk,” Michel said as he arrived at the summit building. “This is not acceptable and this is why we put the debate on sanctions on the table of the European Council.” “We are preparing different options, different possible measures and I hope tonight we can take decisions on that,” he added.Schroders Says Putin Unlikely to Jeopardize Biden Summit (4:45 p.m.)“The developments over the weekend are obviously negative and we will await a European response,” Schroders money manager James Barrineau said by email from New York. “We doubt Putin will want to jeopardize his summit with Biden over this issue, but it does not help the overall tone of the relationship of Russia with Europe.”Schroders has a “very small” position in Belarus, and for now does not expect implications for Russian assets from the forced landing of the Ryanair plane in Minsk, he said.Germany Summons Belarus Ambassador (4:29 p.m.)Germany summoned the Belarus ambassador to the foreign ministry in Berlin Monday evening to explain why the country forced a Ryanair jet to land in Minsk. Foreign Minister Heiko Maas called the previous explanations from Alexander Lukashenko’s regime “absurd and not credible.”“We need clarity about what really happened on board and on the ground yesterday,” Maas said in a statement. “And we need clarity about the well-being of Raman Pratasevich and his partner, who must be released immediately.”Lithuania Urges Its Citizens to Avoid Belarus (4:29 p.m.)The Lithuanian foreign ministry urged its nationals not to travel to Belarus and recommended those currently in the neighboring country to leave, according to a statement. The incident with the Ryanair plane demonstrates “a threat to security and lives of individuals,” the ministry said.Lufthansa Flight Leaves Minsk With all Passengers (3:42 p.m.)Lufthansa flight LH1487 from Minsk to Frankfurt took off at 4:21 p.m. local time, according to FlightRadar24, 2 hours after its scheduled time of departure. The airline had earlier said that it was cooperating with local authorities who were “searching the aircraft again before departure and subjecting the passengers to another security check” after receiving a security alert during boarding.All 51 people schedule to depart on the flight were on board, according to a Lufthansa spokesperson.Tsikhanouskaya Calls for Belarus Sanctions (3:28 p.m.)Exiled Belarus opposition leader Svetlana Tsikhanouskaya called for sanctions against the country during a Monday phone call with EU foreign policy chief Josep Borrell. She is scheduled to hold a call later in the day with members of President Joe Biden’s administration.Tsikhanouskaya also said the whereabouts of the detained journalist Raman Pratasevich are unknown and his lawyer is unable to contact him. The journalist’s girlfriend, who is a Russian citizen, is being held in a Minsk prison and has been refused assistance from the Russian consulate.Lufthansa Flight From Minsk Delayed by Threat (3:02 p.m.)Lufthansa flight LH1487 from Minsk to Frankfurt was delayed following a “security alert,” the German airline said in a statement. The Minsk airport said on its Telegram channel that it had received an anonymous email about a planned “terrorist attack.” Lufthansa said 51 passengers, including five crew members, were on board the plane.“We are cooperating with the authorities, who are searching the aircraft again before departure and subjecting the passengers to another security check,” Lufthansa said on Monday. The search includes unloading all suitcases and cargo.Czech Premier Says EU Must Be Tough (2:50 p.m.)The proposals for discussion about EU’s response include banning Belarus airlines from landing in the EU or suspending flights over Belarus’s airspace, Czech Prime Minister Andrej Babis said. He said that according to available information, there were four Russian citizens on the Raynair flight “who probably had a lot to do with this unbelievable act.”“Europe’s response must be tough,” Babis told reporters before departing to EU summit.Passenger Number Confusion (2:40 p.m.)Lithuania’s criminal police said on Monday that 121 of the 126 passengers who left Athens on the flight arrived in Vilnius. On Sunday, both Greece and Lithuania said 171 passengers and crew were on the flight, which Lithuania said Monday was the number of reservations. There was also confusion over infant passengers, who didn’t require tickets, and some boarding passes that weren’t digital. Ryanair hasn’t confirmed the numbers.Lithuania’s transport member also said the country would ban flights to and from Belarus airspace starting at 3 a.m. on Tuesday. The ban will affect 26 flights a day. Lithuania’s neighbor Poland will propose at the EU summit on Monday that all flights between the bloc and Belarus be halted.Poland Wants to Halt All Flights Between EU and Belarus (1:55 p.m.)Poland has come as one of the strongest voices demanding firm action. At the meeting of leaders in Brussels Prime Minister Mateusz Morawiecki will propose halting all flights between EU and Belarus.Belarusian Activists Ask EU For Help (1:50 p.m.)Holding a placard reading “SOS,” Belarusian activists in Poland appealed to the EU for help. Standing in front of Belarus embassy in Warsaw, Nexta founder and blogger Stsiapan Putsila said he’s received “more than a thousand threats” since Sunday. “We can’t stay silent,” said Jana Shostak, another activist.Police Revise Passenger Numbers (1:40 p.m.)According to Lithuania’s criminal police, 121 of the 126 passengers who left Athens on the flight arrived in Vilnius. The captain of the airliner consulted with Ryanair’s management before deciding to divert to Minsk. On Sunday, both Greece and Lithuania said 171 passengers and crew were on the flight.Poland Increases Protection of Activists (1:30 p.m.)Polish Deputy Foreign Minister Pawel Jablonski said on Monday his country was setting up “special protection” for activists on Polish territory who “could be in the cross-hairs of Belarusian or Russian services.”Raman Pratasevich, arrested after the Ryanair plane was diverted to Minsk, worked for Nexta, a media group registered and run out of Warsaw.Jablonski urged activists to avoid contact with Belarus as “we can’t tell what the regime is capable of.”France Says All Options Being Considered (1:20 p.m.)“Nothing is off the table,” a French diplomat told journalists when asked about possible punitive measures against Belarus.In addition to sanctions targeting Belarusian officials and companies, the EU is mulling the suspension of overflights of European airlines over Belarus, a landing ban for flag carrier Belavia in European airports, and the suspension of transits (including land) from Belarus to the EU, the French diplomat added, asking not to be named in line with policy.Ryanair Is Flying Over Belarus Today (1:10 p.m.)Flight FR3340 from Paphos, Cyprus, is scheduled to land at Talinn, Estonia, at 2:30 p.m. local time. The route takes the plane directly across Belarus territory, highlighting the mixed messaging coming out of Europe in response to Sunday’s incident.The airspace over Belarus is part of a major route for flights between Asia and Europe, with some carriers including Deutsche Lufthansa AG and cargo hauler FedEx Corp. continuing to fly over the country on Monday. Airlines have routed traffic over Belarus to avoid the restive eastern Ukraine region that’s been off-limits since a Malaysian Airlines Boeing 777 jet was shot down there in 2014, killing 298 people.Poland Orders Probe (12:20 p.m.)Poland’s state prosecutor said it has ordered an investigation into the landing because the Ryanair jet was registered in Poland and therefore falls under Polish jurisdiction.Estonia to Raise Issue at UN Security Council (12:00 p.m.)Estonia plans to raise the Belarus issue at the Security Council and has already started consultations to have a discussion, public broadcaster ERR cited the country’s foreign minister, Eva-Maria Liimets, as saying.Ryanair Cooperating with EU, NATO (11:50 a.m.)The diversion of the Ryanair plane to Minsk on Sunday was an “act of aviation piracy,” the airline said in a statement today.Ryanair said it was “fully cooperating” with the EU safety and security agencies as well as NATO, and wouldn’t comment further due to security reasons.Kremlin Says U.S.-Russia Summit Plans Not Affected (11:45 a.m.)Tensions between Moscow’s closest ally and the West over Minsk’s forcing of a Ryanair jet to land won’t affect Russia’s efforts to arrange a summit meeting between President Vladimir Putin and his U.S. Counterpart, Joe Biden, Kremlin spokesman Dmitry Peskov said.“I wouldn’t combine all this into a single system,” Peskov told reporters on a conference call. “These are different things, after all.”Peskov declined to comment on the details of the case, including on whether Belarus gave Russia advance warning of its decision to force the plane to land or whether Moscow’s agents were involved. “Our special services are in the closest possible contact,” he said, adding that he doesn’t have detailed information about the Ryanair jet.Russia Calls Western Reaction ‘Shocking’ (11:15 a.m.)Western countries are showing double standards, according to Russian Foreign Ministry spokeswoman Maria Zakharova. “It’s shocking that the West is calling the incident in Belarus’s airspace ‘shocking,’” she wrote in a Facebook post.Zakharova cited past examples of what she said were western governments forcing planes to land, such as a 2013 episode when the plane of Bolivian President Evo Morales had to land in Austria as the U.S. searched for Edward Snowden, as evidence that the U.S. and its allies use the same tactics.U.K. Joins Calls for Sanctions (10:40 a.m.)Foreign Secretary Dominic Raab added to the voices calling for further sanctions against Belarus and the immediate release of Protasevich. In a statement, Raab condemned the arrest, adding “Mr Lukashenko must be held to account for his outlandish actions.”Russian Senator Defends Belarus (10:35 a.m.)“Formally, there was a bomb threat, so everything was done properly,” Vladimir Dzhabarov, first deputy chairman of the International Affairs committee in the upper house of parliament, said in a phone interview Monday. “I don’t see anything unusual or unacceptable in the actions of the Belarusian authorities.”The arrest of Raman Pratasevich, the journalist, was justified, he said. “This person was sitting abroad and criticizing his homeland,” he said. “It’s a warning to Tsikhanouskaya,” he said, referring to exiled opposition leader Sviatlana Tsikhanouskaya.EU Mulls Sanction Options (10:25 a.m.)Of the possible options for EU action, sanctions against individuals and entities would likely be the simplest, according to a senior official close to the European talks.Other options, such as the suspension all flights by EU airlines over Belarus and the suspension of all transit -- including ground travel -- between Belarus and the EU, would trigger increased costs for European companies, the official said.‘State-Sponsored Hijacking’ (10:10 a.m.)“This was a case of state-sponsored hijacking,” Ryanair CEO Michael O’Leary said in comments broadcast by RTE Radio. The airline has to do a “detailed debrief today with the NATO and EU authorities” after the incident, which he said saw passengers and crew held under armed guard.It appears the intent of Belarusian authorities was to remove a journalist and his traveling companion, O’Leary said. “We believe there was also some KGB agents offloaded off the aircraft as well,” he said.Irish Minister Calls for Tough EU Response (10:00 a.m.)“This was effectively aviation piracy, state sponsored,” Irish foreign minister Simon Coveney told RTE Radio. The EU’s response “has to be clear, tough, and needs to happen quickly,” he said.Belarus’s Bonds Tumble (9:30 a.m.)Worries over potential sanctions are scaring away bond investors. Belarus’s dollar bonds due 2031 tanked early on Monday, pushing yields up 23 basis points to a one-month high of 7.48%. The bonds traded at a yield of above 8% in August after authorities cracked down on protesters following Lukashenko’s claim to a landslide election victory.Flights Avoid Belarus (9:25 a.m.)Wizz Air Holdings Plc, Eastern Europe’s biggest discount carrier, said it has rerouted a service from the Ukrainian capital Kyiv to Tallinn in Estonia to avoid Belarusian airspace. A spokesman said in an email that the Budapest-based company is “continuously monitoring and evaluating the situation.”Latvia’s national carrier Airbaltic has decided to avoid Belarusian air space “for the time being,” Latvian Transport Minister Talis Linkaits said in interview with Latvijas Radio.Poland to Call for More Sanctions Against Lukashenko (9:22 a.m.)Belarus’s neighbor, Poland, will propose new sanctions against Lukashenko’s government at Monday’s EU meeting, according to Deputy Foreign Minister Pawel Jablonski. He declined to specify the type of measures Warsaw will seek, saying the government wants to consult with EU partners first.More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. Howell date : 210524 08h37m59s Business Bloomberg 210524 08h27m Oil Extends Gain With Iran Saying Differences Remain on Deal (Bloomberg) -- Oil’s rally accelerated after Iran said that gaps remain in negotiations involving world powers in reaching a deal that would end U.S. sanctions on its crude.Futures climbed as much as 2.6% in New York with added support from a weakening dollar making commodities priced in the currency more attractive. Iran said there are still differences around the timing of when countries will return to compliance with the original 2015 nuclear agreement.While the market is anticipating the Islamic Republic’s supply will pick up again by late summer, the demand recovery will be strong enough to absorb it, Goldman Sachs Group Inc said. The bank expects Brent futures to hit $80 a barrel in the next few months.“Whether a deal gets done will move prices around one way or another,” said Gary Cunningham, director at Stamford, Connecticut-based Tradition Energy. “It doesn’t look we’re getting those Iranian barrels coming back as quickly as the market thought we would.”Talks between Iran and world powers will continue in Vienna this week to resolve outstanding issues. As part of that process, Iran extended a UN nuclear inspections agreement, buying diplomats time to revive the landmark deal that would usher in an official return of the Persian Gulf nation to world oil markets. Meanwhile, Iran has already found buyers for its oil exports ahead of an agreement on the nuclear deal, notably China. Those ties may become even stronger, with the leaders of both countries speaking on the phone about Iran expanding its oil sales to China.Crude has been largely stuck between $60 and $70 a barrel recently, with concerns over returning output being counteracted with the ongoing demand recovery underway in some key markets. Virus cases in the U.S. were below 30,000 every day last week for the first time since June, though parts of Asia continue to see significant infections.“The specter of Iranian sanctions relief looms large over the oil market,” said PVM Oil Associates analyst Stephen Brennock. “Additional supply from Tehran is poised to be absorbed by the market as a result of a vaccine-spurred surge in demand over the coming months.”Physical markets continue to get a boost from a raft of buying from refiners in Asia. Japan’s Fuji Oil became the latest company to buy Middle Eastern crude on Monday, after a spate of bullish interest last week.Goldman isn’t alone in its view on the impact of returning Iranian supply. Citigroup Inc. said it expects only a partial return of the country’s barrels initially. The bank still sees oil hitting the mid-$70s in the third quarter, but said prices could retreat thereafter.More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. Business Reuters 210524 08h23m US STOCKS-Wall St climbs on boost from tech stocks Crypto-exchange operator Coinbase Global and miners Riot Blockchain and Marathon Digital Holdings gained between 1% and 3.8%. The S&P index recorded 17 new 52-week highs and no new lows, while the Nasdaq recorded 57 new highs and 15 new lows. Business Bloomberg 210524 08h23m PG&E to Sell San Francisco Headquarters for $800 Million (Bloomberg) -- PG&E Corp. has reached a deal to sell its San Francisco headquarters to real estate joint venture Hines Atlas for $800 million, part of the utility giant’s move to cut costs after it emerged from bankruptcy last year.PG&E plans to move into its new headquarters in Oakland next year, according to a statement Monday. It intends to distribute about $400 million from its gain on the sale, which includes 77 Beale Street and 245 Market Street, to customers over five years to offset bill increases as it invests in safety and operational improvements. The sale must still be approved by state utility regulators.The move makes PG&E one of the most high-profile companies to leave San Francisco for Oakland, a less expensive city located just across San Francisco Bay. In an added benefit, most PG&E workers will have shorter commutes to their new office, the company said.PG&E filed for bankruptcy in early 2019 after collapsing under liabilities from wildfires sparked by its equipment. Though the company exited Chapter 11 last year, it remains burdened by about $42 billion of debt, raising concerns about its financial durability and ability to make the investments required to fire-proof its grid.Hines is one of the biggest private real estate investors and managers in the world, according to its website. Hines Atlas is a joint venture between Hines and another investor, a Hines spokesperson said. He declined to name the other investor.One broker estimated in 2019 that PG&E’s headquarters could bring in more than $1 billion, assuming no major upgrades were needed. The lower sale price could reflect a shift in the commercial real estate market in the wake of the Covid-19 pandemic.Remote work has kept employees home, emptying office buildings and prompting companies to put their space on the market as subleases. San Francisco’s overall office vacancy rate in the first quarter shattered the previous record high hit during the dot-com bust at the turn of the century, according to CBRE Group Inc. That’s pushed rent down and weighed on the value of buildings.(Updates with details starting 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. World Reuters 210524 08h21m Israel signs cloud services deal with Amazon, Google Israel's government said on Monday it had signed a deal with Amazon Web Services (AWS) and Google for a more than $1 billion project to provide cloud services for the country's public sector and military. A month ago, AWS and Google won a tender, beating out Microsoft, Oracle and IBM for the four phase project known as "Nimbus". Finance Ministry officials said they expected to start moving data to the cloud in about two months, but it will not be a centralised system since there are two providers, while some data will not be on the cloud. Business Reuters 210524 08h17m EMERGING MARKETS-Cenbank forex swap buoys Brazil' real Data on Monday showed annual headline inflation in Mexico stood at 5.80% in the year through the first half of May, well above the central bank's target of 3%, strengthening the case to end an easing cycle. It had dipped on Friday after Mexican President Andres Manuel Lopez Obrador said current central bank chief Alejandro Diaz de Leon's term will not be renewed when it ends in December. Lopez Obrador said will nominate an economist with a "social dimension". Business Bloomberg 210524 08h15m Shale Drillers Cabot, Cimarex to Merge in $7.4 Billion Deal (Bloomberg) -- Cabot Oil & Gas Corp. agreed to merge with Cimarex Energy Co., disappointing investors with little overlap in the combination of two mid-tier shale drillers in an all-stock transaction valued at about $7.4 billion.The deal will give Cabot shareholders about 49.5% of the combined entity, with Cimarex shareholders holding the rest, the companies said Monday in a statement. In common with other recent industry mergers, the combination of Cabot and Cimarex is an almost zero-premium deal. Shares for both companies tumbled more than 7%, marking their biggest intraday declines in more than a year.Cimarex “shareholders are only receiving a 0.4% premium despite COG trading at nearly twice the multiple in 2022,” Leo Mariani, an Austin-based analyst at KeyBanc Capital Markets Inc., wrote Monday in a note, downgrading the Cimarex shares from the equivalent of a buy to a hold. “COG and XEC also have no acreage overlap, which results in no clear strategic benefit to XEC’s shareholders and precludes the two companies from realizing any operational synergies, unlike other recent deals in the space.”U.S. shale drillers are getting increasingly acquisitive following a sustained recovery in energy prices from the lows seen in 2020. They’re also responding to investor pressure to improve financial and operational performance after a dismal few years.The Cimarex-Cabot deal addresses investor demands with a heavy emphasis on returning of cash: with plans to pay a 50-cent-per-share special dividend on the closing of the deal, while introducing a quarterly variable dividend, on top of a regular payout every three months.“When you look at the stability of our combined cash flow through commodity cycles, you just have to say, ‘Wow,’” Chief Executive Officer Tom Jorden told analysts and investors Monday on a conference call. “We’re building an ark, not a party boat, and this new company is an ark.”Combining Cabot, which operates in the Marcellus shale basin in Appalachia, and Cimarex, which drills in the Permian and Anadarko basins, will lead to the elimination of about $100 million in annual costs, according to both companies. The newly merged energy producer will be renamed and be based in Houston.“A Permian-focused partner would have made far more sense” for Cimarex, Bloomberg Intelligence analysts Talon Custer and Vincent G. Piazza said in a note. “Still, the new E&P will generate robust free cash flow, enhance shareholder distributions and mitigate federal leasehold risk.”The Cabot-Cimarex merger is the largest U.S. oil and gas deal since Chevron Corp.’s acquisition of Noble Energy Inc. last year, according to data compiled by Bloomberg.Cimarex investors will receive 4.0146 shares of Cabot common stock for each share of Cimarex common stock owned, The transaction is expected to close in the fourth quarter, subject to regulatory clearance, shareholder approval and other customary closing conditions.(Updates with shares in 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. Business Reuters 210524 08h08m Coinbase appoints former White House staffer as chief policy officer Shirzad joins the company against the backdrop of increased regulatory scrutiny around digital currencies globally. He served as deputy National Security Advisor for International Economic Affairs at the White House and was most recently the global co-head of government affairs at Goldman Sachs, where his tenure spanned 15 years. Howell date : 210524 08h07m23s Business Reuters 210524 07h52m SoftBank Vision Fund 2 invests $250 mln in banking tech startup Zeta SoftBank Group Corp's Vision Fund 2 has invested $250 million in Zeta, valuing it at $1.45 billion, the banking technology startup said on Monday. Zeta, founded in 2015, will use the proceeds of the Series C funding round to accelerate growth in the United States and Europe including scaling its operations, team, and platform. Sodexo, a customer of the company, also participated in the latest round as a minority investor, Zeta said. World Reuters 210524 07h51m Israeli businesses lost $368 million during Gaza fighting Israeli businesses lost 1.2 billion shekels ($368 million) during 11 days of fighting between Israel and the Hamas militant group in Gaza, the country's main industrial group said on Monday. The Manufacturers' Association, which represents some 1,500 firms and 400,000 workers, said the loss was mostly due to employees choosing to stay at home due to the nearly nonstop Palestinian rocket fire from Gaza. About a third of workers were absent from work in southern Israel and about 10% stayed home in areas closer to the commerical hub of central Israel, the association said. World Bloomberg 210524 07h42m Planes Rerouted, Russia Rejects Outrage: Belarus Update (Bloomberg) -- Russia dismissed European Union and U.S. outrage at the forced landing of a Ryanair Holdings Plc plane in Minsk by Belarusian authorities who arrested a journalist on board.The European Union will consider further sanctions against President Alexander Lukashenko’s administration when its leaders meet for dinner in Brussels on Monday night for the start of a two-day summit.The EU was already working on an additional package of sanctions over a disputed election last year and will now look at increasing the pressure on Belarus. Potential measures could include suspending flights over Belarus, banning the country’s national airline from landing at EU airports and blocking ground transit into the EU from Belarus, according to a person familiar with summit preparations.For now, even as Ryanair calls the interception an “act of aviation piracy,” the Irish carrier -- like many other airlines -- is still overflying Belarus airspace.Read More: How Belarus Snatched a Dissident Off a Ryanair Plane From GreeceKey Developments:Ryanair jet diverted to Minsk under escort from Mig-29 fighter jetBelarusian journalist removed from plane in Belarusian capitalU.S., EU and U.K. leaders condemn actions by authorities in BelarusRussia defends Belarus, its closest allyFlights over Belarus airspace continueAll times are Central European Time.Lufthansa Flight Leaves Minsk With all Passengers (3:42 p.m.)Lufthansa flight LH1487 from Minsk to Frankfurt took off at 4:21 p.m. local time, according to FlightRadar24, 2 hours after its scheduled time of departure. The airline had earlier said that it was cooperating with local authorities who were “searching the aircraft again before departure and subjecting the passengers to another security check” after receiving a security alert during boarding.All 51 people schedule to depart on the flight were on board, according to a Lufthansa spokesperson. Tsikhanouskaya Calls for Belarus Sanctions (3:28 p.m.)Exiled Belarus opposition leader Svetlana Tsikhanouskaya called for sanctions against the country during a Monday phone call with EU foreign policy chief Josep Borrell. She is scheduled to hold a call later in the day with members of President Joe Biden’s administration.Tsikhanouskaya also said the whereabouts of the detained journalist Raman Pratasevich are unknown and his lawyer is unable to contact him. The journalist’s girlfriend, who is a Russian citizen, is being held in a Minsk prison and has been refused assistance from the Russian consulate.Lufthansa Flight From Minsk Delayed by Threat (3:02 p.m.)Lufthansa flight LH1487 from Minsk to Frankfurt was delayed following a “security alert,” the German airline said in a statement. The Minsk airport said on its Telegram channel that it had received an anonymous email about a planned “terrorist attack.” Lufthansa said 51 passengers, including five crew members, were on board the plane.“We are cooperating with the authorities, who are searching the aircraft again before departure and subjecting the passengers to another security check,” Lufthansa said on Monday. The search includes unloading all suitcases and cargo.Czech Premier Says EU Must Be Tough (2:50 p.m.)The proposals for discussion about EU’s response include banning Belarus airlines from landing in the EU or suspending flights over Belarus’s airspace, Czech Prime Minister Andrej Babis said. He said that according to available information, there were four Russian citizens on the Raynair flight “who probably had a lot to do with this unbelievable act.”“Europe’s response must be tough,” Babis told reporters before departing to EU summit.Passenger Number Confusion (2:40 p.m.)Lithuania’s criminal police said on Monday that 121 of the 126 passengers who left Athens on the flight arrived in Vilnius. On Sunday, both Greece and Lithuania said 171 passengers and crew were on the flight, which Lithuania said Monday was the number of reservations. There was also confusion over infant passengers, who didn’t require tickets, and some boarding passes that weren’t digital. Ryanair hasn’t confirmed the numbers.Lithuania’s transport member also said the country would ban flights to and from Belarus airspace starting at 3 a.m. on Tuesday. The ban will affect 26 flights a day. Lithuania’s neighbor Poland will propose at the EU summit on Monday that all flights between the bloc and Belarus be halted.Poland Wants to Halt All Flights Between EU and Belarus (1:55 p.m.)Poland has come as one of the strongest voices demanding firm action. At the meeting of leaders in Brussels Prime Minister Mateusz Morawiecki will propose halting all flights between EU and Belarus.Belarusian Activists Ask EU For Help (1:50 p.m.)Holding a placard reading “SOS,” Belarusian activists in Poland appealed to the EU for help. Standing in front of Belarus embassy in Warsaw, Nexta founder and blogger Stsiapan Putsila said he’s received “more than a thousand threats” since Sunday. “We can’t stay silent,” said Jana Shostak, another activist.Police Revise Passenger Numbers (1:40 p.m.)According to Lithuania’s criminal police, 121 of the 126 passengers who left Athens on the flight arrived in Vilnius. The captain of the airliner consulted with Ryanair’s management before deciding to divert to Minsk. On Sunday, both Greece and Lithuania said 171 passengers and crew were on the flight.Poland Increases Protection of Activists (1:30 p.m.)Polish Deputy Foreign Minister Pawel Jablonski said on Monday his country was setting up “special protection” for activists on Polish territory who “could be in the cross-hairs of Belarusian or Russian services.”Raman Pratasevich, arrested after the Ryanair plane was diverted to Minsk, worked for Nexta, a media group registered and run out of Warsaw.Jablonski urged activists to avoid contact with Belarus as “we can’t tell what the regime is capable of.”France Says All Options Being Considered (1:20 p.m.)“Nothing is off the table,” a French diplomat told journalists when asked about possible punitive measures against Belarus.In addition to sanctions targeting Belarusian officials and companies, the EU is mulling the suspension of overflights of European airlines over Belarus, a landing ban for flag carrier Belavia in European airports, and the suspension of transits (including land) from Belarus to the EU, the French diplomat added, asking not to be named in line with policy.Ryanair Is Flying Over Belarus Today (1:10 p.m.)Flight FR3340 from Paphos, Cyprus, is scheduled to land at Talinn, Estonia, at 2:30 p.m. local time. The route takes the plane directly across Belarus territory, highlighting the mixed messaging coming out of Europe in response to Sunday’s incident.The airspace over Belarus is part of a major route for flights between Asia and Europe, with some carriers including Deutsche Lufthansa AG and cargo hauler FedEx Corp. continuing to fly over the country on Monday. Airlines have routed traffic over Belarus to avoid the restive eastern Ukraine region that’s been off-limits since a Malaysian Airlines Boeing 777 jet was shot down there in 2014, killing 298 people.Poland Orders Probe (12:20 p.m.)Poland’s state prosecutor said it has ordered an investigation into the landing because the Ryanair jet was registered in Poland and therefore falls under Polish jurisdiction.Estonia to Raise Issue at UN Security Council (12:00 p.m.)Estonia plans to raise the Belarus issue at the Security Council and has already started consultations to have a discussion, public broadcaster ERR cited the country’s foreign minister, Eva-Maria Liimets, as saying.Ryanair Cooperating with EU, NATO (11:50 a.m.)The diversion of the Ryanair plane to Minsk on Sunday was an “act of aviation piracy,” the airline said in a statement today.Ryanair said it was “fully cooperating” with the EU safety and security agencies as well as NATO, and wouldn’t comment further due to security reasons.Kremlin Says U.S.-Russia Summit Plans Not Affected (11:45 a.m.)Tensions between Moscow’s closest ally and the West over Minsk’s forcing of a Ryanair jet to land won’t affect Russia’s efforts to arrange a summit meeting between President Vladimir Putin and his U.S. Counterpart, Joe Biden, Kremlin spokesman Dmitry Peskov said.“I wouldn’t combine all this into a single system,” Peskov told reporters on a conference call. “These are different things, after all.”Peskov declined to comment on the details of the case, including on whether Belarus gave Russia advance warning of its decision to force the plane to land or whether Moscow’s agents were involved. “Our special services are in the closest possible contact,” he said, adding that he doesn’t have detailed information about the Ryanair jet.Russia Calls Western Reaction ‘Shocking’ (11:15 a.m.)Western countries are showing double standards, according to Russian Foreign Ministry spokeswoman Maria Zakharova. “It’s shocking that the West is calling the incident in Belarus’s airspace ‘shocking,’” she wrote in a Facebook post.Zakharova cited past examples of what she said were western governments forcing planes to land, such as a 2013 episode when the plane of Bolivian President Evo Morales had to land in Austria as the U.S. searched for Edward Snowden, as evidence that the U.S. and its allies use the same tactics.U.K. Joins Calls for Sanctions (10:40 a.m.)Foreign Secretary Dominic Raab added to the voices calling for further sanctions against Belarus and the immediate release of Protasevich. In a statement, Raab condemned the arrest, adding “Mr Lukashenko must be held to account for his outlandish actions.”Russian Senator Defends Belarus (10:35 a.m.)“Formally, there was a bomb threat, so everything was done properly,” Vladimir Dzhabarov, first deputy chairman of the International Affairs committee in the upper house of parliament, said in a phone interview Monday. “I don’t see anything unusual or unacceptable in the actions of the Belarusian authorities.”The arrest of Raman Pratasevich, the journalist, was justified, he said. “This person was sitting abroad and criticizing his homeland,” he said. “It’s a warning to Tsikhanouskaya,” he said, referring to exiled opposition leader Sviatlana Tsikhanouskaya.EU Mulls Sanction Options (10:25 a.m.)Of the possible options for EU action, sanctions against individuals and entities would likely be the simplest, according to a senior official close to the European talks.Other options, such as the suspension all flights by EU airlines over Belarus and the suspension of all transit -- including ground travel -- between Belarus and the EU, would trigger increased costs for European companies, the official said.‘State-Sponsored Hijacking’ (10:10 a.m.)“This was a case of state-sponsored hijacking,” Ryanair CEO Michael O’Leary said in comments broadcast by RTE Radio. The airline has to do a “detailed debrief today with the NATO and EU authorities” after the incident, which he said saw passengers and crew held under armed guard.It appears the intent of Belarusian authorities was to remove a journalist and his traveling companion, O’Leary said. “We believe there was also some KGB agents offloaded off the aircraft as well,” he said.Irish Minister Calls for Tough EU Response (10:00 a.m.)“This was effectively aviation piracy, state sponsored,” Irish foreign minister Simon Coveney told RTE Radio. The EU’s response “has to be clear, tough, and needs to happen quickly,” he said.Belarus’s Bonds Tumble (9:30 a.m.)Worries over potential sanctions are scaring away bond investors. Belarus’s dollar bonds due 2031 tanked early on Monday, pushing yields up 23 basis points to a one-month high of 7.48%. The bonds traded at a yield of above 8% in August after authorities cracked down on protesters following Lukashenko’s claim to a landslide election victory.Flights Avoid Belarus (9:25 a.m.)Wizz Air Holdings Plc, Eastern Europe’s biggest discount carrier, said it has rerouted a service from the Ukrainian capital Kyiv to Tallinn in Estonia to avoid Belarusian airspace. A spokesman said in an email that the Budapest-based company is “continuously monitoring and evaluating the situation.”Latvia’s national carrier Airbaltic has decided to avoid Belarusian air space “for the time being,” Latvian Transport Minister Talis Linkaits said in interview with Latvijas Radio.Poland to Call for More Sanctions Against Lukashenko (9:22 a.m.)Belarus’s neighbor, Poland, will propose new sanctions against Lukashenko’s government at Monday’s EU meeting, according to Deputy Foreign Minister Pawel Jablonski. He declined to specify the type of measures Warsaw will seek, saying the government wants to consult with EU partners first.More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. U.S. Bloomberg 210524 07h40m NYC to End Remote-School Option for Students in September (Bloomberg) -- New York City Mayor Bill de Blasio said all public school students will return to their school buildings come September and that a remote option will no longer be available.Reopening the largest school system in the U.S. for the roughly one million students represents a big move toward the city’s full reopening and will be crucial to the economic recovery of New York, which has been battered by the pandemic.“You can’t have a full recovery without full strength schools,” de Blasio said on an appearance Monday on MSNBC. “More and more kids will be vaccinated, we’ve made vaccination available everywhere. It’s really time to go full strength right now.”New York joins neighboring New Jersey in eliminating a virtual option for students in the fall, among the first in the nation to pledge to bring back all students to in-person schooling.The move will be a step toward easing some of the inequities compounded by the pandemic as students of color and low-income students have struggled disproportionately. Over $100 billion of of stimulus aid from the American Rescue Plan act, in addition to aid from prior relief bills, is headed to school districts across the country to help cover the cost of reopening and addressing those differences.De Blasio had long expressed his hope that kids would return in the fall, but it was unclear whether a remote option would be offered. As the end of the school year approaches, most of the city’s students remain at home. About 600,000 students opted to remain in remote learning due to health and other concerns despite having the option to return to schools. The city began allowing in-person learning for elementary schools last December, middle schools in February and high schools in March.After new distancing guidance in March from the Centers for Disease Control and Prevention allowed the school system to open classrooms for more students, nearly two thirds of kids again chose to stay home.De Blasio said city schools would welcome parents to come into the schools starting in June to view safety protocols and get them re-acclimated. “Anyone who has a question or concern, come into your child’s school, see what’s going on, get some answers,” he said.He will also have to win over the city’s teachers, thousands of whom remain home due to safety concerns.Michael Mulgrew, the president of the largest New York City teachers union, said he supports getting as many students back in school this fall but that a remote option should remain.“There is no substitute for in-person instruction,” he said in an emailed statement. “We still have concerns about the safety of a small number of students with extreme medical challenges.”City officials have maintained that health and safety protocols have kept Covid-19 rates relatively low at schools, despite frequent closures throughout the year prompted by student cases. With nearly half of New York City vaccinated, the city’s hospitalization rate has dropped precipitously to below 1 per 100,000 residents.De Blasio said Monday that by Sept. 13, he expects more kids will be vaccinated and Covid rates will continue their steady decline. Kids ages 12 and up are now eligible for the vaccine. De Blasio said the CDC may drop their guidance to keep kids three feet apart, but that “we could make that work if we have to.”Jasmine Gripper, executive director of the Alliance for Quality Education, a coalition of parent groups, said she was surprised about the mayor’s move on Monday and that she was concerned about returning to large classes.“I think there’s a hesitancy about bringing children back if there are overcrowded classrooms,” Gripper said. “It’s not just the CDC it’s parents concerns about overcrowding. There’s a hesitancy about putting 35 people in a room together, whether six feet apart or three feet apart.”(Updates with Mulgrew comments)More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. Business Bloomberg 210524 07h36m Virgin Galactic Shares Jump Following Successful Test Flight (Bloomberg) -- Virgin Galactic Holdings Inc. climbed as much as 21% after the company founded by billionaire Richard Branson conducted a test flight to space for the first time in more than two years.The VSS Unity flight from New Mexico on Saturday marks a critical step on the path toward the start of commercial space tourism, helping to put the company back on its stated schedule for flying Branson to suborbital space as early as this summer and resuming ticket sales.“We view this event as a major milestone,” Michael Ciarmoli, an analyst at Truist Securities, said in a note to clients. Importantly, the flight carried revenue-generating scientific research experiments for NASA, and collected key data for the Federal Aviation Administration, Ciarmoli added.The stock was up 16% at $24.44, the highest in nearly six weeks, as of 9:34 a.m. in New York.Virgin Galactic’s first rocket burn since February 2019 paves the way for the next test, which is expected to carry additional employees. No date has yet been set for that step.After the 2019 flight, engineers detected damage to the spacecraft from pressure that had built up after ventilating holes were accidentally covered, according to “Test Gods,” a book published this month by New Yorker writer Nicholas Schmidle, who was given access to observe the company.The program suffered another setback in December when Unity had to glide to the ground after a rocket motor failed to ignite when it was dropped from carrier aircraft VMS Eve.A second flight attempt in February was scuttled by electrical interference to the spacecraft’s avionics, while Virgin this month said it was probing stress issues affecting Eve, before the craft was cleared to fly.(Updates with regular-session trading)More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. Business Bloomberg 210524 07h34m Tech Leads Gains in U.S. Stocks; Bitcoin Rebounds: Markets Wrap (Bloomberg) -- Technology shares led gains in U.S. stocks as inflation anxiety appeared to be easing. Bitcoin headed toward its biggest surge since February, rebounding from a weekend rout.All major groups in the S&P 500 advanced. The world’s largest cryptocurrency soared after plunging as much as 18% on Sunday. Most base metals were under pressure, with iron ore and steel sinking as China stepped up its fight against soaring commodity prices.While several analysts are warning that it may be too early to signal the all-clear on inflation risks, weaker-than-expected economic reports have helped quell investor worries. Data from the Federal Reserve Bank of Chicago showed Monday that U.S. economic activity slowed down in April. Rates on 10-year breakevens -- a market gauge of inflation expectations over the next decade -- are little changed after capping their biggest weekly decline since September.“General inflation fears are a headwind on stocks, andthey will be until it becomes clear that inflation is a temporaryphenomenon,” Tom Essaye, a former Merrill Lynch trader who founded “The Sevens Report” newsletter, wrote to clients. “Until then,expect a more volatile market -- but at this point strongpolicy support for stocks remains very much in place,and that’s a good thing.”Read: Brainard Lays Out Cost Benefits of Central Bank Digital CurrencySome corporate highlights:Virgin Galactic Holdings Inc. soared after the company founded by British billionaire Richard Branson conducted a test flight to space for the first time in more than two years.Coinbase Global Inc. climbed as Goldman Sachs Group Inc. recommended buying shares of the cryptocurrency exchange.Beyond Meat Inc. gained as the plant-based meat producer was upgraded to outperform at Bernstein.Here are some events this week:Consensus by CoinDesk brings prominent crypto voices together to discuss NFTs, exchanges and the role of central banks. Fed Governor Lael Brainard and Bridgewater founder Ray Dalio will participate. Through May 27.Bank of Indonesia rate decision Tuesday, Reserve Bank of New Zealand policy decision Wednesday, Bank of Korea rate decision Thursday.CEOs of the largest U.S. banks, including JPMorgan and Goldman Sachs, will testify before lawmakers in the Senate Banking and House Financial Services committees Wednesday.U.S. initial jobless claims, GDP, durable goods, pending home sales, Thursday.These are some of the main moves in markets:StocksThe S&P 500 rose 0.5% as of 9:30 a.m. New York timeThe Nasdaq 100 fell 0.6%The Dow Jones Industrial Average rose 0.4%The Stoxx Europe 600 fell 0.1%The MSCI World index rose 0.3%CurrenciesThe Bloomberg Dollar Spot Index fell 0.1%The euro rose 0.3% to $1.2215The British pound was little changed at $1.4149The Japanese yen rose 0.1% to 108.84 per dollarBondsThe yield on 10-year Treasuries was little changed at 1.61%Germany’s 10-year yield was little changed at -0.13%Britain’s 10-year yield declined one basis point to 0.82%CommoditiesWest Texas Intermediate crude rose 1.7% to $65 a barrelGold futures rose 0.2% to $1,882 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. Business Yahoo Finance 210524 07h32m Stock market news live updates: Stocks gain as technology shares outperform, Bitcoin recovers some losses Stocks pointed to a higher open Monday morning and looked to recover some of last week's losses. Howell date : 210524 07h36m45s Business Yahoo Finance 210524 07h32m Stock market news live updates: Stocks gain as technology shares outperform, Bitcoin recovers some losses Stocks pointed to a higher open Monday morning and looked to recover some of last week's losses. World Bloomberg 210524 07h28m Planes Rerouted, Russia Rejects Outrage: Belarus Update (Bloomberg) -- Russia dismissed European Union and U.S. outrage at the forced landing of a Ryanair Holdings Plc plane in Minsk by Belarusian authorities who arrested a journalist on board.The European Union will consider further sanctions against President Alexander Lukashenko’s administration when its leaders meet for dinner in Brussels on Monday night for the start of a two-day summit.The EU was already working on an additional package of sanctions over a disputed election last year and will now look at increasing the pressure on Belarus. Potential measures could include suspending flights over Belarus, banning the country’s national airline from landing at EU airports and blocking ground transit into the EU from Belarus, according to a person familiar with summit preparations.For now, even as Ryanair calls the interception an “act of aviation piracy,” the Irish carrier -- like many other airlines -- is still overflying Belarus airspace.Read More: How Belarus Snatched a Dissident Off a Ryanair Plane From GreeceKey Developments:Ryanair jet diverted to Minsk under escort from Mig-29 fighter jetBelarusian journalist removed from plane in Belarusian capitalU.S., EU and U.K. leaders condemn actions by authorities in BelarusRussia defends Belarus, its closest allyFlights over Belarus airspace continueAll times are Central European Time.Tsikhanouskaya Calls for Belarus Sanctions (3:28 p.m.)Exiled Belarus opposition leader Svetlana Tsikhanouskaya called for sanctions against the country during a Monday phone call with EU foreign policy chief Josep Borrell. She is scheduled to hold a call later in the day with members of President Joe Biden’s administration.Tsikhanouskaya also said the whereabouts of the detained journalist Raman Pratasevich are unknown and his lawyer is unable to contact him. The journalist’s girlfriend, who is a Russian citizen, is being held in a Minsk prison and has been refused assistance from the Russian consulate.Lufthansa Flight From Minsk Delayed by Threat (3:02 p.m.)Lufthansa flight LH1487 from Minsk to Frankfurt was delayed following a “security alert,” the German airline said in a statement. The Minsk airport said on its Telegram channel that it had received an anonymous email about a planned “terrorist attack.” Lufthansa said 51 passengers, including five crew members, were on board the plane.“We are cooperating with the authorities, who are searching the aircraft again before departure and subjecting the passengers to another security check,” Lufthansa said on Monday. The search includes unloading all suitcases and cargo.Czech Premier Says EU Must Be Tough (2:50 p.m.)The proposals for discussion about EU’s response include banning Belarus airlines from landing in the EU or suspending flights over Belarus’s airspace, Czech Prime Minister Andrej Babis said. He said that according to available information, there were four Russian citizens on the Raynair flight “who probably had a lot to do with this unbelievable act.”“Europe’s response must be tough,” Babis told reporters before departing to EU summit.Passenger Number Confusion (2:40 p.m.)Lithuania’s criminal police said on Monday that 121 of the 126 passengers who left Athens on the flight arrived in Vilnius. On Sunday, both Greece and Lithuania said 171 passengers and crew were on the flight, which Lithuania said Monday was the number of reservations. There was also confusion over infant passengers, who didn’t require tickets, and some boarding passes that weren’t digital. Ryanair hasn’t confirmed the numbers.Lithuania’s transport member also said the country would ban flights to and from Belarus airspace starting at 3 a.m. on Tuesday. The ban will affect 26 flights a day. Lithuania’s neighbor Poland will propose at the EU summit on Monday that all flights between the bloc and Belarus be halted.Poland Wants to Halt All Flights Between EU and Belarus (1:55 p.m.)Poland has come as one of the strongest voices demanding firm action. At the meeting of leaders in Brussels Prime Minister Mateusz Morawiecki will propose halting all flights between EU and Belarus.Belarusian Activists Ask EU For Help (1:50 p.m.)Holding a placard reading “SOS,” Belarusian activists in Poland appealed to the EU for help. Standing in front of Belarus embassy in Warsaw, Nexta founder and blogger Stsiapan Putsila said he’s received “more than a thousand threats” since Sunday. “We can’t stay silent,” said Jana Shostak, another activist.Police Revise Passenger Numbers (1:40 p.m.)According to Lithuania’s criminal police, 121 of the 126 passengers who left Athens on the flight arrived in Vilnius. The captain of the airliner consulted with Ryanair’s management before deciding to divert to Minsk. On Sunday, both Greece and Lithuania said 171 passengers and crew were on the flight.Poland Increases Protection of Activists (1:30 p.m.)Polish Deputy Foreign Minister Pawel Jablonski said on Monday his country was setting up “special protection” for activists on Polish territory who “could be in the cross-hairs of Belarusian or Russian services.”Raman Pratasevich, arrested after the Ryanair plane was diverted to Minsk, worked for Nexta, a media group registered and run out of Warsaw.Jablonski urged activists to avoid contact with Belarus as “we can’t tell what the regime is capable of.”France Says All Options Being Considered (1:20 p.m.)“Nothing is off the table,” a French diplomat told journalists when asked about possible punitive measures against Belarus.In addition to sanctions targeting Belarusian officials and companies, the EU is mulling the suspension of overflights of European airlines over Belarus, a landing ban for flag carrier Belavia in European airports, and the suspension of transits (including land) from Belarus to the EU, the French diplomat added, asking not to be named in line with policy.Ryanair Is Flying Over Belarus Today (1:10 p.m.)Flight FR3340 from Paphos, Cyprus, is scheduled to land at Talinn, Estonia, at 2:30 p.m. local time. The route takes the plane directly across Belarus territory, highlighting the mixed messaging coming out of Europe in response to Sunday’s incident.The airspace over Belarus is part of a major route for flights between Asia and Europe, with some carriers including Deutsche Lufthansa AG and cargo hauler FedEx Corp. continuing to fly over the country on Monday. Airlines have routed traffic over Belarus to avoid the restive eastern Ukraine region that’s been off-limits since a Malaysian Airlines Boeing 777 jet was shot down there in 2014, killing 298 people.Poland Orders Probe (12:20 p.m.)Poland’s state prosecutor said it has ordered an investigation into the landing because the Ryanair jet was registered in Poland and therefore falls under Polish jurisdiction.Estonia to Raise Issue at UN Security Council (12:00 p.m.)Estonia plans to raise the Belarus issue at the Security Council and has already started consultations to have a discussion, public broadcaster ERR cited the country’s foreign minister, Eva-Maria Liimets, as saying.Ryanair Cooperating with EU, NATO (11:50 a.m.)The diversion of the Ryanair plane to Minsk on Sunday was an “act of aviation piracy,” the airline said in a statement today.Ryanair said it was “fully cooperating” with the EU safety and security agencies as well as NATO, and wouldn’t comment further due to security reasons.Kremlin Says U.S.-Russia Summit Plans Not Affected (11:45 a.m.)Tensions between Moscow’s closest ally and the West over Minsk’s forcing of a Ryanair jet to land won’t affect Russia’s efforts to arrange a summit meeting between President Vladimir Putin and his U.S. Counterpart, Joe Biden, Kremlin spokesman Dmitry Peskov said.“I wouldn’t combine all this into a single system,” Peskov told reporters on a conference call. “These are different things, after all.”Peskov declined to comment on the details of the case, including on whether Belarus gave Russia advance warning of its decision to force the plane to land or whether Moscow’s agents were involved. “Our special services are in the closest possible contact,” he said, adding that he doesn’t have detailed information about the Ryanair jet.Russia Calls Western Reaction ‘Shocking’ (11:15 a.m.)Western countries are showing double standards, according to Russian Foreign Ministry spokeswoman Maria Zakharova. “It’s shocking that the West is calling the incident in Belarus’s airspace ‘shocking,’” she wrote in a Facebook post.Zakharova cited past examples of what she said were western governments forcing planes to land, such as a 2013 episode when the plane of Bolivian President Evo Morales had to land in Austria as the U.S. searched for Edward Snowden, as evidence that the U.S. and its allies use the same tactics.U.K. Joins Calls for Sanctions (10:40 a.m.)Foreign Secretary Dominic Raab added to the voices calling for further sanctions against Belarus and the immediate release of Protasevich. In a statement, Raab condemned the arrest, adding “Mr Lukashenko must be held to account for his outlandish actions.”Russian Senator Defends Belarus (10:35 a.m.)“Formally, there was a bomb threat, so everything was done properly,” Vladimir Dzhabarov, first deputy chairman of the International Affairs committee in the upper house of parliament, said in a phone interview Monday. “I don’t see anything unusual or unacceptable in the actions of the Belarusian authorities.”The arrest of Raman Pratasevich, the journalist, was justified, he said. “This person was sitting abroad and criticizing his homeland,” he said. “It’s a warning to Tsikhanouskaya,” he said, referring to exiled opposition leader Sviatlana Tsikhanouskaya.EU Mulls Sanction Options (10:25 a.m.)Of the possible options for EU action, sanctions against individuals and entities would likely be the simplest, according to a senior official close to the European talks.Other options, such as the suspension all flights by EU airlines over Belarus and the suspension of all transit -- including ground travel -- between Belarus and the EU, would trigger increased costs for European companies, the official said.‘State-Sponsored Hijacking’ (10:10 a.m.)“This was a case of state-sponsored hijacking,” Ryanair CEO Michael O’Leary said in comments broadcast by RTE Radio. The airline has to do a “detailed debrief today with the NATO and EU authorities” after the incident, which he said saw passengers and crew held under armed guard.It appears the intent of Belarusian authorities was to remove a journalist and his traveling companion, O’Leary said. “We believe there was also some KGB agents offloaded off the aircraft as well,” he said.Irish Minister Calls for Tough EU Response (10:00 a.m.)“This was effectively aviation piracy, state sponsored,” Irish foreign minister Simon Coveney told RTE Radio. The EU’s response “has to be clear, tough, and needs to happen quickly,” he said.Belarus’s Bonds Tumble (9:30 a.m.)Worries over potential sanctions are scaring away bond investors. Belarus’s dollar bonds due 2031 tanked early on Monday, pushing yields up 23 basis points to a one-month high of 7.48%. The bonds traded at a yield of above 8% in August after authorities cracked down on protesters following Lukashenko’s claim to a landslide election victory.Flights Avoid Belarus (9:25 a.m.)Wizz Air Holdings Plc, Eastern Europe’s biggest discount carrier, said it has rerouted a service from the Ukrainian capital Kyiv to Tallinn in Estonia to avoid Belarusian airspace. A spokesman said in an email that the Budapest-based company is “continuously monitoring and evaluating the situation.”Latvia’s national carrier Airbaltic has decided to avoid Belarusian air space “for the time being,” Latvian Transport Minister Talis Linkaits said in interview with Latvijas Radio.Poland to Call for More Sanctions Against Lukashenko (9:22 a.m.)Belarus’s neighbor, Poland, will propose new sanctions against Lukashenko’s government at Monday’s EU meeting, according to Deputy Foreign Minister Pawel Jablonski. He declined to specify the type of measures Warsaw will seek, saying the government wants to consult with EU partners first.More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. Business Bloomberg 210524 07h26m Bitcoin Bounces Back Above $38,000 After Weekend Selloff (Bloomberg) -- Bitcoin rebounded from its roller-coaster weekend, with prices on track for the biggest gain in more than three months.The world’s largest cryptocurrency was trading 12% higher around $37,781 as of 9:24 a.m. in New York. Digital currencies have been gripped by volatility in the past two weeks, with Bitcoin prices plunging as much as 18% on Sunday.Traders may be feeling more positive as the crypto industry holds one of its biggest conferences of the year. Federal Reserve Governor Lael Brainard noted at the Consensus conference that a big issue for central banks with regard to a digital currency is the impact on the financial system.If people can keep digital dollars in a wallet that’s unrelated to a bank account, and easily use that wallet to make payments and transfers, that then undermines the commercial banking system, Brainard said. . It could starve the banks of deposits, which of course are vital for making loans, she noted.“Love or hate it, Bitcoin is impacting markets,” said Amy Wu Silverman, equity derivatives strategist at RBC Capital Markets, in a note Sunday. “What is Bitcoin—a currency? A 1-for-1 manifestation of Elon Musk’s thoughts? A ‘factor’ of momo+meme+speculation+angry Gen Z’s? Like a tween Justin Bieber, you don’t know what Bitcoin will be yet -- but you have a feeling it will be big.”Ether, the second-largest token, also rebounded on Monday, jumping 15% to about $2,373.The extreme volatility of late has prompted analysts to try guessing the outlook for digital currencies, with a JPMorgan Chase & Co. team saying it’s premature to call the end of the Bitcoin selloff. Goldman Sachs Group Inc. signaled that extreme swings hamper crypto’s appeal for institutional investors.More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. Business Reuters 210524 07h16m UPDATE 1-UK's FirstGroup faces more pressure over EQT deal FirstGroup's biggest investor on Monday again asked shareholders of the London-listed transport operator to vote against the company's sale of two North American bus businesses, while proxy advisory firm Glass Lewis joined the opposition. The $4.6 billion sale to Swedish private equity firm EQT Infrastructure has led to a shareholder rebellion after Coast Capital, the British firm's top investor with a 14% stake, opposed the deal on concerns that it undervalued the assets. Business Bloomberg 210524 07h16m Libor Replacements Multiply in Shift That Could Fracture Markets (Bloomberg) -- A slew of newer and lesser known reference rates are staking their claim to a share of the post-Libor landscape as the outlook for the space grows increasingly fractured.Once largely considered afterthoughts in the race to replace the London interbank offered rate, a clutch of upstart challengers, from Ameribor and BSBY to ICE’s Bank Yield Index, have been gaining traction, or at least garnering more attention, in recent weeks. Their ascent comes as borrowers and bankers increasingly question whether the Federal Reserve’s long-preferred replacement, the Secured Overnight Financing Rate, is the best option for the multitude of markets that must ditch scandal-tainted Libor by year-end.At the heart of the matter are two shortcomings that have long dogged SOFR: a lack of a forward-looking curve, and the absence of a credit component -- both key features of Libor that the newer rates all offer. Wall Street, for its part, has already begun signaling some support for the lesser-known alternatives. But while multiple rates could help meet the needs of various business lines, they also risk making a complex transition even more difficult, while potentially slowing the build up of liquidity in any one benchmark.“While there was a big push to try and have SOFR be the monolith, the market seems to have other views of the type of benchmark it would like to have for very specific transactions,” said Mark Cabana, head of U.S. interest-rate strategy at Bank of America Corp. “Will SOFR end up being the key lending rate in the future? I don’t know. I think there are real questions around that.”Nowhere is the race to succeed Libor more up in the air than in the multitrillion-dollar syndicated lending markets.Almost half of respondents in a TD Securities survey published May 14 singled out loans when asked where they expect to see the greatest adoption of so-called credit-sensitive rates, with another 19% choosing all cash products and a further 22% selecting both cash and derivatives markets.One of the main issues hindering the widespread adoption of SOFR continues to be the lack of a forward-looking term structure, according to Meredith Coffey, executive vice president of research & public policy at the Loan Syndications and Trading Association.Yet the situation is more complex than a single obstacle. Borrowers, lenders and investors all have different needs that may be better met by different rates, said Coffey, who is also a member of the Alternative Reference Rates Committee, the Fed-backed group guiding the Libor transition in the U.S.Banks that are offering revolving credit facilities, for example, are exposed to funding risk, and may therefore be more inclined to do a transaction based on a credit-sensitive rate, while certain borrowers may prefer SOFR, especially once a forward-looking term rate backed by robust derivatives trading can be established.“The key thing is we’re going to be in a multirate environment,” Coffey said. “We’ve seen it. We’ve expected it. And it’s not a tragedy.”For more on the transition away from Libor, subscribe to the Libor CountdownJust last week, Duluth Holdings Inc. became the first nonfinancial company to get a corporate syndicated loan tied to the Bloomberg Short Term Bank Yield Index, following the first swaps trade and first bank bond linked to the benchmark in April.CME Group Inc., which launched SOFR futures more than three years ago, said Monday it plans to introduce futures based on BSBY sometime in the third quarter, with over-the-counter swap clearing to debut in the fourth quarter, pending regulatory review. CBOE Futures Exchange launched Ameribor futures in August 2019.BSBY is administered by Bloomberg Index Services Limited, a subsidiary of Bloomberg LP, the parent of Bloomberg News.“We appreciated it had a very high correlation to Libor and we could set some term portions on it, which under the SOFR arrangement it was going to be a little more complicated,” Duluth Chief Financial Officer Dave Loretta said in an interview.Last month the LSTA included Ameribor, overseen by the American Financial Exchange, as a fallback option for its suggested contract provisions meant to help loans shift to alternative rates when Libor is discontinued.The Bank Yield Index, for its part, has yet to launch, but like BSBY and Ameribor will be forward looking and credit focused. It’s overseen by the ICE Benchmark Administration, the same company that currently oversees Libor.Liquidity ConcernsStill, not everyone is convinced more options are a good thing.“We are concerned that it may fragment markets or decrease derivatives market liquidity,” TD Securities’ Priya Misra wrote in a recent note to clients. In a separate report she said that “it is unclear how any credit-sensitive rate would behave in a credit event.”Bank of England Governor Andrew Bailey was more emphatic earlier this month, saying at an ARRC-hosted symposium that a myriad of credit-sensitive alternatives is not a viable option.“While these rates may offer convenience as a short-term substitution, they present a range of complex longer-term risks,” Bailey said during a panel with Federal Reserve Bank of New York President John Williams. “While they may remove the reliance on expert judgment, they veneer over the fundamental challenges of thin and incomplete markets through the extrapolation of data.”The ARRC encourages everyone to understand the benchmarks they choose as alternatives to Libor so that they can avoid having to go through a costly and risky transition again, Tom Wipf, chair of the group, said via email. He added that SOFR is a robust rate that will meet many of the needs of market participants.Ultimately, few are arguing that SOFR won’t play an important role in the post-Libor landscape over the next few years, and many still see it as the likely go-to benchmark for most types of transactions going forward.Pension funds will use it to hedge interest-rate risk, while mortgage lenders will use it to hedge prepayment risk. So too will those who want to make a wager on the direction of U.S. monetary policy.In fact, 60% of respondents in the TD survey said they expect the derivatives market to mostly lean on some iteration of the rate as it transitions away from Libor.Others aren’t so sure.“What will the dominant rate be in five or 10 years from now? That’s where I have more doubts about SOFR because of the markets’ tepid adoption of it today,” said Bank of America’s Cabana. “There’s still another chapter of the Libor transition that has yet to be written and that will involve credit-sensitive rates.”(Adds CME Group’s BSBY futures announcement in 12th 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. Business Bloomberg 210524 07h15m Exxon Activist Battle Turns Climate Angst Into Referendum on CEO (Bloomberg) -- An unprecedented fight over who should sit on the board of Exxon Mobil Corp. is turning into a referendum on Chief Executive Officer Darren Woods as a decades-long struggle by climate campaigners comes to a head.Activist investor Engine No. 1 LLC wants to replace one-third of Exxon’s board in an effort to force the Western world’s largest oil explorer to embrace a transition away from fossil fuels and end a decade of what it calls “value destruction.” Shareholders are set to gather — virtually — for their annual meeting on May 26.The stakes are high. Under Exxon’s bylaws, a victory for any dissident director would mean an incumbent must step down, equating to a zero-sum proxy contest: of 16 candidates, only 12 will prevail. Any dilution of Woods’s influence over the board could derail his long-term plans and force strategic and tactical changes he has previously rejected.Although Engine No. 1 hasn’t targeted Woods for removal, even a partial victory for the activist would be a serious, and perhaps fatal, blow to his leadership, according to Ceres, a coalition of environmentally active investors managing $37 trillion.“I don’t see how Darren Woods remains as CEO if one of the dissidents, let alone all four, are elected,” said Andrew Logan, director of oil and gas at Ceres. “It would be such a sign of fundamental dissatisfaction with the status quo that something would have to change. And that starts with the CEO.”Exxon's engagement with environmental activists was once characterized by a sense of bemusement — under former CEO Lee Raymond, Greenpeace protesters outside its annual meetings were offered donuts. But as worries about climate change have gone mainstream in the investment world, the clash has evolved into a confrontation over boardroom seats.In other corners of the commodities sector, shareholders this year have already shown frustration with executives’ reluctance to embrace tough environmental goals. DuPont de Nemours Inc. suffered an 81% vote against management on plastic-pollution disclosures, while ConocoPhillips lost a contest on adopting more stringent emission targets.Exxon’s meeting this year threatens to be one of the stormiest on the U.S. corporate calendar, made all the more remarkable for being instigated by a newly formed fund that only has a $54 million, or 0.02%, stake in the oil behemoth. Investor dissatisfaction with the company largely centers on two issues that are becoming more interlinked: climate change and profits. The oil giant envisages a profitable, long-term future for fossil fuels, but sees no point in investing in traditional renewable energy businesses. It also refuses to commit to a net-zero emissions target, unlike European rivals.Climate concerns are are resonating more deeply with investors at the same time that Exxon’s status as a financial powerhouse crumbles after multiple corporate missteps, some of which preceded Woods’s elevation to CEO in 2017. Returns on invested capital are a fraction of what they were in Exxon’s heyday a decade ago and debt ballooned 40% last year as Covid-19 paralyzed economies and energy demand around the world. Under mounting pressure and concerns over Exxon’s ability to pay the S&P 500’s third-largest dividend, the CEO slashed an ambitious $200 billion expansion program by a third late last year. It was a relief to some investors who had questioned both the cost and the need for such projects at a time when policymakers — and even rivals like BP Plc and Royal Dutch Shell Plc — are planning for the twilight of the petroleum era.Still, Engine No. 1 says Exxon needs higher-quality directors who are willing to challenge management. Exxon missed key industry trends such as the shale revolution, “the shift to focusing on project returns over chasing production growth, and the need to gradually prepare for rather than ignore the energy transition,” according to the San Francisco-based activist.After receiving early backing from major state pension funds, Engine No. 1’s campaign gathered momentum this month as two prominent shareholder-advisory firms, Institutional Shareholder Services Inc. and Glass Lewis & Co., threw their partial support behind the activist’s efforts. ISS wrote a scathing rebuke of Exxon’s climate strategy, saying the company had only taken “incremental steps to prepare for the inevitable.”Top 20 shareholder Legal & General Investment Management, a previous critic of Exxon, is also backing Engine No. 1 and has pledged to vote against Woods. However, the voting intentions of some other major investors, such as Vanguard Group, BlackRock Inc. and State Street Corp. aren’t clear — all three declined to comment when contacted by Bloomberg News. Norway’s giant sovereign wealth fund said late last week that it would support the reelection of most Exxon directors, but not Woods, part of its long-standing push to separate the roles of CEO and chairman at Exxon.With such animosity brewing, the usual course of action would be for Exxon’s board to meet with the activists and hash out a compromise. But that has yet to happen, and both sides appear to be entrenched.Exxon said in a May 14 letter to shareholders its board “listens and responds to shareholder feedback,” but that Engine No. 1, founded only a few months ago, wasn’t interested in engaging and “is trying to replace four of our world-class directors with unqualified nominees.'' The company added that the activist fund's plans would “derail our progress and jeopardize your dividend.”In another letter to shareholders on Sunday, Exxon said that over the next 12 months it plans to name two new directors, one with energy industry and one with climate experience.For its part, Engine No. 1 said Exxon refused to meet its nominees: Gregory Goff, former CEO of refiner Andeavor; environmental scientist Kaisa Hietala; private equity investor Alexander Karsner; and Anders Runevad, ex-CEO of power producer Vestas Wind Systems A/S.Exxon did talk with another investor, hedge fund D.E. Shaw & Co., which built a stake in an effort to push for change. Those discussions led to the appointment of the new directors, including activist investor Jeff Ubben. The oil company has also announced new emissions targets, started a low-carbon business, and supported policies that will help technological innovations like carbon capture.In some respects Exxon is in a better position that it was at the start of 2021. Its stock has rallied more than 40% as oil prices rebounded and lockdowns are eased. Engine No. 1 points to its involvement as the turning point, while Exxon claims the market is rewarding prudent cost cutting and high-return investments made over the last couple of years. The forthcoming vote will help to determine which side of the debate other investors lean toward.“There’s a governance challenge at Exxon,” said John Hoeppner, head of U.S. sustainable investments at Legal & General. “How seriously is the current board questioning management’s business model? It’s important to add urgency to the debate.”(Updates with comments from letter to shareholder in 17th 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. Business Bloomberg 210524 07h07m Oil Climbs Near $65 With Iran Saying Differences Remain on Deal (Bloomberg) -- Oil climbed toward $65 a barrel as Iran said gaps remain in reaching a deal that could end U.S. sanctions on its crude.West Texas Intermediate futures were 2% higher, extending Friday’s gain. Iran said there are still differences around the timing of when countries will return to compliance with the original 2015 nuclear agreement. While the market is anticipating the Islamic Republic’s supply will pick up again by late summer, the demand recovery will be strong enough to absorb it, Goldman Sachs Group Inc said. The bank expects oil to hit $80 a barrel in the next few months.Talks between Iran and world powers will continue in Vienna this week to resolve outstanding issues. As part of that process, Iran extended a UN nuclear inspections agreement, buying diplomats time to revive the landmark deal that would usher in an official return of the Persian Gulf nation to world oil markets.Crude has been largely stuck between $60 and $70 a barrel recently. There are signs that demand in the West is recovering sharply with virus cases in the U.S. below 30,000 every day last week for the first time since June, though parts of Asia continue to see significant infections. The Organization of Petroleum Exporting Countries and its allies are also loosening output curbs.“The specter of Iranian sanctions relief looms large over the oil market,” said PVM Oil Associates analyst Stephen Brennock. “Additional supply from Tehran is poised to be absorbed by the market as a result of a vaccine-spurred surge in demand over the coming months.”Physical markets continue to get a boost from a raft of buying from refiners in Asia. Japan’s Fuji Oil became the latest company to buy Middle Eastern crude on Monday, after a spate of bullish interest last week.Goldman isn’t alone in its view on the impact of returning Iranian supply. Citigroup Inc. said it expects only a partial return of the country’s barrels initially. The bank still sees oil hitting the mid-$70s in the third quarter, but said prices could retreat thereafter.More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. Howell date : 210524 07h06m08s World Bloomberg 210524 06h53m Russia Rejects Western Outrage at Plane Arrest: Belarus Update (Bloomberg) -- Russia dismissed European Union and U.S. outrage at the forced landing of a Ryanair Holdings Plc plane in Minsk by Belarusian authorities who arrested a journalist on board.The European Union will consider further sanctions against President Alexander Lukashenko’s administration when its leaders meet for dinner in Brussels on Monday night for the start of a two-day summit.The EU was already working on an additional package of sanctions over a disputed election last year and will now look at increasing the pressure on Belarus. Potential measures could include suspending flights over Belarus, banning the country’s national airline from landing at EU airports and blocking ground transit into the EU from Belarus, according to a person familiar with summit preparations.For now, even as Ryanair calls the interception an “act of aviation piracy,” the Irish carrier -- like many other airlines -- is still overflying Belarus airspace.Read More: How Belarus Snatched a Dissident Off a Ryanair Plane From GreeceKey Developments:Ryanair jet diverted to Minsk under escort from Mig-29 fighter jetBelarusian journalist removed from plane in Belarusian capitalU.S., EU and U.K. leaders condemn actions by authorities in BelarusRussia defends Belarus, its closest allyFlights over Belarus airspace continueAll times are Central European Time.Czech Premier Says EU Must Be Tough (2:50 p.m.)The proposals for discussion about EU’s response include banning Belarus airlines from landing in the EU or suspending flights over Belarus’s airspace, Czech Prime Minister Andrej Babis said. He said that according to available information, there were four Russian citizens on the Raynair flight “who probably had a lot to do with this unbelievable act.”“Europe’s response must be tough,” Babis told reporters before departing to EU summit. Passenger Number Confusion (2:40 p.m.)Lithuania’s criminal police said on Monday that 121 of the 126 passengers who left Athens on the flight arrived in Vilnius. On Sunday, both Greece and Lithuania said 171 passengers and crew were on the flight, which Lithuania said Monday was the number of reservations. There was also confusion over infant passengers, who didn’t require tickets, and some boarding passes that weren’t digital. Ryanair hasn’t confirmed the numbers.Lithuania’s transport member also said the country would ban flights to and from Belarus airspace starting at 3 a.m. on Tuesday. The ban will affect 26 flights a day. Lithuania’s neighbor Poland will propose at the EU summit on Monday that all flights between the bloc and Belarus be halted.Poland Wants to Halt All Flights Between EU and Belarus (1:55 p.m.)Poland has come as one of the strongest voices demanding firm action. At the meeting of leaders in Brussels Prime Minister Mateusz Morawiecki will propose halting all flights between EU and Belarus.Belarusian Activists Ask EU For Help (1:50 p.m.)Holding a placard reading “SOS,” Belarusian activists in Poland appealed to the EU for help. Standing in front of Belarus embassy in Warsaw, Nexta founder and blogger Stsiapan Putsila said he’s received “more than a thousand threats” since Sunday. “We can’t stay silent,” said Jana Shostak, another activist.Police Revise Passenger Numbers (1:40 p.m.)According to Lithuania’s criminal police, 121 of the 126 passengers who left Athens on the flight arrived in Vilnius. The captain of the airliner consulted with Ryanair’s management before deciding to divert to Minsk. On Sunday, both Greece and Lithuania said 171 passengers and crew were on the flight.Poland Increases Protection of Activists (1:30 p.m.)Polish Deputy Foreign Minister Pawel Jablonski said on Monday his country was setting up “special protection” for activists on Polish territory who “could be in the cross-hairs of Belarusian or Russian services.”Raman Pratasevich, arrested after the Ryanair plane was diverted to Minsk, worked for Nexta, a media group registered and run out of Warsaw.Jablonski urged activists to avoid contact with Belarus as “we can’t tell what the regime is capable of.”France Says All Options Being Considered (1:20 p.m.)“Nothing is off the table,” a French diplomat told journalists when asked about possible punitive measures against Belarus.In addition to sanctions targeting Belarusian officials and companies, the EU is mulling the suspension of overflights of European airlines over Belarus, a landing ban for flag carrier Belavia in European airports, and the suspension of transits (including land) from Belarus to the EU, the French diplomat added, asking not to be named in line with policy.Ryanair Is Flying Over Belarus Today (1:10 p.m.)Flight FR3340 from Paphos, Cyprus, is scheduled to land at Talinn, Estonia, at 2:30 p.m. local time. The route takes the plane directly across Belarus territory, highlighting the mixed messaging coming out of Europe in response to Sunday’s incident.The airspace over Belarus is part of a major route for flights between Asia and Europe, with some carriers including Deutsche Lufthansa AG and cargo hauler FedEx Corp. continuing to fly over the country on Monday. Airlines have routed traffic over Belarus to avoid the restive eastern Ukraine region that’s been off-limits since a Malaysian Airlines Boeing 777 jet was shot down there in 2014, killing 298 people.Poland Orders Probe (12:20 p.m.)Poland’s state prosecutor said it has ordered an investigation into the landing because the Ryanair jet was registered in Poland and therefore falls under Polish jurisdiction.Estonia to Raise Issue at UN Security Council (12:00 p.m.)Estonia plans to raise the Belarus issue at the Security Council and has already started consultations to have a discussion, public broadcaster ERR cited the country’s foreign minister, Eva-Maria Liimets, as saying.Ryanair Cooperating with EU, NATO (11:50 a.m.)The diversion of the Ryanair plane to Minsk on Sunday was an “act of aviation piracy,” the airline said in a statement today.Ryanair said it was “fully cooperating” with the EU safety and security agencies as well as NATO, and wouldn’t comment further due to security reasons.Kremlin Says U.S.-Russia Summit Plans Not Affected (11:45 a.m.)Tensions between Moscow’s closest ally and the West over Minsk’s forcing of a Ryanair jet to land won’t affect Russia’s efforts to arrange a summit meeting between President Vladimir Putin and his U.S. Counterpart, Joe Biden, Kremlin spokesman Dmitry Peskov said.“I wouldn’t combine all this into a single system,” Peskov told reporters on a conference call. “These are different things, after all.”Peskov declined to comment on the details of the case, including on whether Belarus gave Russia advance warning of its decision to force the plane to land or whether Moscow’s agents were involved. “Our special services are in the closest possible contact,” he said, adding that he doesn’t have detailed information about the Ryanair jet.Russia Calls Western Reaction ‘Shocking’ (11:15 a.m.)Western countries are showing double standards, according to Russian Foreign Ministry spokeswoman Maria Zakharova. “It’s shocking that the West is calling the incident in Belarus’s airspace ‘shocking,’” she wrote in a Facebook post.Zakharova cited past examples of what she said were western governments forcing planes to land, such as a 2013 episode when the plane of Bolivian President Evo Morales had to land in Austria as the U.S. searched for Edward Snowden, as evidence that the U.S. and its allies use the same tactics.U.K. Joins Calls for Sanctions (10:40 a.m.)Foreign Secretary Dominic Raab added to the voices calling for further sanctions against Belarus and the immediate release of Protasevich. In a statement, Raab condemned the arrest, adding “Mr Lukashenko must be held to account for his outlandish actions.”Russian Senator Defends Belarus (10:35 a.m.)“Formally, there was a bomb threat, so everything was done properly,” Vladimir Dzhabarov, first deputy chairman of the International Affairs committee in the upper house of parliament, said in a phone interview Monday. “I don’t see anything unusual or unacceptable in the actions of the Belarusian authorities.”The arrest of Raman Pratasevich, the journalist, was justified, he said. “This person was sitting abroad and criticizing his homeland,” he said. “It’s a warning to Tsikhanouskaya,” he said, referring to exiled opposition leader Sviatlana Tsikhanouskaya.EU Mulls Sanction Options (10:25 a.m.)Of the possible options for EU action, sanctions against individuals and entities would likely be the simplest, according to a senior official close to the European talks.Other options, such as the suspension all flights by EU airlines over Belarus and the suspension of all transit -- including ground travel -- between Belarus and the EU, would trigger increased costs for European companies, the official said.‘State-Sponsored Hijacking’ (10:10 a.m.)“This was a case of state-sponsored hijacking,” Ryanair CEO Michael O’Leary said in comments broadcast by RTE Radio. The airline has to do a “detailed debrief today with the NATO and EU authorities” after the incident, which he said saw passengers and crew held under armed guard.It appears the intent of Belarusian authorities was to remove a journalist and his traveling companion, O’Leary said. “We believe there was also some KGB agents offloaded off the aircraft as well,” he said.Irish Minister Calls for Tough EU Response (10:00 a.m.)“This was effectively aviation piracy, state sponsored,” Irish foreign minister Simon Coveney told RTE Radio. The EU’s response “has to be clear, tough, and needs to happen quickly,” he said.Belarus’s Bonds Tumble (9:30 a.m.)Worries over potential sanctions are scaring away bond investors. Belarus’s dollar bonds due 2031 tanked early on Monday, pushing yields up 23 basis points to a one-month high of 7.48%. The bonds traded at a yield of above 8% in August after authorities cracked down on protesters following Lukashenko’s claim to a landslide election victory.Flights Avoid Belarus (9:25 a.m.)Wizz Air Holdings Plc, Eastern Europe’s biggest discount carrier, said it has rerouted a service from the Ukrainian capital Kyiv to Tallinn in Estonia to avoid Belarusian airspace. A spokesman said in an email that the Budapest-based company is “continuously monitoring and evaluating the situation.”Latvia’s national carrier Airbaltic has decided to avoid Belarusian air space “for the time being,” Latvian Transport Minister Talis Linkaits said in interview with Latvijas Radio.Poland to Call for More Sanctions Against Lukashenko (9:22 a.m.)Belarus’s neighbor, Poland, will propose new sanctions against Lukashenko’s government at Monday’s EU meeting, according to Deputy Foreign Minister Pawel Jablonski. He declined to specify the type of measures Warsaw will seek, saying the government wants to consult with EU partners first.More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. Business Yahoo Finance 210524 06h50m Google CEO: The digital divide is 'easier to bridge than most people think' 'I think it's our duty to make sure it's possible, even without a college degree, to have a meaningful and fulfilling life.' Business Bloomberg 210524 06h44m China Targets ‘Speculators and Hoarders’ to Stop Commodity Boom (Bloomberg) -- China stepped up its fight against soaring commodities prices, summoning top executives to a meeting that threatened severe punishment for violations ranging from excessive speculation to spreading fake news.The government will show “zero tolerance” for monopoly behavior and hoarding, the National Development and Reform Commission said after leaders of top metals producers were called to a meeting in Beijing with multiple government departments on Sunday.The push to rein in surging metals prices rippled across markets -- with steel dropping as much as 6% and iron ore tumbling by close to the daily limit -- before prices steadied later in the session. Most base metals were also under pressure.“With policy risk shifting toward government intervention, prices will surely be affected by market sentiment,” said Li Ye, an analyst at Shenyin Wanguo Futures Co. in Shanghai. “The rapid surge in commodity prices has badly affected manufacturers and market orders, leading to losses and defaults.”There’s been a steady drumbeat of government warnings about the consequences of commodity prices that are near the highest level in almost a decade. But aside from changes to trading rules at futures exchanges, there hasn’t been a lot of action. Beijing is likely to face a “potential exhaustion of policy options” to restrain the rally, Citigroup Inc. said in a note.The warning from the NDRC comes as a broad surge in commodities prices fuels fears that faster inflation could dent economic growth in China and beyond. Investors have been piling into industrial metals on bets that the world will rebound strongly from the pandemic, but concerns about the knock-on impact on demand are rising as manufacturers are forced to raise the cost of finished goods.“It might not be great for the speculative community, but it’s good news for the world in general,” Amelia Xiao Fu, head of global commodities strategy at BOCI Global Commodities Ltd. said by phone from London. “I think prices could become calmer, and the room for excessive rallies may be limited.”In targeting commodity prices, authorities are fighting trends over which they have only partial control as the world economy reboots with supply chains stretched. The government is also tackling the consequences of its own efforts to reduce greenhouse gas emissions, which have contributed to price gains.The NDRC’s statement is the toughest comment yet from the government, which started warning about higher raw-materials prices in April. The officials from the iron ore, steel, copper and aluminum firms that met with five state agencies in Beijing on Sunday were told excessive speculation and rising international prices were to blame for recent advances.Key enterprises should “actively fulfill their social responsibilities” and take the lead in maintaining market order, the NDRC said in a statement. “Do not collude with each other to manipulate the prices, fabricate and disseminate price increase information, and do not hoard and drive up prices.”There’s been an unusual amount of attention from policy makers on commodities in recent weeks. China’s factory-gate prices rose at the fastest pace in more than three years in April, sparking concerns that costlier raw materials could hamper the economic recovery or feed into higher consumer prices.The deputy governor of the People’s Bank of China pledged a “basically stable” yuan in a statement on Sunday, right after another central bank official said the currency should appreciate to offset the rising cost of commodity imports. The comments from the official were later deleted.The drive to tackle rising materials prices comes after China’s V-shaped demand rebound last year helped ignite a global commodities rally. Stimulus support for metal-intensive sectors is showing signs of cresting, however, and authorities are now starting to worry about imported inflation.That Beijing is also dealing with a problem partly of its own making is most evident in steel, where prices spiked to records after the government set targets on output curbs and ordered production to fall this year. Instead, output surged to record levels in April.“Another week, another Chinese government announcement trying to soothe the self-inflicted wounds caused by regular statements on steel capacity reforms, which fueled steel prices and margins,” said Atilla Widnell, managing director at Navigate Commodities.Chinese steel rebar futures closed 2.7% lower. Hot-rolled coil fell 3.2% and iron ore dropped 3%, after earlier being down more than 7%. Base metals were mostly lower, with aluminum dropping 1.4% to $2,336 a ton as of 1:30 p.m. on the London Metal Exchange.Copper traded little changed at $9,886 a ton, after losing as much as 0.9% earlier. Prices slid 3.5% last week, the most since September.More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. U.S. Bloomberg 210524 06h40m NYC to End Remote-School Option for Students in September (Bloomberg) -- New York City Mayor Bill de Blasio said all public school students will return to their school buildings come September and that a remote option will no longer be available.Reopening the largest school system in the U.S. for the roughly one million students represents a big move toward the city’s full reopening and will be crucial to the economic recovery of New York, which has been battered by the pandemic.“You can’t have a full recovery without full strength schools,” de Blasio said on an appearance Monday on MSNBC. “More and more kids will be vaccinated, we’ve made vaccination available everywhere. It’s really time to go full strength right now.”New York joins neighboring New Jersey in eliminating a virtual option for students in the fall, among the first in the nation to pledge to bring back all students to in-person schooling. The move will be a step toward easing some of the inequities compounded by the pandemic as students of color and low-income students have struggled disproportionately. Over $100 billion of of stimulus aid from the American Rescue Plan act, in addition to aid from prior relief bills, is headed to school districts across the country to help cover the cost of reopening and addressing those differences.De Blasio had long expressed his hope that kids would return in the fall, but it was unclear whether a remote option would be offered. As the end of the school year approaches, most of the city’s students remain at home. About 600,000 students opted to remain in remote learning due to health and other concerns despite having the option to return to schools. The city began allowing in-person learning for elementary schools last December, middle schools in February and high schools in March.After new distancing guidance in March from the Centers for Disease Control and Prevention allowed the school system to open classrooms for more students, nearly two thirds of kids again chose to stay home.De Blasio said city schools would welcome parents to come into the schools starting in June to view safety protocols and get them re-acclimated. “Anyone who has a question or concern, come into your child’s school, see what’s going on, get some answers,” he said.He will also have to win over the city’s teachers, thousands of whom remain home due to safety concerns.Michael Mulgrew, the president of the largest New York City teachers union, has said he supports getting as many students back in school this fall but that a remote option should remain.“There are three immediate steps Mayor de Blasio and Schools Chancellor Meisha Porter should undertake,” Mulgrew wrote in a New York Daily News editorial last week. “Insist that every school schedule parent open houses before the school year ends; adopt and publicize programs to guarantee academic and emotional/psychological intervention in every school; and create a small but efficient remote alternative for parents who still feel they need it.”He said keeping a remote option “for a limited number of parents will be important for maintaining the public schools as the key education resource for all families.”Mulgrew did not immediately respond to a request for comment on Monday.City officials have maintained that health and safety protocols have kept Covid-19 rates relatively low at schools, despite frequent closures throughout the year prompted by student cases. With nearly half of New York City vaccinated, the city’s hospitalization rate has dropped precipitously to below 1 per 100,000 residents.De Blasio said Monday that by Sept. 13, he expects more kids will be vaccinated and Covid rates will continue their steady decline. Kids ages 12 and up are now eligible for the vaccine. De Blasio said the CDC may drop their guidance to keep kids three feet apart, but that “we could make that work if we have to.”Jasmine Gripper, executive director of the Alliance for Quality Education, a coalition of parent groups, said she was surprised about the mayor’s move on Monday and that she was concerned about returning to large classes.“I think there’s a hesitancy about bringing children back if there are overcrowded classrooms,” Gripper said. “It’s not just the CDC it’s parents concerns about overcrowding. There’s a hesitancy about putting 35 people in a room together, whether six feet apart or three feet apart.”(Updates with more details throughout.)More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. Business Reuters 210524 06h37m Wells Fargo names Ulrike Guigui as head of payments strategy Guigui was most recently managing director and head of payments practice at audit firm Deloitte, Wells Fargo said. The incoming payments strategy chief has previously held positions at Citigroup Inc, where she worked for about ten years, according to her LinkedIn profile. Guigui also worked at Mastercard and GE Capital, the financial services unit of U.S. conglomerate General Electric Co. She will report to Ather Williams III, Wells Fargo's head of strategy, digital and innovation, the statement from the bank said. World Reuters 210524 06h30m UPDATE 1-Russia raises concerns over U.S. implementation of arms control treaty Russia's foreign ministry on Monday raised concerns over Washington's implementation of the New START nuclear arms control treaty and said the number of U.S. launchers and bombers exceeded the agreed limit. Russia and Washington extended the New START treaty in February. It is a cornerstone of global arms control and limits the numbers of strategic nuclear warheads, missiles and bombers that Russia and the United States can deploy. Business Bloomberg 210524 06h28m U.S. Futures Gain; China’s Stance Weighs on Metals: Markets Wrap (Bloomberg) -- U.S. equity-index futures advanced as investors wagered that the Federal Reserve will maintain monetary support in coming months while a rebound in the world’s biggest economy stokes inflation fears.Contracts on the S&P 500 and Nasdaq 100 gauges pointed to gains after U.S. stocks closed mixed on Friday. The dollar was steady and Treasuries edged higher. Bitcoin advanced above $35,000 following another weekend of big swings. The Stoxx Europe 600 fluctuated before turning lower amid low volumes, with German, Danish, Norwegian and Swiss markets closed for holidays.China’s crackdown on commodities speculation weighed on raw-material prices, with steel dropping as much as 6% and iron ore tumbling by close to the daily limit. Bloomberg’s industrial metals subindex declined for a fourth day to a one-month low.Implied volatility for major global indexes remains subdued, suggesting investors aren’t pricing in a surprise from the Fed in the next six months. While market-based gauges of inflation expectations have declined recently, concerns linger that the post-pandemic recovery could stoke price pressures, and some countries also face Covid-19 spikes. Robust corporate earnings, especially in Europe, are underpinning stock prices.“It’s going to be a very mixed market over the next several months until we get more information on what’s really going to happen with inflation and how the stimulus in the U.S. affects spending there, but also how the coronavirus really progresses,” JoAnne Feeney, a partner at Advisors Capital Management LLC, said in a Bloomberg TV interview.WTI crude climbed above $64 a barrel, though it pared some of the advance after Iran agreed to extend a key nuclear-monitoring pact with United Nations inspectors, setting the Persian Gulf country up to revive an agreement that could enable it to resume oil exports.Here are some events this week week:Consensus by CoinDesk brings prominent crypto voices together to discuss NFTs, exchanges and the role of central banks. Fed Governor Lael Brainard and Bridgewater founder Ray Dalio will participate. Through May 27.Bank of Indonesia rate decision Tuesday, Reserve Bank of New Zealand policy decision Wednesday, Bank of Korea rate decision Thursday.CEOs of the largest U.S. banks, including JPMorgan and Goldman Sachs, will testify before lawmakers in the Senate Banking and House Financial Services committees Wednesday.U.S. initial jobless claims, GDP, durable goods, pending home sales, Thursday.These are some of the main moves in markets:StocksFutures on the S&P 500 rose 0.5% as of 8:25 a.m. New York timeFutures on the Nasdaq 100 rose 0.8%Futures on the Dow Jones Industrial Average rose 0.3%The Stoxx Europe 600 fell 0.1%The MSCI World index was little changedCurrenciesThe Bloomberg Dollar Spot Index was flatThe euro rose 0.2% to $1.2210The British pound was little changed at $1.4136The Japanese yen was little changed at 108.90 per dollarBondsThe yield on 10-year Treasuries declined one basis point to 1.61%Germany’s 10-year yield was little changed at -0.14%Britain’s 10-year yield declined two basis points to 0.81%CommoditiesWest Texas Intermediate crude rose 1.2% to $64 a barrelGold futures rose 0.3% to $1,885 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. Howell date : 210523 21h08m39s Business Reuters 210523 20h48m Singapore court approves move to freeze Hin Leong's founder's assets - liquidators Singapore's Court has accepted a request to freeze up to $3.5 billion of worldwide assets of Lim Oon Kuin and his two children following the collapse of Lim's oil trading firm Hin Leong Trading Pte Ltd, the company's liquidators told creditors in an email seen by Reuters. Court-appointed liquidators of Hin Leong, the Lim family and their lawyers, and the Singapore High Court did not immediately respond to requests for comment on Monday. World Bloomberg 210523 20h40m Oil Climbs Above $64 as Investors Track Virus Fight, Iran Talks (Bloomberg) -- Oil advanced above $64 a barrel as more signs the U.S. economy is rapidly bouncing back from the pandemic outweighed concern a revival of the Iranian nuclear deal will lead to an increase in global supply.West Texas Intermediate was 0.9% higher, after rising 2.5% on Friday. The spread of coronavirus in the U.S. has slowed further, with the country ending its first week since June with no days of infections exceeding 30,000. Death rates continue to ebb in France and Italy, boding well for energy consumption.Talks between Iran and world powers will continue in Vienna this week to try and resolve the sides’ remaining differences over the nuclear pact. As part of that process, Iran is likely to extend a U.N. nuclear inspections agreement, buying diplomats time to revive the landmark deal that would usher in an official return of the Persian Gulf nation to world oil markets.Crude has rallied this year as investors wager the roll-out of vaccines will turn the tide against the outbreak in key economies. Still, that climb has lost some momentum since March as fresh waves of infection roiled Asian economies. At the same time the Iranian talks are making headway, the Organization of Petroleum Exporting Countries and its allies are loosening joint output curbs.“There’s a lot of vaccine-driven demand optimism in the U.S. and Europe that’s likely to be further boosted by the summer driving season next month,” said Kim Kwangrae, senior commodities analyst at Samsung Futures Inc. The market also continues to keep an eye on how many Iranian barrels will flow, he said.Goldman Sachs Group Inc. said the case for higher prices “remains intact,” forecasting Brent was still set to hit $80 this year even if Iranian supplies are restored. The recovery in developed markets’ demand was helping offset weaker South Asian and Latin American consumption, it said in note.Brent’s prompt timespread was 7 cents a barrel in backwardation, a bullish pattern in which near-term prices are above those further out. The spread dropped to 4 cents last Thursday, when Iran’s President Hassan Rouhani said world powers had accepted that major sanctions on his country will be lifted.While there are signs the virus is strengthening its grip in parts of Asia, with Malaysia announcing fresh curbs on movement at the weekend, macro-economic signals in developed economies remain positive. In the U.S., a measure of output at manufacturers and service providers hit a record in May.A meeting of the OPEC+ Joint Technical Committee, which was to have taken place on May 25, to assess the state of global supply and demand has been shifted to May 31, according to a person familiar with the matter. The alliance’s next planned ministerial meeting will still take place on June 1.More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. Business Bloomberg 210523 20h28m Cross-Asset Strategy Chief Signs Off With Correction Warning (Bloomberg) -- John Normand shared one last round of advice before signing off.JPMorgan Chase & Co.’s head of cross-asset fundamental strategy said in a note Friday that it was his last because he’s “moving on,” though he didn’t specify where he was going.He sees a “moderate” chance of a 10% drop in the MSCI’s all-country index in the Northern Hemisphere summer, which he said is better pre-empted via a range of trades that benefit from a hawkish Federal Reserve -- such as long U.S. dollar, short gold and long value versus growth -- than by reducing equity exposure overall.“If the catalyst will be a hawkish Fed due to rising inflation in the context of still-strong growth, the better risk-reward would be sell Fed-sensitive assets (bonds, gold, non-USD currencies, growth stocks) rather than to sell cyclically-sensitive ones (equities overall),” he wrote.Normand said the market is in a “mostly young” phase, though he expects returns to be below average for the rest of the year. He considers the expansion new because Fed policy is ultra-loose, output gaps are generally negative rather than positive, and profit margins are above rather than below average. But he also cautioned that equity, fixed income and currency markets have never been so broadly expensive this early in an expansion.“If I had to avoid any of the very expensive markets now it would be cryptocurrencies, because it entails two characteristics other rich markets lack: a penchant for high investor leverage, and a questionable investment these about the utility and efficiency of private money compared to legal tender,” Normand said.Normand didn’t respond to requests for comment sent outside of regular work hours. A JPMorgan spokeswoman declined to comment.“I am grateful to dozens of JPM Research colleagues for their collaboration and to a few for their mentoring; and to clients, for their readership and engagement though good and bad calls,” Normand said.(Updates with JPMorgan declining to comment in second to last 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. Business Business Business Reuters 210523 19h08m Crypto miners halt China business after Beijing cracks down, bitcoin dives SHANGHAI (Reuters) -Cryptocurrency mining operators, including a Huobi Mall and BTC.TOP, are suspending their China operations after Beijing stepped up its efforts to crack down on bitcoin mining and trading, sending the digital currency tumbling. A State Council committee led by Vice Premier Liu He announced the crackdown late on Friday - the first time the council has targeted virtual currency mining, a big business in China that accounts for as much as 70% of the world's crypto supply. Crypto miners use increasingly powerful, specially-designed computer equipment, or rigs, to verify virtual coin transactions in a process which produces newly minted crypto currencies such as bitcoin. Business Reuters 210523 19h08m Dollar near 3-month low, weighed by prospects of dovish Fed The dollar stood near its lowest level in three months against a resurgent euro, struggling for traction as investors pared earlier bets the U.S. Federal Reserve may soon be ready to taper its stimulus. Minutes from the Fed's April policy meeting released last week showed a sizable minority of policymakers wanted to discuss tapering bond purchase. Still, Fed Chairman Jerome Powell's repeated warnings that it is not yet time to discuss a reduction in quantitative monetary easing has led many investors to believe it will be months before the central bank actually tweaks policy. Howell date : 210523 19h08m03s World Reuters 210523 18h40m PRESS DIGEST-British Business - May 24 The following are the top stories on the business pages of British newspapers. - Coronavirus restrictions in the UK are almost certain to be lifted next month with signs that the growth in the Indian variant may be levelling off, according to a health expert. - UK's Boris Johnson was forced into a "bodged" COVID plan because the government did not realise its initial strategy would cost hundreds of thousands of lives and lead to an economic disaster, Dominic Cummings has claimed. Business Bloomberg 210523 18h34m Stocks, U.S. Futures Steady; Cryptos Extend Swings: Markets Wrap (Bloomberg) -- Asian stocks and U.S. equity futures made a steady start early Monday as traders weighed the volatile slump in cryptocurrencies and the inflation outlook.Shares edged higher in Japan but fluctuated in Australia and South Korea. S&P 500 futures posted modest gains after U.S. stocks closed mixed Friday. Bitcoin advanced to about $35,500 following another weekend of big price swings.The stalling commodities boom remains in focus as China tries to temper prices. Market-based gauges of inflation expectations have declined of late, though concerns linger that the post-pandemic recovery could stoke price pressures and force a pullback in extraordinary central bank support.Global equities have lost some steam and speculative ardor for riskier investments like Bitcoin has declined after a prolonged rally from pandemic lows. While the economic recovery from the health crisis offers background support for sentiment, investors are wary that policy makers may eventually have to curb stimulus. Some countries also still face Covid-19 spikes.“It’s going to be a very mixed market over the next several months until we get more information on what’s really going to happen with inflation and how the stimulus in the U.S. affects spending there, but also how the coronavirus really progresses,” JoAnne Feeney, a partner at Advisors Capital Management LLC, said in a Bloomberg TV interview.Oil traded above $63 a barrel amid further signs the U.S. is recovering from the pandemic. Traders also monitored progress in talks to revive an Iranian nuclear deal that could lead to increased global crude supply.Here are some events this week week:Consensus by CoinDesk brings prominent crypto voices together to discuss NFTs, exchanges and the role of central banks. Fed Governor Lael Brainard and Bridgewater founder Ray Dalio will participate. Through May 27.Bank of Indonesia rate decision Tuesday, Reserve Bank of New Zealand policy decision Wednesday, Bank of Korea rate decision Thursday.CEOs of the largest U.S. banks, including JPMorgan and Goldman Sachs, will testify before lawmakers in the Senate Banking and House Financial Services committees Wednesday.U.S. initial jobless claims, GDP, durable goods, pending home sales, Thursday.These are some of the main moves in markets:StocksS&P 500 futures added 0.2% as of 9:30 a.m. in Tokyo. The index dipped less than 0.1% Friday.Nasdaq 100 contracts were flat. The gauge fell 0.6% on Friday.Japan’s Topix index rose 0.8%.Australia’s S&P/ASX 200 Index was flat.South Korea’s Kospi index fell 0.3%.CurrenciesThe Japanese yen was at 108.95 per dollar.The offshore yuan traded at 6.4360 per dollar.The Bloomberg Dollar Spot Index was steady.The euro was at $1.2183.BondsThe yield on 10-year Treasuries was little changed at 1.62%.Australia’s 10-year bond yield fell more than two basis points to 1.71%.CommoditiesWest Texas Intermediate crude rose 0.5% to $63.90 a barrel.Gold was at $1,882.53 an ounce.More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. Business Reuters 210523 18h30m Asia shares cautious ahead of U.S. inflation test, Bitcoin slides Asian shares got off to a cautious start on Monday as investors anxiously awaited a key read on U.S. inflation this week for guidance on monetary policy, while Bitcoin took a hammering after China cracked down on mining and trading of the cryptocurrency. MSCI's broadest index of Asia-Pacific shares outside Japan was barely changed in slow trade. Japan's Nikkei added 0.1% and South Korea was flat. Business Reuters 210523 18h22m GLOBAL MARKETS-Asia shares cautious ahead of U.S. inflation test, Bitcoin slides Asian shares got off to a cautious start on Monday as investors anxiously awaited a key read on U.S. inflation this week for guidance on monetary policy, while Bitcoin took a hammering after China cracked down on mining and trading of the cryptocurrency. MSCI's broadest index of Asia-Pacific shares outside Japan was barely changed in slow trade. Japan's Nikkei added 0.1% and South Korea was flat. World Reuters 210523 18h11m 'A lot to lose': SoftBank's CEO speaks out against Games In a series of tweets, SoftBank Group Corp's founder and CEO Masayoshi Son expressed bewilderment and concern about the Tokyo Olympics going ahead amid Japan's slow-going vaccination drive during the COVID-19 pandemic. "There's talk about a huge penalty (if the Games are cancelled) but if 100,000 people from 200 countries descend on vaccine-laggard Japan and the mutant variant spreads, I think we could lose a lot more: lives, the burden of subsidies if a state of emergency is called, a fall in gross domestic product, and the public's patience." Son's tweets followed comments on Friday https://www.reuters.com/article/olympics-2020-idCNL2N2N80BL from International Olympic Committee (IOC) Vice President John Coates that the Olympics would "absolutely" go ahead even if Tokyo was under a state of emergency. World Business Bloomberg 210523 17h08m Ex-Blackstone India Head Hunts for Next Star in Hot IPO Market (Bloomberg) -- Mathew Cyriac is looking to take at least two companies public in India in the coming years after MTAR Technologies Pvt.’s debut success.MTAR Technologies, a precision engineering firm that Cyriac bought from Blackstone Group Inc. in 2017 when he left the private equity firm, has seen shares risen more than 60% since its March debut. The listing is part of India’s red-hot initial public offerings market where companies have raised about $4 billion since the start of the year, on track for the busiest first-half since 2017, according to data compiled by Bloomberg. UBS Group AG expects a record year for first-time share sales in the country despite the coronavirus pandemic.Cyriac joined Blackstone as its second employee in India in 2006 and eventually became the firm’s co-head in the country. He now runs his own firm Florintree Advisors and remains optimistic about the IPO market.“There will be significant interest in new business models in fintech, digital companies and analytics-based IT services,” Cyriac, 51, said in an interview. “We expect to take at least two of our companies public in a few years.”Florintree has five portfolio companies, mainly in the engineering and fintech sectors, he said. The firm has recently bought a minority stake in Mobikwik, an Indian digital payments platform, as well as drugmaker Wanbury Ltd.The Mumbai-based investment firm has invested less than $100 million in the past three years and the MTAR’s IPO brought in 3.5 billion rupees ($48 million) of proceeds that could strengthen its war chest. It also secured a commitment from a family office for about 4 billion rupees and another 7 billion rupees from some local investors.Cyriac plans to expand the investment portfolio to 10 companies and has been in discussions with a gold loan mortgagor and a heavy engineering company that’s going through debt restructuring, he said.“We will be looking for fallen angels, buy them and restore to their old glory,” he added.More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. Howell date : 210523 13h04m26s World Bloomberg 210523 12h53m U.S. Outbreak Slows as Concern Rises Over Variant: Virus Update (Bloomberg) -- The spread of coronavirus in the U.S. continues to slow, with the country ending its first week since June with no days of infections exceeding 30,000, according to data compiled by Johns Hopkins University and Bloomberg.The U.S. Centers for Disease Control and Prevention warned that under-vaccinated areas in the U.S. could become hot spots for a mutation of the coronavirus first detected in India and is increasing surveillance of the more-transmissible variant. The U.K. government pushed back on claims from the former chief aide of Prime Minister Boris Johnson that officials pursued a herd-immunity strategy in the early days of the Covid-19 pandemic.Key Developments:Global Tracker: Cases pass 166.8 million; deaths exceed 3.4 millionVaccine Tracker: More than 1.63 billion doses have been givenData revisions leave Taiwan unsure where outbreak is headingWhat’s the best Covid vaccine? Why it’s not so simple: QuickTakeGlaxoSmithKline will make sure it’s on the front lines of the next pandemicVaccine tourists urged to read fine print on trips overseasCalifornia Deaths Decline (2:48 p.m. NY)California’s deaths dropped to 33 from 50 the day before. Cases rose to 1,308 from 1,186, a rate of 2.8 new cases per 100,000. California has administered more than 36 million vaccines in total. The state is preparing for its reopening on June 15, when it’s easing mask requirements and lifting capacity limits for most venues.France Deaths Lowest Since Fall (1:36 p.m. NY)France reported the lowest daily increases in coronavirus-related deaths since October, in a sign that the pandemic’s grip on the country is loosening. The 70 additional fatalities registered over the past 24 hours bring the official toll to 108,596. France reported 9,704 new cases, about a third less than the seven-day average.Gottlieb Says Covid Profile Changing (12:22 p.m. NY)Falling hospitalizations from Covid-19 show a “rapidly-declining vulnerability” in the U.S., as the people getting infected -- sharply falling, but still averaging over 25,000 a day in the past week -- tend to be younger and less vulnerable to complications, said former FDA commissioner Scott Gottlieb.Gottlieb said on CBS that many in the U.S. are gradually recalibrating their approach to masks, social distancing and other measures as cases and deaths fall sharply.“We need to make a judgment about what our comfort is. A lot of people have spent a year wearing masks and taking precautions, so it will take some time for us to get comfortable again going into settings without those precautions,” he said.Texas Governor Hails Early End to Masking (12:05 p.m. NY)Texas Governor Greg Abbott said his decision to remove mask mandates and to allow businesses to open at full capacity as early as March was the “right move.”“Of course, President Biden and the Democrats railed against it,” he said Sunday on Fox News. “Democrats said that I had issued a death warrant.”New cases and deaths have been declining in Texas since March. Last week, the state reported zero virus-related deaths for the first time in more than a year. About 43% of the population in Texas has received at least one dose of vaccine, behind the U.S. average of almost 49%, according to Bloomberg Vaccine Tracker.Italy Reports Fewest Deaths This Year (11:58 a.m. NY)Italy on Sunday reported the lowest number of daily coronavirus-related deaths this year, according to Ansa. There were 3,995 new virus cases compared with 4,717 a day before and 72 deaths compared with 125 on Saturday.N.Y. Positive Test Rate Dips (11:48 a.m. NY)New York state’s single-day positive test rate dropped to .77%, the lowest since late August, Governor Andrew Cuomo said in a statement. The state’s positive tests are among the lowest in the U.S., with a seven-day average of .92%.Cuomo reported 1,073 new infections, in line with the dropping caseload, and 12 deaths. Hospitalizations continue to fall.U.S. Outbreak Continues to Weaken (8:16 a.m. NY)The U.S. reported just over 18,700 new cases Saturday, capping the first week since June with no days of infections exceeding 30,000, according to data compiled by Johns Hopkins University and Bloomberg. Average daily infections dropped to about 25,600, compared with almost 217,500 at the end of the first week that vaccines were rolled out in the U.S. in mid-December.A further 481 fatalities were recorded, capping a week with the fewest fatalities since the end of March 2020.Norway Earmarks Priority Shots (8:06 a.m. NY)Norway has decided to set aside 500 vaccine doses for persons in socially critical functions, the government said in a statement Saturday. Members of parliament, government and the health directorate are among those who will be prioritized.U.K. Denies Cummings Claims (7:05 a.m. NY)The U.K. government pushed back on claims from the former chief aide of Prime Minister Boris Johnson that officials pursued a herd-immunity strategy in the early days of the pandemic. Dominic Cummings unleashed a series of tweets on Saturday criticizing the U.K.’s response.He said that letting enough citizens become infected in order to reach natural herd immunity was the “official plan in all docs/graphs/meetings” until early March 2020, when it became clear that such a policy would lead to catastrophe.When asked about the allegations in an interview on the BBC on Sunday, Home Secretary Priti Patel said that was “not at all” the plan. Jenny Harries, chief executive of the U.K. Health Security Agency, also said it wasn’t the nation’s strategy.Germany Vows Summer Easing (5:51 p.m. HK)Germany’s health minister, Jens Spahn, has promised a wide-ranging easing of pandemic restrictions during the summer if the country’s seven-day incidence rate falls below 20. “Last summer the rate was below 20. We should aim for that again,” Spahn told the Sunday edition of Bild. According to the Robert Koch Institute, Germany has a seven-seven-day incidence rate of 64.5. That means that there are 64.5 new infections per 100,000 individuals over a period of seven days.CDC on Variant Watch (5:01 p.m. HK)Federal health officials are ramping up their surveillance of the highly transmissible Covid-19 variant first identified in India, as experts warn that under-vaccinated areas in the U.S. could become hot spots for the mutation.While U.S. cases attributed to the B.1.617 variant currently sit below 1%, the growth rate remains unclear due to the small sample size. One science group said the strain could be as much as 50% more transmissible than B.1.1.7, the variant that emerged from the U.K. That mutation was first seen in the U.S. in late December, and is now dominant nationally.India Cases Lowest in More Than a Month (2:38 p.m. HK)India’s new coronavirus cases continued to slow with a daily total of 240,842 on Sunday, the lowest in more than a month. Meanwhile, India’s capital extended its lockdown until May 31 as it halted vaccinations of people age 18 to 44 due to a shortage of jabs. India and scores of other World Trade Organization members made a fresh appeal for a three-year patent waiver on products and technology used in the treatment of Covid-19, the Economic Times reported.CDC Probes Cases of Youth Heart Inflammation (7:17 a.m. HK)The U.S. Centers for Disease Control and Prevention is investigating “relatively few” reports of a heart problem in adolescents and young adults after a Covid-19 vaccination.A report from a meeting of the agency’s safety group on May 17 said that most discovered cases of myocarditis “appear to be mild” and could be unrelated to vaccinations. Myocarditis is an inflammation of the heart muscle often found after an infection.The cases were mostly in adolescents and young adults and more often in males than females. The report added that the cases occurred more often after a second dose than the first and were typically found within four days after infection.More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. World Reuters 210523 12h07m Lithuania calls for joint EU action to keep planes out of Belarus airspace Lithuania on Sunday called for European Union countries to jointly recommend that planes avoid Belarusian airspace, after a Ryanair flight was forced to land in Minsk and an opposition activist on board detained. The proposal for a joint declaration will be put forward at a meeting of European leaders on Monday and will include a call to recognize the incident as a violation of International Civil Aviation Organisation rules, the foreign ministry said. Lithuania has also asked its EU allies to summon Belarusian ambassadors and to protest against the use of military aircraft to divert planes. Business World World World Howell date : 210523 10h10m16s World Reuters 210523 09h15m UPDATE 1-Italy reports 72 coronavirus deaths on Sunday, 3,995 new cases Italy reported 72 coronavirus-related deaths on Sunday, down from 125 the day before, the health ministry said, while the daily tally of new infections fell to 3,995 from 4,717. The country has registered 125,225 deaths linked to COVID-19 since its outbreak began in February last year, the second-highest toll in Europe after Britain and the seventh-highest in the world. Italy has reported 4.19 million cases to date. World Business Bloomberg 210523 08h10m Bitcoin Volatility Puts Weekend Traders on Stomach-Churning Ride (Bloomberg) -- Bitcoin’s extreme volatility carried into the weekend as the world’s largest cryptocurrency continued to whipsaw investors with double-digit percentage moves.The digital token slumped as much as 13% Sunday, and traded 12.3% lower at $33,178 as of 10:19 a.m. in New York, holding below its 200-day moving average. A day earlier, Bitcoin had climbed more than 8% to move back above $38,000 following a tweet from Elon Musk.A measure of implied volatility on Bitcoin comparable to the U.S. equity market’s VIX indicator sits above 130, higher than the stock version has ever gotten in 30 years. Thirty-day historical volatility in the coin is about 100, some seven times more than the S&P 500 and surpassing the comparable measure in lumber futures, and an ETF designed to pay twice the daily return in crude oil.Investors in Bitcoin are experiencing one of its rockiest weeks ever after a string of negative headlines, with prices swinging as much as 30% in each direction Wednesday alone, when it fell as low as $30,016, the least since January. Even with the gyrations, Bitcoin is still up more than 250% in the past year.The turbulent stretch began after Musk said Tesla would no longer accept Bitcoin as payment for its electric vehicles, citing the coin’s intensive energy use. Another blow came Friday when China reiterated a warning that it intends to crack down on cryptocurrency mining as part of an effort to control financial risks.“Bitcoin has two problems, ESG and decreasing reliance on China, both of which could take some time” Edward Moya, senior market analyst with Oanda Corp., wrote in a note.Other cryptocurrencies also slumped on Sunday, with Ethereum briefly trading below $1,900 and satirical token Dogecoin dropping more than 16%, according to Coinmarketcap.com.Read more: Musk Tweets He Supports Crypto in Battle Against Fiat CurrenciesThe latest warning from Beijing followed a statement earlier in the week disseminated by the People’s Bank of China that financial institutions weren’t allowed to accept cryptocurrencies for payment.China has long expressed displeasure with the anonymity provided by Bitcoin and other crypto tokens. The country is home to a large concentration of the world’s crypto miners who use vast sums of computing power to verify transactions on the blockchain.“It is no surprise that governments are not inclined to give up their monetary monopolies. Throughout history, governments first regulate and then take ownership,” Deutsche Bank macro strategist Marion Laboure wrote in a May 20 report titled “Bitcoin: Trendy Is the Last Stage Before Tacky.” “As cryptocurrencies begin to seriously compete with regular currencies and fiat currencies, regulators and policymakers will crack down.”‘Higher Stakes’A mid-week report from blockchain analysis firm Chainalysis showed over half of the $410 billion spent on acquiring current Bitcoin holdings occurred in the past 12 months. About $110 billion of that was spent on buying it at an average cost of less than $36,000 per coin. That means the vast majority of investments aren’t making a profit unless the coin trades at $36,000 or higher.“The stakes are much higher now than they were in the past,” Philip Gradwell, chief economist at Chainalysis, said in an email. “This week’s price fall means that a lot of investments are now held at a loss. This is going to be a serious test for recent investors, but so much is at stake now that there is the incentive and resources to address the problems in crypto that prevent it from becoming a mature asset.”Weekends tend to be particularly volatile for crypto assets which -- unlike most traditional assets -- trade around the clock every day of the week. Before this weekend, Bitcoin’s average swing on Saturdays and Sundays this year comes in at 5.14%.That type of volatility is owing to a few factors: Bitcoin’s held by relatively few people, meaning that price swings can be magnified during low-volume periods. And the market remains hugely fragmented with dozens of platforms operating under different standards. That means cryptocurrencies lack a centralized market structure akin to that of traditional assets.“When noise is accompanied by a huge amount of speculation and the noise can be interpreted negatively, you get these huge swings,” said Eric Green, chief investment officer of equity at Penn Capital. “What goes straight up is going to come down at some point.”More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. World Reuters 210523 08h10m INSIGHT-Israel's Gaza challenge: stopping metal tubes turning into rockets The Israel-Hamas conflict that ended with a ceasefire on Friday showed the Palestinian group's ability to build an arsenal of home-made rockets largely with civilian materials and Iranian expertise, analysts and officials said, a feat it can likely replicate. The low cost of such arms and the need to rebuild Gaza leaves Israel and the international community with a quandary of how to meet Gazans' basic needs yet keep ordinary items such as pipes, sugar and concrete from being put to military uses. Current and former officials see no easy answers, saying it is all but impossible to seal off even a relatively small area such as Gaza and to prevent goods for reconstruction from being turned into locally-made rockets. Business Reuters 210523 08h10m Bitcoin falls 10% to $33,747, ether down 14% Bitcoin, the world's biggest and best-known cryptocurrency, is down 48% from the year's high of $64,895.22 on April 14. Bitcoin markets operate 24/7, setting the stage for price swings at unpredictable hours. "Many point to Bitcoin’s volatility as untenable," wrote RBC Capital Markets' Amy Wu Silverman in a research note published on Saturday. World Bloomberg 210523 08h10m U.S. Outbreak Slows as Concern Rises Over Variant: Virus Update (Bloomberg) -- The spread of coronavirus in the U.S. continues to slow, with the country ending its first week since June with no days of infections exceeding 30,000, according to data compiled by Johns Hopkins University and Bloomberg.The U.K. government has pushed back on claims from the former chief aide of Prime Minister Boris Johnson that officials pursued a herd-immunity strategy in the early days of the Covid-19 pandemic.The Centers for Disease Control and Prevention warned that under-vaccinated areas in the U.S. could become hotspots for a mutation of the coronavirus first detected in India and are increasing surveillance of the highly transmissible variant. Meanwhile, vaccines from Pfizer Inc. and AstraZeneca Plc have been shown to work against this strain, according to a study by Public Health England.Key Developments:Global Tracker: Cases pass 166.4 million; deaths exceed 3.4 millionVaccine Tracker: More than 1.63 billion doses have been givenData revisions leave Taiwan unsure where outbreak is headingWhat’s the Best Covid Vaccine? Why It’s Not So Simple: QuickTakeGlaxoSmithKline will make sure it’s on the front lines of the next pandemicVaccine tourists urged to read fine print on trips overseasU.S. Outbreak Continues to Weaken (8:16 a.m. NY)The U.S. reported just over 18,700 new cases Saturday, capping the first week since June with no days of infections exceeding 30,000, according to data compiled by Johns Hopkins University and Bloomberg. Average daily infections dropped to about 25,600, compared with almost 217,500 at the end of the first week that vaccines were rolled out in the U.S. in mid-December.A further 481 fatalities were recorded, capping a week with the fewest fatalities since the end of March 2020.Norway Earmarks 500 Priority Shots (8:06 a.m. NY)Norway has decided to set aside 500 vaccine doses for persons in socially critical functions, the government said in a statement Saturday. Members of parliament, government and the health directorate are among those who will be prioritized.U.K. Denies Cummings Claims (7:05 a.m. NY)The U.K. government pushed back on claims from the former chief aide of Prime Minister Boris Johnson that officials pursued a herd-immunity strategy in the early days of the pandemic. Dominic Cummings unleashed a series of tweets on Saturday criticizing the U.K.’s response.He said that letting enough citizens become infected in order to reach natural herd immunity was the “official plan in all docs/graphs/meetings” until early March 2020, when it became clear that such a policy would lead to catastrophe.When asked about the allegations in an interview on the BBC on Sunday, Home Secretary Priti Patel said that was “not at all” the plan. Jenny Harries, chief executive of the U.K. Health Security Agency, also said it wasn’t the nation’s strategy.Germany Eyes Restrictions Easing (5:51 p.m. HK)Germany’s health minister, Jens Spahn, has promised a wide-ranging easing of pandemic restrictions during the summer if the country’s seven-day incidence rate falls below 20. “Last summer the rate was below 20. We should aim for that again,” Spahn told the Sunday edition of Bild. According to the Robert Koch Institute, Germany has a seven-seven-day incidence rate of 64.5. That means that there are 64.5 new infections per 100,000 individuals over a period of seven days.CDC on Variant Watch (5:01 p.m. HK)Federal Health officials are ramping up their surveillance of the highly transmissible Covid-19 variant first identified in India, as experts warn that under-vaccinated areas in the U.S. could become hotspots for the mutation.While U.S. cases attributed to the B.1.617 variant currently sit below 1%, the growth rate remains unclear due to the small sample size. One science group said the strain could be as much as 50% more transmissible than B.1.1.7, the variant that emerged from the U.K. That mutation was first seen in the U.S. in late December, and is now dominant nationally.Philippines Probes Online Vaccine Sales (4:14 p.m. HK)Authorities in the Philippines are investigating the alleged online sale of slots for Covid-19 vaccines in the cities of Mandaluyong and San Juan, the Philippine Star reported Sunday, citing a top police official. The country’s government is offering shots for free under its vaccine drive. Philippine National Police chief Guillermo Eleazar has directed the Criminal Investigation and Detection Group to identify and arrest those taking advantage of the pandemic to con victims.India New Cases Lowest in More Than a Month (2:38 p.m. HK)India’s new coronavirus cases continued to slow with a daily total of 240,842 on Sunday, the lowest in more than a month. Meanwhile, India’s capital extended its lockdown until May 31 as it halted vaccinations of people age 18 to 44 due to a shortage of jabs. India and scores of other World Trade Organization members made a fresh appeal for a three-year patent waiver on products and technology used in the treatment of Covid-19, the Economic Times reported.Thailand Detects Cases of South Africa Variant (2:31 p.m. HK)Thailand discovered its first case of the variant first reported in South Africa, two days after the country detected another variant originally seen in India. The latest variant was detected in three infections from a cluster of 83 cases in southern Thailand, Opas Karnkawinpong, director-general of the Department of Disease Control, said on Sunday, adding that authorities have restricted access to the district.The country reported 3,382 new cases and 17 fatalities for the day, taking the country’s total case count to 129,5000 with 776 deaths.Enough Pfizer Doses for All Australians by End-2021 (11:15 a.m. HK)Australia’s government is promising enough Pfizer Inc. vaccines to have all Australians vaccinated by the end of 2021, the Sun-Herald newspaper reported. Two million Pfizer doses are expected to be available in Australia each week from the beginning of October, which would mean all who are keen can get their two shots by the end of the year, the paper said, citing the Australian Medical Association.Health Minister Greg Hunt told the paper that 4.5 million Pfizer doses will arrive by the end of June, and there will be 7 million doses expected in both the third and fourth quarters.Samsung Biologics, Moderna Sign Deal: Yonhap (10:30 a.m. HK)South Korea’s Samsung Biologics signed a deal with Moderna on vaccine production, Yonhap News Agency reported. Under the agreement, Samsung Biologics will provide contract-manufacturing organization services to Moderna for its mRNA vaccine and some of the doses will be produced in South Korea.Samsung and Moderna will together supply “hundreds of millions” of doses intended for markets across the globe, starting in the third quarter of this year, Second Vice Health Minister Kang Dotae said in a briefing Sunday.Malaysia to Impose Curfew, Add Guidelines (9:30 a.m. HK)Malaysia will restrict business operations to 8 a.m until 8 p.m. beginning May 25 to stem a recent surge in Covid-19 cases, according to Defense Minister Ismail Sabri Yaakob. About 80% of government officials and 40% of private sector employees will work from home, with the move affecting 7 million to 8 million workers.Places deemed high risk will shut immediately and usage of public transportation will be limited to 50% capacity, Ismail said. The nation logged 6,320 new coronavirus cases on Saturday, a fourth straight day that infections have topped 6,000.Japan Sets July 4 Target for Vaccines: Yomiuri (9 a.m. HK)The Japanese government expects to finish delivering coronavirus vaccines for senior citizens to all municipalities by July 4, the Yomiuri newspaper reported.About 93% out of the nation’s 1,741 municipalities will be able to meet the government’s target to vaccinate people ages 65 and over by the end of July, the Yomiuri said.Singapore to Shut Two Malls (7:45 a.m. HK)Singapore will close two shopping malls on the western part of the island for two weeks starting Sunday after 10 recent cases were linked to the properties.“Our epidemiological investigations have found that there is likely ongoing transmission among individuals who visited these malls,” the health ministry said in a statement. “To break any potential chain of transmission and enable deep cleaning of the premises, JEM and Westgate shopping malls will be closed to all members of the public.”The ministry will also offer free Covid-19 tests to those who visited the malls from May 10 to May 14.Argentina to Get 1 Million Astra Doses (7:33 a.m. HK)Argentina will receive more than 1 million doses of the AstraZeneca vaccine, which will arrive in the country between Sunday and Monday, according to an emailed statement from President Alberto Fernandez’s press office.Of the doses, 204,000 are set to arrive Sunday morning via purchases through Covax, while 843,000 will arrive Monday from the U.S.Glaxo Gets Ready for Next Pandemic (7:25 a.m. HK)GlaxoSmithKline fell behind in the Covid-19 vaccine race, but now the drugmaker is working to make sure it’s on the front lines of the next pandemic.The British pharma giant is talking with the U.K. and other governments about building facilities to bring vaccine development and production onshore before the next crisis, said Roger Connor, its vaccines chief. The labs would offer a range of vaccine technologies to tackle deadly viruses of the future, he said in an interview.CDC Probes Cases of Youth Heart Inflammation (7:17 a.m. HK)The U.S. Centers for Disease Control and Prevention is investigating “relatively few” reports of a heart problem in adolescents and young adults after a Covid-19 vaccination.A report from a meeting of the agency’s safety group on May 17 said that most discovered cases of myocarditis “appear to be mild” and could be unrelated to vaccinations. Myocarditis is an inflammation of the heart muscle often found after an infection.The cases were mostly in adolescents and young adults and more often in males than females. The report added that the cases occurred more often after a second dose than the first and were typically found within four days after infection.Brazil Passes 16 Million Cases (6:37 a.m. HK)Brazil passed 16 million cases Saturday, at the end of week in which infections and deaths were rising, according to Health Ministry data.Cases rose for the fourth consecutive week, adding another 76,490 on Saturday, though the weekly caseload of 460,905 remains about 80,000 below a peak in March.Weekly deaths increased to 13,495, after falling for five straight weeks from a peak of 21,141. Brazil has a total 448,208 recorded deaths, the most after the U.S.More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. Howell date : 210521 19h29m30s Business Business Bloomberg 210521 17h29m Alden Declares Victory in Its Monthslong Pursuit of Tribune (Bloomberg) -- Alden Global Capital declared victory in its monthslong effort to acquire Tribune Publishing Co. following a shareholder vote on the hedge fund’s bid for daily newspapers in Chicago, New York and other major cities.“The purchase of Tribune reaffirms our commitment to the newspaper industry and our focus on getting publications to a place where they can operate sustainably over the long term,” Alden President Heath Freeman said in a statement Friday.Tribune said in a statement that 81% of shares held by non-Alden stockholders voted to approve the agreement, giving it more than the two-thirds required. Chairman Philip G. Franklin called the results “an important milestone in completing the transaction.”Newspapers have struggled to compete with online media and have seen advertising and subscribers shrink, leading to consolidation, job cuts and financial distress for publishers like Tribune. Alden, known for cutting costs in newsrooms, already owns the Boston Herald, Denver Post and San Jose Mercury News through its Digital First Media chain.The hedge fund holds a 31% stake in Tribune. It agreed in February to pay $17.25 a share, or almost $460 million, for the stock it didn’t already own.Tribune’s No. 2 shareholder, Los Angeles billionaire Patrick Soon-Shiong, abstained from voting his 24% stake.A spokeswoman for Soon-Shiong announced his decision Friday, saying the entrepreneur and his family always viewed Tribune as a passive investment and were more focused on their ownership of the Los Angeles Times and San Diego Union-Tribune. “They remain honored to be entrusted with these storied news organizations and continue working to secure their longevity,” the statement said.Silent ApprovalBut that abstention amounted to approval, according to the Chicago Tribune. Tribune Publishing officials said ballots registered to Soon-Shiong failed to check any box and were counted as a “yes” vote. They would have been counted as “no” votes if the abstain box had been checked. Tribune journalists fought the sale to Alden and tried to find alternative buyers for each of the company’s newspapers, including the namesake Chicago Tribune, the New York Daily News and other big-city publications.“While we are saddened by the turn of events, we know that our work over the past year -- to build allies in the community and to raise awareness about Alden -- is not in vain,” the journalists’ union said in a statement.In early April, Tribune agreed to talks with a rival investor group led by Stewart Bainum that was offering $18.50 a share. Tribune journalists supported Bainum’s bid, but the company ended their discussions after the group’s largest investor, Swiss billionaire Hansjoerg Wyss, dropped out.In a statement, Bainum said we was “deeply grateful to the journalists, readers, and civic-minded investors who teamed with us to help rescue, re-imagine and reinvigorate local journalism.”‘Better Model’“While our effort to acquire the Tribune and its local newspapers has fallen short, the journey reaffirmed my belief that a better model for local news is both possible and necessary,” Bainum said.He added that he’s “evaluating various options” to create “locally supported, not-for-profit newsrooms that place stakeholders above shareholders and journalistic integrity above all.”In February, when Tribune agreed to be acquired by Alden, Bainum was initially part of that purchase, with a side deal that allowed him to buy the Baltimore Sun and smaller newspapers in Maryland.But Bainum and Alden disagreed over how they would share services before the Maryland newspapers were fully independent of Tribune, and Bainum grew skeptical of Alden’s intentions in the deal, people familiar with the situation said in March. That led Bainum to pursue an acquisition of the whole company.Shares of Tribune were little changed at $17.19 in New York.(Adds Tribune’s comment 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. Business Reuters 210521 17h29m Exclusive-U.S. prepares to downgrade Mexico air safety rating, sources say WASHINGTON/MEXICO CITY (Reuters) -The U.S. government is preparing to downgrade Mexico's aviation safety rating, a move that would bar Mexican carriers from adding new U.S. flights and limit airlines' ability to carry out marketing agreements, four sources briefed on the matter said. The Federal Aviation Administration's (FAA) planned move is expected be announced in the coming days and follows a lengthy review of Mexico's aviation oversight by the agency. The sources added that Mexican government officials have been informed about the planned action and raised concerns. Politics Bloomberg 210521 17h29m Gap With White House on Infrastructure Is Widening, GOP Says (Bloomberg) -- Senate Republicans panned President Joe Biden’s trimmed-down $1.7 trillion infrastructure proposal on Friday, saying the revised offer suggested the two sides were even further apart than the lawmakers had thought they were.“There continue to be vast differences between the White House and Senate Republicans when it comes to the definition of infrastructure, the magnitude of proposed spending, and how to pay for it,” said Kelley Moore, a spokeswoman for West Virginia Senator Shelley Moore Capito, the lawmaker leading the GOP effort.Biden’s offer on Friday reduced the size of his infrastructure and jobs plan by about a quarter, but it’s still far higher than what Republicans have suggested they could support. White House Press Secretary Jen Psaki said it exemplified “the art of seeking common ground.”The proposal -- presented to Republican senators in an afternoon call -- was a response to a GOP counter-offer earlier this week, a modified version of their initial $568 billion pitch. While calling off the negotiations was discussed among the GOP members, most favored giving the talks another week, according to a person familiar with the Republicans’ view.“Based on today’s meeting, the groups seem further apart after two meetings with White House staff than they were after one meeting with President Biden,” Moore added. Still, the Republicans will continue their conversations with the administration and consider the various aspects of the offer, Moore said in a statement.While Biden’s new proposal is $550 billion less than the original $2.25 trillion American Jobs Plan, Psaki explained that the administration would still pursue much of what was removed, via other legislative vehicles. The plan also still retains $400 billion of elderly and disabled care that Republicans have said doesn’t count as infrastructure.Trimmed BackThe spending figures, detailed in a memo obtained by Bloomberg News, are over 8 years.On funding, the administration demonstrated openness to creating an infrastructure bank, something that Republicans had asked for. The new proposal is “a reasonable counter-offer,” Psaki said.Republican lawmakers and staff felt the latest proposal was different from what had been discussed with the president himself, and assessed that Biden wasn’t in charge of the talks, said the person familiar with the GOP’s view. The Republican group was frustrated to have seen the White House memo only after its circulation in the media, and to see Psaki characterizing the offer even as the call proceeded, the person said.Little MovementBiden instructed his aides to make the overture to the Republican group in hopes of trying to advance the negotiations, a White House official said, speaking on condition of anonymity. The Republicans, led by West Virginia Senator Shelley Moore Capito, didn’t substantially expand their original $568 billion proposal, a person familiar with the discussions said.Capito said in an interview Wednesday that the next two weeks would be critical in determining whether a bipartisan deal was possible. Senate Minority Leader Mitch McConnell had suggested a compromise figure as high as $800 billion, still far below the new Biden topline.The White House committed to shifting spending on manufacturing, supply chains, small business, and research and development to other pieces of legislation being considered by Congress -- including bills aimed at combating China’s technology dominance and the global semiconductor shortage, Psaki said.The administration’s plan doesn’t give up on Biden priorities including spending on clean energy, railways, workforce training, the so-called care economy and other areas that Senate Republicans omitted from their initial offer, according to the memo.Funding QuestionBiden hopes to see the Republicans move on some of those issues, just as he has compromised on some of theirs, the White House official said.The administration continues to oppose user fees as a funding mechanism, as some Republicans have proposed. Biden won’t yield on his requirement not to raise taxes on Americans earning less than $400,000, the memo showed. That would also exclude a hike in the gasoline tax.Biden hosted a group of Senate Republicans at the White House last week to step up an effort for a bipartisan compromise, and both sides have continued talks since then.In last week’s negotiations, the administration highlighted that it would aim to pursue social spending and tax measures separately if they weren’t included in any compromise. The Republicans underscored they wouldn’t consider any roll-back of the 2017 tax cuts they enacted.Biden has also released a separate $1.8 trillion “American Families Plan,” made up of social spending and higher taxes on wealthy individuals.Capito said earlier this week she saw a more than 50% chance of being able to reach an agreement with the president. The overall process still has months to go, she said, with a bill was unlikely to clear both chambers of Congress by July 4, a deadline proposed by House Speaker Nancy Pelosi.(Updates with context on Republican reaction, starting in fourth 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. U.S. Bloomberg 210521 17h29m Dakota Access Avoids New Shutdown Order From Federal Court (Bloomberg) -- A federal district court won’t force the Dakota Access pipeline to shut down while federal regulators conduct a new environmental analysis.The oil project -- at the center of a years-long battle between oil companies and the Standing Rock Sioux tribe -- may remain in service even though it lacks a valid federal easement for a water crossing in North Dakota, the U.S. District Court for the District of Columbia said Friday. The pipeline’s easement was scrapped in an earlier court ruling for inadequate environmental review.The ruling, which may be appealed, is a relief for operator Energy Transfer LP, which has faced an unending stream of legal threats to Dakota Access since 2016. It’s also seen as a rare victory for the pipeline industry as a whole amid rising opposition from environmental watchdogs and activists over the past few years.However, it’s a discouraging loss for the Standing Rock Sioux Tribe and other Indigenous opponents of the pipeline -- already reeling after the Biden administration announced April 9 that it wouldn’t order a shutdown.“We are pleased the court correctly recognized that the continued operation of the Dakota Access pipeline presents no risk of harm to others and appropriately denied the efforts to shut down this vitally important pipeline,” Energy Transfer said in an emailed statement.But government officials could change their minds, leaving some lingering threat for Dakota Access, according to James Coleman, an energy law professor at Southern Methodist University.“It’s not a comfortable position, but it’s a lot more comfortable than it was yesterday,” he said of the pipeline’s status.High BarThe Dakota Access pipeline, also used by drillers such as Continental Resources Inc., has been shipping oil from North Dakota’s Bakken oil field to Illinois for four years.Judge James Boasberg determined the tribes hadn’t met the high bar for shutting down the pipeline under a legal standard set out by a federal appeals court last year.“Whether framed in terms of likelihood or imminence, Plaintiffs have not made a successful showing of irreparable harm based on the threat of an oil spill at Lake Oahe,” the judge wrote, referring to the body of water the pipeline crosses near tribal land.Boasberg scolded the Biden administration for refusing to take a clear stance on the pipeline. The Army Corps of Engineers declined to shut it down, but also failed to formally approve its ongoing operation without an easement.The Army Corps has said it expects to finish a court-ordered environmental impact statement for the project in spring 2022.Earthjustice lawyer Jan Hasselman, who represents Standing Rock, said the tribe will continue to press the Army Corps to closely review the project’s risks.“The unacceptable risk of an oil spill, impacts to Tribal sovereignty and harm to drinking water supply must all be examined thoroughly in the months ahead as the U.S. Army Corps conducts its review of this pipeline,” he said in a statement Friday.‘Free of Political Pressure’He declined to comment on the next steps in the case, including whether the tribes will pursue an appeal.Pipeline opponents could also raise a separate “Hail Mary play” under the Administrative Procedure Act targeting the Army Corps’ inaction, said Christi Tezak, analyst at ClearView Energy Partners, in a note to clients Friday.Energy Transfer reversed early losses and jumped as much as 2.7% following the news. The stock settled up 1.7% in New York. Phillips 66 Partners, which owns a minority stake in the project, gained 6.3% at the close.Energy Transfer didn’t immediately respond to a request for comment. The Army Corps referred questions to the Justice Department, which didn’t immediately respond.“We hope that the administrative process is allowed to move forward allowing the Army Corps of Engineers to complete its work -- free of political pressure,” said Craig Stevens, head of the pro-pipeline GAIN Coalition, in a statement.(Adds company statement in fifth 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. Business Bloomberg 210521 16h29m Meatpacker Marfrig Scoops Up a Quarter of Brazilian Rival BRF (Bloomberg) -- Brazilian beef producer Marfrig Global Foods SA bought about a quarter of rival BRF SA, one of the world’s biggest poultry suppliers, as it seeks to expand in processed food.Marfrig purchased a 24.23% stake in BRF, pledging to remain a passive investor that won’t influence the board or management, according to a regulatory filing. It paid about $800 million, according to a person familiar with the purchase, who asked not to be named because the information isn’t public.BRF shares jumped by a record 29% this week, pushing its market value to almost 22 billion reais ($4.1 billion). That still leaves it at little more than a third of its peak value of more than 60 billion reais in 2015.Trading volumes surged this week as a JPMorgan Chase & Co. brokerage unit dominated the buying, with a net volume of about 48.2 million shares.The Sao Paulo-based foodmakers started discussions on a merger in 2019, but the talks to create what would have become the world’s fourth-largest meat producer ended without a deal at that time.Marfrig, the second-largest beef producer, saw net income surge to record levels last year. Flush with cash, the company has been seeking opportunities to grow, focusing on the processed-food segment in which BRF is a leading producer.Marfrig’s founder and chairman Marcos Molina is the company’s largest shareholder, with a stake of about 38%.More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. World Reuters 210521 16h29m UPDATE 1-Germany declares U.K. a virus variant region Germany's public health institute on Friday declared Britain and Northern Ireland a virus variant region, requiring anyone entering the country from the United Kingdom to quarantine for two weeks on arrival. "In this important phase of the vaccination campaign, the entry of problematic mutations must be avoided as far as possible." Health Minister Jens Spahn said earlier this month that a third wave coronavirus infections in Germany "appears to be broken", but government officials are being careful. Howell date : 210521 18h28m54s Business Bloomberg 210521 17h31m Alden Declares Victory in Its Monthslong Pursuit of Tribune (Bloomberg) -- Alden Global Capital declared victory in its monthslong effort to acquire Tribune Publishing Co. following a shareholder vote on the hedge fund’s bid for daily newspapers in Chicago, New York and other major cities.“The purchase of Tribune reaffirms our commitment to the newspaper industry and our focus on getting publications to a place where they can operate sustainably over the long term,” Alden President Heath Freeman said in a statement Friday.Tribune said in a statement that 81% of shares held by non-Alden stockholders voted to approve the agreement, giving it more than the two-thirds required. Chairman Philip G. Franklin called the results “an important milestone in completing the transaction.”Newspapers have struggled to compete with online media and have seen advertising and subscribers shrink, leading to consolidation, job cuts and financial distress for publishers like Tribune. Alden, known for cutting costs in newsrooms, already owns the Boston Herald, Denver Post and San Jose Mercury News through its Digital First Media chain.The hedge fund holds a 31% stake in Tribune. It agreed in February to pay $17.25 a share, or almost $460 million, for the stock it didn’t already own.Tribune’s No. 2 shareholder, Los Angeles billionaire Patrick Soon-Shiong, abstained from voting his 24% stake.A spokeswoman for Soon-Shiong announced his decision Friday, saying the entrepreneur and his family always viewed Tribune as a passive investment and were more focused on their ownership of the Los Angeles Times and San Diego Union-Tribune. “They remain honored to be entrusted with these storied news organizations and continue working to secure their longevity,” the statement said.Silent ApprovalBut that abstention amounted to approval, according to the Chicago Tribune. Tribune Publishing officials said ballots registered to Soon-Shiong failed to check any box and were counted as a “yes” vote. They would have been counted as “no” votes if the abstain box had been checked. Tribune journalists fought the sale to Alden and tried to find alternative buyers for each of the company’s newspapers, including the namesake Chicago Tribune, the New York Daily News and other big-city publications.“While we are saddened by the turn of events, we know that our work over the past year -- to build allies in the community and to raise awareness about Alden -- is not in vain,” the journalists’ union said in a statement.In early April, Tribune agreed to talks with a rival investor group led by Stewart Bainum that was offering $18.50 a share. Tribune journalists supported Bainum’s bid, but the company ended their discussions after the group’s largest investor, Swiss billionaire Hansjoerg Wyss, dropped out.In a statement, Bainum said we was “deeply grateful to the journalists, readers, and civic-minded investors who teamed with us to help rescue, re-imagine and reinvigorate local journalism.”‘Better Model’“While our effort to acquire the Tribune and its local newspapers has fallen short, the journey reaffirmed my belief that a better model for local news is both possible and necessary,” Bainum said.He added that he’s “evaluating various options” to create “locally supported, not-for-profit newsrooms that place stakeholders above shareholders and journalistic integrity above all.”In February, when Tribune agreed to be acquired by Alden, Bainum was initially part of that purchase, with a side deal that allowed him to buy the Baltimore Sun and smaller newspapers in Maryland.But Bainum and Alden disagreed over how they would share services before the Maryland newspapers were fully independent of Tribune, and Bainum grew skeptical of Alden’s intentions in the deal, people familiar with the situation said in March. That led Bainum to pursue an acquisition of the whole company.Shares of Tribune were little changed at $17.19 in New York.(Adds Tribune’s comment 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. Business Reuters 210521 17h29m Exclusive-U.S. prepares to downgrade Mexico air safety rating -sources WASHINGTON/MEXICO CITY (Reuters) -The U.S. government is preparing to downgrade Mexico’s aviation safety rating, a move that will bar Mexican carriers from adding new U.S. flights and limits airlines ability to carry out marketing agreements, four sources briefed on the matter said. The Federal Aviation Administration's (FAA) planned move is expected be announced in the coming days and follows a lengthy review of Mexico's aviation oversight by the agency. Downgrading Mexico from Category 1 to Category 2 will mean current U.S. service by Mexican carriers is unaffected, but they cannot launch new flights and airline-to-airline marketing practices, like selling seats on each other’s flights in code-share arrangements, are restricted. Politics Business U.S. Business Bloomberg 210521 16h28m Meatpacker Marfrig Scoops Up a Quarter of Brazilian Rival BRF (Bloomberg) -- Brazilian beef producer Marfrig Global Foods SA bought about a quarter of rival BRF SA, one of the world’s biggest poultry suppliers, as it seeks to expand in processed food.Marfrig purchased a 24.23% stake in BRF, pledging to remain a passive investor that won’t influence the board or management, according to a regulatory filing. It paid about $800 million, according to a person familiar with the purchase, who asked not to be named because the information isn’t public.BRF shares jumped by a record 29% this week, pushing its market value to almost 22 billion reais ($4.1 billion). That still leaves it at little more than a third of its peak value of more than 60 billion reais in 2015.Trading volumes surged this week as a JPMorgan Chase & Co. brokerage unit dominated the buying, with a net volume of about 48.2 million shares.The Sao Paulo-based foodmakers started discussions on a merger in 2019, but the talks to create what would have become the world’s fourth-largest meat producer ended without a deal at that time.Marfrig, the second-largest beef producer, saw net income surge to record levels last year. Flush with cash, the company has been seeking opportunities to grow, focusing on the processed-food segment in which BRF is a leading producer.Marfrig’s founder and chairman Marcos Molina is the company’s largest shareholder, with a stake of about 38%.More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. World Reuters 210521 16h28m UPDATE 1-Germany declares U.K. a virus variant region Germany's public health institute on Friday declared Britain and Northern Ireland a virus variant region, requiring anyone entering the country from the United Kingdom to quarantine for two weeks on arrival. "In this important phase of the vaccination campaign, the entry of problematic mutations must be avoided as far as possible." Health Minister Jens Spahn said earlier this month that a third wave coronavirus infections in Germany "appears to be broken", but government officials are being careful. Business Reuters 210521 16h28m Volkswagen's Mexico unit sees new output tweaks in June on chip shortage Volkswagen's Mexico unit expects adjustments from June for its three production segments due to an ongoing global semiconductor chip supply crunch, the German automaker said on Friday. "A significant reduction in the supply of semiconductor (chips) is causing several bottlenecks in many industries around the world," said Volkswagen in a statement. Automakers including General Motors Co, Ford Motor Co and Toyota Motor Corp have cut production this year due to the shortage of semiconductor chips, which was caused by factors including a rise in demand for electronic devices during the pandemic and fast recovery in auto markets. Howell date : 210521 17h28m17s Business Reuters 210521 17h00m REFILE-UPDATE 1-Tribune shareholders approve Alden Global's take-private deal Tribune Publishing Co said on Friday shareholders had approved its proposed acquisition by hedge fund Alden Global Capital LLC. The take-private deal, gives Alden full control of Tribune's newspapers such as the Chicago Tribune and the New York Daily News. As per terms of agreement, expected to close by May 25, Alden will acquire all of the outstanding shares of Tribune common stock not currently owned by it for $17.25 per share in cash. U.S. Bloomberg 210521 16h59m Dakota Access Avoids New Shutdown Order From Federal Court (Bloomberg) -- A federal district court won’t force the Dakota Access pipeline to shut down while federal regulators conduct a new environmental analysis.The oil project -- at the center of a years-long battle between oil companies and the Standing Rock Sioux tribe -- may remain in service even though it lacks a valid federal easement for a water crossing in North Dakota, the U.S. District Court for the District of Columbia said Friday. The pipeline’s easement was scrapped in an earlier court ruling for inadequate environmental review.The ruling, which may be appealed, is a relief for operator Energy Transfer LP, which has faced an unending stream of legal threats to Dakota Access since 2016. It’s also seen as a rare victory for the pipeline industry as a whole amid rising opposition from environmental watchdogs and activists over the past few years.However, it’s a discouraging loss for the Standing Rock Sioux Tribe and other Indigenous opponents of the pipeline -- already reeling after the Biden administration announced April 9 that it wouldn’t order a shutdown.“We are pleased the court correctly recognized that the continued operation of the Dakota Access pipeline presents no risk of harm to others and appropriately denied the efforts to shut down this vitally important pipeline,” Energy Transfer said in an emailed statement.But government officials could change their minds, leaving some lingering threat for Dakota Access, according to James Coleman, an energy law professor at Southern Methodist University.“It’s not a comfortable position, but it’s a lot more comfortable than it was yesterday,” he said of the pipeline’s status.High BarThe Dakota Access pipeline, also used by drillers such as Continental Resources Inc., has been shipping oil from North Dakota’s Bakken oil field to Illinois for four years.Judge James Boasberg determined the tribes hadn’t met the high bar for shutting down the pipeline under a legal standard set out by a federal appeals court last year.“Whether framed in terms of likelihood or imminence, Plaintiffs have not made a successful showing of irreparable harm based on the threat of an oil spill at Lake Oahe,” the judge wrote, referring to the body of water the pipeline crosses near tribal land.Boasberg scolded the Biden administration for refusing to take a clear stance on the pipeline. The Army Corps of Engineers declined to shut it down, but also failed to formally approve its ongoing operation without an easement.The Army Corps has said it expects to finish a court-ordered environmental impact statement for the project in spring 2022.Earthjustice lawyer Jan Hasselman, who represents Standing Rock, said the tribe will continue to press the Army Corps to closely review the project’s risks.“The unacceptable risk of an oil spill, impacts to Tribal sovereignty and harm to drinking water supply must all be examined thoroughly in the months ahead as the U.S. Army Corps conducts its review of this pipeline,” he said in a statement Friday.‘Free of Political Pressure’He declined to comment on the next steps in the case, including whether the tribes will pursue an appeal.Pipeline opponents could also raise a separate “Hail Mary play” under the Administrative Procedure Act targeting the Army Corps’ inaction, said Christi Tezak, analyst at ClearView Energy Partners, in a note to clients Friday.Energy Transfer reversed early losses and jumped as much as 2.7% following the news. The stock settled up 1.7% in New York. Phillips 66 Partners, which owns a minority stake in the project, gained 6.3% at the close.Energy Transfer didn’t immediately respond to a request for comment. The Army Corps referred questions to the Justice Department, which didn’t immediately respond.“We hope that the administrative process is allowed to move forward allowing the Army Corps of Engineers to complete its work -- free of political pressure,” said Craig Stevens, head of the pro-pipeline GAIN Coalition, in a statement.(Adds company statement in fifth 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. World Business Business Bloomberg 210521 15h28m Oil Has Worst Week in Over a Month With Potential Iran Return (Bloomberg) -- Oil benchmarks suffered their worst week in more than a month as the market considered the consequences of a potential nuclear deal that could lift U.S. sanctions against Iranian crude.WTI futures in New York fell 2.7% for the week, the worst performance since early April. Brent posted the largest weekly decline since March, amid the possible return of millions of barrels a day of Iranian crude returning to the market. President Hassan Rouhani this week said world powers have accepted that major sanctions will be lifted as part of any nuclear deal.“There’s concern about the additional slug of supply potentially coming from Iran,” said John Kilduff, a partner at Again Capital LLC. “The prospect of more Iranian supply has been a momentum killer.”Some analysts estimate Iran could return to pre-sanctions production of almost 4 million barrels a day in as little as three months. Iranian oil output has been rising this year and was about 2.4 million barrels a day last month, according to estimates compiled by Bloomberg.The key to whether the potential rise in Iranian output upsets global inventory drawdowns is how early the country re-enters the oil market, Michael Hsueh, an analyst at Deutsche Bank, said in a note. While the third-quarter deficit stands at only 1.2 million barrels-a-day, the market is more equipped to handle the additional output the following quarter when that shortfall is likely larger, he wrote.“The most pressing question will be how much an early Iranian ramp-up could hurt third-quarter balances,” Hsueh wrote. “The schedule of the ramp-up will be principally a question of politics and negotiation,” as Iran’s supply “could be brought into the market before an actual increase in production.”Oil was also caught in a broader selloff this week in commodities and equities markets following concerns about inflation. Hedge funds cut their net bullish position in WTI and Brent for a second straight week, according to weekly ICE Futures Europe and CFTC futures and options data for four contracts.The streak of losses this week tested the borders of oil’s current trading range, with the benchmarks finding technical support after dipping to their lowest since April. Brent has been trading within a roughly $5 band over the last month, pulling back from $70 a barrel but prompting a round of buying the closer it got to $65.Prior to the implementation of sanctions, Iran was producing about 3.8 million barrels a day of crude. Only Iraq and Saudi Arabia’s output exceeds that amount within the Organization of Petroleum Exporting Countries. Still, Citigroup Inc. estimates overall global demand is strong enough to absorb any additional supply, including from Iran and that prices will continue to climb.Meanwhile, the prompt spread for Nymex gasoline futures moved into a marked contango on Friday, reflecting expectations that fuel markets may be oversupplied.“The gasoline spread threatening to switch to contango implies the gasoline market is oversupplied going into Memorial Day weekend, and that’s a negative price development,” said Bob Yawger, head of the futures division at Mizuho Securities. “The inflation situation has also started to spook some people, with prices at the pump getting a little lofty.”More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. Howell date : 210521 16h27m41s Business Reuters 210521 16h07m Volkswagen's Mexico unit sees new output tweaks in June on chip shortage Volkswagen's Mexico unit expects adjustments from June for its three production segments due to an ongoing global semiconductor chip supply crunch, the German automaker said on Friday. "A significant reduction in the supply of semiconductor (chips) is causing several bottlenecks in many industries around the world," said Volkswagen in a statement. Automakers including General Motors Co, Ford Motor Co and Toyota Motor Corp have cut production this year due to the shortage of semiconductor chips, which was caused by factors including a rise in demand for electronic devices during the pandemic and fast recovery in auto markets. Business Bloomberg 210521 15h48m Oil Has Worst Week in Over a Month With Potential Iran Return (Bloomberg) -- Oil benchmarks suffered their worst week in more than a month as the market considered the consequences of a potential nuclear deal that could lift U.S. sanctions against Iranian crude.WTI futures in New York fell 2.7% for the week, the worst performance since early April. Brent posted the largest weekly decline since March, amid the possible return of millions of barrels a day of Iranian crude returning to the market. President Hassan Rouhani this week said world powers have accepted that major sanctions will be lifted as part of any nuclear deal.“There’s concern about the additional slug of supply potentially coming from Iran,” said John Kilduff, a partner at Again Capital LLC. “The prospect of more Iranian supply has been a momentum killer.”Some analysts estimate Iran could return to pre-sanctions production of almost 4 million barrels a day in as little as three months. Iranian oil output has been rising this year and was about 2.4 million barrels a day last month, according to estimates compiled by Bloomberg.The key to whether the potential rise in Iranian output upsets global inventory drawdowns is how early the country re-enters the oil market, Michael Hsueh, an analyst at Deutsche Bank, said in a note. While the third-quarter deficit stands at only 1.2 million barrels-a-day, the market is more equipped to handle the additional output the following quarter when that shortfall is likely larger, he wrote.“The most pressing question will be how much an early Iranian ramp-up could hurt third-quarter balances,” Hsueh wrote. “The schedule of the ramp-up will be principally a question of politics and negotiation,” as Iran’s supply “could be brought into the market before an actual increase in production.”Oil was also caught in a broader selloff this week in commodities and equities markets following concerns about inflation. Hedge funds cut their net bullish position in WTI and Brent for a second straight week, according to weekly ICE Futures Europe and CFTC futures and options data for four contracts.The streak of losses this week tested the borders of oil’s current trading range, with the benchmarks finding technical support after dipping to their lowest since April. Brent has been trading within a roughly $5 band over the last month, pulling back from $70 a barrel but prompting a round of buying the closer it got to $65.Prior to the implementation of sanctions, Iran was producing about 3.8 million barrels a day of crude. Only Iraq and Saudi Arabia’s output exceeds that amount within the Organization of Petroleum Exporting Countries. Still, Citigroup Inc. estimates overall global demand is strong enough to absorb any additional supply, including from Iran and that prices will continue to climb.Meanwhile, the prompt spread for Nymex gasoline futures moved into a marked contango on Friday, reflecting expectations that fuel markets may be oversupplied.“The gasoline spread threatening to switch to contango implies the gasoline market is oversupplied going into Memorial Day weekend, and that’s a negative price development,” said Bob Yawger, head of the futures division at Mizuho Securities. “The inflation situation has also started to spook some people, with prices at the pump getting a little lofty.”More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. Business Reuters 210521 15h43m SEC approves Nasdaq proposal to allow IPO alternative to raise funds In a filing https://bit.ly/3vc3jHV dated May 19, the SEC said Nasdaq's proposed rule change was consistent with the regulator's rules and regulations and could be beneficial to investors as an alternative to a traditional initial public offering. The move is a big breakthrough for the exchange operator that has been pushing for an alternative for companies to raise money. Reuters had reported in August https://www.reuters.com/article/us-nasdaq-direct-listing-exclusive-idUSKBN25L1BC that Nasdaq had filed with the SEC to change its rules to enable companies that debut on the stock market through a direct listing to raise capital. Politics U.S. Howell date : 210521 15h27m04s Business Reuters 210521 14h57m US STOCKS-U.S. stocks end mixed as Dow recovers on strong economic data Wall Street closed mixed at the end of a volatile week of trading, with the Dow Jones Industrial Average being the only bright spot, as inflation concerns loom over growth names. The Dow was lifted by industrial heavyweights, including Boeing and Caterpillar Inc.. Boeing jumped 3.1% as industry sources said the planemaker has drawn up preliminary plans to increase in 737 MAX output to as many as 42 jets a month in fall 2022.. Banks, including Goldman Sachs, and JP Morgan , also supported the Dow. Business Bloomberg 210521 14h55m Fed’s Daly Says Inflation Pressures Likely to Ease in 2022 (Bloomberg) -- Sign up for the New Economy Daily newsletter, follow us @economics and subscribe to our podcast.Factors pushing U.S. inflation higher are likely to ebb at the start of 2022, said Federal Reserve Bank of San Francisco President Mary Daly.“There’s just going to be a sequence of these temporary factors that are going to persist probably through the end of the year,” Daly said Friday in an interview with Bloomberg News. “They will start to roll off at the beginning of next year. How many of them will roll off or whether other bottlenecks will emerge as we start to get the economy back into shape and get back into recovery is hard to say.”Daly, a voter this year on monetary policy, said she expects inflation to remain elevated through the end of 2021 and that a variety of pressures are adding to price increases right now, including supply-chain constraints in shipping and semiconductor manufacturing and the so-called base effect of comparing this year’s prices to last year’s pandemic-induced declines.Fed officials last month held interest rates near zero and vowed to maintain their massive monthly asset purchases until achieving “substantial further progress” on employment and inflation. There’s a range of views among officials about when that test will be met.Details of their April 27-28 meeting showed that a number of officials were open to discussing scaling back bond buying at upcoming meetings if the economy continued to make rapid progress.Daly said monetary policy is in a good place right now and that policy makers need to be patient in light of the more than 8 million people who are still unemployed compared with pre-pandemic levels. Despite some “frothy” spots in financial markets, overall they’re also in a good place, she said.Some of Daly’s colleagues on the Federal Open Market Committee, including Dallas Fed President Robert Kaplan and Philadelphia Fed President Patrick Harker, have said they think the Fed should start talking about tapering its bond purchases sooner rather than later. But Chair Jerome Powell has said it’s too early to think about removing some of the central bank’s accommodative policy.”I don’t want to front run the committee discussions by coming down on any particular thing because we’re not in a place where that’s been decided,” Daly said. “You would hear that first from the chair and he has signaled that we’re not ready to start talking about talking about these types of things.”The Fed is buying $80 billion of Treasuries and $40 billion of mortgage backed securities every month. Some policy makers have said that when the central bank does start scaling back purchases, it should start with MBS, arguing that record-high housing prices are a sign that market no longer needs the Fed’s support.Daly said that some of the increases in housing prices are due to structural changes in where people want to live. Many people left smaller city apartments for houses in the suburbs in the midst of the pandemic. Many of the home purchases are still for primary residences and not the secondary or even tertiary home buying that helped fuel the 2008-2009 financial crisis, Daly said.“Home buyers and households in general are incredibly well positioned,” Daly said. “Their leverage is low, their savings is high, they’ve done well after the financial crisis to get their balance sheets in order. They’re also having this happen while the economy is starting to grow faster so that would support these dynamics which would support these valuations.”More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. Politics Reuters 210521 14h47m Republicans and White House 'further apart' in infrastructure talks Republicans and the White House are "further apart" in negotiations to reach a deal on an infrastructure package, Senator Shelley Moore Capito's office said on Friday, after the White House lowered the cost of an infrastructure bill from $2.3 trillion to $1.7 trillion. "Based on today's meeting, the groups seem further apart after two meetings with White House staff than they were after one meeting with President Biden," a spokeswoman for the senator said. "Senate Republicans will further review the details in today's counteroffer and continue to engage in conversations with the administration." Business Yahoo Finance Video 210521 14h41m This week in Bidenomics Yahoo FInance's Rick Newman joined Yahoo Finance Live to break down why providing the IRS with money to catch tax cheats is a smart move and how the WHite House pares down the proposed infrastructure bill to $1.7T. Business Reuters 210521 14h29m CANADA FX DEBT-Canadian dollar up for 8th straight week as speculative buying climbs Speculators have raised their bullish bets on the Canadian dollar to the highest since November 2019, data from the U.S. Commodity Futures Trading Commission (CFTC) showed. The Canadian dollar was trading nearly unchanged at 1.2055 to the greenback, or 82.95 U.S. cents, having traded in a range of 1.2027 to 1.2094. Howell date : 210521 14h26m27s Business Bloomberg 210521 14h10m Annovis’s 127% Surge Showcases Alzheimer’s Drug Enthusiasm (Bloomberg) -- Annovis Bio Inc.’s 127% surge after new data from a trial of its experimental drug to combat Alzheimer’s disease and Parkinson’s disease showcased investors’ enthusiasm for stocks that are targeting the tough-to-treat brain disorders.The fervor sent the Berwyn, Pennsylvania-based company soaring to a record high of $60 on Friday as it added around $230 million in value and millions of shares changed hands -- making it one of the day’s most actively traded stocks. The company said patients that received the drug for 25 days showed cognitive improvement as measured by an 11-part test.The rally comes with about two weeks until a critical decision from the Food and Drug Administration over whether to approve Biogen Inc.’s experimental Alzheimer’s drug, aducanumab. The decision on the hotly debated therapy is seen as the most-closely watched event in the biotech industry this year -- and a green light may buoy shares of other firms with therapies that are less advanced.Traders have highlighted Biogen’s Japan-based partner Eisai Co., Prothena Corp., Athira Pharma Inc., Alector Inc., and Cassava Sciences Inc. among smaller peers that could see big share reactions if Biogen’s drug wins approval. It’s worth noting that euphoria around small datasets has helped make Cassava Sciences one of the best-performing stocks in the Russell 2000 this year despite warnings from one analyst that the company is “not for the faint of heart.”Many of the companies that are also studying experimental drugs for Alzheimer’s saw their shares climb Friday as traders discussed the implications of Annovis Bio’s data. Cassava Sciences climbed as much as 11% at one point Friday, while Anavex Life Sciences Corp. gained as much as 6.7% and Prothena as much as 8.7%.(Updates trading throughout.)More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. Business Bloomberg 210521 14h06m U.S. Stocks Are Mixed; Bitcoin Resumes Decline: Markets Wrap (Bloomberg) -- U.S. stocks were mixed after investors were whipsawed in part by volatile trading in high risk assets such as Bitcoin amid lingering concerns about the outlook for inflation. Oil rose for the first time in four trading sessions.The S&P 500 closed little changed after erasing earlier gains when Philadelphia Fed President Patrick Harker said the central bank should speak about reducing bond buying sooner rather than later. The tech-heavy Nasdaq 100 finished lower, while the Dow Jones Industrial Average gained as investors shifted from growth to value favorites such as Boeing. Bitcoin resumed its selloff Friday after China reiterated a warning that it intends to crack down on cryptocurrency mining as part of an effort to control financial risks.“For people to say Bitcoin shouldn’t influence equity prices on a short-term basis, that’s crazy,” said Tom Essaye, a former Merrill Lynch trader who founded “The Sevens Report” newsletter. “We live in a 24/7 market and at least in the short term, it’s run by algorithms and they all trade the same stuff. When you get a negative headline you’re going to see it all sell.”European shares climbed earlier on prospects of easing lockdowns and as services data signaled a recovery. Asian shares were mostly higher, although they slipped in China.Treasury yields were little changed and the dollar gained. Gold dropped from its highest level in more than four months.China’s has long expressed displeasure with the anonymity provided by Bitcoin and other crypto tokens, and warned earlier in the week that financial institutions weren’t allowed to accept it for payment. China is home to a large concentration of the world’s crypto miners, programmers who use massive computing power to verify transactions on the blockchain.The global economic revival, the risk of a significant pickup in inflation and Covid-19 flareups in some parts of the world continue to shape market moves. Stocks have been volatile this week, with speculative ardor cooling as minutes from the latest Fed meeting flagged the possibility of a debate at some point on scaling back stimulus measures. Still, better-than-forecast jobless claims data on Thursday buoyed sentiment.“Inflation fears and concerns over the Fed tightening monetary policy appear to have eased,” said Fiona Cincotta, senior financial markets analyst at City Index. “The impact from the FOMC minutes where the Fed indicated its readiness to start talking about tapering asset purchases appears to have been short-lived.”Elsewhere, oil trimmed its biggest weekly decline since March. In Europe, Cartier jewelry maker Richemont gained after posting sales that topped estimates.Click here for the MLIV question of the day: How should markets price in an aging China?Here are some key events this week:Euro-area finance ministers and central bank chiefs hold an informal meeting. A larger group of EU finance ministers and central bank chiefs will meet May 22These are some of the main moves in markets:StocksThe S&P 500 was little changed as of 4:01 p.m. New York timeThe Nasdaq 100 fell 0.6%The Dow Jones Industrial Average rose 0.4%The MSCI World index was little changedCurrenciesThe Bloomberg Dollar Spot Index rose 0.2%The euro fell 0.3% to $1.2187The British pound fell 0.2% to $1.4155The Japanese yen fell 0.1% to 108.90 per dollarBondsThe yield on 10-year Treasuries was little changed at 1.62%Germany’s 10-year yield declined two basis points, more than any closing loss since May 4Britain’s 10-year yield was little changed at 0.83%CommoditiesWest Texas Intermediate crude rose 3.1%, the most since April 14Gold futures fell 0.1% to $1,882 an ounce, ending a six-day winning streakMore stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. Business Reuters 210521 14h04m US STOCKS-U.S. stocks end mixed as Dow extends recovery after strong economic data The Dow Jones Industrial Average rose with the help of Boeing, which jumped as industry sources said the planemaker has drawn up preliminary plans to increase in 737 MAX output to as many as 42 jets a month in fall 2022.. Banks, including Goldman Sachs and JP Morgan , also lifted the Dow. On S&P 500, economy-linked financials and energy are providing the biggest boost. Business Bloomberg 210521 14h04m Tesla Records Longest Weekly Losing Streak in Three Years (Bloomberg) -- Tesla Inc. shares hit a gloomy milestone -- dropping for a fifth straight week -- after several unflattering headlines and the unveiling of a formidable electric pickup truck by Ford Motor Co.The stock closed down 1.5% for the week, at $580.88. It is the longest weekly losing streak for Elon Musk’s EV company since March 2018, coming as investors started avoiding riskier stocks amid growing concerns about inflation and its impact on the U.S. economy, as well as some intense flare-ups of Covid-19 infections in some countries.The steady stream of negative incremental news about Tesla over the past month -- including multiple crashes, signs of a slowdown in sales in China and a potential delay to the company’s plant in Germany -- has made it hard for the stock to find favor with investors in a largely risk-off trading environment.Musk’s persistent tweeting about Bitcoin, which crashed earlier this month, also hasn’t helped Tesla shares.“Musk seems to be losing some of his mojo with retail investors,” Roth Capital Partners analyst Craig Irwin said, reflecting on the stock’s recent weakness. The analyst doesn’t see the tide turning in Tesla’s favor anytime soon, as he expects more EV announcements from traditional automakers, and possibly more leaks regarding tech giant Apple Inc.’s plans for entering the space.“This would draw attention away from Tesla, and likely pressure the shares,” Irwin said.(Updates stock move in headline, and first and second paragraphs.)More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. Business Yahoo Finance 210521 14h04m Stock market news live updates: Stocks turn mixed, Wall Street struggles amid inflation fears Wall Street is trying to strike a balance between optimism over the recovery, and the encroachment of higher prices on the economy. Business Bloomberg 210521 14h01m Bitcoin Ends Week in Free Fall With China Again Rattling Bulls (Bloomberg) -- Bitcoin is heading into the weekend in freefall again after a fresh warning from Chinese officials over cracking down on cryptocurrencies.The largest digital currency fell as much as 10% in late Friday trading to as low as $35,636, and peer tokens also posted double-digit losses. The coin almost hit $30,000 earlier in the week, after ending May 14 at $49,100.The latest blow came when China’s State Council reiterated its call to curtail Bitcoin mining and trading. The crypto market was already rattled earlier in the week by forced selling and possible U.S. tax consequences.Friday’s selloff hit Bitcoin believers still fuming after onetime proponent Elon Musk did an about-face and criticized the token for its energy usage. Bitcoin is down about 25% since last Friday, though it’s up from a Wednesday plunge to as low as $30,000. Other coins have slumped too -- Ether is down about 38% over the past seven sessions.The sour stretch started with Musk suspending acceptance of Bitcoin payments at Tesla Inc. and trading barbs with boosters of the cryptocurrency on Twitter. China’s central bank added to the downdraft Tuesday with a statement warning against using virtual currencies. On Thursday, it emerged the U.S. may require crypto transactions of $10,000 or more to be reported to tax authorities.China has long expressed displeasure with the anonymity provided by Bitcoin and other crypto tokens, and warned earlier that financial institutions weren’t allowed to accept it for payment. The country is home to a large concentration of the world’s crypto miners, who require massive amounts of power and thus run afoul of the nation’s efforts to curb greenhouse-gas emissions.“The new guidance issued from the regulatory agencies -- they’re taking it more seriously, they want more enforcement,” Bobby Lee, founder and chief executive officer of crypto storage provider Ballet, said in an interview Friday. “There’s talk about going after miners. The question is, can they catch all the miners.”China’s moves this week highlight the country’s continued desire to seek control over the notoriously volatile asset class. It’s something China would rather see regulated by the People’s Bank of China, market-watchers say.“It’s not really the mining issue that is the problem,” said Matt Maley, chief market strategist for Miller Tabak + Co. “They say they’re doing this as part of an effort to control risk-taking in their markets, but it’s really a signal that China is not going to be a big market for cryptos unless it’s a PBOC-controlled one.”In the meantime, volatility in Bitcoin is likely to stay elevated. The selloff Friday once again pushed Bitcoin below its average price over the past 200 days, which to some chartists and technical analysts suggests it could trend lower still to around $30,000, where it found support earlier this week.This week’s swings have led to huge liquidations by leveraged investors and damaged the narrative that cryptocurrencies will become more stable as the sector matures. Musk’s actions showed how just a few tweets can still upend the entire market. But even moreso, the past few days have renewed the regulatory threat on the crypto market.“Investors are underestimating the regulatory risk of crypto as governments defend their lucrative monopolies over currency,” said Jay Hatfield, chief executive officer of Infrastructure Capital Advisors in New York. In the U.S., the possible imposition of transaction reporting requirements could be the “tip of the iceberg” of potential Treasury rules on virtual currencies, he said.As far as regulations in China go, it may be a game of wait and see.“You must always proceed cautiously with China -- never get too bullish or bearish,” said David Tawil, president of ProChain Capital. “We’ll have to see what the regulation brings. It’s one thing to say, it’s another to do.”(Updates prices, adds comments in fourth, eighth and last paragraphs)More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. U.S. Bloomberg 210521 13h56m Dakota Access Avoids New Shutdown Order From Federal Court (Bloomberg) -- A federal district court won’t force the Dakota Access pipeline to shut down while federal regulators conduct a new environmental analysis.The oil project -- at the center of a years-long battle between oil companies and the Standing Rock Sioux tribe -- may remain in service even though it lacks a valid federal easement for a water crossing in North Dakota, the U.S. District Court for the District of Columbia said Friday. The pipeline’s easement was scrapped in an earlier court ruling for inadequate environmental review.The ruling, which may be appealed, is a relief for operator Energy Transfer LP, which has faced an unending stream of legal threats to Dakota Access since 2016. It’s also seen as a rare victory for the pipeline industry as a whole, amid rising opposition from environmental watchdogs and activists over the past few years.However, it’s a discouraging loss for the Standing Rock Sioux Tribe and other Indigenous opponents of the pipeline -- already reeling after the Biden administration announced April 9 that it wouldn’t order a shutdown.The Dakota Access pipeline, also used by drillers such as Continental Resources Inc., has been been shipping oil from North Dakota’s Bakken oil field to Illinois for four years.High BarJudge James Boasberg determined the tribes hadn’t met the high bar for shutting down the pipeline under a legal standard set out by a federal appeals court last year.“Whether framed in terms of likelihood or imminence, Plaintiffs have not made a successful showing of irreparable harm based on the threat of an oil spill at Lake Oahe,” the judge wrote, referring to the body of water the pipeline crosses near tribal land.The Army Corps of Engineers has said it expects to finish a court-ordered environmental impact statement for the project in spring 2022.Earthjustice lawyer Jan Hasselman, who represents Standing Rock, said the tribe will continue to press the Army Corps to closely review the project’s risks.“The unacceptable risk of an oil spill, impacts to Tribal sovereignty and harm to drinking water supply must all be examined thoroughly in the months ahead as the U.S. Army Corps conducts its review of this pipeline,” he said in a statement Friday.Energy Transfer reversed early losses and jumped as much as 2.7% following the news. The stock gained 1.7% as of 3:16 p.m. in New York. Phillips 66 Partners, which owns a minority stake in the project, surged as much as 7.9%.Energy Transfer didn’t immediately respond to a request for comment. The Army Corps referred questions to the Justice Department, which didn’t immediately respond.(Updates throughout with comments from judge, lawyer, share price.)More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. Howell date : 210521 13h55m50s Business Reuters 210521 13h48m FOREX-Dollar rises on upbeat U.S. manufacturing data The dollar rose against a basket of currencies on Friday, boosted by encouraging U.S. manufacturing data, but remained on track for a weekly loss as traders' concerns about taper talk in U.S. Federal Reserve minutes moderated. The dollar has given back much of the advance it made after a mention in minutes from the Fed's April monetary policy meeting of possible future discussions on paring back stimulus, raised hopes U.S. interest rate raises might come earlier than previously thought. "Taper concerns have faded rather quickly, it would seem," Shaun Osborne, chief currency strategist at Scotiabank, said in a note. Business Bloomberg 210521 13h36m Fed’s Tools Showing Signs of Stress Against the Cash Onslaught (Bloomberg) -- The deluge of cash in the short-end is threatening to create fissures in the Federal Reserve’s key rates corridor, increasing chances policy makers will be forced to adjust their tools to defend the floor.The effective fed funds rate remains at 0.06%, within the Fed’s 0% to 0.25% target range, anchored by the offering yield on the Fed’s facility for overnight reverse repurchase agreements. While the operation has been draining reserves from the system, there’s a risk that money-market funds -- the primary counterparties -- will eventually demand higher yields to handle the surge in inflows.“The Fed relies on money funds to provide a floor on interest rates as these entities can deposit cash via reverse repos directly with the central bank at zero, thereby draining reserves and helping to stop rates from going negative,” Mark Cabana, head of U.S. interest rate strategy at Bank of America, wrote in a note to clients. “The risk of cracking stems from money funds that would no longer remain willing to drain reserves for the Fed via ON RRP while being paid zero for this service.”The front-end of the U.S. fixed-income market has been awash in cash. In addition to central-bank asset purchases, the drawdown of the Treasury’s general account, monthly principal and interest investments from government sponsored enterprises and stimulus payments to state and local municipalities are adding to the glut. Regulatory constraints are also spurring banks to turn away deposits and direct that cash to money-market funds.As a result, Treasury bills out to November are yielding two basis points or less and the Secured Overnight Financing Rate has fixed at 0.01% since March. Demand at the Fed’s reverse repo facility surged to $369 billion on Friday, with 52 participants taking it to the highest in almost four years.While the Fed is equipped to handle the surge in demand at this facility, the problem for money funds is that the additional inflows that get deposited with the Fed dilute investment returns for existing shareholders, according to Cabana. The longer the rate on the Fed’s facility remains at zero, money markets will either need to close funds to new or existing investors or offer zero or negative return to investors, he said.The Fed is aware of the significant portion of the T-bill and repo markets that is trading at zero and that doesn’t mean the central bank will hold off on adjusting its so-called administered rates, Barclays Plc strategist Joseph Abate wrote in a note to clients. He expects policy makers to adjust the offering yield on the reverse repo facility, and interest on excess reserve rate, or IOER, by five basis points at the June meeting, citing the tone of the recent minutes.In the minutes of the latest Fed gathering released Wednesday, the System Open Market Account manager noted that downward pressure on overnight rates in coming months could result in conditions that warrant consideration of a modest adjustment to administered rates.Bank of America strategists believe that it would be appropriate for the Fed to boost IOER by five basis points and the RRP offering rate by two or three basis points to bolster the floor as soon as the June FOMC meeting.(Adds Barclays strategist comment in the seventh 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. Business Reuters 210521 13h31m Speculators increase short dollar bets in latest week -CFTC, Reuters data Speculators increased their net short dollar positions in the latest week, according to calculations by Reuters and U.S. Commodity Futures Trading Commission data released on Friday. The value of the net short dollar position rose to $15.07 billion in the week ended May 18, compared with a net short of $14.93 billion the previous week. Howell date : 210521 13h25m13s Howell date : 210521 12h54m34s Business Bloomberg 210521 12h41m U.S. Stocks Are Mixed; Bitcoin Resumes Decline: Markets Wrap (Bloomberg) -- U.S. stocks were mixed after investors were whipsawed in part by volatile trading in high risk assets such as Bitcoin amid lingering concerns about the outlook for inflation. Oil rose for the first time in four trading sessions.The S&P 500 fluctuated between gains and losses after Philadelphia Fed President Patrick Harker said the central bank should speak about reducing bond buying sooner rather than later. The tech-heavy Nasdaq 100 was lower, while the Dow Jones Industrial Average gained as investors shifted from growth to value favorites such as Boeing. Bitcoin resumed its selloff Friday after China reiterated a warning that it intends to crack down on cryptocurrency mining as part of an effort to control financial risks.“For people to say Bitcoin shouldn’t influence equity prices on a short-term basis, that’s crazy,” said Tom Essaye, a former Merrill Lynch trader who founded “The Sevens Report” newsletter. “We live in a 24/7 market and at least in the short term, it’s run by algorithms and they all trade the same stuff. When you get a negative headline you’re going to see it all sell.”European shares climbed earlier on prospects of easing lockdowns and as services data signaled a recovery. Asian shares were mostly higher, although they slipped in China.Treasury yields were little changed and the dollar gained. Gold dropped from its highest level in more than four months.China’s has long expressed displeasure with the anonymity provided by Bitcoin and other crypto tokens, and warned earlier in the week that financial institutions weren’t allowed to accept it for payment. China is home to a large concentration of the world’s crypto miners, programmers who use massive computing power to verify transactions on the blockchain.The global economic revival, the risk of a significant pickup in inflation and Covid-19 flareups in some parts of the world continue to shape market moves. Stocks have been volatile this week, with speculative ardor cooling as minutes from the latest Fed meeting flagged the possibility of a debate at some point on scaling back stimulus measures. Still, better-than-forecast jobless claims data on Thursday buoyed sentiment.“Inflation fears and concerns over the Fed tightening monetary policy appear to have eased,” said Fiona Cincotta, senior financial markets analyst at City Index. “The impact from the FOMC minutes where the Fed indicated its readiness to start talking about tapering asset purchases appears to have been short-lived.”Elsewhere, Brent oil trimmed its biggest weekly decline since March. In Europe, Cartier jewelry maker Richemont gained after posting sales that topped estimates.Click here for the MLIV question of the day: How should markets price in an aging China?Here are some key events this week:Euro-area finance ministers and central bank chiefs hold an informal meeting. A larger group of EU finance ministers and central bank chiefs will meet May 22These are some of the main moves in markets:StocksThe S&P 500 was little changed as of 2:34 p.m. New York timeThe Nasdaq 100 fell 0.4%The Dow Jones Industrial Average rose 0.5%The MSCI World index rose 0.1% to the highest since May 10CurrenciesThe Bloomberg Dollar Spot Index rose 0.2%The euro slipped 0.4%, more than any closing loss since May 12The British pound fell 0.3% to $1.4154The Japanese yen fell 0.1% to 108.93 per dollarBondsThe yield on 10-year Treasuries was little changed at 1.63%Germany’s 10-year yield declined two basis points, more than any closing loss since May 4Britain’s 10-year yield was little changed at 0.83%CommoditiesWest Texas Intermediate crude rose 2.8%, the most since April 14Gold futures fell 0.1% to $1,882 an ounce, ending a six-day winning streakMore stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. Business Bloomberg 210521 12h32m Castillo Halts Fujimori’s Advance in Latest Peru Runoff Poll (Bloomberg) -- Peru’s Pedro Castillo consolidated his lead in a new election poll released on Friday over Keiko Fujimori as the left wing educator looks to secure the presidency in a runoff on June 6.In a vote simulation done by polling company Datum, Castillo received 45.5% compared with 40.1% for Fujimori, according to the data published in newspaper Gestion. That compares with a previous Datum simulation that had the difference at a more narrow 3.6 percentage points.Voter intention, a slightly different gauge, had Castillo at 44.9% against 40.1% for Fujimori with 9.2% planning to spoil their ballot and 5.8% undecided, according to Datum. The poll surveyed 1,201 people between May 18 and 20 with a margin of error of 2.8%.Peruvian markets soured Friday following the survey results. Asset prices have been whipsawed since the surprise first-round vote in April that saw Castillo emerge from near obscurity to handily beat a crowded field of candidates. Fujimori, who has unsuccessfully sought the presidency in the two previous elections, is trying to claw back terrain after initially trailing by some 20 percentage points in polls.Peru’s dollar bonds due in 2051 fell 0.9% to trade at 97.3 cents on the dollar, the lowest in three weeks and the nation’s benchmark stock index was poised for its biggest drop in a month. The cost of insuring the country’s debt against default over the next five years jumped by 7.7 basis points, putting it on course for its largest one-day increase since April 26, based on CMA pricing.A separate poll by Ipsos released last weekend showed the candidates virtually tied within the margin of error.Castillo is pledging greater spending on education and health while demanding higher taxes from multinationals. Fujimori promises to maintain investor confidence and use her experience in a divided congress to push through legislation and find consensus.The Peruvian sol has lost 2.4% since the first-round vote, the worst performing currency in emerging markets over that period.(Updates with market reaction in 5th 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. Business Yahoo Finance Video 210521 12h29m Prospect of Fed tapering can be interpreted as ‘somewhat bullish’: Strategist Kathy Jones, Chief Fixed Income Strategist at Charles Schwab, joins Yahoo Finance to discuss outlook on the bond market and inflation pressures. World Bloomberg 210521 12h22m U.S. Enlists Dating Apps; EU Travel Moves Forward: Virus Update (Bloomberg) -- The White House is enlisting popular dating apps to encourage Americans to brandish their vaccination status in exchange for a better shot at love. Just as Wall Street offices are filling up, New York City’s high-flying social life is returning.California outlined its plans for full reopening, saying it will lift physical distancing and capacity limits on June 15, as well as drop quarantine requirements for people traveling into the state.Europeans and some foreign visitors can firm up their summer plans in the region, after EU negotiators agreed to introduce vaccine certificates. The EU’s drug regulator issued a warning against using AstraZeneca’s vaccine in some cases.Key Developments:Global Tracker: Cases pass 165.6 million; deaths exceed 3.4 millionVaccine Tracker: More than 1.57 billion doses have been givenHow long do vaccine protections last? Science can’t say for sureItaly’s disappearing villages are having a pandemic renaissanceBillionaire’s year at home gives impetus to Africa vaccine planFungal epidemic, sick babies: Worst of Covid plays out in IndiaN.Y. Positive Tests Dip Below 1% (2:15 p.m. NY)New York’s state’s seven-day positivite test rate dropped below 1% for the first time since September, Governor Andrew Cuomo said on Friday. The rate is among the lowest in the nation. California was the only state with a seven-day rate below 1% in the latest data from the U.S Centers for Disease Control and Prevention.With more than a month of declining cases, hospitalizations and deaths, New York followed the CDC guidance and dropped its mask mandate this week for fully-vaccinated residents. On Friday, Cuomo said four counties -- Putnam, Yates, Hamilton and Essex -- all recorded zero new positive cases.California Details June Reopening (1:49 p.m. NY)California outlined its plans for full reopening, saying it will lift physical distancing and capacity limits on June 15, as well as drop quarantine requirements for people traveling into the state. The state has already said it will conform to CDC guidelines and lift mask mandates for those who are vaccinated on June 15.The state said it is recommending that large outdoor sporting events and concerts with more than 10,000 attendees and indoors events of more than 5,000 should require proof of a vaccine or a negative coronavirus test. “We feel like we are tracking well,” said California Health Secretary Mark Ghaly said during a call with reporters, citing high vaccination rates and plummeting hospitalizations.Heathrow to Separate Arrivals (1:12 p.m. NY)London Heathrow airport will devote a terminal to arrivals from countries with high levels of Covid-19 infection amid concern that having them share a building with other passengers risks spreading the virus.A dedicated facility for flights from so-called red list nations will open in Heathrow’s Terminal 3 from June 1, the airport said in a statement Friday. The hub had been in protracted talks over government funding for the plan, which it said will be very challenging logistically.Masks, Airflow Lower School Spread (1:04 p.m. NY)Mask use and improved ventilation were linked to a lower rate of Covid-19 cases in schools in a study that reinforced federal health guidance on how to keep the nation’s children safe.Among Georgia elementary schools, the frequency of Covid cases at the end of last year was 37% lower in schools that required teachers and staff to use masks, according to a Friday report by the U.S. Centers for Disease Control and Prevention. The incidence of Covid cases was 39% lower in schools that enhanced ventilation.McDonald’s Franchises Hesitate (12:58 p.m. NY)McDonald’s Corp. is planning for fully reopened dining rooms in the U.S. this summer, though it’s running into opposition from some franchisees who say they don’t have enough staff or interested diners to make it worthwhile.The company said that while it isn’t setting a hard deadline for franchises, it’s aiming for a rolling re-opening between now and the end of August, as Covid-19 rates and local regulations allow. Franchisees own about 95% of McDonald’s roughly 13,600 U.S. locations, and the company said it plans to be flexible and work with individual owners on alternate plans when necessary. Only about 15% of customer dining areas were open as of last month, McDonald’s said.NYC High Society Revives the Gala (11:53 a.m. NY)Just as Wall Street offices are filling up, New York City’s high-flying social life is returning, with cater-waiters, high heels and all the other wonderful and annoying things about being in person to support a cause.Of course, gatherings are outdoors and in smaller groups, but the masks are largely off, with safety protocols still in place.The Whitney Museum of American Art offered on-site rapid testing and crudite in individual containers. The Central Park Conservancy’s legendary hat lunch took place at several locations, on two days, after its first round-robin tennis tournament and before an in-person board meeting of the Women’s Committee at the Colony Club.G-20 Pledges Greater Cooperation (11:37 a.m. NY)Leaders of the Group of 20 nations called for greater global cooperation in the battle against the coronavirus pandemic and to prevent future outbreaks, a bid to turn the page on damaging tensions over how to tackle the disease.China pledged $3 billion in additional international aid over the next three years to support developing countries recover. U.S. Vice President Kamala Harris vowed to continue donating excess supplies of vaccines to countries in need, and France will share at least 30 million doses by the end of this year and contribute 500 million euros ($609 million) to the G-20’s Act-A initiative.U.S. Enlists Dating Apps (10:47 a.m. NY)The White House is enlisting popular dating apps to encourage Americans to brandish their vaccination status in exchange for a better shot at love.Nine of the largest dating apps in the U.S., including Bumble Inc.’s namesake and Match Group Inc.’s Tinder and Hinge, are adding badges that show a person’s vaccine status and offering perks for those who have already gotten their inoculations.The program is the federal government’s latest effort to boost vaccination rates in the U.S. and achieve President Joe Biden’s goal of getting 70% of adults at least one jab by July 4.EU Backs Vaccine Certificates (10:24 a.m. NY)Europeans and some foreign visitors can firm up their summer plans in the region, after European Union negotiators agreed to introduce vaccine certificates that will allow quarantine-free travel within Europe, handing the pummeled tourist industry an important chance to salvage the season.“Citizens will be able to travel safely. Businesses will be able to benefit from their spending, and transport will be able to operate,” European Justice Commissioner Didier Reynders said at a press conference Friday. “Today we are one step closer to making this happen.”France Set to Vaccinate Youth (9:32 a.m. NY)Youngsters in France between the age of 16 and 18 years old could start to be inoculated in June, vaccination czar Alain Fischer said in an interview on BFM TV on Friday.Earlier in the day, health authorities revised lower the total number of confirmed Covid cases since the start of the pandemic by 348,846 to 5.57 million, or about 6%. That’s due to an updated tracking system that now avoids double-counting of people who were tested twice in a very short period of time.The authorities said the the revisions don’t modify the broad trend of the epidemic, which has slowed after a recent partial lockdown and as vaccination ramps up.Ireland Monitoring Variant (9:18 a.m. NY)Ireland is “closely monitoring” the variant first identified in India, chief medical officer Tony Holohan said, amid the strain’s “possible higher transmissibility” and “early reports of its impact on vaccine effectiveness.”The nation has been easing restrictions steadily in recent weeks after a four month lockdown. There have been 72 cases of the B.1.617.2 variant in the country so far. Ireland is due to move to the next stage of easing restrictions next month, with bars and restaurants set to reopen.U.K. Confident on Lockdown End (8:41 a.m. NY)U.K. Prime Minister Boris Johnson said he remains confident that England’s lockdown will end on June 21 as planned, despite the rapid rise in cases of a variant first detected in India.Authorities have found 3,424 cases of the B1.617.2 variant in the U.K., up from 1,313 last week. Public Health England also announced late on Thursday it was investigating a separate variant with an “unusual mutation profile,” with 49 cases logged so far.That prompted fears that the U.K.’s reopening plans could be in doubt, but Johnson told broadcasters on Friday: “At the moment I can’t see anything that makes me think we’ll have to deviate from the roadmap.”Norway Eases Restrictions (8:11 a.m. NY)Norway removed limits on large gatherings and allowed restaurants and pubs to serve alcohol until later in the night after hospital admissions fell and the share of adults with at least a first vaccine dose reached 36%.Separately, Oslo municipality opened training centers, swimming pools, museums and cinemas.EU Adds Warning on Astra Shot (7:49 a.m. NY)The EU drug regulator warned healthcare professionals against giving AstraZeneca’s Vaxzevria to anyone who developed blood clots with low platelets after receiving the vaccine, according to a statement.Doctors should make checks within 3 weeks of vaccination and ensure that such patients receive specialist care.Moscow Lags Among European Cities (4:57 p.m. HK)Moscow has a lower vaccination rate than any other European city despite starting inoculations before others, Mayor Sergei Sobyanin said in a video posted on his blog Friday.Only 1.3 million people in the Russian capital, or 10% of its population, have received shots since the start of the campaign even though they are free and the government provides incentives, Sobyanin said.Earlier this week, former Prime Minister Dmitry Medvedev said it may be in the state’s interest to make vaccination mandatory. Nearly two-thirds of Russians aren’t ready to get inoculated, according to an April poll by the Levada Center.German Terraces Reopen (4:40 p.m. HK)Germany’s Health Minister Jens Spahn said the third virus wave “has been broken” amid accelerating vaccinations. The country’s seven-day incidence rate has been steadily falling and was at 67.3 per 100,000 people on Friday.Europe’s biggest economy is reopening outdoor dining and is easing restrictions on non-essential stores. Lothar Wieler, head of the Robert Koch Institute public-health agency, said the willingness of Germans to get vaccinated was very high. Still, he warned that infections could jump back up quickly if restrictions were relaxed too soon.Fungus Seen as Epidemic in India (1:53 p.m. HK)India reported 259,551 new infections Friday, continuing with the declining trend seen since a record high May 7. The total tally inched past 26 million, while deaths rose by more than 4,200 to 291,331, according the heath ministry.The country also is seeing a raft of secondary ailments, from dangerous inflammatory syndrome in children to rising cases of a deadly black fungal infection called mucormycosis, which India’s government has asked states to designate as an epidemic.More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. Business Bloomberg 210521 12h15m Oil Set for Worst Week Since April Amid Potential Iran Return (Bloomberg) -- Oil benchmarks headed for the largest weekly drop in at least a month as the market contends with a potential deal that could lift U.S. sanctions against Iranian crude.WTI futures in New York rose as much as 3.4% on Friday, tracking a broader market rally that buoyed prices during most of the trading day. Nonetheless, crude benchmarks couldn’t shake off the specter of millions of barrels a day of Iranian crude returning to the market, with Brent futures in London poised for their worst week since March. President Hassan Rouhani this week said world powers have accepted that major sanctions will be lifted as part of any nuclear deal.“There’s concern about the additional slug of supply potentially coming from Iran,” said John Kilduff, a partner at Again Capital LLC. “As the market was getting back on its feet, the prospect of more Iranian supply has been a momentum killer.”Some of the most optimistic analysts estimate Iran could return to pre-sanctions production of almost 4 million barrels a day in as little as three months. Iranian oil output has been rising this year and was about 2.4 million barrels a day last month, according to estimates compiled by Bloomberg.The key to whether the potential rise in Iranian output upsets global inventory drawdowns is how early the country re-enters the oil market, Michael Hsueh, an analyst at Deutsche Bank, said in a note. While the third-quarter deficit stands at only 1.2 million barrels-a-day, the market is more equipped to handle the additional output the following quarter when that shortfall is likely larger, he wrote.“The most pressing question will be how much an early Iranian ramp-up could hurt third-quarter balances,” Hsueh wrote. “The schedule of the ramp-up will be principally a question of politics and negotiation,” as Iran’s supply “could be brought into the market before an actual increase in production.”Oil this week was also swept up in a broader selloff in commodities and equities markets following concerns about inflation, speculation that the U.S. Federal Reserve will ease stimulus and China’s warning on measures to cool price spikes. The surge in the coronavirus continues to haunt some major consumers, with India’s largest refiner canceling a tender to buy Middle Eastern crude.The streak of losses this week tested the borders of oil’s current trading range, with the benchmarks finding technical support after dipping to their lowest since April. Brent has been trading within a roughly $5 band over the last month, pulling back from $70 a barrel but prompting a round of buying the closer it got to $65.With traders gearing up for even more supply, Brent’s nearest timespread had approached a bearish contango structure in an indication market tightness is easing.Prior to the implementation of sanctions, Iran was producing about 3.8 million barrels a day of crude. Only Iraq and Saudi Arabia’s output exceeds that amount within the Organization of Petroleum Exporting Countries. Still, Citigroup Inc. estimates overall global demand is strong enough to absorb any additional supply, including from Iran and that prices will continue to climb.Meanwhile, the prompt spread for Nymex gasoline futures moved into a marked contango on Friday, reflecting expectations that fuel markets may be oversupplied.“The gasoline spread threatening to switch to contango implies the gasoline market is oversupplied going into Memorial Day weekend, and that’s a negative price development,” said Bob Yawger, head of the futures division at Mizuho Securities. “The inflation situation has also started to spook some people, with prices at the pump getting a little lofty.”More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. Politics Reuters 210521 12h07m UPDATE 1-Swipe right! White House partners with dating apps to encourage vaccination The White House has partnered with popular online dating platforms such as Match, Tinder and Bumble to encourage more Americans to get vaccinated against the virus that has killed hundreds of thousands of people in the United States alone. With restrictions loosening across the country as coronavirus cases, hospitalizations and deaths decline, people are increasingly getting back to some semblance of normalcy in their lives, including dating. President Joe Biden's administration has set a goal of getting at least one vaccine shot into at least 70% of U.S. adults by the July 4 Independence Day holiday. Howell date : 210521 12h23m58s Politics Reuters 210521 12h07m UPDATE 1-Swipe right! White House partners with dating apps to encourage vaccination The White House has partnered with popular online dating platforms such as Match, Tinder and Bumble to encourage more Americans to get vaccinated against the virus that has killed hundreds of thousands of people in the United States alone. With restrictions loosening across the country as coronavirus cases, hospitalizations and deaths decline, people are increasingly getting back to some semblance of normalcy in their lives, including dating. President Joe Biden's administration has set a goal of getting at least one vaccine shot into at least 70% of U.S. adults by the July 4 Independence Day holiday. Business Yahoo Finance Video 210521 12h02m Dockwa CEO on boating boom: ’We caught lightning in a bottle’ Mike Melillo, Dockwa CEO & Co-Founder, joins Yahoo Finance Live to discuss growth in boating industry amid the pandemic and outlook on Dockwa’s future. Business Bloomberg 210521 11h48m U.S. Stocks Push Higher; Bitcoin Resumes Decline: Markets Wrap (Bloomberg) -- U.S. stocks resumed rising for a second day after investors were whipsawed in part by volatile trading in high risk assets such as Bitcoin amid lingering concerns about the outlook for inflation. Oil rose for the first time in four trading sessions.The S&P 500 edged higher after briefly turning negative when Philadelphia Fed President Patrick Harker said the central bank should speak about reducing bond buying sooner rather than later. The tech-heavy Nasdaq 100 was lower, while the Dow Jones Industrial Average gained as investors shifts from growth to value shares favorites such as Boeing. Bitcoin resumed its selloff Friday after China reiterated a warning that it intends to crack down on cryptocurrency mining as part of an effort to control financial risks.“For people to say Bitcoin shouldn’t influence equity prices on a short-term basis, that’s crazy,” said Tom Essaye, a former Merrill Lynch trader who founded “The Sevens Report” newsletter. “We live in a 24/7 market and at least in the short term, it’s run by algorithms and they all trade the same stuff. When you get a negative headline you’re going to see it all sell.”European shares climbed earlier on prospects of easing lockdowns and as services data signaled a recovery. Asian shares were mostly higher, although they slipped in China.Treasury yields were little changed and the dollar gained. Gold dropped from its highest level in more than four months.China’s has long expressed displeasure with the anonymity provided by Bitcoin and other crypto tokens, and warned earlier in the week that financial institutions weren’t allowed to accept it for payment. China is home to a large concentration of the world’s crypto miners, programmers who use massive computing power to verify transactions on the blockchain.The global economic revival, the risk of a significant pickup in inflation and Covid-19 flareups in some parts of the world continue to shape market moves. Stocks have been volatile this week, with speculative ardor cooling as minutes from the latest Fed meeting flagged the possibility of a debate at some point on scaling back stimulus measures. Still, better-than-forecast jobless claims data on Thursday buoyed sentiment.“Inflation fears and concerns over the Fed tightening monetary policy appear to have eased,” said Fiona Cincotta, senior financial markets analyst at City Index. “The impact from the FOMC minutes where the Fed indicated its readiness to start talking about tapering asset purchases appears to have been short-lived.”Elsewhere, Brent oil trimmed its biggest weekly decline since March. In Europe, Cartier jewelry maker Richemont gained after posting sales that topped estimates.Click here for the MLIV question of the day: How should markets price in an aging China?Here are some key events this week:Euro-area finance ministers and central bank chiefs hold an informal meeting. A larger group of EU finance ministers and central bank chiefs will meet May 22These are some of the main moves in markets:StocksThe S&P 500 rose 0.1% to the highest since May 14 as of 1:46 p.m. New York timeThe Nasdaq 100 fell 0.3%The Dow Jones Industrial Average rose 0.4%The MSCI World index rose 0.1% to the highest since May 10CurrenciesThe Bloomberg Dollar Spot Index rose 0.3%The euro slipped 0.4%, more than any closing loss since May 12The British pound fell 0.3% to $1.4150The Japanese yen fell 0.2% to 108.96 per dollarBondsThe yield on 10-year Treasuries was little changed at 1.62%Germany’s 10-year yield declined two basis points, more than any closing loss since May 4Britain’s 10-year yield was little changed at 0.83%CommoditiesWest Texas Intermediate crude rose 2.6% to $64 a barrelGold futures fell 0.2% to $1,880 an ounce, ending a six-day winning streakMore stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. World Reuters 210521 11h45m UPDATE 1-Brazil govt cuts 2021 budget deficit forecast to $35 bln, GDP growth boosts tax take Brazil's government on Friday issued a brighter fiscal outlook for this year, with the growing economy set to deliver higher revenues and lower spending than previously expected, narrowing the budget deficit to 2.2% of gross domestic product. Economy Ministry officials said an improving fiscal position is a key condition for a sustainable economic recovery, and repeated their view that government debt close to 90% of GDP makes fiscal consolidation an imperative rather than a choice. In its bimonthly spending and revenue report, the Economy Ministry lowered its forecast for this year's budget deficit excluding interest payments to 187.7 billion reais ($35 billion), or 2.2% of GDP. Business Reuters 210521 11h43m Analysis: Retail investors learn to love the crypto rollercoaster "Investing in crypto is not for the faint of heart," said Bettencourt, a 32-year-old photographer in Toronto who has owned bitcoin and ether over the last year-and-a-half to complement his stock portfolio. This week, cryptocurrencies were buffeted by factors ranging from critical tweets by Tesla Inc CEO Elon Musk to governmental controls in China. Leveraged positions in bitcoin and ether futures fell sharply last week, said Vanda Research, which tracks retail trades. Business Bloomberg 210521 11h40m Fed’s Tools Showing Signs of Stress Against the Cash Onslaught (Bloomberg) -- The deluge of cash in the short-end is threatening to create fissures in the Federal Reserve’s key rates corridor, increasing chances policy makers will be forced to adjust their tools to defend the floor.The effective fed funds rate remains at 0.06%, within the Fed’s 0% to 0.25% target range, anchored by the offering yield on the Fed’s facility for overnight reverse repurchase agreements. While the operation has been draining reserves from the system, there’s a risk that money-market funds -- the primary counterparties -- will eventually demand higher yields to handle the surge in inflows.“The Fed relies on money funds to provide a floor on interest rates as these entities can deposit cash via reverse repos directly with the central bank at zero, thereby draining reserves and helping to stop rates from going negative,” Mark Cabana, head of U.S. interest rate strategy at Bank of America, wrote in a note to clients. “The risk of cracking stems from money funds that would no longer remain willing to drain reserves for the Fed via ON RRP while being paid zero for this service.”The front-end of the U.S. fixed-income market has been awash in cash. In addition to central-bank asset purchases, the drawdown of the Treasury’s general account, monthly principal and interest investments from government sponsored enterprises and stimulus payments to state and local municipalities are adding to the glut. Regulatory constraints are also spurring banks to turn away deposits and direct that cash to money-market funds.As a result, Treasury bills out to November are yielding two basis points or less and the Secured Overnight Financing Rate has fixed at 0.01% since March. Demand at the Fed’s reverse repo facility surged to $369 billion on Friday, with 52 participants taking it to the highest in almost four years.While the Fed is equipped to handle the surge in demand at this facility, the problem for money funds is that the additional inflows that get deposited with the Fed dilute investment returns for existing shareholders, according to Cabana. The longer this continues, money markets will either need to close funds to new or existing investors or offer zero or negative return to investors, he said.The central bank still has room to adjust its so-called administered rates, the offering yield on the reverse repo facility, and interest on excess reserve rate, or IOER. In the minutes of the latest Fed gathering released Wednesday, the System Open Market Account manager noted that downward pressure on overnight rates in coming months could result in conditions that warrant consideration of a modest adjustment to administered rates.Bank of America strategists believe that it would be appropriate for the Fed to boost IOER by 5 basis points and the RRP offering rate by two or three basis points to bolster the floor as soon as the June FOMC meeting.(Adds results of Friday’s reverse repo operation in fifth 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. Howell date : 210521 11h53m21s World Reuters 210521 11h46m UPDATE 1-Brazil govt cuts 2021 budget deficit forecast to $35 bln, GDP growth boosts tax take Brazil's government on Friday issued a brighter fiscal outlook for this year, with the growing economy set to deliver higher revenues and lower spending than previously expected, narrowing the budget deficit to 2.2% of gross domestic product. Economy Ministry officials said an improving fiscal position is a key condition for a sustainable economic recovery, and repeated their view that government debt close to 90% of GDP makes fiscal consolidation an imperative rather than a choice. In its bimonthly spending and revenue report, the Economy Ministry lowered its forecast for this year's budget deficit excluding interest payments to 187.7 billion reais ($35 billion), or 2.2% of GDP. Business Reuters 210521 11h44m Analysis: Retail investors learn to love the crypto rollercoaster "Investing in crypto is not for the faint of heart," said Bettencourt, a 32-year-old photographer in Toronto who has owned bitcoin and ether over the last year-and-a-half to complement his stock portfolio. This week, cryptocurrencies were buffeted by factors ranging from critical tweets by Tesla Inc CEO Elon Musk to governmental controls in China. Leveraged positions in bitcoin and ether futures fell sharply last week, said Vanda Research, which tracks retail trades. Business Bloomberg 210521 11h41m Fed’s Tools Showing Signs of Stress Against the Cash Onslaught (Bloomberg) -- The deluge of cash in the short-end is threatening to create fissures in the Federal Reserve’s key rates corridor, increasing chances policy makers will be forced to adjust their tools to defend the floor.The effective fed funds rate remains at 0.06%, within the Fed’s 0% to 0.25% target range, anchored by the offering yield on the Fed’s facility for overnight reverse repurchase agreements. While the operation has been draining reserves from the system, there’s a risk that money-market funds -- the primary counterparties -- will eventually demand higher yields to handle the surge in inflows.“The Fed relies on money funds to provide a floor on interest rates as these entities can deposit cash via reverse repos directly with the central bank at zero, thereby draining reserves and helping to stop rates from going negative,” Mark Cabana, head of U.S. interest rate strategy at Bank of America, wrote in a note to clients. “The risk of cracking stems from money funds that would no longer remain willing to drain reserves for the Fed via ON RRP while being paid zero for this service.”The front-end of the U.S. fixed-income market has been awash in cash. In addition to central-bank asset purchases, the drawdown of the Treasury’s general account, monthly principal and interest investments from government sponsored enterprises and stimulus payments to state and local municipalities are adding to the glut. Regulatory constraints are also spurring banks to turn away deposits and direct that cash to money-market funds.As a result, Treasury bills out to November are yielding two basis points or less and the Secured Overnight Financing Rate has fixed at 0.01% since March. Demand at the Fed’s reverse repo facility surged to $369 billion on Friday, with 52 participants taking it to the highest in almost four years.While the Fed is equipped to handle the surge in demand at this facility, the problem for money funds is that the additional inflows that get deposited with the Fed dilute investment returns for existing shareholders, according to Cabana. The longer this continues, money markets will either need to close funds to new or existing investors or offer zero or negative return to investors, he said.The central bank still has room to adjust its so-called administered rates, the offering yield on the reverse repo facility, and interest on excess reserve rate, or IOER. In the minutes of the latest Fed gathering released Wednesday, the System Open Market Account manager noted that downward pressure on overnight rates in coming months could result in conditions that warrant consideration of a modest adjustment to administered rates.Bank of America strategists believe that it would be appropriate for the Fed to boost IOER by 5 basis points and the RRP offering rate by two or three basis points to bolster the floor as soon as the June FOMC meeting.(Adds results of Friday’s reverse repo operation in fifth 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. Business Bloomberg 210521 11h39m Alden Declares Victory in Its Monthslong Pursuit of Tribune (Bloomberg) -- Alden Global Capital declared victory in its monthslong effort to acquire Tribune Publishing Co. following a shareholder vote on the hedge fund’s bid for daily newspapers in Chicago, New York and other major cities.“The purchase of Tribune reaffirms our commitment to the newspaper industry and our focus on getting publications to a place where they can operate sustainably over the long term,” Alden President Heath Freeman said in a statement Friday.Newspapers have struggled to compete with online media and have seen advertising and subscribers shrink, leading to consolidation, job cuts and financial distress for publishers like Tribune. Alden, known for cutting costs in newsrooms, already owns the Boston Herald, Denver Post and San Jose Mercury News through its Digital First Media chain.The hedge fund holds a 31% stake in Tribune. It agreed in February to pay $17.25 a share, or almost $460 million, for the stock it didn’t already own.However, the deal required the approval of two-thirds of non-Alden shareholders. Tribune’s No. 2 shareholder, Los Angeles billionaire Patrick Soon-Shiong, abstained from voting his 24% stake.A spokeswoman for Soon-Shiong announced his decision Friday, saying the entrepreneur and his family always viewed Tribune as a passive investment and were more focused on their ownership of the Los Angeles Times and San Diego Union-Tribune. “They remain honored to be entrusted with these storied news organizations and continue working to secure their longevity,” the statement said.Silent ApprovalBut that abstention amounted to approval, according to the Chicago Tribune. Tribune Publishing officials said ballots registered to Soon-Shiong failed to check any box and were counted as a “yes” vote. They would have been counted as “no” votes if the abstain box had been checked.Tribune journalists fought the sale to Alden and tried to find alternative buyers for each of the company’s newspapers, including the namesake Chicago Tribune, the New York Daily News and other big-city publications.“While we are saddened by the turn of events, we know that our work over the past year -- to build allies in the community and to raise awareness about Alden -- is not in vain,” the journalists’ union said in a statement.In early April, Tribune agreed to talks with a rival investor group led by Stewart Bainum that was offering $18.50 a share. Tribune journalists supported Bainum’s bid, but the company ended their discussions after the group’s largest investor, Swiss billionaire Hansjoerg Wyss, dropped out.In a statement, Bainum said we was “deeply grateful to the journalists, readers, and civic-minded investors who teamed with us to help rescue, re-imagine and reinvigorate local journalism.”‘Better Model’“While our effort to acquire the Tribune and its local newspapers has fallen short, the journey reaffirmed my belief that a better model for local news is both possible and necessary,” Bainum said.He added that he’s “evaluating various options” to create “locally supported, not-for-profit newsrooms that place stakeholders above shareholders and journalistic integrity above all.”In February, when Tribune agreed to be acquired by Alden, Bainum was initially part of that purchase, with a side deal that allowed him to buy the Baltimore Sun and smaller newspapers in Maryland.But Bainum and Alden disagreed over how they would share services before the Maryland newspapers were fully independent of Tribune, and Bainum grew skeptical of Alden’s intentions in the deal, people familiar with the situation said in March. That led Bainum to pursue an acquisition of the whole company.Shares of Tribune fell less than 1% to $17.20 in New York.(Updates with ballot-counting procedure in seventh 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. Business Bloomberg 210521 11h35m Municipal Market Sales Slacken, Raising Supply Alarms (Bloomberg) -- State and local governments, helped by the arrival of federal stimulus money, are in no rush to issue debt as they wait for Congress to consider sending them infrastructure funding.Municipal bond issuers are anticipated to sell $7.3 billion in bonds over the next month, the lowest visible supply mark since late March and well below the average pace of about $10 billion this year, according to data compiled by Bloomberg. The 30-day supply projection usually accounts for about half of what is actually sold, since deals can be priced with less than a month’s notice.The drop in visible supply comes at a time of year where issuance has been historically strong. A combination of an economic rebound and the $350 billion American Rescue Plan, of which $105.3 billion has already been disbursed, has left the nation’s municipalities less dependent on borrowing, said Barclays Plc municipal strategist Mikhail Foux.“Going into the year a lot of people were thinking municipalities would have to issue bonds to fund deficits. The economic recovery was stronger than people believed,” Foux said. “Clearly we’re not going to have that much issuance over the course of the summer.”Issuers may also be waiting for federal infrastructure plans, which could serve as the catalyst for billions of dollars of debt sales. This week, Democrats in both the House and Senate advocated for leaning on the state and local government debt market in any infrastructure package and the revival of a technique to refinance debt that was rolled back during the Trump administration.For now, the lull in sales has yet to scare off participants in a muni market that has become historically expensive by some metrics. Money has continued to pour into the market unabated, with investors adding an additional $725 million to municipal-focused mutual funds, marking the 11th straight week of inflows.Those funds have been sitting on more cash than ever before, perhaps waiting for the right time to deploy. The 10 biggest mutual fund families all have higher cash holdings than 2016 levels, with some holding nearly 10% more, according to Barclays. If there’s rate volatility during the summer it could be an opportunity to put that money to work, Foux said.“If rates move higher, munis will outperform somewhat,” Foux said. “Everyone understands valuations and how rich they are and people don’t want to chase at current levels.”More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. Business Yahoo Finance 210521 11h30m This week in Bideonomics: Biden’s best revenue idea Providing more money to crack down on tax cheats should the simplest decision on the Congressional agenda. Business Reuters 210521 11h29m M&S profit seen crashing 90% in "lost year" of pandemic Britain's Marks & Spencer is set to report on Wednesday a 90% slump in full-year profit after the COVID-19 pandemic hammered its clothing sales. Analysts on average expect the 137-year old M&S, one of the best known names in British retail, to report a pretax profit before one-off items of 43 million pounds ($61 million) for its year to April 3, down from 403 million pounds in 2019-20. It reflects an expected 34% crash in UK clothing and homewares like-for-like sales, due to multiple lockdowns which shut the retailer's non-food space, slightly offset by an expected 1.2% rise in food sales. Howell date : 210521 11h22m44s Business Reuters 210521 11h12m BMO investment arm sold Microsoft over U.S. Army headset deal A responsible-investment arm of Canada’s Bank of Montreal sold roughly $275 million worth of Microsoft Corp shares because of the company's recent U.S. Army contract for augmented reality headsets, a bank spokesman said on Friday. BMO's responsible investment managers worried that the $22 billion Army contract Microsoft won in March moves the technology from a proof-of-concept phase to a battlefield-ready product outside its investment strategies' mandate, BMO representatives said. The contract "sits at odds with our central investment philosophy to avoid companies with damaging businesses practices, and we class bespoke military equipment as one component of our avoid criteria," Jamie Jenkins, head of the Responsible Global Equities team at BMO, said in an e-mailed statement. Business Yahoo Finance Video 210521 11h10m Bitcoin's damaged technicals, getting bullish on Roblox Irusha Peiris, O'Neil Global Advisors Portfolio Manager, joins Yahoo Finance's Jared Blikre to talk about what's moving markets, Bitcoin's damaged technicals and outlook for Roblox. Business Yahoo Finance 210521 11h05m Stock market news live updates: Stocks turn mixed, Wall Street struggles amid inflation fears Wall Street is trying to strike a balance between optimism over the recovery, and the encroachment of higher prices on the economy. Business Reuters 210521 11h02m Factbox-Five things to know about Epic's epic legal fight with Apple Apple Inc Chief Executive Tim Cook takes the witness stand on Friday to defend the lucrative App Store against "Fortnite" maker Epic Games' allegations that it is a monopoly that Apple illegally abuses. After years of complaints about Apple by app companies like music service Spotify Technology, Epic sued the most valuable U.S. public company for allegedly using its dominance to rake in bigger profits. Epic has waged a public relations and legal campaign, arguing that Apple acts anticompetitively by only allowing apps it approves on the world's 1 billion iPhones and by forcing developers to use Apple's in-app payment system, which charges commissions of up to 30% on sales. Business Bloomberg 210521 10h51m Alden Declares Victory in Its Monthslong Pursuit of Tribune (Bloomberg) -- Alden Global Capital declared victory in its monthslong effort to acquire Tribune Publishing Co. following a shareholder vote on the hedge fund’s bid for daily newspapers in Chicago, New York and other major cities.“The purchase of Tribune reaffirms our commitment to the newspaper industry and our focus on getting publications to a place where they can operate sustainably over the long term,” Alden President Heath Freeman said in a statement Friday.Newspapers have struggled to compete with online media and have seen advertising and subscribers shrink, leading to job cuts and financial distress for publishers like Tribune.Alden holds a 31% stake in Tribune. It agreed in February to pay $17.25 a share, or almost $460 million, for the stock it didn’t already own. The deal required the approval of two-thirds of non-Alden shareholders.The company’s No. 2 shareholder, Los Angeles billionaire Patrick Soon-Shiong, abstained from voting his 24% stake. Alden already owns the Boston Herald, Denver Post and San Jose Mercury News through its Digital First Media chain.A spokeswoman for Soon-Shiong announced his decision to abstain Friday, saying the entrepreneur and his family always viewed the Tribune investment as passive and were more focused on their ownership of the Los Angeles Times and San Diego Union-Tribune. “They remain honored to be entrusted with these storied news organizations and continue working to secure their longevity,” the statement said.Fought SaleTribune journalists fought the sale to Alden and tried to find alternative buyers for each of the company’s newspapers, including the namesake Chicago Tribune, the New York Daily News and other big-city publications.“While we are saddened by the turn of events, we know that our work over the past year -- to build allies in the community and to raise awareness about Alden -- is not in vain,” the journalists’ union said in a statement.In early April, Tribune agreed to talks with a rival investor group led by Stewart Bainum that was offering $18.50 a share. Tribune journalists supported Bainum’s bid, but the company ended their discussions after the group’s largest investor, Swiss billionaire Hansjoerg Wyss, dropped out.In a statement, Bainum said we was “deeply grateful to the journalists, readers, and civic-minded investors who teamed with us to help rescue, re-imagine and reinvigorate local journalism.”‘Better Model’“While our effort to acquire the Tribune and its local newspapers has fallen short, the journey reaffirmed my belief that a better model for local news is both possible and necessary,” Bainum said.He added that he’s “evaluating various options” to create “locally supported, not-for-profit newsrooms that place stakeholders above shareholders and journalistic integrity above all.”In February, when Tribune agreed to be acquired by Alden, Bainum was initially part of that purchase, with a side deal that allowed him to buy the Baltimore Sun and smaller newspapers in Maryland.But Bainum and Alden disagreed over how they would share services before the Maryland newspapers were fully independent of Tribune, and Bainum grew skeptical of Alden’s intentions in the deal, people familiar with the situation said in March. That led Bainum to pursue an acquisition of the whole company.Shares of Tribune fell less than 1% to $17.20 in New York.(Updates with statements from Freeman, Bainum starting in 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. Howell date : 210521 10h52m08s Business Reuters 210521 10h47m UPDATE 1-Kentucky securities regulator opens inquiry into Danimer Scientific Kentucky's state securities regulator is investigating plant-based plastics maker Danimer Scientific after a financial researcher told the office that the newly public company failed to make certain material disclosures. The Division of Securities of the Kentucky Department of Financial Institutions wrote in a letter dated May 17, and seen by Reuters, that it "has opened a formal inquiry into the matter". The letter was addressed to activist short-seller Ben Axler, whose firm Spruce Point Capital conducts forensic financial research. Business Bloomberg 210521 10h43m China Hammers Bitcoin Anew With Warning on Miner Crackdown (Bloomberg) -- Bitcoin resumed its selloff Friday after China reiterated a warning that it intends to crack down on cryptocurrency mining as part of an effort to control financial risks.The largest digital currency fell 6.6% to $37,451 as of 12:41 p.m. in New York. The statement Friday after a meeting of the Financial Stability and Development Committee provided the latest blow in a rough week for the cryptocurrency market, rattled by forced selling and a possible U.S. tax clampdown.China has long expressed displeasure with the anonymity provided by Bitcoin and other crypto tokens, and warned earlier in the week that financial institutions weren’t allowed to accept it for payment. The country is home to a large concentration of the world’s crypto miners who verify transactions and require massive amounts of commuting power, threatening the nation’s greenhouse gas emissions.“The new guidance issued from the regulatory agencies – they’re taking it more seriously, they want more enforcement,” Bobby Lee, founder and chief executive officer of crypto storage provider Ballet, said in an interview Friday. “But in terms of the rules, it’s the same in terms of what’s allowed and not allowed. There’s talk about going after miners. The question is, can they catch all the miners.”Friday’s selloff hit Bitcoin believers still fuming after onetime proponent Elon Musk did an about-face and criticized the token for its energy usage. Bitcoin is down about 38% since last Friday, though up from a Wednesday plunge to as low as $30,000. Other coins have slumped too -- Ether is down about 38% over the past seven sessions.The sour stretch for digital tokens started with Musk suspending acceptance of Bitcoin payments at Tesla Inc. and trading barbs with boosters of the cryptocurrency on Twitter. China’s central bank added to the downdraft Tuesday after carrying a statement warning against using virtual currencies. On Thursday, it emerged the U.S. may require crypto transactions of $10,000 or more to be reported to tax authorities.China moves this week ultimately highlight the country’s continued desire to seek control over the notoriously volatile asset class. It’s something China would rather see regulated by the People’s Bank of China, market watchers say.“It’s not really the mining issue that is the problem,” said Matt Maley, chief market strategist for Miller Tabak + Co. “They say they’re doing this as part of an effort to control risk taking in their markets, but it’s really a signal that China is not going to be a big market for cryptos unless it’s a PBOC-controlled one.”In the meantime, volatility in Bitcoin is likely to stay elevated. The selloff Friday has once again pushed Bitcoin below its average price over the past 200 days, which to some chartists and technical analysts suggests it could trend lower still to around $30,000, where it found support earlier this week.This week’s swings have led to huge liquidations by leveraged investors and damaged the narrative that cryptocurrencies will become more stable as the sector matures. Musk’s actions showed how just a few tweets can still upend the entire market. But even more so, the past few days has also reiterated the regulatory threat on the crypto market.“Investors are underestimating the regulatory risk of crypto as governments defend their lucrative monopolies over currency,” said Jay Hatfield, chief executive officer of Infrastructure Capital Advisors in New York. In the U.S., the possible imposition of transaction reporting requirements could be the “tip of the iceberg” of potential Treasury rules on virtual currencies, he said.As far as regulations in China go, it may be a game of wait and see.“You must always proceed cautiously with China -- never get too bullish or bearish,” said David Tawil, president of ProChain Capital. “We’ll have to see what the regulation brings. It’s one thing to say, it’s another to do.”(Updates prices, adds comments in fourth, eighth and last paragraphs)More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. Business Reuters 210521 10h43m Norwegian Air raises fresh capital, set to exit restructuring Norwegian Air has raised the 6 billion Norwegian crowns ($714.07 million) it targeted through the sale of perpetual bonds, new shares and a rights issue, the company said on Friday. Courts in Ireland and Norway had demanded the budget airline raise at least 4.5 billion crowns as part of a scheme to emerge from bankruptcy protection in the two countries on May 26. The private placement of new shares raised 3.73 billion crowns and was "significantly oversubscribed", the firm said in a statement. Business Bloomberg 210521 10h39m Gold Surrenders Gains as Dollar Rises on Record Factories Output (Bloomberg) -- Gold gave up early gains on Friday on a strengthening U.S. dollar, though not enough to upset the precious metal’s push toward its third straight weekly increase.Bullion prices retreated as the greenback rose after the release of data showing output at U.S. manufacturers and service providers advanced to a fresh record in May. Friday’s decline still sets up gold for a 1.8% gain for the week. Gold is trading near the highest level in more than four months amid rising inflation expectations, static Treasury yields and concerns of a resurgence of coronavirus cases in some countries. Holdings in exchange-traded funds backed by the precious metal have resumed an uptrend.“Higher U.S. inflation and lower government bonds yields have lifted gold back” to $1,870 an ounce, UBS AG analysts including Wayne Gordon wrote in a note.The IHS Markit flash composite index of purchasing manager at manufacturers and service providers surged to its highest in data going back to 2009, underscoring solid demand that’s contributing to added inflationary pressures.Meanwhile, traders mostly shrugged off concerns over Federal Reserve minutes Wednesday that showed some policy makers are open to talking about tapering bond purchases, focusing instead on the U.S. central bank’s accommodative stance. Meanwhile, applications for U.S. state unemployment insurance fell last week to a fresh pandemic low, signaling steady improvement in the job market as remaining business restrictions are lifted.Still, UBS analysts kept their end of year forecast for gold unchanged at $1,600 an ounce, as “we expect fading inflation surprises, higher U.S. government bond yields, rising vaccination pace to reduce uncertainty and the U.S. dollar to peak.”Spot gold fell 0.2% to $1,872.96 an ounce by 12:33 p.m. in New York, after earlier climbing as much as 0.7%. Prices climbed to $1,890.13 on Wednesday, the highest since Jan. 8. Silver, platinum and palladium edged lower. The Bloomberg Dollar Spot Index moved higher after dropping 0.4% on Thursday.Bullion may have also been supported after the extreme volatility in cryptocurrencies this week. Bitcoin, which is often touted as a replacement for gold due to its inherently limited supply, plunged this week.More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. Business Reuters 210521 10h33m UPDATE 1-Enbridge, Fluxys, EIG bid for Brazil's top natgas import pipeline, sources say A consortium of Canada's Enbridge, Belgium's Fluxys and U.S. private equity firm EIG Global Energy Partners has submitted a non-binding offer for Brazil's largest natural gas import pipeline, three people with knowledge of the matter told Reuters this week. Petroleo Brasileiro SA, as Brazil's state-run oil company is formally known, put its stakes in the 2,593-kilometer (1,611-mile) TBG pipeline, which imports gas from Bolivia, and the far southern TSB pipeline up for sale in December. If the consortium is ultimately successful, it would mark Enbridge's first foray into South America. Business Bloomberg 210521 10h33m U.S. Stocks Turn Mixed; Bitcoin Resumes Decline: Markets Wrap (Bloomberg) -- U.S. stocks were mixed as investors were whipsawed in part by volatile trading in high risk assets such as Bitcoin amid linger concerns about the outlook for inflation. Oil rose for the first time in four trading sessions.The S&P 500 erased all its gains for the session and briefly turned negative after Philadelphia Fed President Patrick Harker said the central bank should speak about reducing bond buying sooner rather than later. The tech-heavy Nasdaq 100 was lower, while the Dow Jones Industrial Average gained as investors shifts from growth to value shares. Bitcoin resumed its selloff Friday after China reiterated a warning that it intends to crack down on cryptocurrency mining as part of an effort to control financial risks.“For people to say Bitcoin shouldn’t influence equity prices on a short-term basis, that’s crazy,” said Tom Essaye, a former Merrill Lynch trader who founded “The Sevens Report” newsletter. “We live in a 24/7 market and at least in the short term, it’s run by algorithms and they all trade the same stuff. When you get a negative headline you’re going to see it all sell.”European shares climbed earlier on prospects of easing lockdowns and as services data signaled a recovery. Asian shares were mostly higher, although they slipped in China.Treasury yields were little changed and the dollar gained. Gold dropped from its highest level in more than four months.China’s has long expressed displeasure with the anonymity provided by Bitcoin and other crypto tokens, and warned earlier in the week that financial institutions weren’t allowed to accept it for payment. China is home to a large concentration of the world’s crypto miners, programmers who use massive computing power to verify transactions on the blockchain.The global economic revival, the risk of a significant pickup in inflation and Covid-19 flareups in some parts of the world continue to shape market moves. Stocks have been volatile this week, with speculative ardor cooling as minutes from the latest Fed meeting flagged the possibility of a debate at some point on scaling back stimulus measures. Still, better-than-forecast jobless claims data on Thursday buoyed sentiment.“Inflation fears and concerns over the Fed tightening monetary policy appear to have eased,” said Fiona Cincotta, senior financial markets analyst at City Index. “The impact from the FOMC minutes where the Fed indicated its readiness to start talking about tapering asset purchases appears to have been short-lived.”Elsewhere, Brent oil trimmed its biggest weekly decline since March. In Europe, Cartier jewelry maker Richemont gained after posting sales that topped estimates.Click here for the MLIV question of the day: How should markets price in an aging China?Here are some key events this week:Euro-area finance ministers and central bank chiefs hold an informal meeting. A larger group of EU finance ministers and central bank chiefs will meet May 22These are some of the main moves in markets: StocksThe S&P 500 was little changed as of 12:29 p.m. New York timeThe Nasdaq 100 fell 0.5%The Dow Jones Industrial Average rose 0.5%The MSCI World index rose 0.1% to the highest since May 10CurrenciesThe Bloomberg Dollar Spot Index rose 0.3%The euro slipped 0.4%, more than any closing loss since May 12The British pound fell 0.2% to $1.4157The Japanese yen fell 0.1% to 108.94 per dollarBondsThe yield on 10-year Treasuries was little changed at 1.62%Germany’s 10-year yield declined two basis points, more than any closing loss since May 4Britain’s 10-year yield was little changed at 0.83%CommoditiesWest Texas Intermediate crude rose 2.9%, the most since April 14Gold futures fell 0.4% to $1,877 an ounce, ending a six-day winning streakMore stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. Business Reuters 210521 10h28m UPDATE 1-Investors file class action against Credit Suisse over Archegos, Greensill dealings Investors have filed a lawsuit against Credit Suisse over the Swiss bank's dealings with Archegos and Greensill, a law firm organising the class action said on Friday. The Law Offices of Frank R. Cruz said that the lawsuit has been filed on behalf of investors who purchased or otherwise acquired Credit Suisse Group AG American Depositary Receipts between Oct. 29, 2020 and March 31, 2021, the law firm said in a statement. Credit Suisse did not immediately respond to a request for comment. Howell date : 210521 10h21m31s Politics Reuters 210521 10h10m White House partners with dating apps in hopes users swipe right on vaccinations The White House has partnered with popular online dating platforms such as Match, Tinder and Bumble to encourage more Americans to get vaccinated against the virus that has killed hundreds of thousands of people in the United States alone. The dating apps will be offering new features including badges that show people's vaccination status, free access to "premium content like boosts, super likes, and super swipes" for vaccinated individuals, and ways to filter potential hook-ups according to people's vaccination status, the White House said. President Joe Biden has set a goal to vaccinate 70% of U.S. adults with at least one COVID-19 shot by that date. Business Reuters 210521 10h09m US STOCKS-S&P 500, Dow extend recovery after strong U.S. business surveys The S&P 500 and the Dow rose on Friday, extending a recovery from the previous session, as strong U.S. factory and services activity surveys lifted the mood at the end of a volatile week of trading. Helping the Dow outperform was Boeing, which added about 3% as industry sources said the planemaker has drawn up preliminary plans for a fresh sprint in 737 MAX output to as many as 42 jets a month in fall 2022. IHS Markit's data showed U.S. business activity picked up in May amid strong domestic demand, but backlogs of uncompleted work are piling up as manufacturers struggle to find raw materials and labor. Business Yahoo Finance 210521 10h01m Stock market news live updates: Stocks gain as Wall Street tries to overcome inflation fears Wall Street is trying to strike a balance between optimism over the recovery, and the encroachment of higher prices on the economy. Business Bloomberg 210521 09h52m Oil Pares Weekly Drop While Market Weighs Prospect of Iran Deal (Bloomberg) -- Oil gained on Friday with a broader market advance but is on track for the largest weekly drop in over a month with a potential end to yearslong sanctions raising the prospect of more Iranian supply.Futures in New York rose as much as 3.4% on Friday, as U.S. equities strengthened for a second day and oil prices found technical support at their late-April lows. A measure of output of U.S. manufacturers and service providers posted a fresh record in May, pointing to the demand recovery underway in the world’s largest oil consumer.“Crude’s rallied back strongly” amid some dip-buying, said Bob Yawger, head of the futures division at Mizuho Securities. But prices remain under pressure into the weekend with the risk “we could get an announcement on the Iran deal at any given moment.”Still, Friday’s gains were not enough to reverse oil’s weekly slump amid optimism from Iran and some world powers that a revival of the 2015 nuclear accord is near. President Hassan Rouhani this week said world powers have accepted that major sanctions will be lifted, though details and finer points still needed to be ironed out.Some of the most optimistic analysts estimate the country could return to pre-sanctions production of almost 4 million barrels a day in as little as three months. Iranian oil output has been rising this year and was about 2.4 million barrels a day last month, according to estimates compiled by Bloomberg.“The market is a bit surprised at how quickly they could come to a deal,” said Warren Patterson, head of commodities strategy at ING Groep NV, in reference to the Iran negotiations. There’s potential for additional barrels “much quicker than many in the market were initially expecting.”Oil has also been swept up in a broader selloff in commodities and equities markets following concerns about inflation, speculation that the U.S. Federal Reserve will ease stimulus and China’s warning on measures to cool price spikes. The surge in the coronavirus continues to haunt some major consumers, with India’s largest refiner canceling a tender to buy Middle Eastern crude.With traders gearing up for even more supply, Brent’s nearest timespread had approached a bearish contango structure in an indication market tightness is easing.Prior to the implementation of sanctions, Iran was producing about 3.8 million barrels a day of crude. Only Iraq and Saudi Arabia’s output exceeds that amount within the Organization of Petroleum Exporting Countries. Still, Citigroup Inc. estimates overall global demand is strong enough to absorb any additional supply, including from Iran and that prices will continue to climb.Meanwhile, the prompt spread for Nymex gasoline futures moved into contango on Friday, reflecting expectations that fuel markets may be oversupplied.“The gasoline spread threatening to switch to contango implies the gasoline market is oversupplied going into Memorial Day weekend, and that’s a negative price development,” Yawger said. “The inflation situation has also started to spook some people, with prices at the pump getting a little lofty.”More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. World Bloomberg 210521 09h48m K.C. Southern Agrees to $30 Billion CN Rail Deal, Jilting CP (Bloomberg) -- Kansas City Southern agreed to a $30 billion merger with Canadian National Railway Co., scrapping a $25 billion deal with Canadian Pacific Railway Ltd. after it declined to boost its offer.Under the deal, Canadian National will pay $200 and 1.129 shares of its stock for each share of Kansas City Southern, the U.S. railroad said in a statement Friday. Kansas City Southern paid a $700 million breakup fee to Canadian Pacific, which will be reimbursed by Canadian National.Kansas City Southern last week deemed Canadian National’s bid superior and gave Canadian Pacific until the end of this week to sweeten its offer. Instead, Canadian Pacific said it wouldn’t enter a bidding war. It urged Kansas City Southern to drop its larger rival’s proposal because of heightened risk that the deal couldn’t win approval from U.S. regulators, which is still a looming question mark for Canadian National.The ultimate outcome will determine which gets to be the first railroad to operate from Canada, down through the U.S. and on to Mexico. Kansas City Southern gets about half its revenue from Mexico, which is poised to capture investment as manufacturers seek to use a renegotiated trilateral trade agreement to shorten overseas supply lines.“I am confident that together with KCS’s experienced and talented team, we will meaningfully connect the continent,” Canadian National Chief Executive Officer Jean-Jacques Ruest said in the statement.Kansas City Southern rose less than 1% to $295.40 at 11:27 a.m. in New York. The railroad’s shares had advanced 44% this year through Thursday. Canadian National declined 1.3% to C$126.58 in Toronto, while Canadian Pacific rose 1% to C$98.20.Now that Kansas City Southern has spurned Canadian Pacific, the focus shifts to the U.S. Surface Transportation Board, which will decide whether Canadian National can use a voting trust to complete the financial portion of the transaction. Closing the deal is contingent on getting such approval.The trust would allow Kansas City Southern stockholders to get paid for their shares while government approval to merge operations is pending -- a process that could take more than a year. The STB, which has final say on U.S. railroad mergers, has approved Canadian Pacific’s trust but hasn’t made a final decision on Canadian National’s.Canadian National’s proposal is “illusory,” Canadian Pacific CEO Keith Creel said in a Thursday letter to Kansas City Southern’s board, citing opposition from the U.S. Justice Department and a large shareholder. Creel also pointed to the STB’s decision to judge the Canadian National proposal under tougher antitrust standards.Canadian National has said it’s confident that its proposal will get regulatory approval.Kansas City Southern and Canadian Pacific had reached a merger agreement in March that Canadian National topped in April. The U.S. carrier earlier this month said it planned to accept Canadian National’s offer.‘Cautious Approach’Creel early Thursday said he “remained confident” that the STB wouldn’t approve Canadian National’s proposal for a voting trust, pointing to language in a recent ruling in which the board said it expected “to take a more cautious approach.”The STB has said it would ultimately judge Canadian National’s proposal under stricter merger rules than Canadian Pacific’s, explaining that the smaller railroad’s plan would “result in the fewest overlapping routes.” Canadian National has to prove that its deal would be in the public interest, while Canadian Pacific merely has to establish that its tie-up wouldn’t hurt competition.Kansas City Southern is the smallest of the seven large U.S. and Canadian railroads and one of the industry’s few substantial merger targets remaining.(Updates with deal details in 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. Howell date : 210521 09h50m55s Business Reuters 210521 09h39m Brazilian infrastructure firm CCR may scrap shareholders agreement -sources Shareholders in Brazilian infrastructure company CCR SA, which operates highways and subway lines in Brazil and airports throughout Latin America, are discussing dissolving the agreement under which they control the company, two sources with knowledge of the matter said. Such a move would follow unlisted construction conglomerate Andrade Gutierrez SA's planned sale of its 14.86% stake in CCR, Brazil's largest transportation infrastructure company, the sources added. Andrade Gutierrez, one of three groups that comprise CCR's core shareholder pact, said earlier this month it expected to sell its stake to asset manager IG4 Capital for 4.6 billion reais ($865 million). Politics Bloomberg 210521 09h37m Biden Fight Against Climate Financial Risk Can’t Be One-Joe Show (Bloomberg) -- Joe Biden’s goal of using regulation to limit the threat of climate change to the financial system can’t be accomplished with just the stroke of the presidential pen.Thursday’s executive order setting the plan in motion is a big step, but only the first in a long process that the administration and regulators are feeling their way into. The White House lacks the power to get what it wants simply through executive fiat, and must overcome resistance from fossil-fuel industries and those in Congress who are warning against regulatory overreach.The move represents an early element of the new administration’s efforts to reduce greenhouse-gas emissions by 50% by 2030, compared to 2005 levels, and make the U.S. a global leader on climate. Under Biden, the U.S. has rejoined the 2015 Paris Agreement on climate change after his predecessor, Donald Trump, withdrew from the accord.Biden’s order directs National Economic Council Director Brian Deese and National Climate Adviser Gina McCarthy to develop a strategy for assessing risks to the federal government’s own financial assets and liabilities. It also instructs the Department of Labor to report on the risks to pensions.Read more: Biden Ordering Climate Risk Strategy for Financial AssetsThe language is less forceful on the task of building out a regime of climate-related risk disclosures for financial and non-financial companies. In the order, Biden asks Treasury Secretary Janet Yellen to engage with regulatory agencies “to consider” a number of actions, including assessing the risk of climate change to U.S. financial stability.Hitting LimitThe word choice reflects the White House’s lack of direct authority over independent regulatory agencies, according to David Arkush, climate program director at Public Citizen.“This order goes up to the limit of what they can do,” Arkush said.Even with the White House encouraging the Financial Stability Oversight Council at arm’s reach, it can be a powerful tool, McCarthy said on a phone briefing with reporters. “The FSOC is independent,” McCarthy said, but “that does not mean we don’t intend to continue to pursue these issues.”Read more: Yellen Gets a Shot to Put Treasury Clout Into Climate FightThe Financial Stability Oversight Council, which Yellen heads, brings together the U.S. Federal Reserve, the Securities and Exchange Commission, the Commodity Futures Trading Commission and other agencies. The panel can encourage individual agencies and regulators to better address specific risks, such as climate change, and it’s a forum for coordinating that action.Still, individual regulations -- such as potential new requirements for climate risk disclosure that could be mandated by the SEC -- remain the purview of individual agencies represented on the council.Yet even in what it only encourages, the order also lacks specificity regarding the type of disclosure regime it wants to create. That, according to Giulia Christianson, director of sustainable private-sector finance at the World Resources Institute, reveals how early-stage the entire project is now.“There are a lot of plans for plans here,” said Christianson, who nonetheless welcomed the order as a first step. “The truth of the matter is that nobody has quite figured out how to meaningfully, fully assess the risks associated with climate change.”Progress ReportWith the action, the administration has raised expectations for significant steps in the near future, and Yellen pledged during the media call to deliver a report on progress made by the FSOC on coordinating regulators’ approach to addressing climate-related financial risks.“In many ways this sets the stage for robust action by the financial regulators to not only analyze and identify risks, but ultimately mitigate them by developing regulations,” said Gregg Gelzinis, associate director for economic policy at the Center for American Progress.Yet it was also clear even before the executive order the administration will face opposition on the regulatory front. Some lawmakers have asserted that financial regulatory agencies lack the legal authority to police the corporate and financial sectors based on climate risks.Senator Patrick Toomey, a Pennsylvania Republican, has been among the most outspoken critics on this point.“Today’s executive order demonstrates that the Biden administration is preparing to misuse financial regulation to further environmental policy objectives,” he said in a statement late Thursday. “Not only would such regulation exceed the scope of financial regulators’ respective missions and authorities, but it would also distort capital allocation, raise energy costs for consumers and slow economic growth.”Deese, however, said in the phone briefing that “we’re confident that the actions that are outlined, mandated and encouraged by this executive order are all those that we can effectively execute with existing authorities.”More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. Business Reuters 210521 09h35m UPDATE 1-Apple's Tim Cook takes stand to defend App Store at trial with 'Fortnite' maker Apple Inc Chief Executive Tim Cook on Friday took the witness stand to defend the App Store, a booming part of the iPhone maker's business that "Fortnite" online game maker Epic Games says is a monopoly that Apple abuses. Cook is expected to spend more than two hours making what are likely to be his most extensive public remarks on the App Store, which anchors Apple's $53.8 billion services business. World Bloomberg 210521 09h35m U.K. to Tell Homeowners to Ditch Gas Boilers in Green Plan (Bloomberg) -- British homeowners will have to replace their conventional gas boilers with potentially more expensive and greener alternatives under a radical plan being drawn up by Prime Minister Boris Johnson’s officials.When owner-occupiers sell their homes, or carry out significant renovations, they would need to make sure their heating systems comply with tougher new environmental standards, people familiar with the proposals said. That’s likely to involve replacing a gas boiler with a heat pump, which can typically cost more than 10,000 pounds ($14,154).Hidden Gauge of U.K.’s Zero-Carbon Drive Sits in Your CellarMinisters are preparing to launch a consultation on how to regulate the proposed new rules. Options could include the threat of financial penalties for non-compliance, according to one of the people who declined to be identified because the policy has not been finalized.Under separate regulations due to be put to a public consultation, boiler manufacturers would also be required to sell a minimum number of heat pumps alongside their gas boilers, one person said. That is likely to increase the price of standard gas boilers if companies add a surcharge to bills to cover their costs.The proposals are a core part of Johnson’s drive to cut greenhouse gas emissions to “net zero” by 2050, as he seeks to turn the U.K. into a world leader on tackling climate change.“Our heat and buildings strategy will be published in due course,” a spokesperson for the Department for Business, Energy and Industrial Strategy said. “While we do not comment on speculation around the content of forthcoming publications, we are clear that this and our wider efforts to tackle climate change will go with the grain of consumer behavior, and ensure measures are fair and affordable.”Greener HeatThe residential sector accounted for 20.8% of all U.K. carbon dioxide emissions in 2020, according to data published earlier this year, and making domestic heating greener is key to meeting the government’s climate goals.Ministers and officials have been working on a heat and buildings strategy for months and a draft has now been completed, although the policies have yet to be finally agreed by Johnson’s team.As it stands, the strategy gives government backing to accelerating the rollout of heat pumps in residential properties, the continued development of hydrogen as a clean alternative to methane gas, and support for other new technologies, the people said.Ultimately, consumers are likely to shoulder the financial burden of any policy changes and Johnson’s team knows how controversial that could be.Yet without drastic steps, the government is unlikely to meet its targets to decarbonize buildings and install 600,000 heat pumps a year by 2028. The ultimate aim for ministers is to do away with every gas boiler in the country in an effort to meet the U.K. net zero goal.This week the International Energy Agency recommended that no new fossil fuel boilers should be sold after 2025 to keep the world on track to meet 2050 climate targets. Hydrogen is one option for replacing methane gas in homes and boilers that can switch over to the cleaner fuel once it’s available are likely to help ease the transition.Voter BacklashWhile Johnson’s government has prioritized the green agenda as host of this year’s COP26 climate summit, some in his Conservative Party fear a revolt from voters over the added costs of making their homes comply with new standards.“The government will face a terrific backlash when homeowners realise they’re going to be forced to shell out many thousands of pounds for heating that’s less effective than what they currently enjoy, and if they don’t they will be unable to sell their homes,” said Steve Baker, a senior Conservative member of Parliament and trustee of the Global Warming Policy Foundation. “It’s going to cause outrage.”A draft of the heat and buildings strategy has been written but Johnson’s team is nervous about the political ramifications of the policies. One person familiar with the matter said the document, which was due to be released earlier this year.Under the proposals, developing new technology and using hydrogen will be options for greener heating systems in future. But there would need to be major investment in sustainable hydrogen production. The government is due to publish its hydrogen strategy soon.At the moment, ministers are not planning new grants or subsidies to help homeowners cover the costs, one of the people said.The U.K. energy industry has backed the need for an overhaul of regulation and wider market incentives and called on the government to provide clarity about the blueprint so companies can justify investment.“Heat decarbonisation will bring benefits to consumers and to the U.K. economy while also delivering local growth, for example through developing domestic supply chains and establishing skills and training hubs to deliver green jobs,” said Charles Wood, from trade association Energy UK. “It is therefore critical that whatever is included in this strategy, it is set out with a level of ambition that reaffirms the government’s commitment to green recovery, local leveling up, and its net zero target.”(Adds government comment in sixth 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. Business Yahoo Finance 210521 09h34m Stock market news live updates: Stocks gain as Wall Street tries to overcome inflation fears Wall Street is trying to strike a balance between optimism over the recovery, and the encroachment of higher prices on the economy. Business Bloomberg 210521 09h34m U.S. Stocks Shave Gains; Bitcoin Resumes Decline: Markets Wrap (Bloomberg) -- U.S. stocks dropped from the highs of the day as investors were whipsawed in part by volatile trading in high risk assets such as Bitcoin while they mulled recent economic readings and earnings reports. Oil rose for the first time in four trading sessions.Financials, energy and industrial shares led the S&P 500 higher for a second day. The tech-heavy Nasdaq 100 swung between gains and loses. Bitcoin resumed its selloff Friday after China reiterated a warning that it intends to crack down on cryptocurrency mining as part of an effort to control financial risks.“For people to say Bitcoin shouldn’t influence equity prices on a short-term basis, that’s crazy,” said Tom Essaye, a former Merrill Lynch trader who founded “The Sevens Report” newsletter. “We live in a 24/7 market and at least in the short term, it’s run by algorithms and they all trade the same stuff. When you get a negative headline you’re going to see it all sell.”European shares climbed earlier on prospects of easing lockdowns and as services data signaled a recovery. Asian shares were mostly higher, although they slipped in China.Treasury yields were little changed and the dollar gained. Gold dropped from its highest level in more than four months.China’s has long expressed displeasure with the anonymity provided by Bitcoin and other crypto tokens, and warned earlier in the week that financial institutions weren’t allowed to accept it for payment. China is home to a large concentration of the world’s crypto miners, programmers who use massive computing power to verify transactions on the blockchain.The global economic revival, the risk of a significant pickup in inflation and Covid-19 flareups in some parts of the world continue to shape market moves. Stocks have been volatile this week, with speculative ardor cooling as minutes from the latest Federal Reserve meeting flagged the possibility of a debate at some point on scaling back stimulus measures. Still, better-than-forecast jobless claims data on Thursday buoyed sentiment.“Inflation fears and concerns over the Fed tightening monetary policy appear to have eased,” said Fiona Cincotta, senior financial markets analyst at City Index. “The impact from the FOMC minutes where the Fed indicated its readiness to start talking about tapering asset purchases appears to have been short-lived.”Elsewhere, Brent oil trimmed its biggest weekly decline since March. In Europe, Cartier jewelry maker Richemont gained after posting sales that topped estimates.Click here for the MLIV question of the day: How should markets price in an aging China?Here are some key events this week:Euro-area finance ministers and central bank chiefs hold an informal meeting. A larger group of EU finance ministers and central bank chiefs will meet May 22These are some of the main moves in markets:StocksThe S&P 500 rose 0.3% to the highest since May 14 as of 11:29 a.m. New York timeThe Nasdaq 100 fell 0.3%The Dow Jones Industrial Average rose 0.6%, more than any closing gain since May 14The Stoxx Europe 600 rose 0.6% to the highest since May 10The MSCI World index rose 0.2% to the highest since May 10CurrenciesThe Bloomberg Dollar Spot Index rose 0.2%The euro fell 0.4% to $1.2185The British pound fell 0.2% to $1.4167The Japanese yen fell 0.1% to 108.94 per dollarBondsThe yield on 10-year Treasuries was little changed at 1.63%Germany’s 10-year yield declined two basis points, more than any closing loss since May 4Britain’s 10-year yield was little changed at 0.83%CommoditiesWest Texas Intermediate crude rose 3%, the most since April 14Gold futures fell 0.4% to $1,877 an ounce, ending a six-day winning streakMore stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. Howell date : 210521 09h20m18s Business Yahoo Finance 210521 09h17m Warren Buffett gave this investing tip to NFL defenseman Ndamukong Suh Super Bowl champion Ndamukong Suh has had a long-time friendship with legendary investor Warren Buffett. Here's an investing tip the Tampa Bay Buccaneers defenseman got from the Oracle of Omaha. Business Bloomberg 210521 09h15m New Gas Plants Threaten Carbon Hangover Long Past Biden Deadline (Bloomberg) -- The red-and-white flue stacks of the James M. Barry Electric Generating Station tower over the Mobile River, belching steam into the Alabama sky. The sprawling complex of coal and natural gas plants already spews more than 7.5 million metric tons of carbon dioxide-equivalent every year. Now it's about to get even bigger, with a seventh unit estimated to cost $635 million by the time it starts service in 2023.The new gas plant, and others like it, has a 40-year lifespan. That means it will still be there in 2035, the year that President Joe Biden has promised a zero-emission electricity sector, and in 2050, the deadline set by its owner, Southern Co., to reach carbon neutrality. It could even burn past 2060, more than a century after the first coal facility opened on the site — making the complex a testament to the endurance of fossil fuels.The decision by one of the biggest U.S. power companies to develop new fossil fuel assets is hard to square with a low-carbon future. But it’s not unusual. At least eight large utilities in the U.S. are building new gas plants right now, and another five are thinking about doing the same. That lays bare an uncomfortable truth about the sector’s commitment to fighting climate change: All those carbon-neutral pledges don’t necessarily mean quitting fossil fuels. “It seems like false advertising or greenwashing,” said Drew Shindell, a professor at Duke University who studies climate change. “We can’t be building gas infrastructure in the 2020s and 2030s. We need to be closing it down.”If all of the plants under consideration moved forward, they would release nearly 35 million metric tons of carbon dioxide into the atmosphere every year, according to calculations by BloombergNEF.(1)That’s about the same as the annual tailpipe emissions of every car in Florida.Power companies explain their commitment to gas by arguing that it’s both necessary for electric reliability and an important bridge to transition from coal to cleaner energy sources. California learned that the hard way. Over the past five years, the state retired enough gas capacity to power 6.8 million homes, and had to resort to rolling blackouts last summer when a heatwave taxed the electric grid just as solar waned at sunset.“Cloud cover comes and goes,” said Katharine Bond, vice president of public policy and state affairs at Dominion Energy Inc. “The winds slows. We've got to have something that we can ratchet up.” Dominion, which has a 2050 net-zero pledge and is required by Virginia to be 100% carbon free by 2045, is also considering building a new natural gas-fired plant.To offset pollution from the new facilities, Southern, Dominion and others say they plan to invest, eventually, in technology to capture and dispose of their emissions, or rework those facilities to burn cleaner fuels such as biogas or hydrogen made from renewable sources. But neither of those strategies has been implemented at scale, and both remain uneconomic at today’s prices. Notably, almost none of the companies have laid out a timeline or budget for upgrading or transitioning their gas plants. Two of them, DTE Energy Co. and Xcel Energy Inc., acknowledge that their carbon goals rely on technology that doesn’t currently exist.(2)Southern’s new Barry plant “will support us getting to 2050” because it’s designed for both carbon capture and mixing in hydrogen, said Chief Executive Officer Tom Fanning. Right now, those technologies don’t make sense financially but “when it’s in the money, we’ll absolutely add that in.” It’s a worldwide phenomenon. The Spanish utility giant Iberdrola just finished building over $1.6 billion worth of gas plants in Mexico, though it vows to be carbon-neutral by 2050. French multinational electric utility Engie SA plans to build four new gas-fired plants in Belgium by 2025. Europe’s biggest utility, Enel SpA, pledged zero emissions by 2050 and also plans to build new gas plants in its home market, Italy, where they can replace coal stations. All of those countries have set goals to neutralize greenhouse gas by 2050, meaning that many utilities appear to be setting themselves up as potential obstacles to international climate commitments. In the U.S. alone, about 36 gigawatts of new gas generation is coming online in the next five years, according to BNEF.That raises questions about the nation’s ability to meet its own climate targets. Fossil fuel-based electricity is responsible for 25% of U.S. greenhouse-gas emissions, second only to the transportation sector — so achieving a carbon-free economy hinges on overhauling the power sector. But of the nearly two dozen U.S. utilities aiming for net-zero carbon emissions by 2050, most aren’t on track to meet the goal, according to a September report by Deloitte LLP.The Biden administration has indicated it's skeptically eyeing new fossil fuel plants as part of its quest to decarbonize the power sector by 2035. "There are a couple hundred natural gas units that are in the pipeline, and we have to think about those," White House National Climate Advisor Gina McCarthy said Tuesday at a Columbia University energy summit.The electric industry is one of the easiest to clean up, thanks to the proliferation of inexpensive renewable energy. Not only has the cost of building wind, solar and batteries plunged in recent years, but those sources of energy have zero emissions and zero fuel cost: sunshine and air are free.“Renewables are now the most competitive energy sources,” said Jim Thomson, Deloitte’s U.S. leader of power, utilities and renewables.But cost isn’t always a prime concern for power companies. Most big utilities are regulated by state agencies that generally allow them to pass capital costs onto their customers. A natural gas plant built today will get funded by ratepayers and earn the company a return, even if it gets shuttered early or replaced by cleaner sources later. Buying power from a wind or solar developer isn’t always as attractive, while building renewables doesn’t always come naturally for utilities long accustomed to fossil fuels.“The thing that provides the most reliability and the lowest rates for customers is not the same thing that makes the utility money,” said Charles Teplin, a principal at RMI.Duke Energy Corp., the nation’s biggest electric utility by customer count, is weighing as many as 15 new gas units even as it commits to eliminating emissions by 2050. If the company moves forward with the buildout — which is just one of six proposals Duke has laid out — it would aim to meet its climate goals by retiring those plants after 25 years instead of 40.That prompted Duke customers Apple, Facebook and Google to complain to regulators that the new plants could become a “financial albatross” weighing on them for decades to come.Duke’s head of resource planning, Glen Snider, said gas is necessary to transition away from coal while greener technologies develop. “We don't want to be sitting still while we're waiting for these other technologies like batteries and small nuclear reactors,” he said, adding that new technologies also have risks that could add costs to ratepayer bills. U.S. utilities have so far announced plans for over $70 billion-worth of new gas-fired power plants through 2025 — almost all of which will cost more than equivalent clean energy, according to a 2019 RMI report. Those plants will be uneconomic to operate starting in about 2035 as the cost of carbon-free power keeps falling, the report said.“Utility leaders who have experience with natural gas plants are going to find that to be their go-to reliability plan,” said Miriam Wrobel, who advises utilities as part of her work for FTI Consulting's power and renewables practice.Many utilities say that their new gas plants could burn some hydrogen alongside natural gas to reduce emissions. The Los Angeles Department of Water and Power, the biggest municipal utility in the U.S., is building a plant in Utah that’s expected to run on 70% gas and 30% clean hydrogen when it starts up in 2025. The company says it would increase the proportion of hydrogen to 100% by 2045 to meet a California law that mandates zero-carbon electricity by that date.While so-called green hydrogen that's produced without emissions is expected to be cheaper than natural gas by 2050 in many parts of the world, that won’t be the case in the U.S. due to the nation’s abundance of the fossil fuel, according to BNEF. And, for now, there isn’t any pipeline infrastructure that can safely transport hydrogen from the few areas where it may be produced to the plants where it will be used. Meanwhile, systems that capture carbon before it’s released into the atmosphere continue to have high capital costs, despite decades of research and federal funding. Most existing U.S. projects are deployed by oil companies that sell the carbon for use in enhanced oil recovery. But barring big advances in industrial utilization of carbon — such as in the production of cement — emissions captured at a power plant would likely have little commercial value even as they generate storage and transportation costs.Another option for meeting climate goals that utilities are increasingly turning to is simply selling the infrastructure later on to companies that haven’t pledged to cut carbon. Oil companies including BP Plc have already started offloading their most-polluting assets in a bid to meet their ambitious climate targets. Drax, a U.K. power producer that recently won 15-year agreements to build three new gas plants, has since said it may sell those facilities to meet its goal of being carbon negative by 2030.“We call it resource shuffling,” said Leah Stokes, a professor at University of California at Santa Barbara who studies energy and climate change.But potential buyers are already drying up as investors grow increasingly wary of fossil-fuel assets. Iberdrola, for example, has struggled to find someone to take its gas plants in Spain. Globally, the shift toward clean energy could cost companies $100 billion in stranded gas assets, according to calculations by Global Energy Monitor. “There is a cost to customers,” said Scotiabank utility analyst Andrew Weisel. “Customers will need to double pay for the gas plant and the renewable technology that replaces them.”— With assistance by Dave Merrill, Nicholas Steckler, Rachel Morison and Jennifer Dlouhy (Adds comment from White House National Climate Advisor Gina McCarthy in 12th paragraph.)(1) Calculation uses an emissions capacity factor of 0.38.Carbon dioxide emissions per coal-fired power plant were calculated by dividing the CO2-equivalent output of all U.S. coal-fired power (1.19 billion tons) by the number of operating plants in 2018 (367). That equates to 3.25 million tons of CO2-equivalent emissions per coal facility. This is the same methodology used by the Environmental Protection Agency in itsGreenhouse Gas Equivalencies Calculator.(2) While both companies said their climate goals rely on technology that doesn't currently exist, DTE said in a statement that its new gas plant will help the company reduce carbon emissions by replacing a coal plant that generates 70% higher emissions per kilowatt hour. Xcel emphasized that gas will help the utility shut coal plants earlier and that new, greener technologies will be brought online as they become available.More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. Business Yahoo Finance 210521 09h13m Clover Health president: We 'seek talent wherever we can find and recruit it' Clover Health president Andrew Toy on hiring workers overseas. Business Bloomberg 210521 09h13m China Hammers Bitcoin Anew With Warning on Miner Crackdown (Bloomberg) -- Bitcoin resumed its selloff Friday after China reiterated a warning that it intends to crack down on cryptocurrency mining as part of an effort to control financial risks.The largest cryptocurrency fell 4.8% to $38,165 as of 11:11 a.m. in New York. The statement late Friday after a meeting of the Financial Stability and Development Committee was the latest blow in a rough week for the cryptocurrency market, rattled by forced selling and a possible U.S. tax clampdown.China has long expressed displeasure with the anonymity provided by Bitcoin and other crypto tokens, and warned earlier in the week that financial institutions weren’t allowed to accept it for payment. The country is home to a large concentration of the world’s crypto miners, or programmers who use massive computing power to verify transactions on the blockchain.Friday’s selloff hit Bitcoin believers still fuming after onetime proponent Elon Musk did an about-face and criticized the token for its energy usage. Bitcoin is down about 20% since last Friday, though up from a Wednesday plunge to $30,000. Other coins have slumped too -- Ether is down about 35% over the past seven sessions.The sour stretch for digital tokens started with Musk suspending acceptance of Bitcoin payments at Tesla Inc. and trading barbs with boosters of the cryptocurrency on Twitter. China’s central bank added to the downdraft Tuesday after carrying a statement warning against using virtual currencies. On Thursday, it emerged the U.S. may require crypto transactions of $10,000 or more to be reported to tax authorities.“Volatility of Bitcoin is to stay elevated,” said Ben Emons, managing director of global macro strategy at Medley Global Advisors in New York. Leverage that unwound in Wednesday’s tumble is already being replaced, he added in a note.Friday’s selloff once again pushed Bitcoin below its average price over the past 200 days, which to some chartists and technical analysts suggests it could trend lower still to around $30,000, where it found support earlier this week.Meanwhile, this week’s swings led to huge liquidations by leveraged investors and damaged the narrative that cryptocurrencies will become more stable as the sector matures. Musk’s actions showed how a few tweets can still upend the entire market.Still, over a longer time horizon tokens like Bitcoin and Ether are sitting on big gains. Over the past year, Bitcoin is up roughly 300% and Ether about 1,100%.Regulatory ThreatOne takeaway from the past few days is a reiteration of the regulatory threat to the crypto market.“Investors are underestimating the regulatory risk of crypto as governments defend their lucrative monopolies over currency,” said Jay Hatfield, chief executive officer of Infrastructure Capital Advisors in New York. The possible imposition of transaction reporting requirements could be the “tip of the iceberg” of potential Treasury rules on virtual currencies, he said.The Bloomberg Galaxy Crypto Index is poised for a weekly tumble of more than 30%, the most since the market turmoil that accompanied the onset of the pandemic last year.Despite downside risks and this week’s volatility -- which saw Bitcoin slide about 31% and jump roughly the same percentage on Wednesday -- crypto bulls are undaunted.They are sticking to the narrative that Bitcoin offers a modern-day portfolio hedge and store of value, akin to digital bullion, and that blockchain-based financial services -- so-called decentralized finance -- are expanding.“The institutional investors getting exposure to digital gold aren’t going away any time soon,” Paolo Ardoino, chief technology officer of crypto exchange Bitfinex, wrote in a note Thursday. “Decentralized finance will continue to grow. Developers will continue to build.”(Updates prices, adds 200-day moving average)More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. Business Reuters 210521 09h13m UPDATE 1-S.Korea seeks tax deductions, incentives for U.S. investment by firms-Blue House South Korea requested from the United States incentives such as tax deductions and infrastructure construction to ease the U.S. investment of Korean firms such as Samsung Electronics, its presidential office said on Friday. South Korean President Moon Jae-in, in Washington for a summit with U.S. President Joe Biden, told a gathering of U.S. Secretary of Commerce Gina Raimondo, her South Korean counterpart and CEOs of Qualcomm, Samsung and other leading businesspeople that both countries can benefit by strengthening supply chain cooperation. Biden has spurred on support for the U.S. chip industry amid a global chip shortage that has hit automakers and other industries. Business Yahoo Finance Video 210521 09h09m These are the top stocks for hedge funds: Goldman Sachs Brian Sozzi breaks down the new Goldman Sachs note that highlights the most popular stocks across hedge funds and what could be driving these investors. Business Reuters 210521 09h07m U.S. Congress to hold hearing on SPACs, ramping up scrutiny U.S. lawmakers are ramping up scrutiny of special purpose acquisition companies, or SPACs, with a hearing set for Monday as they consider legislation aimed at curbing liability protections for the industry. The U.S. Securities and Exchange Commission (SEC) has heightened its focus on SPACs in recent months through a series of public statements, new guidance and a Wall Street bank inquiry led by the agency's enforcement team. Republican Senator John Kennedy from Louisiana last month introduced a bill aimed at boosting transparency for investors in SPACs. Howell date : 210520 19h23m27s World Reuters 210520 19h00m PRESS DIGEST-Financial Times - May 21 UK consumer confidence bounced back more than expected in May and regained all the ground lost to the pandemic, reflecting the reopening of the economy and supporting expectations of a strong consumer-driven rebound in the second quarter. - Prince William has launched an unprecedented attack on the BBC over its handling of claims relating to the 1995 Panorama interview with his late mother, after the BBC apologised over the affair. World Bloomberg 210520 18h55m Malaysian Firms Oppose Lockdown; EU Certificates: Virus Update (Bloomberg) -- Malaysian industries urged the government to opt for tighter curbs rather than a full lockdown after a second straight day of record infections. Brunei suspended its “green lane” travel arrangement with Singapore amid a rise in Covid cases in the city-state.The European Union moved forward with a plan for EU-wide vaccination certificates, boosting chances of a summer tourism rebound. The number of U.K. cases of a worrying virus variant from India more than doubled for a second week, adding fresh doubt to plans to fully unlock the economy.New York will offer $20 scratch-off lottery tickets as a vaccine incentive, with a maximum payout of $5 million, while Maryland residents who get vaccinated can compete for $2 million in prize money. Unvaccinated Americans should keep wearing masks in public, said Anthony Fauci, President Joe Biden’s top health adviser.Key Developments:Global Tracker: Cases pass 165.1 million; deaths exceed 3.4 millionVaccine Tracker: More than 1.57 billion doses have been givenHow long do vaccine protections last? Science can’t say for sureSocial networks are exporting disinformation about vaccinesDelayed second dose turns into a win for vaccine-starved placesCan I be required to get vaccinated against Covid-19?: QuickTakeArgentina Tightens Lockdown as Cases Surge (8:13 a.m. HK)Argentina will impose a stricter lockdown for nine days as cases and deaths have shot up in recent weeks. President Alberto Fernandez announced that all non-essential, in-person activities are suspended from Saturday, including schools, sports, churches and social gatherings. People will be allowed to circulate from 6 a.m. to 6 p.m. in areas near their home. Only essential businesses may remain open.Then, from May 31 to June 11, the government plans to lift the lockdown and return to current restrictions, which still involve an 8 p.m. curfew and limited social activities.Argentina has reported more than 35,000 new cases each day this week, by far its worst stretch. About 73% of the country’s ICU beds are occupied.Brunei Suspends Green Lane With Singapore (8:03 a.m. HK)Brunei temporarily suspended its reciprocal “green lane” travel arrangement with Singapore until further notice from Thursday evening, according to a statement from the Prime Minister’s Office of Brunei.All travelers from Singapore will have to self-isolate at hotels for a period determined by Brunei’s health ministry, according to the statement dated Wednesday.Sputnik, Cansino Seek Indonesia Approval (8:01 a.m. HK)Indonesia will decide whether the Sputnik and Cansino vaccines will be used in its inoculation program or in the private program, Honesti Basyir, president director of Indonesia’s state vaccine maker Bio Farma, told a parliament panel Thursday.Bio Farma and the government are lobbying Saudi Arabian authorities to include Sinovac’s vaccine on its preferred list for the hajj pilgrimage. Bio Farma expects Sinovac to get emergency-use listing procedure from the World Health Organization in the first or second week of June.Malaysian Firms Want Tighter Curbs, Not Lockdown (7:59 a.m. HK)Malaysian industries are calling on the government to avoid a full lockdown and instead tighten virus protocols and accelerate the vaccine roll-out, as infections hit a record for a second straight day.The Malaysian Iron and Steel Federation asked the government to assure there would be “no total lockdown” to maintain business confidence, while proposing tighter curbs on public mobility and work-from-home practices. The Chemical Industries Council of Malaysia suggested reducing on-site workforces and increasing fines.The statements come as Malaysia’s Covid cases topped 6,000 for a second day Thursday. One-third of the new cases originated from Selangor, the nation’s most industrialized state, which said it was willing to accept a lockdown with hospitals low on ICU beds. Prime Minister Muhyiddin Yassin will chair a meeting Friday to discuss a nationwide Movement Control Order, Bernama reported.U.K. Plans ‘Pandemic Radar’ (6:49 a.m. HK)U.K. Prime Minister Boris Johnson announced plans Friday to create a “global pandemic radar” to identify and track new coronavirus variants and other emerging diseases. The WHO will work with the U.K. and partners, including the Wellcome Trust, to develop an international pathogen surveillance network before the end of 2021, according to an emailed statement. The announcement was made ahead of the Global Health Summit convened by G20 President Italy and the European Union.Africa Death Risk Higher for Very Ill (6:34 a.m. HK)Critically ill Covid patients in Africa face an outsize risk of death, mainly because health systems lack key resources like hospital beds and oxygen machines, according to a study.The death rate in the month after admission to intensive care is about 48% on the continent, compared with about 32% globally, according to a report published Thursday in The Lancet.S.F. Hospital Free of Covid Patients (5:45 p.m. NY)The Zuckerberg San Francisco General Hospital and Trauma Center had no Covid-19 patients for the first time since March 2020, according to Vivek Jain, an infectious disease doctor, who called the day a “huge milestone.”Covid-19 hospitalizations in San Francisco hit a peak of 259 on Jan. 11, with 62 people in intensive care. The public hospital is the major trauma hospital for the San Francisco area and serves many poor and elderly residents.U.K. Cases of India Strain Double (5:23 p.m. NY)The number of U.K. cases of a worrying coronavirus variant from India more than doubled for a second week as authorities also monitor a new mutation of the virus, adding fresh doubt to U.K. plans to fully unlock the economy.Health officials have now detected 3,424 cases of the B1.617.2 variant, Public Health England said Thursday in a statement. That’s up from 1,313 last week, and 520 a week earlier. They’re also investigating a mutation called VUI-21MAY-01, with 49 cases logged so far.Taiwan Seeks U.S. Vaccine Help (5:15 p.m. NY)U.S. help in securing vaccines could protect Taiwan’s semiconductor industry, according to James Lee, the head of Taipei’s cultural and economic office in New York.While Taiwan’s increasing cases haven’t had an impact yet, “if it lasts too long there could be logistical problems,” he said in an interview. “We have talked to the Biden administration and we work closely together. We expect them to help.”The argument may resonate in the U.S. amid concern in government and the business community about a shortage of chips used in everything from mobile phones to automobiles.Minnesota Offers Shots at Sports Events (5:09 p.m. NY)Minnesota Governor Tim Walz said sports fan will be able to get vaccinated when they attend upcoming baseball, basketball or hockey games, in partnership with professional teams.The vaccinations are part of the governor’s push to take shots to state residents instead of waiting for them to show up for them. “We are always looking for creative ways to get vaccines directly to Minnesotans. This partnership is just another example of that work,” the Democratic governor said in a statement.Texas Passes 50,000 Deaths (4:20 p.m. NY)Texas joined California and New York in surpassing 50,000 deaths related to Covid-19, though fatalities and new infections have been dropping.Texas added 52 deaths Thursday, state data showed. That compares with a daily peak of more than 600 in January, according to data compiled by Johns Hopkins University and Bloomberg.Morocco to Ease Nightly Curfew (3:30 p.m. NY)Morocco’s nightly curfew, which has been in force for much of the last 13 months, will be eased on Friday after new cases declined, the government said in a statement.Cafes, bars and restaurants will be allowed to say open an extra three hours until 11 p.m., according to a cabinet statement on the MAP newswire.EU Vaccine Certificate Plan Set for Summer (2:45 p.m. NY)With the summer tourism season at stake, European Union negotiators agreed to introduce mutually recognized vaccination certificates designed to let people travel within the EU without having to quarantine.European Parliament representatives and the 27 EU governments agreed on the plan, which requires a formal approval process before taking effect at the end of June. Proof of vaccination issued by non-European governments would be accepted.The EU will soon allow quarantine-free travel for vaccinated visitors from non-EU countries deemed safe, too.Maryland Offers $2 Million in Rewards (2:34 p.m.)Maryland, which previously offered residents free pizza as an incentive to get vaccinated, is now trying it with a $2 million lottery.Forty daily drawings with $40,000 in prize money and a grand prize of $400,000 on July 4 are planned, according to Kata Hall, Governor Larry Hogan’s deputy communications director.Brown Requires Staff Vaccinations (2:33 p.m. NY)Brown became the latest U.S. university to require faculty and staff to be vaccinated before classes resume this fall.Yale required last week that all faculty, staff and post-graduate students be vaccinated by Aug. 1. Providence, Rhode Island-based Brown on Thursday asked employees to receive their final vaccine dose by July 1. All Brown employees and students will have to verify their vaccination status by uploading their vaccination cards.The Chronicle of Higher Education has tracked 387 U.S. colleges and universities that require vaccines of at least some students or employees.BioNTech to Begin Production in Turkey (1:39 p.m. NY)BioNTech SE Chief Executive Officer Ugur Sahin said Thursday that the company plans to both produce and engage in research and development of vaccines in Turkey.BioNTech plans to increase the number of vaccines to be dispatched to Turkey to 120 million, with new shipments planned from July to September, Sahin said after attending a meeting of the Turkish pandemic board.Eiffel Tower to Reopen in July (1:20 p.m. NY)The Eiffel Tower, which has been shut to visitors since Nov. 30, will reopen July 16, its operator said in a statement. Tickets go on sale June 1.France will open vaccination to all adults from May 31 as it expects increased deliveries of vaccines next month, the government said in a statement.Astra Efficacy Reported High (12:27 p.m. NY)Two doses of AstraZeneca Plc’s Covid-19 vaccine provide about 85%-90% protection against symptomatic disease, according to statistics released Thursday by Public Health England.The health body estimated that 13,000 deaths have been prevented in England as of May 9 in people ages 60 and older. It also suggested that vaccinations have stopped almost 40,000 hospitalizations among those over 65, a crucial metric in a country where the National Health Service has struggled to contain Europe’s highest death toll from the pandemic.N.Y. Offers Lottery Tickets for Shots (12:05 p.m. NY)If you get vaccinated next week you could win up to $5 million, New York Governor Andrew Cuomo said Thursday.Vaccinations next week will come with free scratch-off lottery tickets worth $20, with the chance of both small prizes and a multimillion dollar payoff. “Vax and scratch,” Cuomo said at a press briefing in Buffalo. “The chances of winning something in this program are one in nine.”The tickets will be distributed at the 10 mass vaccination sites around the state, he said, with the program running May 24-28. Cuomo said the state will decide later whether to extend it.Fauci Cites Masking Confusion (11:36 a.m. NY)U.S. health leaders’ move to relax nationwide rules on masks for fully vaccinated people has spurred “understandable confusion” that must be cleared up, said Anthony Fauci, the government’s top infectious disease doctor.Fully vaccinated Americans can shed their masks in most places, including indoors and in large groups, the Centers for Disease Control and Prevention said May 13. The devil is in the details: It’s recommended that even fully vaccinated people wear masks on public transportation, in health-care and correctional facilities, and where required by state and local governments or businesses. And the unvaccinated should still mask up in public.“The problem is,” said Fauci, director of the National Institute of Allergy and Infectious Diseases, “people interpreted that as a signal that you don’t need masks anymore, which absolutely is not the case.”NYC Passes Vaccine Milestone (10:40 a.m. NY)New York City has passed 4 million first doses, with a total of 7,753,184 shots administered.“We have proven vaccinations work,” Mayor Bill de Blasio said Thursday. “Vaccinations are your ticket to freedom. We can have an extraordinary summer of joy, but we need to keep getting vaccinated.”New York is trying to entice more residents to get vaccinated, now targeting families. The mayor announced the city is opening a vaccination site at the Brooklyn Children’s Museum, offering free same-day admission and a family pass for a future visit. A site will also open at the Bronx Zoo, and one is in the works at the New York Aquarium on Coney Island.These come on top of the vaccination site at the American Museum of Natural History, below the suspended model of a blue whale.Brazil Reports India Variant (10:35 a.m. NY)Brazil confirmed its first cases of a variant first found in India. The infected people are six crew members of the Shandong da Zhi vessel, which came from South Africa and was chartered by Vale to deliver iron ore in Sao Luis in Maranhao state, UOL reported.Moderna Exports Shots From U.S. (10:31 a.m. NY)Moderna Inc. has begun exporting U.S.-produced Covid vaccines to other countries, a key step as U.S. vaccine supply begins to be shipped abroad.Moderna and Pfizer Inc. have been the backbone of the U.S. vaccination campaign, which is leveling off as domestic demand wanes. Their shipments of their coveted mRNA vaccines could be a turning point for nations that have sought to get any doses they can, including less effective ones.More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. Business Bloomberg 210520 18h48m Korea Early Exports Surge as Vaccines Spur Global Reopening (Bloomberg) -- South Korea’s early trade data show exports are set to surge in May as vaccinations allow a broader reopening of major economies.Exports gained 53.3% in the first 20 days of the month from a year earlier, the customs office reported Friday. Average daily shipments increased 59.1% in the period which had half a business day less than a year earlier. The readings were partly boosted by last year’s deep slump when the pandemic hobbled global trade.As the world seeks a return to normalcy, Korea is seeing a rise in demand for export products beyond its cash cow -- memory chips -- with sales also growing in cars, wireless devices, and machinery. The country’s recovery from the pandemic has been driven by exports, and President Moon Jae-in sees potential for more-than-4% economic growth in 2021.Korea’s 20-day trade figures offer early signals on the health of global commerce due to its timely release and as its manufacturers are positioned widely across supply chains. The latest report offers more evidence of increased economic activity in the U.S., the European Union and other key export markets.What Bloomberg Economics Says...“Stripping out base effects illustrates the strength in underlying demand. Compared with the same period in 2019, South Korea’s daily shipments were up 26% on average.”-- Justin Jimenez, Asia EconomistRead full report here. Exports to China, Korea’s largest overseas market, rose 25.2% between May 1-20 from a year earlier. Shipments to the U.S. jumped 87.3%, while those to the EU were up 78.1% and those to Japan increased 30.6%.“Demand appears favorable, with the global supply chain emerging from a pandemic hit,” said Kim Jin-myoung, an economist at Hanwha Investment & Securities Co. “There’s growing demand particularly from the U.S. in terms of both consumer and industrial goods.”Semiconductor shipments increased 26%. Exports of cars and oil products both more than doubled, while sales of wireless communications devices rose 64%.Korea’s overall imports rose 36% in the first 20 days of May.(Adds economist comment.)More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. World Reuters 210520 18h47m Ireland testing decryption key that could ease impact of health system cyberattack Ireland said on Thursday that experts were examining a decryption tool that had been posted online that might help unlock IT systems disabled by a massive ransomware attack on its health service operator. It did not comment on reports that the gang had threatened to make reams of patient data public next week. Ireland's Health Service Executive (HSE) shut down its networks last Friday after the attack that it blamed on an international cyber-crime gang. Business Reuters 210520 18h30m Japan emergency curbs push private-sector activity into contraction - PMIs Japan's factory activity expanded at a slower pace in May as growth in output and new orders eased, in a sign emergency curbs to stem a rise in coronavirus infections were hampering the country's economic recovery. The au Jibun Bank Flash Japan Manufacturing Purchasing Managers' Index (PMI) weakened to a seasonally adjusted 52.5 in May from a final 53.6 in April. Manufacturers saw input prices rising for a 12th month, while output prices were largely unchanged, causing the widest gap between the two in nearly a decade. Howell date : 210520 18h22m50s World Reuters 210520 18h05m QUOTES-World reacts to Israeli-Hamas truce “Gaza is an integral part of the future Palestinian state and no effort should be spared to bring about real national reconciliation that ends the division.” "We remain committed to work with the United Nations and other international stakeholders to provide rapid humanitarian assistance and to marshal international support for the people in Gaza and in the Gaza reconstruction efforts." "With utter happiness I have received a phone call from President Biden in which we have exchanged visions around reaching a formula that would calm the current conflict between Israel and Gaza, our vision was in tune about managing the conflict between all parties with diplomacy." Business Bloomberg 210520 18h03m Giant New Iron Ore Mine May Aid China’s Push to Cool Prices (Bloomberg) -- BHP Group’s start up of production at its $3.6 billion South Flank project in Australia -- combined with existing operations at the site -- will create the world’s biggest iron ore hub. It may also help temporarily cool a hot market.Iron ore futures are trading below $200 a ton after China’s cabinet called for tougher oversight of commodity markets and protection for consumers from soaring prices. While South Flank was a replacement mine, the announcement of a big mine coming on stream can add short-term to negative market talk, according to Peter O’Connor, mining analyst at Shaw & Partners Ltd.Commodities have tumbled as international markets are gripped by inflation fears and the authorities in Beijing continue to try to jawbone and manage prices lower. China’s cabinet expressed concerns Wednesday about the surge in prices for a second week in row, calling for more effort to curb “unreasonable” gains and prevent any impact on consumer prices. The meeting, chaired by Premier Li Keqiang, also called for a crackdown on speculation and hoarding.Against this backdrop, where steel margins were getting compressed in China and Li was trying to talk commodities down, “it weighs on that narrative as opposed to really weighing on the market,” O’Connor said. “But when you get these sort of extremes -- that subjective narrative can be a key driver.”South Flank has been built to replace the depleting Yandi mine -- and together with the existing Mining Area C -- will form a hub with annual production of 145 million tons a year. South Flank’s higher quality product will also lift the average iron ore grade across BHP’s Pilbara operations. In the short-term, there was potential for a squeeze higher in BHP’s ore exports as South Flank and Yandi operated in tandem, although the overall physical impact on the market was likely to be small, said O’Connor.The start of production of 80 million tons a year at South Flank, matching Yandi, comes at a time when top exporters Australia and Brazil have been challenged in meeting strong demand from Chinese steel mills. Pilbara shipments were down 6% in April compared to the year-ago period, while Brazil’s exports were flat, according to Bloomberg Intelligence. BHP’s current guidance is for annual production at the upper end of its range of 276-286 million tons.More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. Business Bloomberg 210520 17h52m Oil Steadies Near $62 After Slump With Iranian Supply Looming (Bloomberg) -- Oil was steady in early Asian trading after a three-day decline with the market bracing for the prospect of more Iranian crude flows as the nation inches closer to a revived nuclear deal.Futures in New York traded near $62 a barrel after sliding more than 6% over the past three sessions. Iran’s President Hassan Rouhani said world powers have accepted that major sanctions on his country will be lifted, though details and finer points still need to be ironed out. The potential for additional Iranian oil exports is being reflected in the prompt timespread for Brent crude, which is nearing a bearish structure in an indication market tightness is easing.Oil was also swept up in a broader commodities sell-off on Thursday following concerns about inflation, speculation that the U.S. Federal Reserve will ease stimulus and China’s warning on measures to cool price spikes.Oil is still up more than 25% this year as a robust recovery from the pandemic in the U.S., China and parts of Europe boost optimism in the outlook for fuel demand, even as the virus makes a comeback in Asia. While Iran is moving closer to boosting its crude exports, Citigroup Inc. predicts the market will be tight enough by the middle of the third quarter to support higher prices.The prompt timespread for Brent was 4 cents in backwardation -- a bullish market structure where near-dated contracts are more expensive than later-dated ones -- on Thursday. That compares with 42 cents at the start of May.Planned tax adjustments in China, meanwhile, are sparking a chain reaction that’s set to boost crude imports and raise refinery run rates, adding further support to the market recovery. The levy will be slapped on inbound flows of three products from mid-June that are often used to make low quality fuels.More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. World Reuters 210520 17h24m UPDATE 2-Israel-Hamas truce takes hold after 11 days of fighting An Egyptian-mediated truce between Israel and Hamas began on Friday and U.S. President Joe Biden pledged to salve the devastated Gaza Strip with humanitarian aid after the worst fighting in years. Palestinians, many of whom had spent 11 days huddled in fear of Israeli shelling, poured into Gaza's streets. Mosque loud-speakers feted "the victory of the resistance achieved over the Occupation (Israel) during the 'Sword of Jerusalem' battle". Business Reuters 210520 17h24m McDonald's is sued for $10 billion for alleged bias against Black-owned media McDonald's Corp was sued on Thursday for at least $10 billion by two companies owned by media entrepreneur Byron Allen, who accused the fast-food chain of racial discrimination for not advertising enough with Black-owned media outlets. The complaint filed in Los Angeles County Superior Court said McDonald's violated federal and state civil rights laws through its "racial animus and racial stereotyping" in allocating ad dollars. World Business Howell date : 210520 17h22m14s World Bloomberg 210520 16h55m N.Y. Offers Lottery Tickets; EU Backs Certificates: Virus Update (Bloomberg) -- New York state will offer $20 scratch-off lottery tickets as a vaccine incentive, with a maximum payout of $5 million. Maryland residents who get vaccinated can compete for $2 million in prize money.The European Union moved forward with a plan for EU-wide vaccination certificates, boosting chances of a summer tourism rebound. The number of U.K. cases of a worrying virus variant from India more than doubled for a second week, adding fresh doubt to plans to fully unlock the economy.Unvaccinated people in the U.S. should keep wearing masks in public, said Anthony Fauci, President Joe Biden’s top health adviser. There’s “understandable confusion” after health authorities relaxed rules on masks for fully vaccinated people, he said.Key Developments:Global Tracker: Cases pass 165.1 million; deaths exceed 3.4 millionVaccine Tracker: More than 1.57 billion doses have been givenHow long do vaccine protections last? Science can’t say for sureSocial networks are exporting disinformation about vaccinesDelayed second dose turns into a win for vaccine-starved placesCan I be required to get vaccinated against Covid-19?: QuickTakeU.K. Plans ‘Pandemic Radar’ (6:49 a.m. HK)U.K. Prime Minister Boris Johnson announced plans Friday to create a “global pandemic radar” to identify and track new coronavirus variants and other emerging diseases. The WHO will work with the U.K. and partners, including the Wellcome Trust, to develop an international pathogen surveillance network before the end of 2021, according to an emailed statement. The announcement was made ahead of the Global Health Summit convened by G20 President Italy and the European Union.Africa Death Risk Higher for Very Ill (6:34 a.m. HK) Critically ill Covid patients in Africa face an outsize risk of death, mainly because health systems lack key resources like hospital beds and oxygen machines, according to a study.The death rate in the month after admission to intensive care is about 48% on the continent, compared with about 32% globally, according to a report published Thursday in The Lancet.S.F. Hospital Free of Covid Patients (5:45 p.m. NY)The Zuckerberg San Francisco General Hospital and Trauma Center had no Covid-19 patients for the first time since March 2020, according to Vivek Jain, an infectious disease doctor, who called the day a “huge milestone.”Covid-19 hospitalizations in San Francisco hit a peak of 259 on Jan. 11, with 62 people in intensive care. The public hospital is the major trauma hospital for the San Francisco area and serves many poor and elderly residents.U.K. Cases of India Strain Double (5:23 p.m. NY)The number of U.K. cases of a worrying coronavirus variant from India more than doubled for a second week as authorities also monitor a new mutation of the virus, adding fresh doubt to U.K. plans to fully unlock the economy.Health officials have now detected 3,424 cases of the B1.617.2 variant, Public Health England said Thursday in a statement. That’s up from 1,313 last week, and 520 a week earlier. They’re also investigating a mutation called VUI-21MAY-01, with 49 cases logged so far.Taiwan Seeking U.S. Vaccine Help (5:15 p.m. NY)U.S. help in securing vaccines could protect Taiwan’s semiconductor industry, according to James Lee, the head of Taipei’s cultural and economic office in New York.While Taiwan’s increasing cases haven’t had an impact yet, “if it lasts too long there could be logistical problems,” he said in an interview. “We have talked to the Biden administration and we work closely together. We expect them to help.”The argument may resonate in the U.S. amid concern in government and the business community about a shortage of chips used in everything from mobile phones to automobiles.Minnesota Offers Shots at Sports Events (5:09 p.m. NY)Minnesota Governor Tim Walz announced Thursday that sports fan will be able to get vaccinated when they attend upcoming baseball, basketball or hockey games, in partnership with professional teams.The vaccinations are part of the governor’s push to take shots to state residents instead of waiting for them to show up for them. “We are always looking for creative ways to get vaccines directly to Minnesotans. This partnership is just another example of that work,” the Democratic governor said in a statement.Texas Passes 50,000 Deaths (4:20 p.m. NY)Texas joined California and New York in surpassing 50,000 deaths related to Covid-19, though fatalities and new infections have been dropping.Texas added 52 deaths on Thursday, state data showed. That compares with a daily peak of more than 600 in January, according to data compiled by Johns Hopkins University and Bloomberg.Morocco to Ease Nightly Curfew (3:30 p.m. NY)Morocco’s nightly curfew, which has been in force for much of the last 13 months, will be eased on Friday after new cases declined, the government said in a statement.Cafes, bars and restaurants will be allowed to say open an extra three hours until 11 p.m., according to a cabinet statement on the MAP newswire.EU Vaccine Certificate Plan Set for Summer (2:45 p.m. NY)With the summer tourism season at stake, European Union negotiators agreed to introduce mutually recognized vaccination certificates designed to let people travel within the EU without having to quarantine.European Parliament representatives and the 27 EU governments agreed on the plan, which requires a formal approval process before taking effect at the end of June. Proof of vaccination issued by non-European governments would be accepted.The EU will soon allow quarantine-free travel for vaccinated visitors from non-EU countries deemed safe, too.Maryland Offers $2 Million in Rewards (2:34 p.m.)Maryland, which previously offered residents free pizza as an incentive to get vaccinated, is now trying it with a $2 million lottery.Forty daily drawings with $40,000 in prize money and a grand prize of $400,000 on July 4 are planned, according to Kata Hall, Governor Larry Hogan’s deputy communications director.Brown Requires Staff Vaccinations (2:33 p.m. NY)Brown became the latest U.S. university to require faculty and staff to be vaccinated before classes resume this fall.Yale required last week that all faculty, staff and post-graduate students be vaccinated by Aug. 1. Providence, Rhode Island-based Brown on Thursday asked employees to receive their final vaccine dose by July 1. All Brown employees and students will have to verify their vaccination status by uploading their vaccination card.The Chronicle of Higher Education has tracked 387 U.S. colleges and universities that require vaccines of at least some students or employees.BioNTech to Begin Production in Turkey (1:39 p.m. NY)BioNTech SE Chief Executive Officer Ugur Sahin said Thursday that the company plans to both produce and engage in research and development of vaccines in Turkey.BioNTech plans to increase the number of vaccines to be dispatched to Turkey to 120 million, with new shipments planned from July to September, Sahin said during a televised press conference after attending a meeting of the Turkish pandemic board.Eiffel Tower to Reopen in July (1:20 p.m. NY)The Eiffel Tower, which has been shut to visitors since Nov. 30, will reopen on July 16, its operator said in a statement. Tickets go on sale on June 1.France will open vaccination to all adults from May 31 as it expects increased deliveries of vaccines next month, the government said in a statement.Astra Efficacy Reported High (12:27 p.m. NY)Two doses of AstraZeneca Plc’s Covid-19 vaccine provide about 85% to 90% protection against symptomatic disease, according to statistics released by Public Health England on Thursday.The health body estimated that 13,000 deaths have been prevented in England as of May 9 in people ages 60 and older. It also suggested that vaccinations have stopped almost 40,000 hospitalizations among the over 65s, a crucial metric in a country where the National Health Service has struggled to contain Europe’s highest death toll from the pandemic.N.Y. Offers Lottery Tickets for Shots (12:05 p.m. NY)If you get vaccinated next week you could win up to $5 million, New York Governor Andrew Cuomo said on Thursday.Vaccinations next week will come with free scratch-off lottery tickets worth $20, with the chance of both small prizes and a multimillion dollar payoff. “Vax and scratch,” Cuomo said at a press briefing in Buffalo. “The chances of winning something in this program are one in 9.”The tickets will be distributed at the 10 mass vaccination sites around the state, he said. The program will run May 24-28. Cuomo said the state will later decide whether to extend it.Fauci Cites Masking Confusion (11:36 a.m. NY)U.S. health leaders’ move to relax nationwide rules on masks for fully vaccinated people has spurred “understandable confusion” that must be cleared up, said Anthony Fauci, the government’s top infectious disease doctor.Fully vaccinated Americans can shed their masks in most places, including indoors and in large groups, the Centers for Disease Control and Prevention said May 13. The devil is in the details: Even fully vaccinated people are recommended to wear masks on forms of public transportation, in health-care and correctional facilities, and where required by state and local governments or businesses. And the unvaccinated should still mask up in public.“The problem is,” said Fauci, director of National Institute of Allergy and Infectious Diseases, “people interpreted that as a signal that you don’t need masks anymore, which absolutely is not the case.”NYC Passes Vaccine Milestone (10:40 a.m. NY)New York City has passed 4 million first doses, with a total of 7,753,184 shots administered.“We have proven vaccinations work,” Mayor Bill de Blasio said in a briefing Thursday. “Vaccinations are your ticket to freedom. We can have an extraordinary summer of joy, but we need to keep getting vaccinated.”New York is trying to entice more residents to get vaccinated, and is now targeting families. The mayor announced the city is opening a vaccination site at the Brooklyn Children’s Museum, with the extra lure of free same-day admission and a family pass for a future visit. A site is also set to open at the Bronx Zoo, and one is in the works at the New York Aquarium on Coney Island.These come on top of the vaccination site at the American Museum of Natural History, below the suspended model of a blue whale.Brazil Reports India Variant (10:35 a.m. NY)Brazil confirmed its first cases of a variant first found in India. The infected people are six crew members of the Shandong da Zhi vessel, which came from South Africa and was chartered by Vale to deliver iron ore in Sao Luis in Maranhao state, UOL reported.Moderna Exports Shots From U.S. (10:31 a.m. NY)Moderna Inc. has begun exporting U.S.-produced Covid-19 vaccines to other countries, a key step as U.S. vaccine supply begins to be shipped abroad.Moderna and Pfizer Inc. have been the backbone of the U.S. vaccination campaign, which is leveling off as domestic demand wanes. Their shipments of their coveted mRNA vaccines could be a turning point for nations that have sought to get any doses they can, including ones that have shown lower efficacy.More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. Business Bloomberg 210520 16h53m Asia Stocks to Track U.S. Rise on Economic Outlook: Markets Wrap (Bloomberg) -- Asian stocks look set to climb Friday after technology companies led a Wall Street rebound on economic optimism and easing concern about the possibility of reduced U.S. stimulus. The dollar held a decline.Futures were in the green in Japan, Australia and Hong Kong. Nearly all major industry groups in the S&P 500 climbed and gains in stocks like Apple Inc. and Tesla Inc. helped the Nasdaq 100 rally past its 50-day moving average. A drop in U.S. initial jobless claims put the focus back on the economic recovery and away from fears that price pressures imperil loose financial conditions. Contracts on the tech-heavy gauge and the S&P 500 fluctuated.Treasury yields retreated, and weaker-than-expected demand for an auction of 10-year inflation-protected debt suggested confidence in the Federal Reserve’s narrative that the recent acceleration in inflation is unlikely to be sustained. Oil slid and the pause in this year’s commodity boom continued.Gold is around the highest price in more than four months. Its claimed virtual rival, Bitcoin, steadied after a volatile cryptocurrency slump this week.The global economic revival, the risk of a significant pick up in inflation and Covid-19 flareups in some parts of the world continue to shape market moves. For now, growth optimism is overshadowing the latest Fed minutes, which flagged the possibility in upcoming policy meetings of a debate on scaling back the exceptional stimulus that’s bolstered a variety of assets.“While inflation has been the star of the show, keep in mind that the Fed’s mandate is twofold, with employment as the other side,” said Mike Loewengart, managing director of investment strategy at E*Trade Financial. “The jobless claims read shows once again that we’re heading in the right direction, but we’re a ways away from where we were pre-pandemic.”Oil is trading around the lowest in nearly a month. Traders were assessing the likelihood of a renewed nuclear deal with Iran and the potential removal of sanctions on the country’s crude exports.Elsewhere, President Joe Biden’s tax agenda was in the spotlight.The Treasury Department detailed the administration’s proposed measures to raise $700 billion in additional revenue over a decade through Internal Revenue Service enforcement, including a requirement for cryptocurrency transfers worth $10,000 or more to be reported to tax authorities. Separately, the U.S. also called for a global minimum corporate tax of at least 15%.Here are some key events this week:Data on existing U.S. home sales for April are due on May 21Euro-area finance ministers and central bank chiefs hold an informal meeting. A larger group of EU finance ministers and central bank chiefs will meet May 22These are some of the main moves in markets:StocksS&P 500 futures were little changed as of 7:44 a.m. in Tokyo. The index rose 1.1%.Nasdaq 100 contracts added 0.1%. The gauge rose 1.9%Nikkei 225 futures were up 0.2%S&P/ASX 200 contracts rose 0.4%Hang Seng futures advanced 0.4% earlierCurrenciesThe Bloomberg Dollar Spot Index was steady after falling 0.4%The euro was at $1.2228The British pound was at $1.4190The Japanese yen traded at 108.79 per dollarThe offshore yuan was at 6.4333 per dollarBondsThe yield on 10-year Treasuries declined five basis points to 1.63%CommoditiesWest Texas Intermediate crude trimmed a decline, rising 0.2% to $62.03 a barrelGold was at $1,876.73 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. Business Reuters 210520 16h46m UPDATE 1-Halliburton shareholders vote against executive compensation plan Halliburton Co's shareholders voted against the oilfield services provider's proposed executive compensation plan in an advisory motion, the company said on Thursday. Halliburton Chief Executive Officer Jeff Miller said the company was "disappointed by the shareholder advisory vote" and that it had led its peers in shareholder returns despite challenges stemming from the coronavirus pandemic and a supply and demand imbalance in oil markets. Halliburton did not provide vote tallies. Business Politics Business Business Howell date : 210520 16h21m37s Business Bloomberg 210520 15h57m Asia Stocks to Track U.S. Rise on Economic Outlook: Markets Wrap (Bloomberg) -- Asian stocks look set to climb Friday after technology companies led a Wall Street rebound on economic optimism and easing concern about a scale back of U.S. stimulus. The dollar fell.Futures were in the green in Japan, Australia and Hong Kong. Nearly all major industry groups in the S&P 500 climbed and gains in stocks like Apple Inc. and Tesla Inc. helped the Nasdaq 100 rally past its 50-day moving average. A drop in U.S. initial jobless claims put the focus back on the economic recovery and away from fears that price pressures imperil loose financial conditions.Treasury yields fell, and weaker-than-expected demand for an auction of 10-year inflation-protected debt suggested confidence in the Federal Reserve’s narrative that the recent acceleration in inflation is unlikely to be sustained. Oil slid and the pause in this year’s commodity boom continued.Gold is around the highest price in more than four months. Its claimed virtual rival, Bitcoin, steadied after a volatile cryptocurrency slump this week.The global economic revival, the risk of a significant pick up in inflation and Covid-19 flareups in some parts of the world continue to shape market moves. For now, growth optimism is overshadowing the latest Fed minutes, which flagged the possibility in upcoming policy meetings of a debate on scaling back the exceptional stimulus that’s bolstered a variety of assets.“While inflation has been the star of the show, keep in mind that the Fed’s mandate is twofold, with employment as the other side,” said Mike Loewengart, managing director of investment strategy at E*Trade Financial. “The jobless claims read shows once again that that we’re heading in the right direction, but we’re a ways away from where we were pre-pandemic.”The drop in oil took prices to the lowest in nearly a month. Traders were assessing the likelihood of a renewed nuclear deal with Iran and the potential removal of sanctions on the country’s crude exports.Elsewhere, President Joe Biden’s tax agenda was in the spotlight. The Treasury Department detailed the administration’s proposed measures to raise $700 billion in additional revenue over a decade through Internal Revenue Service enforcement, including a requirement for cryptocurrency transfers worth $10,000 or more to be reported to tax authorities.Here are some key events this week:Data on existing U.S. home sales for April are due on May 21Euro-area finance ministers and central bank chiefs hold an informal meeting. A larger group of EU finance ministers and central bank chiefs will meet May 22These are some of the main moves in markets:StocksThe S&P 500 rose 1.1%.The Nasdaq 100 rose 1.9%Nikkei 225 futures were up 0.2%S&P/ASX 200 contracts rose 0.4%Hang Seng futures advanced 0.4% earlierCurrenciesThe Bloomberg Dollar Spot Index fell 0.4%The euro was at $1.2228The British pound was at $1.4192The Japanese yen traded at 108.76 per dollarThe offshore yuan was at 6.4348 per dollarBondsThe yield on 10-year Treasuries declined five basis points to 1.63%CommoditiesWest Texas Intermediate crude fell 2.2% to $61.94 a barrelGold was at $1,877.09 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. Business Bloomberg 210520 15h51m Sinclair Sports Networks Start Formal Debt Talks with Creditors (Bloomberg) -- Creditors to Sinclair Broadcast Group Inc.’s troubled sports networks are signing non-disclosure agreements to prepare for negotiations on easing the unit’s $8 billion debt load, according to people with knowledge of the matter.The unit, Diamond Sports Group LLC, has invited creditors holding its secured and unsecured debt to begin formal talks, during which they would get private financial information and be restricted from trading securities, said the people, who asked not to be identified discussing confidential matters.The negotiations follow proposals submitted by both groups in recent months on how Diamond Sports could address its debt, such as through new financing provided by their existing lenders. Advisers to the creditor groups have been in private talks with the company, Bloomberg reported in March.A representative for Sinclair didn’t immediately respond to a request for comment, while its financial adviser Moelis & Co. declined to comment. Debtwire previously reported that secured creditors were planning to sign nondisclosure agreements.Sinclair remains “open for discussions with our stakeholders” and is in “active” talks with parties with respect to Diamond’s debt load “that will help us reach out goals,” Chief Executive Officer Chris Ripley said on the first-quarter earnings call earlier this month.The regional sports networks are trying to tame their debt load as part of a turnaround strategy following its acquisition by Sinclair that could see Diamond Sports expand into new betting deals. The $9.6 billion acquisition in 2019 was financed with costly high-yield debt that fell to distressed levels as the company struggled to sign and maintain deals with carriers and dealt with the pandemic’s disruptions to live sports.“Diamond has sufficient cash and revolver availability to fund its debt services” going forward, Sinclair Chief Financial Officer Lucy Rutishauser said on this month’s call. Sinclair’s total debt was $12.5 billion as of March 31, which includes $8.1 billion of debt at Diamond Sports.Financial and legal advisers for the creditor groups signed non-disclosure agreements in March, Bloomberg reported. The unsecured creditors are getting advice from PJT Partners Inc. and the law firm of Stroock & Stroock & Lavan, while its secured creditors are working with Evercore Inc. and the law firm of Gibson, Dunn & Crutcher.Representatives for the various advisers didn’t immediately respond to a request for comment or declined to comment.Unsecured creditors previously proposed putting at least $500 million of new money into the company and exchanging their bonds for new debt with tighter covenants and equal in priority for repayment to existing secured debt, Bloomberg previously reported.Certain secured lenders had proposed making a new term loan of more than $500 million that Sinclair would use to refinance existing unsecured notes, Bloomberg reported. The loan would have been placed in an outside subsidiary and get first priority on certain assets. Proposals also suggested adding protections to existing loan documents.More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. Politics Reuters 210520 15h30m Biden directs U.S. agencies to assess, mitigate risks of climate change President Joe Biden on Thursday directed federal agencies to assess and mitigate the increasing and significant risks that climate change poses to individual, businesses, the federal government and the U.S. financial system, the White House said. Biden issued an executive order that requires development of a comprehensive government-wide climate risk strategy within 120 days, as well as an annual assessment of climate-related fiscal risks, the White House said. Health Reuters 210520 15h23m UPDATE 1-FDA recommends not using syringes from Chinese firm after safety issues with vaccine injections The U.S. Food and Drug Administration on Thursday asked healthcare providers to stop using certain syringes and needles manufactured by Chinese medical device maker Guangdong Haiou Medical Apparatus Co (HAIOU). At least one pharmacist that Reuters spoke to said the syringes had been shipped for use with the Pfizer Inc /BioNTech SE COVID-19 vaccine. An FDA spokesperson said the devices stopped being shipped in COVID-19 vaccination kits as of March 22. World Howell date : 210520 15h21m00s Business Bloomberg 210520 15h01m Billionaire Founder of China Property Giant Dies of Illness (Bloomberg) -- The billionaire founder of KE Holdings Inc. has died of an unspecified illness, a shocking development for a Chinese property company that pulled off one of the strongest U.S. market debuts of 2020.Zuo Hui, who turned the company known as Beike from a nationwide chain of real estate offices into China’s largest platform for housing transactions and services, died May 20 after an “unexpected worsening of illness,” his company said in a statement without elaborating. KE Holdings’ board will announce follow-up arrangements within two weeks, it added.Zuo, 50, has been the driving force behind the company’s success, headlining the bell-ringing ceremony when it went public and holding 81.1% of voting shares under a dual-class voting structure as of end-February, according to its annual report. The company’s American depositary receipts fell 0.8% to $49.85 in New York on Thursday, paring an earlier decline of almost 10%.Zuo was backed by some of Asia’s most influential startup investors, including Hillhouse Capital Group and Tencent Holdings Ltd., and ranks among SoftBank Group Corp.’s most successful bets. KE Holdings almost doubled on its August U.S. debut, vaulting Zuo into the ranks of the world’s richest entrepreneurs with a fortune in excess of $20 billion at one point, according to the Bloomberg Billionaires’ Index.Its shares were up 151% from their New York debut through Wednesday’s close, conferring on the late chairman a net worth of $14.8 billion.In an interview with CCTV aired in April, he downplayed the significance of the IPO and the riches it bestowed.“Why should I feel excited?” he said, dressed in jeans, a dark blue vest and black sneakers. “This makes no difference to me.”Read more: Founder of China Property Site With No Profits Worth $20 BillionBorn in 1971 in Shaanxi province, Zuo graduated with a bachelor’s degree from Beijing University of Chemical Technology in 1992 before getting into sales and establishing an insurance business, where he made his first fortune, according to local media. He then founded Beijing Lianjia Real Estate Brokerage Co. in 2001, when China’s property market was still relatively young, and started Ziroom in 2011 to offer long-term apartment rentals. In 2018, he incorporated KE and launched Beike, becoming one of the country’s most celebrated entrepreneurs.Beike uses artificial intelligence and big data to improve its service and provide market insights, according to its website. As of June, the company boasted 226 million homes on its platform and 39 million monthly active users on mobiles. That’s swelled to more than 48 million mobile monthly active users and half a million agents.The platform also draws in others by allowing decorators, renovators and financial institutions to connect with buyers, creating an ecosystem of property and related offerings.(Updates with closing share price 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. Business Reuters 210520 14h57m US STOCKS-Wall Street ends to snap 3-day losing streak as technology stocks rise higher Wall Street's main indexes rebounded on Thursday after a three-day slide, buoyed by gains in technology stocks as the smallest weekly jobless claims since the start of a pandemic-driven recession lifted the mood. "There's a big risk, regulatory risk, to crypto that's not fully appreciated," said Jay Hatfield, founder and chief executive of Infrastructure Capital Management in New York. Wall Street's main indexes fell on Wednesday, extending losses since, after minutes from the Federal Reserve's meeting last month indicated some policymakers thought it would be appropriate to discuss easing of crisis-era support, such as tapering bond purchases, in upcoming meetings if the strong economic momentum is sustained. World Bloomberg 210520 14h53m N.Y. Offers Lottery Tickets; EU Backs Certificates: Virus Update (Bloomberg) -- New York state will offer $20 scratch-off lottery tickets as a vaccine incentive, with a maximum payout of $5 million. Maryland residents who get vaccinated can compete for $2 million in prize money. The European Union moved forward with a plan for EU-wide vaccination certificates, boosting chances of a summer tourism rebound. Moderna Inc. has begun exporting U.S.-produced Covid-19 vaccines to other countries as domestic demand wanes.Unvaccinated people in the U.S. should keep wearing masks in public, said Anthony Fauci, President Joe Biden’s top health adviser. There’s “understandable confusion” after health authorities relaxed rules on masks for fully vaccinated people, he said.Key Developments:Global Tracker: Cases pass 165 million; deaths exceed 3.4 millionVaccine Tracker: More than 1.54 billion doses have been givenHow long do vaccine protections last? Science can’t say for sureSocial networks are exporting disinformation about vaccinesVaccine holdouts in Africa reject world’s route to recoveryCascade of rare complications deepen India’s Covid miseryTexas Passes 50,000 Deaths (4:20 p.m. NY)Texas joined California and New York in surpassing 50,000 deaths related to Covid-19, though fatalities and new infections have been dropping. Texas added 52 deaths on Thursday, state data showed. That compares with a daily peak of more than 600 in January, according to data compiled by Johns Hopkins University and Bloomberg.Morocco to Ease Nightly Curfew (3:30 p.m. NY)Morocco’s nightly curfew, which has been in force for much of the last 13 months, will be eased on Friday after new cases declined, the government said in a statement.Cafes, bars and restaurants will be allowed to say open an extra three hours until 11 p.m., according to a cabinet statement on the MAP newswire.Africa Seeks Workaround for Shortages (3:20 p.m. NY)African countries should use more than one brand of Covid-19 shot to complete people’s vaccine cycles if needed, according to the African Union’s health agency. Several countries are facing shortages.“In the event that there is absolute clarity that people will not get their second doses, it’s better to opt for that, than not get their full immunization,” John Nkengasong, director of the Africa Centres for Disease Control and Prevention, said in an online briefing Thursday. EU Vaccine Certificate Plan Set for Summer (2:45 p.m. NY)With the summer tourism season at stake, European Union negotiators agreed to introduce mutually recognized vaccination certificates designed to let people travel within the EU without having to quarantine.European Parliament representatives and the 27 EU governments agreed on the plan, which requires a formal approval process before taking effect at the end of June. Proof of vaccination issued by non-European governments would be accepted.The EU will soon allow quarantine-free travel for vaccinated visitors from non-EU countries deemed safe, too.Maryland Offers $2 Million in Rewards (2:34 p.m.)Maryland, which previously offered residents free pizza as an incentive to get vaccinated, is now trying it with a $2 million lottery.Forty daily drawings with $40,000 in prize money and a grand prize of $400,000 on July 4 are planned, according to Kata Hall, Governor Larry Hogan’s deputy communications director.Brown University Requires Staff Vaccinations (2:33 p.m. NY)Brown became the latest U.S. university to require faculty and staff to be vaccinated before classes resume this fall.Yale required last week that all faculty, staff and post-graduate students be vaccinated by Aug. 1. Providence, Rhode Island-based Brown on Thursday asked employees to receive their final vaccine dose by July 1. All Brown employees and students will have toverify their vaccination status by uploading their vaccination card.The Chronicle of Higher Education has tracked 387 U.S. colleges and universities that require vaccines of at least some students or employees.BioNTech to Begin Production in Turkey (1:39 p.m. NY)BioNTech SE Chief Executive Officer Ugur Sahin said Thursday that the company plans to both produce and engage in research and development of vaccines in Turkey.BioNTech plans to increase the number of vaccines to be dispatched to Turkey to 120 million, with new shipments planned from July to September, Sahin said during a televised press conference after attending a meeting of the Turkish pandemic board.Eiffel Tower to Reopen in July (1:20 p.m. NY)The Eiffel Tower, which has been shut to visitors since Nov. 30, will reopen on July 16, its operator said in a statement. Tickets go on sale on June 1.France will open vaccination to all adults from May 31 as it expects increased deliveries of vaccines next month, the government said in a statement.Astra Efficacy Reported High (12:27 p.m. NY)Two doses of AstraZeneca Plc’s Covid-19 vaccine provide about 85% to 90% protection against symptomatic disease, according to statistics released by Public Health England on Thursday.The health body estimated that 13,000 deaths have been prevented in England as of May 9 in people ages 60 and older. It also suggested that vaccinations have stopped almost 40,000 hospitalizations among the over 65s, a crucial metric in a country where the National Health Service has struggled to contain Europe’s highest death toll from the pandemic.N.Y. Offers Lottery Tickets for Shots (12:05 p.m. NY)If you get vaccinated next week you could win up to $5 million, New York Governor Andrew Cuomo said on Thursday.Vaccinations next week will come with free scratch-off lottery tickets worth $20, with the chance of both small prizes and a multimillion dollar payoff. “Vax and scratch,” Cuomo said at a press briefing in Buffalo. “The chances of winning something in this program are one in 9.”The tickets will be distributed at the 10 mass vaccination sites around the state, he said. The program will run May 24-28. Cuomo said the state will later decide whether to extend it.New York will also start vaccine centers at airports, including John F. Kennedy International Airport and LaGuardia Airport.Fauci Cites Masking Confusion (11:36 a.m. NY)U.S. health leaders’ move to relax nationwide rules on masks for fully vaccinated people has spurred “understandable confusion” that must be cleared up, said Anthony Fauci, the government’s top infectious disease doctor.Fully vaccinated Americans can shed their masks in most places, including indoors and in large groups, the Centers for Disease Control and Prevention said May 13. The devil is in the details: Even fully vaccinated people are recommended to wear masks on forms of public transportation, in health-care and correctional facilities, and where required by state and local governments or businesses. And the unvaccinated should still mask up in public places as before.“The problem is,” said Fauci, director of National Institute of Allergy and Infectious Diseases, “people interpreted that as a signal that you don’t need masks anymore, which absolutely is not the case.”NYC Passes Vaccine Milestone (10:40 a.m. NY)New York City has passed 4 million first doses, with a total of 7,753,184 shots administered.“We have proven vaccinations work,” Mayor Bill de Blasio said in a briefing Thursday. “Vaccinations are your ticket to freedom. We can have an extraordinary summer of joy, but we need to keep getting vaccinated.”New York is trying to entice more residents to get vaccinated, and is now targeting families. The mayor announced the city is opening a vaccination site at the Brooklyn Children’s Museum, with the extra lure of free same-day admission and a family pass for a future visit. A site is also set to open at the Bronx Zoo, and one is in the works at the New York Aquarium on Coney Island.These come on top of the vaccination site at the American Museum of Natural History, below the suspended model of a blue whale.Brazil Reports India Variant (10:35 a.m. NY)Brazil confirmed its first cases of a variant first found in India. The infected people are six crew members of the Shandong da Zhi vessel, which came from South Africa and was chartered by Vale to deliver iron ore in Sao Luis in Maranhao state, UOL reported.Moderna Exports Shots From U.S. (10:31 a.m. NY)Moderna Inc. has begun exporting U.S.-produced Covid-19 vaccines to other countries, a key step as U.S. vaccine supply begins to be shipped abroad.Moderna and Pfizer Inc. have been the backbone of the U.S. vaccination campaign, which is leveling off as domestic demand wanes. Their shipments of their coveted mRNA vaccines could be a turning point for nations that have sought to get any doses they can, including ones that have shown lower efficacy.G-7 to Discuss Vaccine Certificates (5:38 p.m. HK)Group of Seven nations will discuss ways to recognize Covid-19 vaccination certifications internationally, according to a person familiar with the matter.The group of major economies aims to support the creation of a global framework for mutual recognition of documents showing proof of inoculation, said the person, who asked not to be identified. Such an endorsement, if it leads to the creation of concrete measures, would ease the revival of global travel as more people get the coronavirus jab. It would be especially welcomed by the airline and tourism industries, among the hardest hit by the pandemic.More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. World Bloomberg 210520 14h45m Fujimori Looks to Speed Up Projects to Tap Copper Riches in Peru (Bloomberg) -- Peruvian presidential candidate Keiko Fujimori would support energy and mining projects if elected, a campaign adviser said, drawing a stark contrast with her left-wing rival.Her government wouldn’t seek to renegotiate contracts at the Camisea gas deposit and would push for the go-ahead of the Tia Maria and Conga mining projects that have encountered community resistance, adviser Rafael Belaunde said in an interview. Fujimori would focus on resolving community issues to attract more investment, he said.The goal is to help “set new projects in motion, with a fundamental component being that the populations -- particularly the populations around the areas where these activities occur -- feel the benefits,” Belaunde said.Fujimori, who is out on bail for alleged corruption and is the daughter of a jailed former president, will face Pedro Castillo in a June 6 runoff vote that will pit two opposing visions for the way out of pandemic-induced economic stress. The election result, which a weekend poll showed is too close to call, will reverberate across metal markets given the world is relying on Peru to help meet growing copper demand in a clean-energy transition. The nation is the second-biggest supplier of the wiring metal and a major producer of zinc, silver and gold.Castillo, who defied polls to win the first-round vote, has vowed to nationalize Camisea and raise taxes on mines, as well as seek a referendum on drafting a new constitution. His plans have spooked investors, though he’s likely to face stiff opposition from a divided legislature and has distanced himself from his party’s most hard-line proposals.Direct PaymentsA Fujimori administration would channel 40% of the mining canon into payments to communities, Belaunde said. The money would be sent directly to people’s bank accounts and could amount to about 2,000 soles ($540) a year depending on the region.It would also seek to improve the time-line and communication surrounding the consultation process before mineral exploration and exploitation, Belaunde said. The nation’s current environmental regulations are already rigorous enough, the adviser said.“Peru is a country with a massive mining potential,” Belaunde said. “Taking care of the social conflict problem and improving the efficiency of how mining income is spent I think will solve the bulk of the issues.”Fujimori’s government would also support oil exploration projects in the Amazon to leverage the Talara refinery in the country’s north, Belaunde said. Indigenous communities oppose such initiatives on concerns of environmental harm.“The government should promote putting its oil potential to work,” as long as there’s community support and the environment is protected, he said.More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. Business Bloomberg 210520 14h36m Apple Accuses Microsoft of Using Epic in Legal Attack (Bloomberg) -- Apple Inc. injected a new level of intrigue in its bitter court fight with Epic Games Inc., suggesting the Fortnite maker was acting as a stalking horse for Microsoft Corp. and withholding evidence.The iPhone maker made the accusations Wednesday night in a filing asking a judge to make an adverse credibility finding against Lori Wright, an Xbox executive who testified in the trial on behalf of Epic. That would mean the judge could ignore her testimony.Apple asked for such a ruling earlier, but upped its accusations in the new filing. “A reasonable observer might wonder whether Epic is serving as a stalking horse for Microsoft,” Apple said. “Microsoft shielded itself from meaningful discovery in this litigation by not appearing as a party or sending a corporate representative to testify.”Read more: Apple, Microsoft Rivalry Heats Up Again Amid Trial FisticuffsEpic sued Apple claiming its cut of revenue from businesses selling wares at its App Store is too high and that its rules are unfair and anticompetitive.But Apple claims Epic used as many witnesses associated with Microsoft at trial as it did its own -- five each -- including Susan Athey from Stanford University.Athey, who testified for Epic May 11, was grilled by Apple’s attorneys on her consulting work for Microsoft. She said she refrained from reviewing confidential documents in the case submitted by Apple due to that work.“Apple is trying to distract from legitimate concerns from many companies across the industry about its App Store policies and practices, including its refusal to allow game streaming in the Apple App Store,” Microsoft said in a statement Thursday. “Epic speaks and acts for itself, and Microsoft and many other companies have raised concerns through our own voices, including directly with Apple itself.”In an an earlier filing Microsoft said it complied fully with its legal obligations.Wright testified involuntarily and she was forthright and thoughtful in her trial testimony, Microsoft said.“That Apple does not like Ms. Wright’s testimony is clear,” Microsoft said. “That Apple has no basis to challenge the substance of her testimony is equally clear.”In the Wednesday filing, Apple also complained that Microsoft withheld internal communications and held discussions with Epic about its decision to circumvent Apple’s payment rules. “Such internal communications are particularly relevant in light of Microsoft’s relationship with at least five Epic witnesses and the potential that Microsoft is using Epic as a proxy plaintiff in litigation that it refuses to prosecute in its own name,” Apple wrote.In responses to Apple’s motions about Wright, Epic said Apple was “not surprised” at the trial and Wright’s testimony was “predictable.” The company also said Apple had ample opportunity to gather discovery during a deposition of Wright and that Wright provided documents to Apple and Epic in the same “paltry” manner.The case is Epic Games Inc. v. Apple Inc., 20-cv-5640, U.S. District Court, Northern District of California (Oakland).(Updates with Microsoft statement)More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. Business Yahoo Finance 210520 14h31m Deutsche Bank: 'The value of bitcoin is entirely based on wishful thinking' Analysts are piling on bitcoin as it plunges, noting headwinds and issues that might stunt its increased adoption. Howell date : 210520 14h20m23s Business Bloomberg 210520 14h12m Gold Rises Near Four-Month High as Bond Yields, Dollar Decline (Bloomberg) -- Gold advanced, holding near the highest price in more than four months as bond yields gave up early gains and the dollar extended its slump.The yield on 10-year Treasuries declined, and the dollar headed for its fifth loss in six sessions. Falling rates boosts demand for non-interest bearing bullion, while a soft dollar makes the precious metal for attractive for investors holding other currencies.Gold was on its way to a sixth straight gain, with buyers shrugging off concerns over Federal Reserve minutes Wednesday that showed some policy makers open to talking about tapering bond purchases. Rising inflation expectations and the Fed’s pledge to keep rates low for longer have revived interest in gold, highlighted by rebounding holdings in exchange-traded funds backed by the metal.“The inflation issue is top of mind for gold and silver, given both metals’ reputation as inflation hedges, with the debate being primarily about the question of whether rising prices are transitory or permanent,” Carsten Menke, an analyst at Julius Baer Group Ltd., wrote in a note. “We firmly believe they will be transitory.”Spot gold rose 0.3% to $1,874.70 an ounce by3:04 p.m. in New York. Prices reached $1,890.13 on Wednesday, the highest since early January, but pared gains after the release of the Fed minutes. Futures for June delivery on the Comex rose less than 0.1% to settle at $1,881.90.Silver was steady and platinum advanced on Thursday, while palladium fell. The Bloomberg Dollar Spot Index was down 0.4%.A U.S. report showed applications for state unemployment insurance in the U.S. fell last week to a fresh pandemic low, rekindling optimism in the economic recovery.”After the claims data, we saw gold pushing back above $1,880 behind rallying stocks, lower yields and a softer dollar,” said Tai Wong, head of metals derivatives at BMO Capital Markets.The extreme price swings in cryptocurrencies on Wednesday may also have helped support bullion. Bitcoin has been seen by some investors and analysts as a replacement for gold, particularly during the metal’s rocky start to the year.“It appears as though the recent weakness in Bitcoin is seeing some investors shifting to gold,” said Warren Patterson, head of commodities strategy at ING Groep NV in Singapore.More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. Business Yahoo Finance 210520 14h06m Stock market news live updates: Wall Street rallies after jobless claims; Oatly jumps in debut Equities are struggling to catch a break as soaring prices remain at the center of the market's attention. Business Bloomberg 210520 14h03m Techs Lead U.S. Equity Rebound After Jobs Report: Markets Wrap (Bloomberg) -- Technology companies led a rebound in U.S. equities on Thursday after a report showing applications for state unemployment insurance fell last week to a fresh pandemic low rekindled optimism in the economic recovery.The Nasdaq 100 Index jumped to a two-week high, with gains in megacaps including Apple Inc., Microsoft Corp. and Tesla Inc. powering the advance. Tech stocks rose the most in the S&P 500 as all of the major industry groups moved higher. Ford Motor Co. rose for the first time in three sessions on plans to create a joint venture to manufacture electric-vehicle batteries in the U.S.The latest jobs report comes after mounting concern that faster inflation will prompt authorities to ease back on stimulus has weighed on risk assets in recent sessions. Minutes from the Federal Reserve’s last meeting showed some officials were open to a debate at “upcoming meetings” on scaling back bond purchases if the U.S. economy continued to progress rapidly.“While inflation has been the star of the show, keep in mind that the Fed’s mandate is twofold, with employment as the other side,” said Mike Loewengart, managing director of investment strategy at E*Trade Financial. “The jobless claims read shows once again that that we’re heading in the right direction, but we’re a ways away from where we were pre-pandemic.”Thursday’s rally pushed the tech-heavy Nasdaq 100 above its average price for the past 50 days. That level is a key trend indicator for traders and has proven to be a buy signal in past rebounds.Cryptocurrencies pared gains after the U.S. Treasury Department called for stronger tax compliance. Bitcoin, which whipsawed investors with huge price swings on Wednesday, was up less than 5% at 4 p.m. in New York after climbing as much as 11%.Oil extended declines to a three-week low after Iran’s president said the broad outline of a deal to end sanctions on its oil had been reached. Yields on 10-year Treasuries fell as the dollar weakened. The Bloomberg Commodity Index fell for a third day.Here are some key events this week:Data on existing U.S. home sales for April are due on May 21Euro-area finance ministers and central bank chiefs hold an informal meeting. A larger group of EU finance ministers and central bank chiefs will meet May 22These are some of the main moves in markets:StocksThe S&P 500 rose 1.1% as of 4:01 p.m. New York timeThe Nasdaq 100 rose 1.9%The Dow Jones Industrial Average rose 0.5%The MSCI World index rose 1%CurrenciesThe Bloomberg Dollar Spot Index fell 0.4%The euro rose 0.4% to $1.2226The British pound rose 0.5% to $1.4189The Japanese yen rose 0.4% to 108.78 per dollarBondsThe yield on 10-year Treasuries declined four basis points to 1.63%Germany’s 10-year yield was little changed at -0.11%Britain’s 10-year yield declined one basis point to 0.84%CommoditiesWest Texas Intermediate crude fell 2.1% to $62 a barrelGold futures fell 0.2% to $1,877 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. Business Reuters 210520 14h03m CANADA FX DEBT-Canadian dollar rallies as market rethinks Fed taper risk The loonie , which has benefited from surging commodity prices in recent months, was trading 0.7% higher at 1.2052 to the greenback, or 82.97 U.S. cents, moving back in reach of Wednesday's three-year high at 1.2013. The U.S. dollar lost ground against a basket of major currencies, hovering just above a multi-month low. Business Yahoo Finance 210520 14h02m Oatly goes public at $22.12 per share, 31% above its listing price Oatly (OTLY) began trading on the Nasdaq on Thursday, May 20, at $22.12 after pricing at $17 per share. Business Reuters 210520 13h55m GLOBAL MARKETS-Wall St gains 1% as tech shares rally, Treasury yields fall Stock indexes around the globe rose on Thursday, with the S&P 500 climbing more than 1% led by sharp gains in technology shares, while U.S. Treasury yields fell after a weaker-than-expected U.S. business activity reading. The Philadelphia Federal Reserve Bank said its business activity index fell to 31.5 from 50.2 in April, its highest pace in nearly half a century. Howell date : 210520 13h49m46s Business Bloomberg 210520 13h40m Techs Lead U.S. Equity Rebound After Jobs Report: Markets Wrap (Bloomberg) -- Technology companies led a rebound in U.S. equities on Thursday after a report showing applications for state unemployment insurance fell last week to a fresh pandemic low rekindled optimism in the economic recovery.The Nasdaq 100 Index jumped to a two-week high, with gains in megacaps including Apple Inc., Microsoft Corp. and Tesla Inc. powering the advance. Tech stocks rose the most in the S&P 500 as all of the major industry groups moved higher. Ford Motor Co. rose for the first time in three sessions on plans to create a joint venture to manufacture electric-vehicle batteries in the U.S. The latest jobs report comes after mounting concern that faster inflation will prompt authorities to ease back on stimulus has weighed on risk assets in recent sessions. Minutes from the Federal Reserve’s last meeting showed some officials were open to a debate at “upcoming meetings” on scaling back bond purchases if the U.S. economy continued to progress rapidly.“While inflation has been the star of the show, keep in mind that the Fed’s mandate is twofold, with employment as the other side,” said Mike Loewengart, managing director of investment strategy at E*Trade Financial. “The jobless claims read shows once again that that we’re heading in the right direction, but we’re a ways away from where we were pre-pandemic.”Thursday’s rally pushed the tech-heavy Nasdaq 100 above its average price for the past 50 days. That level is a key trend indicator for traders and has proven to be a buy signal in past rebounds.Cryptocurrencies pared gains after the U.S. Treasury Department called for stronger tax compliance. Bitcoin, which whipsawed investors with huge price swings on Wednesday, was up about 4% in afternoon trading after climbing as much as 11%.Oil extended declines to a three-week low after Iran’s president said the broad outline of a deal to end sanctions on its oil had been reached. Yields on 10-year Treasuries fell as the dollar weakened. The Bloomberg Commodity Index fell for a third day.Here are some key events this week:Data on existing U.S. home sales for April are due on May 21Euro-area finance ministers and central bank chiefs hold an informal meeting. A larger group of EU finance ministers and central bank chiefs will meet May 22These are some of the main moves in markets:StocksThe S&P 500 rose 1.3% as of 3:37 p.m. New York timeThe Nasdaq 100 rose 2.1%The Dow Jones Industrial Average rose 0.8%The MSCI World index rose 1.1%CurrenciesThe Bloomberg Dollar Spot Index fell 0.4%The euro rose 0.4% to $1.2225The British pound rose 0.5% to $1.4190The Japanese yen rose 0.4% to 108.79 per dollarBondsThe yield on 10-year Treasuries declined four basis points to 1.63%Germany’s 10-year yield was little changed at -0.11%Britain’s 10-year yield declined one basis point to 0.84%CommoditiesWest Texas Intermediate crude fell 2.1% to $62 a barrelGold futures fell 0.3% to $1,877 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. Business Yahoo Finance Video 210520 13h35m Federal Reserve to open digital currency debate this summer Yahoo Finance's Brian Cheung joined Yahoo Finance Live to break down how Federal Reserve plans to open a digital currency debate this summer and what this means for cryptocurrency. U.S. Reuters 210520 13h33m U.S. FERC pulls licenses for three Michigan dams after flood The U.S. Federal Energy Regulatory Commission (FERC) said on Thursday it terminated Boyce Hydro Power Llc’s licenses for the bankrupt company's Secord, Smallwood and Sanford hydroelectric projects on the Tittabawasee River in Michigan. Heavy rain in May 2020 caused high inflows in the Tittabawassee, resulting in the breaching and failure of the Edenville Dam, the license for which FERC had already revoked in 2018 for Boyce's failure to comply with safety directives and other license requirements. Business Bloomberg 210520 13h31m Huarong Bond Losses Spread Onshore, Risking Downward Spiral (Bloomberg) -- Concern over China Huarong Asset Management Co.’s financial health is deepening among domestic investors, threatening to worsen a selloff offshore.The firm’s thinly traded 19 billion yuan note due 2022 fell 12% to 70.2 yuan on Thursday, according to Bloomberg-compiled data, while its 3.54% domestic bond maturing in November dropped 24% to 75.3 yuan, both on pace for record lows. The company’s dollar bonds also declined, with a 3.75% bond due 2022 falling 5.5 cents on the dollar to 73.6 cents, its weakest level in more than a month. Its 4.5% perpetual dollar note was on track to close at a record low of around 53 cents in U.S. hours, Bloomberg-compiled prices show.Huarong’s domestic bonds had held up better than its dollar notes since the start of April as speculation grew over a possible debt restructuring at the company. The risk now is that a loss of confidence among mainland investors may reinforce nervousness offshore, creating a downward spiral. Several of China Huarong’s dollar notes are trading near their lows reached during the depths of the initial selloff last month.“Many factors could be involved in China Huarong’s debt resolution and it will take time for any proposal to be finalized,” said Li Gen, chief executive officer of Beijing BG Capital Management Ltd. “Although Huarong could get some liquidity support from banks, it’s still unclear whether bonds will be repaid at a discount in the long term.”There’s been little clarity from authorities over the distressed debt manager’s future in recent days, despite conflicting media reports about whether the central government will allow the company to default. Failure to repay its debts would upend the long-held expectation by investors that Beijing will support companies owned by the central government. That’s helping to fuel volatility in the bonds.Right now, the risk of a broader fallout in China’s credit market is low. Spreads on the nation’s domestic, lower-rated corporate bonds over comparable government notes are at about their lowest in two months, while yield premiums on offshore investment-grade bonds have improved since hitting a nine-month high at the height of the panic, Bloomberg-compiled data show.While this is positive for Beijing’s efforts to create better market discipline without triggering financial turmoil, some analysts have said the lack of market contagion could embolden authorities to limit support for the company.Caixin Media’s WeNews reported on May 12 that authorities had urged Huarong to solve its issues on its own. The New York Times said on Tuesday China’s government is “strongly committed” to making sure both foreign and domestic bondholders don’t receive full repayment of their principal.Huarong has been repaying its maturing bonds on time and said it had seen no change in government support. The company has the equivalent of about $2.83 billion in offshore and onshore bonds coming due through August, including a dollar note that matures Thursday, data compiled by Bloomberg show.A unit of the firm, China Huarong International Holdings Ltd., said it has wired funds for principal and interest payment on a $300 million bond due May 20, according to a company statement Thursday. The firm was profitable in the January-April period, it added.The financial giant owes domestic and international bondholders the equivalent of about $41 billion, following an ill-fated expansion under former Chairman Lai Xiaomin, who was executed for crimes including bribery in January. Huarong is majority owned by China’s Ministry of Finance and is deeply intertwined with the nation’s $54 trillion financial industry.(Updates with U.S. dollar bond trading in 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. U.S. Bloomberg 210520 13h31m Illinois Bonds Gain as Court Rejects Case to Invalidate Debt (Bloomberg) -- The Illinois Supreme Court on Thursday upheld a decision that shot down a conservative think tank leader’s effort to invalidate more than $14 billion of bonds sold by the state, promising to end a nearly two year legal saga.John Tillman, the chief executive officer of the Illinois Policy Institute, a conservative think tank, filed a lawsuit in July 2019 claiming that pension bonds issued in 2003 and others sold in 2017 violated the state constitution because they weren’t issued for “specific purposes” but general expenses. The state argued that laws authorizing the 2003 and 2017 bonds satisfied that requirement.Illinois bonds rose in active trading after the ruling, driving the average yield on some sold in 2017 to 1.12% from 1.4% and the price jumped to more than $1.20 from about $1.19 a day earlier. The case has been closely watched by investors in the $3.9 trillion municipal bond-market, where it was seen as a potential harbinger of potential lawsuits elsewhere if it prevailed.“Even though the probability was low that the challenge was going to be successful, it wasn’t zero,” said Dan Solender, director of tax-free fixed income for Lord, Abbett & Co., which holds $34 billion in muni assets. “The expectation was this was not going to be a problem but still the bonds are moving up because there is now some definite resolution to the situation.”In August 2019, a Sangamon County circuit associate judge denied Tillman’s petition to file the suit. The Supreme Court upheld that court’s decision, reversing a ruling from an appeals court.“We hold that the circuit court did not abuse its discretion in denying the petition for leave to file a taxpayer action,” according to an opinion of the court delivered by Chief Justice Anne Burke that was posted on its website. “Accordingly, we reverse the judgment of the appellate court and affirm the judgment of the circuit court.”A successful effort to invalidate the debt would have saddled investors with losses and potentially left the state facing higher interest rates to compensate for the risk of such challenges. The state already has $141 billion of unfunded pension liabilities, almost no money in its rainy day fund and expects deficits through at least 2026.“I am of course disappointed in the Illinois Supreme Court’s ruling,” Tillman said in an emailed statement Thursday after the ruling. “We are evaluating our options as to how to proceed from here. In the interim, I continue to be profoundly concerned about Illinois’ reckless debt accumulation. All Illinoisans should care about this.”Tillman added that if the state doesn’t push for pension reform now a fiscal crisis could pose a threat to taxpayers, people who depend on government services and retirees.Illinois Governor J.B. Pritzker’s “administration is pleased that the Supreme Court sided with hardworking taxpayers over a frivolous lawsuit designed to grab headlines,” according to an emailed statement from spokesperson Emily Bittner. The court “rejected the plaintiff’s belated attempt to create unnecessary havoc in Illinois’ fiscal standing,” Illinois Attorney General Kwame Raoul’s office said in a statement.The state’s top court focused on how long Tillman waited to file his action rather than the constitutional question, and in the opinion said “we find that this delay is unreasonable.”With the outcome of the case now behind the state, it “can move forward in addressing the more pertinent fiscal issues,” said Dennis Derby, a portfolio manager for Wells Fargo Asset Management, which owns Illinois debt that was challenged as well as other bonds issued by the state as part of a $40 billion municipal-bond portfolio.(Updates with comment from plaintiff in seventh 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. Business Bloomberg 210520 13h30m Great Commodities Boom of 2021 Hits Pause Amid Wider Selloff (Bloomberg) -- One of the biggest commodities booms in decades isn’t likely done yet -- it’s just taking a breather.Crops, oil and metals such as nickel extended declines Thursday, a day after traders sold stocks to cryptocurrencies on concerns about inflation, speculation that the U.S. Federal Reserve will ease stimulus and China’s warning on measures to cool price spikes. Yet, many of the reasons behind the surging prices in the past year that fueled debate on whether commodities are entering a new supercycle remain intact.“The commodities bull run is definitely not done yet,” said Eric Liu, head of trading at Chinese copper trader ASK Resources Ltd. “Every country is grappling with rising inflation, but as long as they don’t actually tighten monetary and fiscal policies, commodity prices can hardly cool off.”A rebound in the world’s largest economies as the vaccination against Covid-19 rolls out is stoking demand for metals, food and energy when supplies are still constrained, creating short-term shortages in goods ranging from oil to lumber. That trend may intensify during the next few months in the U.S. and Europe, with more people going out, driving, booking flights and gathering for summer barbecue parties. And there’s China, which has increased soybean and corn imports to feed its rapidly expanding hog herd.Longer term prospects of aggressive infrastructure spending and a faster transition to electric vehicles and batteries have also helped boost commodity prices.The market tone was steadier on Thursday, with copper futures rebounding from the previous day’s slump on expectations that demand will remain resilient even in the face of possible tapering by the Federal Reserve and China’s stepped-up efforts to jawbone prices lower. Corn futures also rose in Chicago, supported by China’s continued buying spree. In contrast, crude futures extended losses on the prospect of a deal to end sanctions on Iran’s exports, while the coronavirus continues to hurt Indian demand.The Bloomberg Commodity Spot Index, which tracks 23 raw materials, slid 1.8% on Wednesday as minutes of the Fed’s April meeting showed some policymakers were open to a debate on tapering at future meetings. Also, China issued a fresh warning of measures to curb rising prices, saying more needs to be done to prevent rising costs from being passed through to consumers.The stronger rhetoric risks weighing on materials from copper to iron ore, which reached record highs this month on surging demand. China, the top commodities user, has also been buying huge amounts of crops, which helped push grains markets to multiyear highs before the rally stalled.Recent declines are “partly driven by a reversal of macroeconomic sentiment in the world, as some of the fundamental factors that helped push up asset prices eased,” said Zhang Chenfeng, a researcher at Chinese commodity hedge fund Shanghai Chaos Investment.Return to RecordThe Bloomberg commodities gauge may still top 2011’s record high in the next few months as the U.S. economy further opens up though inflationary pressures could limit the upside, according to Bob Yawger, head of the futures division at Mizuho Securities.“People wanna get out and live, and that will put a big bid in the market,” he said in an interview, adding a weaker dollar could also be a catalyst for higher commodities prices since most raw materials are priced in the greenback. Western Texas Intermediate crude oil could climb toward $70 a barrel in the next few months “as everybody drives as many miles as they can possibly can.”With markets looking for fresh drivers to resume the rally, energy bulls can point to the coming U.S. driving and flying seasons as lockdowns ease, as well as solid demand from Asia. Crops need almost perfect weather this summer in the U.S. and later in Brazil and Argentina for harvests to meet world demand, so any bad weather could cause price spikes.Metals have benefited from a rush to replenish manufacturing supply chains and the prospect of years of green spending, which helped send economic bellwether copper above $10,700 a metric ton earlier this month. Whether prices go higher partly depends on a clearer picture of infrastructure spending and how long loose monetary policies will last.Wall Street has issued bullish outlooks. Citigroup Inc. sees copper heading past $12,000 in the coming months and major traders Glencore Plc and Trafigura said prices could jump much higher to spur enough supply to meet future demand from renewables and electric cars.“I’m certainly in the camp of this being a healthy pause” for commodities, said Daniel Hynes, a strategist at Australia & New Zealand Banking Group. “Any disappointing data or headwinds were always going to see some profit-taking, and I think the whole sector still has some upside.”(Updates with commodity moves from sixth 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. Howell date : 210520 12h48m32s Business Yahoo Finance Video 210520 12h36m 'The underlying economy is in very good shape’: Portfolio Manager Ellen Hazen, Portfolio Manager at F.L.Putnam Investment Management Company, joins Yahoo Finance to discuss the outlook on the market and cryptocurrency. Business Bloomberg 210520 12h33m U.S. Proposes $242 Million in Penalties for Traders (Bloomberg) -- The top U.S. energy regulator has proposed forcing three power traders, all veterans of JPMorgan Chase & Co., to pay a total of $242 million for allegedly manipulating an obscure of corner of the country’s largest electricity market.The Federal Energy Regulatory Commission accused GreenHat Energy LLC and its owners of placing bets on potential grid bottlenecks, known as the financial transmission rights market, that sent false price signals, according to statement Thursday. The wagers cost utilities and other traders in the PJM Interconnection market more than $179 million in losses.“Today’s order offers another reminder that the Commission has a solemn responsibility to investigate and penalize participants that engage in market manipulation,” FERC Chairman Richard Glick said Thursday during a FERC meeting.Also Read: Ex-JPMorgan Traders Lost Millions on Bad Bets in Power MarketThe move comes after the number of FERC probes into wrongdoing in energy markets fell to a record low last year under the Trump Administration. Glick has made it a priority to step up investigation since he was appointed to lead the agency by the Biden Administration earlier this year.FERC proposed civil penalties totaling $179 million to GreenHat and fines of $25 million each to two of its owners: John Bartholomew and Kevin Ziegenhorn. The agency also proposed ordering them to surrender nearly $13.1 million in profits.A third GreenHat owner, Andrew Kittell, died in January. His estate is being asked to respond to the allegations. The parties have 30 days to respond.GreenHat started placing the bets in auctions held by PJM Interconnection LLC, which operates the country’s largest power market, in 2015 and kept building positions into 2018. The company kept placing the bets even as other market participants flagged PJM about the risk before it defaulted on a $1.2 million payment in June 2018 and those losses have ballooned 150 times. At the time of the default, GreenHat had less than $560,000 in collateral on deposit with the grid operator.“This alleged scheme is an example of a type of fraud in which perpetrators acquire assets with no intent to pay for them, and then try to turn the assets into immediate cash for themselves,” according to the FERC statement.This default by a small, new trader was the largest any U.S. grid had experienced of any kind, until the freeze that struck Texas in February left the state’s power market facing a nearly $3 billion shortfall. GreenHat’s default forced the previous PJM chief executive out. PJM also hired a new chief risk officer reporting to the board and sparked a review of credit policies across grids.Market participants have already been charged $180.5 million for GreenHat’s bad bets when factoring related costs and those losses will continue to widen until the last positions are liquidated this month, according to the market monitor’s most recent report.FERC’s enforcement team has been investigating GreenHat’s trading behavior since at least 2018, bringing fresh scrutiny on trading activity by Kittell and Bartholomew just a few years after they were part of a team investigated at JPMorgan, according to filings. In 2013, the bank settled a case alleging its traders manipulated the California power market for a record $410 million fine at the time.FERC Commissioner James Danly concurred with the GreenHat order, calling in light of the massive default, in the monthly meeting. “It’s necessary for the commission to make an official pronouncement on whether or not there was manipulation.”(Corrects to say that the penalties are proposed.)More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. World Reuters 210520 12h30m UPDATE 1-BioNTech CEO says vaccine up to 75% effective against India variant BioNTech SE Chief Executive Ugur Sahin said on Thursday the COVID-19 vaccine it developed with Pfizer Inc is expected to be 70% to 75% effective in protecting against infections caused by the coronavirus variant first detected in India. Tests this week have focused on the India variant, he said. Business Bloomberg 210520 12h17m WeWork Lost $2.1 Billion on Closings, Neumann Deal (Bloomberg) -- WeWork lost $2.06 billion in the first quarter, overwhelmed by effects of the coronavirus pandemic and a settlement with the ousted co-founder Adam Neumann, according to a person familiar with the financials.The mounting loss was due largely to a variety of one-time costs, which also include office closings and other restructuring, said the person, who asked not to be identified because the details are private. The settlement with Neumann resulted in a non-cash writedown of nearly $500 million, the person said.The quarterly loss was almost four times larger than it was in the same period a year ago, according to the Financial Times, which reported the details earlier Thursday. A representative for WeWork didn’t immediately have a comment, and a spokesman for Neumann declined to comment.Neumann resigned in 2019 after a plan to take the company public imploded. SoftBank Group Corp. bailed out the business and clashed with Neumann in court over an unfulfilled stock transaction. They agreed to settle in February.Under a new chief executive officer, Sandeep Mathrani, WeWork is refocusing on its core business of renting office space and is seeking to shed costs. The adjusted loss before interest, tax and other expenses narrowed from the fourth quarter to $446 million, the person said.The pandemic was tough on WeWork’s business, but executives have said the company is well-positioned for a post-outbreak economy. Marcelo Claure, WeWork’s executive chairman, said at a Bloomberg conference this week that customer demand now exceeds pre-pandemic levels. Customers have committed $1.9 billion in future sales, the person familiar with the financial details said.After its failed attempt at an initial public offering, WeWork plans to try again this year by merging with a special purpose acquisition company, BowX Acquisition Corp. WeWork had liquid assets of $2.2 billion in the first quarter and is expected to have $3 billion when its merger closes sometime in the third quarter, the person said.(Updates with response from Neumann spokesman in the 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. Business Reuters 210520 12h15m Musk says he hasn't and won't sell any dogecoin Earlier this month, he called the cryptocurrency a "hustle" during his guest-host spot on the "Saturday Night Live" comedy sketch TV show, leading prices to tumble. "Yeah, I haven't & won't sell any Doge," Musk said on Twitter in response to a tweet on Thursday claiming he would never sell any of his doge holdings and that he was the "ultimate hodler". His tweets on dogecoin have turned the once-obscure digital currency into a speculator's dream. Business Yahoo Finance 210520 12h07m Stock market news live updates: Wall Street rallies after jobless claims; Oatly jumps in debut Equities are struggling to catch a break as soaring prices remain at the center of the market's attention. Howell date : 210520 12h17m55s U.S. Reuters 210520 12h05m U.S. gives Williams more time to build Pennsylvania-NY natgas line U.S. energy regulators on Thursday approved Williams Companies Inc's request for two more years until May 2023 to build the proposed Northeast Supply Enhancement (NESE) project to transport natural gas from Pennsylvania to New York. The U.S. Federal Energy Regulatory Commission (FERC) approved the roughly $1 billion project, which includes an offshore pipe between New Jersey and Long Island, New York, in May 2019. That approval required Williams' to put the project in service by May 2021. Business Bloomberg 210520 12h03m Techs Lead U.S. Equity Rebound After Jobs Report: Markets Wrap (Bloomberg) -- Technology companies led a rebound in U.S. equities on Thursday after a report showing applications for state unemployment insurance fell last week to a fresh pandemic low rekindled optimism in the economic recovery.The Nasdaq 100 Index jumped to a two-week high, with gains in megacaps including Apple Inc., Microsoft Corp. and Tesla Corp. powering the advance. Tech stocks rose the most in the S&P 500 as nine of the main 11 industry groups moving higher. Ford Motor Co. rose for the first time in three sessions on plans to create a joint venture to manufacture electric-vehicle batteries in the U.S. European equities rebounded from a two-week low as carmakers and financial-services firms led gains. The latest jobs report comes after mounting concern that faster inflation will prompt authorities to ease back on stimulus has weighed on risk assets in recent sessions. Minutes from the Federal Reserve’s last meeting showed some officials were open to a debate at “upcoming meetings” on scaling back bond purchases if the U.S. economy continued to progress rapidly.“While inflation has been the star of the show, keep in mind that the Fed’s mandate is twofold, with employment as the other side,” said Mike Loewengart, managing director of investment strategy at E*Trade Financial. “The jobless claims read shows once again that that we’re heading in the right direction, but we’re a ways away from where we were pre-pandemic.”Thursday’s rally pushed the tech-heavy Nasdaq 100 above its average price for the past 50 days. That level is a key trend indicator for traders and has proven to be buy signal in past rebounds.Cryptocurrencies pared gains after the U.S. Treasury Department called for stronger tax compliance. Bitcoin, which whipsawed investors with huge price swings on Wednesday, was up about 4% in afternoon trading after climbing as much as 11%.Oil extended declines to a three-week low after Iran’s president said the broad outline of a deal to end sanctions on its oil had been reached. Yields on 10-year Treasuries fell as the dollar weakened. The Bloomberg Commodity Index fell for a third day.Here are some key events this week:Data on existing U.S. home sales for April are due on May 21Euro-area finance ministers and central bank chiefs hold an informal meeting. A larger group of EU finance ministers and central bank chiefs will meet May 22These are some of the main moves in markets:StocksThe S&P 500 rose 1% as of 1:59 p.m. New York timeThe Nasdaq 100 rose 1.8%The Dow Jones Industrial Average rose 0.6%The MSCI World index rose 0.9%CurrenciesThe Bloomberg Dollar Spot Index fell 0.4%The euro rose 0.3% to $1.2216The British pound rose 0.4% to $1.4177The Japanese yen rose 0.4% to 108.81 per dollarBondsThe yield on 10-year Treasuries declined four basis points to 1.63%Germany’s 10-year yield was little changed at -0.11%Britain’s 10-year yield declined one basis point to 0.84%CommoditiesWest Texas Intermediate crude fell 2.1% to $62 a barrelGold futures were little changedMore stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. Business Reuters 210520 12h02m Fed, citing crypto risk, to open digital currency debate this summer Federal Reserve Chair Jerome Powell flagged the risks of cryptocurrencies in an unusual video message on Thursday that also laid out a clearer timetable for the Fed to consider adopting a digital currency of its own. Highlighting the fast advances in financial technology and the potential benefits involved, Powell said that cryptocurrencies, stablecoins and other innovations "may also carry potential risks to those users and to the broader financial system." Powell said the Fed would release a discussion paper this summer "outlining our current thinking on digital payments, with a particular focus on the benefits and risks associated" with establishing a central bank digital currency. Politics Yahoo Finance 210520 11h59m 'Exceptional circumstances': Judge orders Betsy DeVos to testify in student loan forgiveness lawsuit A federal judge ordered former Education Secretary Betsy DeVos to testify in a lawsuit related to her role in how the Education Department (ED) handled debt relief for students who felt they were defrauded. Business Reuters 210520 11h58m BMW to cut antitrust provisions by 1 billion eur as EU fine seen lower German luxury carmaker BMW said on Thursday it would have to set aside 1 billion euros ($1.2 billion) less than initially feared for expected European antitrust fines for alleged collusion with rivals. In 2019, BMW recognised a provision of around 1.4 billion euros for expected penalties from an EU investigation into collaboration between German automakers on emission-reduction technologies. "The significant limitation in the scope of the allegations has led to a revaluation of the provision," BMW said, adding this would lead to a positive effect on earnings of around 1 billion euros in the second quarter. Howell date : 210520 11h47m19s Business Bloomberg 210520 11h42m Oatly Jumps in Debut After Raising $1.4 Billion in IPO (Bloomberg) -- Oatly Group AB, the vegan food and drink maker, jumped in its debut after pricing its initial public offering at the top of a marketed range.Shares opened Thursday at $22.12 in New York, a 30% jump from their $17 IPO price. The company and its investors sold more than 84 million American depositary shares on Wednesday, raising more than $1.4 billion. The Swedish company had offered the shares for $15 to $17 each.Oatly’s shares, which rose as much as 34%, were up 29% to $21.95 at 1:39 p.m., giving the company a market value of about $13 billion, based on the outstanding shares listed in its filings with the U.S. Securities and Exchange Commission.In July, it secured $200 million in new capital from investors led by Blackstone Group Inc. The group also included celebrities such as Oprah Winfrey and Jay-Z, as well as Starbucks Corp. founder Howard Schultz. The company was valued at about $2 billion in that round.Both Jay-Z, through his company Roc Nation, and Schultz also participated in the IPO, according to people with knowledge of the matter who asked not to be identified discussing private information. A representative for Oatly declined to comment. Roc Nation and Schultz didn’t immediately respond to requests for comment.The IPO underscores plant-based products’ jump into the mainstream, as environmental and health concerns spur consumers to seek alternatives to traditional meat and dairy products. Investors have been looking for ways to replicate the public-market success of Beyond Meat Inc., whose shares have surged more than 300% since it went public in May 2019.Oatly’s biggest obstacle might be its own popularity. Since its entrance into the U.S. market in 2017, finding Oatly in coffee shops and supermarkets has become something of a treasure hunt for shoppers.The company opened a $15 million Millville, New Jersey, plant in 2019 to help meet the growing demand, but even now, shortages are frequent, as Covid-related delays have kept a planned second U.S. production from coming online.In March, supermarkets across the U.S. -- and even its big new customer Starbucks -- reported trouble procuring orders.While the current shortage won’t end overnight, Chief Executive Officer Toni Petersson sounded an optimistic note.Fulfilling Orders“This year, we will bring on board new capacity every single quarter,” he said in an interview ahead of the first trade. The company is expanding its Netherlands plant, putting out commercial products from its Utah plant, and is doing test runs in Singapore, where the factory will be “up and running” in the second quarter, he said.For now, Oatly is only filling 70% of orders in its key markets, so it is “not really” taking on new customers, Petersson said, adding that the gap is between supply and orders, not supply and demand. “First we will close the gaps, then expand with new retail partners,” he added.Oatly was started in 1994 by brothers Rickard and Bjorn Oste. Using technology based on research from Sweden’s Lund University, the company turns fiber-rich oats into liquid food.Oatly’s offering was led by Morgan Stanley, JPMorgan Chase & Co. and Credit Suisse Group AG. The shares are trading on the Nasdaq Global Select Market under the symbol OTLY.(Updates with IPO participants in fifth 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. Business Bloomberg 210520 11h36m Copper Rebounds as Demand Optimism Overcomes Fed, China Concerns (Bloomberg) -- Copper rebounded from Wednesday’s slump, buoyed by expectations that demand will remain resilient in the face of possible tapering by the U.S. Federal Reserve and China’s stepped-up efforts to jawbone prices lower.Sentiment improved with equities climbing and U.S. a report showing applications for state unemployment insurance fell last week to a fresh pandemic low. A falling dollar also helped underpin gains in metals.Copper slid the most since October on Wednesday amid worries that inflation threatens the economic recovery. Despite the pullback, major metal producers remain optimistic. The Chilean government’s copper agency Cochilco lifted its 2021 average price projection, saying a tight market and investor flows could send the metal to new all-time highs in the short term.“For the time being, global commodity demand signals are still firing on all cylinders, with the recent weakening still consistent with noise,” TD Securities analysts led by Bart Melek said in a note. But “the context points to risks of normalizing growth.”Minutes of the Fed’s last meeting released Wednesday indicated some Fed officials may be open “at some point” to discussing adjustments to the pace of massive bond purchases if the U.S. economy keeps progressing rapidly.In China, the cabinet expressed concerns Wednesday about the rise in commodities prices for a second week in a row, calling for more effort to curb “unreasonable” gains and preventing any impact on consumer prices. The meeting, chaired by Premier Li Keqiang, also called for a crackdown on speculation and hoarding.Copper rose 0.5% to settle at $10,048 a ton at 5:53 p.m. on the London Metal Exchange, after climbing as much as 1.8%. The metals slumped 3.9% on Wednesday, the most since Oct. 1. Most other LME metals advanced on Wednesday, while aluminum slipped.Alcoa Co.’s Chief Executive Officer Roy Harvey said demand for aluminum is “firing on all engines” this year and continues to grow “really, really quickly” in China and the rest of the world.More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. U.S. Reuters 210520 11h26m UPDATE 1-U.S. government forecasts above-normal 2021 Atlantic hurricane season The U.S. government on Thursday forecast an above-normal 2021 Atlantic hurricane season, which is already off to an early start with a storm expected to form off Bermuda this week. The U.S. National Oceanic and Atmospheric Administration (NOAA) forecast between three and five major hurricanes, with sustained winds of at least 111 miles per hour (178 kph), will form in 2021. Between six and 10 hurricanes with winds of at least 74 mph (119 kph) were expected out of 13-20 tropical storms in 2021, NOAA forecasters said. World Bloomberg 210520 11h24m CP Rail Sticks With Bid for K.C. Southern, Urging It to Dump CN (Bloomberg) -- Canadian Pacific Railway Ltd. declined to boost its $25 billion bid for Kansas City Southern and urged the U.S. carrier to reject Canadian National Railway Co.’s higher offer anyway, saying it poses a greater risk of getting blocked by regulators.Canadian National’s $30 billion proposal is “illusory,” Canadian Pacific Chief Executive Officer Keith Creel said in a letter to Kansas City Southern’s board, citing opposition from the U.S. Justice Department and a large shareholder. Creel also pointed to a U.S. Surface Transportation Board decision to judge the Canadian National deal under tougher antitrust standards.“The best way for the KCS board to fulfill its fiduciary duties in light of recent developments would be to continue to pursue the CP-KCS combination,” he said.Canadian National, the bigger of the two suitors, responded in an emailed statement that it’s confident its proposal will get U.S. regulatory approval.The ultimate outcome will determine who gets to be the first railroad to operate from Canada through the U.S. and on to Mexico. Kansas City Southern gets about half its revenue from Mexico, which is poised to capture investment as manufacturers seek to use a renegotiated trilateral trade agreement to shorten supply lines across the Pacific.Canadian Pacific rose 2.5% to C$97.46 at 1:10 p.m. in Toronto, while Canadian National fell less than 1% to C$128.02. Kansas City Southern slipped almost 1% to $292.79 in New York. The U.S. railroad’s shares had advanced 45% this year through Wednesday.While Canadian Pacific’s proposal has an easier regulatory path, Kansas City Southern is likely to accept Canadian National’s higher bid, said Christian Wetherbee, an analyst at Citigroup Inc.“Canadian Pacific’s response to the KCS board was not what we had expected but is understandable,” he said in note to clients. Essentially, Canadian Pacific is betting it can take a $700 million breakup fee and wait for the regulatory process to unfold.Canadian Pacific and Kansas City Southern had reached a merger agreement in March that Canadian National topped in April. The U.S. carrier earlier this month said it would accept Canadian National’s offer, giving the smaller railroad until May 21 to improve its proposal.Creel on Thursday reiterated previous comments that Canadian Pacific wouldn’t engage in a bidding contest and “remained confident” that the Surface Transportation Board won’t approve Canadian National’s proposal for a voting trust to close the financial portion of the deal.Kansas City Southern has said a trust is a requirement for any proposal. The mechanism allows Kansas City Southern stockholders to get paid for their shares while government approval to merge operations is pending, a process that could take more than a year. The STB has approved Canadian Pacific’s trust but hasn’t made a final decision on Canadian National’s.Creel also noted that TCI Fund Management, a major shareholder in both Canadian railroads, urged Canadian National to drop its bid.Public InterestThe STB has said it would ultimately judge Canadian National’s proposal under stricter merger rules than Canadian Pacific’s, explaining that the smaller railroad’s plan would “result in the fewest overlapping routes.” Canadian National has to prove that its deal would be in the public interest, while Canadian Pacific merely has to establish that its tie-up wouldn’t hurt competition.Kansas City Southern is the smallest of the seven large U.S. and Canadian railroads and one of the industry’s few substantial merger targets remaining.(Updates with analyst’s comment in seventh 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. U.S. Reuters 210520 11h16m UPDATE 1-U.S. lawmakers to propose tax credit for sustainable aviation fuel U.S. lawmakers plan to introduce a bill on Thursday that would create a tax credit for lower-carbon sustainable aviation fuel, which they hope will slash emissions of greenhouse gases from the aviation industry. The legislation, seen by Reuters, would impose a tax incentive of up to $2.00 for every gallon produced of sustainable aviation fuel, which can be made from feedstocks such as grease, animal fats and plant oils. U.S. Representatives Brad Schneider, a Democrat from Illinois; Dan Kildee, a Democrat from Michigan; and Julia Brownley, a Democrat from California, are expected to introduce the bill. Business Bloomberg 210520 11h13m Techs Lead U.S. Equity Rebound After Jobs Report: Markets Wrap (Bloomberg) -- Technology companies led a rebound in U.S. equities on Thursday after a report showing applications for state unemployment insurance fell last week to a fresh pandemic low rekindled optimism in the economic recovery.The Nasdaq 100 Index climbed to a two-week high, with gains in megacaps including Apple Inc., Microsoft Corp. and Tesla Corp. powering the advance. Tech stocks rose the most in the S&P 500 as eight of the main 11 industry groups climbed. Ford Motor Co. climbed for the first time in three sessions on plans to create a joint venture to manufacture electric-vehicle batteries in the U.S. European equities rebounded from a two-week low as carmakers and financial-services firms led gains. Cryptocurrencies rose after wild swings in Bitcoin on Wednesday.The latest jobs report comes after mounting concern that faster inflation will prompt authorities to ease back on stimulus has weighed on risk assets in recent sessions. Minutes from the Federal Reserve’s last meeting showed some officials were open to a debate at “upcoming meetings” on scaling back bond purchases if the U.S. economy continued to progress rapidly.“While inflation has been the star of the show, keep in mind that the Fed’s mandate is twofold, with employment as the other side,” said Mike Loewengart, managing director of investment strategy at E*Trade Financial. “The jobless claims read shows once again that that we’re heading in the right direction, but we’re a ways away from where we were pre-pandemic.”Thursday’s rally pushed the tech-heavy Nasdaq 100 above its average price for the past 50 days. That level is a key trend indicator for traders and has proven to be buy signal in past rebounds.Oil extending declines to a three-week low after Iran’s president said the broad outline of a deal to end sanctions on its oil had been reached. Yields on 10-year Treasuries fell as the dollar weakened. The Bloomberg Commodity Index fell for a third day.Here are some key events this week:Data on existing U.S. home sales for April are due on May 21Euro-area finance ministers and central bank chiefs hold an informal meeting. A larger group of EU finance ministers and central bank chiefs will meet May 22These are some of the main moves in markets:StocksThe S&P 500 rose 1% as of 1:08 p.m. New York timeThe Nasdaq 100 rose 1.8%The Dow Jones Industrial Average rose 0.6%The MSCI World index rose 0.9%CurrenciesThe Bloomberg Dollar Spot Index fell 0.4%The euro rose 0.3% to $1.2216The British pound rose 0.5% to $1.4180The Japanese yen rose 0.4% to 108.79 per dollarBondsThe yield on 10-year Treasuries declined four basis points to 1.63%Germany’s 10-year yield was little changed at -0.11%Britain’s 10-year yield declined one basis point to 0.84%CommoditiesWest Texas Intermediate crude fell 1.2% to $63 a barrelGold futures rose 0.1% to $1,884 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. Howell date : 210520 11h16m42s Business Yahoo Finance Video 210520 11h07m Kohl’s Q1 sales soars past estimates, lifts 2021 guidance Yahoo Finance Canada Reporter Alicja Siekierska joins the Yahoo Finance Live panel with the latest on Kohl’s Q1 earnings and LBrands news. Business Bloomberg 210520 11h07m Oil Resumes Fall With Potential Sanctions Relief on Iran Looming (Bloomberg) -- Oil clung to losses as traders focused on the likelihood of a renewed nuclear deal with Iran and the potential removal of sanctions on the Persian Gulf country’s crude exports.Futures were down 1.3% in New York after falling as much as 1.9% earlier on Thursday. Iran’s President Hassan Rouhani said world powers have accepted that major sanctions on his country will be lifted. But he said diplomats are still discussing “details and finer points” before there’s “a final agreement.”The prospect of a return of Iranian supply is also being reflected in Brent’s prompt timespread. The spread’s backwardation narrowed to just a few cents on Thursday, a sign that market tightness may be easing.Oil is “in a holding pattern until we get to June, because that’s when Europe’s going to start to reopen and the U.S. driving season will have officially kicked off,” said Jay Hatfield, CEO of Infrastructure Capital Management. “Between now and then, the main influences will be Iran headlines as a headwind” and signs of further improvement in the U.S. market as a supportive factor.Crude futures have declined for three straight sessions, the longest losing streak since March, on the prospect of a revival of an Iran nuclear deal. While a timeline for a deal remains unclear, Iran has already been boosting its exports and Indian refiners have signaled they would be willing buyers. “There continue to be positive statements out of Vienna from various participants, including Iran, that a deal is at hand,” said John Kilduff, a partner at Again Capital LLC. “Even though we know they have already been ramping up their exports, it is adding to negative market sentiment.”Enrique Mora, the EU official in charge of coordinating diplomacy in Vienna for the nuclear talks, said he expects all parties to return to the 2015 agreement before Iran’s presidential elections on June 18. Citigroup Inc. sees an initial 500,000-barrel-a-day increase in supply from around the middle of the third quarter.Meanwhile, volatility is creeping back into the market after a choppy week in which global benchmark futures swung in a roughly $5 range after topping $70 a barrel. A measure of market volatility is at the highest since early April.Commodity trading advisors “have likely been net ‘sellers’ in oil futures this week, lightening up their net ‘long’ oil exposure as both volatility increases and short-term momentum turns bearish,” said Ryan Fitzmaurice, commodities strategist at Rabobank. “On a weighted basis, CTAs remain a sizable net ‘long’ in oil futures, but this is the first time in months that we have seen a bullish signal turn bearish, which is notable, especially in light of the recent Iran nuclear developments.”More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. Business Yahoo Finance 210520 11h01m Retirement reform is on track for Biden's signature 'hopefully this year': Rep. Kevin Brady Before he retires himself at the end of 2022, Rep. Kevin Brady has prioritized getting another round of retirement reform through Congress. Business Yahoo Finance 210520 10h49m Oatly CEO won't reprise his Super Bowl ad appearance 'for everyone's sake' Remember that quirky Oatly Super Bowl ad? On his IPO day, the singing CEO says he's not likely to reprise that performance. U.S. Yahoo Finance 210520 10h48m Treasury calls for doubling IRS staff to target tax evasion, crypto transfers President Joe Biden's new tax enforcement plan would add nearly 87,000 employees to the IRS, make banks report more information to the agency and require stricter cryptocurrency compliance, according to a new Treasury report. Business Bloomberg 210520 10h46m Bitcoin Pares Gains as Treasury Seeks to Toughen Tax Compliance (Bloomberg) -- Crypto markets remained volatile and gave back some of their gains Thursday after the U.S. Treasury called for stronger tax compliance within the space.Bitcoin hovered near the $39,800 as investors tried to make sense of the crash Wednesday that wiped away billions and shattered the notion of crypto as a maturing asset class. The coin retreated from intra-day highs of around $42,500 after the U.S. Treasury said the Biden administration’s proposal to strengthen tax compliance includes a requirement for transfers of at least $10,000 of cryptocurrency to be reported to the Internal Revenue Service.Volatility has dominated crypto markets, with Bitcoin plunging and surging more than 30% within a few hours on Wednesday. The carnage kicked off last week, when Tesla Inc. billionaire Elon Musk criticized Bitcoin for wasting energy and backtracked on a decision to allow crypto transactions. Losses accelerated after China warned that digital tokens can’t be used for payments.Still, many were heartened by its recovery from Wednesday’s lows.“You can’t keep a good dip buyer down for long in the financial markets these days, and cryptos are no different,” said Jeffrey Halley, a senior market analyst at Oanda. “The mass liquidation yesterday will have thinned out the ranks of believers.”“It is still our best-performing allocation so far this year even after, you know, a 30% to 40% dislocation,” Troy Gayeski, co-chief investment officer at Skybridge Capital, said on Bloomberg TV. “The key is whatever size at cost you’re comfortable with, let the bull market play out, tolerate the volatility and have confidence that ultimately by the end of this year you will be at a meaningfully higher price.”While all were proximate causes cited for the rout, the liquidation frenzy Wednesday morning was sentiment-driven and disorderly, with the coin dropping thousands of dollars in a matter of minutes. Selling gave way to more selling as investors lured into crypto in search of a quick buck bolted for the exits. It all accelerated when Bitcoin fell below its average price for the past 200 days.On Thursday, the mood in the market was quieter, with traders looking for the next technical levels and speculating whether prices have become oversold. Bitcoin pared back some of its gains to trade up 4% around $39,909as of 12:29 p.m. in New York. Ether added 8% to $2,745.Halley at Oanda said Bitcoin’s round numbers will be important to watch. “$30,000.00 is the line in the sand now, and another capitulation wave will follow if it breaks,” he said, adding that if prices can hold above $40,000, then it’ll draw investors looking to get back into the action.“This market presents opportunities for people now, but I think you will see people wait and let it settle,” said Todd Morakis, co-founder of digital-finance product and service provider JST Capital.(Updates prices throughout, adds IRS compliance info)More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. Business Yahoo Finance 210520 10h43m Ford CEO: It's time for America to be competitive in electric vehicles Ford President and CEO Jim Farley sends a message to those on Capitol Hill who are hesitant to fund the electric car industry. Howell date : 210520 10h46m06s Business Reuters 210520 10h28m EU to clarify rules for running cross-border investment funds The European Union will propose targeted changes later this year to clarify rules on when asset managers outside the bloc can choose assets for investment funds in the EU, a senior EU official said on Thursday. The EU's executive European Commission is reviewing the bloc's directive -- or rules -- for managers of alternative investment funds, which include hedge, private equity and real estate funds. "The directive is relatively new and has generally worked well," EU financial services chief Mairead McGuinness told an Irish Funds event. Business Bloomberg 210520 10h26m It’s Not Just Shoppers Riled by Pricey Beef. Ranchers Seethe Too (Bloomberg) -- It’s not just consumers getting riled up about rising beef prices. Cattle producers are, too.Ranchers and cattle feeders are seething over a pattern they now consider all-too-familiar: the cost of hamburgers and steaks soar at the grocery store, yet the prices producers get for the animals barely budges. The market’s dominated by four giant meatpacking companies that together control more than 80% of U.S. beef processing.“It’s a red-line level of frustration,” said Colin Woodall, chief executive officer of the National Cattlemen’s Beef Association, the largest trade association for cattle producers.That ire is driving political momentum for more oversight of cattle markets just as antitrust and competition issues gain new traction in Washington, where a backlash against Big Tech is fueling broader concerns about corporate behemoths abusing dominant positions.The Biden administration views the pricing patterns in beef processing as evidence that concentration is having damaging effects on the supply chain and rural America, a senior U.S. Department of Agriculture official said on condition of anonymity. USDA officials are looking at ways to use their regulatory authority to reduce the imbalance in market power, the official said.Six farm and cattle trade groups this week united behind demands for meatpackers to disclose more information on cattle purchases, and for the Justice Department to publicly report on an antitrust investigation it launched last May into the four major beef processors. Sixteen members of Congress wrote the Justice Department the same day pressing for a progress report on the probe.Lawmakers have introduced two legislative packages to require more transparency in pricing and terms of cattle purchases, in the hopes that it will give producers more leverage in transactions. Republican Senator Deb Fischer of Nebraska, who sponsored one, said she is “very optimistic” some version of an enhanced disclosure bill will pass Congress this year.Rural lawmakers are sensitive to cattle producers’ pain. Beef cattle operations account for more than a third of U.S. farms and ranches, making it the single largest segment in the nation’s agriculture. Ranchers are also hurting from an expanding drought. Feedlot operators, who typically fatten cattle before they go to packers for slaughter, face soaring corn prices.“At home, I hear about it all the time,” said Fischer, who described encounters with cattle feedlot operators losing hundreds of dollars per animal. “You can’t stay in business with those kind of losses.”Meanwhile, packers are prospering. Tyson Foods Inc., the largest U.S. meat company, earlier this month reported record margins of 11% for beef in its second quarter. The company’s stock is up 22% so far this year, compared to 9% for the benchmark S&P 500 index.The stunning beef profit margins will eventually decline but remain above historical levels, Tyson’s Chief Executive Officer Dean Banks said at a conference Wednesday.With pandemic restrictions easing, restaurants are reopening and buying meat. Flush with stimulus payments and improving incomes from a recovering economy, Americans have been willing to pay up for more expensive steaks and burgers.Since March 12, the wholesale price of beef has shot up 43%, according to USDA. Cattle prices have risen only 5%.Producers see a rerun of their plight during Covid-19 disruptions last year, when virus outbreaks slowed slaughterhouses, and the prior year, when a fire temporarily shut down a meat plant in Holcomb, Kansas, said Woodall. Each time, beef prices soared while cattle prices dropped.Renee Strickland, a fourth-generation cattle rancher based in Myakka City, Florida, said she sometimes has to pass up beef for chicken at the grocery store because it’s too expensive for her.“I’m just so angry that I can’t afford the product that I produce,” she said.The spread between the price packers pay for cattle and the price they receive for wholesale beef keeps hitting new records, first following the August 2019 fire, and then after the pandemic hit. A USDA report that examined beefpacker margins reached no conclusion on whether prices were manipulated.Greg Ibach, the undersecretary of agriculture in the Trump administration who oversaw livestock market regulation, said markets never really returned to normal levels after the Holcomb fire. In the year prior to the Aug. 9, 2019 fire, packers’ operating margins on cattle averaged $137 a head. Since then, it has averaged $331 a head, according to data maintained by HedgersEdge.com.“It never really has corrected itself,” Ibach said. “I don’t think the profits are being shared across the value chain in the same proportions that historically has happened.”Meatpacking companies say they’re constrained and struggling to attract workers, particularly after the Covid-19 outbreaks that made the industry an early epicenter of the pandemic. Tyson executives said this month they’ve raised wages but still face high employee turnover and absenteeism.“Despite the pandemic’s challenges the market is competitive and growing,” said Sarah Little, a spokeswoman for the North American Meat Institute, a trade group, in a statement.There are nascent efforts to boost U.S. beef processing capacity. Marfrig Global Foods SA in March said its subsidiary National Beef Packing Company is spending $100 million to more than double capacity at its plant in Tama, Iowa, to 2,500 cattle daily by adding a second production shift. The changes will be done by late 2022, and there are other smaller plants in the works.The Agriculture Department also is planning to use some funds from the Biden administration’s $1.9 trillion rescue plan to help small- and medium-sized meat processors expand operations, possibly using loan guarantees or grants.“There’s an opportunity for us to support additional processing capacity and hopefully a more competitive market,” Agriculture Secretary Tom Vilsack said.Tough times on the ranch also have an impact over time. Ironically, the cattle market is sending producers the exact opposite signal that economic textbooks would predict when consumer prices are rising for beef.That means the supply imbalance currently boosting packers will peak in 2021 and should eventually give more bargaining power to feedlots, according to Glynn Tonsor, agriculture economics professor at Kansas State University.“Both of those adjustments will improve the relationship in favor of the cattle seller,” Tonsor said of more capacity and a decline in herds. “We’ll see more second shifts, more new plants and fewer cattle.”(Updates with new tweet from Senator Grassley)More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. Business Yahoo Finance 210520 10h22m Ford CEO told Biden to 'step on the throttle' when the president test drove the new all-electric F-150 Ford president and CEO Jim Farley talks with Yahoo Finance Live about the company's first electric F-150 dubbed the Lightning. Business Bloomberg 210520 10h16m Gold Rises Near Four-Month High as Bond Yields, Dollar Decline (Bloomberg) -- Gold advanced, holding near the highest price in more than four months as Treasury yields gave up early gains and the dollar extended its slump.The yield on 10-year Treasuries declined four basis points, and the dollar headed for its fifth decline in six sessions. Falling rates boosts demand for non-interest bearing bullion, while a soft dollar makes the precious metal for attractive for investors holding other currencies.The gold market, on its way to a sixth straight gain, shrugged off concerns over Federal Reserve minutes Wednesday that showed some policy makers open to talking about tapering bond purchases. Rising inflation expectations and the Fed’s pledge to keep rates low for longer have revived interest in gold, with a rebound seen in holdings in exchange-traded funds backed by the metal.“The inflation issue is top of mind for gold and silver, given both metals’ reputation as inflation hedges, with the debate being primarily about the question of whether rising prices are transitory or permanent,” Carsten Menke, an analyst at Julius Baer Group Ltd., wrote in a note. “We firmly believe they will be transitory.”Spot gold rose 0.5% to $1,878.08 an ounce by 11:33 a.m. in New York. Prices reached $1,890.13 on Wednesday, the highest since early January, but pared gains after the release of the Fed minutes.Silver and platinum advanced on Thursday, while palladium fell. The Bloomberg Dollar Spot Index was down 0.3%.A U.S. report showed applications for state unemployment insurance in the U.S. fell last week to a fresh pandemic low, rekindling optimism in the economic recovery.”After the claims data, we saw gold pushing back above $1,880 behind rallying stocks, lower yields and a softer dollar,” said Tai Wong, head of metals derivatives at BMO Capital Markets.The extreme price swings in cryptocurrencies on Wednesday may also have helped support bullion. Bitcoin has been seen by some investors and analysts as a replacement for gold, particularly during the metal’s rocky start to the year.“It appears as though the recent weakness in Bitcoin is seeing some investors shifting to gold,” said Warren Patterson, head of commodities strategy at ING Groep NV in Singapore.More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. Business Bloomberg 210520 10h11m Swedish Brothers Ride Oat Milk Boom to $562 Million Fortune (Bloomberg) -- It began with a group of scientists and a wild idea: That the byproduct remaining after making oat bran could be turned into non-dairy milk.That idea became the foundation of Oatly Group AB, the Swedish oat milk company that debuted Thursday in New York after raising $1.4 billion in an initial public offering.The share sale cements the fortunes of one of the scientists, Rickard Oste, and his brother Bjorn Oste, who co-founded the Malmo-based company. The American depositary shares climbed to $21.30 at 11:55 a.m. from the IPO price of $17, giving them a combined stake worth $562 million, according to the Bloomberg Billionaires Index. Oatly is now valued at about $12.5 billion.“It’s a 20-year-old overnight success story,” Bjorn, who remains an Oatly board member, said last year in an interview with William Hood & Co., a boutique investment bank.‘A Lunatic’Rickard, a professor of food chemistry, had for years focused some of his research on lactose intolerance and toyed with the idea of developing an oat-based milk substitute. By the mid-90s, he and a team at Sweden’s Lund University had developed a prototype. Bjorn, an engineer by training, joined his older brother’s venture in 1997 after selling a computer security company he’d built with friends from his high school and college days.His friends were skeptical of his career change, he said in the interview: “They all wrote me off as a lunatic.”In 2001, after the product had been released through various partnerships, the brothers launched Oatly as a separate brand. The company developed a small but devout following of consumers and grew slowly. It had less than 100 employees in 2015, according to a Lund University case study of the firm.Chief Executive Officer Toni Petersson, who was hired in 2012, helped develop the company’s cheeky branding and focus on environmental consciousness. Its products were first available in the U.S. in 2017 and can now be found in more than 20 countries.Blackstone StakeOatly’s largest shareholder -- a joint venture between Belgium-based investment firm Verlinvest SA and China Resources, a state-owned conglomerate -- will control roughly 48% of the company’s shares after the offering is completed, the prospectus shows. Blackstone Group Inc. owns a stake of about 7%.The company’s success was anything but certain, but that didn’t deter them, Bjorn said in the interview.“It was a cool thing and we like challenges,” he said. “We have a saying, my brother and I: ‘If it’s hard and difficult, that’s good. Then we’re going to do it.’”(Updates net worth in headline and 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. Howell date : 210520 10h15m29s Business Reuters 210520 10h07m UPDATE 1-Sudan's central bank launches foreign currency auctions Sudan's central bank is launching a system of foreign currency auctions as part of its flexible but managed floatation of the Sudanese pound, it said on Thursday. The new system, which would apply only to importers, comes as the official and black market rates have begun to widen slightly over the past month after being brought in line by a devaluation in February. "It is still too early to judge the results of the macroeconomic policy, including the unification of the exchange rate," the bank said in a statement. Business Reuters 210520 10h06m U.S. Treasury says can shrink $7 trillion 'tax gap' by 10% over next decade The U.S. Treasury Department on Thursday said its plans to invest in new Internal Revenue Service tax compliance efforts will shrink by about 10% the "tax gap" now estimated at $584 billion in 2019. The tax gap -- the difference between taxes legally owed and those collected by the IRS -- is expected to grow to $7 trillion over the next decade, or about 3% of U.S. GDP, the Treasury said in a new policy paper. The Treasury said the Biden administration's proposal to invest $80 billion in IRS enforcement over that same period would raise $700 billion in new revenues over a decade, an estimate that it called "conservative." World Reuters 210520 10h04m UPDATE 1-U.S. land border restrictions extended with Canada, Mexico United States land borders with Canada and Mexico will remain closed to non-essential travel until at least June 21, the U.S. and Canadian governments said on Thursday. The restrictions were first imposed in March 2020 in response to the COVID-19 pandemic and have been extended in 30-day increments. "We're working closely with Canada & Mexico to safely ease restrictions as conditions improve," the U.S. Homeland Security Department said on Twitter. Business Bloomberg 210520 10h03m Oatly Jumps 30% in Debut After Raising $1.4 Billion in U.S. IPO (Bloomberg) -- Oatly Group AB, the vegan food and drink maker, jumped in its debut after pricing its initial public offering at the top of a marketed range.Shares opened at $22.12 in New York, a 30% jump from their $17 IPO price. The company and its investors sold more than 84 million American depositary shares on Wednesday, raising more than $1.4 billion. The Swedish company had offered the shares for $15 to $17 each.At $22.12, Oatly has a market value of about $13.1 billion, based on the outstanding shares listed in its filings with the U.S. Securities and Exchange Commission.In July, it secured $200 million in new capital from investors led by Blackstone Group Inc. The group also included celebrities such as Oprah Winfrey and Jay-Z, as well as former Starbucks Corp. founder Howard Schultz. The company was valued at about $2 billion in that round.The IPO underscores plant-based products’ jump into the mainstream, as environmental and health concerns spur consumers to seek alternatives to traditional meat and dairy products. Investors have been looking for ways to replicate the public-market success of Beyond Meat Inc., whose shares have surged more than 300% since it went public in May 2019.Oatly’s biggest obstacle might be its own popularity. Since its entrance into the U.S. market in 2017, finding Oatly in coffee shops and supermarkets has become something of a treasure hunt for shoppers.The company opened a $15 million Millville, New Jersey, plant in 2019 to help meet the growing demand, but even now, shortages are frequent, as Covid-related delays have kept a planned second U.S. production from coming online.In March, supermarkets across the U.S. -- and even its big new customer Starbucks -- reported trouble procuring orders.While the current shortage won’t end overnight, chief executive officer Toni Petersson sounded an optimistic note.Fulfilling Orders“This year, we will bring on board new capacity every single quarter,” he said in an interview ahead of the first trade. The company is expanding its Netherlands plant, putting out commercial products from its Utah plant, and is doing test runs in Singapore, where the factory will be “up and running” in the second quarter, he said.For now, Oatly is only filling 70% of orders in its key markets, so it is “not really” taking on new customers, Petersson said, adding that the gap is between supply and orders, not supply and demand. “First we will close the gaps, then expand with new retail partners,” he added.Oatly was started in 1994 by brothers Rickard and Bjorn Oste. Using technology based on research from Sweden’s Lund University, the company turns fiber-rich oats into liquid food.Oatly’s offering was led by Morgan Stanley, JPMorgan Chase & Co. and Credit Suisse Group AG. The shares are trading on the Nasdaq Global Select Market under the symbol OTLY.More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. Business Reuters 210520 10h02m NFT enthusiasts hold firm despite crypto price plunge This week's cryptocurrency price plunge eroded the dollar-based value of NFTs and raised the cost of buying and selling them, in what could be a setback for the burgeoning digital asset market. The sudden boom is partly attributed to 2020's crypto price surge; NFTs are usually bought with the cryptocurrency ether or dollars. NFT prices are normally listed on marketplaces in ether, meaning sellers may adjust prices higher to keep them constant in dollars. Business Bloomberg 210520 09h59m FirstGroup’s No.2 Shareholder Schroders Opposes U.S. Sale (Bloomberg) -- Schroders Plc said it will vote against FirstGroup Plc’s $4.6 billion sale of two U.S. bus divisions to EQT Infrastructure, raising questions about the success of the deal with the London-listed transport firm’s two biggest investors now opposed to it.Schroders is FirstGroup’s second-largest investor with a holding of close to 12%, according to data compiled by Bloomberg. Its decision lends support to Coast Capital Management LP, which owns almost 14% and has said the sale should be voted down unless terms are substantively improved.“We appreciate this has been a very difficult period in which to carry out a sales process,” a Schroders spokesperson said in a statement Thursday in response to Bloomberg queries. “However, after careful consideration of the merits of the proposed sale of First Student and First Transit, we have the intention of voting against the deal as it stands, as we believe it undervalues these businesses.”FirstGroup agreed in April to sell the biggest operator of America’s iconic yellow school buses, retreating from a global expansion. If the deal is approved, Stockholm-based investment firm EQT would acquire First Student, which serves 1,000 school districts, and First Transit, an operator of bus services across more than 300 locations.Schroders, which normally engages with companies behind closed doors, is making a rare public stand against the deal in a move that could galvanize opposition from other investors. The fund manager said it continues to have “full confidence” in FirstGroup Chairman David Martin “to provide the necessary leadership and vision for the ongoing business.”Full ValueFirstGroup said Thursday the sale achieves “full value” that looks beyond the effects of the pandemic. The agreement with EQT followed a “comprehensive and competitive process” involving discussions with more than 40 potential buyers, it said in a statement. Shareholders are due to vote on the deal May 27.“We believe this board is in clear breach of fiduciary responsibilities in refusing to explore higher bids,” James Rasteh, partner and chief investment officer at Coast Capital, said in an email.The transaction would mark a breakup of FirstGroup, whose international strategy prompted a pressure campaign that lasted more than two years and cost its chairman his job. It decided before the pandemic to sell the U.S. businesses, after activists including Coast Capital said the assets would be worth more sold off. The bulk of proceeds will be used to fund its U.K. operations and pay down debt.“The raging war of words between FirstGroup and its largest shareholder shows no sign of abating,” Josh Rosen, a special situations analyst at United First Partners LLC, said by email Thursday. “Despite the insistence from proponents of the transaction as to the scarcity of alternative strategic options, we expect next Thursday’s vote to go the wire.”(Adds quote from Coast Capital partner in seventh 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. Howell date : 210520 09h44m53s Business Reuters 210520 09h35m Dufry positive about summer travel as it waits for Europe to reopen Swiss duty free retailer Dufry said on Thursday it sees "encouraging signs" for a pick up in foreign travel this summer after pandemic restrictions drove a 67% plunge in first-quarter underlying turnover. "We expect sales capacity of 75% open by the end of June," Chief Executive Officer Julian Diaz said on a conference call, adding that he expects that to rise close to 80% by the summer. The Basel-based company said vaccination campaigns and an easing of restrictions were beginning to boost foreign travel, a trend it expected to continue. Business Yahoo Finance Video 210520 09h28m The economy is on an accelerating trend for recovery: Strategist
 Diane Jaffee, TCW Group Managing Director and Senior Portfolio Manager joins the Yahoo Finance Live panel with the latest on the markets. Business Bloomberg 210520 09h26m Apollo Co-Founder Harris Steps Back After Missing Out on CEO (Bloomberg) -- For Josh Harris, the end of his three decades as a dealmaker at Apollo Global Management Inc. came swiftly.Just four months after he was passed over for the top job at the private equity giant, Harris threw in the towel and relinquished his day-to-day role.Harris’s departure will be finalized when Apollo’s acquisition of Athene Holding Ltd. is completed early next year, the firm said in a statement Thursday. He’ll continue as an Apollo director and on the board’s executive committee.The firm tapped Marc Rowan earlier this year to succeed Leon Black as chief executive officer. Harris has since given up day-to-day handling of operations and been less involved in dealmaking, Bloomberg News reported last month.“It is time for me to start the next chapter of my career, where I will focus full-time on the platforms I’ve created outside of the firm,” Harris, 56, said in the statement. His outside interests include his stakes in the NBA’s Philadelphia 76ers and the New Jersey Devils hockey team and the family office that manages his estimated $6.6 billion fortune.The past year has been a tumultuous one for Apollo. Black’s financial ties with sex offender Jeffrey Epstein threatened fundraising as some investors put their commitments on hold. Harris’s shift could further complicate efforts to move on from the drama because he’s a “key man” on Apollo’s flagship buyout fund, which means investments would be put on pause without him.“You need some stability from management,” Jerry O’Hara, an analyst as Jefferies Financial Group Inc., said prior to the announcement. He noted that the initial shock of Black’s exit was blunted because the two other active co-founders -- Harris and Rowan -- were remaining.Giving up daily responsibilities was a stark change for Harris, who for three decades has been known for working marathon hours and making his presence known throughout the New York-based private equity firm, running operations and pressing employees on the details of their deals.Two months ago, Harris signed a new three-year employment agreement with Apollo which detailed his role at the time . Under the contract, Apollo didn’t have the right to terminate him except for cause or disability, while Harris could end it “at any time.”The pact, quietly disclosed in a regulatory filing earlier this month, diminished his role, largely turning him into an Apollo ambassador and strategist. Among the tasks Harris was given included bolstering relationships with clients, becoming an external liaison to the media and focusing on diversity at Apollo.The contract did call for Harris to participate in Apollo’s largest investment transactions and serve as the chairman of a new biweekly private equity transaction committee that would review transactions before they were brought to Apollo’s full investment committee, according to the agreement.Relationship With BlackFor years, Harris had positioned himself as Black’s most likely successor, frequently representing Apollo at conferences and in the media. He was seen as having a tighter relationship with Black, 69, and deemed the top contender for the role.But Black surprised insiders in January by handing the top job to Rowan, after Harris privately urged Black to give up his posts to avoid further damaging Apollo’s reputation, Bloomberg has reported.An outside review found that Black paid Epstein $158 million from 2012 to 2017 for tax and estate planning services. Those payments came after Epstein’s 2008 conviction for soliciting prostitution from a teenage girl. Black has never been accused of involvement in his criminal activities and Apollo has said it never did business with Epstein.Read more: Black’s Apollo Exit Follows ‘Deeply Trying’ Fallout Over EpsteinFor the last several months Harris, who publicly backed the decision to make Rowan CEO, his approval was sought only on the biggest deals. Now as he exits, he’s also considering making Florida his primary residence, which could reduce his tax burden if he opts to begin liquidating his stake in the firm.Black, Rowan and Harris had an enduring partnership, working alongside one another for more than three decades. Their careers first intersected at Michael Milken’s junk bond shop, Drexel Burnham Lambert. In 1990, the three helped found Apollo, with Black at the helm.Successful BetsThrough the years, Harris built a reputation as a successful dealmaker and investor. He played a hand in some of Apollo’s most successful bets, such as LyondellBasell Industries NV, a Dutch chemicals maker. Just before the company went bankrupt in 2009, Apollo bought up discounted debt, leading to a windfall for the firm.While Rowan was seen as the quiet strategist in the background, Harris had become the face of the firm. A competitive wrestler in college, he devoted his free time to investing in and managing professional sports teams. In addition to the Philadelphia 76ers and New Jersey Devils, Harris has ownership interests in Crystal Palace and the English Premier League soccer club.Fund PerformanceApollo is seeking to invest a $24.7 billion buyout fund it raised in 2017. If Harris leaves before the fund is finished investing, that would trigger a pause, unless two-thirds of investors agree to continue.That fund is about 62% committed, Rowan said in a memo to employees Thursday seen by Bloomberg.Rowan said the firm will update investors “on our progress and performance as we prepare for a likely launch of Fund X in 2022, as well as proactively address ‘key person’ matters.”Apollo’s private equity funds were up 22% at the end of the first quarter, Rowan said in the memo, adding that “between now and closing of the (Athene) merger, investment approvals and oversight will continue according to the existing process.”Apollo oversaw $461 billion of assets as of March 31.“Now is the right moment for this transition,” Harris said in a separate memo seen by Bloomberg. “As I move on, I will continue to be one of the company’s largest shareholders, supporters and advocates.”(Adds details from Harris’s employment agreement in ninth through 12th paragraphs.)More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. World Reuters 210520 09h26m Israeli carrier El Al to slash jobs as deepens cost cuts El Al Israel Airlines said on Thursday it was cutting 1,900 jobs as part of a broader plan to recover from the impact of COVID-19, even as its net loss narrowed in the first quarter due to steep cost-cutting measures. Israel's flag carrier reported an $86 million loss in the January-March period, versus a net loss of $140 million a year earlier. El Al, which has new ownership and management, has reported losses for three years and racked up debt to renew its fleet. World Reuters 210520 09h25m Kenya seeks alternatives to AZ COVID vaccine after delays Kenya's health ministry said it is in talks with vaccine manufacturers such as Johnson and Johnson as it seeks alternatives to the AstraZeneca COVID-19 shot after shipment delays of the drug from India. Kenya received a batch of AstraZeneca shots through vaccine sharing platform COVAX, which supplies doses to low-income countries and depends on India's Serum Institute's exports of AstraZeneca drugs. Business Reuters 210520 09h17m India's Bharat Biotech to produce additional 200 mln COVID-19 vaccine doses per year India's Bharat Biotech on Thursday said it would ramp up the production of its COVID-19 vaccine by an additional 200 million doses per year. The additional doses of the vaccine, called Covaxin locally, would be manufactured at the company's plant in Gujarat and would be available by the fourth quarter of 2021, the drugmaker said. Business Reuters 210520 09h14m Google to open first physical store in New York this summer The Google store will be located in the city's Chelsea neighborhood near the its New York City campus, which houses over 11,000 employees. Google, which has set up pop-up stores in the past to promote its products, said it would sell Pixel smartphones, Pixelbooks and Fitbit fitness trackers along with Nest smart home devices at the retail outlet. Howell date : 210520 09h14m16s Business Reuters 210520 09h03m After verification freeze, here's how you can get Twitter's blue check mark Twitter users can once again apply to be verified after a years-long freeze on public submissions for the site's blue check marks, though the company said only "notable" users would be awarded the badge. The social media company paused public submissions for these badges in 2017 amid criticism that its verification program was arbitrary and confusing. It said at the time the check mark was being confused with "an endorsement or an indicator of importance". Business Bloomberg 210520 08h51m Soros Scores With Short Bet on Ticket Broker in U.K. Rail Revamp (Bloomberg) -- George Soros, whose wager against the British pound in 1992 netted him a $1 billion windfall, has found another profitable, albeit smaller, short bet in the U.K.The British arm of the 90-year-old investor’s Soros Fund Management held a 0.7% short interest in Trainline Plc as of March 25, according to U.K. regulatory filings.The online ticket broker lost more than 20% of its value on Thursday after the U.K. said it would roll out an app as part of its rail-system overhaul that would compete with Trainline’s. The London-based company’s shares sank as much as 33% before recovering some of their losses.The ticketing changes are part of a rail-network overhaul meant to simplify, digitize and centralize the world’s oldest rail system. Along with flexible pricing plans, a new public body called Great British Railways to better integrate the fragmented train network.Read: U.K. Rethinks Its Railway as Virus Transforms Commuter TravelSome investors “might see this as competitor to Trainline,” said Berenberg analyst Owen Shirley, referring to the government-backed app. While train companies already had their own websites, “it’s arguable that a one-stop shop makes it a slightly more credible competitor.”Shirley also said that there could be concerns over whether the new plans would mean changes to the commission that Trainline earns on tickets, which is “far and away the biggest factor” weighing on the stock.The rail overhaul has been in the works for some months prior to announcement of the details late Wednesday. At the time of its disclosure, SFM UK Management LLP’s short holding had a value of about $15.3 million.Read more: Soros’s Money Managers in U.K. Poised for $38 Million Payday A U.S.-based spokesman for Soros Fund Management declined to comment. The company manages $27 billion, almost all of it belonging to Soros’s Open Society Foundations.Citadel Europe LLP and Paloma Partners Management Co. are among the funds that also had declared short positions in Trainline.Growth OpportunitiesShares of Trainline sank the most since the company went public in June 2019. They were down 23% as of 3:44 p.m. in London, reflecting a 473 million-pound ($670 million) drop in market value.In a statement on Thursday, Trainline said it was supportive of the plan for Britain’s railways, and that the recommendations were “broadly in line” with the company’s expectations.Chief Executive Efficer Jody Ford said the introduction of flexi tickets and digital season tickets “will provide new growth opportunities,” adding that Trainline’s app was “a huge differentiator and difficult to replicate.”Speaking in Parliament, Transport Secretary Grant Shapps said the new plan will not expose commuters to new fare hikes.“The announcement today doesn’t change how fares have been capped up until now,” Shapps said. “All of those regimes will remain in place.”(Writes through to reflect Soros bet from first 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. Business Bloomberg 210520 08h50m Techs Lead U.S. Equity Rebound After Jobs Report: Markets Wrap (Bloomberg) -- Technology companies led a rebound in U.S. equities on Thursday after a report showing applications for state unemployment insurance fell last week to a fresh pandemic low rekindled optimism in the economic recovery.The Nasdaq 100 Index led all of the main U.S. benchmarks higher, with gains in megacaps Apple Inc., Microsoft Corp. and Tesla Corp. driving the advance. Tech stocks rallied the most in the S&P 500, with nine of the main 11 industry groups climbing. Cisco Systems Inc. fell as its profit forecast missed estimates. European equities rebounded from a two-week low as carmakers and financial-services firms led gains. Cryptocurrencies rose after wild swings in Bitcoin on Wednesday.The latest jobs report comes after mounting concern that faster inflation will prompt authorities to ease back on stimulus has weighed on risk assets in recent sessions. Minutes from the Federal Reserve’s last meeting showed some officials were open to a debate at “upcoming meetings” on scaling back bond purchases if the U.S. economy continued to progress rapidly.“While inflation has been the star of the show, keep in mind that the Fed’s mandate is twofold, with employment as the other side,” said Mike Loewengart, managing director of investment strategy at E*Trade Financial. “The jobless claims read shows once again that that we’re heading in the right direction, but we’re a ways away from where we were pre-pandemic.”Oil reversed an earlier gain, extending a three-week low after Iran’s president said the broad outline of a deal to end sanctions on its oil had been reached. Yields on 10-year Treasuries fell as the dollar weakened.Elsewhere, copper advanced after Wednesday’s slump, helped by expectations that demand would remain resilient. Iron ore futures slid. The Bloomberg Commodity Index fell for a third day.Here are some key events this week:Data on existing U.S. home sales for April are due on May 21Euro-area finance ministers and central bank chiefs hold an informal meeting. A larger group of EU finance ministers and central bank chiefs will meet May 22These are some of the main moves in markets:StocksThe S&P 500 rose 0.8% as of 10:46 a.m. New York timeThe Nasdaq 100 rose 1.6%The Dow Jones Industrial Average rose 0.4%The Stoxx Europe 600 rose 1.1%The MSCI World index rose 0.7%CurrenciesThe Bloomberg Dollar Spot Index fell 0.3%The euro rose 0.3% to $1.2211The British pound rose 0.3% to $1.4153The Japanese yen rose 0.4% to 108.83 per dollarBondsThe yield on 10-year Treasuries declined three basis points to 1.64%Germany’s 10-year yield was little changed at -0.11%Britain’s 10-year yield was little changed at 0.85%CommoditiesWest Texas Intermediate crude fell 0.8% to $63 a barrelGold futures fell 0.2% to $1,878 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. Business Reuters 210520 08h50m UPDATE 1-Bank of Canada says cryptoassets' volatility is obstacle to payment acceptance Price volatility is keeping cryptoassets from being widely accepted as a means of payment, the Bank of Canada said on Thursday, though the markets' rapid evolution is an emerging vulnerability to Canada's financial system. Despite the broadening interest, cryptoassets like bitcoin and other cryptocurrencies remain high risk as their intrinsic value is hard to establish, the Bank said in its annual review of Canada's financial systems. "Price volatility stemming from speculative demand remains an important obstacle to the wide acceptance of cryptoassets as a means of payment," it said. Business Yahoo Finance Video 210520 08h46m Petco CEO: ‘We have the only full ecosystem for pet parents’ Petco CEO, Ron Coughlin, joins Yahoo Finance to breakdown Q1 earnings and how these earnings are only the beginning as Petco plans to use this momentum to add on to their growth for the future. Business Bloomberg 210520 08h33m Oil Pares Losses With Broader Market Rally Offsetting Iran Talks (Bloomberg) -- Oil pared declines as positive U.S. labor market data offset the potential that a renewed nuclear deal with Iran will bring more barrels to the market.Futures were down 1.3% in New York after falling as much as 1.9% earlier on Thursday. U.S. initial jobless claims fell last week to a fresh pandemic low, highlighting the labor market recovery underway in the world’s largest oil-consuming country. The S&P 500 Index gained, while the dollar weakened, boosting the appeal of commodities priced in the currency.“The recovery in U.S. equities following jobs data and a weaker dollar” is helping support crude prices, said Phil Streible, chief market strategist at Blue Line Futures LLC in Chicago. Jobs data will “get a lot better, and with more people going back to work, it has a snowball effect of more driving.”Still, the oil market hasn’t shaken off concern the Iran nuclear pact will be revived, which could see U.S. sanctions removed on the Persian Gulf country’s exports. President Hassan Rouhani struck an optimistic tone in comments released by Iranian state television, saying the deal would see oil, shipping, insurance and central bank sanctions lifted. But he said there are still some issues to be discussed, and his remarks largely echoed those from European Union officials on Wednesday.The prospect of a return of supply from the OPEC member is being reflected in Brent’s prompt timespread, with its backwardation narrowing to just a few cents, a sign that market tightness may be easing.Brent has struggled to sustain a move higher after briefly topping $70 a barrel earlier in the week. The market has been rattled by the outlook for Iranian production, though a timeline for a deal remains unclear. The Persian Gulf nation has already been boosting its exports ahead of a potential agreement, and India’s largest refiner said it will definitely restart buying Iranian oil once U.S. sanctions are lifted.“There continue to be positive statements out of Vienna from various participants, including Iran, that a deal is at hand,” said John Kilduff, a partner at Again Capital LLC. “Even though we know they have already been ramping up their exports, it is adding to negative market sentiment.”Enrique Mora, the EU official in charge of coordinating diplomacy in Vienna for the nuclear talks, said he expects all parties to return to the 2015 agreement before Iran’s presidential elections on June 18. Citigroup Inc. sees an initial 500,000-barrel-a-day increase in supply from around the middle of the third quarter.Meanwhile, volatility is creeping back into the market after a choppy week in which global benchmark futures have swung in a roughly $5 range after topping the $70-a-barrel mark. A measure of market volatility is at the highest since early 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. Howell date : 210520 08h43m40s Business Bloomberg 210520 08h32m Techs Lead U.S. Equity Rebound After Jobs Report: Markets Wrap (Bloomberg) -- Technology companies led a rebound in U.S. equities on Thursday after a report showing applications for state unemployment insurance fell last week to a fresh pandemic low rekindled optimism in the economic recovery.The Nasdaq 100 Index led all of the main U.S. benchmarks higher in early trading, led by Apple Inc., Microsoft Corp. and Tesla Corp. Seven of the main 11 S&P 500 industry groups climbed, with tech stocks rallying the most. Cisco Systems Inc. fell as its profit forecast missed estimates. European equities rebounded from a two-week low as carmakers and financial-services firms led gains. Cryptocurrencies rose after wild swings in Bitcoin on Wednesday. The latest jobs report comes after mounting concern that faster inflation will prompt authorities to ease back on stimulus has weighed on risk assets in recent sessions. Minutes from the Federal Reserve’s last meeting showed some officials were open to a debate at “upcoming meetings” on scaling back bond purchases if the U.S. economy continued to progress rapidly.“While inflation has been the star of the show, keep in mind that the Fed’s mandate is two-fold—with employment as the other side,” said Mike Loewengart, managing director of investment strategy at E*Trade Financial. “The jobless claims read shows once again that that we’re heading in the right direction, but we’re a ways away from where we were pre-pandemic.”Oil reversed an earlier gain, extending a three-week low after Iran’s president said the broad outline of a deal to end sanctions on its oil had been reached. Yields on 10-year Treasuries fell as the dollar weakened.Elsewhere, copper advanced after Wednesday’s slump, helped by expectations that demand would remain resilient. Iron ore futures slid. The Bloomberg Commodity Index fell for a third day.Here are some key events this week:IMF Managing Director Kristalina Georgieva and ECB President Christine Lagarde speak at the Vienna Economic Dialogue ThursdayEuro-area finance ministers and central bank chiefs hold an informal meeting. A larger group of EU finance ministers and central bank chiefs will meet May 22These are some of the main moves in markets:StocksThe S&P 500 rose 0.7% as of 10:29 a.m. New York timeThe Nasdaq 100 rose 1.4%The Dow Jones Industrial Average rose 0.3%The Stoxx Europe 600 rose 1%The MSCI World index rose 0.7%CurrenciesThe Bloomberg Dollar Spot Index fell 0.4%The euro rose 0.3% to $1.2214The British pound rose 0.3% to $1.4155The Japanese yen rose 0.4% to 108.82 per dollarBondsThe yield on 10-year Treasuries declined three basis points to 1.64%Germany’s 10-year yield was little changed at -0.11%Britain’s 10-year yield was little changed at 0.85%CommoditiesWest Texas Intermediate crude fell 0.9% to $63 a barrelGold futures fell 0.2% to $1,878 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. Business Reuters 210520 08h32m Morgan Stanley investors back bank directors, executive pay packages Morgan Stanley shareholders voted overwhelmingly to elect all bank directors and approve the bank's executive compensation packages, according to a preliminary tally of the shares cast at the firm's annual meeting on Thursday. Roughly 97% of shares were cast in support of the directors and 96% of shares were cast in support of the executive compensation plan. Morgan Stanley's Chief Executive James Gorman's 2020 annual pay rose by $6 million, or 22%, from 2019. Business Bloomberg 210520 08h28m UBS, Nomura Hit Hardest as EU Fines Crisis-Era Bond Cartel (Bloomberg) -- UBS Group AG and Nomura Holdings Inc. and UniCredit SpA were fined a total of 371 million euros ($452 million) by the European Union for colluding on euro government bond trading during the region’s sovereign debt crisis.UBS was fined 172 million euros and Nomura will have to pay 129.6 million euros for a traders’ cartel that swapped commercially sensitive information from 2007 to 2011 when euro region bond yields soared. UniCredit was fined 69 million euros.It was “unacceptable, that in the middle of the financial crisis, when many financial institutions had to be rescued by public funding these investment banks colluded in this market at the expense of EU member states,” Margrethe Vestager, the EU’s antitrust chief, said in an emailed statement.The EU has spent more than a decade probing how bank traders swapped information in chatrooms, leading to billions of euros in fines. At the same time it approved billions of euros in government support to keep many European lenders alive during the financial crisis.Vestager’s criticism seems to be aimed at two banks that weren’t fined. A Royal Bank of Scotland Group Plc unit escaped a fine because it was the first to tell regulators. It received a U.K. bailout in 2008. Portigon AG, the successor bank to bailed-out and failed German lender WestLB, avoided a levy because it had no revenue last year.Bank of America Corp. and Natixis SA participated in the cartel but weren’t fined because they had quit the cartel five years before the EU started its probe. The finding against them means they would be seen as repeat offenders and would face higher fines from any future EU cartel. Institutional investors could also sue all members of the cartel for damages.AppealsUBS said the fine could hurt second-quarter results by as much as $100 million. It’s considering an appeal and has “taken appropriate action years ago to mitigate and improve processes,” it said in a statement.Nomura said the fine “relates to historic behavior” by two former employees “for an approximate 10-month period in 2011.” The fine won’t have an impact on the current financial year and the bank has made provision for the levy. The bank “will consider all options, including an appeal” and “has introduced increased measures to ensure that we conduct our business with the highest levels of integrity,” it said in an emailed statement.UniCredit “vigorously contests” the fine and will appeal to the EU courts, it said in a statement. The bank “maintains that the findings do not demonstrate any wrongdoing.”The EU said traders on European government bond desks, and mostly in London, were in regular contact, mainly on chatrooms, where they “informed and updated each other on their prices and volumes offered in the run-up” to euro zone government bond auctions “and the prices shown to their customers or to the market in general.”The EU didn’t seek to show that traders’ actions affected bond yields, with their case focusing on the illegality of sharing commercially sensitive information.Citigroup Inc., RBS and JPMorgan Chase & Co. were among five banks that agreed in 2019 to pay EU fines of over 1 billion euros for colluding on foreign-exchange trading strategies. The EU is still investigating some banks for a related cartel.Bank of America, Credit Suisse Group AG and Credit Agricole were fined about 28.5 million euros last month over chatrooms where traders swapped information on trading of U.S. supra-sovereign, sovereign and agency bonds.(Updates with detail on cartel from sixth 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. Business Reuters 210520 08h26m U.S. chicken producer charged with price-fixing Claxton Poultry Farms Inc has been indicted in Colorado on charges of price-fixing broiler chickens produced for sale to restaurants and grocery stores, the U.S. Justice Department said on Thursday. The company's president, Mikell Fries, and vice president, Scott Brady, were previously indicted for their roles in a nationwide conspiracy to fix chicken prices from 2012 to 2019. If found guilty, Claxton could be fined $100 million or twice what it gained from participating in the price-fixing. Business Reuters 210520 08h24m EMERGING MARKETS-Colombian assets hit by junk status * Fitch predicted to downgrade Colombia this year- GS * Chilean stocks surge on SQM gains By Ambar Warrick May 20 (Reuters) - Colombia's peso and stocks tumbled on Thursday after the country lost one of its three investment-grade ratings, while most other Latin American currencies rose slightly in response to growing concerns over tighter U.S. monetary policy. The peso shed about 0.8%, touching a one-week low to the dollar after S&P Global Ratings lowered Colombia's rating to junk bond status. Analysts said the downgrade had come earlier than anticipated, while Wall Street banks JPMorgan, Morgan Stanley and Goldman Sachs predicted that Fitch would follow suit with a rating downgrade this year. Howell date : 210520 08h13m04s Business Reuters 210520 08h02m CANADA FX DEBT-Canadian dollar gains ground along with higher metal prices * Canadian dollar strengthens 0.5% against the greenback * Price of U.S. oil falls 0.6% * ADP data shows Canada adding jobs for third straight month * Canadian bond yields were mixed across a flatter curve TORONTO, May 20 (Reuters) - The Canadian dollar strengthened against its U.S. counterpart on Thursday as the greenback broadly declined and metal prices rose, while investors awaited comments on the financial system by Bank of Canada Governor Tiff Macklem. Macklem is due to hold a news conference at 11 a.m. ET (1500 GMT) to discuss the Bank of Canada's Financial System Review. It follows data on Wednesday showing Canadian inflation climbing in April at the fastest pace in a decade and above the Bank of Canada's target range of 1% to 3%. Business Bloomberg 210520 07h59m Don’t Fear the Taper: Fed to Dominate Treasury Market for Years (Bloomberg) -- Sign up for the New Economy Daily newsletter, follow us @economics and subscribe to our podcast.Treasury investors fretting about when the Federal Reserve will scale back its bond purchases may be missing the bigger picture: Its more than $5 trillion stockpile will make it a major force for years to come.The prospect of a pullback in buying edged a little nearer Wednesday when minutes of the Federal Open Market Committee’s April meeting showed that a number of officials were willing to discuss it if the economy keeps improving. Yields rose on the news.But bond bulls say the Fed’s virtually inextricable presence in the world’s largest bond market means it will provide crucial support long after any price blips come and go when it brings the buying spree to a close.The central bank’s Treasury holdings have doubled since March 2020, accounting for nearly one-quarter of the total outstanding, a bigger share than it held even after the 2008 credit crisis. It’s a result of aggressive moves to keep the market functioning and hold down rates on everything from mortgages and car loans to corporate and municipal bonds.“The Fed will have a big hand in fixed-income markets for as far as the eye can see,” said Matt Nest, portfolio manager and global head of active fixed income for State Street Global Advisors.The stake is so large that even once the Fed’s purchases wind down, it is expected to keep its holdings steady by buying new Treasuries whenever old ones mature, reducing the amount that would need to be sold to the public. That’s given some investors confidence that rates won’t rise too quickly -- or by too much -- even as yields head back toward the approximately 14-month high hit in March amid fears the economy is at risk of overheating.“The Fed is definitely not going anywhere anytime soon with regard to the Treasury market,” said Mike Pugliese, an economist at Wells Fargo Securities, which predicts the Fed will begin tapering its purchases in January 2022 and end them around November.But he expects the central bank to keep its stake steady through the next four years. “The Fed is going to comfortably hold between 20% to 25% of the Treasury market, remaining the largest holder of Treasuries, until about 2025,” he said.That backdrop, combined with the prospect the government’s debt managers will cut note and bond auctions later this year as the economy rebounds, is helping to keep yields low despite the sharp pickup in growth and rising consumer prices. The Treasury’s net private borrowing of notes and bonds will fall next year to $1.99 trillion, from $2.75 trillion this year, according to JPMorgan Chase & Co.The central bank’s holdings of Treasuries have been growing by $80 billion a month, and it’s also adding $40 billion in mortgage debt to its balance sheet. That’s left it on course to buy a total of $960 billion of Treasury notes and bonds in the secondary market this year after snapping up $2.18 trillion last year. Strategists at JPMorgan predict the Fed will buy $390 billion more in 2022 before wrapping up its purchases.The minutes of the FOMC meeting reported that “a number of participants suggested that if the economy continued to make rapid progress toward the Committee’s goals, it might be appropriate at some point in upcoming meetings to begin discussing a plan for adjusting the pace of asset purchases.”The prospect of a such a slowdown has sown some consternation. The 10-year Treasury yield rose to the day’s high after the minutes, reaching 1.69% as traders boosted bets on the outlook for Fed rate hikes. Those gains weren’t sustained and the yield has fallen about 2 basis points to 1.65% Thursday.The benchmark yield is just a little more than half the average of the past two decades, and some analysts are confident that Fed Chair Jerome Powell and his colleagues will take a cautious approach to winding down quantitative easing.“The Powell Fed is skittish about touching any aspect of its balance sheet, which is why it’ll be slow to slow asset purchases and will never sell securities outright on the back end of QE,” said former Fed official and Mellon chief economist Vincent Reinhart.Peter Yi, head of taxable credit research at Northern Trust Asset Management, thinks there’s limited upside to long-term Treasury yields. He expects the 10-year yield to swing between 1.25% and 1.75% through the rest of 2021 and has been buying when yields back up. Percolating inflation, with U.S. consumer prices climbing in April by the most since 2009, will prove temporary, he added.“The Fed has tools in their toolkit that they are going to use if they absolutely need to do it to prevent 10-year yields from jumping dramatically and in a disorderly way,” Yi said.The last time the Fed began to pull back from asset purchases was from January through October 2014, when it unwound the quantitative easing measures ushered in after the 2008 credit crisis. While Treasury yields rose in 2013 in anticipation of that, the effects were muted, with yields falling in 2014.The Fed was in no rush to unload its bond holdings, however, and kept rolling them into new securities when they matured. In October 2017, the bank began to whittle down its portfolio, only to stop abruptly in September 2019 when it caused mayhem in the overnight lending market.Dan Krieter, a strategist in BMO Capital Markets’ fixed-income strategy group, doesn’t see the Fed shrinking its balance sheet for years.“It’s becoming harder and harder for the Fed to ever extricate itself from the financial system,” Krieter said. “At least for the next five or so years, the Fed isn’t even going to hint at the idea of reducing its balance sheet.”(Updates prices throughout.)More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. Business Bloomberg 210520 07h58m Tencent Joins Alibaba in Spending Spree as Competition Grows (Bloomberg) -- Tencent Holdings Ltd. pledged to sharply increase investments this year after posting a 25% gain in quarterly revenue, joining its biggest rivals in a spending binge that will jack up competition in China’s post-pandemic internet arena.China’s three largest tech corporations are vying to entice users in the fast-growing arenas of online commerce and video. Tencent said Thursday it plans to invest a larger portion of its incremental profits this year in areas including cloud services, games and short-form video content, joining Alibaba Group Holding Ltd. and Meituan in telegraphing sharp hikes of investment in hot arenas. Tencent is trying to sustain growth in revenue, which climbed to 135.3 billion yuan ($21 billion) in the three months ended March, roughly in line with analyst estimates.The increased spending comes as Tencent faces competition from the likes of ByteDance Ltd. and growing scrutiny from Beijing. Pony Ma’s company has largely escaped the antitrust crackdown for now -- despite its ubiquitous WeChat app offering unrivaled insights into all aspects of Chinese life and a commanding lead in gaming, music and social media markets. But its fintech arm, alongside those of other giants such as Didi and Meituan, faces wide-ranging restrictions similar to the ones imposed upon Jack Ma’s Ant Group Co.Executives sought to assuage investor concerns, reiterating that Tencent remains very focused on risk management and has been “self-restrained” on the size of its non-payment financial products. “When we look into the internal review, and when we look into what other things that need to be done in order to make sure that we are compliant with the spirit of the regulators, it’s actually relatively manageable,” President Martin Lau told analysts on a conference call Thursday.The company also reiterated earlier-disclosed plans to invest 50 billion yuan in its so-called social values initiative, where it will fund philanthropic efforts in areas such as education, rural revitalization and carbon neutral -- areas that align firmly with Chinese President Xi Jinping’s priorities.For a live blog on Tencent’s earnings, click here.Shares of Naspers and its unit Prosus, Tencent’s largest shareholders, rose more than 2% after the earnings.The Chinese giant’s stock was little changed before reporting results, having shed roughly $200 billion in market value since its January peak, part of a broader tech selloff that had investors weighing the potential fallout for the online juggernaut. Apart from fintech, competitors have long argued WeChat -- now venturing into short videos and e-commerce -- is locking users inside its ecosystem by blocking links to external services. Portfolio startups like Yuanfudao and Shixianghui have been penalized for unfair price tactics and other anti-competitive behaviors. Its music spinoff faces heightened scrutiny over exclusive dealings with record labels.Net income came in at 47.8 billion yuan in the March quarter, buoyed by 19.5 billion yuan of gains from the value of investments and disposals. Excluding those gains, adjusted net income came in at 33.1 billion yuan, slightly behind estimates.For now, gaming and social content remain Tencent’s biggest and steadiest cash cows. Online gaming revenue rose 17% during the quarter, helped by mainstay titles like Honour of Kings, PUBG Mobile and Peacekeeper Elite as well as newer games including Moonlight Blade Mobile.The giant announced a pipeline of more than 40 new mobile and PC titles during its annual game showcase Sunday, including those adapted from familiar content like Japanese manga series One Piece and Digimon. Last month the Shenzhen-based company folded its mini-video app, video streaming platform and mobile store into a single business unit, in a bid to pull together resources to build a Marvel-like franchise.As part of its increased spending this year, the company will step up investments in game development and also provide production and monetization tools to content creators as part of efforts to grow its short-form video content.Its fintech and cloud division posted its strongest growth ever, with sales surging 47% as demand for financial services rebounded and as projects delayed by the pandemic resumed deployment. To support the growth of its cloud business, Tencent said Thursday it will boost spending in areas such as headcount and infrastructure.“Tencent’s plan to increase investments in 2021 could dampen margins, and is likely undertaken in part to address increasing competition in areas like cloud computing, online games and short videos, where industry peers have been spending aggressively,” said Bloomberg Intelligence senior analyst Vey-Sern Ling.Online advertising revenue climbed 23% -- the fastest in four quarters -- helped by the consolidation of new subsidiary Bitauto and higher demand from the e-commerce, education and the fast-moving consumer goods industries. But the division could take a hit from potential regulatory headwinds in K-12 education as well as delays to its video releases, according to Tencent.“One class of service providers -- online education platforms -- might pull in some of their advertising as they face tighter regulatory scrutiny,” said Michael Norris, a senior analyst with Shanghai-based market research firm AgencyChina.(Updates with comments on fintech scrutiny in fourth 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. Business Bloomberg 210520 07h57m Bitcoin Claws Back to $42,000 After Crypto Market Meltdown (Bloomberg) -- Crypto markets are showing signs of recovery after Wednesday’s dramatic selloff.Bitcoin hovered near the $42,000 mark and Ether rebounded as investors tried to make sense of the crash that wiped away billions and shattered the notion of crypto as a maturing asset class.“You can’t keep a good dip buyer down for long in the financial markets these days, and cryptos are no different,” said Jeffrey Halley, a senior market analyst at Oanda. “The mass liquidation yesterday will have thinned out the ranks of believers.”Volatility has dominated crypto markets, with Bitcoin plunging and surging more than 30% within a few hours on Wednesday. The carnage kicked off last week, when Tesla Inc. billionaire Elon Musk criticized Bitcoin for wasting energy and backtracked on a decision to allow crypto transactions. Losses accelerated after China warned that digital tokens can’t be used for payments.“It is still our best-performing allocation so far this year even after, you know, a 30% to 40% dislocation,”Troy Gayeski, co-chief investment officer at Skybridge Capital, said on Bloomberg TV. “The key is whatever size at cost you’re comfortable with, let the bull market play out, tolerate the volatility and have confidence that ultimately by the end of this year you will be at a meaningfully higher price.”While all were proximate causes cited for the rout, the liquidation frenzy Wednesday morning was sentiment-driven and disorderly, with the coin dropping thousands of dollars in a matter of minutes. Selling gave way to more selling as investors lured into crypto in search of a quick buck bolted for the exits. It all accelerated when Bitcoin fell below its average price for the past 200 days.On Thursday, the mood in the market was quieter, with traders looking for the next technical levels and speculating whether prices have become oversold. Bitcoin gained 11% to $42,013 as of 9:54 a.m. in New York. Ether added 15% to $2,919.Halley at Oanda said Bitcoin’s round numbers will be important to watch. “$30,000.00 is the line in the sand now, and another capitulation wave will follow if it breaks,” he said, adding that if prices can hold above $40,000, then it’ll draw investors looking to get back into the action.“This market presents opportunities for people now, but I think you will see people wait and let it settle,” said Todd Morakis, co-founder of digital-finance product and service provider JST Capital.More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. Business Bloomberg 210520 07h54m Techs Lead U.S. Equity Reboud After Jobs Report: Markets Wrap (Bloomberg) -- Technology companies led a rebound in U.S. equities on Thursday after a report showing applications for state unemployment insurance fell last week to a fresh pandemic low rekindled optimism in the economic recovery.The Nasdaq 100 Index led all of the main U.S. benchmarks higher in early trading, led by Apple Inc. and Microsoft Corp. Eight of the main 11 S&P 500 industry groups climbed, with tech stocks rallying the most. Cisco Systems Inc. fell after its profit forecast missed estimates. European equities rebounded from a two-week low as carmakers and financial-services firms led gains. Asian shares were little changed.The latest jobs report comes after mounting concern that faster inflation will prompt authorities to ease back on stimulus has weighed on risk assets in recent sessions. Minutes from the Federal Reserve’s last meeting showed some officials were open to a debate at “upcoming meetings” on scaling back bond purchases if the U.S. economy continued to progress rapidly.“While inflation has been the star of the show, keep in mind that the Fed’s mandate is two-fold—with employment as the other side,” said Mike Loewengart, managing director of investment strategy at E*Trade Financial. “The jobless claims read shows once again that that we’re heading in the right direction, but we’re a ways away from where we were pre-pandemic.”Oil reversed an earlier gain, extending a three-week low after Iran’s president said the broad outline of a deal to end sanctions on its oil had been reached. Yields on 10-year Treasuries fell as the dollar weakened. Cryptocurrencies stabilized, with Bitcoin trading higher after Wednesday’s wild swings.Elsewhere, copper advanced after Wednesday’s slump, helped by expectations that demand would remain resilient. Iron ore futures slid.Here are some key events this week:IMF Managing Director Kristalina Georgieva and ECB President Christine Lagarde speak at the Vienna Economic Dialogue ThursdayEuro-area finance ministers and central bank chiefs hold an informal meeting. A larger group of EU finance ministers and central bank chiefs will meet May 22These are some of the main moves in markets:StocksThe S&P 500 rose 0.6% as of 9:50 a.m. New York timeThe Nasdaq 100 rose 1.2%The Dow Jones Industrial Average rose 0.2%The Stoxx Europe 600 rose 0.9%The MSCI World index rose 0.6%CurrenciesThe Bloomberg Dollar Spot Index fell 0.3%The euro rose 0.3% to $1.2212The British pound rose 0.3% to $1.4151The Japanese yen rose 0.4% to 108.81 per dollarBondsThe yield on 10-year Treasuries declined three basis points to 1.65%Germany’s 10-year yield was little changed at -0.10%Britain’s 10-year yield was little changed at 0.85%CommoditiesWest Texas Intermediate crude fell 1% to $63 a barrelGold futures fell 0.4% to $1,874 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. Business Reuters 210520 07h45m UPDATE 1-South African cenbank holds rates, but ready to act on inflation South Africa's central bank left its repo rate unchanged at 3.5% in a unanimous decision on Thursday, saying it saw a risk of higher inflation but that the current lending rate was supportive of the economic recovery. The Reserve Bank (SARB) has now kept rates on hold in its last five meetings, resisting pressure to match rate hikes by fellow emerging market central banks. Howell date : 210520 07h42m27s Business Reuters 210520 07h36m EXCERPTS-South African central bank comments as rates kept on hold Below are some quotes from South African Reserve Bank Governor Lesetja Kganyago on Thursday as he announced the central bank's decision to keep its benchmark repo rate at 3.5%. "Going forward, a stronger exchange rate, ongoing moderation in unit labour costs, and sustained economic slack are expected to offset higher electricity and food price inflation, keeping the headline inflation forecast relatively stable." Business Reuters 210520 07h35m China crypto players shrug off Beijing's latest crackdown China's latest salvo against cryptocurrencies has driven a brutal selloff in bitcoin markets but retail traders, miners and even crypto finance firms reckon Beijing's bark is louder than its bite. China's announcement on Tuesday of a tougher ban on banks and payment companies offering crypto-related services furthered a selloff that briefly wiped $1 trillion off crypto market capitalisation. Cryptocurrencies could still be bought from China on Thursday and investment schemes promising juicy returns for mining them remained operational. Business Reuters 210520 07h25m GLOBAL MARKETS-Stocks digest taper talk; cryptos bounce after beating Europe's stock markets saw a tentative rebound on Thursday and bitcoin bounced more than 12% after one of its spectacular smashes, though tapering talk from the U.S. Federal Reserve kept bond markets under pressure. After Wednesday's drama had seen the main cryptocurrencies shed almost a third of their value at one point and the STOXX 600 suffer one of its worst sell-offs of the year, traders were now watching a recovery unfold. Business Reuters 210520 07h21m India asks WhatsApp to withdraw its new privacy policy - sources India's technology ministry has written to Facebook Inc-owned WhatsApp asking the messenger to withdraw its updated privacy policy, which came into effect on May 15, in its biggest market by users, two government sources said on Thursday. WhatsApp earlier this year said users will have to review its updated terms by Feb. 8 but delayed the rollout of new business features to mid-May following a global user backlash over the company's data-sharing practices. The technology ministry's May 18 letter to WhatsApp also said the government could take legal action against the firm if it did not comply with the provision of India's Information Technology Act, one of the sources said, adding that the company has been asked to respond by May 25. Business Reuters 210520 07h18m LSE, Reuters in talks following dispute over news website paywall London Stock Exchange Group Plc said on Thursday it was in talks with Thomson Reuters Corp over their agreement to distribute news content, following a dispute over whether Reuters News could put up a paywall on its website. Reuters News, a unit of Thomson Reuters, recently announced plans to start charging customers $34.99 per month for news on its website, Reuters.com. The LSE bought financial news and information business Refinitiv, formerly a division of Thomson Reuters. Business Bloomberg 210520 07h18m Colombia’s Dollar Bonds Drop After S&P Cuts Nation to Junk (Bloomberg) -- Sign up for the New Economy Daily newsletter, follow us @economics and subscribe to our podcast.Colombia’s dollar bonds dropped and the peso led losses among emerging-market currencies after S&P Global Ratings cut the country’s credit rating to junk amid a political crisis and mass unrest.The nation’s dollar-denominated bonds due 2031 dropped 0.4% to 96.7 cents in early New York trading Thursday, sending their spread over U.S. Treasuries up to 1.84 percentage points. The peso weakened 2% to 3,760 per dollar.S&P cut Colombia’s sovereign rating one notch to BB+ on Wednesday, after the government’s plan to raise taxes to curb the deficit was blocked by congress and mass street protests in recent weeks.The cost of insuring the nation’s bonds against default with five-year credit default swaps rose to the most since October, as investors see the country as increasingly risky.A bill to increase taxes introduced last month triggered widespread civil disorder and the resignation of the finance minister, and was even opposed by President Ivan Duque’s own party. Even after the bill was withdrawn, highway blockades and street demonstrations have continued across the nation over a range of other grievances.Colombia is still rated at the lowest level of investment grade by Fitch Ratings and two levels above junk by Moody’s Investors Service.Read More: Fallen-Angel History Shows Colombia’s Fear of Junk Is MisguidedWorst PerformersColombian assets have weakened over the past month as investors priced in the increased likelihood of a downgrade. The nation’s dollar bonds are the worst performers in Latin America after El Salvador since the tax bill was introduced.S&P said that its stable outlook for Colombia “incorporates our expectation for an institutional solution to recent and significant social unrest.”The nation’s fiscal deficit will widen to 8.6% of gross domestic product this year according to the government’s forecast, from 2.5% in 2019.“Colombia’s rating fundamentals remain weaker than those of similarly rated peers,” S&P said. At the same time, the country’s flexible credit line with the International Monetary Fund, adequate access to international debt markets, and a credible monetary policy mitigate external risks and support Colombia’s creditworthiness, S&P said.Analyst Reactions“The timing was earlier than expected, and others are likely to follow,” wrote Citi Research analysts including Esteban Tamayo. “The performance of the Colombia credit spreads will depend crucially on the timing of the second downgrade below investment grade.”When that happens, the amount of forced selling will be around $1 billion to $1.5 billion, which is “not excessive”, Citi wrote. “We believe the best buying opportunity comes right after the second downgrade.”S&P’s decision wasn’t a big surprise, since it is increasingly difficult in Colombia to pass tax reforms, said Michel Janna, a former Director of Public Credit. The country needs to pass a less ambitious tax bill, which at least addresses some of the more pressing fiscal problems, to prevent Fitch and Moody’s from following S&P’s move in the near future, Janna said in an audio message.“The recent situation of political and social instability could have accelerated the decision because it makes it more difficult to reach a consensus that leads to an increase in tax revenue,” said Camilo Perez, chief economist at Banco de Bogota, in a phone interview.(Updates to add peso move from first 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. Howell date : 210520 07h11m49s World Reuters 210520 07h08m Iran's Rouhani says U.S. will lift sanctions, as another official denies it Iran's president said on Thursday that the United States was ready to lift sanctions on his country's oil, banking and shipping sectors that were reimposed after former U.S. President Donald Trump exited a 2015 nuclear deal three years ago. Iran and world powers have been in talks since April on reviving the deal and the EU official leading the discussions said on Wednesday he was confident a deal would be reached. But European diplomats said success was not guaranteed and very difficult issues remained, while a senior Iranian official contradicted the president. Business Reuters 210520 07h04m JPMorgan Chase launches new healthcare-focused unit for U.S. employees The unit, Morgan Health, will initially invest up to $250 million and work with the JPMorgan Chase's benefits team to collaborate with other healthcare organisations to improve care for its staff in the United States. Dan Mendelson, founder and former CEO of health consultancy firm Avalere Health, will lead the unit and report to the bank's Vice Chairman Pete Scher. Haven, the joint venture between the three companies to lower healthcare costs for their U.S. employees, was disbanded in February. Business Bloomberg 210520 07h01m Brent Oil Drops With Iran Optimistic on Sanctions Relief (Bloomberg) -- Brent crude extended declines after Iran’s president said the broad outline of a deal to end sanctions on its oil had been reached.Futures in London lost 0.6%, paring earlier declines of as much as 2.2%. President Hassan Rouhani struck an optimistic tone in comments released by Iranian state television, saying the deal would see oil, shipping, insurance and central bank sanctions lifted. But he noted there are still some issues to be discussed, and his remarks largely echoed those from European Union officials on Wednesday.The prospect of a return of supply from the OPEC member is being reflected in Brent’s prompt timespread, with its backwardation narrowing to just a few cents, a sign that market tightness may be easing.While Brent briefly topped $70 a barrel earlier in the week, it has struggled to sustain that move. The market has been rattled by the outlook for Iranian production, though a timeline for a deal remains unclear. There’s also been a sell-off in global markets, while the coronavirus continues to impinge on Indian demand, trimming sales of gasoline and diesel by as much as 20% for top refiner Indian Oil Corp.A “revival of Iranian oil exports takes a lot of attention currently,” said Bjarne Schieldrop, chief commodities analyst at SEB AB. “The key question is when” a deal will be reached, he said.Enrique Mora, the EU official in charge of coordinating diplomacy in Vienna for the nuclear talks, said he expects all parties to return to the 2015 agreement before Iran’s presidential elections on June 18. Citigroup Inc. sees an initial 500,000-barrel-a-day increase in supply from around the middle of the third quarter.More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. Business Bloomberg 210520 06h59m Ex-Merrill Banker’s Trading App Valued at Over $5 Billion (Bloomberg) -- Broker app Trade Republic Bank GmbH, founded by former Merrill Lynch banker Christian Hecker, has become one of Germany’s biggest fintech firms by valuation.The Berlin-based company finished a $900 million financing round with investors including Sequoia, TCV, Thrive Capital, and Peter Thiel’s Founders Fund, it said in a statement on Thursday. The round valued Trade Republic at more than $5 billion.Trade Republic lets customers trade stocks, ETFs, crypto currencies and other financial products on its app, mostly without order commissions or other fees. It was founded in Germany in 2015 and has recently expanded into Austria and France. Hecker told Bloomberg earlier this month the company is looking to offer its services all over Europe.Today’s funding round followed a 62-million-euro ($75.5 million) round last year that had already turned Trade Republic into one of the highest valued startups in Germany, next to smartphone bank N26.Late last year, N26 was considering a fresh fundraising at a valuation above $3.5 billion, while early this year Berlin-based banking platform provider Mambu raised 110 million euros at a 1.7 billion euros ($2.1 billion) valuation.The funding is also a glimmer of success for Germany’s fintech industry, after the high-profile collapse of payment firm Wirecard.“We expect the company to break even in 2022 and achieve strong margin growth thereafter,” said Marius Fuhrberg, analyst at German financial services firm M.M. Warburg.Brokerage houses from Germany, U.K., France and Denmark reported a surge in retail trading during the pandemic. However, startups such as U.S. rival platform Robinhood Markets Inc., which is planning to reveal filings for its initial public offering, have seen order volume’s surge thanks to their low-cost model.Traditional brokers finance themselves through fees and rebates from trading venues. New challengers, like Trade Republic and Robinhood, receive revenue from “payment for order flow,” a system where market makers like Citadel Securities pay retail brokers for routing orders to them.According to Hecker, who previously worked within the investment banking unit at Merrill Lynch, the rebates alone are enough for Trade Republic to be able to earn money. Trade Republic declined to comment on their revenue. Robinhood received about $331 million in the first quarter from payments for order flow, up from $91 million a year ago.”We are currently consciously accepting losses in order to be able to grow quickly,” Hecker said in an interview.(Updated with additional context.)More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. World Reuters 210520 06h52m G7 playing a 'dangerous game' by scolding Moscow, Russian envoy says The Group of Seven is playing a "dangerous game" by making aggressive criticism of the Kremlin because it pushes Russia closer to China, Russia's ambassador to London Andrei Kelin told Reuters on Thursday. G7 foreign ministers this month scolded both China and Russia, casting the Kremlin as malicious and Beijing as a bully, but beyond words there were few concrete steps aside from expressing support for Taiwan and Ukraine. Kelin said the G7's list of criticism was biased, confrontational and was stoking anti-Western feelings among Russians while its aggressive attitude towards Russia and China was pushing the two powers together. Business Bloomberg 210520 06h52m U.S. Futures Mixed After Jobs Data; Oil Declines: Markets Wrap (Bloomberg) -- U.S. equity futures held steady after Labor Department data showed applications for state unemployment insurance fell last week to a fresh pandemic low.Contracts on the Nasdaq 100 turned higher after the release, while those on the S&P 500 were little changed. Cisco Systems Inc. fell after its profit forecast missed estimates. European equities rebounded from a two-week low as carmakers and financial-services firms led gains. Asian shares were little changed.The latest jobs report comes after mounting concern that faster inflation will prompt authorities to ease back on stimulus has weighed on risk assets in recent sessions. Minutes from the Federal Reserve’s last meeting showed some officials were open to a debate at “upcoming meetings” on scaling back bond purchases if the U.S. economy continued to progress rapidly.“It was a surprise to hear the talk about Fed tapering,” Joyce Chang, JPMorgan’s chair of global research, said on Bloomberg TV. “The market had been thinking there might be a couple of months before you really saw this particular issue come into focus.” Still, Chang said it was not the time to bet against the broader fundamentals right now on the outlook for growth.Oil reversed an earlier gain, extending a three-week low after Iran’s president said the broad outline of a deal to end sanctions on its oil had been reached. Yields on 10-year Treasuries fell as the dollar weakened. Cryptocurrencies stabilized, with Bitcoin trading higher after Wednesday’s wild swings.Elsewhere, copper advanced after Wednesday’s slump, helped by expectations that demand would remain resilient. Iron ore futures slid.Here are some key events this week:IMF Managing Director Kristalina Georgieva and ECB President Christine Lagarde speak at the Vienna Economic Dialogue ThursdayEuro-area finance ministers and central bank chiefs hold an informal meeting. A larger group of EU finance ministers and central bank chiefs will meet May 22These are some of the main moves in markets:StocksFutures on the S&P 500 were little changed as of 8:49 a.m. New York timeFutures on the Nasdaq 100 rose 0.3%Futures on the Dow Jones Industrial Average fell 0.1%The Stoxx Europe 600 rose 0.7%The MSCI World index was little changedCurrenciesThe Bloomberg Dollar Spot Index fell 0.2%The euro rose 0.2% to $1.2202The British pound was little changed at $1.4123The Japanese yen rose 0.2% to 109.00 per dollarBondsThe yield on 10-year Treasuries declined two basis points to 1.66%Germany’s 10-year yield advanced one basis point to -0.10%Britain’s 10-year yield was little changed at 0.86%CommoditiesWest Texas Intermediate crude fell 0.6% to $63 a barrelGold futures fell 0.6% to $1,870 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. Business Bloomberg 210520 06h51m Colombia’s Dollar Bonds Drop After S&P Downgrades Nation to Junk (Bloomberg) -- Sign up for the New Economy Daily newsletter, follow us @economics and subscribe to our podcast.Colombia’s dollar bonds dropped after S&P Global Ratings cut the country’s credit rating to junk amid a political crisis and mass unrest.The nation’s dollar-denominated bonds due 2031 dropped 0.5% to 96.6 cents in early New York trading Thursday, sending their spread over U.S. Treasuries up to 1.85 percentage points.S&P cut Colombia’s sovereign rating one notch to BB+ on Wednesday, after the government’s plan to raise taxes to curb the deficit was blocked by congress and mass street protests in recent weeks.The cost of insuring the nation’s bonds against default with five-year credit default swaps rose to the most since October, as investors see the country as increasingly risky.A bill to increase taxes introduced last month triggered widespread civil disorder and the resignation of the finance minister, and was even opposed by President Ivan Duque’s own party. Even after the bill was withdrawn, highway blockades and street demonstrations have continued across the nation over a range of other grievances.Colombia is still rated at the lowest level of investment grade by Fitch Ratings and two levels above junk by Moody’s Investors Service.Read More: Fallen-Angel History Shows Colombia’s Fear of Junk Is MisguidedWorst PerformersColombian assets have weakened over the past month as investors priced in the increased likelihood of a downgrade. The nation’s dollar bonds are the worst performers in Latin America after El Salvador since the tax bill was introduced.S&P said that its stable outlook for Colombia “incorporates our expectation for an institutional solution to recent and significant social unrest.”The nation’s fiscal deficit will widen to 8.6% of gross domestic product this year according to the government’s forecast, from 2.5% in 2019.“Colombia’s rating fundamentals remain weaker than those of similarly rated peers,” S&P said. At the same time, the country’s flexible credit line with the International Monetary Fund, adequate access to international debt markets, and a credible monetary policy mitigate external risks and support Colombia’s creditworthiness, S&P said.Analyst Reactions“The timing was earlier than expected, and others are likely to follow,” wrote Citi Research analysts including Esteban Tamayo. “The performance of the Colombia credit spreads will depend crucially on the timing of the second downgrade below investment grade.”When that happens, the amount of forced selling will be around $1 to $1.5 billion, which is “not excessive”, Citi wrote. “We believe the best buying opportunity comes right after the second downgrade.”S&P’s decision wasn’t a big surprise, since it is increasingly difficult in Colombia to pass tax reforms, said Michel Janna, a former Director of Public Credit. The country needs to pass a less ambitious tax bill, which at least addresses some of the more pressing fiscal problems, to prevent Fitch and Moody’s from following S&P’s move in the near future, Janna said in an audio message.“The news is relatively surprising because of the timing,” said Camilo Perez, chief economist at Banco de Bogota, in a phone interview. “The recent situation of political and social instability could have accelerated the decision because it makes it more difficult to reach a consensus that leads to an increase in tax revenue.”Munir Jalil, Andean region chief economist at BTG Pactual, said the decision was “unsurprising in the light of recent developments in Colombia.”More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. Business Yahoo Finance 210520 06h44m Jobless claims fall by more than expected, hit fresh pandemic low at 444,000 The labor market continues to heal from the worst days of COVID-19, even as workers become harder to find. Howell date : 210519 19h22m02s World Reuters 210519 18h54m U.S. weighs changes to COVID-19 travel restrictions The Biden administration has been weighing changes to sweeping travel restrictions that bar much of the world's population from coming to the United States, but has reached no decisions, government and industry officials told Reuters. European Union countries agreed on Wednesday to ease COVID-19 travel restrictions on non-EU visitors ahead of the summer tourist season, a move that could open the bloc's door to all Britons and to vaccinated Americans. Ambassadors from the 27 EU countries approved a European Commission proposal from May 3 to loosen the criteria to determine "safe" countries and to let in fully vaccinated tourists from elsewhere, EU sources said. Business Reuters 210519 18h38m UPDATE 2-Japan's exports jump most in decade as trade-led recovery perks up * April exports, imports beat forecasts * Trade surplus wider than expected * Machinery orders rise, manufacturers' mood at 2-yr high * Batch of data point to export-led economic recovery (Adds analyst comment) By Tetsushi Kajimoto and Daniel Leussink TOKYO, May 20 (Reuters) - Japan's exports grew the most since 2010 in April, supported by a favourable comparison with the sharp plunge seen during the pandemic last year, while capital spending also rose, firming up expectations of a trade-led recovery. Also supporting the outlook, Japanese manufacturers' confidence hit a more than two-year high in May on the back of solid overseas demand, a Reuters survey showed on Thursday. Improving exports were bolstered by the comparison with a year ago when a slump in global trade due to global coronavirus lockdowns dealt a heavy blow to the world's third-largest economy. Business Bloomberg 210519 18h35m Qantas Turns Corner to Recovery With Forecast of Profit (Bloomberg) -- Qantas Airways Ltd. is on the path to recovery from the coronavirus crisis thanks to a domestic holiday boom, with the airline forecasting an underlying profit for the current financial year.Revenue from routes within Australia -- which has almost completely suppressed Covid-19 -- is expected to almost double in the half year ending June 30 from the previous six months as people holiday at home, Qantas said Thursday. Domestic air-travel demand is even greater than it was before the pandemic, the airline said.“We have a long way still to go in this recovery, but it does feel like we’re slowly starting to turn the corner,” Chief Executive Officer Alan Joyce said in the statement. “The business is now on a more sustainable footing.”With a global air-travel rebound still in its infancy, airlines with extensive domestic networks, from Qantas to American Airlines Group Inc. and Delta Air Lines Inc. in the U.S., are faring best. Qantas and low-cost unit Jetstar have together added 38 new routes since July last year.Shares of Qantas climbed 4.9% to A$4.74 at 10:30 a.m. in Sydney.Read more U.S. Vaccine Surge Lifts Region’s Air-Travel Comeback Past AsiaBy contrast, Singapore Airlines Ltd. on Wednesday reported a $3.2 billion full-year loss. Even by June this year, passenger capacity will be little more than one quarter of pre-Covid levels, the city-state’s airline said.The International Air Transport Association last month widened its estimate for losses this year to about $48 billion as new Covid flare-ups push back the timeline for a start of international air travel. A long-awaited travel bubble with Hong Kong was delayed again this week after an increase in unlinked cases.Yet Sydney-based Qantas now forecasts underlying earnings of between A$400 million ($309 million) and A$450 million for the 12 months ending June 30, and says net debt has peaked. The pretax loss for the period, including aircraft writedowns and staff layoff costs, will exceed A$2 billion, it said.For more details from the trading update, click hereThe airline said consumer confidence is “proving more resilient” compared with the early days of the crisis. Corporate travel has reached 75% of pre-Covid levels and overall domestic capacity will be almost completely back to normal in the current quarter, it said.Still, Qantas has pushed back the restart of international flights to late December because of delays to Australia’s vaccination program and indications from the government that it will keep borders mostly closed until mid-2022.CEO Joyce on Thursday warned Australia risks being “left behind” while the U.K. and the U.S., with more progressed inoculation programs, are already restarting overseas flights.“Australia has to put the same intensity into the vaccine rollout as we’ve put on lockdowns and restrictions,” Joyce said in the statement. “Only then will we have the confidence to open up.”(Updates with Singapore Airline’s loss in fifth 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. Business Bloomberg 210519 18h34m Oil Steady Near Three-Week Low With Iranian Crude Flows in Focus (Bloomberg) -- Oil was steady near a three-week low in early Asia trading following a broader market slump as investors weighed the prospect of a boost in Iranian supply just as OPEC+ returns more barrels to the market.Futures in New York traded near $63 a barrel after slumping 3.3% on Wednesday as inflation fears rattled markets. A top European Union official said the U.S. and Iran are close to reviving a nuclear accord, which would allow more crude flows from the OPEC producer. That’s being reflected in the prompt timespread for benchmark Brent oil, with its backwardation structure narrowing even further in an indication market tightness may be easing.Oil is still up about 30% this year as the recovery from the Covid-19 pandemic accelerates in the U.S. and parts of Europe, while purchasing of crude cargoes from countries such as China remains robust. However, the flare-up across Asia is a constant reminder that the rebound is expected to be uneven and bumpy. The second wave in India has trimmed sales of gasoline and diesel by as much as 20% for top refiner Indian Oil Corp., prompting cuts to processing rates.Enrique Mora, the EU official in charge of coordinating diplomacy in Vienna for the nuclear talks, said he expects all parties to return to the 2015 agreement before Iran’s presidential elections on June 18. Iran has already been bringing back output, and said it will soon export oil from a new port, which would allow the country to bypass the Strait of HormuzThe prompt timespread for Brent was 14 cents a barrel in backwardation -- a bullish structure where near-dated contract are more expensive than later-dated ones. That compares with 42 cents at the start of May.Meanwhile, the Energy Information Administration on Wednesday provided the first look at the impact of Colonial Pipeline Co.’s outage. Nationwide gasoline inventories fell nearly 2 million barrels last week, though fuel supplies in the U.S. Gulf Coast jumped by the most on record with the pipeline down.More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. Business Bloomberg 210519 18h31m Asia Stocks, U.S Futures Steady; Yields Up on Fed: Markets Wrap (Bloomberg) -- Asian stocks were steady early Thursday as investors weighed Federal Reserve minutes that flagged the possibility of a debate on scaling back asset purchases. Treasury yields and the dollar held an advance.Benchmarks fluctuated in Japan and Australia, and fell in South Korea. U.S. futures edged down after the S&P 500 fell a third day. The Nasdaq 100 notched a small advance, boosted by late-day gains in tech stocks including Facebook Inc.The minutes indicated some Fed officials may be open “at some point” to discussing adjustments to the pace of massive bond purchases if the U.S. economy keeps progressing rapidly. The benchmark 10-year Treasury yield was steady after climbing to 1.67%. Commodity prices slid amid mounting concern about inflation and potential curbs on monetary stimulus.A bout of volatility swept over cryptocurrencies, with Bitcoin posting a same-day plunge and rally of about 30%. The largest token and other virtual currencies like Ether are nursing losses from a recent selloff. Cryptocurrency-exposed shares including Coinbase Global Inc. slid.Stocks have lost steam in recent sessions on worries about inflation and a Covid-19 resurgence in some countries. Speculative ardor is also waning, underlined most recently by the gyrations in digital tokens. While U.S. policy makers have signaled they intend to maintain an accommodative stance for a prolonged period, any hints of a timeline for paring back exceptional stimulus could exacerbate such trends.“It was a surprise to hear the talk about Fed tapering,” Joyce Chang, J.P. Morgan Global Research Chair, said on Bloomberg TV. “The market had been thinking there might be a couple of months before you really saw this particular issue come into focus.” Still, Chang said it was not the time to bet against the broader fundamentals right now on the outlook for growth.Oil stabilized after slumping to the lowest in three weeks with traders also concerned about growing supply from the U.S. and Iran.Here are some key events this week:IMF Managing Director Kristalina Georgieva and ECB President Christine Lagarde speak at the Vienna Economic Dialogue ThursdayEuro-area finance ministers and central bank chiefs hold an informal meeting. A larger group of EU finance ministers and central bank chiefs will meet May 22These are some of the main moves in markets:StocksS&P 500 futures fell 0.1% as of 9:23 a.m. in Tokyo. The index retreated 0.3%Nasdaq 100 contracts shed 0.2%. The gauge rose 0.2%Japan’s Topix index was little changedAustralia’s S&P/ASX 200 rose 0.2%South Korea’s Kospi index fell 0.2%Hang Seng futures retreated 0.1% earlierCurrenciesThe Japanese yen was at 109.23 per dollarThe offshore yuan traded at 6.4409 per dollarThe Bloomberg Dollar Spot Index was steady after gaining 0.5%The euro was at $1.2174BondsThe yield on 10-year Treasuries advanced about three basis points to 1.67%Australia’s 10-year bond yield rose two basis points to 1.79%CommoditiesWest Texas Intermediate was steady at $63.37 a barrel after falling 3.3%Gold was at $1,867.70 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. World Business Howell date : 210519 18h21m26s Business Reuters 210519 18h07m U.S. flying taxi startup steps up legal pressure on rival over trade secrets Wisk Aero, a flying taxi startup backed by Boeing and Google co-founder Larry Page's Kitty Hawk Corp, asked a California court on Wednesday to stop the alleged use of its trade secrets by rival Archer Aviation and said it was cooperating with a criminal U.S. probe. Wisk and Archer, a special purpose acquisition company (SPAC) whose investors include United Airlines, compete in the increasingly crowded market for electric vertical takeoff and landing aircraft, or eVTOLs. Wisk's motion for a preliminary injunction and hearing on July 7 is part of its ongoing litigation against Archer, which it accuses of stealing trade secrets and infringing on its patents as the new Palo Alto-based SPAC seeks to certify its eVOTL aircraft by 2024. Business Bloomberg 210519 17h46m Bitcoin Whipsaws Investors With Same-Day Plunge, Rally of 30% (Bloomberg) -- A 31% plunge in the morning. A 33% surge in the afternoon.Such was the wild ride Bitcoin took investors on Wednesday, lopping off billions in value before comments from some prominent proponents helped propel it on a torrid rebound.The extreme price swings in an asset known for its turbulence caused outages on major crypto exchanges and dominated chatter on Wall Street. The tumult elicited a tweet from Elon Musk that implied Tesla Inc. wasn’t among the sellers, while Cathie Wood said her monitors flashed a “capitulation” that put the digital token “on sale.” Justin Sun, a tech entrepreneur who founded the cryptocurrency platform Tron, tweeted that he bought $152 million in Bitcoin for around $37,000 a coin.Read More: World’s Top Crypto Platforms Disrupted as Bitcoin, Ether TumbleDown to within a whisker of $30,000 just after 9 a.m. in New York, the coin pared its loss to 7% and periodically topped $40,000 again in the afternoon. It was trading around $38,000 as of 7:15 a.m. in Hong Kong on Thursday. Ether, the second-biggest coin, sank more than 40% Wednesday before cutting that nearly in half, and ended down 26%.“The history of these assets has been littered with aggressive rallies and sickening selloffs,” said Stephane Ouellette, chief executive and co-founder of FRNT Financial.Rarely do they happen in a single session. The volatility dominated Wall Street on a day when stocks and commodities were also under pressure and the Federal Reserve was set to release minutes from its latest meeting. Frantic selling sparked outages on some of the biggest exchanges, from Coinbase Global Inc. to Binance. #Cryptotrading was trending on Twitter, where critics and fans alike were in a tither over the rout.Tesla CEO Musk touched off the wild moves last week. Bitcoin plunged when he announced the carmaker wouldn’t take it as a payment, but then reversed when he said the company had no plans to sell its corporate crypto holdings. He seemed to imply in a tweet Wednesday that Tesla is not selling into the rout.Volatility erupted in crypto-land last week when Musk retracted plans to accept Bitcoin for his company’s cars. Selling resumed over the weekend when the mercurial CEO seemed to suggest Tesla might want to sell its corporate holdings, but reversed after he tweeted that the carmaker had no plans to do so. A statement on the People’s Bank of China’s WeChat on Tuesday reiterating that digital tokens can’t be used as a form of payment added to the selloff.While all were proximate causes for the rout, nothing could explain the frantic rout Wednesday morning, when the coin dropped thousands of dollars in price in a matter of minutes. Selling gave way to more selling as investors lured into crypto in search of a quick buck bolted for the exits. The selling accelerated when Bitcoin fell below its average price for the past 200 days.Chart-watchers pointed to key technical indicators as the coin sold off. Bitcoin bounced off the $30,000 level and many are waiting to see if it can break back above its 200-day moving average line. If it doesn’t, it could potentially retest Wednesday’s lows.Cryptocurrency-linked stocks also dropped, with shares of Coinbase falling near 13% at one point and Marathon Digital Holdings Inc. slumping as much as 16%.Bitcoin had embarked on a multi-month rally following Tesla’s February announcement, soaring to its $64,870 peak, in large part due to the company’s embrace.Wiped OutAt the time, Tesla’s acceptance was hailed as a watershed moment for the coin, with many in the crypto world seeing it as yet another step in its evolution.All that’s been wiped out following Musk’s head-spinning tweets.“Realistically, it is not the first time Elon Musk’s tweets have been erratic and, frankly, wrong,” said Ulrik Lykke, executive director at crypto hedge fund ARK36. “The crypto markets are extremely emotionally driven and their participants are prone to overreacting to events they perceive as negative.”(Updates prices.)More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. Business Business Business World Business Business Business Reuters 210519 16h21m UPDATE 1-U.S. senators back $46 billion in financial relief for Postal Service A bipartisan group of 20 U.S. senators on Wednesday released legislation to provide the cash-strapped U.S. Postal Service (USPS) with $46 billion in financial relief over 10 years. The U.S. House of Representatives Oversight and Reform Committee voted unanimously to approve companion legislation last week. The legislation would eliminate a requirement USPS pre-fund retiree health benefits for 75 years and would require postal employees to enroll in the Medicare government-retiree health plan. Business Bloomberg 210519 16h21m Cisco Shares Slip on Profit Forecast Hurt by Component Costs (Bloomberg) -- Cisco Systems Inc. shares fell after the company said its profitability is being squeezed by the cost of securing components needed to meet a surge in orders driven by a rebound in spending on computer networks.The biggest maker of gear that’s the backbone of the internet gave an optimistic revenue forecast helped by what it called the strongest demand in a decade. But its profit projection was below Wall Street estimates after the company chose to “endure short-term pain” to make sure it has enough chips to meet its order obligations, Chief Executive Officer Chuck Robbins said.Like many other companies, Cisco is feeling the pinch of a shortage of semiconductors available to meet rising demand as chunks of the world economy rebound from the worst of the pandemic-driven recession. Cisco is paying more per component and having to fork out fees to expedite shipments.“We had a couple of choices, we could say ‘no’ and our customers would suffer and we suffer over the next few years because we lose share to those who say ‘yes,’” Robbins said in an interview. “We’re feeling more momentum than we have in a long time and I didn’t feel like that was the right decision for the company. We decided to take it on the chin.”Chief Financial Officer Scott Herren said he expects those shortages will last until the end of 2020. Absent the constraints, Cisco’s revenue projections would have been higher.Cisco shares fell more than 5% in extended trading, after closing at $52.47. The stock had rallied more than 17% this year.Sales in the fiscal fourth quarter will rise 6% to 8% from a year earlier, the company said Wednesday in a statement. That indicates revenue of $12.9 billion to $13.1 billion, compared with an average analyst projection of $12.8 billion. Profit excluding certain items in the period will be 81 to 83 cents a share, shy of the average analyst estimate of 85 cents, according to data compiled by Bloomberg.The profitability squeeze overshadowed commentary and an earnings report from the company that provided strong evidence the economy is rebounding from the low point of 2020.Sales in the fiscal third quarter totaled $12.8 billion, an increase of 7% from a year earlier. Profit, minus certain items, was 83 cents a share, beating the average estimate by a penny.Under Robbins, Cisco is trying to recast itself as a provider of networking services and software. While revenue is increasing from those newer offerings, Cisco still gets the majority of sales from hardware. Software revenue grew 5%, security was up 13%, and infrastructure platforms - gear such as switches and routers - expanded 6% from a year earlier.Lead times, or the amount of time between placing an order and getting it filled, are on the rise for the semiconductor industry. Many companies are more willing to give chipmakers longer-term commitments and pay upfront.(Updates with comments from CEO in the fourth 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. Business Reuters 210519 16h21m U.S. senators back $46 billion in financial relief for Postal Service WASHINGTON (Reuters) -A bipartisan group of 20 U.S. senators on Wednesday released legislation to provide the cash-strapped U.S. Postal Service (USPS) with $46 billion in financial relief over 10 years. The U.S. House of Representatives Oversight and Reform Committee voted unanimously to approve companion legislation last week. The legislation would eliminate a requirement USPS pre-fund retiree health benefits for 75 years and would require postal employees to enroll in the Medicare government-retiree health plan. U.S. Bloomberg 210519 16h21m Griffin, Loeb Donations Blasted by NYC Mayor Candidate Stringer (Bloomberg) -- Scott Stringer, the New York City Comptroller who is running for mayor, criticized hedge fund managers Ken Griffin and Dan Loeb for contributing to political committees that support his opponents in the race, accusing the billionaire money managers of trying to privatize public education.Griffin, the founder of Citadel, and Loeb, founder of Third Point LLC, each gave $500,000 to independent political action committees known as super PACs that support Eric Adams and Andrew Yang, two of Stringer’s opponents in the upcoming June 22 Democratic primary for mayor. Griffin and Loeb have donated millions in campaign contributions to expand charter schools and to the schools themselves, while Stringer is backed by New York City’s main teachers’ union.“They’re not satisfied with just owning one candidate — they want two,” Stringer said. “And the one candidate that they don’t own is me. And I’m going to have the resources and the support to take them on.”Loeb has clashed for years with Randi Weingarten, former head of the city union, the United Federation of Teachers, who’s now the president of the national American Federation of Teachers. Loeb supports charter schools, which are privately run but publicly funded. Charter supporters say the schools offer a better alternative to struggling public schools, especially for poor students.But charter schools are also usually not unionized. Unions say the schools don’t enroll students from the poorest families or those with special needs, cherry picking students who are likely to be easier to teach while draining funds from public coffers.Yang spokesperson Eric Soufer said Stringer’s attack of the campaign for receiving the help of billionaires with a pro-charter school agenda is a sign of desperation. “He’s made a career of taking money from anyone and everyone, including Wilbur Ross and other Republicans,” Soufer said.Adams spokesperson Evan Theis said, “The campaign has nothing to do with those committees and it would be inappropriate for us to comment on them.” Super PACs are permitted to operate as long as they do not act in coordination with official political campaigns.Loeb is a primary backer of the Success Academy Charter Schools in New York, and Griffin, whose charity donated $10 million to Success Academy in 2018, has long been an opponent of the teachers union in Chicago, where Citadel is headquartered.For this election, Loeb, Griffin, and fellow hedge fund titans Stanley Druckenmiller and Paul Tudor Jones each gave $500,000 to an Adams-supporting Super PAC, Strong Leadership NYC Inc., set up by Jenny Sedlis, executive director of StudentsFirstNY, a charter school backer. Loeb and Griffin each also gave $500,000 to Yang via another private fundraising group, Comeback PAC.Read More: Four Hedge Fund Titans Each Give $500,000 to PAC for AdamsMeanwhile, the AFT and UFT have set up their own Super PAC for Stringer, called NY4Kids Inc., seeding it with $1.5 million.Representatives for Loeb and Griffin didn’t immediately respond to a request for comment.More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. Business Yahoo Finance 210519 16h21m Stock market news live updates: Stock futures open lower after indexes post third straight day of selling Stock futures traded lower as the overnight session began Wednesday evening, with equities struggling to catch a break as inflation concerns remained at the center of investors' attention. Business Reuters 210519 16h21m Dutch court to rule on Ghosn versus Nissan-Mitsubishi claims A Dutch court on Thursday is set to rule in a case brought by fugitive former car executive Carlos Ghosn against Nissan and Mitsubishi, following his tumultuous fall from grace at the Japanese car makers in 2018. The Dutch case, one of many between the former star of the global car industry and the Japanese companies he once led, centres around the Dutch-registered joint venture Nissan-Mitsubishi BV, where Ghosn was ousted as chairman in 2019. But Nissan and Mitsubishi claim Ghosn only used the Amsterdam-based joint venture to inflate his own pay and to cover a personal tax debt, and are demanding he repays around 8 million euros in wages they say he granted himself without the knowledge of the boards of the holding companies. Howell date : 210519 17h20m49s World Reuters 210519 17h06m For some of Japan's lonely workers, COVID-19 brings a homecoming After four years spent working and living alone, far from his family and friends, Tsuyoshi Tatebayashi packed his bags at the end of March and returned, at last, to his wife and two daughters. Like hundreds of thousands of other white-collar workers, the 44-year-old IT engineer had been on a solo assignment, known as "tanshin funin", and wasn't expecting to return to his family so soon. But as the COVID-19 pandemic dragged on, his employer, Fujitsu, decided to bring its far-flung workers home, becoming one of Japan's first big firms to make a start in ending the long-established practice. Business Reuters 210519 16h54m Amazon.com faces five new racial, gender bias lawsuits Amazon.com Inc was hit on Wednesday with five new lawsuits by women who worked in corporate or warehouse management roles, and accused the online retailer of gender bias, racial bias or both. The women, ages 23 to 64, accused Amazon of favoring men over women in career growth, allowing supervisors to denigrate them, and retaliating after they complained. Two plaintiffs are Black, one is Latina, one is Asian-American and one is white. Business Bloomberg 210519 16h40m Cisco Shares Slip on Profit Forecast Hurt by Component Costs (Bloomberg) -- Cisco Systems Inc. shares fell after the company said its profitability is being squeezed by the cost of securing components needed to meet a surge in orders driven by a rebound in spending on computer networks.The biggest maker of gear that’s the backbone of the internet gave an optimistic revenue forecast helped by what it called the strongest demand in a decade. But its profit projection was below Wall Street estimates after the company chose to “endure short-term pain” to make sure it has enough chips to meet its order obligations, Chief Executive Officer Chuck Robbins said.Like many other companies, Cisco is feeling the pinch of a shortage of semiconductors available to meet rising demand as chunks of the world economy rebound from the worst of the pandemic-driven recession. Cisco is paying more per component and having to fork out fees to expedite shipments.“We had a couple of choices, we could say ‘no’ and our customers would suffer and we suffer over the next few years because we lose share to those who say ‘yes,’” Robbins said in an interview. “We’re feeling more momentum than we have in a long time and I didn’t feel like that was the right decision for the company. We decided to take it on the chin.”Chief Financial Officer Scott Herren said he expects those shortages will last until the end of 2020. Absent the constraints, Cisco’s revenue projections would have been higher.Cisco shares fell more than 5% in extended trading, after closing at $52.47. The stock had rallied more than 17% this year.Sales in the fiscal fourth quarter will rise 6% to 8% from a year earlier, the company said Wednesday in a statement. That indicates revenue of $12.9 billion to $13.1 billion, compared with an average analyst projection of $12.8 billion. Profit excluding certain items in the period will be 81 to 83 cents a share, shy of the average analyst estimate of 85 cents, according to data compiled by Bloomberg.The profitability squeeze overshadowed commentary and an earnings report from the company that provided strong evidence the economy is rebounding from the low point of 2020.Sales in the fiscal third quarter totaled $12.8 billion, an increase of 7% from a year earlier. Profit, minus certain items, was 83 cents a share, beating the average estimate by a penny.Under Robbins, Cisco is trying to recast itself as a provider of networking services and software. While revenue is increasing from those newer offerings, Cisco still gets the majority of sales from hardware. Software revenue grew 5%, security was up 13%, and infrastructure platforms - gear such as switches and routers - expanded 6% from a year earlier.Lead times, or the amount of time between placing an order and getting it filled, are on the rise for the semiconductor industry. Many companies are more willing to give chipmakers longer-term commitments and pay upfront.(Updates with comments from CEO in the fourth 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. Business Bloomberg 210519 16h24m Oatly Is Said to Price IPO at Top of Range With Markets Slumping (Bloomberg) -- Oatly Group AB, the vegan food and drink maker, priced its initial public offering at the top of a marketed range to raise more than $1.4 billion with its investors, according to a person familiar with the matter.The company sold its American depositary shares for $17 each on Wednesday, said the person, who asked not to be identified because the information wasn’t public yet. The Swedish company and its investors were planning to sell more than 84 million shares for $15 to $17 each.U.S. markets fell for the third day in a row, with the S&P 500 falling 0.3% Wednesday. The IPO price was reported earlier by the Wall Street Journal.A representative for Oatly didn’t immediately respond to a request for comment.The IPO underscores plant-based products’ jump into the mainstream, as environmental and health concerns spur consumers to seek alternatives to traditional meat and dairy products. Investors have been looking for ways to replicate the public-market success of Beyond Meat Inc., whose shares have surged more than 300% since it went public in May 2019.Oatly was started in 1994 by brothers Rickard and Bjorn Oste. Using technology based on research from Sweden’s Lund University, the company turns fiber-rich oats into liquid food.In July, Oatly secured $200 million in new capital from investors led by Blackstone Group Inc. The group also included celebrities such as Oprah Winfrey and Jay-Z, as well as former Starbucks Corp. founder Howard Schultz. The company was valued at about $2 billion in the round.Oatly’s offering is being led by Morgan Stanley, JPMorgan Chase & Co. and Credit Suisse Group AG. The shares are expected to begin trading Thursday on the Nasdaq Global Select Market under the symbol OTLY.More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. Business U.S. Howell date : 210519 16h20m13s Business Reuters 210519 16h07m UPDATE 1-Brazilian sponsor of Eletrobras privatization bill removes key clause from text The sponsor of a bill to privatize Brazilian state power utility Eletrobras on Wednesday dropped a provision tying the sale to government contracts for natural gas-powered generation after uproar from industry groups. Lawmaker Elmar Nascimento made the decision shortly after a Brazilian forum of power sector associations, known as FASE, called on Congress to reconsider the bill due to the risk of "market distortion." FASE said in a letter reviewed by Reuters that the bill was "unbalanced" and could "increase the cost of electricity in Brazil." Business Reuters 210519 16h04m Dutch court to rule on Ghosn versus Nissan-Mitsubishi claims A Dutch court on Thursday is set to rule in a case brought by fugitive former car executive Carlos Ghosn against Nissan and Mitsubishi, following his tumultuous fall from grace at the Japanese car makers in 2018. The Dutch case, one of many between the former star of the global car industry and the Japanese companies he once led, centres around the Dutch-registered joint venture Nissan-Mitsubishi BV, where Ghosn was ousted as chairman in 2019. But Nissan and Mitsubishi claim Ghosn only used the Amsterdam-based joint venture to inflate his own pay and to cover a personal tax debt, and are demanding he repays around 8 million euros in wages they say he granted himself without the knowledge of the boards of the holding companies. Business Bloomberg 210519 15h56m Cisco Shares Slip on Profit Forecast Hurt By Component Costs (Bloomberg) -- Cisco Systems Inc. shares fell after the company said its profitability is being squeezed by the cost of securing components needed to meet a surge in orders driven by a rebound in spending on computer networks.The biggest maker of gear that’s the backbone of the internet gave an optimistic revenue forecast helped by what it called the strongest demand in a decade. But its profit projection was below Wall Street estimates after the company chose to “endure short-term pain” to make sure it has enough chips to meet its order obligations, Chief Executive Officer Chuck Robbins said.Like many other companies, Cisco is feeling the pinch of a shortage of semiconductors available to meet rising demand as chunks of the world economy rebound from the worst of the pandemic-driven recession. Cisco is paying more per component and having to fork out fees to expedite shipments, company executives said Wednesday.Chief Financial Officer Scott Herren said he expects those shortages will last until the end of 2020. Absent the constraints, Cisco’s revenue projections would have been higher.Cisco shares fell more than 6% in extended trading, after closing at $52.47. The stock had rallied more than 17% this year.Sales in the fiscal fourth quarter will rise 6% to 8% from a year earlier, the company said Wednesday in a statement. That indicates revenue of $12.9 billion to $13.1 billion, compared with an average analyst projection of $12.8 billion. Profit excluding certain items in the period will be 81 to 83 cents a share, shy of the average analyst estimate of 85 cents, according to data compiled by Bloomberg.The profitability squeeze overshadowed commentary and an earnings report from the company that provided strong evidence the economy is rebounding from the low point of 2020.Sales in the fiscal third quarter totaled $12.8 billion, an increase of 7% from a year earlier. Profit, minus certain items, was 83 cents a share, beating the average estimate by a penny. Under Robbins, Cisco is trying to recast itself as a provider of networking services and software. While revenue is increasing from those newer offerings, Cisco still gets the majority of sales from hardware. Software revenue grew 5%, security was up 13%, and infrastructure platforms - gear such as switches and routers - expanded 6% from a year earlier.Lead times, or the amount of time between placing an order and getting it filled, are on the rise for the semiconductor industry. Many companies are more willing to give chipmakers longer-term commitments and pay upfront.(Updates with comments from executives throughout)More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. Business Bloomberg 210519 15h52m Asia Stocks Set for Mixed Open; Yields Up on Fed: Markets Wrap (Bloomberg) -- Asian stocks looked set for a mixed open Thursday after U.S. shares dipped and Treasury yields rose in the wake of Federal Reserve minutes that flagged the possibility of a debate on scaling back asset purchases.Futures were steady in Japan and Australia but lower in Hong Kong. The S&P 500 fell a third day, while the Nasdaq 100 notched a small advance, boosted by late-day gains in tech stocks including Facebook Inc. The minutes showed Fed officials were cautiously optimistic about the U.S. recovery at their April meeting, with some signaling they’d be open “at some point” to discussing adjustments to the pace of massive bond purchases.The benchmark 10-year Treasury yield climbed to 1.67% in U.S. hours and a gauge of the dollar rose. Commodity prices tumbled amid mounting concern about inflation and potential curbs on monetary stimulus.Investors were transfixed by volatility in cryptocurrencies, with Bitcoin posting a same-day plunge and rally of about 30%. The largest token and other virtual currencies like Ether are nursing losses from a recent selloff. Cryptocurrency-exposed shares including Coinbase Global Inc. slid.Stocks have lost steam in recent sessions on worries about inflation and a Covid-19 resurgence in some countries. While U.S. policymakers have signaled they intend to maintain an accommodative stance for a prolonged period and view price pressures as transitory, traders are alert to any hints of a timeline for withdrawing exceptional stimulus.“We saw 10-year yields rise pretty sharply, clearly an upward move after the minutes were released -- it looks like it all comes down to minor changes in wording on tapering,” said Collin Martin, fixed-income strategist at Schwab Center for Financial Research. “There might be a few participants who are getting a little eager to start the discussion, which might be more than the markets were expecting. For anyone waiting for the taper, this could be a hint it’s coming sooner rather than later.”Oil slumped to the lowest in three weeks with traders also concerned about growing supply from the U.S. and Iran.Here are some key events this week:IMF Managing Director Kristalina Georgieva and ECB President Christine Lagarde speak at the Vienna Economic Dialogue ThursdayEuro-area finance ministers and central bank chiefs hold an informal meeting. A larger group of EU finance ministers and central bank chiefs will meet May 22These are some of the main moves in markets:StocksThe S&P 500 fell 0.3%.The Nasdaq 100 rose 0.2%Nikkei 225 futures rose 0.1%S&P/ASX 200 futures climbed 0.1%Hang Seng futures retreated 0.1% earlierCurrenciesThe Bloomberg Dollar Spot Index rose 0.5%The euro was at $1.2176The British pound was at $1.4116The Japanese yen was at 109.19 per dollarThe offshore yuan traded at 6.4398 per dollarBondsThe yield on 10-year Treasuries advanced three basis points to 1.67%CommoditiesWest Texas Intermediate crude fell 3.3% to $63.36 a barrelGold was at $1,869.62 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. Business Reuters 210519 15h52m UPDATE 1-Intel shareholders reject executive compensation plan -filing Chipmaker Intel Corp's shareholders did not approve an executive compensation plan of its listed officers, according to a regulatory filing on Wednesday. The decision, on a nonbinding advisory basis, was taken at the company's annual stockholder meeting on May 13. In a statement, Intel said it "has a long-standing commitment to pay-for-performance, which holds executive officers accountable for business results and rewards them for consistently strong corporate performance and the creation of stockholder value ... The board also finds it incredibly important to ensure that it has a meaningful dialogue with our investors throughout the year so it can get their feedback on important matters affecting Intel." World Reuters 210519 15h42m UPDATE 1-Brazil's former health minister shields Bolsonaro in COVID-19 inquiry Former Health Minister Eduardo Pazuello denied on Wednesday that Brazil's far-right President Jair Bolsonaro had overturned his efforts to buy the COVID-19 vaccine made by China's Sinovac Biotech Ltd. The vaccine has become the backbone of immunization efforts in Brazil as it fights the world's second-deadliest coronavirus outbreak, accounting for five out of every six shots given through April. Last year, Bolsonaro disparaged the shot due to its "origins" and publicly clashed with Sao Paulo Governor Joao Doria, a political rival responsible for the partnership making finished doses of the Chinese vaccine at the Butantan medical center. Howell date : 210519 15h19m36s Business Reuters 210519 15h11m U.S. regulator awards $28 million to tipster on Panasonic probe The U.S. securities regulator on Wednesday doled out a $28-million award to a whistleblower for information that led U.S. authorities to bring bribery charges against a subsidiary of Panasonic Corp , according to the tipster's lawyers. The Securities and Exchange Commission (SEC), which did not disclose the name of the company or the whistleblower, said the information led the SEC and another other agency to open investigations resulting in "significant enforcement actions". Attorneys Christopher Connors and Andy Rickman said they represented the whistleblower and confirmed the award related to Panasonic foreign bribery probe. Health Reuters 210519 15h00m Roche aims Tecentriq at early lung cancer after data shows benefit An immunotherapy showed for the first time it can help early-stage lung cancer patients survive longer without their disease returning, according to data released on Wednesday, a potential turning point for such drugs to be used before tumours spread. The drug, Tecentriq from Switzerland's Roche, works like other immunotherapies including Merck's Keytruda and Opdivo from Bristol Myers Squibb, helping take the brakes off the immune system so it can attack tumours. While regarded as an important treatment breakthrough, this class of drugs has so far been largely deployed against advanced lung cancer that has metastasized, attacking other organs including the brain. World Reuters 210519 14h58m Spain to lift suspension of AstraZeneca vaccine for second dose in people under 60 Spain will allow people under age 60 who have received a first dose of AstraZeneca Plc's COVID-19 vaccine to receive their second inoculation either with the AstraZeneca drug or with Pfizer Inc's vaccine, Health Minister Carolina Darias said on Wednesday. Until now, those who had received their first dose of the AstraZeneca vaccine were in limbo because the government suspended that vaccine in March, for people under 60, due to blood-clot concerns. The new policy will affect about 1.5 million Spaniards who have already received their first AstraZeneca dose. Business Bloomberg 210519 14h56m Goldman Sachs Is Said to Invest in Josh Kushner’s Thrive Capital (Bloomberg) -- Goldman Sachs Group Inc. is backing the venture capital firm Thrive Capital, started by Joshua Kushner, according to people familiar with the matter.Goldman Sachs’ Petershill unit, which often takes positions in private equity firms, will receive an ownership percentage of Thrive’s business as part of an investment, said the people, who asked not to be identified because the information was private.Thrive Capital as a firm is valued at about $3.6 billion, the people added.Petershill has previously made investments in venture capital firm General Catalyst and private equity firm Francisco Partners, Bloomberg News has reported.Representatives for Thrive Capital and Goldman Sachs’ Petershill declined to comment.Thrive Capital was founded by Kushner more than a decade ago, after he had worked for a short time at Goldman Sachs’ merchant bank. Kushner’s brother Jared is the son-in-law of and former adviser to ex-President Donald Trump.Kushner’s firm has backed several companies that have gone public in the past year, including Oscar Health Inc., Compass Inc., Affirm Holdings Inc., Opendoor Technologies Inc., Unity Software Inc., Lemonade Inc. and Hims & Hers Health Inc.Thrive Capital announced in March a $2 billion venture fund and says it now has $9 billion under management.More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. Business Yahoo Finance Video 210519 14h50m L Brands down after reporting earnings Yahoo Finance's Emily McCormick joined Yahoo Finance Live to break down L Brands quarterly earnings repor. Howell date : 210519 10h49m40s World Bloomberg 210519 10h43m U.K.’s Post-Brexit Economy Collides With Key Climate Tool (Bloomberg) -- Sign up for our Beyond Brexit weekly newsletter, follow us @Brexit and subscribe to our podcast.The U.K.’s industry is facing even higher carbon costs after the nation debuted its post-Brexit emissions trading system on Wednesday.Putting a price on pollution raises the challenge for the British government of how to be a world leader on climate issues while at the same time making sure its businesses can compete globally. The market’s first day of trading showed that British emissions will be at least as expensive as those in Europe, ratcheting up tension between the climate ambitions of politicians and the need to increase industrial output to boost the economy.”Today’s first U.K. emissions trading system auction is a major milestone in delivering our goal to clean up our energy system, support businesses to decarbonize at the least cost and drive forward the green industrial revolution,” said U.K. Energy Minister Anne-Marie Trevelyan. “At every step of the way, we will protect the competitiveness of British industry and minimize risk of carbon leakage as we transition to a green economy.”The U.K. sold permits for about 6 million metric tons of carbon emissions for just under 44 pounds ($62.30), about the same price as European permits. Still, on the first day of trading benchmark futures contracts for U.K. emissions closed at a 6.5% premium to the EU equivalent. If the price maintains around the current level, it could trigger government intervention as soon as this summer.That differential could be part of the growing pains of a new market, but it’s also be a sign that at least some market participants expect the contracts to be more expensive than those in the EU.The U.K. system is also much smaller than the one in Europe and set to shrink even more. Prime Minister Boris Johnson has vowed to cut emissions by 78% by 2035 on the way to zeroing out emissions by the middle of the century.While the EU has a similar goal for 2050, its path to get there is much different. Coal plants are already nearly extinct in the U.K. and will be completely shutdown by 2024. Germany may take until 2038 to hit that milestone and EU countries like Poland beyond that.That means the U.K. will need to cut emissions from more difficult sectors like industry and use more expensive technologies to meet its goals. Incentivizing that shift will require a consistently higher carbon price.“The U.K. has a more ambitious climate target than the European Union, and that’s ultimately going be reflected in the price,” said Ariel Perez, partner and head of environmental products at Hartree Partners LP. “The U.K. has already achieved more emission reductions than Europe. So the remaining abatement options in the U.K. are fewer and more expensive than those in Europe.”This is just the beginning and prices in the two systems may align in future. If they don’t, that could shift the balance against U.K. business.“If U.K. allowances would actually trade significantly higher than EU allowances, then this would be a competitive disadvantage for U.K. participants,” said Sebastian Rilling, EU power and carbon market analyst at ICIS.While the U.K. modeled its market on the EU one, which it participated in for over 15 years, there are some crucial differences. One obvious difference is that it’s new. That means companies like power generators haven’t built up a surplus of permits like they have over the years in Europe.That led to a surge in demand for the first auction on Wednesday afternoon. Bidders offered to buy permits to cover more than 29 million tons of emissions, though only 6 million were for sale.“There’s pent up demand,” said Louis Redshaw, chief executive officer of Redshaw Advisors Ltd. and a former Barclays Plc trader. “Electric utilities will buy everything they possibly can.”Under the EU system, carbon auctions usually begin in January, so that businesses can buy up permits gradually through the year. But British installations have been polluting for nearly five months without being able to buy any permits.The EU carbon price has surged dramatically in recent months as the market expects a tougher climate agenda to drive up the cost of emissions. Prices have surged more than 50% this year, beating most analyst estimates. Many traders are using the options market to bet that carbon will sail through 100 euros by the end of the year.In the rules set out for the U.K. system, the government has signaled it will be on the look out for any sign that rising costs could lead to a competitive disadvantage for businesses.The government has given itself greater ability than the EU to meddle in the market during its first years. Three months of elevated prices would trigger intervention, compared to 6 months for Brussels. The U.K. could also take action to alter the supply of permits. The current threshold for government intervention is 44.74 pounds in the futures market, 51 pence below Wednesday’s closing price.While a high carbon price is needed to ensure decarbonization, “further work is needed to ensure a level playing field that supports companies in hard to decarbonize sectors and protects competitiveness,” said Tom Thackray, director of infrastructure and energy at the Confederation of British Industry.(Updates with analyst comment from fourth 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. Business Bloomberg 210519 10h41m Bitcoin Whipsaws Investors in Wild Ride That Crippled Exchanges (Bloomberg) -- Bitcoin took investors on a wild ride Wednesday, plunging as much as 31% before cutting the drop by two-thirds in a bout of volatility that drew attention across Wall Street and social media.The extreme price swings in an asset known for its turbulence caused outages on major crypto exchanges and at one point brought Bitcoin’s market value down $500 billion from its peak last month. The tumult elicited a tweet from Elon Musk and signaled a “capitulation” on Cathie Wood’s crypto monitors.The coin pared its loss to 10% as of 12:40 p.m. in New York, up $8,000 from its lows. It has erased all the gains it clocked up following Tesla Inc.’s Feb. 8 announcement that it would use corporate cash to buy the asset and accept it as a form of payment for its vehicles. Ether, the second-biggest coin, sank more than 40%, while joke-token Dogecoin lost 45%.Read More: World’s Top Crypto Platforms Disrupted as Bitcoin, Ether Tumble“This is going to be the first ‘welcome to crypto’ day for a lot of new entrants,” said Stephane Ouellette, chief executive and co-founder of FRNT Financial. “The history of these assets has been littered with aggressive rallies and sickening selloffs.”The selloff dominated market chatter on a day when stocks and commodities were also under pressure and the Federal Reserve was set to release minutes from its latest meeting. Frantic selling sparked outages on some of the biggest exchanges, from Coinbase Global Inc. to Binance. #Cryptotrading was trending on Twitter, where critics and fans alike were in a tither over the rout.Tesla CEO Musk touched off the wild moves last week. Bitcoin plunged when he announced the carmaker wouldn’t take it as a payment, but then reversed when he said the company had no plans to sell its corporate crypto holdings. He seemed to imply in a tweet Wednesday that Tesla is not selling into the rout.At its worst moment Wednesday, Bitcoin plunged to within a whisker of $30,000, leaving it down more than 50% from its April 14 record of almost $65,000.Volatility erupted in crypto-land last week when Musk retracted plans to accept Bitcoin for his company’s cars. Selling resumed over the weekend when the mercurial CEO seemed to suggest Tesla might want to sell its corporate holdings, but reversed after he tweeted that the carmaker had no plans to do so. A statement from the People’s Bank of China on Tuesday reiterating that digital tokens can’t be used as a form of payment added to the selloff.While all were proximate causes for the rout, nothing could explain the frantic rout Wednesday morning, when the coin dropped thousands of dollars in price in a matter of minutes. Selling gave way to more selling as investors lured into crypto in search of a quick buck bolted for the exits. The selling accelerated when Bitcoin fell below its average price for the past 200 days.Chart-watchers pointed to key technical indicators as the coin sold off. Bitcoin bounced off the $30,000 level and many are waiting to see if it can break back above its 200-day moving average line. If it doesn’t, it could potentially retest Wednesday’s lows.Cryptocurrency-linked stocks also dropped, with shares of Coinbase falling near 13% at one point and Marathon Digital Holdings Inc. slumping as much as 16%.Bitcoin had embarked on a multi-month rally following Tesla’s February announcement, soaring to its $64,870 peak, in large part due to the company’s embrace.Wiped OutAt the time, Tesla’s acceptance was hailed as a watershed moment for the coin, with many in the crypto world seeing it as yet another step in its evolution.All that’s been wiped out following Musk’s head-spinning tweets.“Realistically, it is not the first time Elon Musk’s tweets have been erratic and, frankly, wrong,” said Ulrik Lykke, executive director at crypto hedge fund ARK36. “The crypto markets are extremely emotionally driven and their participants are prone to overreacting to events they perceive as negative.”(Updates prices throughout, adds new technicals details)More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. Business Yahoo Finance 210519 10h34m Stock market news live updates: Stocks point to third straight day of losses as technology stocks slide Stocks paced toward a third straight day of declines, with technology shares leading the way lower as concerns over inflation persisted. World Reuters 210519 10h27m REFILE-Scientists should know transmissibility of Indian variant next week – UK medical officer England’s deputy chief medical officer Jonathan Van-Tam said on Wednesday that scientists should know by next week how much more transmissible the COVID-19 variant first found in India is compared to other strains. "The best estimate I can give you really is the data will begin to firm up next week, and next week will be the first time when we have a ranging shot at what the transmissibility increase is," Van-Tam told a press conference. Business Yahoo Finance 210519 10h20m Target CFO: We are ready to fight off inflation Target's CFO Michael Fiddelke says his company is ready to take on the inflation currently gripping Corporate America. Howell date : 210519 10h19m04s Business Reuters 210519 10h10m US STOCKS-Wall Street falls for third day on inflation jitters, crypto plunge Wall Street's main indexes fell for the third straight session on Wednesday, as a steep fall in cryptocurrencies and fears over inflation pushed investors away from riskier assets. "Today is going to be all about the fall of cryptocurrencies and the crash has definitely had a spill over effect into equity markets, which are already burdened with inflation worries," said Dennis Dick, head of markets structure, proprietary trader at Bright Trading LLC in Las Vegas. "We have seen a flight into commodities and other asset classes from equities as investors look to hide from inflationary effects, but now most assets are crowded and the Fed is handcuffed as a tighter policy would mean most of the cash might disappear from markets." Business Reuters 210519 10h09m Mortgage forbearance provided vital relief to small businesses, low-income households -NY Fed study Mortgage forbearance was a lifeline for U.S. low-income homeowners and business owners who faced hardship during the pandemic, giving them the leeway to stay in their homes and keep up with other debt payments, according to research released by the Federal Reserve Bank of New York on Wednesday. The end of that support could lead to a rise in mortgage delinquencies for many of the households still in forbearance, including low-income households and people who were behind on payments before the pandemic, researchers said. "Whether these forbearances are simply forestalling future trouble for strained business owners, or if the post-pandemic economy will support the owners to catch up the lost months remains to be seen," researchers wrote in a series of blog posts released Wednesday. Business Reuters 210519 10h04m BlackRock's climate views put it center stage in Exxon boardroom fight Top asset manager BlackRock could determine the outcome of a proxy fight between Exxon Mobil and a hedge fund seeking to reshape the oil giant's board and future direction. Exxon's 12 directors are up for election on May 26, in a vote that offers a high profile test of BlackRock's approach to getting companies set a course to limit global warming to below 2 degrees Celsius by 2050. Exxon stresses it is on a path to meet the Paris accord with a market-based approach. Politics Yahoo Finance 210519 10h03m Why New York is raising the heat on Trump Probes into Trump's finances are intensifying as Trump loses one legal battle after another to keep his records secret. Business Bloomberg 210519 10h03m U.S. Equities Extend Slide Amid Crypto Plunge: Markets Wrap (Bloomberg) -- U.S. stocks extended their slide on Wednesday as Bitcoin’s plunge sent cryptocurrency-linked shares tumbling and commodity prices fell amid mounting concern about inflation.The S&P 500 fell for a third day, with all 11 major industry groups declining. Energy and raw-material stocks dropped the most as investors awaited the release of the minutes from the Federal Reserve’s last meeting. Crypto-exposed shares including Coinbase Global Inc., Marathon Digital Holdings Inc. and Riot Blockchain Inc. each fell more than 5% after Bitcoin sank to the lowest since January. Tesla Inc. slipped after data showed a slowdown in China sales. Target Corp. touched a record high after predicting a more profitable year as quarterly sales soared.Bitcoin dropped about 30% before cutting that loss in half in late-morning trading. It has erased all the gains that followed Tesla Inc.’s Feb. 8 announcement that it would use corporate cash to buy the asset and accept it as a form of payment for vehicles. Other cryptocurrencies also dropped, pressured in part by a Tuesday statement from the People’s Bank of China reiterating that digital tokens can’t be used as a form of payment.“Tactically, it seems a bit overdone as fundamentals have changed modestly,” Mike Bailey, director of research at FBB Capital Partners, said of the crypto rout. “However, this type of volatility is a reminder that the asset class is pure. This type of move could flush out some of the casual crypto investors, since we haven’t seen this type of downward volatility in some time.”Read More: Crypto Exchanges Creak Under Swift Pace of Transactions: TopLiveStocks have lost steam in recent sessions, with pricier sectors such as technology tumbling on worries about inflation and a Covid-19 resurgence in some countries. While policymakers have signaled they intend to maintain an accommodative stance for some time to come, traders will parse the Fed’s minutes for clues about the outlook. The Bloomberg Commodity Index fell for a second day, trading about 3% below this year’s peak on May 12.“Debate on whether inflation rebound is transitory or persistent might not end soon and could keep markets unnerved during summer,” Barclays Plc strategists led by Emmanuel Cau said in a note. “The risk of another taper tantrum is low at this stage,” while economic and earnings growth should favor equities over bonds, they added.Elsewhere, oil dropped on rising U.S. stockpiles and the possibility of more supply from Iran.Here are some key events this week:The Fed publishes minutes from its April meeting Wednesday, which may provide clues to officials’ views on the recovery and how they define “transitory” when it comes to inflationIMF Managing Director Kristalina Georgieva and ECB President Christine Lagarde speak at the Vienna Economic Dialogue ThursdayEuro-area finance ministers and central bank chiefs hold an informal meeting. A larger group of EU finance ministers and central bank chiefs will meet May 22These are some of the main moves in markets:StocksThe S&P 500 fell 1.1% as of 11:54 a.m. New York timeThe Nasdaq 100 fell 0.8%The Dow Jones Industrial Average fell 1.2%The Stoxx Europe 600 fell 1.5%The MSCI World index fell 1.1%CurrenciesThe Bloomberg Dollar Spot Index rose 0.1%The euro was little changed at $1.2215The British pound fell 0.2% to $1.4164The Japanese yen rose 0.1% to 108.76 per dollarBondsThe yield on 10-year Treasuries was little changed at 1.63%Germany’s 10-year yield was little changed at -0.11%Britain’s 10-year yield declined two basis points to 0.85%CommoditiesWest Texas Intermediate crude fell 3.8% to $63 a barrelGold futures rose 0.9% to $1,885 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. Business Bloomberg 210519 10h00m Oil Sinks Most in Six Weeks Amid Broader Market Meltdown (Bloomberg) -- Oil plunged by the most in six weeks alongside a broader market decline with traders also concerned with growing supply from the U.S. and Iran.Futures in New York tumbled as much as 5.4% on Wednesday amid increasing inflation fears. Equities declined and the dollar strengthened, making raw materials priced in the currency less attractive.Meanwhile, in the oil market, a U.S. government report showed domestic crude stockpiles surged by the most since mid-March last week. Traders are also following talks between world powers in Vienna around reviving an agreement that could remove U.S. sanctions on Iran’s crude exports. The Persian Gulf country said texts are mostly drafted for a return to the deal.Oil and other commodities are declining with “signals from the broader markets about inflation and the impact that could have on slowing this pace of economic growth,” said Rob Thummel, a portfolio manager at Tortoise, a firm that manages roughly $8 billion in energy-related assets. “The market is concerned about uncertainties around global supply and potentially lower global demand in the short-term.”Crude benchmarks have swung with those of wider risky assets in recent days with the Covid-19 crisis in India also pointing to weaker demand. The second wave of the pandemic has lowered Indian Oil Corp.’s sales of gasoline and diesel by 15%-20%. The nation’s biggest refiner also sliced operating rates at plants by more than 80%. However, consumption has shown marked improvement in the U.S. and Europe.Meanwhile, Iran has signaled that documents outlining how to return to the 2015 nuclear deal are “mostly drafted,” though Iran’s lead negotiator said on Wednesday that some complicated differences remain. Iran has already been bringing back output, and said it will soon export oil from a new port, which would allow the country to bypass the Strait of Hormuz.“We could see the administration ratchet up talks to get a deal with Iran and sanctions to be eased,” said Tariq Zahir, managing member of the global macro program at Tyche Capital Advisors LLC. “With OPEC members already increasing supplies and the demand destruction from India, we feel the risk is to the downside in the near-term of crude oil.”This week’s Energy Information Administration report provides the first look at the impact of Colonial Pipeline’s system outage, which had spurred panic-buying and supply disruptions across much of the U.S. Southeast and East Coast last week. Nationwide gasoline inventories fell nearly 2 million barrels last week, though fuel supplies in the U.S. Gulf Coast jumped by the most on record with the pipeline down.More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. Howell date : 210519 09h48m27s Politics Reuters 210519 09h44m UPDATE 1-Emergent plans to fix issues that ruined COVID-19 shots early as July -U.S. House memo Emergent BioSolutions Inc told U.S. regulators it aims as soon as July to correct the problems at its manufacturing facility that ruined millions of COVID-19 vaccine doses, according to a private correspondence published by the U.S. House Oversight Committee. The House memo also noted that one of the top Trump administration officials responsible for awarding the U.S. government vaccine contract to Emergent had previously received hundreds of thousands of dollars in consulting fees from the company. The U.S. Food and Drug Administration paused production of Johnson & Johnson vaccines at Emergent's Baltimore plant in April after an inspection flagged numerous serious quality control and sanitary issues. Business Bloomberg 210519 09h42m Bitcoin Whipsaws Investors in Wild Ride That Crippled Exchanges (Bloomberg) -- Bitcoin took investors on a wild ride Wednesday, plunging as much as 29% before cutting the drop in half in a bout of selling that drew attention across Wall Street and social media.The extreme volatility in an asset known for its swings caused outages on major crypto exchanges and at one point brought Bitcoin’s market value down $500 billion from its peak last month. The tumult elicited a tweet from Elon Musk and signaled a “capitulation” on Cathie Wood’s crypto monitors.Bitcoin plunged as much as 29%, wiping out more than $500 billion in value from the coin’s peak market value. It was down 15% to $36,700 as of 10:53 a.m. in New York. It has erased all the gains it clocked up following Tesla Inc.’s Feb. 8 announcement that it would use corporate cash to buy the asset and accept it as a form of payment for its vehicles. Ethereum, the second-biggest coin, sank more than 40%, while joke token Dogecoin lost 45%.Read More: World’s Top Crypto Platforms Disrupted as Bitcoin, Ether TumbleThe selloff dominated market chatter on a day when stocks and commodities were also under pressure and the Federal Reserve was set to release minutes from its latest meeting. Frantic selling sparked outages on some of the biggest exchanges, from Coinbase Global Inc. to Binance. #Cryptotrading was trending on Twitter, where critics and fans alike were in a tither over the rout.Tesla CEO Elon Musk sparked the wild moves last week. Bitcoin plunged when he announced the carmaker wouldn’t take it as a payment, but then reversed when he said the company had no plans to sell its corporate crypto holdings. He seemed to imply in a tweet Wednesday that Tesla is not selling into the rout.“This is going to be the first ‘welcome to crypto’ day for a lot of new entrants,” said Stephane Ouellette, chief executive and co-founder of FRNT Financial. “The history of these assets has been littered with aggressive rallies and sickening selloffs.”Bitcoin plunged to within a whisker of $30,000, leaving it down more than 50% from its April 14 record of almost $65,000. It was down 14% to $37,000 as of 11:30 a.m. in New York. Ethereum sank 36%, Binance Coin dropped 44% and Dogecoin lost 21%.Volatility erupted in crypto-land last week when Tesla Inc.’s Musk retracted plans to accept Bitcoin for his company’s cars. Selling resumed on the weekend when Musk seemed to suggest Tesla might want to sell its corporate holdings, but reversed after he tweeted that the carmaker had no plans to do so. A statement from the People’s Bank of China on Tuesday reiterating that digital tokens can’t be used as a form of payment added to the selloff.While all were proximate causes for the rout, nothing could explain the frantic rout Wednesday morning, when the coin dropped thousands of dollars in price in a matter of minutes. Selling gave way to more selling as investors lured into crypto in search of a quick buck bolted for the exits. The selling accelerated when Bitcoin fell below its average price for the past 200 days.Chart-watchers pointed to key technical levels that have failed.Cryptocurrency-linked stocks also dropped, with Coinbase Global Inc. falling 5.2% in U.S. premarket trading and Marathon Digital Holdings Inc. slumping 12%.Bitcoin embarked on a multi-month rally following Tesla’s February announcement, soaring to its $64,870 peak, in large part due to the company’s embrace.Wiped OutAt the time, Tesla’s acceptance was hailed as a watershed moment for the coin, with many in the crypto world seeing it as yet another step in its evolution. All that’s been wiped out after Musk sent investors into a tizzy following a mass of head-spinning tweets that started last week when he criticized Bitcoin’s energy use.“Realistically, it is not the first time Elon Musk’s tweets have been erratic and, frankly, wrong,” said Ulrik Lykke, executive director at crypto hedge fund ARK36. “The crypto markets are extremely emotionally driven and their participants are prone to overreacting to events they perceive as negative.”(Updates prices throughout)More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. Business Yahoo Finance 210519 09h40m Chili's owner sees people return in droves for sizzling fajitas, ribs and $5 margaritas Yahoo Finance Live chats with Brinker International CEO Wyman Roberts about what he is seeing at Chili's with more people having been vaccinated for COVID-19. Business Bloomberg 210519 09h39m Russian Metals Giant Plans Split to Focus on Green Aluminum (Bloomberg) -- Russian metals giant United Co. Rusal International PJSC plans to split off its higher-carbon assets, leaving a business focused on the fast-growing green aluminum market.Rusal, along with other producers such as Alcoa Inc. and Rio Tinto Group, is driving the development of so-called “green aluminum,” with automakers and other consumers charged a premium for metal with a smaller carbon footprint. Under Rusal’s plan, its management has proposed changing the name of the company to AL+ as it seeks to become a key player in that potentially lucrative market.“Rusal would focus on reinforcing its position as a leading producer of low-carbon aluminum and the new company would concentrate on the development of the domestic market and its growth potential,” the company said Wednesday in a statement.READ: Russian Metals Giant Ups Ante in Race for Greenest AluminumThe plan comes as Europe, Rusal’s main export market, prepares to implement a carbon border tax that’s expected to affect Russian companies. Last month, Rusal’s parent En+ Group International PJSC said the company had produced aluminum with the lowest carbon footprint as the race for cleaner sources of the metal intensifies.AL+ will include Rusal’s newest smelters -- Khakas and Boguchansky -- as well the Taishet project, international alumina and mining facilities and some other assets. The Russian plants work on hydro-power. AL+ will produce about 2.8 million tons of aluminum a year and its management will focus on net-zero carbon projects and the promotion of low-carbon aluminum brand Allow, En+ Chairman Gregory Barker said by email.Producers who use lower carbon-emitting power generation are starting to brand their output as green aluminum, even though it’s the same metal that’s been marketed for years. At the same time, Rusal and other companies are exploring ways of further reducing emissions or finding technologies that don’t emit any carbon dioxide. Aluminum accounts for an estimated 1% of greenhouse gas emissions by the industrial sector.Nornickel StakeRusal’s almost 28% stake in MMC Norilsk Nickel PJSC will remain in AL+ as it is party to the Russian miner’s shareholder accord and Nornickel dividends are important for the company’s investment program, Rusal said.The new company will house assets including the Bratsk and Irkutsk aluminum smelters, as well the Achinsk alumina refinery and Russian mining assets. It will produce 1.8 million tons per year and overhaul existing facilities to make them less polluting, Barker said. Both businesses will be self-sufficient and able to service their respective debt, according to En+.En+’s board of directors suggested that in the interests of Rusal shareholders it would be better for the higher-carbon business to be listed on the Moscow Exchange. Its shares should be allocated to current Rusal owners on a pro-rata basis, it said. Still, no final decision has been taken and Rusal will study all potential options for the deal. The split would also require regulatory approval.The U.S. Office of Foreign Assets Control has been informed of the proposed asset split and will be kept updated, En+ said. Rusal and En+ emerged from the U.S. sanctions in early 2019 following an accord with the OFAC, which curbed the influence of controlling shareholder Oleg Deripaska.Rusal shares declined 4.4% as of 5:10 p.m. in Moscow trading.(Updates with En+ Chairman comments in sixth paragraph, OFAC being informed in penultimate)More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. Business Yahoo Finance Video 210519 09h37m Retailers to watch post-Covid Target reported first quarter earnings that blew past expectations. BMO Managing Director Simeon Siegel joins Yahoo Finance Live to discuss. Business Bloomberg 210519 09h36m Deutsche Telekom Said in Talks for SoftBank’s T-Mobile Stake (Bloomberg) -- Deutsche Telekom AG is in talks about a potential offer for SoftBank Group Corp.’s 8.5% stake in T-Mobile US Inc., a deal that would give the German telecom giant greater control over its U.S. affiliate.The terms of a potential deal, including whether Deutsche Telekom might bid for the entire stake to get majority control, haven’t been finalized and no firm decision has been made about an offer, according to people familiar with the matter, who asked not to be identified because the talks are private. Deutsche Telekom Chief Executive Officer Tim Hoettges may reveal plans to expand the company’s U.S. presence at a capital markets day this week, one of the people said.Representatives for Deutsche Telekom and SoftBank declined to comment.Hoettges has a unique opportunity to increase the carrier’s exposure to the U.S., which generates healthier returns than the rest of its footprint, for a below-market rate. In 2020, SoftBank raised $14.8 billion from selling T-Mobile US shares to institutional investors. The terms of the deal gave Deutsche Telekom the right to buy some of SoftBank’s remaining stake at a price based on T-Mobile US’s share price at the time, more than 20% cheaper than they are now.Read More: SoftBank Stake Sale Could Change T-Mobile’s Prospects: Alex WebbUnder the options’ terms, Deutsche Telekom can buy as many as 44.9 million shares at a price that’s roughly equivalent to where the shares were trading in June 2020, or just over $100, according to regulatory filings and statements from the companies at the time. Another 56.6 million shares are available at the 20-day volume-weighted average price leading up to the purchase. If Deutsche Telekom were to buy all 101.5 million shares at Wednesday’s prices, the deal would cost approximately $12 billion.Deutsche Telekom has until June 2024 to act on the options.The Japanese group became co-owner of T-Mobile US last year after the carrier completed a merger with Sprint Corp., which was controlled by SoftBank. SoftBank’s 8.5% holding in the merged company is valued at about $14.3 billion as of the shares’ last closing price. Deutsche Telekom currently owns 43% of T-Mobile US.“We endorse the Board of Management’s objective of continuing on a consistent growth course in the United States and Europe,” said Ulrich Lehner, chairman of Deutsche Telekom’s supervisory board, in a separate statement ahead of the company’s capital markets day on Thursday. “The Supervisory Board also explicitly supports the expanded U.S. strategy - following the successful turnaround and the merger with Sprint.”SoftBank has been raising capital over the past two years as part of a push to unload assets to finance stock buybacks and pay down debt. Masayoshi Son’s technology investment giant has enjoyed an upturn in fortunes over the past twelve months, with SoftBank’s Vision Fund investment arm driving recent profits after being the source of its biggest loss a year ago.(Updates with details on option pricing, comment from Deutsche Telekom’s board from fifth 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. Howell date : 210519 09h17m50s Business Reuters 210519 09h03m UPDATE 1-Airbus to end production at one Spanish plant Airbus is discussing plans to combine the operations of its two aerospace factories in Cadiz, southern Spain, into one plant spanning civil and defence activities, a spokesman said. The proposal, which is subject to final union negotiations on matters such investment, would avoid compulsory redundancies in Airbus's wider workforce in Spain: one of its core nations alongside France, Germany and Britain. It follows months of speculation and occasional worker protests over the future of one of the Cadiz plants, Puerto Real, which built part of the colossal A380's tail section. Business Reuters 210519 09h02m UPDATE 1-Sterling shrugs at rising inflation, hovers below $1.42 Sterling turned slightly lower against a recovering dollar and hit its lowest in more than a week against the euro on Wednesday, after data showed a doubling of consumer price inflation in Britain in April. British consumer prices rose by 1.5% in April, the Office for National Statistics said, following a 0.7% rise in March. The Bank of England says inflation in Britain is heading above its 2% target and will hit 2.5% at the end of 2021 thanks to a rise in global oil prices and the expiry in September of COVID-19 emergency cuts to value-added tax in the hospitality sector, as well as comparisons with the pandemic slump of 2020. Business Reuters 210519 09h00m Fed's Bullard: Expectations of 1 mln jobs a month "hyped up," half a million more realistic Expectations of a surge of job growth topping one million per month is "hyped up," with a half million jobs a month more realistic amid a potentially slow recovery of labor force participation, St. Louis Federal Reserve president James Bullard said on Wednesday. "I do think the labor market is tighter than is being represented" in part because some of the workers who left jobs at the onset of the pandemic are likely gone from the labor force for good, Bullard said, noting a rise in retirements. Business Bloomberg 210519 09h00m Bitcoin Plunge Wipes $500 Billion From Value in Crypto Rout (Bloomberg) -- The crypto bubble that inflated Bitcoin’s value past $1 trillion and added billions to nonsense digital tokens overnight is bursting.Bitcoin plunged as much as 29%, wiping out more than $500 billion in value from the coin’s peak market value. It was down 15% to $36,700 as of 10:53 a.m. in New York. It has erased all the gains it clocked up following Tesla Inc.’s Feb. 8 announcement that it would use corporate cash to buy the asset and accept it as a form of payment for its vehicles. Ethereum, the second-biggest coin, sank more than 40%, while joke token Dogecoin lost 45%.Read More: World’s Top Crypto Platforms Disrupted as Bitcoin, Ether TumbleThe selloff dominated market chatter on a day when stocks and commodities were also under pressure and the Federal Reserve was set to release minutes from its latest meeting. Frantic selling sparked outages on some of the biggest exchanges, from Coinbase Global Inc. to Binance. #Cryptotrading was trending on Twitter, where critics and fans alike were in a tither over the rout. Tesla CEO Elon Musk sparked the wild moves last week. Bitcoin plunged when he announced the carmaker wouldn’t take it as a payment, but then reversed when he said the company had no plans to sell its corporate crypto holdings. Bitcoin is now down more than 50% from its record of almost $65,000 set in April. A statement from the People’s Bank of China on Tuesday reiterating that digital tokens can’t be used as a form of payment added to the selloff.“This is going to be the first ‘welcome to crypto’ day for a lot of new entrants,” said Stephane Ouellette, chief executive and co-founder of FRNT Financial. “The history of these assets has been littered with aggressive rallies and sickening selloffs.”Chart-watchers pointed to key technical levels that have failed.“From a technical standpoint, the indicators are flashing red,” said Ipek Ozkardeskaya, senior analyst at Swissquote in Gland, Switzerland. “The next important support level stands near $37,000, then the $30,000 mark. There is a chance that we see a pullback to these levels and even below, at least in the short run.”Cryptocurrency-linked stocks also dropped, with Coinbase Global Inc. falling 5.2% in U.S. premarket trading and Marathon Digital Holdings Inc. slumping 12%.Then there’s Musk.With his often cryptic Twitter posts moving millions, the Tesla chief has become a Svengali-like character in the world of crypto. Bitcoin embarked on a multi-month rally following Tesla’s February announcement, soaring to its $64,870 peak, in large part due to the company’s embrace.Wiped OutAt the time, Tesla’s acceptance was hailed as a watershed moment for the coin, with many in the crypto world seeing it as yet another step in its evolution.All that’s been wiped out after Musk sent investors into a tizzy following a mass of head-spinning tweets that started last week when he criticized Bitcoin’s energy use.Tesla would suspend car purchases using the token, he announced, calling recent energy-consumption trends “insane.” Over the weekend, after insinuating his EV company might have sold its Bitcoin holdings, he sent out tweets clarifying that it hadn’t. All of which had traders scrambling.“Realistically, it is not the first time Elon Musk’s tweets have been erratic and, frankly, wrong,” said Ulrik Lykke, executive director at crypto hedge fund ARK36. “The crypto markets are extremely emotionally driven and their participants are prone to overreacting to events they perceive as negative.”(Updates prices throughout)More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. Howell date : 210519 08h47m14s Business Reuters 210519 08h40m Readout of Fed meeting may highlight potential policy dilemma The Federal Reserve on Wednesday will release a readout of its April policy meeting, an event already overrun by data showing disappointing jobs growth and a spike in inflation that has kicked a debate about whether the U.S. central bank is off course into high gear. Fed officials have pledged to keep their ultra-loose, crisis-fighting policies in place, betting that the unexpected surge in consumer prices last month stems from temporary forces that will ease on their own, and that the U.S. jobs market needs far more time to get people back to work. Comments from Fed officials since the April 27-28 meeting have indicated that if anything the employment data from April cemented the view that it was still too early to discuss changes to the Fed's $120 billion in monthly bond purchases. Business Bloomberg 210519 08h39m Dream Industrial Wins Auction for $1.1 Billion Warehouse Fund in Europe (Bloomberg) -- Dream Industrial Real Estate Investment Trust has won an auction to buy the assets in a European warehouse fund, the company said in a statement Wednesday, confirming an earlier report by Bloomberg News.The Canadian REIT will pay 880 million euros ($1.1 billion) for the portfolio of 31 European warehouses, according to the statement. The offer was selected by seller Clarion Partners Europe ahead of rival bids ranging from 850 million euros to 900 million euros, people with knowledge of the process said.The company’s ability to execute the deal quickly was a factor in beating out higher offers, said the people, asking not to be identified as the process is private.“All the assets are well located in their respective geographies, with easy access to transportation networks and are well poised for growth in income and value,” according to the statement from Dream.A spokesman for Clarion Partners, which is owned by Franklin Resources Inc., declined to comment.Europe’s warehouse market is red hot as retailers rush for space to service the boom in ecommerce that’s accelerated during lockdowns designed to stop the spread of the deadly coronavirus. Across Europe, companies rented a record 345 million square feet of warehouse space last year, 14% higher than 2019, data compiled by broker Cushman & Wakefield Plc show.Read more: London Tops Hong Kong For World’s Priciest Warehouse SpaceThat’s causing bidding wars for properties as investors bet rents will continue to rise. Clarion’s portfolio had been expected to sell for more than 800 million euros when it was first put on sale in January, according to a report by Property EU.Dream Industrial Real Estate Investment Trust fell as much as 1.6% in early trading Wednesday.The portfolio, which includes properties in six countries including France, Germany and the Netherlands, includes plots of land that offer the chance for further development, Dream’s statement said. The deal is expected to close in the next 60 days, it said.Vacancy rates across European warehouses reached a record low 5.3% at the end of 2020, according to research published by Savills Plc. That will support average rental growth for the best big warehouses in Europe of 1.9% per year through 2024, according to a report published by broker CBRE Group Inc.More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. Health Yahoo Finance 210519 08h35m 'Vaccinated people are exceedingly safe,' doctor stresses amid reports of breakthrough cases Recent reports of breakthrough cases of COVID-19 sparked worry among many Americans, who feared that the coronavirus vaccines are not effective after all. Business Reuters 210519 08h31m Wells Fargo to onboard active cryptocurrency strategy for rich clients In a report titled "The investment rationale for cryptocurrencies", the Wells Fargo Investment Institute (WFII) said it views digital assets as an alternative investment for qualified investors through a professionally managed fund. "WFII believes that cryptocurrencies have gained stability and viability as assets, but the risks lead us to favor investment exposure only for qualified investors, and even then through professionally managed funds," it said. Business Bloomberg 210519 08h30m Cathie Wood Buys Tesla Amid Musk Bitcoin Spat, Burry Shorts (Bloomberg) -- Cathie Wood’s Ark Investment Management is buying the dip in Tesla Inc., sticking with high-conviction names and setting aside a big disagreement with Elon Musk over Bitcoin.Ark exchange-traded funds added more than 47,000 shares in the electric carmaker in the last trading session, according to data released late Tuesday. While that’s worth a modest $27 million, it’s the first time the firm has purchased Tesla since April.Tesla has dropped 38% from its January peak as inflationary fears spur investors to sell expensive assets -- prompting Wood to demonstrate her propensity to enlarge Ark’s positions in favorite tech bets at market lows.The firm also recently bought Twitter Inc. amid its worst week since October. And Wood has been consistently adding cryptocurrency exchange Coinbase Global Inc., whose shares have been declining for much of the past month after rallying in its April IPO.Read more: Musk Splits From Cathie Wood’s Ark on Bitcoin Environmental CostSome of that retreat is likely down to Musk, who fueled a slump in the largest cryptocurrency after hitting out at the token’s high energy demands and reversing a decision to accept it as a form of payment.With Ark a big proponent of Bitcoin and a believer in its green credentials, it’s all adding to recent drama in the world of speculative tech. While Wood appears committed to her Tesla bet, famed investor Michael Burry has been revealed to be betting heavily against the carmaker via put options.Bitcoin has erased all the gains since Tesla’s Feb. 8 announcement that it would use corporate cash to buy the digital currency, and was trading at around $35,700 as of 10:28 a.m. in New York. Tesla was down 4.4%.Read more: Coinbase Plunges With Other Crypto Stocks Amid Bitcoin Rout“Wood is making her move once again when everyone else is looking elsewhere,” said James Pillow, managing director at Moors & Cabot Inc.More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. Business Bloomberg 210519 08h29m Canadian Consumer Prices Climb at Fastest Pace in a Decade (Bloomberg) -- Consumer prices in Canada climbed at the fastest rate in a decade, outpacing estimates and potentially fueling concerns that the country -- much of which is still in lockdown -- is entering a period of persistent inflation.Annual inflation accelerated to 3.4% in April, compared with 2.2% in March, Statistics Canada reported Wednesday in Ottawa. That exceeded economist predictions of a 3.2% annual pace. On a monthly basis, inflation rose 0.5% versus the 0.2% economists were expecting.The annual reading -- the highest since May 2011 -- may raise worries that price pressures could be stronger than predicted by the Bank of Canada, which has been cautioning against over-reacting to an inflation spike it expects will be only transitory. If inflation proves more durable, however, that could force the central bank to bring forward interest rate increases that investors aren’t anticipating until later next year.Core inflation -- often seen as a better measure of underlying price pressures -- rose to 2.1% from 1.9% in March. That’s the highest since 2012.Higher gasoline prices were the biggest upward contributer to annual inflation. They were up 62.5% in April compared with the same time last year, when prices plunged to an 11-year low in the early weeks of the pandemic, the report said. On a monthly basis, shelter prices were the biggest upward contributer due to higher building costs and strong demand for single family homes.The annual consumer price index reading is distorted because the year-ago period used as comparison coincided with broad demand and price declines at the beginning of the Covid-19 pandemic, a phenomenon known as the base effect.What Bloomberg Economics Says...“Until the Bank of Canada sees labor market slack largely closed, and consumer wage and inflation expectations show signs of breaking out of a lengthy drift lower, we think policy makers will move very carefully in the direction of a rate hike.”--Andrew Husby, economistFor the full report, click hereA similar phenomenon also drove inflation higher in the U.S. last month to an annual 4.2% pace. Unlike in the U.S., inflation in Canada may be rising at a slower pace because much of the country was still in some form of a Covid-related shutdown last month, stunting demand for goods and services. Recent gains in the Canadian dollar also may have dampened inflation pressures.“Base effects and higher commodity prices have done most of the damage, similar to what was seen in the U.S. CPI release last week, although that also had a boost from the US economic reopening,” Simon Harvey, a senior foreign exchange analyst at Monex Canada, said by email.Canada’s dollar fell after the report, trading 0.3% lower at C$1.2101 per U.S. dollar at 9:01 a.m. in Toronto trading. Yields on Canadian government five-year bonds were little changed at 0.95%.Bank of Canada Governor Tiff Macklem had predicted that inflation would rise to about 3% because of these base effects, but he also said he believes that underlying price pressures remain depressed because of continued slack in the economy. In its latest forecasts released last month, the central bank forecast inflation to average 2.9% in the second quarter before returning near its 2% target by the end of the year.“BoC members have already stated that they’d look through the short-term overshoot in inflation, meaning there is a high bar for CPI to clear before markets start to speculate on changing expectations of normalization,” Harvey said.(Updates with Bloomberg Economics box.)More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. Business Bloomberg 210519 08h29m Intesa, UniCredit Head for Reckoning as Loan Holidays End (Bloomberg) -- Banks in Europe’s vulnerable south are about to find out the true scale of the damage to their loan books from the pandemic’s economic turmoil.Hundreds of thousands of companies and households in nations including Italy and Portugal are resuming loan interest payments that were frozen when lock-downs threatened their livelihoods. Many borrowers from hard-hit sectors like tourism are consequently at greater risk of default, according to Fitch Ratings Inc.Italian lenders Intesa Sanpaolo SpA and UniCredit SpA have some of the biggest piles of loans with suspended payments. Regulators have repeatedly warned that banks are not taking the oncoming rise in bankruptcies seriously enough amid broadening optimism over the vaccine-driven recovery.Credit quality is particularly uncertain in countries including Cyprus, Italy and Portugal, Bernhard Held, a senior credit officer at Moody’s Investors Service said in a May 11 report. “The remaining loans benefiting from moratoria will be the main pockets of potential credit deterioration.”Lenders across the continent posted an almost clean-sweep of above-expectation earnings last quarter, with executives striking a much more optimistic tone than regulators about the need to put cash aside for future troubled credit. Those lower provisions boosted profit figures, and the outlook for dividend payments to investors.Read More: Europe’s Banks Are No Longer as Afraid of Economic Meltdown Borrowers from Germany and the Nordics took less recourse to loan suspensions and most of them have already expired. That means that whereas northern European countries have mostly dealt with the hidden risks from loan moratoria, the reckoning is still to come further south.“I expect a deterioration across the whole credit portfolio, even if loans don’t necessarily become non-performing,” Marco Giorgino, a professor of finance and risk management at MIP Politecnico di Milano, said in an interview.Second quarter results will bring evidence of how well southern European banks have provisioned, with a large portion of their remaining moratoria set to expire. UniCredit said that it will see 16.2 billion euros ($19.8 billion) out of a total 18.9 billion euros of frozen loans restart payments in that period. For Santander, it’s about 7 billion euros of a remaining 16 billion euros of deferred loans.Borrowers from sectors most impacted by the pandemic, such as hospitality, education and entertainment, have made greater use of payment holidays, according to the European Banking Authority.Several banks are overly reliant on ineffective indicators, outdated ratings and backward-looking information when assessing the likelihood that borrowers in the food and accommodation sectors can make payments on loans, according to the European Central Bank. In some cases, banks modified loans that don’t meet the criteria for moratoria without flagging them as forborne. “This could potentially conceal the true risks in banks’ books,” the ECB said on Wednesday.A renewed increase of bad loans may undo years of post-financial crisis clean-up, when regulators pushed lenders to restructure and dispose of non-performing credit.Still, most banks are signaling that they’re relaxed about the potential impact on asset quality of a progressive removal of credit protection. Many say that borrowers who exited moratoria have generally kept up with payments.The situation “is totally under control” both for Intesa and other Italian banks, Intesa Chief Executive Officer Carlo Messina, whose bank has about 30 billion euros of loans still under moratoria, said in a Bloomberg TV interview on May 11. “We made an analysis client by client on all clients under moratoria,“ and they have a lot of liquidity in their accounts, he said.The Italian lender saw a 1.5% average default rate across its expired moratoria, according to its first quarter results.Additional relief for banks has been given by European governments in the form of guarantees. States stood behind almost 350 billion euros of loans as of the end of last year, according to a survey by the EBA, shifting some or all of the default risk from banks to taxpayers. The benefits of these guarantees will also last longer than for moratoria. Nearly a quarter of Italian guarantees expire between two and five years away, EBA data show. For Spain, the proportion is 90%.“Countries with high impaired loans, such as Greece, Ireland, Italy and Portugal, that made greater use of moratoria schemes will face higher inflows of new impaired loans,” Fitch analysts including Francois-Xavier Deucher wrote in a report.(Updates with ECB comments on banks underestimating risk in 10th 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. Howell date : 210519 08h16m37s Business Bloomberg 210519 08h01m Dream Industrial Wins Auction for $1.1 Billion Warehouse Fund in Europe (Bloomberg) -- Dream Industrial Real Estate Investment Trust has won an auction to buy the assets in a European warehouse fund for 880 million euros ($1.1 billion), according to people with knowledge of the matter.The Canadian REIT’s offer was selected by seller Clarion Partners Europe ahead of rival bids ranging from 850 million euros to 900 million euros, said the people, who asked not to be identified because the process is private. The company’s ability to execute the deal quickly was a factor in beating out higher offers, the people said. The deal has not yet completed and there’s still a chance that it could collapse, they added.A spokesman for Clarion Partners, which is owned by Franklin Resources Inc., declined to comment. A representative for Dream Industrial did not immediately respond to a request for comment outside of normal office hours.Europe’s warehouse market is red hot as retailers rush for space to service the boom in ecommerce that’s accelerated during lockdowns designed to stop the spread of the deadly coronavirus. Across Europe, companies rented a record 345 million square feet of warehouse space last year, 14% higher than 2019, data compiled by broker Cushman & Wakefield Plc show.Read more: London Tops Hong Kong For World’s Priciest Warehouse SpaceThat’s causing bidding wars for properties as investors bet rents will continue to rise. Clarion’s portfolio had been expected to sell for more than 800 million euros when it was first put on sale in January, according to a report by Property EU.Dream Industrial Real Estate Investment Trust fell as much as 1.6% in early trading Wednesday.The deal includes 31 properties in six countries including France, Germany, the Netherlands and Spain, the people said. Vacancy rates across European warehouses reached a record low 5.3% at the end of 2020, according to research published by Savills Plc.That will support average rental growth for the best big warehouses in Europe of 1.9% per year through 2024, according to a report published by broker CBRE Group Inc.(Updates with Dream REIT’s shares in the sixth 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. Business Reuters 210519 07h59m UPDATE 1-Germany confirms U.S. waiver on some Nord Stream 2 sanctions The United States is waiving sanctions on the company behind Russia's Nord Stream 2 pipeline to Europe and its chief executive, Germany said on Wednesday, giving Berlin and Washington three more months to resolve a long-standing row. The stand-off over the completion of the $11 billion venture, led by Russian state energy firm Gazprom, has strained ties at a time when Berlin and Washington are eager to rebuild relations which were severely damaged under former U.S. President Donald Trump. Business Reuters 210519 07h59m U.S. businessman Rozenberg gets nod to control Israel's El Al Israel's government on Wednesday gave permission for businessman Kenny Rozenberg to join his son in controlling flag carrier El Al Israel Airlines. Rozenberg, the chief executive of New York-based nursing home chain Centers Health Care who recently became an Israeli citizen, will be eligible to join the airline's board. Last October, Israel's privatisation body granted control of cash strapped El Al to his son, 28-year-old religious student Eli Rozenberg. Business Bloomberg 210519 07h39m Crypto Lender Mistakenly Deposits Bitcoin Into User Accounts (Bloomberg) -- BlockFi Inc., a crypto-lending startup, mistakenly sent some users Bitcoin as part of a promotion and is working on reversing it.The company made what it called incorrect promo payouts in Bitcoin instead of U.S. dollars to certain customers. Though BlockFi worked on reversing them, fewer than 100 recipients withdrew the coins before the company could backpedal. The firm’s exposure is around $10 million, though that amount is decreasing as more users return the coins, said Zac Prince, co-founder and chief executive officer of BlockFi.“BlockFi carries loss reserves as part of its accounting policies and this is a fraction of existing loss reserves -- so no negative impact to equity or ongoing platform operations,” Prince wrote by email. “The issue that caused the withdrawals was fixed and incremental safeguards have been developed to prevent any similar issue in the future.”The erroneous deposits have not affected BlockFi’s ongoing operations and the company is notching record levels of trading volume without interruption, he added.Meanwhile, screenshots of the deposits made their rounds on social media, with at least one Tweet showing a deposit of 700 Bitcoin. Though it’s down significantly this week, each coin is trading around $34,000 Wednesday.Last week, BlockFi tweeted that some promotion participants “may see an inaccurate bonus payment displayed in their transaction history.”Meanwhile, the company’s emailed affected users asking for the money to be returned.BlockFi, perhaps the most visible nonbank ­cryptocurrency firm, offers a number of crypto products, including borrowing and lending and it runs platforms for trading cryptocurrency. It’s been in the limelight as it’s grown in recent months amid a crypto-market rally that’s being unwound this week.Read more: Lending Bitcoin to Earn 6% Comes With Risk You Won’t Get at BankThe crypto firm’s snafu is reminiscent of Citigroup Inc.’s $500 million blunder last summer when it accidentally sent payments to a group of lenders.“As a stand-alone, it was just a glitch,” Mike Loukas, chief executive officer at TrueMark Investments, said of BlockFi. “We see it with banks all the time in dollars. But because it’s such a volatile asset, the mistake gets magnified.”More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. Business Bloomberg 210519 07h38m Bitcoin Plunge Wipes $500 Billion From Value in Crypto Rout (Bloomberg) -- The crypto bubble that inflated Bitcoin’s value past $1 trillion and added billions to nonsense digital tokens overnight is bursting.Bitcoin plunged almost 22% to $35,000, wiping out more than $500 billion in value from the coin’s peak market value. It has erased all the gains it clocked up following Tesla Inc.’s Feb. 8 announcement that it would use corporate cash to buy the asset and accept it as a form of payment for its vehicles. Ethereum, the second-biggest coin, sank more tha 40%, while joke token Dogecoin lost 45%.Bitcoin is now down more than 50% from its record of almost $65,000 set in April. Fueling the volatility is Tesla CEO Elon Musk, whose social-media utterances have whipsawed the crypto community. A statement from the People’s Bank of China on Tuesday reiterating that digital tokens can’t be used as a form of payment added to the selloff.The selloff dominated market chatter on a day when equities also were tumbling and the Federal Reserve was set to release minutes from its latest meeting. #Cryptotrading was trending on Twitter, where critics and fans alike were in a tither over the rout. Critics had warned for weeks that the moves in crypto assets were unsustainable and that any sign of a selloff would lead to a rout.“This is going to be the first ‘welcome to crypto’ day for a lot of new entrants,” said Stephane Ouellette, chief executive and co-founder of FRNT Financial. “The history of these assets has been littered with aggressive rallies and sickening selloffs.”Chart-watchers pointed to key technical levels that have failed.“From a technical standpoint, the indicators are flashing red,” said Ipek Ozkardeskaya, senior analyst at Swissquote in Gland, Switzerland. “The next important support level stands near $37,000, then the $30,000 mark. There is a chance that we see a pullback to these levels and even below, at least in the short run.”Cryptocurrency-linked stocks also dropped, with Coinbase Global Inc. falling 5.2% in U.S. premarket trading and Marathon Digital Holdings Inc. slumping 12%.Then there’s Musk.With his often cryptic Twitter posts moving millions, the Tesla chief has become a Svengali-like character in the world of crypto. Bitcoin embarked on a multi-month rally following Tesla’s February announcement, soaring to its $64,870 peak, in large part due to the company’s embrace.Wiped OutAt the time, Tesla’s acceptance was hailed as a watershed moment for the coin, with many in the crypto world seeing it as yet another step in its evolution.All that’s been wiped out after Musk sent investors into a tizzy following a mass of head-spinning tweets that started last week when he criticized Bitcoin’s energy use.Tesla would suspend car purchases using the token, he announced, calling recent energy-consumption trends “insane.” Over the weekend, after insinuating his EV company might have sold its Bitcoin holdings, he sent out tweets clarifying that it hadn’t. All of which had traders scrambling.“Realistically, it is not the first time Elon Musk’s tweets have been erratic and, frankly, wrong,” said Ulrik Lykke, executive director at crypto hedge fund ARK36. “The crypto markets are extremely emotionally driven and their participants are prone to overreacting to events they perceive as negative.”(Updates prices throughout)More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. Business Bloomberg 210519 07h36m Target Expects a More Profitable 2021 After Its Sales Soar (Bloomberg) -- Target Corp. said it expects wider 2021 margins than it had foreseen earlier this year, boosted by a shift in demand toward more profitable items like apparel and home decor. The shares rose.The retailer said its full-year operating profit margin will be “well above” last year’s 7% level, and possibly reach 8% or more. It also expects comparable-store sales to remain positive in the last two quarters of the year -- even though it will be facing very difficult comparisons with last year’s pandemic-fueled boom. First-quarter sales growth, bolstered by a surge in in-store purchases, came in at more than double the estimate compiled by Bloomberg.Chief Executive Officer Brian Cornell said in a statement Wednesday that the first quarter was “outstanding on every measure,” and included more than $1 billion in market-share gains. “We’re confident in continued comp growth in the second quarter and through the remainder of the year, as well as a healthy full-year operating margin rate.”Target wasn’t as confident in March, when it said 2021 operating margins would be at the low end of a range between 6% and 7%. The rollout of vaccinations, along with federal stimulus checks, made the outlook rosier, Target executives said on a call with reporters.“The guidance we gave last quarter was a wide range,” Chief Financial Officer Michael Fiddelke said on the call. “We learned a lot as the quarter progressed and we saw the strength of the sales environment.”Target shares climbed 2.1% to $210.69 at 9:31 a.m. in New York on Wednesday. The stock had already gained 17% this year through Tuesday.Repeat VisitsThe results and raised guidance trumped Tuesday’s report from rival Walmart Inc. and showed that Target remains in the upper echelon of the retail industry’s pandemic-era winners. Cornell’s acquisitions of e-commerce logistics providers and the use of stores as online fulfillment hubs has boosted digital sales -- which rose 50% on a comparable basis in the quarter -- while partnerships with brands like Ulta Beauty, Apple and Levi successfully lured shoppers back for repeat visits.Target’s own brands, which include Cat & Jack kids’ clothes and All in Motion women’s activewear, also did well, growing a record 36% in the period. Private labels carry wider profit margins, and also help offset price hikes by vendors due to input cost inflation.Target’s Chief Financial Officer Michael Fiddelke said he saw “pockets of pressure” from inflation, and analysts might learn more on a call to discuss results this morning.As shoppers shift spending from food and essentials to dresses, travel gear and items for home entertaining, Target is poised to grab even more sales and market share. In the first quarter, apparel sales rose more than 60%, home goods were up about 35% and items like appliances and sporting goods increased more than 30%. By comparison, Walmart’s sales of general merchandise items rose more than 20%.Related: Americans Are Finally Shopping Like They Have Somewhere to GoChief Growth Officer Christina Hennington said customers are focusing on “style and mobility” as they venture out of their homes for work, school and social occasions. That’s led to a pickup in sales of dresses, cosmetics, luggage, sporting goods and activewear. She also said Target is planning for one of its biggest back-to-school shopping seasons ever, but declined to provide details on any specific initiatives around that.“On the back of this strong quarterly result, the next challenge for Target is retaining its market share gains,” said Hilding Anderson, head of retail strategy for North America at digital consultant Publicis Sapient. “It remains to be seen whether the consumers who relied so heavily on Target throughout the pandemic will stick around for the long-term.”Target expects that they will, adding that second-quarter comparable sales should increase at a mid-to-high single digit pace, while operating margins in the period will also be “well above” the year-ago figure of 7.2%.E-CommerceThe company also reported more growth in the use of services like curbside and in-store pickup for online orders, with “same-day services” surging more than 90%. This is proof the habits that Americans picked up during the long pandemic -- more e-commerce and new services like curbside pickup -- are getting more deeply rooted in shoppers’ preferences.While e-commerce has trimmed profitability for many retailers, Target has managed to shave the costs associated with fulfilling online orders by using its stores as mini-warehouses and focusing on store pickup. More efficient same-day delivery routes using software from Deliv, which Target acquired last year, have also helped. On the company’s call with analysts, Cornell said Target hasn’t had issues finding staff -- a departure from many retailers that have reported trouble keeping workers on board. He attributed that to the company’s $15 per hour starting wage, while Chief Operating Officer John Mulligan said Target has invested in training and employee turnover is “down significantly” from last year. (Updates to include share trading and details from conference call.)More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. Howell date : 210519 07h46m00s Business Bloomberg 210519 07h36m Target Expects a More Profitable 2021 After Its Sales Soar (Bloomberg) -- Target Corp. said it expects wider 2021 margins than it had foreseen earlier this year, boosted by a shift in demand toward more profitable items like apparel and home decor. The shares rose.The retailer said its full-year operating profit margin will be “well above” last year’s 7% level, and possibly reach 8% or more. It also expects comparable-store sales to remain positive in the last two quarters of the year -- even though it will be facing very difficult comparisons with last year’s pandemic-fueled boom. First-quarter sales growth, bolstered by a surge in in-store purchases, came in at more than double the estimate compiled by Bloomberg.Chief Executive Officer Brian Cornell said in a statement Wednesday that the first quarter was “outstanding on every measure,” and included more than $1 billion in market-share gains. “We’re confident in continued comp growth in the second quarter and through the remainder of the year, as well as a healthy full-year operating margin rate.”Target wasn’t as confident in March, when it said 2021 operating margins would be at the low end of a range between 6% and 7%. The rollout of vaccinations, along with federal stimulus checks, made the outlook rosier, Target executives said on a call with reporters.“The guidance we gave last quarter was a wide range,” Chief Financial Officer Michael Fiddelke said on the call. “We learned a lot as the quarter progressed and we saw the strength of the sales environment.”Target shares climbed 2.1% to $210.69 at 9:31 a.m. in New York on Wednesday. The stock had already gained 17% this year through Tuesday.Repeat VisitsThe results and raised guidance trumped Tuesday’s report from rival Walmart Inc. and showed that Target remains in the upper echelon of the retail industry’s pandemic-era winners. Cornell’s acquisitions of e-commerce logistics providers and the use of stores as online fulfillment hubs has boosted digital sales -- which rose 50% on a comparable basis in the quarter -- while partnerships with brands like Ulta Beauty, Apple and Levi successfully lured shoppers back for repeat visits.Target’s own brands, which include Cat & Jack kids’ clothes and All in Motion women’s activewear, also did well, growing a record 36% in the period. Private labels carry wider profit margins, and also help offset price hikes by vendors due to input cost inflation.Target’s Chief Financial Officer Michael Fiddelke said he saw “pockets of pressure” from inflation, and analysts might learn more on a call to discuss results this morning.As shoppers shift spending from food and essentials to dresses, travel gear and items for home entertaining, Target is poised to grab even more sales and market share. In the first quarter, apparel sales rose more than 60%, home goods were up about 35% and items like appliances and sporting goods increased more than 30%. By comparison, Walmart’s sales of general merchandise items rose more than 20%.Related: Americans Are Finally Shopping Like They Have Somewhere to GoChief Growth Officer Christina Hennington said customers are focusing on “style and mobility” as they venture out of their homes for work, school and social occasions. That’s led to a pickup in sales of dresses, cosmetics, luggage, sporting goods and activewear. She also said Target is planning for one of its biggest back-to-school shopping seasons ever, but declined to provide details on any specific initiatives around that.“On the back of this strong quarterly result, the next challenge for Target is retaining its market share gains,” said Hilding Anderson, head of retail strategy for North America at digital consultant Publicis Sapient. “It remains to be seen whether the consumers who relied so heavily on Target throughout the pandemic will stick around for the long-term.”Target expects that they will, adding that second-quarter comparable sales should increase at a mid-to-high single digit pace, while operating margins in the period will also be “well above” the year-ago figure of 7.2%.E-CommerceThe company also reported more growth in the use of services like curbside and in-store pickup for online orders, with “same-day services” surging more than 90%. This is proof the habits that Americans picked up during the long pandemic -- more e-commerce and new services like curbside pickup -- are getting more deeply rooted in shoppers’ preferences.While e-commerce has trimmed profitability for many retailers, Target has managed to shave the costs associated with fulfilling online orders by using its stores as mini-warehouses and focusing on store pickup. More efficient same-day delivery routes using software from Deliv, which Target acquired last year, have also helped. On the company’s call with analysts, Cornell said Target hasn’t had issues finding staff -- a departure from many retailers that have reported trouble keeping workers on board. He attributed that to the company’s $15 per hour starting wage, while Chief Operating Officer John Mulligan said Target has invested in training and employee turnover is “down significantly” from last year. (Updates to include share trading and details from conference call.)More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. Business Bloomberg 210519 07h36m U.S. Tech Stocks Extend Slide Amid Crypto Rout: Markets Wrap (Bloomberg) -- U.S. technology stocks extended their slide on Wednesday as Bitcoin’s plunge sent cryptocurrency-linked shares tumbling and concern mounted about faster inflation and Covid-19 flareups in some nations.The Nasdaq 100 Index fell for a third day, leading the major benchmarks lower. Crypto-exposed shares including Coinbase Global Inc., Marathon Digital Holdings Inc. and Riot Blockchain Inc. each tumbled more than 10% after Bitcoin sank to the lowest since January. Tesla Inc. slipped after data showing a slowdown in China sales. Target Corp. climbed after predicting a more profitable year as quarterly sales soared. The Stoxx Europe 600 Index slumped the most in a week, with miners and travel shares down the most. Asian shares also slid.Bitcoin plunged to about $30,000, erasing all the gains it had notched after Tesla said Feb. 8 that it would use corporate cash to buy the digital asset and accept it as payment. Other cryptocurrencies followed, in part after the People’s Bank of China reiterated that digital tokens can’t be used as a form of payment.“Tactically, it seems a bit overdone as fundamentals have changed modestly,” Mike Bailey, director of research at FBB Capital Partners, said of the crypto rout. “However, this type of volatility is a reminder that the asset class is pure. This type of move could flush out some of the casual crypto investors, since we haven’t seen this type of downward volatility in some time.”Stocks have lost steam in recent sessions, with pricier sectors such as technology tumbling on worries about inflation and a Covid-19 resurgence in some countries. While policymakers have signaled they intend to maintain an accommodative stance for some time to come, traders will parse minutes from the Federal Reserve’s last meeting due later Wednesday for clues about the outlook.“Debate on whether inflation rebound is transitory or persistent might not end soon and could keep markets unnerved during summer,” Barclays Plc strategists led by Emmanuel Cau said in a note. “The risk of another taper tantrum is low at this stage,” while economic and earnings growth should favor equities over bonds, they added.Elsewhere, oil dropped on rising U.S. stockpiles and the possibility of more supply from Iran.Here are some key events this week:The Fed publishes minutes from its April meeting Wednesday, which may provide clues to officials’ views on the recovery and how they define “transitory” when it comes to inflationEIA crude oil inventory report WednesdaySt. Louis Fed President James Bullard and Atlanta Fed President Raphael Bostic to speak at separate events WednesdayIMF Managing Director Kristalina Georgieva and ECB President Christine Lagarde speak at the Vienna Economic Dialogue ThursdayEuro-area finance ministers and central bank chiefs hold an informal meeting. A larger group of EU finance ministers and central bank chiefs will meet May 22These are some of the main moves in markets:StocksThe S&P 500 fell 1.2% as of 9:34 a.m. New York timeThe Nasdaq 100 fell 1.4%The Dow Jones Industrial Average fell 1%The Stoxx Europe 600 fell 1.8%The MSCI World index fell 1.2%CurrenciesThe Bloomberg Dollar Spot Index rose 0.2%The euro was little changed at $1.2217The British pound fell 0.2% to $1.4154The Japanese yen was little changed at 108.91 per dollarBondsThe yield on 10-year Treasuries was little changed at 1.65%Germany’s 10-year yield was little changed at -0.11%Britain’s 10-year yield was little changed at 0.86%CommoditiesWest Texas Intermediate crude fell 3% to $64 a barrelGold futures rose 0.1% to $1,870 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. Business Reuters 210519 07h35m Airbus considers scrapping sale of small-parts business Airbus on Wednesday softened plans to sell off the production of mass-produced small parts and said it would consider a union-backed proposal to keep the activity in-house. Airbus last month cancelled plans to sell two larger aerostructures subsidiaries, and announced a new proposal to hive off the production of small mass-produced parts into a new company with a view to selling that instead. But after meeting unions on Wednesday, the European planemaker said it would "analyse a scenario in which this separated scope would remain stand-alone within Airbus" while adding it preferred its original option. Business Yahoo Finance 210519 07h33m Stock market news live updates: Stocks point to third straight day of losses as technology stocks slide Stocks paced toward a third straight day of declines, with technology shares leading the way lower as concerns over inflation persisted. Politics Yahoo Finance 210519 07h31m Kevin Brady calls Biden tax hikes 'a major economic blunder,' blames labor shortage on benefits Republican Congressman Kevin Brady, the ranking member on the House Ways and Means Committee, says the Biden administration will threaten the US economic recovery if it raises taxes. Business Yahoo Finance 210519 07h23m Gundlach: If we go to another level of free money, I think the wealth inequality will get worse '[The] stimulus hasn't helped our productive base, it's helped China, and it's helped certain very rich people in Silicon Valley,' says billionaire bond king Jeffery Gundlach. World Bloomberg 210519 07h18m Europe to Reopen for Travel, Easing Rules for American Tourists (Bloomberg) -- European Union governments agreed to allow quarantine-free travel for vaccinated tourists and visitors from countries deemed safe, paving the way for the resumption of hassle-free trans-Atlantic flights.Ambassadors from the EU’s 27 member states backed a proposal to waive quarantine for those with coronavirus inoculations approved by its drug regulator, including shots from Pfizer Inc., Moderna Inc. and Johnson & Johnson. The approval could be finalized this week and implemented soon after.Unvaccinated travelers can also avoid quarantine if they come from countries that have controlled the Covid-19 outbreak, meaning a 14-day new-case rate of less than 75 per 100,000, according to two officials familiar with the decision.This would likely land the U.S. on a “white list” which is due to be adopted later this week. But with so many Americans already vaccinated, the designation may be less important to the travel industry than whether American officials reciprocate and loosen rules for European visitors.The EU move highlights the importance of trans-Atlantic travel to getting its economies restarted after the decimation of the global coronavirus crisis -- especially in tourist dependent nations such as Greece, Spain and Italy. Opening their doors will give EU countries access to a powerful U.S. travel rebound, while validating a gamble on vaccination that the American and European officials have emphasized over the reliance on strict lockdowns prevalent in Asia.Read: U.S. Vaccine Surge Lifts Region’s Air-Travel Comeback Past AsiaFor airlines, it partially unlocks the most lucrative niche in the global industry, catering to well-heeled travelers who often pay premium fares.Gaining MomentumWhile Europe’s vaccine effort has lagged behind the U.S. and the U.K., it’s starting to hit its stride, giving officials confidence even as they wrestle with how to prevent a highly transmissible Indian variant from derailing their recoveries.The new rules will replace a blanket ban on non-essential travel from most countries outside the EU. Some member states, such as Greece, already permit tourists to visit without quarantine requirements if they have been inoculated.The new rules include a so-called emergency brake, which would allow member states to restore travel bans on countries where risky new variants emerge or contagion rates spike. The European Commission -- the EU’s executive arm -- has already demanded that such brake is applied for all travel from India.Travel Within EUMeanwhile, negotiations between EU governments and the European Parliament continue on the introduction of mutually recognizable certificates that will allow quarantine-free travel within the bloc as of next month.Travelers will must be vaccinated, recovered or have a recent negative test for Covid-19.The aim is to reach an agreement between negotiators on Thursday.(Updates with drug companies, airlines, adds inter-EU travel plan 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. Howell date : 210519 07h15m23s Business Bloomberg 210519 07h02m Oil Slides Toward $64 as Inflation, Iran Talks Weigh on Market (Bloomberg) -- Oil fell for a second day amid a spate of weakness in wider markets and as traders tracked talks between world powers on a revival of the Iran nuclear deal.West Texas Intermediate for June delivery tumbled almost 2%, while global benchmark Brent -- which topped $70 a barrel briefly on Tuesday -- also declined. Stock markets fell on inflation fears, while the dollar climbed, crimping prices. U.S. crude stockpiles expanded last week, according to the American Petroleum Institute.Attention is steadily shifting back to the Iran nuclear deal, with the nation’s deputy foreign minister telling state TV that good progress had been made in the talks. Some key issues still have to be addressed though, he said, as traders eye the potential for a recovery in the nation’s exports. It comes as the OPEC+ alliance loosens output curbs.While crude’s fortunes have swung with those of wider risky assets in recent days, there are reasons for optimism. Demand is edging up in Europe, brightening the prospects for the region’s refiners. At the same time, Asian buying has picked up in the physical market -- where real barrels are bought and sold -- even as the pandemic rages in parts of the continent such as key importer India.Crude is pressured by “increased risk aversion in view of the weakness on the stock markets,” said Eugen Weinberg, head of commodities research at Commerzbank AG. Brent has also found “strong technical resistance” at $70 a barrel, he said.The global market should be able to absorb both the additional supplies from Iran and from the Organization of Petroleum Exporting Countries and its allies, ING Group said Wednesday in a note, assuming supply from the Persian Gulf nation hits about 3 million barrels a day by the fourth quarter.Chinese refiner Rongsheng Petrochemical Co. purchased 12 million barrels of Middle Eastern oil in recent days, the biggest volume in about seven months. That’s boosted spot premiums for grades favored by Chinese and Japanese refiners to multimonth highs.Some traders in options markets are also more bullish. The equivalent of 10 million barrels of Brent June 2022 $125 calls traded on Tuesday. Those contracts would profit a buyer from a strong rally in headline prices in the next year.More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. Business Bloomberg 210519 06h55m Gold Retreats From Three-Month High Ahead of Fed Minutes (Bloomberg) -- Gold slipped from its highest level in more than three months as the dollar strengthened ahead of the Federal Reserve releasing minutes from its April meeting.European stocks and U.S. equity futures dropped Wednesday amid a broad deterioration in risk appetite. That pushed the dollar higher after four straight days of declines, weighing on bullion. Gold also came under pressure from rising Treasury yields amid growing concerns about inflation.Fed minutes due later Wednesday may offer more insight into how policy makers view growing price pressures, and any hints of a timeline for tapering stimulus. In Bank of America Corp.’s latest fund manager survey, inflation topped the list of the biggest tail risks, followed by a bond market taper tantrum and asset bubbles, while Covid-19 was in fourth place.Gold was recently buoyed by falling real bond yields and a weakening dollar, with inflation expectations in the U.S. close to the highest in seven years. That’s revived investor interest in gold, with inflows into bullion-backed exchange-traded funds resuming and hedge funds on the Comex boosting their exposure.“Gold prices are steadying as Treasury yields may have found a short-term bottom,” said Edward Moya, senior market analyst at Oanda Corp. The outlook for bullion was still bullish, given the monetary policy stances across the world’s two largest economies, he said.Spot gold declined 0.3% to $1,864.83 an ounce by 1:45 p.m. in London. Prices climbed to as much as $1,875.10 on Tuesday, the highest since January. Silver, platinum and palladium fell. The Bloomberg Dollar Spot Index rose 0.3% after declining 0.3% on Tuesday.More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. Business Bloomberg 210519 06h52m Russian Metals Giant Plans Split to Focus on Green Aluminum (Bloomberg) -- Russian metals giant United Co. Rusal International PJSC plans to split off its higher-carbon assets, leaving a business focused on the fast-growing green aluminum market.Rusal, along with other producers such as Alcoa Inc. and Rio Tinto Group, is driving the development of so-called “green aluminum,” with automakers and other consumers charged a premium for metal with a smaller carbon footprint. Under Rusal’s plan, its management has proposed changing the name of the company to AL+ as it seeks to become a key player in that potentially lucrative market.“Rusal would focus on reinforcing its position as a leading producer of low-carbon aluminum and the new company would concentrate on the development of the domestic market and its growth potential,” the company said Wednesday in a statement.READ: Russian Metals Giant Ups Ante in Race for Greenest AluminumAL+ will include the newest Khakas and Boguchansky smelters as well the Taishet project and international alumina and mining facilities. The Russian plants work on hydro-power. The new company will house assets, including the Bratsk and Irkutsk aluminum smelters, as well the Achinsk alumina refinery and Russian mining assets.Last month, Rusal’s parent En+ Group International PJSC said the company has produced aluminum with the lowest carbon footprint as the race for cleaner sources of the metal intensifies.En+’s board of directors suggested that in the interests of Rusal’s shareholders it would be better for the higher-carbon business to be listed on the Moscow Exchange. Its shares should be allocated to current Rusal owners on a pro-rata basis, it said. Still, no final decision has been taken and Rusal will study all potential options for the deal. The split would also require regulatory approval.Rusal’s almost 28% stake in MMC Norilsk Nickel PJSC will remain in AL+ as it is party to the Russian miner’s shareholder accord. Nornickel dividends are important for the company’s investment program, Rusal said.Rusal shares declined 4.4% as of 3:47 p.m. in Moscow trading.(Updates with asset split in fourth 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. World Reuters 210519 06h46m Merkel bemoans lack of EU expertise in chips, batteries German Chancellor Angela Merkel expressed concern on Wednesday that Europe cannot make the semiconductor chips and batteries it needs to compete for the production of cars as well as the development of smart appliances. Merkel told a summit on the future of innovation in Germany that Europe risked falling behind in areas like quantum computing, chips and batteries, essential for the future of the car industry as it shifts to make more electric vehicles. If Europe loses the ability to make chips that are used in internet-connected devices then it makes itself very dependent, particularly on Asia, Merkel noted. Business Reuters 210519 06h44m Europe regulator sees first flying taxis in 2024 or 2025 Europe could see the first flying taxis enter service as early as 2024, the region's top aviation regulator said on Wednesday. More than half a dozen European firms have announced developments of Urban Air Mobility vehicles for passenger use or for unmanned cargo sorties such as delivering medical supplies. "I believe that commercial use of (air) taxis can start to take place in 2024 or 2025," Patrick Ky, executive director of the European Union Aviation Safety Agency (EASA) said. Business Bloomberg 210519 07h10m Canadian Consumer Prices Climb at Fastest Pace in a Decade (Bloomberg) -- Consumer prices in Canada climbed in April at the fastest rate in a decade, outpacing estimates and potentially fueling concerns that the country, much of which is still in lockdown, is entering a period of persistent inflation.Annual inflation accelerated to 3.4% in April, compared with 2.2% in March, Statistics Canada reported Wednesday in Ottawa. That exceeded economist predictions of a 3.2% annual pace. On a monthly basis, inflation rose 0.5% versus the 0.2% economists were expecting.The annual reading -- the highest since May 2011 -- may raise worries that price pressures could be stronger than predicted by the Bank of Canada, which has been cautioning against over-reacting to an inflation spike it expects will be only transitory. If inflation proves more durable, however, that could force the central bank to bring forward interest rate increases that investors aren’t anticipating until later next year.Core inflation -- often seen as a better measure of underlying price pressures -- rose to 2.1% from 1.9% in March. That’s the highest reading since 2012.Higher gasoline prices were the biggest upward contributer to annual inflation. They were up 62.5% in April compared with the same time last year, when prices plunged to an 11-year low in the early weeks of the pandemic, the report said. On a monthly basis, shelter prices were the biggest upward contributer due to higher building costs and strong demand for single family homes.The annual consumer price index reading is distorted because the year-ago period used as comparison coincided with broad demand and price declines at the beginning of the pandemic, a phenomenon known as the base effect.A similar phenomenon also drove inflation higher in the U.S. last month to an annual 4.2% pace. Unlike in the U.S., inflation in Canada may be rising at a slower pace because much of the country was still in some form of a Covid-related shutdown last month, stunting demand for goods and services. Recent gains in the Canadian dollar also may have dampened inflation pressures.“Base effects and higher commodity prices have done most of the damage, similar to what was seen in the U.S. CPI release last week, although that also had a boost from the US economic reopening,” Simon Harvey, a senior foreign exchange analyst at Monex Canada, said by email.Canada’s dollar fell after the report, trading 0.3% lower at C$1.2101 per U.S. dollar at 9:01 a.m. in Toronto trading. Yields on Canadian government five-year bonds were little changed at 0.95%.Bank of Canada Governor Tiff Macklem had predicted that inflation would rise to about 3% because of these base effects, but he also said he believes that underlying price pressures remain depressed because of continued slack in the economy. In its latest forecasts released last month, the central bank forecast inflation to average 2.9% in the second quarter before returning near its 2% target by the end of the year.“BoC members have already stated that they’d look through the short-term overshoot in inflation, meaning there is a high bar for CPI to clear before markets start to speculate on changing expectations of normalization,” Harvey said.(Updates with economist quotes, details throughout)More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. Howell date : 210518 19h19m02s Business Bloomberg 210518 19h00m Bitcoin’s Obstacles Mount Amid China Cryptocurrency Warning (Bloomberg) -- Bitcoin and other major cryptocurrencies slumped after the People’s Bank of China reiterated that digital tokens can’t be used as a form of payment.The largest token fell as much as 2.3% to $42,309 in early Asian trading Wednesday, continuing a weeklong slide sparked by Elon Musk’s back-and-forth comments on Tesla Inc.’s holdings of the coin. Ether, Dogecoin and last week’s sensation, Internet Computer, also retreated.“This is the latest chapter of China tightening the noose around crypto,” said Antoni Trenchev, managing partner and co-founder of Nexo in London, a crypto lender.Virtual currencies should not and cannot be used in the market because they’re not real currencies, according to a notice posted on the PBOC’s official WeChat account. Financial and payments institutions are not allowed to price products or services with virtual currency, the notice said.“They just want caution,” said Bobby Lee, founder and chief executive officer of crypto storage provider Ballet. “They feel the market is over-hyped, there’s speculative trading, they’re looking out for the best interests of the people.”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 and major players have since fled abroad.Read more: Bitcoin Chartists See Rout Worsening With $40,000 in FocusChina has recently taken steps to issue its own digital yuan, seeking to replace cash and maintain control over a payments landscape that has become increasingly dominated by technology companies not regulated like banks.“It’s no surprise to me, as Chinese capital controls can be challenged by cryptocurrency purchases in the country and transfers out of the country,” said Adam Reynolds, CEO for APAC at Saxo Markets. “So avoiding use of them in the country is essential to maintaining capital controls. The only tolerable digital currency to a government with strong capital controls is their own CBDC.”Many chartists and technical analysts are looking at Bitcoin’s 14-day Relative Strength Index (RSI), which entered oversold levels Tuesday. In addition, an acceleration in its selloff could mean the coin approaches its next support around $40,000. A fall to that level would mark the first time since September that Bitcoin would test its average price over the past 200 days. And breaching it could mean it drops to $30,000, where it’s previously found support.For Stephane Ouellette, chief executive and co-founder of FRNT Financial, the moves have more to do with Musk’s recent tweets about Bitcoin.“It’s just a bit of a mess. TSLA’s entrance into the space saw some of the most aggressive BTC buying I’ve personally ever seen -- and it has to unwind,” he said. The EV-maker’s retraction that it will accept Bitcoin as payment “was the catalyst that accelerated the spread consolidation. Then over the weekend, little comments here and there have continued to confuse.”Meanwhile, the latest Bank of America fund manager survey showed that “Long Bitcoin” is the most crowded trade in the world right now. The poll captures 194 fund managers with $592 billion worth of AUM overall.“The fact that the BofA manager survey shows that the ‘long Bitcoin’ trade is the most crowded one on the Street right now isn’t helping either,” said Matt Maley, chief market strategist for Miller Tabak + Co. “When an asset becomes the most crowded trade in the BofA survey, it has frequently signaled a near-term pullback in the past. When you combine this with the news out of China, it’s not a surprise that Bitcoin is seeing some more weakness.”(Updates prices from the 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. World Bloomberg 210518 18h52m Thailand Said to Plan $22 Billion Borrowing for Covid Relief (Bloomberg) -- Thailand plans to borrow an additional 700 billion baht ($22.3 billion) to fund measures to counter the worst wave of Covid-19 outbreak to hit Southeast Asia’s second-largest economy, people familiar with the matter said.A meeting of the cabinet chaired by Prime Minister Prayuth Chan-Ocha on Tuesday approved the new borrowing plan from the finance ministry, the people said, declining to be identified before a public announcement.The government proposes to spend 400 billion baht of the new borrowing to help various sections of the society affected by the new outbreak, while 270 billion baht will be used to revive the economy, the people said. About 30 billion baht will be set aside to finance medical supplies and vaccines to contain the latest outbreak, they said.The fresh borrowing can be completed before Sept. 30 next year, and is on top of an ongoing 1-trillion baht debt plan authorized by the cabinet last year to fund pandemic relief measures, they said.Thailand’s public debt-to-gross domestic product ratio may rise to 58.6% by September with the additional borrowing, but would still be below the nation’s 60% debt ceiling, the people said. The government will need to issue an emergency law that needs to be endorsed by the king before the public debt management office can begin raising fresh debt, they said.Kulaya Tantitemit, a spokesperson for the Finance Ministry and head of its Fiscal Policy Office, declined to comment. Anucha Burapachaisri, a government spokesman also declined to comment.Weak OutlookThailand, which is grappling with the deadliest Covid wave to hit the nation so far, slashed its growth outlook for this year earlier this week, citing the delay in reopening borders to foreign tourists and slow vaccination. The economy may expand between 1.5% and 2.5% this year, less than the 2.5%-3.5% forecast in February, the National Economic and Social Development Council said Monday. The country’s budget deficit soared almost 17% in the first half of the fiscal year that began in October as revenue tumbled, prompting the government to almost triple borrowing to meet the shortfall. The cabinet this month gave in-principle approval for a $7.2 billion assistance package that included short-term financial relief for those affected by the virus, as well as measures to stimulate consumption once infections abate.Thailand has imposed curbs on businesses and travel to contain the resurgence in the pandemic that seen the nation’s total caseload almost quadruple since the start of April. The country has vaccinated only about 2% of its population, trailing the pace of countries like Indonesia, Malaysia and Singapore. (Updates with latest GDP forecast in seventh 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. World Reuters 210518 18h42m Canada says reiterated to U.S. that it plans a digital services tax - minister Canada reiterated to the United States that it plans to go ahead with a digital services tax if need be, a move that would hit giants like Alphabet Inc's Google and Facebook Inc, Trade Minister Mary Ng said on Tuesday. Ng told reporters she made the remarks in bilateral talks with U.S. Trade Representative Katherine Tai, who on Monday had expressed concern about the plan. Canada said last November it intended to impose a tax on corporations providing digital services from 2022. Business Bloomberg 210518 18h38m Chip Crisis Gets Even Worse as Wait Times Reach Record 17 Weeks (Bloomberg) -- Shortages in the semiconductor industry, which have already slammed automakers and consumer electronics companies, are getting even worse, complicating the global economy’s recovery from the coronavirus pandemic.Chip lead times, the gap between ordering a chip and taking delivery, increased to 17 weeks in April, indicating users are getting more desperate to secure supply, according to research by Susquehanna Financial Group. That is the longest wait since the firm began tracking the data in 2017.“All major product categories up considerably,” Susquehanna analyst Chris Rolland wrote in a note Tuesday, citing power management and analog chip lead times among others. “These were some of the largest increases since we started tracking the data.”Chip shortages are rippling through industry after industry, preventing companies from shipping products from cars to game consoles and refrigerators. Automakers are now expected to lose out on $110 billion in sales this year, as Ford Motor Co., General Motors Co. and others have to idle factories for lack of essential components.The industry and its customers watch lead times as an indicator of the balance between supply and demand. A lengthening of the gap indicates that buyers of semiconductors are more willing to commit to future supply to avoid a recurrence of shortfalls. Analysts track these numbers as a harbinger of hoarding that can lead to the accumulation of too much inventory and sudden declines in orders.“Elevated lead times often compel ‘bad behavior’ at customers, including inventory accumulation, safety stock building and double ordering,” Rolland wrote. “These trends may have spurred a semiconductor industry in the early stages of over-shipment above true customer demand.”The situation has been complicated by a resurgence of coronavirus cases in Taiwan, a key location for chip manufacturing. The country has closed schools, curbed social gatherings, and shut many adult entertainment venues, museums and public facilities. While businesses and factories are operating, the government may have to consider broader restrictions.The country is home to Taiwan Semiconductor Manufacturing Co., which is the world’s most advanced chipmaker and counts Apple Inc. and Qualcomm Inc. among its many customers. Local manufacturers also produce less glamorous -- but equally critical -- chips, such as display driver ICs that have been a particularly painful bottleneck for global production.The current level of 17 weeks climbed from the 16-week level Rolland had previously said was the top of the “danger zone” and marks a fourth consecutive month of “sizable” expansion, he wrote.Lead times for some products, such as power management chips, expanded by as much as four weeks in April from the prior month. Industrial microcontrollers order lead times extended by three weeks, some of the steepest increases Rolland has seen since he began tracking the numbers in 2017, he wrote.More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. World Bloomberg 210518 18h34m U.K.’s Johnson Pushes to Get Australia Trade Deal Completed (Bloomberg) -- U.K. Prime Minister Boris Johnson is pushing to get a trade deal with Australia over the line, amid warnings from farmers that cheaper imports could put them out of business.Johnson is preparing to offer Australia tariff-free access to U.K. food markets as talks continue within the government over the deal, The Times newspaper reported Wednesday.That is despite concerns from Britain’s National Farmers’ Union that many farms would face ruin if they have to compete with zero-tariff imports of beef and lamb. Johnson’s office declined to comment on the report, saying negotiations were ongoing.Britain and Australia agreed the bulk of a free-trade agreement in April and have signaled they want to conclude the pact by the G-7 summit in June.Any agreement will “include protection for the agriculture industry and won’t undercut U.K. farmers,” Johnson’s spokesman Max Blain told reporters Tuesday.Read More: U.K., Australia Seal Most of Trade Deal in Boost for Johnson (1)National Farmers’ Union President Minette Batters said in a statement that the government “must recognize that opening up zero tariff trade on all imports of products such as beef and lamb means British farming, working to its current high standards, will struggle to compete.”“Will it watch family farms go out of business when they are unable to compete?” she added.Environment Secretary George Eustice told Sky News there was a “balance to be struck between your commercial interests and your desire to open up new markets.”Post-Brexit TargetA trade deal with Australia is one of the government’s key post-Brexit targets, alongside ongoing negotiations with the U.S. and New Zealand. A deal between the U.K. and Australia is expected to boost Britain’s GDP by 0.02% over 15 years, according to a British government assessment.Australian Trade Minister Dan Tehan on Wednesday said the nations were making “good progress” in their FTA negotiations.“We are now meeting every week in a sprint to have an in-principle agreement by the end of June,” Tehan said in an emailed statement sent in response to a request for comment. He declined to comment on the details of the negotiations.Eustice said his department is considering ways to protect sensitive sectors during the negotiations, such as having tariff-rate quotas on certain goods. International Trade Secretary Liz Truss is said to favor a zero-tariff, zero-quota deal similar to Britain’s accord with the EU, according to a report in the Financial Times.The Department for International Trade said in a statement that a deal would be a step toward joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, or CPTPP, an 11-country pact including Singapore, Malaysia and Japan, which would “allow U.K. farmers even greater access to growing consumer markets in Asia.”Separately, the U.K. government said it will soon start talks to improve upon the roll-over post-Brexit trade deals it signed with Canada and Mexico.(Updates with Australian trade minister’s comments in 10th, 11th paragraphs)More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. Business Bloomberg 210518 18h31m Asia Stocks Track U.S. Lower on Inflation Concerns: Markets Wrap (Bloomberg) -- Asian stocks tracked U.S. declines Wednesday as concern about faster inflation shadows the economic recovery from the pandemic. A dollar gauge was near the lowest level this year.Japanese and Australian shares slid after key U.S. equity benchmarks closed lower and large technology stocks like Amazon.com Inc. and Microsoft Corp. erased gains. AT&T Inc. plunged after the company said it plans to spin off its media operations. Contracts on the S&P 500 and Nasdaq 100 were in the red. A slide in crude on the possibility of more supply from Iran hurt energy stocks overnight. Treasury yields were steady. Bitcoin and other cryptocurrencies held a retreat after China warned digital tokens can’t be used as a form of payment. Markets are closed Wednesday in Hong Kong and South Korea for holidays.Stocks have been volatile after touching a record in early May, whipsawed by concerns about accelerating inflation amid elevated commodity prices, as well as a Covid-19 resurgence in some countries. Federal Reserve officials have repeatedly indicated that they see recent price pressures as transitory and intend to keep policy accommodative for some time to come. Traders are awaiting the latest Fed minutes for the clues about the outlook.“The market has been trying to process a very unusual economic environment and a confluence of factors that it has not faced for a long time,” said David Donabedian, chief investment officer of CIBC Private Wealth Management. “I personally would say that the stock market has absorbed it all extremely well because there’s still a high conviction view on earnings being strong.”In Bank of America Corp.’s latest fund manager survey, inflation topped the list of the biggest tail risks, followed by a bond market taper tantrum and asset bubbles. Covid-19 was in fourth place.Here are some key events this week:The Fed publishes minutes from its April meeting Wednesday, which may provide clues to officials’ views on the recovery and how they define “transitory” when it comes to inflationEIA crude oil inventory report WednesdaySt. Louis Fed President James Bullard and Atlanta Fed President Raphael Bostic to speak at separate events WednesdayIMF Managing Director Kristalina Georgieva and ECB President Christine Lagarde speak at the Vienna Economic Dialogue ThursdayEuro-area finance ministers and central bank chiefs hold an informal meeting. A larger group of EU finance ministers and central bank chiefs will meet May 22These are some of the main moves in markets:StocksS&P 500 futures dipped 0.2% as of 9:23 a.m. in Tokyo. The S&P 500 fell 0.9%Nasdaq 100 futures shed 0.2%. The Nasdaq 100 fell 0.7%Japan’s Topix index retreated 0.9%Australia’s S&P/ASX 200 index fell 1.6%CurrenciesThe yen was at 108.95 per dollarThe offshore yuan traded at 6.4249 per dollarThe Bloomberg Dollar Spot Index was steady after falling 0.3%The euro was at $1.2225BondsThe yield on 10-year Treasuries was steady at 1.64%Australia’s 10-year bond yield held at 1.78%CommoditiesWest Texas Intermediate crude fell 0.7% to $65.01 a barrelGold was at $1,868.60 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. Business Bloomberg 210518 18h30m China Huarong’s Journey From Safe Bet to Bad News: A Timeline (Bloomberg) -- It was a turbulent April for China Huarong Asset Management Co.’s dollar-bond holders.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 now trades 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 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 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. Howell date : 210518 18h18m26s Business Bloomberg 210518 17h28m Asia Stocks to Track U.S. Lower on Inflation Fears: Markets Wrap (Bloomberg) -- Asian stocks on Wednesday are set to track U.S. declines as concern about faster inflation shadows the economic recovery from the pandemic. A dollar gauge was near the lowest level this year.Futures slipped in Japan and Australia after key U.S. equity benchmarks closed lower and large technology stocks like Amazon.com Inc. and Microsoft Corp. erased gains. U.S. futures dipped. A slide in crude on the possibility of more supply from Iran hurt energy stocks. Treasury yields dipped. Markets are closed Wednesday in Hong Kong and South Korea for holidays.Stocks have been volatile after touching a record in early May. Investors have been whipsawed by concerns about accelerating inflation amid elevated commodity prices, as well as a Covid-19 resurgence in countries including India. Traders are awaiting the latest Federal Reserve minutes for clues on how policy makers view price pressures, and any hints of a timeline for tapering stimulus.In Bank of America Corp.’s latest fund manager survey, inflation topped the list of the biggest tail risks, followed by a bond market taper tantrum and asset bubbles. Covid-19 was in fourth place.“The market has been trying to process a very unusual economic environment and a confluence of factors that it has not faced for a long time,” said David Donabedian, chief investment officer of CIBC Private Wealth Management. “I personally would say that the stock market has absorbed it all extremely well because there’s still a high conviction view on earnings being strong.”Bitcoin fell to the lowest since February after the People’s Bank of China reiterated that digital tokens cannot be used as a form of payment. AT&T Inc. plunged the most in the S&P 500 after the company said it plans to spin off its media operations.Here are some key events this week:The Fed publishes minutes from its April meeting Wednesday, which may provide clues to officials’ views on the recovery and how they define “transitory” when it comes to inflationEIA crude oil inventory report WednesdaySt. Louis Fed President James Bullard and Atlanta Fed President Raphael Bostic to speak at separate events WednesdayIMF Managing Director Kristalina Georgieva and ECB President Christine Lagarde speak at the Vienna Economic Dialogue ThursdayEuro-area finance ministers and central bank chiefs hold an informal meeting. A larger group of EU finance ministers and central bank chiefs will meet May 22These are some of the main moves in markets:StocksS&P 500 futures dipped 0.1% as of 8:02 a.m. in Tokyo. The S&P 500 fell 0.9%Nasdaq 100 futures were little changed. The Nasdaq 100 fell 0.7%Nikkei 225 futures fell 1.2%Australia’s S&P/ASX 200 Index futures fell 1.1%CurrenciesThe yen was at 108.92 per dollarThe offshore yuan traded at 6.4217 per dollarThe Bloomberg Dollar Spot Index was steady after falling 0.3%The euro was at $1.2222BondsThe yield on 10-year Treasuries fell one basis point to 1.64%Australia’s 10-year bond yield held at 1.79%CommoditiesWest Texas Intermediate crude fell 1.2% to $65.49 a barrelGold future were at $1,869.21 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. Business Business Politics Business Business Politics World Howell date : 210518 17h17m49s Politics Bloomberg 210518 17h00m Four Hedge Fund Titans Each Give $500,000 to PAC for Adams (Bloomberg) -- Four big hedge fund managers contributed a total of $2 million to a political action committee supporting Brooklyn Borough President Eric Adams, who is leading in some polls for the Democratic primary for New York City mayor.Billionaires Ken Griffin, Dan Loeb, Stanley Druckenmiller and Paul Tudor Jones donated to Strong Leadership NYC Inc., which spent about $1.2 million on a television ad for Adams, who is running on a tough-on-crime platform. The committee, which can spend unlimited amounts on the race as long as it’s not coordinating with the Adams campaign, was set up by Jenny Sedlis, the executive director of StudentsFirstNY, a group that backs charter schools.Adams, who retired at the rank of captain from the New York Police Department after a 22-year career, initially made his mark as a police reformer. He is campaigning ahead of the June 22 Democratic primary on a violence crackdown, saying he wants to create a controversial plainclothes anti-gun unit similar to an anti-crime unit that was disbanded after it generated a disproportionate share of complaints and instances of excessive force.Read More: NYC Mayoral Hopeful Adams to Restore Controversial Anti-Gun UnitRead More: NYC’s Crime Spike Puts Policing in the Spotlight of Mayor’s RaceGriffin, Loeb, Druckenmiller and Tudor Jones declined to comment through representatives.With about a month left before the June 22 Democratic primary, Super-PACs backed by wealthy individuals, corporations and labor unions are pouring cash into a race that has been described as the city’s most consequential in a generation. New York for Ray, which backs former Citigroup Inc. banker Ray McGuire has raised $6 million for his mayoral bid, according to state Board of Elections records. A group backing former city housing commissioner Shaun Donovan has raised about $7 million, most of it coming from Donovan’s father.Griffin, the founder and chief executive of Citadel and Loeb, founder of Third Point LLC, also gave $500,000 each to an Andrew Yang Super-PAC. Citadel Securities LLC chief executive Peng Zhao also gave $250,000 to the Yang committee and Jeff Yass, co-founder of quant trading firm Susquehanna International Group gave $500,000.Separately, Loeb, his wife Margaret, Griffin and Zhao sent $1.5 million to a campaign seeking to boost voter turnout among Black, Latino and Asian voters. The non-partisan initiative won’t endorse specific candidates.“As the city rebounds from the pandemic, we are proud to support the organizations implementing these important voter empowerment efforts,” Dan Loeb said in a May 11 news release. “For healing to occur and to restore our great city, the voices of those most affected by the inequality in our schools and criminal justice system and hurt by increasing incidents of violence and deficiencies in our health system must be heard.”Griffin, a long-time Republican backer, gave more than $66 million to conservative outside spending groups in the 2020 presidential cycle and Yass gave about $30 million, according to the Center for Responsive Politics.A poll released Monday by Emerson College and Pix11 had Adams leading the race with 18%, ranking him first among 631 people polled from May 13-15. Yang and city comptroller Scott Stringer were tied at 15%.(Adds voter participation initiative in seventh 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. Business Reuters 210518 16h51m CORRECTED-OFFICIAL-Libya sovereign fund makes financial statements push The Libyan Investment Authority will this month begin preparations to start reporting consolidated financial statements, it told Reuters, after announcing it had $68 billion in largely frozen assets following its first internal evaluation process in years. Africa's largest sovereign wealth fund is working to regain the trust of the international community after the United Nations froze most of its assets during the 2011 rising that toppled Muammar Gaddafi. It said this month its first asset valuation since 2012 had revealed assets of $68.35 billion at end-2019 compared to $67 billion in 2012. Business Reuters 210518 16h42m Senate Democrat proposes $52 billion for U.S. chips production, R&D U.S. Senate Democratic Leader Chuck Schumer unveiled revised bipartisan legislation late Tuesday to approve $52 billion to significantly boost U.S. semiconductor chip production and research over five years. The emergency funding proposal will be included in a more than 1,400-page revised bill the Senate is taking up this week, as first reported by Reuters on Friday, to spend $120 billion on basic U.S. and advanced technology research to compete with China. Schumer said the bill includes a "historic $52 billion investment to make sure the United States stays on the cutting edge of chip production." Business Bloomberg 210518 16h30m AT&T Spinoff Starts Marketing $41.5 Billion of Merger Loans (Bloomberg) -- The new entity that will house the merged AT&T Inc. spun-off WarnerMedia division with Discovery Inc.’s reality-TV empire is starting to market a series of loans to help fund the transaction, according to people with knowledge of the matter.The facilities include a $31.5 billion 364-day bridge loan, which is expected to be refinanced with longer-term bonds prior to maturity, and a $10 billion term loan in two tranches, the people said. The debt will replace the $41.5 billion in financing commitments already received from Goldman Sachs Group Inc. and JPMorgan Chase & Co., the largest bridge this year. The loans are being marketed to other banks that will join the transaction.The new company, whose name will be announced this week, has split the term loan into a $3 billion 18-month tranche and a $7 billion three-year portion, said the people, who asked not to be identified discussing a private transaction. The company is also syndicating a $6 billion five-year revolving credit facility, they added.Representatives for JPMorgan, which is leading the bridge loan and term loan portion, and Goldman Sachs declined to comment. Representatives for AT&T didn’t immediately respond to requests for comment.AT&T’s decision to spin off its media business marks a major shift in its strategy after years of working to assemble telecommunications and media assets under one roof. The company will reduce net debt by $43 billion through the transaction, putting it on track to drop behind rival Verizon Communications Inc. in the rankings of the most indebted non-financial companies globally, according to data compiled by Bloomberg.Pricing on the bridge loan consists of a 17.5 basis point ticking fee, a fee of 137.5 basis points over the London interbank offered rate if drawn, and a duration fee of 50, 75, and then 100 basis points every 90 days the loan is outstanding, the people said.The 18-month term loan has an upfront fee of 5.25 basis points and a drawn margin of 125 basis points over Libor, while the three-year tranche has an upfront fee of 10.5 basis points and a drawn margin of 137.5 basis points over Libor.The revolver has a 17.5 basis point commitment fee and a 137.5 basis points over Libor drawn margin.More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. Business World Business World Howell date : 210518 15h27m06s Howell date : 210518 14h26m29s Howell date : 210518 13h55m51s Howell date : 210518 13h25m15s Business Bloomberg 210518 13h16m CNN Dodges Risk of MSNBC Tie-Up as AT&T Opts for Discovery (Bloomberg) -- For months, Wall Street has called on AT&T Inc. to shed its media assets, including CNN, arguing that investors prefer companies with a singular focus.On Monday, AT&T finally relented, announcing that CNN and its corporate siblings will be joining forces with Discovery Inc., home of networks like HGTV, Food Network and TLC.For CNN, the deal could provide a number of strategic advantages -- and avoids the headaches of a potential combination with Comcast Corp.’s MSNBC. David Zaslav, the current head of Discovery who will lead the new combined company, said Discovery’s global business will help “supercharge” CNN’s business outside the U.S.While AT&T has focused largely on wireless service in the U.S. market, Discovery has expanded aggressively overseas. It has a presence in key European markets, which could benefit CNN’s international bureaus. Discovery owns TVN, a broadcast channel in Poland, and has a stake in GB News, a new news channel in Britain run by Andrew Neil, a former executive in Rupert Murdoch’s media empire.“Not only does David offer a hands-on media expertise that AT&T couldn’t offer, but he’s got a global outlook that perfectly matches CNN,” said Jon Klein, the former president of CNN’s U.S. operations.AT&T shares were down 5.8% to $29.55 at 3:09 p.m. Tuesday in New York, with Discovery shares off 0.3% to $33.76.Awkward SituationsThe deal will also free CNN of a corporate parent whose political contributions at times thrust the newsroom into awkward situations. In 2018, for instance, CNN had to cover how AT&T paid President Donald Trump’s personal lawyer Michael Cohen while seeking government approval to buy CNN’s parent company, Time Warner.The deal may also put to rest speculation that CNN is for sale. Before Monday’s announcement, CNN had received interest from potential buyers, according to the Wall Street Journal. But Zaslav shot down the idea Monday, telling CNN “we’re not interested in selling it, and we’re going to invest in it.”In an interview with Bloomberg News, Zaslav cited his experience at NBCUniversal, where he launched the cable news channels CNBC and MSNBC.“I’ve seen the value of those assets,” Zaslav said. “It’s extremely powerful. And in a world where there is so much content, live news and live sports becomes a real palpable currency.”For CNN’s 3,000 employees, the surprising development may provide a measure of relief. Prior to the announcement, some observers believed that Comcast’s NBCUniversal was the most likely merger partner for AT&T’s media assets. Such a pairing would have put CNN under the same roof as its cable-news rivals at Comcast’s MSNBC, the type of forced union that often results in ugly power struggles and painful layoffs.Facing ChallengesRegardless of its owner, CNN still faces challenges. The news network needs to find a way to keep ratings from further eroding during the Biden years. CNN’s audience in the key demographic of 25-to-54-year-olds declined 52% in April from a year earlier, a steeper loss than at MSNBC or Fox Corp.’s Fox News. It doesn’t yet have a streaming destination for cable cord-cutters. And in February, CNN’s leader, Jeff Zucker, who is well-liked internally, said he planned to step down when his contract expires at the end of the year, having successfully led the network through the four tumultuous years of Trump’s presidency.Zaslav, 61, is friends with Zucker, 56. The two play golf together.Zaslav will be sticking around awhile. On Tuesday, Discovery extended his employment contract through 2027. Asked on Monday whether he’d try to persuade Zucker, who has been president of CNN since 2013, to extend his time at the network, Zaslav was vague.“Jeff is super-talented,” he said. “He has to figure out what he wants to do.” Zaslav told CNN he’s “hoping there will be an opportunity for Jeff to stay with us.”Zucker didn’t respond to a request for comment.Zaslav said CNN and Discovery could work together on documentaries and share some of that type of content. CNN has long made docuseries like the travel and food show “Anthony Bourdain: Parts Unknown.” Recently, CNN has generated plenty of buzz with “Stanley Tucci: Searching for Italy,” a travel series in which the actor roams around the country, exploring regional cuisines.Such evergreen, nonfiction programming, at which Discovery excels, can help retain viewers during the inevitable lulls in the news cycle.“There’s a real opportunity with their documentary library,” Zaslav said. “That’s our sweet spot.”(Updates with Zaslav contract renewal in 14th 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. Business Reuters 210518 13h10m UPDATE 1-JPMorgan tells vaccinated employees no mask required at work JPMorgan Chase & Co told employees on Tuesday that fully vaccinated staff do not have to wear masks at its U.S.-based offices, according to an internal memo seen by Reuters. Employees are asked to enter their vaccination status into an online database organized by the bank. Employees who have not been vaccinated must continue to wear a face covering in all public and common spaces, private offices and meeting rooms, according to the memo. Business Bloomberg 210518 13h04m Tesla Starts to Recover After Breaching Key Technical Level (Bloomberg) -- Tesla Inc. staged a tentative rebound Tuesday after a 14% slump over the past six sessions sent it into oversold territory.Last week’s 12% drop was the worst since February and, together with Monday’s 2.2% decline, brought shares down more than one-third from their Jan. 26 record high.Tesla rose as much as 3.4% Tuesday in New York, erasing its losses from earlier in the session. The stock had fallen below its long-term average price, or the 200-day moving average, on Thursday last week and also Monday.According to the 14-day relative strength index, which tracks the persistence and magnitude of price swings, Tesla’s shares briefly touched the oversold level and bounced back sharply. The stock currently has a score of 36.5 on the index, and a number below 30 is considered oversold.“The overall market has started to rotate back into growth names, which has helped Tesla find at least a short-term bottom for now,” said Jake Wujastyk, chief market analyst at technical analysis firm TrendSpider. The firm’s monthly seasonality tool shows that 80% of the time, Tesla shares close higher in June compared to May, possibly suggesting some bullishness into the beginning of summer, the analyst added.Earlier on Tuesday, news of two crashes in China and Washington State initially sent shares down by as much as 2.3%. And electric vehicle news site Electrek said Tesla has over 10,000 cars in its Fremont factory that have come off the assembly line with a “containment hold,” which means they cannot be delivered to customers.Tesla has languished despite strong first-quarter results as investors turned their focus to increased competition in the EV market from global automakers, as well as semiconductor shortages.The stock was trading up 0.7% at 3:03 p.m. in New York.(Adds analyst comment in fifth paragraph, current stock move in eighth.)More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. Business Bloomberg 210518 12h55m Bitcoin Dips to Lowest Since February Amid China Crypto Warning (Bloomberg) -- Bitcoin and other major cryptocurrencies slumped after the People’s Bank of China reiterated that the digital tokens cannot be used as a form of payment.The largest cryptocurrency fell as much as 5.3% to $42,430 in New York, continuing a week-long slide sparked by Elon Musk’s back-and-forth comments on Tesla Inc.’s holdings of the coin. Bitcoin is now at its lowest level since early February. Ether lost more than 7%, while last week’s sensation, Internet Computer, continued its plunge. Dogecoin also slid.“This is the latest chapter of China tightening the noose around crypto,” said Antoni Trenchev, managing partner and co-founder of Nexo in London, a crypto lender.Virtual currencies should not and cannot be used in the market because they’re not real currencies, according to a notice posted on PBOC’s official WeChat account. Financial and payments institutions are not allowed to price products or services with virtual currency, the note said.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 and major players have since fled abroad.Read more: Bitcoin Chartists See Rout Worsening With $40,000 in FocusChina has recently taken steps to issue its own digital yuan, seeking to replace cash and maintain control over a payments landscape that has become increasingly dominated by technology companies not regulated like banks.“It’s no surprise to me, as Chinese capital controls can be challenged by cryptocurrency purchases in the country and transfers out of the country,” said Adam Reynolds, CEO for APAC at Saxo Markets. “So avoiding use of them in the country is essential to maintaining capital controls. The only tolerable digital currency to a government with strong capital controls is their own CBDC.”Many chartists and technical analysts are looking at Bitcoin’s 14-day Relative Strength Index (RSI), which entered oversold levels Tuesday. In addition, an acceleration in its selloff could mean the coin approaches its next support around $40,000. A fall to that level would mark the first time since September that Bitcoin would test its average price over the past 200 days. And breaching it could mean it drops to $30,000, where it’s previously found support.For Stephane Ouellette, chief executive and co-founder of FRNT Financial, the moves have more to do with Musk’s recent tweets about Bitcoin.“It’s just a bit of a mess. TSLA’s entrance into the space saw some of the most aggressive BTC buying I’ve personally ever seen -- and it has to unwind,” he said. The EV-maker’s retraction that it will accept Bitcoin as payment “was the catalyst that accelerated the spread consolidation. Then over the weekend, little comments here and there have continued to confuse.”Meanwhile, the latest Bank of America fund manager survey showed that “Long Bitcoin” is the most crowded trade in the world right now. The poll captures 194 fund managers with $592 billion worth of AUM overall.“The fact that the BofA manager survey shows that the ‘long Bitcoin’ trade is the most crowded one on the Street right now isn’t helping either,” said Matt Maley, chief market strategist for Miller Tabak + Co. “When an asset becomes the most crowded trade in the BofA survey, it has frequently signaled a near-term pullback in the past. When you combine this with the news out of China, it’s not a surprise that Bitcoin is seeing some more weakness.”(Updates throughout, adds technical analysis, adds Ouellette comments)More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. Howell date : 210518 12h54m38s Business Reuters 210518 12h41m US STOCKS-S&P 500 down slightly as telecom weakness offsets strong retail earnings The S&P 500 declined slightly on Tuesday after major retailers including Walmart and Home Depot posted better-than-expected earnings alongside a sharp decline in telecom stocks and weak housing starts data. AT&T Inc shed 5.76%, the top drag on the benchmark S&P 500, as it extended declines from Monday, when the telecoms firm said it would cut its dividend payout ratio as a result of its $43 billion media asset deal with Discovery Inc. Business Reuters 210518 12h41m Deutsche Bank appoints U.S. general counsel to head anti-financial crime unit Deutsche Bank has appointed Joe Salama, its U.S. general counsel, as global head of anti-financial crime (AFC) and group anti money laundering officer, the bank said in a memo to employees on Tuesday. Its anti-money laundering and financial crime procedures continue to be the subject of scrutiny from regulators. Last month, the German financial regulator BaFin ordered Deutsche Bank to enact further safeguards to prevent money laundering, a blow to the bank's efforts to repair its reputation. Business Bloomberg 210518 12h41m Colonial Pipeline’s Computer Network Temporarily Goes Dark (Bloomberg) -- Colonial Pipeline, the crucial U.S. pipeline that’s been trying to recover from a debilitating criminal hack, restored a vital communications system that failed and temporarily left customers in the dark about fuel shipments.The computer system that allows oil refiners and other clients to reserve space and monitor the status of fuel traveling through the pipeline was back online after an outage earlier Tuesday, Colonial said in an email.Fuel shipments weren’t interrupted but the company sought to calm any concerns the outage might presage another disaster like the shutdown earlier this month that crippled gasoline and diesel deliveries across the U.S. Southeast.Fuel shortages continue to plague some cities and towns as Colonial works to fully restore the pipeline that supplies almost half the East Coast’s fuel and was halted for the better part of a week. More than 40% of filling stations in North Carolina are still dry, while in Virginia the figure was around 25%, according to retail-fuel tracker GasBuddy. The latest server disruptions stemmed from efforts to harden its systems and “were not related to the ransomware or any type of reinfection,” Colonial said.The communications outage meant fuel distributors found it more difficult to funnel shipments to supply-choked locations, said Andy Milton, senior vice president of supply at Mansfield Energy Corp., a closely held firm that handles more than 3 billion gallons of fuel a year.“Without that system, it’s very difficult to divert barrels manually,” Milton said. “Let’s say Charlotte becomes very tight and maybe we can divert barrels from Greensboro to Charlotte to help fill up in the market... If it’s not done quickly, those barrels may go right on past Charlotte and continue on towards Greensboro.”Gasoline futures traded in New York jumped as much as 1% after Bloomberg News reported Colonial’s communication glitch. Those gains later faded as it became clear there’s been no impact on deliveries.Deja VuFor some Colonial customers, Tuesday’s interruptions were uncannily similar to the early hours of what turned into the worst-ever cyberattack for a North American motor-fuel pipeline. On May 7, shippers began receiving notices of Colonial outages and within hours the company announced a total shutdown to combat the hack.The company paid almost $5 million in ransom to hackers but managed to keep it under wraps for five days. In the meantime, gas stations from Tennessee to Florida ran out of gasoline and diesel, stranding motorists and sending retail prices skyward. Major airlines took extraordinary steps like flying fuel cargoes to other cities to forestall shortages at airports.Colonial Hacker Group’s Dark Web SiteWeb SiteWeb SiteWeb Site No Longer Accessible The Colonial system, which transports roughly 2.5 million barrels of fuel daily from the Gulf Coast to the eastern seaboard, resumed service on May 12. The restoration of gasoline and diesel supplies has been hindered by a dearth of trucks and drivers to haul deliveries from distribution hubs to retail outlets.More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. Business Reuters 210518 12h36m Canadian National Railway shareholder urges board to amend Kansas City deal Hohn's TCI Fund Management, which has a 2.93% stake in Canadian National (CN), said the company should not go ahead with its plan to create a voting trust structure for the takeover. CN and Canadian Pacific Railway are seeking to buy U.S. railroad Kansas City Southern to create a North American railway spanning the United States, Mexico and Canada. U.S. Reuters 210518 12h35m UPDATE 1-U.S. lawmakers seeking records on 737 MAX, 787 production issues Two key U.S. lawmakers said on Tuesday they are seeking records from Boeing and the Federal Aviation Administration (FAA) on production issues involving the 737 MAX and 787 Dreamliner. House Transportation Committee Chairman Peter DeFazio and Rick Larsen, who chairs a subcommittee, said they were seeking records after multiple issues recently emerged "regarding the 737 MAX as well as the 787, including electrical problems, the presence of foreign object debris in newly manufactured aircraft, and other issues." The panel conducted an extensive investigation into the 737 MAX after two fatal crashes led to a 20-month grounding that was lifted in November. Business Bloomberg 210518 12h35m U.S. Stocks Erase Gains With Reopenings in Focus: Markets Wrap (Bloomberg) -- U.S. stocks turned lower as technology shares erased earlier gains with investors weighing the prospects of economic reopenings against concern about a pickup in virus cases in parts of Asia. Oil prices dropped amid a report that significant progress has been made to revive the U.S.-Iran nuclear deal.The Nasdaq 100 Index was little changed after megacaps including Amazon.com Inc. and Microsoft Corp. erased earlier gains. The S&P 500 fell for a second day. AT&T Inc. plunged the most in the benchmark gauge after the company said it plans to spin off its media operations. Walmart Inc. rallied the most in six weeks after boosting its profit outlook.Stocks have been volatile after touching a record in early May as investors assessed economic growth prospects against a Covid-19 resurgence in countries including India. Minutes from the latest Federal Reserve meeting, due Wednesday, may offer clues on inflation pressure and hints of a timeline for tapering stimulus. Fed Vice Chair Richard Clarida said Monday that the weak U.S. jobs report showed the economy had not yet reached the threshold to warrant scaling back asset purchases.“What appeals to me is that investors are acting like investors again,” Abby Joseph Cohen, senior investment strategist at Goldman Sachs Group Inc., said in an interview on Bloomberg TV. “There is less emphasis on momentum and there’s more emphasis on relative valuation and which of the companies that have the strongest cash flow growth and are investing that cash flow growth.”Global investor sentiment is “unambiguously bullish,” Bank of America Corp. strategists led by Michael Hartnett said, citing the firm’s latest fund manager survey. Inflation topped the list of the biggest tail risks, followed by a bond market taper tantrum and asset bubbles, while Covid-19 was only in fourth place.West Texas Intermediate crude declined after the BBC Persian news channel, citing Russian diplomat Mikhail Ulyanov, reported that a major announcement may be made on Wednesday regarding talks to broker an agreement between Iran and the U.S. and revive the 2015 nuclear deal. Ulyanov said on Twitter that “unresolved issues still remain and the negotiators need more time and efforts to finalise an agreement on restoration” of the accord.Elsewhere, Bitcoin fell to the lowest since February after the People’s Bank of China reiterated that the digital tokens cannot be used as a form of payment. Coinbase Global Inc. fell after Monday’s drop below the reference price used in its April direct listing.Here are some key events this week:The Fed publishes minutes from its April meeting Wednesday, which may provide clues to officials’ views on the recovery and how they define “transitory” when it comes to inflationEIA crude oil inventory report WednesdaySt. Louis Fed President James Bullard and Atlanta Fed President Raphael Bostic to speak at separate events WednesdayIMF Managing Director Kristalina Georgieva and ECB President Christine Lagarde speak at the Vienna Economic Dialogue ThursdayAustralia unemployment rate ThursdayEuro-area finance ministers and central bank chiefs hold an informal meeting. A larger group of EU finance ministers and central bank chiefs will meet May 22These are some of the main moves in markets:StocksThe S&P 500 fell 0.3% as of 2:33 p.m. New York timeThe Nasdaq 100 was little changedThe Dow Jones Industrial Average fell 0.3%The MSCI World index rose 0.4%CurrenciesThe Bloomberg Dollar Spot Index fell 0.3%The euro rose 0.6% to $1.2228The British pound rose 0.4% to $1.4194The Japanese yen rose 0.3% to 108.88 per dollarBondsThe yield on 10-year Treasuries was little changed at 1.65%Germany’s 10-year yield advanced one basis point to -0.10%Britain’s 10-year yield was little changed at 0.87%CommoditiesWest Texas Intermediate crude fell 1.2% to $66 a barrelGold futures were little changedMore stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. World Bloomberg 210518 12h30m How Mumbai’s City Officials Made It More Covid Ready Than Delhi (Bloomberg) -- At midnight on April 17, as a deadly new wave of the coronavirus overwhelmed India, Mumbai’s Municipal Commissioner Iqbal Singh Chahal learned that six hospitals in his city would run out of oxygen within hours -- putting the lives of 168 patients at risk.Amid the ensuing scramble, the patients were rushed to the temporary hospitals Chahal’s team had set up during the city’s first wave in 2020. He hadn’t dismantled the facilities even when cases dipped. Unlike most Indian hospitals that relied on cylinders, they had been equipped with pipes that supplied oxygen directly to patients’ beds. All 168 survived.That night -- which Chahal describes as the scariest he’s ever had -- offers a look at tactics India’s financial capital used to quell its outbreak faster, and with fewer casualties, than other parts of the country. Mumbai has reported 2,784 deaths since the second wave began on March 1, around a fourth of the 10,595 in capital New Delhi. Even India’s Supreme Court has suggested that aspects of Mumbai’s model could be adopted in other parts of the nation like New Delhi.By contrast, the record number of daily deaths India continues to report, along with the collapse of the health system in parts of the country, have highlighted broad shortfalls in governance and public planning nationally.Chahal attributes the city’s successes partly to a decentralized system his team set up during the first wave, which included neighborhood war rooms to manage cases by locality. He’s also made vast changes to the way the city sourced and used its medical oxygen, creating emergency stocks and tracking systems for tankers. So, even as families around India desperately pleaded for supplies on social media, Mumbai’s patients reported fewer problems.With a population of 16 million spread across glistening skyscrapers, apartment complexes and sprawling slums, Mumbai is the world’s second-most densely packed city, according to data from the United Nations. About 32,000 people are crammed in per square kilometer. That makes lessons from India’s financial capital particularly valuable as fears grow about outbreaks in other crowded places from Bangkok to Kathmandu.“I knew it was a long drawn war; and I knew only systems can win the wars -- individuals can’t,” Chahal said in an interview via Zoom. “Devising systems and making them run on auto pilot is key to the Mumbai model.”As of May 11, Mumbai had almost half the number of active virus cases as capital New Delhi. Delhi Health Minister Satyendar Jain and Principal Secretary of Health Ashish Chandra Verma didn’t reply to calls seeking comment.Still, the risks to Mumbai are far from over. The city has recorded 688,696 cases since the pandemic began, adding 1,544 on May 16. Chahal is preparing for a third wave by setting up jumbo pediatric hospitals because public health experts have warned his team that more children might be infected in the next surge.Managing the trajectory of the virus in Mumbai is crucial given the potential human toll of a runaway epidemic. And as India’s financial capital, the city is also central to the nation’s already battered economy.Mumbai houses the nation’s main stock exchange. It’s where large multinationals like Unilever Plc and global financial giants from Citigroup Inc. to KKR & Co. have their Indian headquarters. It’s home to the nation’s central bank and India’s mammoth film industry -- Bollywood.Chahal, 55, says he built up administrative skills growing up in a military family: His father was an officer in the Indian army. Over the past decades, he’s held a string of bureaucratic positions, including working on a proposal to remodel Dharavi and helming an overhaul of Maharashtra state’s irrigation systems.He had to hit the ground running last May, when Maharashtra’s Chief Minister Uddhav Thackeray asked him to head the municipal corporation at the height of Mumbai’s first wave. Bodies were piling up in mortuaries and the city’s densest slum, Dharavi, was battling a fast growing coronavirus crisis.Lessons from last year taught him the importance of a local approach and getting patients quickly isolated, a model he calls “Chase the Virus.” His team went door to door in Dharavi looking for people with symptoms and eventually isolating 150,000 people from the slum, a move that stopped the chain of infection. At the time, Chahal also abolished the central hub handling the city’s crisis and created local war rooms in each of the 24 administrative divisions -- wards or neighborhoods -- of the city.That localized approach helped as affluent neighborhoods were worse hit during the second wave. The local war rooms got test reports and reduced the spread the of infection by pointing patients to the nearest available hospital beds. The city administration negotiated with private hospitals to allocate beds for Covid patients at government decided rates.“We set up an excellent public private partnership between hospitals which is still today not visible in rest of the country,” Chahal said.When oxygen was running out during the second wave, Chahal started to source oxygen from nearby states. Mumbai’s civic authorities also banned hospitals from adding beds beyond their oxygen storage capacity, dodging the shortages that rocked other cities.Vaccinations“Wiser after our experience of last year, when the second wave hit with its dangerous mutations, the Brihanmumbai Municipal Corporation quickly scaled up its infrastructure including beds, equipments and doctors,” said Dr. Hetal Marfatia, professor and head of the ear, nose and throat department at Mumbai’s KEM Hospital. This time round most hospital beds had readily available oxygen lines, she said.At times, Chahal said he’s had to simply find innovative ways to use limited resources. When ambulances were in short supply, he called the city’s election commission and converted the 800 cars they sent over into ambulances by putting up partitions between the driver and passenger.Still, Mumbai has been the epicenter of the virus twice, and local doctors warn of the continued risks. Chahal’s team has also drawn criticism for what some have described as a chaotic approach to vaccinations.“Though our cases graph has come down now, I would say this is not the end,” said Dr. Vikas Oswal, a pulmonologist practicing in clinics in Dharavi and other parts of Mumbai. “We are expecting a rise in cases within two weeks now, as vaccination centers are over flooded. They are not being managed properly.”Chahal acknowledges some of the risks, saying he’s preparing more jumbo hospitals with 6,500 added beds, and he’s attempting to directly import vaccines from international companies.“More we vaccinate, the greater are chances that we reduce the threat of the next wave,” Chahal said.More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. Howell date : 210518 12h24m02s Business Reuters 210518 12h16m UPDATE 1-Canada's Teck sees little risk of higher taxes in No. 1 copper producer Chile -CEO Canada’s Teck Resources sees little risk of higher taxes in copper powerhouse Chile due to a stability agreement that shields the company's massive Quebrada Blanca Phase 2 copper project from higher levies for 15 years, Chief Executive Don Lindsay said on Tuesday. Chile's lower house this month approved a bill that would sharply hike taxes on copper mining to pay for social programs. Separately, Vancouver-based Teck has yet to decide whether to restart a sales process for its 80% stake in the Zafranal copper mine in Peru and could look for a partner to build it, Lindsay said. Business Yahoo Finance 210518 12h09m Discovery stock could be worth 35% more after AT&T deal: analyst One closely followed Wall Street analyst weighs in on the potential value for Discovery after it gobbles up WarnerMedia assets from AT&T. Business Reuters 210518 12h00m Italy's Valentino bans fur and focuses on its main brand Italian luxury group Valentino said on Tuesday it would stop using fur from next year and would focus on its main, eponymous brand, ditching its second, younger line from 2024. The fashion company controlled by Qatari investment vehicle Mayhoola follows many other brands in banning fur in recent years including Prada, Versace, Gucci and Armani, due to growing customer sensitivity to animal rights and environmental issues. The latest Valentino collection to include fur will be the Fall/Winter 2021-22 season, the company said. Politics Bloomberg 210518 11h46m Biden Delays Revamp of Trump’s Blacklist for China Investments (Bloomberg) -- President Joe Biden’s administration plans to delay by two weeks a ban on new U.S. investments in certain Chinese companies, as officials draft guidance to clarify a Trump-era policy that confused Wall Street, according to three officials familiar with the matter.Investors face a June 11 deadline to buy shares in the companies or sell shares to Americans, while the White House works to clarify how the investment ban applies to subsidiaries of blacklisted companies, said the people, who discussed the plan on condition of anonymity.Treasury Department officials had previously set a May 27 deadline to clarify the scope of the investment restrictions. One of the people said the review of the investment ban may be completed by June 11, though the Biden administration’s policy won’t necessarily be published by then.Biden’s team has been examining former President Donald Trump’s executive order that was issued in November, banning U.S. investments in Chinese companies owned or controlled by the military. Biden’s decision on the ban has been closely watched on Capitol Hill, where lawmakers are eager for a tougher stance on Beijing.The administration’s position has been just as scrutinized on Wall Street, where Trump’s order caused confusion over whether the investment ban applied to an array of companies that may be connected -- either as a subsidiary or by carrying a similar name -- to those on the blacklist.The Biden review includes an evaluation of companies on the list, including three of China’s biggest telecommunications firms that the New York Stock Exchange delisted in January-- China Mobile Ltd., China Telecom Corp. and China Unicom Hong Kong Ltd. It’s unclear whether the administration will change the list, but Biden intends to keep up financial pressure on Chinese military companies, according to people familiar with the matter.As part of the review, national security aides, Treasury officials and the White House Counsel’s Office staff have also sought to bolster the legal case for restricting U.S. investment to prevent future litigation.Investors have one year to fully divest from any company once it is added to the list. For the original set of companies, the deadline is Nov. 11.(Updates with more detail on June 11 deadline beginning in 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. Health Yahoo Finance Video 210518 11h42m Why Nike and its CEO are focusing on mental health Recently Nike CEO John Donahoe spoke to Yahoo Finance about his own struggles with mental health and seeking therapy. Yahoo Finance’s Alexis Christoforous and Sibile Marcellus discuss John Donahoe’s experience and what it means for breaking mental health stigma in corporate America. Business Bloomberg 210518 11h38m U.S. Tech Stocks Rise With Reopenings in Focus: Markets Wrap (Bloomberg) -- U.S. technology stocks rose on Tuesday as optimism that economic reopenings will boost growth outweighed concern about a pickup in virus cases in parts of Asia. Oil prices dropped amid a report that significant progress has been made to revive the U.S.-Iran nuclear deal.The Nasdaq 100 Index climbed for the third time in four sessions, boosted by gains in Tesla Inc., Amazon.com Inc. and Microsoft Corp. The S&P 500 fluctuated between gains and losses. AT&T Inc. plunged the most in the benchmark gauge after the company said it plans to spin off its media operations. Walmart Inc. rallied the most in six weeks after boosting its profit outlook.Stocks have been volatile after touching a record in early May as investors assessed economic growth prospects against a Covid-19 resurgence in countries including India. Minutes from the latest Federal Reserve meeting, due Wednesday, may offer clues on inflation pressure and hints of a timeline for tapering stimulus. Fed Vice Chair Richard Clarida said Monday that the weak U.S. jobs report showed the economy had not yet reached the threshold to warrant scaling back asset purchases.“What appeals to me is that investors are acting like investors again,” Abby Joseph Cohen, senior investment strategist at Goldman Sachs Group Inc., said in an interview on Bloomberg TV. “There is less emphasis on momentum and there’s more emphasis on relative valuation and which of the companies that have the strongest cash flow growth and are investing that cash flow growth.”Global investor sentiment is “unambiguously bullish,” Bank of America Corp. strategists led by Michael Hartnett said, citing the firm’s latest fund manager survey. Inflation topped the list of the biggest tail risks, followed by a bond market taper tantrum and asset bubbles, while Covid-19 was only in fourth place.West Texas Intermediate crude extended declines after the BBC Persian news channel, citing Russian diplomat Mikhail Ulyanov, reported that a major announcement may be made on Wednesday regarding talks to broker an agreement between Iran and the U.S. and revive the 2015 nuclear deal. Ulyanov said on Twitter that “unresolved issues still remain and the negotiators need more time and efforts to finalise an agreement on restoration” of the accord.Elsewhere, Bitcoin fell to the lowest since February after the People’s Bank of China reiterated that the digital tokens cannot be used as a form of payment. Coinbase Global Inc. fell after Monday’s drop below the reference price used in its April direct listing.Here are some key events this week:The Fed publishes minutes from its April meeting Wednesday, which may provide clues to officials’ views on the recovery and how they define “transitory” when it comes to inflationEIA crude oil inventory report WednesdaySt. Louis Fed President James Bullard and Atlanta Fed President Raphael Bostic to speak at separate events WednesdayIMF Managing Director Kristalina Georgieva and ECB President Christine Lagarde speak at the Vienna Economic Dialogue ThursdayAustralia unemployment rate ThursdayEuro-area finance ministers and central bank chiefs hold an informal meeting. A larger group of EU finance ministers and central bank chiefs will meet May 22These are some of the main moves in markets:StocksThe S&P 500 was little changed as of 1:34 p.m. New York timeThe Nasdaq 100 rose 0.5%The Dow Jones Industrial Average fell 0.1%The MSCI World index rose 0.5%CurrenciesThe Bloomberg Dollar Spot Index fell 0.3%The euro rose 0.5% to $1.2216The British pound rose 0.4% to $1.4191The Japanese yen rose 0.2% to 108.95 per dollarBondsThe yield on 10-year Treasuries was little changed at 1.65%Germany’s 10-year yield advanced one basis point to -0.10%Britain’s 10-year yield was little changed at 0.87%CommoditiesWest Texas Intermediate crude fell 1.4% to $65 a barrelGold futures were little changedMore stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. Howell date : 210518 11h53m26s Health Yahoo Finance Video 210518 11h41m Why Nike and its CEO are focusing on mental health Recently Nike CEO John Donahoe spoke to Yahoo Finance about his own struggles with mental health and seeking therapy. Yahoo Finance’s Alexis Christoforous and Sibile Marcellus discuss John Donahoe’s experience and what it means for breaking mental health stigma in corporate America. Business Bloomberg 210518 11h38m U.S. Tech Stocks Rise With Reopenings in Focus: Markets Wrap (Bloomberg) -- U.S. technology stocks rose on Tuesday as optimism that economic reopenings will boost growth outweighed concern about a pickup in virus cases in parts of Asia. Oil prices dropped amid a report that significant progress has been made to revive the U.S.-Iran nuclear deal.The Nasdaq 100 Index climbed for the third time in four sessions, boosted by gains in Tesla Inc., Amazon.com Inc. and Microsoft Corp. The S&P 500 fluctuated between gains and losses. AT&T Inc. plunged the most in the benchmark gauge after the company said it plans to spin off its media operations. Walmart Inc. rallied the most in six weeks after boosting its profit outlook.Stocks have been volatile after touching a record in early May as investors assessed economic growth prospects against a Covid-19 resurgence in countries including India. Minutes from the latest Federal Reserve meeting, due Wednesday, may offer clues on inflation pressure and hints of a timeline for tapering stimulus. Fed Vice Chair Richard Clarida said Monday that the weak U.S. jobs report showed the economy had not yet reached the threshold to warrant scaling back asset purchases.“What appeals to me is that investors are acting like investors again,” Abby Joseph Cohen, senior investment strategist at Goldman Sachs Group Inc., said in an interview on Bloomberg TV. “There is less emphasis on momentum and there’s more emphasis on relative valuation and which of the companies that have the strongest cash flow growth and are investing that cash flow growth.”Global investor sentiment is “unambiguously bullish,” Bank of America Corp. strategists led by Michael Hartnett said, citing the firm’s latest fund manager survey. Inflation topped the list of the biggest tail risks, followed by a bond market taper tantrum and asset bubbles, while Covid-19 was only in fourth place.West Texas Intermediate crude extended declines after the BBC Persian news channel, citing Russian diplomat Mikhail Ulyanov, reported that a major announcement may be made on Wednesday regarding talks to broker an agreement between Iran and the U.S. and revive the 2015 nuclear deal. Ulyanov said on Twitter that “unresolved issues still remain and the negotiators need more time and efforts to finalise an agreement on restoration” of the accord.Elsewhere, Bitcoin fell to the lowest since February after the People’s Bank of China reiterated that the digital tokens cannot be used as a form of payment. Coinbase Global Inc. fell after Monday’s drop below the reference price used in its April direct listing.Here are some key events this week:The Fed publishes minutes from its April meeting Wednesday, which may provide clues to officials’ views on the recovery and how they define “transitory” when it comes to inflationEIA crude oil inventory report WednesdaySt. Louis Fed President James Bullard and Atlanta Fed President Raphael Bostic to speak at separate events WednesdayIMF Managing Director Kristalina Georgieva and ECB President Christine Lagarde speak at the Vienna Economic Dialogue ThursdayAustralia unemployment rate ThursdayEuro-area finance ministers and central bank chiefs hold an informal meeting. A larger group of EU finance ministers and central bank chiefs will meet May 22These are some of the main moves in markets:StocksThe S&P 500 was little changed as of 1:34 p.m. New York timeThe Nasdaq 100 rose 0.5%The Dow Jones Industrial Average fell 0.1%The MSCI World index rose 0.5%CurrenciesThe Bloomberg Dollar Spot Index fell 0.3%The euro rose 0.5% to $1.2216The British pound rose 0.4% to $1.4191The Japanese yen rose 0.2% to 108.95 per dollarBondsThe yield on 10-year Treasuries was little changed at 1.65%Germany’s 10-year yield advanced one basis point to -0.10%Britain’s 10-year yield was little changed at 0.87%CommoditiesWest Texas Intermediate crude fell 1.4% to $65 a barrelGold futures were little changedMore stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. Business Bloomberg 210518 11h25m Oil Dips Amid Prospects of Progress on Iran Nuclear Deal Talks (Bloomberg) -- Oil clung to losses as investors weighed developments in ongoing talks between world powers to revive the Iran nuclear deal.Futures in London fell as much as 3.1% on Tuesday after a Russian envoy in Vienna said significant progress has been made in efforts to broker an agreement between Iran and the U.S, the BBC Persian news channel reported However, the same diplomat, Mikhail Ulyanov, subsequently took to Twitter to play down reports that a major announcement on the matter was likely on Wednesday.“I said that significant progress have been achieved, in my view,” Ulyanov said in the tweet. “That is true. But unresolved issues still remain and the negotiators need more time and efforts to finalise an agreement on restoration of JCPOA.”A return to the 2015 nuclear deal could allow for the removal of U.S. sanctions on the Persian Gulf country’s crude exports, raising the prospects of more supply coming back to the market. Iran has already been preparing to ramp up global oil sales, though the flow of additional crude may be gradual even if a deal is struck.See also: Iran Gears Up for Return to Oil Market as U.S. Talks AdvancePrices were already weak earlier in the session after Brent futures failed to sustain a rally past the key psychological $70-a-barrel mark, which it hasn’t closed above since May 2019. Meanwhile, concerns are lingering around the worsening Covid-19 crisis in India. The South Asian country’s gasoline exports soared 85% in the first half of May from the same period last month, according to Vortexa.“We’ve had a pretty robust rally, but the question continues to be if we’re going to see some slowdown because of continued issues in India,” said Bart Melek, head of commodity strategy at TD Securities. “The market’s going to need something fundamental happen for prices to break out” to the upside “and at this point we’re not getting it.”Still, oil is joining other commodities in a blistering rally this year. Crude prices are up more than 30%, as raw materials emerge as a hedge against inflation. Much of Wall Street is calling for higher prices, with Goldman Sachs Group Inc. talking up the prospects of $80 a barrel oil. At the same time, the Organization of Petroleum Exporting Countries and its allies are boosting supply to meet rebounding demand.Meanwhile, shippers on the largest U.S. fuel pipeline say they can’t access the pipeline’s communications system, preventing them from making nominations or submitting changes to their batches of fuel. The Colonial Pipeline has been working to restart after a cyberattack more than a week ago caused a spate of panic-buying across a dozen states.In the U.S., oil inventories are expected to have risen last week, according to a Bloomberg survey. If confirmed by U.S. government data on Wednesday, that would be the first weekly increase in three weeks. The industry-funded American Petroleum Institute reports its storage tally later Tuesday.More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. Business Bloomberg 210518 11h21m Jaguar Land Rover Owner Swings to Profit as China Sales Jump (Bloomberg) -- Jaguar Land Rover’s Indian owner reported a pretax profit for the three months through March as a recovery in Chinese demand lifted sales of the automaker’s luxury sports cars and SUVs.Tata Motors Ltd. posted fourth-quarter earnings of 57 billion rupees ($23 million) before tax and one-time items on Tuesday, rebounding from a loss of 65 billion rupees a year earlier. Revenue soared 42% and exceeded estimates.JLR’s improving sales performance is crucial for Mumbai-based Tata as the group’s Indian business is being buffeted by the surge in coronavirus cases gripping the country. Government-imposed lockdowns have shuttered sales outlets and halted factories’ production lines.“While demand remains strong, the supply situation over the next few months is likely to be adversely impacted by disruptions from Covid-19 lockdowns in India and semiconductor shortages worldwide,” Tata said in a statement.Charge TakenThe group booked a 1.5 billion-pound ($2.1 billion) charge initially flagged in February related to JLR’s shift to electric models, though its net loss still narrowed.Tata Motors closed 3.5% higher before the company released earnings. The stock is up 80% this year.Jaguar Land Rover posted a pretax profit of 534 million pounds in the quarter after selling 12% more vehicles. Sales more than doubled in China and increased 10% in North America.All model ranges except Jaguar-brand autos were back to pre-Covid levels in the quarter, lifting JLR’s market share to 6%. That was up from 4.4% in the first three months of the financial year, with the new Defender sport utility vehicle spurring gains.Chip IssueThe global shortage of semiconductors has affected JLR since the quarter ended, forcing the carmaker to suspend production at its Castle Bromwich and Halewood plants for a limited period.The company is working with suppliers to resolve the issue, though Chief Financial Officer Adrian Mardell said it could contribute to a small Ebit loss in the current quarter, which is always JLR’s weakest for cash flow. He reiterated full-year cash and profit-margin targets.JLR is staging a recovery after wrangling with uncertainty over Brexit and stricter emissions limits in the past few years. Chief Executive Officer Thierry Bollore has outlined plans to cut costs by 2.5 billion pounds and reduce headcount by 2,000 while accelerating an electrification drive.The company said it has reduced expenses to lower its breakeven point to 400,000 vehicle sales a year, from 600,000 in 2019.Tata said its own operations will show a “relatively weak” performance in the current quarter as the Covid-19 outbreak hampers production and commodity prices increase. It expects a gradual improvement later in the year.(Updates with sales details in the eighth 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. Business Bloomberg 210518 11h16m Deutsche Telekom Is Considering Raising Its Stake in T-Mobile (Bloomberg) -- Deutsche Telekom AG is considering taking a bigger stake in affiliate T-Mobile, according to a person familiar with the discussions, in a sign the German carrier’s management sees more growth potential in the U.S. than at home.Deutsche Telekom currently holds a 43.3% stake in T-Mobile US Inc. worth $73.3 billion. In 2020, it was granted the right to buy a further 101.5 million shares -- around 8% -- in the U.S. carrier currently held by SoftBank Group Corp. T-Mobile’s stock slipped 1.8% to $137.75 in New York trading Tuesday. A spokesperson for Deutsche Telekom declined to comment. The news was first reported by Handelsblatt.Deutsche Telekom Chief Executive Officer Tim Hoettges, who is set to address shareholders at a capital markets day on Thursday, has lobbied in vain for years for cross-border European mergers that would allow the region’s phone companies to narrow a profitability gap with their U.S. peers.With Deutsche Telekom struggling for growth in Europe, T-Mobile has outperformed its parent company, and has taken a lead in fifth-generation mobile services outpacing rivals Verizon Communications Inc. and AT&T Inc. Its acquisition of Sprint Corp. a year ago made it the second-largest provider of wireless services in the country.Earlier this month, T-Mobile topped earnings estimates and boosted its subscriber forecast.Read More: Deutsche Telekom Ponders European M&A After $26.5 Billion DealSoftBank became a co-owner of T-Mobile with Deutsche Telekom after the carrier took over Sprint in a $26.5 billion merger in 2020.(Updates share price in the second paragraph. A previous version of the story corrected a time reference.)More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. Howell date : 210518 11h22m49s World Reuters 210518 11h12m EU lawmakers give final approval to bloc's green transition fund The European Parliament on Tuesday formally approved the European Union's multi-billion euro fund to support countries as they wind down fossil fuel industries, as the bloc overhauls its economy to fight climate change. It will support communities most affected by plans to shut down coal, peat and oil shale sectors, or other emissions-intensive industries, and replace them with low-carbon industries and jobs -- a transformation seen as key to meeting the EU's target to eliminate its net greenhouse gas emissions by 2050. The JTF needs final approval from the EU's 27 countries, expected in June, but that is a formal procedure and will not change any details. Business Reuters 210518 11h00m U.S. banking regulator cautions firms against "overconfidence" following pandemic The new chief of a U.S. banking regulator is cautioning banks to avoid "overconfidence" after weathering the global pandemic, and also flagged climate change as a new risk for the sector. Michael Hsu, the acting comptroller of the currency, said Tuesday banks deserved credit for navigating a tumultuous period while still working with struggling borrowers. "Archegos I think is a bit of a flag, because I think that is reflective of at least some banks and firms having gotten complacent." Business Bloomberg 210518 10h59m Plunge in Lumber Contracts Signals Turning Point for Wood Rally (Bloomberg) -- While builders are still paying record-high cash prices for lumber, the futures market is signaling that the historic rally could be coming to a close.The Lumber contract for July delivery fell $63 on Tuesday, the maximum permitted by the Chicago Mercantile Exchange, with the price sinking to $1,264 per 1,000 board feet. That’s the seventh straight session of falling prices for the futures contract, marking the longest streak of declines since September. Lumber’s most-active futures contract is down 27% from its May 10 peak of $1,733.50, a level more than four times above prices a year ago.While the drop indicates market weakness, with traders saying the preceding rally went too high, builders who need to purchase wood for summer projects are still paying top dollar due to tight supplies at sawmills and strong demand.The Fastmarkets Random Lengths U.S. Framing Lumber Composite Index soared to a record $1,495 per 1,000 board feet on Friday, the most recent pricing. That is up 6% from the week prior and nearly four times the price of a year ago. A composite index for oriented strand board, a plywood substitute product, jumped 3% from the previous week to $1,426 per 1,000 square feet, five times more than a year ago.“The mills have this order file where they’ve sold the physical production through the middle of June,” said Greg Kuta, chief executive officer of Westline Capital Strategies Inc., an Ohio-based firm that specializes in lumber trading strategies. “They don’t have to come to the open market here and take counteroffers on their physical cash for at least two to three weeks.”More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. Business Reuters 210518 10h49m UPDATE 1-French broadcasters close ranks with anti-Netflix merger France's two biggest private broadcasters are closing ranks to fend off the meteoric rise of U.S. streaming platforms, hoping the desire for a national champion that can take on global video-on-demand giants will trump domestic antitrust concerns. Announcing their merger on Monday, TF1 and M6 stressed their move was a response to the accelerating challenges from global platforms, saying the deal was critical to ensure the long-term independence of French content creation. Business Reuters 210518 10h48m Air France uses cooking oil to fly to Canada as green fuel debate rages Air France-KLM flew a biofuel-powered Airbus A350 from Paris to Montreal on Tuesday, demonstrating the airline's readiness to adopt low-emissions fuel despite deep industry divisions over the pace of its adoption. Air France flight 342 took off from Charles de Gaulle airport with a 16% mix of sustainable aviation fuel (SAF) in its fuel tanks, produced in France by Total from used cooking oil. The flight signalled a "shared ambition to decarbonize air transportation and to develop a SAF supply chain in France", the companies said in a joint statement with airport operator ADP. Business Bloomberg 210518 10h47m Chinese Firm GDS Is Said to Weigh Buying GLP’s Data Centers (Bloomberg) -- GDS Holdings Ltd. is considering acquiring GLP Pte’s data centers business as the Chinese cloud computing company seeks to expand its digital infrastructure capacity in the world’s second-largest economy, according to people familiar with the matter.GDS, a developer and operator of high-performance data centers across China, is holding preliminary talks with Singapore investment manager GLP over a potential transaction that could value the assets at $8 billion to $10 billion, the people said, asking not to be identified because the deliberations are private. As part of the deal GLP would become a shareholder in Shanghai-based GDS, the people said.Considerations are at an early stage and the companies could decide against pursuing a transaction, the people said. Details including valuation and structure of a deal could change, they said. Representatives for GDS and GLP didn’t respond to phone calls, emails and text messages requesting comment.GDS’s American depositary shares jumped as much as 5.4% Tuesday. They were up 4.2% at 12:41 p.m. in New York, giving the company a market value of $14.8 billion and putting it on track to close at the highest level in more than two weeks.Booming Interest The prospective deal comes as digital infrastructure swells in importance to the global economy, with data centers supporting everything from the video streams that enable remote working to the online gaming and social media that fill our leisure time.Read More: Global Switch’s Chinese Owners Said to Mull $11 Billion SaleGDS, China’s largest independent data center operator by market value, raised $1.9 billion in a Hong Kong secondary listing last year, according to data compiled by Bloomberg. Chief Executive Officer William Huang said in a November Bloomberg Television interview that the company plans to use the proceeds primarily to invest in data centers in China, Hong Kong and possibly Southeast Asia. GDS might also look at M&A opportunities in China and beyond, Huang said.GLP has substantial data center holdings of its own in China. The company has been developing GLP Huailai Internet Data Centre in Hebei province, northern China, with a total investment of about 10 billion yuan ($1.6 billion), according to its website. The facility will offer more than 15,000 cabinets, which can hold about 200,000 servers, once the project is finished.Founded in 2009, the firm is a global investment manager in logistics, real estate, infrastructure and technology, the website shows. It operates in markets including China, the U.S., Brazil, Europe, India, Japan and Vietnam and counts more than $100 billion in assets under management.A sale of the data center assets would follow other blockbuster deals by GLP. In 2019, it sold its U.S. urban logistics properties to Blackstone Group Inc. in an $18.7 billion transaction.(Updates with New York trading in fourth 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. Howell date : 210518 10h52m13s Business Reuters 210518 10h43m Canadian exporters rejig currency hedges as commodities boom Canadian exporters are adjusting their currency hedges and buying the loonie at stronger levels, in a sign market players are growing more confident that the currency's commodity-linked surge this year will stick, foreign exchange dealers say. The Canadian dollar has climbed nearly 6% against the U.S. dollar since the beginning of the year, the biggest gain among the Group of 10 currencies. A stronger loonie could crimp the profit margins and reduce the competitiveness of Canada's exporters. World Bloomberg 210518 10h43m Progress on Iran Nuke Deal to Be Unveiled Tomorrow, BBC Says (Bloomberg) -- Significant progress has been made at talks to broker an agreement between Iran and the U.S. and revive the 2015 nuclear deal, and a major announcement may be made on Wednesday, the BBC Persian news channel reported, citing a Russian diplomat.On Twitter, the same diplomat, Mikhail Ulyanov, Russia’s representative at the United Nations’ International Atomic Energy Agency, said “unresolved issues still remain and the negotiators need more time and efforts to finalise an agreement on restoration” of the accord.Oil initially extended losses on the BBC report to fall as much as 3.1% in London, before regaining some of those losses. A return to the 2015 deal could allow for the removal of U.S. sanctions on the Persian Gulf country’s crude exports, raising the prospects of more supply coming back to the market.Brent Tumbles After Reports of Iran Nuclear Deal: Markets LiveFor the past six weeks, Iran and the U.S. have been engaged in indirect talks in Vienna where world powers -- including the European Union, Russia and China -- have been trying to orchestrate Washington’s return to the nuclear accord that former President Donald Trump abandoned in 2018.(Updates with envoy statement in 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. Business Bloomberg 210518 10h40m Amazon Considers Buying Movie Studio MGM for $9 Billion (Bloomberg) -- Amazon.com Inc. is in talks to buy James Bond movie company Metro-Goldwyn-Mayer, according to a person familiar with the matter, potentially taking one of the last major independent film studios off the market.Amazon is considering a bid of about $9 billion, said the person, who asked not to be identified because the deliberations are private. Discussions could still fall apart and details such as price may change, the person said. The Information and Variety previously reported on the talks.An agreement would cap a rush of streaming deals that are set to make 2021 a record year for media takeovers. Reports about the discussions came on the day that AT&T Inc. announced its plan to create a new entertainment company by merging assets with Discovery Inc. in an entity that will be valued at about $130 billion including debt.The proliferation of streaming services, including newer arrivals such as Disney+, HBO Max and Paramount+, has put pressure on Amazon to acquire more programming. MGM’s vast backlog also provides plenty of material at a time when production of new shows and movies is still recovering from the pandemic.MGM and Amazon declined to comment on deal talks.More than $80 billion in media takeovers have been announced so far this year, according to data collected by Bloomberg. That puts 2021 on track to be the busiest period for the industry since at least 2000, when AOL and Time Warner Inc. announced plans to combine.MGM has been seen as a takeover target for years, but was never able to close a sale. The company made a fresh push last year, when the Wall Street Journal reported it hired advisers to solicit offers.How the Pandemic Pressed Fast Forward on the Streaming Wars: QuickTakeMGM also discussed other scenarios with tech giants. MGM, whose library includes the “Rocky” films and “Silence of the Lambs,” held talks with Apple Inc. and Netflix Inc. about taking its new James Bond film directly to streaming. But the company said last year that it’s committed to a theatrical release for the film, which is currently slated for Oct. 8 in the U.S.Amazon, meanwhile, is reshuffling its entertainment operations with the return of longtime executive Jeff Blackburn. He briefly left the e-commerce company to join Silicon Valley venture capital firm Bessemer Venture Partners. But now he’s taking command of Amazon’s entire entertainment division, including the Prime Video streaming service, Amazon Studios and the video-game-streaming site Twitch.An Amazon acquisition of MGM would be its largest purchase since it bought Whole Foods Market for $13.7 billion in 2017.Talking to ChairmanAmazon’s bid for MGM is being handled by video executive Mike Hopkins, according to Variety. He’s dealing directly with MGM Chairman Kevin Ulrich, the publication said.MGM traces its roots back to the 1920s merger of Marcus Loew’s Metro films with a film company run by Hollywood legend Louis B. Mayer. While making great pictures like “Dr. Zhivago” and “2001: A Space Odyssey,” MGM drifted in and out of financial distress in the second half of the 20th century. Over the decades it was owned by Time Inc., CNN founder Ted Turner and more than once by the late billionaire Kirk Kerkorian.Now, it’s one of the last large movie studios that’s maintained its independence from larger media groups. Warner Bros. is now part of AT&T, Walt Disney Co. acquired 20th Century Fox, Paramount is owned by ViacomCBS Inc., and Universal Pictures is controlled by Comcast Corp.There’s been speculation before about Amazon acquiring entertainment companies. It was previously seen as a possible buyer of AMC Entertainment Holdings Inc., the movie chain, with some investors confusing it with AMC Networks Inc., the owner of cable channels.Investors suffered a similar sort of confusion on Monday, with the Information report boosting shares of MGM Resorts International, a casino company that isn’t part of Metro-Goldwyn-Mayer. MGM Resorts stock jumped as much as 5.8% in late trading before quickly retreating.More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. Business Bloomberg 210518 10h31m U.S. Tech Stocks Rise With Reopenings in Focus: Markets Wrap (Bloomberg) -- U.S. technology stocks rose on Tuesday as optimism that economic reopenings will boost growth outweighed concern about a pickup in virus cases in parts of Asia. Oil prices dropped after the BBC said progress was made in the U.S-Iran nuclear talks.The Nasdaq 100 Index climbed for the third time in four sessions, boosted by gains in Amazon.com Inc., Tesla Inc. and Alphabet Inc. The S&P 500 fluctuated between gains and losses. AT&T Inc. plunged the most in the benchmark gauge after the company said it plans to spin off its media operations. Walmart Inc. rallied the most in six weeks after boosting its profit outlook.Stocks have been volatile after touching a record in early May as investors assessed economic growth prospects against a Covid-19 resurgence in countries including India. Minutes from the latest Federal Reserve meeting, due Wednesday, may offer clues on inflation pressure and hints of a timeline for tapering stimulus. Fed Vice Chair Richard Clarida said Monday that the weak U.S. jobs report showed the economy had not yet reached the threshold to warrant scaling back asset purchases.“What appeals to me is that investors are acting like investors again,” Abby Joseph Cohen, senior investment strategist at Goldman Sachs Group Inc., said in an interview on Bloomberg TV. “There is less emphasis on momentum and there’s more emphasis on relative valuation and which of the companies that have the strongest cash flow growth and are investing that cash flow growth.”Global investor sentiment is “unambiguously bullish,” Bank of America Corp. strategists led by Michael Hartnett said, citing the firm’s latest fund manager survey. Inflation topped the list of the biggest tail risks, followed by a bond market taper tantrum and asset bubbles, while Covid-19 was only in fourth place.West Texas Intermediate crude sank to session lows after the BBC reported that a Russian envoy in Vienna said significant progress had been made in efforts to broker an agreement between Iran and the U.S. to revive the 2015 nuclear deal. Russia’s representative at the United Nations in Vienna, Mikhail Ulyanov, spoke to BBC Persian, according to the channel’s official Twitter account.Elsewhere, Bitcoin fell to the lowest since February after the People’s Bank of China reiterated that the digital tokens cannot be used as a form of payment. Coinbase Global Inc. fell after Monday’s drop below the reference price used in its April direct listing.Here are some key events this week:The Fed publishes minutes from its April meeting Wednesday, which may provide clues to officials’ views on the recovery and how they define “transitory” when it comes to inflationEIA crude oil inventory report WednesdaySt. Louis Fed President James Bullard and Atlanta Fed President Raphael Bostic to speak at separate events WednesdayIMF Managing Director Kristalina Georgieva and ECB President Christine Lagarde speak at the Vienna Economic Dialogue ThursdayAustralia unemployment rate ThursdayEuro-area finance ministers and central bank chiefs hold an informal meeting. A larger group of EU finance ministers and central bank chiefs will meet May 22These are some of the main moves in markets:StocksThe S&P 500 was little changed as of 12:27 p.m. New York timeThe Nasdaq 100 rose 0.4%The Dow Jones Industrial Average fell 0.2%The MSCI World index rose 0.5%CurrenciesThe Bloomberg Dollar Spot Index fell 0.3%The euro rose 0.5% to $1.2212The British pound rose 0.4% to $1.4189The Japanese yen rose 0.2% to 108.96 per dollarBondsThe yield on 10-year Treasuries was little changed at 1.65%Germany’s 10-year yield advanced one basis point to -0.10%Britain’s 10-year yield was little changed at 0.87%CommoditiesWest Texas Intermediate crude fell 1.8% to $65 a barrelGold futures were little changedMore stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. Business Reuters 210518 10h31m Saudi Aramco to co-lead report on cyber resilience in oil industry Saudi Aramco is co-leading a report on cyber resilience in the oil and gas industry with the World Economic Forum (WEF) and Siemens Energy, the Saudi Arabian state oil giant wrote on Twitter. Aramco added that the report is "a collaboration involving 40 major industry players to shape the future of cyber security in the oil and gas industry". Business Bloomberg 210518 10h27m Oil Accelerates Decline With Signs of Progress on Iran Talks (Bloomberg) -- Oil extended losses following reports of progress being made in an effort to revive the Iran nuclear deal.Futures slumped as much as 3.1% in London on Tuesday. A Russian envoy in Vienna said that significant progress has been made in efforts to broker an agreement between Iran and the U.S., according to the BBC. A return to the 2015 nuclear deal could allow for the removal of U.S. sanctions on the Persian Gulf country’s crude exports, raising the prospects of more supply coming back to the market.Prices were already weak earlier in the session after Brent futures failed to sustain a rally past the key psychological $70-a-barrel mark, which it hasn’t closed above since May 2019.“Increased production out of Iran is already being priced in the market,” said Ryan Fitzmaurice, commodities strategist at Rabobank. “But there is still headline risk associated with the nuclear talks.”Further weighing on prices, concerns linger around the worsening Covid-19 crisis in India. The South Asian country’s gasoline exports soared 85% in the first half of May from the same period last month, according to Vortexa.“We’ve had a pretty robust rally, but the question continues to be if we’re going to see some slowdown because of continued issues in India,” said Bart Melek, head of commodity strategy at TD Securities. “The market’s going to need something fundamental happen for prices to break out” to the upside “and at this point we’re not getting it.”Still, oil is joining other commodities in a blistering rally this year, which is seeing crude prices up more than 35%, as raw materials emerge as a hedge against inflation. Much of Wall Street is calling for higher prices, with Goldman Sachs Group Inc. talking up the prospects of $80 a barrel crude. At the same time, the Organization of Petroleum Exporting Countries and its allies are boosting supply to meet rebounding demand.Meanwhile, shippers on the largest U.S. fuel pipeline say they can’t access the pipeline’s communications system, preventing them from making nominations or submitting changes to their batches of fuel. The Colonial Pipeline has been working to restart since being hacked over a week ago, from which a spate of panic-buying while the pipeline was down had spawned shortages at hundreds of gas stations in a dozen states across the East Coast.In the U.S., oil inventories are expected to have risen last week, according to a Bloomberg survey. If confirmed by U.S. government data on Wednesday, that would be the first weekly increase in three weeks. The industry-funded American Petroleum Institute reports its storage tally later Tuesday ahead of the Energy Information Administration’s figures.More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. Business Bloomberg 210518 10h11m Robinhood Plans to Reveal Its IPO Filings as Soon as Next Week (Bloomberg) -- Robinhood Markets Inc. plans to reveal filings for its initial public offering as soon as next week, as the trading app targets late June for its market debut, according to people familiar with the matter.While Robinhood’s IPO plans are advanced, the timing and details could change, said the people, who asked not to be identified discussing private information. A representative for Robinhood declined to comment.The filing will give potential investors their first comprehensive look at Robinhood’s financials and the risks associated with the stock. Robinhood submitted confidential documents to the U.S. Securities and Exchange Commission in March, a process that allows the regulator to weigh in on any changes needed before making them widely available.A securities filing in May revealed that the company’s payment for order flow -- its largest source of revenue -- more than tripled in the first quarter to $331 million as it became immensely popular with young investors amid the meme-stock frenzy.Regulators have said that Robinhood’s platform encourages the game-like nature of trading, particularly among inexperienced retail traders. Gary Gensler, the new SEC chairman, said at a congressional hearing on May 6 that many regulations were written before recent technologies changed the way trading happens.“We need to evaluate our rules, and we may find that we need to freshen up our rule set,” Gensler said.More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. Howell date : 210518 10h21m36s World Reuters 210518 09h58m UPDATE 1-India's Biological E. to produce J&J COVID-19 vaccine India's Biological E. will produce the Johnson & Johnson COVID-19 vaccine alongside its own candidate, its managing director told Reuters on Tuesday, which could boost the country's overall supplies amid a shortage. "The infrastructure and plants are completely separate for both the products and we will be producing both independent of each other," Mahima Datla said in a text message, declining to give any timeline or other details. She told Reuters in February that Biological E. was looking to contract-manufacture about 600 million doses of the J&J vaccine annually. World Reuters 210518 09h56m UPDATE 1-Brazil lifts 2021 inflation outlook, flagging drought pressures Brazil's economy ministry raised its inflation outlook for this year to 5.05% from 4.42% previously, amid mounting risks on the horizon. Economy secretary Adolfo Sachsida said that, besides pandemic and fiscal concerns, the government also recognised risks linked to lack of rain. Business Bloomberg 210518 09h55m Colonial Pipeline Says Network Issues Affecting Shippers (Bloomberg) -- Colonial Pipeline, the nation’s biggest fuel system that has been working to restart since being hacked two weeks ago, is experiencing network issues that leave customers unable to access their fuel shipments.The system that allows customers to reserve space on the line, make changes to their batches or receive updates on fuel traveling through the system has been inaccessible as of Tuesday morning, according to shippers, asking not to be identified because the information isn’t public. The pipeline appears to still be operating despite the communication outage, the shippers said.In a subsequent notice to shippers, Colonial said “it is currently experiencing network issues impacting customers’ ability to enter and update nominations,” and that it is working to restore service. Shippers on the pipeline use a third party communication system known as Transport 4 to access Colonial’s network daily to ensure timely receipts and shipments of various grades of fuel.The Colonial system, a key fuel artery transports roughly 2.5 million barrels a day of refined products such as gasoline and diesel to the East Coast, had resumed service on May 12 after a ransomware attack shut down the entire system. Gas stations from Alabama to Washington D.C. ran out of fuel amid a rush of panic buying and are still in the process of recovery as trucks work overtime to deliver gasoline from the pipeline to retail outlets.The White House had no immediate comment, nor did the Energy Department, Transportation Security Administration and Federal Energy Regulatory CommissionGasoline futures on the New York Mercantile Exchange were up 0.8% at $2.1669 a gallon at 11:18 a.m. New York time.(Updates to add Colonial comment in first and 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. Business Bloomberg 210518 09h54m U.S. Tech Stocks Rise With Reopenings in Focus: Markets Wrap (Bloomberg) -- U.S. technology stocks rose on Tuesday as optimism that economic reopenings will boost growth outweighed concern about a pickup in virus cases in parts of Asia.The Nasdaq 100 Index climbed for the third time in four sessions, boosted by gains in Amazon.com Inc., Alphabet Inc. and Apple Inc. The S&P 500 fluctuated between gains and losses. AT&T Inc. plunged the most in the benchmark gauge after the company said it plans to spin off its media operations. Walmart Inc. rallied the most in six weeks after boosting its profit outlook.Stocks have been volatile after touching a record in early May as investors assessed economic growth prospects against a Covid-19 resurgence in countries including India. Minutes from the latest Federal Reserve meeting, due Wednesday, may offer clues on inflation pressure and hints of a timeline for tapering stimulus. Fed Vice Chair Richard Clarida said Monday that the weak U.S. jobs report showed the economy had not yet reached the threshold to warrant scaling back asset purchases.“What appeals to me is that investors are acting like investors again,” Abby Joseph Cohen, senior investment strategist at Goldman Sachs Group Inc., said in an interview on Bloomberg TV. “There is less emphasis on momentum and there’s more emphasis on relative valuation and which of the companies that have the strongest cash flow growth and are investing that cash flow growth.”Global investor sentiment is “unambiguously bullish,” Bank of America Corp. strategists led by Michael Hartnett said, citing the firm’s latest fund manager survey. Inflation topped the list of the biggest tail risks, followed by a bond market taper tantrum and asset bubbles, while Covid-19 was only in fourth place.Elsewhere, Bitcoin fell to the lowest since February after the People’s Bank of China reiterated that the digital tokens cannot be used as a form of payment. Coinbase Global Inc. fluctuated after Monday’s drop below the reference price used in its April direct listing.Here are some key events this week:The Fed publishes minutes from its April meeting Wednesday, which may provide clues to officials’ views on the recovery and how they define “transitory” when it comes to inflationEIA crude oil inventory report WednesdaySt. Louis Fed President James Bullard and Atlanta Fed President Raphael Bostic to speak at separate events WednesdayIMF Managing Director Kristalina Georgieva and ECB President Christine Lagarde speak at the Vienna Economic Dialogue ThursdayAustralia unemployment rate ThursdayEuro-area finance ministers and central bank chiefs hold an informal meeting. A larger group of EU finance ministers and central bank chiefs will meet May 22These are some of the main moves in markets:StocksThe S&P 500 was little changed as of 11:50 a.m. New York timeThe Nasdaq 100 rose 0.3%The Dow Jones Industrial Average fell 0.2%The Stoxx Europe 600 rose 0.2%The MSCI World index rose 0.5%CurrenciesThe Bloomberg Dollar Spot Index fell 0.2%The euro rose 0.4% to $1.2206The British pound rose 0.4% to $1.4187The Japanese yen rose 0.2% to 108.99 per dollarBondsThe yield on 10-year Treasuries was little changed at 1.65%Germany’s 10-year yield advanced one basis point to -0.10%Britain’s 10-year yield was little changed at 0.87%CommoditiesWest Texas Intermediate crude fell 0.6% to $66 a barrelGold futures were little changedMore stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. Business Reuters 210518 09h51m US STOCKS-S&P 500 flat as telecom weakness offsets strong retail earnings The S&P 500 wavered between slight gains and losses on Tuesday as a sharp decline in telecom stocks and weak housing starts data overshadowed better-than-expected earnings from Walmart and Home Depot. AT&T Inc shed 5%, the top drag on the benchmark S&P 500, as it extended declines from Monday, when the telecoms firm said it would cut its dividend payout ratio as a result of its $43 billion media asset deal with Discovery Inc. Howell date : 210518 09h51m00s Business Reuters 210518 09h41m UPDATE 1-JPMorgan shareholders vote to back board members, executive compensation A majority of JPMorgan Chase & Co shareholders voted to approve bank executives' compensation packages and to elect all of the board members at the annual shareholder meeting on Tuesday. Two shareholder proposals received strong support but fell just shy of the majority of shares needed to pass. The first was a proposal that would have made it easier for some investors to act by written consent by reducing the ownership threshold required to start that process. Business Yahoo Finance 210518 09h41m Stock market news live updates: Stocks trade sideways as technology shares steady Stocks were slightly higher on Tuesday, with the indexes looking to recoup some losses from Monday's session. Technology stocks outperformed, reversing course after lagging a day earlier. Business Reuters 210518 09h30m TREASURIES-U.S. yields little changed as inflation remains key topic U.S. Treasury yields remained little changed on Tuesday as strong consumer demand as seen in Walmart and Home Depot results was insufficient to push market participants into the camp that disavows the Federal Reserve's views on inflation. The yield on 10-year Treasury notes was up 0.5 basis point to 1.654% as the longer-dated government debt edged slightly higher but the short end remained mostly unchanged. On the margin there are concerns about inflation, said Guy LeBas, chief fixed income strategist at Janney Montgomery Scott. Business Reuters 210518 09h24m JPMorgan shareholders vote to back board members, executive compensation A majority of JPMorgan Chase & Co shareholders voted to approve bank executives' compensation packages and to elect all of the board members at the annual shareholder meeting on Tuesday. Two shareholder proposals received strong support but fell just shy of the majority of shares needed to pass. The first was a proposal that would have made it easier for some investors to act by written consent by reducing the ownership threshold required to start that process. Business Bloomberg 210518 09h23m EU’s Prelude to Landmark Recovery Bond Sales Ends With a Whimper (Bloomberg) -- The European Union’s final bond sales for its regional jobs program failed to live up to the hype of previous editions, a concerning sign for its landmark borrowing spree that’s due to start in the second half of the year.Investors placed 88.7 billion euros ($108 billion) of orders for eight- and 25-year securities tied to the SURE social program, little more than a third of the record set for a dual-tranche issue last year. It comes as yields across the region climb as investors prepare for European Central Bank to scale back its bond purchases in the face of growing inflationary pressures. The bloc is ready to start sales for its 800 billion-euro recovery fund by July.It marks a stark turnaround for one of the hottest new triple-A rated bond markets in town. When the EU launched the securities last year, Europe was still firmly in the throes of lockdowns, the ECB was committed to pumping money into debt markets and investor demand for the securities was enormous. Now, with economies reopening and consumer prices expected to accelerate, they’re becoming a less attractive asset.“We had been used to some very strong demand for the EU bonds,” said Jens Peter Sorensen, chief analyst at Danske Bank AS. “Why buy today, if you can buy cheaper tomorrow? That’s becoming a self-fulfilling prophecy.”The bloc is set to become a major issuer of bonds in the coming years, potentially creating a debt market akin to the size of Spain’s. The securities have also been touted as a one-day rival to U.S. Treasuries, given the current scarcity of German bonds -- the region’s haven asset -- and the risks associated with holding riskier peripheral debt.In another sign of waning demand, the yield on 10-year SURE bonds has climbed more than 40 basis points since they were issued in October. That mirrors moves elsewhere in Europe, with German 10-year bond yields climbing to their highest level since 2019 last week.Goldman Sachs Group Inc. expects them to breach 0% for the first time since 2019 this year. Italian 10-year bond yields rose to the highest level since July on Monday as investors speculated an economic growth rebound could mean less central bank support.“The first few EU SURE syndications were a smashing success in terms of demand,” said Martin van Vliet, a strategist at Robeco. “There will be structural demand for triple AAA paper such as the EU, so the recovery fund issuance will be digested, but we’re not sure demand will be as astronomical.”The Commission announced Monday that it would use an auction system operated by France’s central bank to issue debt later in the year, relying on syndications in the meantime. Sales are expected to average around 150 billion euros per year for the duration of the program, though all member states need to ratify the recovery program for funds to start flowing.Still, EU bonds will outperform “core” European sovereign peers because investors face a serious shortage of notes in both the short- and long-term, Commerzbank AG analysts wrote in a note to clients last month. Any attempt to extend the size of the package is likely to be politically difficult, they argue.The EU mandated Deutsche Bank AG, LBBW, Morgan Stanley, Natixis SA and NatWest Markets for the sale of SURE bonds. Commerzbank expects the EU will sell as much as 15 billion euros of bonds. The sale of eight-year securities was given a price of two basis points below midswaps, while the 25-year was marked at 17 basis points above.“Over the last couple of weeks things have definitely turned more challenging,” said Christoph Rieger, head of fixed-rate strategy at Commerzbank. “Lower ECB buying may require somewhat higher premiums.”(Updates to include final demand from first 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. Howell date : 210518 09h20m23s Howell date : 210518 08h49m47s Business Bloomberg 210518 08h45m U.S. Tech Stocks Rise With Reopenings in Focus: Markets Wrap (Bloomberg) -- U.S. technology stocks rose on Tuesday as optimism that economic reopenings will boost growth outweighed concern about a pickup in virus cases in parts of Asia.The Nasdaq 100 Index climbed for the third time in four sessions, led by gains in Amazon.com Inc., Alphabet Inc. and Apple Inc. The S&P 500 fluctuated between gains and losses, with a plunge in AT&T Inc. amid the company’s plan to spin off its media operations weighing on the benchmark gauge. Stocks have been volatile after touching a record in early May as investors assessed economic growth prospects against a Covid-19 resurgence in countries including India. Minutes from the latest Federal Reserve meeting, due Wednesday, may offer investors clues on inflation pressure and hints of a timeline for tapering stimulus. Fed Vice Chair Richard Clarida said Monday that the weak U.S. jobs report showed the economy had not yet reached the threshold to warrant scaling back asset purchases.“What appeals to me is that investors are acting like investors again,” Abby Joseph Cohen, senior investment strategist at Goldman Sachs Group Inc., said in an interview on Bloomberg TV. “There is less emphasis on momentum and there’s more emphsis on relative valuation and which of the companies that have the strongest cash flow growth and are investing that cash flow growth.”Global investor sentiment is “unambiguously bullish,” Bank of America Corp. strategists led by Michael Hartnett said, citing the firm’s latest fund manager survey. Inflation topped the list of the biggest tail risks, followed by a bond market taper tantrum and asset bubbles, while Covid-19 was only in fourth place.Elsewhere, Bitcoin fell to the lowest since February after the People’s Bank of China reiterated that the digital tokens cannot be used as a form of payment. Coinbase Global Inc. fell after Monday’s drop below the reference price used in its April direct listing.The dollar fell toward a four-month low, while 10-year U.S. Treasuries were little changed. West Texas Intermediate crude fell for the first time in three sessions.Here are some key events this week:The Fed publishes minutes from its April meeting Wednesday, which may provide clues to officials’ views on the recovery and how they define “transitory” when it comes to inflationEIA crude oil inventory report WednesdaySt. Louis Fed President James Bullard and Atlanta Fed President Raphael Bostic to speak at separate events WednesdayIMF Managing Director Kristalina Georgieva and ECB President Christine Lagarde speak at the Vienna Economic Dialogue ThursdayAustralia unemployment rate ThursdayEuro-area finance ministers and central bank chiefs hold an informal meeting. A larger group of EU finance ministers and central bank chiefs will meet May 22These are some of the main moves in markets:StocksThe S&P 500 was little changed as of 10:43 a.m. New York timeThe Nasdaq 100 rose 0.5%The Dow Jones Industrial Average fell 0.3%The Stoxx Europe 600 rose 0.2%The MSCI World index rose 0.5%CurrenciesThe Bloomberg Dollar Spot Index fell 0.3%The euro rose 0.5% to $1.2212The British pound rose 0.5% to $1.4206The Japanese yen rose 0.3% to 108.89 per dollarBondsThe yield on 10-year Treasuries was little changed at 1.64%Germany’s 10-year yield was little changed at -0.11%Britain’s 10-year yield was little changed at 0.86%CommoditiesWest Texas Intermediate crude fell 0.8% to $66 a barrelGold futures were little changedMore stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. Business Reuters 210518 08h39m Payments company Square makes Ireland its first eurozone launch Square, the payments company led by Twitter CEO Jack Dorsey, launched its services in Ireland on Tuesday in its first eurozone foray. The San Francisco-based Square said businesses of all sizes would be able to start using its credit card reader to process payments on mobile devices, as well as the company's other products including invoice management software. Alyssa Henry, the company's global head of business, said Square would launch in more European countries: "We think there is large opportunity across Europe." Business Bloomberg 210518 08h37m Spot Gold Erases Gains as Yields Rebound; Silver Declines (Bloomberg) -- Gold erased gains, falling from a more than three-month as losses ebbed in the dollar and bond yields. Silver slipped from the highest since early February.The yield on 10-year Treasuries was little changed after dropping earlier, denting the appeal of non-interest-bearing gold. The greenback pared losses of as much as 0.5%.“I think the market is pretty long and the bounce in the USD is encouraging a little selling,” said Tai Wong, head of metals derivatives trading at BMO Capital Markets.Bullion, which was dogged by higher bond yields at the start of the year, has staged a second-quarter turnaround as growing inflation concerns and assurances on monetary policy entice investors back to the metal. That recovery was driven by repeated assurances from Federal Reserve officials that they aren’t considering raising rates or scaling back bond buying anytime soon, even as inflationary pressures emerge in commodity markets.Spot gold fell 0.1% to $1,864.63 an ounce at 10:11 a.m. in New York after rising to $1,875.10, the highest since Jan. 29. Silver and platinum also slipped, while palladium was little changed.Investors will look to the minutes from the Federal Reserve’s April meeting due Wednesday for any sign that policy makers may reduce stimulus earlier than expected. Fed Vice Chair Richard Clarida said Monday the economy had not yet reached the threshold to warrant scaling back massive bond purchases, while Dallas Fed President Robert Kaplan said he expects price pressures to ease in 2022.While Morgan Stanley expects the first warning of bond tapering to come in September -- putting pressure back on gold -- the bank said bullion has the potential to stay above $1,700 an ounce through the second half of the year.More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. Business Reuters 210518 08h37m Fisker to supply up to 700 vehicles to UK-based Onto in 2023 Fisker, whose shares were up over 5% at $11.81, will supply Ocean SUV to Onto, which the latter will then offer on a monthly subscription. Fisker had said in December that Canadian auto supplier Magna International Inc would initially manufacture its first vehicle, Ocean SUV, in Europe. Production is on track to start in the fourth quarter of next year, Fisker reiterated on Tuesday, and it will show the final production version in November at the Los Angeles auto show. Business Reuters 210518 08h33m EMERGING MARKETS-Colombian peso surges in catch-up trade, Latam FX muted * Colombian peso nears 1-mth high * Chile's peso recovers from constitution vote shock By Ambar Warrick May 18 (Reuters) - Colombia's peso rose in catch-up trade on Tuesday as dovish signals from the U.S. Federal Reserve buoyed risk assets, while Chile's peso recovered from its worst day in more than four months. Colombia's peso rose 0.8% to a near one-month high after a long weekend, supported by data last week that showed the Colombian economy grew by more than expected in the first quarter. World Bloomberg 210518 08h31m Thailand Said to Plan $22 Billion Borrowing to Fund Covid Relief (Bloomberg) -- Thailand plans to borrow an additional 700 billion baht ($22.3 billion) to fund measures to counter the worst Covid-19 outbreak to hit Southeast Asia’s second-largest economy, people familiar with the matter said.A meeting of the cabinet chaired by Prime Minister Prayuth Chan-Ocha on Tuesday approved the new borrowing plan from the finance ministry, the people said, declining to be identified before a public announcement.The government proposes to spend 400 billion baht of the new borrowing to help various sections of the society affected by the new outbreak, while 270 billion baht will be used to revive the economy, the people said. About 30 billion baht will be set aside to finance medical supplies and vaccines to contain the latest outbreak, they said.The fresh borrowing can be completed before Sept. 30 next year, and is on top of an ongoing 1-trillion baht debt plan authorized by the cabinet last year to fund pandemic relief measures, they said.Thailand’s public debt-to-gross domestic product ratio may rise to 58.6% by September with the additional borrowing, but would still be below the nation’s 60% debt ceiling, the people said. The government will need to issue an emergency law that needs to be endorsed by the king before the public debt management office can begin raising fresh debt, they said.Kulaya Tantitemit, a spokesperson for the Finance Ministry and head of its Fiscal Policy Office, declined to comment. Anucha Burapachaisri, a government spokesman also declined to comment.Thailand, which is grappling with the deadliest Covid wave to hit the nation so far, slashed its growth outlook for this year earlier this week, citing the delay in reopening borders to foreign tourists and slow vaccination.The country’s budget deficit soared almost 17% in the first half of the fiscal year that began in October as revenue tumbled, prompting the government to almost triple borrowing to meet the shortfall.More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. Howell date : 210518 08h19m10s Business Bloomberg 210518 08h15m Jaguar Land Rover Owner Swings to Profit as China Sales Jump (Bloomberg) -- Jaguar Land Rover’s Indian owner reported a pretax profit in the three months through March as a recovery in Chinese demand lifted sales of the automaker’s luxury sports cars and SUVs.Tata Motors Ltd. posted fourth-quarter earnings of 57 billion rupees ($23 million) before tax and one-time items on Tuesday, rebounding from a loss of 65 billion rupees a year earlier. Revenue soared 42% and exceeded estimates.JLR’s improving sales performance is crucial for Mumbai-based Tata as the group’s Indian business is being buffeted by the coronavirus outbreak. Government-imposed lockdowns have shuttered sales outlets and halted factories’ production lines.“While demand remains strong, the supply situation over the next few months is likely to be adversely impacted by disruptions from Covid-19 lockdowns in India and semiconductor shortages worldwide,” Tata said in a statement.Charge TakenThe group booked a 1.5 billion-pound ($2.1 billion) charge initially flagged in February related to JLR’s shift to electric models, though its net loss still narrowed.Tata Motors closed 3.5% higher before the company released earnings. The stock is up 80% this year.Jaguar Land Rover posted a pretax profit of 534 million pounds in the quarter after selling 12% more vehicles. Purchases in China more than doubled while increasing 10% in North America.Chip IssueThe division has since been impacted by a global shortage of semiconductors, halting output at its Castle Bromwich and Halewood factories for a limited period. The company said it’s working with suppliers to resolve the issue and reiterated cash-flow and profit-margin targets.JLR is staging a recovery after wrangling with uncertainty over Brexit and stricter emissions limits in the past few years. Chief Executive Officer Thierry Bollore has outlined plans to cut costs by 2.5 billion pounds and reduce headcount by 2,000 while accelerating an electrification drive.Tata said its own operations will show a “relatively weak” performance in the current quarter as the Covid-19 outbreak hampers production and commodity prices increase. It expects a gradual improvement later in the year.(Updates with JLR earnings, outlook from seventh 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. Business Yahoo Finance Video 210518 08h12m Tesla is the 'biggest short in the market': strategist Investor Michael Burry revealed in a regulatory filing a short position against Elon Musk's Tesla. Ihor Dusaniwsky, S3 Partners Managing Director, joins Yahoo Finance Live to break discuss what's in store for Tesla and outlook for markets. Business Reuters 210518 08h11m Product warranty startup Extend raises $260 million, SoftBank leads funding Extend, a San Francisco tech startup that makes it easier for businesses to offer product warranties, said on Tuesday it raised $260 million in a funding round led by SoftBank Group Corp's Vision Fund 2 that valued the company at over $1 billion. Extend allows companies to add a button to their online markets that gives customers the option to pay extra to protect their purchases, said Woodrow Levin, CEO and Co-founder of Extend. If there is a problem with the product, Extend will handle the claim, in most cases through a customer service chatbot, said Levin. Business Bloomberg 210518 08h10m Brent Slips After Topping $70 For First Time Since March (Bloomberg) -- Oil erased gains with prices struggling to keep up momentum after topping $70 a barrel in London as investors assess an uneven global demand recovery. Futures in London dipped after earlier rising as much as 1.1% on Tuesday, while U.S. benchmark crude also weakened. Brent futures reached the highest since March 8 earlier in the session, though the global benchmark crude hasn’t closed above $70 since May 2019.While a travel rebound in the U.S. and reopenings in Europe boost optimism around strengthening demand in parts of the world, concerns linger around the worsening Covid-19 crisis in India. The South Asian country’s gasoline exports soared 85% in the first half of May from the same period last month, according to Vortexa.Brent at $70 “is a psychological barrier,” said Bart Melek, head of commodity strategy at TD Securities. “The market’s going to need something fundamental happen for prices to break out, and at this point we’re not getting it.”Oil has joined other commodities in a blistering rally this year, with crude prices, which are up more than 35%, emerge as a hedge against inflation. Much of Wall Street is calling for higher prices, with Goldman Sachs Group Inc. talking up the prospects of $80 a barrel crude. At the same time, the Organization of Petroleum Exporting Countries and its allies are boosting supply to meet rebounding demand.Beyond the downturn in headline crude prices, the market’s underlying structure also weakened on Tuesday. The closely watched spreads between the nearest two December contracts softened their backwardation, which is a bullish structure that indicates expectations for an improving supply and demand dynamic.More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. Business Reuters 210518 08h08m Buyers beware as "altcoin" frenzy bruises bitcoin Bitcoin's smaller rivals are eroding its share of the $2 trillion digital currency market. Among the major "altcoins" - as all cryptocurrencies aside from bitcoin are known - some such as ethereum aspire to be the backbone of a future financial system. Others, like Dogecoin, have no such ambitions, and are barely used in payments or business. Business Bloomberg 210518 08h05m U.S. Tech Stocks Rise With Reopenings in Focus: Markets Wrap (Bloomberg) -- U.S. technology stocks climbed on Tuesday as optimism that economic reopenings will boost growth outweighed concern about a pickup in virus cases in parts of Asia.The Nasdaq 100 Index climbed for the third time in four sessions, led by gains in Amazon.com Inc., Alphabet Inc. and Apple Inc. The S&P 500 fluctuated between gains and losses as Walmart Inc. rose the most in eight months on its full-year guidance, offsetting a plunge in AT&T Inc. amid the company’s plan spin off its media operations. Tesla Inc. fell amid a spate of negative headlines, including a collision of a vehicle on autopilot with a police car in Washington state.Stocks have been volatile after touching a record in early May as investors assessed economic growth prospects against a Covid-19 resurgence in countries including India. Minutes from the latest Federal Reserve meeting, due Wednesday, may offer investors clues on inflation pressure and hints of a timeline for tapering stimulus. Fed Vice Chair Richard Clarida said Monday that the weak U.S. jobs report showed the economy had not yet reached the threshold to warrant scaling back asset purchases.“The fact we have the tech stocks rising and taking the lead suggests the market is taking the Fed for its word,” said Fiona Cincotta, senior financial markets analyst at City Index. “That inflation fear which was so dominant last week is starting to ease a bit.”Global investor sentiment is “unambiguously bullish,” Bank of America Corp. strategists led by Michael Hartnett said, citing the firm’s latest fund manager survey. Inflation topped the list of the biggest tail risks, followed by a bond market taper tantrum and asset bubbles, while Covid-19 was only in fourth place.Elsewhere, Bitcoin declined amid volatility spurred by comments from Tesla’s Elon Musk. Coinbase Global Inc. fell after Monday’s drop below the reference price used in its April direct listing.The dollar fell toward a four-month low, while U.S. 10-year Treasuries were little changed. West Texas Intermediate crude fell for the first time in three sessions.Here are some key events this week:The Fed publishes minutes from its April meeting Wednesday, which may provide clues to officials’ views on the recovery and how they define “transitory” when it comes to inflationEIA crude oil inventory report WednesdaySt. Louis Fed President James Bullard and Atlanta Fed President Raphael Bostic to speak at separate events WednesdayIMF Managing Director Kristalina Georgieva and ECB President Christine Lagarde speak at the Vienna Economic Dialogue ThursdayAustralia unemployment rate ThursdayEuro-area finance ministers and central bank chiefs hold an informal meeting. A larger group of EU finance ministers and central bank chiefs will meet May 22These are some of the main moves in markets:StocksThe S&P 500 fell 0.1% as of 10:01 a.m. New York timeThe Nasdaq 100 rose 0.2%The Dow Jones Industrial Average fell 0.3%The Stoxx Europe 600 rose 0.1%The MSCI World index rose 0.4%CurrenciesThe Bloomberg Dollar Spot Index fell 0.3%The euro rose 0.5% to $1.2212The British pound rose 0.4% to $1.4197The Japanese yen rose 0.2% to 108.95 per dollarBondsThe yield on 10-year Treasuries was little changed at 1.65%Germany’s 10-year yield was little changed at -0.11%Britain’s 10-year yield was little changed at 0.86%CommoditiesWest Texas Intermediate crude fell 0.7% to $66 a barrelGold futures were little changedMore stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. World Reuters 210518 07h55m EU to seek Israel-Palestinian peace talks with U.S., Russia, Malta says An emergency European Union video meeting on Tuesday is set to call for a ceasefire between Israel and Palestinian Islamist group Hamas, offer more humanitarian aid and try to relaunch peace talks, Malta's foreign minister said. Malta's Foreign Minister Evarist Bartolo told Reuters that new U.S. President Joe Biden's openness to seek a solution to the decades-old conflict was crucial, "because unless we address the root causes (the violence) will happen again." "I think I'm not being too optimistic (to say) that at a minimum, what will probably come out (of the EU meeting) is the call for a ceasefire, an offer of humanitarian aid, and then seeing how to restart the political process," Bartolo said via video link. Howell date : 210518 07h48m33s Business Reuters 210518 07h40m French broadcasters close ranks with anti-Netflix merger France's two biggest private broadcasters are closing ranks to fend off the meteoric rise of U.S. streaming platforms, hoping the desire for a national champion that can take on global video-on-demand giants will trump domestic antitrust concerns. Announcing their merger on Monday, TF1 and M6 stressed their move was a response to the accelerating challenges from global platforms, saying the deal was critical to ensure the long-term independence of French content creation. A combined TF1 and M6 would, however, hold sway over three-quarters of France's TV advertising market, a threshold likely to trigger alarm bells at the country's antitrust authority. Business Reuters 210518 07h38m CANADA FX DEBT-Canadian dollar notches highest since 2015 as greenback slides * Canadian dollar strengthens 0.3% against the greenback * Loonie touches a 6-year high at 1.2013 * Price of U.S. oil falls 0.2% * Canadian bond yields ease across a flatter curve TORONTO, May 18 (Reuters) - The Canadian dollar climbed to a 6-year high against its U.S. counterpart on Tuesday as the greenback broadly declined and investors awaited inflation data on Wednesday that could offer clues on the Bank of Canada policy outlook. The loonie was trading 0.3% higher at 1.2028 to the greenback, or 83.14 U.S. cents, having touched its strongest level since May 2015 at 1.2013. The currency has been on a tear since the Bank of Canada in April shifted to more hawkish guidance on its interest rate outlook and cut the pace of bond purchases. Business Reuters 210518 07h37m EU proposes "business-friendly" unified tax rulebook for companies The European Union's executive on Tuesday adopted a plan to make the taxation of companies more unified across the bloc's 27 member states, aiming for an equitable and stable business environment to underpin economic growth and employment. The European Commission proposed that certain large companies operating in the EU publish their effective tax rates to ensure greater transparency, and also new anti-tax avoidance measures to tackle the abusive use of shell companies. It said in a statement that its plan will aim to support the EU's post-pandemic economic recovery by addressing the debt-equity bias in the current corporate taxation, which treats debt financing of companies more favourably than equity financing. Business Bloomberg 210518 07h36m Tech Buoys U.S. Stocks on Reopening Outlook: Markets Wrap (Bloomberg) -- Technology shares led U.S. stocks higher on Tuesday as optimism that economic reopenings will boost growth outweighed concern about a pickup in virus cases in parts of Asia. The dollar dipped and oil gained.The Nasdaq 100 Index climbed while the other two main main U.S. equity benchmarks little changed. Amazon.com Inc. and Alphabet Inc. contributed the most to the advance. Walmart Inc. rose after increading its full-year guidance. Tesla Inc. fell amid a spate of negative headlines, including a collision of a vehicle on autopilot with a police car in Washington state.Stocks have been volatile after touching a record in early May as investors assessed economic growth prospects against a Covid-19 resurgence in countries including India. Minutes from the latest Federal Reserve meeting, due Wednesday, may offer investors clues on inflation pressure and hints of a timeline for tapering stimulus. Fed Vice Chair Richard Clarida said Monday that the weak U.S. jobs report showed the economy had not yet reached the threshold to warrant scaling back asset purchases.“The fact we have the tech stocks rising and taking the lead suggests the market is taking the Fed for its word,” said Fiona Cincotta, senior financial markets analyst at City Index. “That inflation fear which was so dominant last week is starting to ease a bit.”Global investor sentiment is “unambiguously bullish,” Bank of America Corp. strategists led by Michael Hartnett said, citing the firm’s latest fund manager survey. Inflation topped the list of the biggest tail risks, followed by a bond market taper tantrum and asset bubbles, while Covid-19 was only in fourth place.Elsewhere, Bitcoin declined amid volatility spurred by comments from Tesla’s Elon Musk. Coinbase Global Inc. fell after Monday’s drop below the reference price used in its April direct listing.The dollar fell toward a four-month low, while U.S. 10-year Treasuries rose. Brent crude at one point topped $70 a barrel in London for the first time since March on signs that reopenings are boosting demand.Here are some key events this week:The Fed publishes minutes from its April meeting Wednesday, which may provide clues to officials’ views on the recovery and how they define “transitory” when it comes to inflationEIA crude oil inventory report WednesdaySt. Louis Fed President James Bullard and Atlanta Fed President Raphael Bostic to speak at separate events WednesdayIMF Managing Director Kristalina Georgieva and ECB President Christine Lagarde speak at the Vienna Economic Dialogue ThursdayAustralia unemployment rate ThursdayEuro-area finance ministers and central bank chiefs hold an informal meeting. A larger group of EU finance ministers and central bank chiefs will meet May 22These are some of the main moves in markets:StocksThe S&P 500 rose 0.1% as of 9:30 a.m. New York timeThe Nasdaq 100 rose 0.3%The Dow Jones Industrial Average rose 0.1%The Stoxx Europe 600 rose 0.3%The MSCI World index rose 0.6%CurrenciesThe Bloomberg Dollar Spot Index fell 0.4%The euro rose 0.5% to $1.2216The British pound rose 0.5% to $1.4206The Japanese yen rose 0.3% to 108.91 per dollarBondsThe yield on 10-year Treasuries was little changed at 1.64%Germany’s 10-year yield was little changed at -0.11%Britain’s 10-year yield was little changed at 0.86%CommoditiesWest Texas Intermediate crude fell 0.4% to $66 a barrelGold futures were little changedMore stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. Business Reuters 210518 07h35m UPDATE 1-Brazilian drugstore Pague Menos in talks to buy rival Extrafarma Brazilian drugstore chain Pague Menos is in talks to acquire rival Extrafarma from industrial holding Ultrapar, according to a securities filing on Tuesday. Reuters reported earlier on Tuesday that Pague Menos had reached a deal to buy Extrafarma for 600 million reais ($114 million), citing sources familiar with the matter. The deal would make Pague Menos Brazil's second biggest drugstore retailer, behind Raia Drogasil SA. It is currently the third-largest player. Business Yahoo Finance 210518 07h33m Stock market news live updates: Stocks trade sideways as technology shares steady Stocks were slightly higher on Tuesday, with the indexes looking to recoup some losses from Monday's session. Technology stocks outperformed, reversing course after lagging a day earlier. Business Reuters 210518 07h28m WRAPUP 1-U.S. housing starts drop sharply; building permits rise modestly Housing starts tumbled 9.5% to a seasonally adjusted annual rate of 1.569 million units last month, the Commerce Department said on Tuesday. Data for March was revised lower to a rate of 1.733 million units, still the highest level since June 2006, from the previously reported 1.739 million units. Economists polled by Reuters had forecast starts would fall to a rate of 1.710 million units in April. Howell date : 210517 21h16m09s Business Bloomberg 210517 20h56m Chinese Firm GDS Is Said to Weigh Buying GLP’s Data Centers (Bloomberg) -- GDS Holdings Ltd. is considering acquiring GLP Pte’s data centers business as the Chinese cloud computing company seeks to expand its digital infrastructure capacity in the world’s second-largest economy, according to people familiar with the matter.GDS, a developer and operator of high-performance data centers across China, is holding preliminary talks with Singapore investment manager GLP over a potential transaction that could value the assets at $8 billion to $10 billion, the people said, asking not to be identified because the deliberations are private. As part of the deal GLP would become a shareholder in Shanghai-based GDS, the people said.Considerations are at an early stage and the companies could decide against pursuing a transaction, the people said. Details including valuation and structure of a deal could change, they said.Representatives for GDS and GLP didn’t respond to phone calls, emails and text messages requesting comment.GDS shares in Hong Kong were up as much as 4.6% following the Bloomberg News report, their highest level in two weeks, giving the company a market value of $14.4 billion.GDS raised $1.9 billion in a Hong Kong secondary listing last year, according to data compiled by Bloomberg, joining a cohort of U.S.-traded Chinese firms seeking to expand their investor bases. Chief Executive Officer William Huang said in a November Bloomberg Television interview that the company plans to use the proceeds primarily to invest in data centers in China, Hong Kong and possibly Southeast Asia. GDS might also look at M&A opportunities in China and beyond, Huang said.GLP has been developing GLP Huailai Internet Data Centre in Hebei province, northern China, with a total investment of about 10 billion yuan ($1.6 billion), according to its website. The facility will offer more than 15,000 cabinets, which can hold about 200,000 servers, once the project is finished.(Updates with share price in fifth 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. World Bloomberg 210517 20h44m Japan GDP Shrinks More Than Feared Amid Virus Restictions (Bloomberg) -- Japan’s recovery stalled last quarter, with the economy shrinking more than analysts expected, as renewed restrictions to contain the coronavirus hit activity, raising the risk of a double-dip recession if the country cannot bring its virus emergency to a swift end.Gross domestic product shrank an annualized 5.1% from the prior quarter in the three months through March, ending a two-quarter streak of double-digit growth, the Cabinet Office reported Tuesday. Economists had forecast an overall contraction of 4.5%.The worse-than-expected result came as businesses unexpectedly cut investment, consumers pulled back and government outlays fell amid a suspension of a travel-promotion campaign to help the ailing tourism industry.Signs of renewed fragility in the economy heighten the risk that the economy could shrink again this quarter, as Prime Minister Yoshihide Suga’s administration struggles to speed up its vaccine rollout and contain virus cases using a targeted approach that attempts to limit damage to the economy.“If the state of emergency is extended, that will certainly raise the odds of a contraction,” said economist Yoshiki Shinke at Dai-Ichi Life Research Institute. “Consumer spending is the biggest missing piece for the economy and it’s hard to predict because it’s very much dependent on the virus situation.”Suga last week added three more prefectures to the latest state of emergency, a move that puts about half of the economy under restrictions that are slightly tighter than the ones in winter, but still less draconian than Europe’s lockdowns. Restaurants and bars in many big cities are now being asked to refrain from serving alcohol in addition to closing early.Failure to end the restrictions at the end of May, as planned, could also fuel concerns over the staging of the Tokyo Olympics. Cancellation of the Games would deal another blow to the economy and raise the likelihood that Suga will be consigned to a long list of short-lived premiers. The country is set to hold national elections by early fall.What Bloomberg’s Economist Says...“In the details of Japan’s deeper-than-expected GDP contraction in 1Q, there was even more bad news -- a surprise drop in private investment and an unexpectedly steep buildup in inventories. These signal weakness in the manufacturing sector -- a rare growth driver amid the virus emergency -- and add to downside risks to the economy in 2Q.--Yuki Masujima, economistTo read the full report, click here.The first-quarter drop in capital investment signals companies may be more cautious about the outlook than earlier thought, according to preliminary data, which is often revised. In recent days, a chorus of business executives have also started to voice concern over what they see as an unacceptably slow vaccine rollout in one of the world’s richest countries.CEOs Criticize Japan’s Slow Vaccine Push, Saying Growth at RiskStrong exports and industrial production, meanwhile, continue to provide a bedrock of support to the economy, even though a rise in imports caused the trade component of the GDP to go negative in the first quarter.Consumers also didn’t retrench as much as economists feared last quarter, a fact that may signal a reservoir of underlying demand that could help power the recovery ahead.The resilience also suggests that Suga’s targeted approach has indeed enabled the economy to fend off the worst of another emergency.“Once the virus situation starts to be more contained and people’s activity becomes more normalized, pent-up demand is likely to emerge,” economy minister and virus czar Yasutoshi Nishimura said after the GDP report was released. But rising infection numbers across the nation indicate that the government hasn’t got the balance right or hasn’t adjusted its restrictions quickly enough to account for new virus strains as infections rise and the logic of staging an Olympics is called into question.Until earlier this year Japan was seen a relatively successful example of virus control with low infection rates and deaths achieved without full lockdown measures. The positive optics have been changing as the country’s lengthy vaccine approval process and its slow rollout of jabs have left the country well behind the U.S, the U.K. and other countries with more aggressive inoculation programs.‘Where Are the Vaccines?’ Japan Public Asks as EU Doses RevealedIn an Asahi Shimbun newspaper poll published Monday, Suga’s support rate had sunk to 33%, close to the 30% mark that starts to put Japanese premiers in jeopardy.Japan has had far fewer virus deaths than other G-7 economies, but its slow vaccine rollout has limited its tools for fighting the outbreak and getting the economy back into gear. So far, only about 3% of the population has received even a single dose.“The best economic measures is to accelerate vaccination,” said Dai-Ichi’s Shinke. “While many other countries consider loosening restrictions, Japan isn’t there yet.”(Adds comment from economy minister.)More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. World Reuters 210517 20h42m Oil extends gains on optimism over U.S., European reopenings Oil prices climbed on Tuesday, extending gains from the previous day, as optimism over the reopenings of the U.S. and European economies outweighed fears of slower fuel demand in Asia due to surging COVID-19 cases and a new wave of restrictions. Brent crude oil futures were up 20 cents, or 0.3%, at $69.66 a barrel by 0231 GMT, while West Texas Intermediate (WTI) was up 19 cents, or 0.3%, at $66.46 a barrel. "The market remained in a tight trading range amid the tug-of-war between worries over spreading coronavirus infection cases in Asia and optimism from economic reopenings in Europe and the United States thanks to vaccinations," said Hiroyuki Kikukawa, general manager of research at Nissan Securities. Business Bloomberg 210517 20h35m Tokyo Stock Exchange Considers Longer Trading Hours, Report Says (Bloomberg) -- The Tokyo Stock Exchange is considering expanding trading hours for cash equities in a move designed to attract retail investors and foreign traders, the Nikkei newspaper reported on Monday, without citing anyone.The bourse, which currently ends trading at 3 p.m. Tokyo time, is considering expanding hours into the afternoon or evening in a change that could be in time for a system renewal in 2024, the report said. An advisory body plans to meet as early as this week and solicit opinions from brokerages and institutional investors, according to the Nikkei.If realized, the move would be the first significant change in trading hours in Tokyo in over a decade. In 2011, the exchange shortened its lunch break by 30 minutes to the current one hour. The Tokyo exchange now trades between 9 a.m. and 3 p.m. local time, with the break between 11:30 a.m. and 12:30 p.m., making the five-hour trading day considerably shorter than many other regional rivals. The bourse is also considering canceling the fixed lunch break, the Nikkei said.A spokesman for Japan Exchange Group Inc., which operates the TSE, said it wasn’t the source of the report.“It’ll be important to have a debate in the securities industry,” Finance Minister Taro Aso said of the report. Longer hours wouldn’t lead to much burden on those offering online services, but “for the many places offering face-to-face services it will impact staffing and opening hours, so it’s not easy to accept.”Online BrokeragesA similar recommendation in 2014 for the exchange to consider an evening session failed to result in changes. The plans were dropped following opposition from traditional brokerages, who said longer hours would increase costs. Some members of an advisory panel at the time also called for a separate afternoon session.But with a growth in online brokerages since that attempt, a proposal could lead to a clash between brokerages offering in-person services and the increasing number of online outlets. One of the goals, according to the report, is to provide opportunities for Japan’s rising number of retail investors, whose ability to trade during work hours is limited. Much will depend on how any changes are actually implemented.“Online brokerages will be in favor, and they’re much bigger than they used to be,” said Hajime Sakai, chief fund manager at Mito Securities Co., who cautioned it took years of preparation to shorten the lunch break. “It’ll take time but it’s going in the direction of expanding hours. That’s the way the times are trending.”Closing PriceA lengthy consultation period is likely before any changes are seriously considered.“If really implemented, this would require a lot of adjustments from both front-end to back,” Takeo Kamai, head of execution services at CLSA Securities Japan Co., said. “We’ll really need to see how much support this idea will get from the street.”With most companies reporting earnings after the close of market, trading on earnings is often done on exchanges overseas, or on proprietary trading systems (PTS) run by securities firms, such as the SBI Holdings-backed Japannext Co.There has been renewed interest in such alternative venues since the TSE’s unprecedented outage last October, which highlighted how centralizing trading in Japan is. In March, Cboe Global Markets Inc. agreed to acquire Chi-X Asia Pacific Holdings Ltd. to expand its reach into Japan and other markets. A growth in rival venues could be a threat to the Tokyo exchange, though recently appointed CEO Hiromi Yamaji has said he welcomed the competition.“Longer trading hours does not increase the amount of money that people have to trade,” said Travis Lundy, an analyst who publishes on Smartkarma. “One of the important functions of a market is its daily settlement mechanism - a closing price. A lot of volume gets traded around that price and a closing auction function is normal. Putting that much later would be seriously inconvenient and serve nobody.”(Updates throughout with comments)More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. Business Reuters 210517 20h26m Asian shares push higher, dollar eases Asian shares rose early on Tuesday, shrugging off worries about an increase in regional coronavirus infections and a subdued session on Wall Street, as inflation jitters helped push gold prices to three-month highs. MSCI's broadest index of Asia-Pacific shares outside Japan rose 1.13% after a mixed session on Monday. Spot gold traded around $1,871.46 an ounce, near a three-and-a-half month high, after the Empire State Manufacturing Survey, produced by the New York Fed, showed the highest prices paid since the series began in 2001. Business Bloomberg 210517 20h22m Brent Oil Heads Toward $70 With Improving Fuel Demand Outlook (Bloomberg) -- Brent oil edged toward $70 a barrel with optimism building about the demand outlook in key regions such as the U.S., even as the coronavirus makes a comeback in parts of Asia.Futures in London climbed for a third session, while New York crude rose from the highest settlement in two years. The largest number of passengers passed through U.S. airports since the pandemic began, a sign of the domestic travel revival that’s boosting fuel consumption. The rebound in America along with China and Europe is offsetting concerns around weaker consumption in India.Oil is up almost 35% this year amid optimism fuel demand will increase as the vaccination drive accelerates across major economies and boosts mobility. The devastating resurgence in India and new outbreaks in regions that had largely contained the virus such as Taiwan, however, are a reminder that the recovery is going to be uneven and bumpy.“The market is clearly focused on U.S., Europe and China,” said Jeffrey Halley, a senior market analyst at Oanda Asia Pacific. Brent could climb to $72 a barrel quite quickly once it gets through strong resistance at $70, he added.The prompt timespread for Brent was 30 cents a barrel in backwardation -- a bullish structure were near-dated contracts are more expensive than later-dated ones. That compares with 18 cents a week earlier.Passengers checking in through security at U.S. airports surged to 1.85 million on Sunday, the highest since early March 2020, according to Transportation Security Administration data. The flurry of travelers making their way through terminals has steadily climbed for the past month and is now only about 30% lower than levels the TSA saw at the same time in 2019.A weaker U.S. dollar is also boosting the appeal of commodities such as oil priced in the currency. The Bloomberg dollar spot index was lower for a fourth session.More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. Business Bloomberg 210517 20h21m Central Banks Keep Lid on Rate Bets as Commodity Prices Soar (Bloomberg) -- The surge in commodities prices is failing to trigger some of the traditional responses in bonds and currencies.Unlike recent commodities rallies in 2008 and 2011, yields on Treasuries and currencies of major exporters like Australia have barely budged. Likewise, the Federal Reserve’s favored measure of inflation expectations has disconnected from moves in raw materials.The biggest buffer: Central bank credibility. Led by the Federal Reserve, policy makers have consistently doubled down on lower-for-longer rates and projections for “transitory” inflation. That’s left investors wary to bet against commitments to keep policy loose for the foreseeable future.“The big change this time around is central bank policy,” said Kerry Craig, global market strategist at JPMorgan Asset Management in Melbourne. Ultra-easy monetary policy is now “weighing down currencies that would have naturally risen a lot more during a cycle where commodity prices are rising.”The Australian and New Zealand dollars -- two major currencies whose fates usually rely heavily on trends in commodities consumed by China’s booming economy -- are indisputable laggards. Each has increased less than 0.3% over the past three months.The Canadian dollar, meanwhile, has surged more than 5% as the central bank signaled it may dial back stimulus. The loonie’s rapid rise could give way to pressure on officials to slow development and curb capital inflows, as is usually the case during commodities booms in Canada.Last week, both the U.S. consumer and producer price index reports surprised to the upside, adding fuel to the global inflation debate on the heels of strong Chinese producer price data. Yet the market reaction was relatively muted after the PPI figures -- with 5-year and 10-year yields easing alongside a weaker greenback.The Fed’s own new “common inflation expectations” gauge, which aggregates a range of such measures, is hovering around 2%, a level that officials want to see overshot for some time.Meanwhile, prices have accelerated for materials as disparate as copper, cotton, rubber and lumber, as well as semiconductors, amid supply disruptions and surging demand.The disparity is a sign of the times amid an evolution -- perhaps revolution -- of central banking. The Fed’s commitment to run the economy hot has rattled markets in part because it means abandoning what has long been a core of their strategy: to act preemptively to curb inflation.In this brave new world, market participants are still grappling with whether to trust that officials will act before price surges get out of control and do more harm than good -- balanced against the full-employment mandate.That message is getting through to traders of the Australian and New Zealand currencies, while for others, hints of monetary policy tightening are giving reason to pile in.“The Bank of Canada and Norges Bank are the only central banks in the developed world to give an unambiguous signal that they’re contemplating withdrawing monetary accommodation,” said Stephen Miller, Sydney-based investment consultant at GSFM, a unit of Canada’s CI Financial Corp. “The RBA has been so aggressively beating the drum on keeping the pedal to the metal that it’s worked in terms of keeping the Aussie lower despite iron ore prices soaring.”A closer look at breakeven rates offers further evidence that investors largely aren’t acting on any inflation worries. The U.S. 10-year breakeven, which has jumped to an eight-year high, isn’t sending a clear runaway-inflation message when viewed against long-term trends.If potential for runaway inflation were the trigger, the spot and forward breakeven curves would be upward-sloping, Cornerstone Macro analysts, led by ex-Fed official Roberto Perli, said in a May 11 report. Yet both are inverted, implying a market bet that inflation is temporary.To be sure, some of the usual correlations have broken down due to other pandemic-related worries. The Philippine peso, which usually moves in inverse with oil prices, is relatively stable given that inflation is damped by weak economic growth. That relationship underscores the central banking mantra these days that growth and employment should remain a greater focus than prices.Looking ahead, persistence in materials prices and further hints of wage gains could start to sway the Fed’s message -- and build momentum for investors to respond.“Recent record highs in metal prices are probably just the beginning,” Howie Lee, an economist at Oversea-Chinese Banking Corp., said in a May 11 report. Chinese demand and green-economy investment should keep iron ore and copper, especially, on the upswing, he said.(Updates currency data in fifth, sixth paragraphs and second chart.)More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. World Bloomberg 210517 20h18m Argentina Halts Beef Exports for 30 Days to Contain Prices (Bloomberg) -- Argentina’s government is limiting exports of beef, a staple in the country, in the latest unorthodox move to try to contain runaway inflation that’s approaching 50% annually.President Alberto Fernandez told a key beef export association that they won’t be allowed to sell the product abroad for 30 days, according to a Production Ministry statement released late Monday. In that period, the government will determine a set of emergency measures for the sector.The measure shows that the government is willing to sacrifice much-needed dollars from exports to appease local consumers ahead of a key midterm election later this year. The country’s beef exports in 2020 amounted to roughly $3 billion, but the government may be more focused on the political cost of falling domestic consumption.“The president expressed his concern over the sustained growth in domestic beef prices over the last few months,” according to the statement. Discussion at the meeting also included “possible steps to restrict speculative practices” and fiscal evasion. Some of the measures will be adopted over coming days.Fernandez added that the 30-day period could be shortened if the implementation of the measures leads to “positive results,” the note added.Read more: Argentina Inflation Rose Faster Than Expected Again in AprilArgentine beef exports have been surging for four years and reached a record in the first two months of 2021, according to beef group Ciccra. The suspension resembles similar policy decisions during 2003-2015 under the presidencies of Nestor Kirchner and his successor, Cristina Fernandez de Kirchner, which led cattle numbers to plunge and the country losing market share in the international market.The government last month formalized a registry to ensure domestic supplies of beef at accessible prices as well as monitor shipments and supplies at home.Not all beef cuts may be included in the resolution, which has not yet been published, according to a person with knowledge of the matter. The story was first reported by local newspaper La Nacion.(Updates with government statement in 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. Howell date : 210517 19h15m33s U.S. Reuters 210517 19h03m UPDATE 1-Arson suspect arrested in wildfire burning in hills of western Los Angeles Authorities arrested an arson suspect in a Los Angeles fire that forced evacuation orders for 1,000 people as 540 firefighters worked to contain the blaze in city's western hills, officials said on Monday. Helicopters dropped water on the fire while firefighters on the ground worked the steep hills where at least 1,325 acres (536 hectares) had burned near the Pacific Palisades and Topanga Canyon areas, officials said. Mandatory evacuations were ordered for an area near Topanga Canyon with other residents on standby to leave. World Reuters 210517 18h58m Thailand reports daily record of 35 new COVID-19 deaths Thailand reported on Tuesday a daily record of 35 new coronavirus deaths, as the Southeast Asian country struggles with a third wave of infections. The country also reported 2,473 new infections, including 680 cases among prisoners. The new cases bring the country's total infections to 113,555 and fatalities to 649 since the pandemic started last year. Business Reuters 210517 18h49m FOREX-Dollar under pressure as yield support fades * Graphic: World FX rates https://tmsnrt.rs/2RBWI5E * Fed speakers expected to repeat that rates will remain low * Dollar loses ground as Treasury yields stall * Yen falls on crosses as economic concerns grow By Stanley White TOKYO, May 18 (Reuters) - The dollar teetered near multi-month lows against European currencies on Tuesday as Treasury yields stall due to renewed expectations that U.S. interest rates will remain low for an extended period. Dallas Federal Reserve President Robert Kaplan on Monday reiterated his view that he does not expect interest rates to rise until next year, causing a further decline in bets that inflationary pressure could force the Fed to act sooner. World Reuters 210517 18h48m UPDATE 1-Australia's Woodside Petroleum to exit Canada's Kitimat LNG project Australia's Woodside Petroleum Ltd said on Tuesday it would sell its 50% interest in the proposed Kitimat liquefied natural gas (LNG) development project in Canada, and expect a hit of about $40 million to $60 million in full-year net profit as a result. The exit would comprise the sale or wind-up of agreements and assets on the Pacific Trail Pipeline route and at the site for the proposed facility, Woodside Petroleum said. The proposed project's operator Chevron Canada, a unit of U.S. oil and gas major Chevron, had already decided to divest its 50% interest in December 2019, and stopped feasibility work at the site in March this year. Business Bloomberg 210517 18h38m Asia Stocks, U.S. Futures Climb; Dollar Steady: Markets Wrap (Bloomberg) -- Asian stocks opened firmer Tuesday as investors weighed a pick-up in virus cases in the region against the pace of economic growth as economies reopen. U.S. futures rose.Benchmarks climbed in Japan, Australia and South Korea. Nasdaq 100 futures outperformed. Earlier, technology and communication services stocks led the benchmark S&P 500 lower, while energy shares rose. Apple Inc. and Microsoft Corp. weighed on the tech-heavy Nasdaq 100. The dollar and Treasuries were stable after retreating. Oil held an advance to a two-year high as rising optimism around a demand recovery in regions such as the U.S. offset Covid-19 flare-ups in parts of Asia.Investors this week will parse the minutes from the Federal Open Market Committee’s latest meeting for any discussion about accelerating price pressures, and hints of a timeline for reducing asset purchases.Federal Reserve Vice Chair Richard Clarida said during a webinar that the weaker-than-expected April payroll report shows “we have not made substantial further progress” on the central bank’s goals for employment and inflation laid out as thresholds to begin scaling back the central bank’s massive monthly bond purchases.“Hotter inflation has materialized and market volatility is rising as the economic restart gathers pace,” according to BlackRock Investment Institute strategists lead by Jean Boivin. “This is playing out in line with our view that the economy is in a ‘restart.’ We prefer to look through any volatility and see a later ‘lift-off’ from zero rates than markets expect. This means higher-than-expected inflation in the medium term, and underpins our pro-risk stance.”Meanwhile, Hong Kong added Singapore to its list of high-risk nations as cases rose in the city-state, with the highly transmissible strain of Covid-19 that surfaced in India becoming more prominent among the growing number of unlinked cases. The U.S. has recorded its lowest number of new coronavirus infections since the early days of the pandemic.Elsewhere, Bitcoin fluctuated following a volatile weekend that saw comments from Tesla Inc.’s Elon Musk whipsaw prices. Coinbase Global Inc. fell to a record low and below the reference price used in its April direct listing. Gold traded near its highest in almost four months.Here are some key events this week:Reserve Bank of Australia publishes minutes of its latest meeting TuesdayThe Fed publishes minutes from its April meeting Wednesday, which may provide clues to officials’ views on the recovery and how they define “transitory” when it comes to inflationThese are some of the main moves in markets:StocksS&P 500 futures rose 0.2% as of 9:18 a.m. in Tokyo. The S&P 500 fell 0.3%Nasdaq 100 futures gained 0.3%. The Nasdaq 100 fell 0.6%Topix index rose 0.8%Australia’s S&P/ASX 200 Index rose 0.6%Kospi index climbed 0.8%CurrenciesThe yen traded at 109.24 per dollarThe offshore yuan was at 6.4416 per dollarThe Bloomberg Dollar Spot Index was little changedThe euro was at $1.2159BondsThe yield on 10-year Treasuries was at 1.65%Australia’s 10-year bond yield rose five basis points to 1.80%CommoditiesWest Texas Intermediate crude rose 0.3% to $66.47 a barrelGold rose 0.1% to $1,869.45 More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. Business Bloomberg 210517 18h35m Burry of ‘Big Short’ Fame Places Big Bet Against Musk, Tesla (Bloomberg) -- Michael Burry, the investor who rose to fame for making billions off bets against mortgage securities during the financial crisis, has placed a sizable wager against Elon Musk’s Tesla Inc.Burry’s Scion Asset Management owned bearish puts against 800,100 shares of the electric-car maker as of March 31, according to a regulatory filing Monday. The puts give Scion the right to sell Tesla shares on or before an unidentified date in the future.Tesla shares closed at an all-time high of $883.09 on Jan. 26, after a yearlong rally jolted the stock higher by almost 700%. It had lost a quarter of its value by the end of March, and is down 35% from its peak as of the close Monday.The bet against Tesla isn’t Burry’s first. He said in a since-deleted tweet in early December that his firm was short shares of the EV maker. The hedge fund manager also advised Musk to sell shares to raise capital while his stock, then on a torrid run from the pandemic lows, was at what Burry called “ridiculous” levels.Tesla earned record profit in the first quarter, sidestepped an industry chip shortage, improved its manufacturing and even made money off Bitcoin, its earnings results showed in late April. Yet shares fell in a sign of the lofty expectations the company now contends with. Among the quibbles from analysts: Tesla didn’t offer a specific estimate for vehicle deliveries in 2021.It’s impossible to know when Burry’s Scion made the bets against Tesla, at what price the puts are in the money and how much the firm paid for them. The filing, a quarterly rundown of holdings required of hedge funds of a certain size, said the position was worth $534 million -- an amount likely derived by multiplying Tesla’s share price on March 31 by the number of shares Scion bet against.“Tesla is down 14% since the end of the first quarter, so on balance, these puts have been profitable, though it’s impossible to know for sure,” said Steve Sosnick, chief strategist at Interactive Brokers LLC. “He’s expressing the type of skepticism that many have on Tesla. I would have to believe that he accumulated various Tesla options at various strikes, and some of them probably have expired.” Burry was played by Christian Bale in the film version of Michael Lewis’s best-selling account of the 2008 financial crisis, “The Big Short.”(Updates with quote in seventh 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. Howell date : 210517 18h14m57s Business Reuters 210517 17h59m UPDATE 1-Investors increase Exxon holdings as activists' pressure push shares higher A number of prominent investment managers were so convinced newcomer activist investor Engine No. 1 could successfully push for changes at Exxon Mobil Corp that they added to their holdings in the oil company in the first months of 2021, according to interviews and regulatory filings. Fidelity Management & Research Company, which oversees nearly $5 trillion in retirement and college savings accounts, as well as hedge funds Millennium Management and Laurion Capital Management made sizable purchases during the first quarter, regulatory filings show. Hedge fund D.E. Shaw, which was also engaging with Exxon management, also increased its holdings, the filings show. Business Reuters 210517 17h47m AT&T-Discovery deal puts pressure on streaming video rivals AT&T Inc's $43 billion deal on Monday to spin out its WarnerMedia business and combine it with Discovery Inc was among the most ambitious yet in the streaming era. The agreement adds Discovery's 15 million subscribers to the 64 million subscribers that WarnerMedia's HBO Max has globally. The bigger scale of the combined company gives it a fighting chance against Netflix Inc and Walt Disney Co., which have 207.6 million and 103.6 million subscribers, respectively. Business Bloomberg 210517 17h28m Burry of ‘Big Short’ Fame Places Large Bet Against Musk, Tesla (Bloomberg) -- Michael Burry, the investor who rose to fame for making in billions off bets against mortgage securities during the financial crisis, has placed a sizable wager against Elon Musk’s Tesla Inc.Burry’s Scion Asset Management owned bearish puts against 800,100 shares of the electric-car maker as of March 31, according to a regulatory filing Monday. The puts give Scion the right to sell Tesla shares on or before an unidentified date in the future.Tesla shares closed at an all-time high of $883.09 on Jan. 26, after a yearlong rally jolted the stock higher by almost 700%. It had lost a quarter of its value by the end of March, and is down 35% from its peak as of the close Monday.The bet against Tesla isn’t Burry’s first. He said in a since-deleted tweet in early December that his firm was short shares of the EV maker. The hedge fund manager also advised Musk to sell shares to raise capital while his stock, then on a torrid run from the pandemic lows, was at what Burry called “ridiculous” levels.Tesla earned record profit in the first quarter, sidestepped an industry chip shortage, improved its manufacturing and even made money off Bitcoin, its earnings results showed in late April. Yet shares fell in a sign of the lofty expectations the company now contends with. Among the quibbles from analysts: Tesla didn’t offer a specific estimate for vehicle deliveries in 2021.It’s impossible to know when Burry’s Scion made the bets against Tesla, at what price the puts are in the money and how much the firm paid for them. The filing, a quarterly rundown of holdings required of hedge funds of a certain size, said the position was worth $534 million -- an amount likely derived by multiplying Tesla’s share price on March 31 by the number of shares Scion bet against.Burry was played by Christian Bale in the film version of Michael Lewis’s best-selling account of the 2008 financial crisis, “The Big Short.”More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. Business Reuters 210517 17h19m U.S. airlines add COVID-tested flights to Italy as country reopens to tourists United Airlines, Delta Air Lines and American Airlines are adding flights to Italy with protocols for coronavirus testing as the country opens to leisure travelers from the United States for the first time in more than a year. On Sunday, the Italian government eased a number of COVID-19 travel restrictions and requirements as it looks to boost summer tourism, including scrapping a mandatory quarantine for visitors from certain countries as long as they test negative for COVID-19. As a result, United on Monday joined Delta and American in announcing additional COVID-tested flights to the popular European travel spot, which had been closed to tourists from countries including the United States, Canada and Japan. Business Bloomberg 210517 17h15m Asia Stocks Set for Muted Open; Dollar Steady: Markets Wrap (Bloomberg) -- Asian stocks look poised for a muted open as virus cases in the region pick up and concerns about the economic outlook weighed on their U.S. peers.Futures were little changed in Japan, Australia and Hong Kong. U.S. contracts were steady as they opened in Asia. Technology and communication services stocks led the benchmark S&P 500 lower, while energy shares rose. Apple Inc. and Microsoft Corp. weighed on the tech-heavy Nasdaq 100. Benchmark Treasuries retreated. The dollar stabilized after dropping for a third consecutive day against its peers.Oil held an advance to a two-year high as rising optimism around a demand recovery in regions such as the U.S. offset Covid-19 flare-ups in parts of Asia.Investors this week will parse the minutes from the Federal Open Market Committee’s latest meeting for any discussion about accelerating price pressures, and hints of a timeline for reducing asset purchases.Federal Reserve Vice Chair Richard Clarida said during a webinar that the weaker-than-expected April payroll report shows “we have not made substantial further progress” on the central bank’s goals for employment and inflation laid out as thresholds to begin scaling back the central bank’s massive monthly bond purchases.“Investors should brace for further bouts of volatility, driven by inflation data along with other risks, such as setbacks in curbing the pandemic,” wrote UBS Global Wealth Management’s Chief Investment Officer Mark Haefele. “But we don’t see inflation concerns ending the rally in stocks, which we expect to be led by cyclical parts of the market as the global economic reopening broadens.”Meanwhile, Hong Kong added Singapore to its list of high-risk nations as cases rose in the city-state, with the highly transmissible strain of Covid-19 that surfaced in India becoming more prominent among the growing number of unlinked cases. The U.S. has recorded its lowest number of new coronavirus infections since the early days of the pandemic.Elsewhere, Bitcoin fluctuated following a volatile weekend that saw comments from Tesla Inc.’s Elon Musk whipsaw prices. Coinbase Global Inc. fell to a record low and below the reference price used in its April direct listing. Gold traded near its highest in almost four months.Here are some key events this week:Reserve Bank of Australia publishes minutes of its latest meeting TuesdayThe Fed publishes minutes from its April meeting Wednesday, which may provide clues to officials’ views on the recovery and how they define “transitory” when it comes to inflationThese are some of the main moves in markets:StocksS&P 500 futures were little changed as of 8:04 a.m. in Tokyo. The S&P 500 fell 0.3%Nasdaq 100 futures were flat. The Nasdaq 100 fell 0.6%Nikkei 225 futures fell 0.1%Australia’s S&P/ASX 200 Index futures rose 0.2%Hong Kong’s Hang Seng Index futures rose 0.2%CurrenciesThe yen traded at 109.19 per dollarThe offshore yuan was at 6.4422 per dollarThe Bloomberg Dollar Spot Index was little changedThe euro was at $1.2154BondsThe yield on 10-year Treasuries advanced two basis points to 1.64%Australia’s 10-year bond yield rose four basis points to 1.79%CommoditiesWest Texas Intermediate crude traded at $66.27 a barrelGold was at $1,865.88 after increasing 1.3%More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. Business Howell date : 210517 18h04m33s Business Reuters 210517 17h47m AT&T-Discovery deal puts pressure on streaming video rivals AT&T Inc's $43 billion deal on Monday to spin out its WarnerMedia business and combine it with Discovery Inc was among the most ambitious yet in the streaming era. The agreement adds Discovery's 15 million subscribers to the 64 million subscribers that WarnerMedia's HBO Max has globally. The bigger scale of the combined company gives it a fighting chance against Netflix Inc and Walt Disney Co., which have 207.6 million and 103.6 million subscribers, respectively. Business Bloomberg 210517 17h28m Burry of ‘Big Short’ Fame Places Large Bet Against Musk, Tesla (Bloomberg) -- Michael Burry, the investor who rose to fame for making in billions off bets against mortgage securities during the financial crisis, has placed a sizable wager against Elon Musk’s Tesla Inc.Burry’s Scion Asset Management owned bearish puts against 800,100 shares of the electric-car maker as of March 31, according to a regulatory filing Monday. The puts give Scion the right to sell Tesla shares on or before an unidentified date in the future.Tesla shares closed at an all-time high of $883.09 on Jan. 26, after a yearlong rally jolted the stock higher by almost 700%. It had lost a quarter of its value by the end of March, and is down 35% from its peak as of the close Monday.The bet against Tesla isn’t Burry’s first. He said in a since-deleted tweet in early December that his firm was short shares of the EV maker. The hedge fund manager also advised Musk to sell shares to raise capital while his stock, then on a torrid run from the pandemic lows, was at what Burry called “ridiculous” levels.Tesla earned record profit in the first quarter, sidestepped an industry chip shortage, improved its manufacturing and even made money off Bitcoin, its earnings results showed in late April. Yet shares fell in a sign of the lofty expectations the company now contends with. Among the quibbles from analysts: Tesla didn’t offer a specific estimate for vehicle deliveries in 2021.It’s impossible to know when Burry’s Scion made the bets against Tesla, at what price the puts are in the money and how much the firm paid for them. The filing, a quarterly rundown of holdings required of hedge funds of a certain size, said the position was worth $534 million -- an amount likely derived by multiplying Tesla’s share price on March 31 by the number of shares Scion bet against.Burry was played by Christian Bale in the film version of Michael Lewis’s best-selling account of the 2008 financial crisis, “The Big Short.”More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. Business Reuters 210517 17h20m U.S. airlines add COVID-tested flights to Italy as country reopens to tourists United Airlines, Delta Air Lines and American Airlines are adding flights to Italy with protocols for coronavirus testing as the country opens to leisure travelers from the United States for the first time in more than a year. On Sunday, the Italian government eased a number of COVID-19 travel restrictions and requirements as it looks to boost summer tourism, including scrapping a mandatory quarantine for visitors from certain countries as long as they test negative for COVID-19. As a result, United on Monday joined Delta and American in announcing additional COVID-tested flights to the popular European travel spot, which had been closed to tourists from countries including the United States, Canada and Japan. Business Bloomberg 210517 17h15m Asia Stocks Set for Muted Open; Dollar Steady: Markets Wrap (Bloomberg) -- Asian stocks look poised for a muted open as virus cases in the region pick up and concerns about the economic outlook weighed on their U.S. peers.Futures were little changed in Japan, Australia and Hong Kong. U.S. contracts were steady as they opened in Asia. Technology and communication services stocks led the benchmark S&P 500 lower, while energy shares rose. Apple Inc. and Microsoft Corp. weighed on the tech-heavy Nasdaq 100. Benchmark Treasuries retreated. The dollar stabilized after dropping for a third consecutive day against its peers.Oil held an advance to a two-year high as rising optimism around a demand recovery in regions such as the U.S. offset Covid-19 flare-ups in parts of Asia.Investors this week will parse the minutes from the Federal Open Market Committee’s latest meeting for any discussion about accelerating price pressures, and hints of a timeline for reducing asset purchases.Federal Reserve Vice Chair Richard Clarida said during a webinar that the weaker-than-expected April payroll report shows “we have not made substantial further progress” on the central bank’s goals for employment and inflation laid out as thresholds to begin scaling back the central bank’s massive monthly bond purchases.“Investors should brace for further bouts of volatility, driven by inflation data along with other risks, such as setbacks in curbing the pandemic,” wrote UBS Global Wealth Management’s Chief Investment Officer Mark Haefele. “But we don’t see inflation concerns ending the rally in stocks, which we expect to be led by cyclical parts of the market as the global economic reopening broadens.”Meanwhile, Hong Kong added Singapore to its list of high-risk nations as cases rose in the city-state, with the highly transmissible strain of Covid-19 that surfaced in India becoming more prominent among the growing number of unlinked cases. The U.S. has recorded its lowest number of new coronavirus infections since the early days of the pandemic.Elsewhere, Bitcoin fluctuated following a volatile weekend that saw comments from Tesla Inc.’s Elon Musk whipsaw prices. Coinbase Global Inc. fell to a record low and below the reference price used in its April direct listing. Gold traded near its highest in almost four months.Here are some key events this week:Reserve Bank of Australia publishes minutes of its latest meeting TuesdayThe Fed publishes minutes from its April meeting Wednesday, which may provide clues to officials’ views on the recovery and how they define “transitory” when it comes to inflationThese are some of the main moves in markets:StocksS&P 500 futures were little changed as of 8:04 a.m. in Tokyo. The S&P 500 fell 0.3%Nasdaq 100 futures were flat. The Nasdaq 100 fell 0.6%Nikkei 225 futures fell 0.1%Australia’s S&P/ASX 200 Index futures rose 0.2%Hong Kong’s Hang Seng Index futures rose 0.2%CurrenciesThe yen traded at 109.19 per dollarThe offshore yuan was at 6.4422 per dollarThe Bloomberg Dollar Spot Index was little changedThe euro was at $1.2154BondsThe yield on 10-year Treasuries advanced two basis points to 1.64%Australia’s 10-year bond yield rose four basis points to 1.79%CommoditiesWest Texas Intermediate crude traded at $66.27 a barrelGold was at $1,865.88 after increasing 1.3%More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. Business Reuters 210517 17h08m California regulator reviews Tesla's self-driving claims A California regulator said on Monday it is reviewing whether Tesla Inc violated regulations by falsely promoting its advanced driver-assistance systems as being "full self-driving." Tesla's driver assistant features, which it describes as "Autopilot" or "full self-driving" are under growing scrutiny following a series of accidents and online videos of Tesla cars driving with no one in the driver's seat. Tesla charges $10,000 for its semi-automated features such as lane changing and parking assistance under its full self-driving (FSD) software. Business Howell date : 210517 17h03m57s Politics Reuters 210517 16h43m U.S. Senate votes to open debate on China tech bill The U.S. Senate voted 86-11 Monday to open debate on a measure authorizing more than $110 billion for basic and advanced technology research over five years in the face of rising competitive pressure from China. The Endless Frontier Act would authorize most of the money, $100 billion, to invest in basic and advanced research, commercialization of the research, and education and training programs in key technology areas. Senate Democratic Leader Chuck Schumer said the Senate will debate the bill for a week or two beginning on Tuesday, and called it a "once-in-a-generation investment in American science and American technology." Politics Reuters 210517 16h28m U.S. Senate Republicans readying new infrastructure proposal U.S. Republicans are expected to unveil a new infrastructure proposal as early as Tuesday as optimism grows about a possible bipartisan deal that would cover a fraction of President Joe Biden's $2.3 trillion infrastructure plan. Senator Shelley Moore Capito, who is leading the Republican infrastructure drive, told reporters on Monday that she expected Republicans to unveil a new counter-proposal to Biden's sweeping plan sometime early this week. Business Yahoo Finance 210517 16h16m Stock market news live updates: Stock futures edge higher as tech shares steady Stock futures traded slightly higher Monday evening after falling during the regular session, with technology stocks underperforming and dragging the Nasdaq lower as inflation concerns persisted. World Bloomberg 210517 16h10m World’s Oranges, Coffee at Risk as Brazil Runs Out of Water (Bloomberg) -- Brazil, the world’s biggest exporter of coffee, sugar and orange juice, just had a rainy season that brought hardly any rain.Soils are parched and river levels are low in the nation’s Center-South region, a powerhouse of agricultural output. The drought is so severe that farmers are worried they’ll run out of the water reserves that help keep crops alive over the next several months, the country’s dry season.Mauricio Pinheiro, 59, started irrigating his arabica-coffee crops in March, two months earlier than normal, after his 53-hectare (131-acre) plantation got less than half of the rain it needed. He’s using so much water for the plants that there isn’t enough left for his home. In order to keep the showers and faucets running, he’s had to search for another well.“My irrigation reservoir is drying up now -- that usually happens in August,” said Pinheiro, who lives in Pedregulho in the Alta Mogiana region, in Sao Paulo state. “I’m really concerned about running out of water in the coming months.”The prospect of withering orange trees and coffee plants is coming at a time when agricultural crops are rallying to multiyear highs, which has fanned fears of food inflation. Higher food costs may exacerbate hunger, a problem around the globe that the Covid-19 pandemic has made more acute. Coffee and raw-sugar contracts on the ICE Futures exchange in New York have already touched four-year highs.If even irrigated areas can’t get enough water, Brazil’s coffee and orange output may decline for a second year in a row. Brazil’s current orange crop shrunk 31% from the previous season, the most in 33 years, and production of arabica coffee, the high-end kind used by chains like Starbucks Corp., is also dropping sharply.Rainfall was disastrously low for many areas in Sao Paulo and Minas Gerais from January to April, said John Corbett, Chief Executive Officer at aWhere Inc. The worst hit areas received less than half of normal precipitation, at a critical time when coffee plants need moisture for the beans to grow. It is also a period when the soil stores water to cope with the dry season.That came on top of adverse drier-than-normal conditions in some parts last year, notably in Sao Paulo and Parana, said Paul Markert, meteorologist for Maxar Technologies Inc. in Maryland.While a dry spell is typical for this time of year in Brazil, it’s expected to last longer than usual, adding to concerns. Regular rains will return to the region between October and November, instead of September, said Celso Oliveira, a meteorologist at Somar Meteorologia.About 30% of Brazil’s orange crop and 15% of arabica coffee fields are irrigated.“The levels of rivers and lakes has been very concerning,” said Regis Ricco, director at Minas Gerais-based RR Consultoria Rural.Francisco Sergio de Assis, a coffee grower in Monte Carmelo, a municipality in the Cerrado region of Minas Gerais, started irrigating his fields a month early, and doesn’t think his water reservoirs will last if it doesn’t rain by September.The situation is becoming critical for orange groves. Emerson Fachini, an orange farmer who cultivates 45 hectares in Palestina municipality in Sao Paulo state, said he’s had irrigation systems turned on for most of the time since January.“Water reservoirs are drying up, depleted just ahead of the dry season,” Gilberto Tozatti, of Sao Paulo-based GCONCI-Group Citrus Consulting, said by phone. “The situation is affecting most of Sao Paulo state and still harming next season’s crop.”(Updates with more details on rainfall in starting in seventh 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. Howell date : 210517 16h03m20s World Reuters 210517 15h51m UPDATE 1-U.S., Canadian trade chiefs air concerns ahead of USMCA trade deal meeting U.S. Trade Representative Katherine Tai discussed a range of trade issues with Canadian Trade Minister Mary Ng on Monday and emphasized the need for Canada to implement new North American trade deal commitments on dairy and e-commerce shipments, her office said in a statement. In a virtual meeting on the eve of the first meeting of the U.S.-Mexico Canada Agreement Free Trade Commission, Tai also raised concerns about Canada's recently proposed digital services tax, USTR said. A statement from Canada's trade ministry said Ng also raised concerns about U.S. trade policies but the two agreed on the need to strengthen North American supply chains, collaborate on COVID-19 recovery and implement the USMCA's labor rights provisions. Business Reuters 210517 15h46m GLOBAL MARKETS-Stocks fall as tech shares weigh; gold rises to more than 3-month high Stock indexes edged lower globally on Monday, with technology shares weighing the most on the benchmark U.S. S&P 500 index, while gold prices hit their highest in more than three months as investors sought safety. U.S. Treasury yields, however, traded little changed even after a report showing the highest prices ever paid in a May manufacturing survey for New York State. The Empire State Manufacturing Survey, produced by the New York Fed, showed the prices paid index rose to a record 83.5, the highest since the data series began in 2001, said Tom Simons, money market economist at Jefferies & Co. Business Bloomberg 210517 15h35m Berkshire Exits Synchrony Bet, Adds Stake in Broker Aon (Bloomberg) -- Warren Buffett’s Berkshire Hathaway Inc. exited a bet on Synchrony Financial during the first quarter as the company continued to pare back its investments in financial firms.Berkshire reported Monday that it no longer held any shares in Synchrony, a bet that had totaled nearly $699 million at year-end, and trimmed its Wells Fargo & Co. holding to just over 675,000 shares as of March 31. It added shares in insurance broker Aon Plc, which is seeking to close a deal with rival Willis Towers Watson Plc.Buffett’s company has spent the last year revamping its holdings in financial firms, sticking by a massive stake in Bank of America Corp. valued at $39.1 billion, while exiting investments in JPMorgan Chase & Co. and Goldman Sachs Group Inc. A more than three-decade investment in Wells Fargo, which once ranked as the company’s largest common stock bet, has been slowly disappearing in recent years and totaled just $26.4 million at the end of the first quarter.Meanwhile, Berkshire has dug even deeper into the insurance-brokerage industry. The bet on Aon, disclosed in a quarterly filing, comes just months after Berkshire revealed a stake in its rival Marsh McLennan. Aon and Willis Towers Watson have agreed to sell some assets to help ease regulatory concerns around their proposed combination. The Aon holding was valued at about $943 million at the end of the first quarter.In February, Berkshire disclosed three bets, including the Marsh McLennan stake, that it had been building up in secret. The company then spent the first quarter taking those bets in different directions, ramping up its stake in Marsh McLennan and Verizon Communications Inc. while cutting a Chevron Corp. holding roughly in half.Buffett and two of his key deputies, Todd Combs and Ted Weschler, oversee investments for the conglomerate’s $282 billion stock portfolio. The firm ended up increasing two other bets -- a stake in Kroger Co. and a holding in furniture company RH -- during the first quarter.(Updates with stake sizes, Verizon, Chevron, Kroger and RH starting in 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. Business Bloomberg 210517 15h28m Builders Scour for Cheaper Lumber as Futures Prices Tumble (Bloomberg) -- U.S. lumber futures tumbled from a record high for the sixth straight session, pushing some builders to the sidelines while they wait for even lower prices during North America’s boom in home construction.The price of lumber for July delivery has dropped 23% from its May 10 peak of $1,733.50 per 1,000 board feet -- a level then that was more than four times higher than a year ago. Prices have fallen for six straight days, marking the longest streak for declines since September.Futures were “overvalued as scrambling began for upcoming jobs to get covered, creating an unsustainable market,” said Joy Robles, who trades lumber on the cash market for Sherwood Lumber on Long Island, New York.Lumber prices soared in the past year during an unexpected surge in house building and renovations that left sawmills unable to catch up to demand. The gains have threatened to price out home buyers, with the National Association of Home Builders estimating that the cost of boards for an average U.S. house have jumped by almost $36,000 in the last year.Despite the latest selloff for futures contracts, prices remain elevated for wood that builders need quickly to complete projects even though purchases have slowed. It’s typical to have a gap in prices between the cash market and futures contracts, according to traders.“There was an increasingly cautious tone in the market, with a sharp decline in lumber futures, reports of slowing home center volumes, and inflation data catching the attention of traders,” RBC Capital Markets analyst Paul Quinn said in a May 16 note. These jitters, however, have not yet impacted the cash market, RBC said.The cash price for Western spruce-pine-fir 2x4s -- a lumber category used in homebuilding -- increased another 5% last week to a record $1,630 per 1,000 board feet, TD Securities equity analyst Sean Steuart said Monday in a note.Demand for lumber remains strong, with the number of U.S. homes being built in March reaching the highest level since 2006. Most builders are buying on the cash market because delivery dates are more flexible and they require a variety of products not available on the futures market.Lumber for July delivery won’t likely find its way onto a job site until late August, according to Mike Wisnefski, chief executive of lumber digital trading platform MaterialsXchange in Chicago.“If you need wood in June, the futures won’t help you,” he said.Still, sales of physical wood products on MaterialsXchange slowed last week and prices crept lower. A truckload of European spruce 2x4s already imported in Florida sold for $1,795 per 1,000 board feet on May 11. Two days later, the same quantity fetched $1,750. On Monday, the seller offered another truckload for $1,700, Wisnefski said.More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. Business Reuters 210517 15h26m UPDATE 1-U.S. Treasuries' foreign inflows in March hit all-time peak -data Foreign inflows to U.S. Treasuries posted a record high in March, with the bulk of flows coming from private investors, data from the U.S. Treasury showed on Monday. U.S benchmark 10-year Treasury yields started March with a yield of 1.415%, rising about 39 basis points to a peak of 1.776%, the highest since January 2020. A more upbeat U.S. economic outlook and rising inflation pushed yields higher in March and spurred expectations that the Federal Reserve might raise interest rates earlier than what officials had suggested, which was not until at least 2024. Business Reuters 210517 15h15m US STOCKS-Wall St ends lower, pulled down by tech stocks Of the 11 major S&P sectors that declined, technology , utilities and communication services were the biggest losers, each down between 0.7% and 0.9%. "What is causing the decline, no surprise to anybody, is the worry about inflation and interest rates," said Sam Stovall, chief investment strategist at CFRA Research in New York. "As a result that's causing the growth group, in particular technology and consumer discretionary stocks, to experience weakness, while some of the more value-oriented groups are holding up a bit better." Howell date : 210517 15h02m43s Business Reuters 210517 14h56m RPT-UPDATE 1-Tencent Music beats profit estimates on subscription growth China's Tencent Music Entertainment Group on Monday beat quarterly profit estimates, driven by strong growth in subscription revenue and advertising sales from its music streaming platform. Tencent Music and Sony Music Entertainment said on Monday they had signed a multi-year extension of their digital distribution agreement. Total revenue of the company, controlled by Chinese tech giant Tencent Holdings Ltd, rose to 7.82 billion yuan ($1.21 billion) in the first quarter from a year earlier. Business Reuters 210517 14h53m U.S. labor leader calls for human drivers in automated vehicles A senior American labor union leader will tell U.S. lawmakers on Tuesday that the government should require human operators in all self-driving passenger services to take over in the event of an emergency. Greg Regan, president of the Transportation Trades Department for the AFL-CIO, will tell a U.S. House Energy and Commerce subcommittee that autonomous vehicles place "millions of jobs at risk" and any legislation to speed deployment of self-driving cars should not apply to commercial trucks weighing 10,000 pounds or more, according to his written testimony released by the panel Monday. Regan's testimony comes after Reuters reported last week that Alphabet Inc’s Waymo and rival Cruise have applied for permits to start charging for rides and delivery using autonomous vehicles in San Francisco. Business Bloomberg 210517 14h47m CN Rail Offer for K.C. Southern to Fall Under Stricter Rules (Bloomberg) -- Canadian National Railway Co.’s proposal to buy Kansas City Southern will be judged under stricter rules adopted in 2001, the industry’s U.S. overseer said Monday, mapping the path to the first major rail merger in more than 20 years.The Surface Transportation Board also denied Canadian National’s initial request to use a voting trust for the transaction, saying the petition was incomplete because it referred to a merger agreement that wasn’t provided. The merger rules for Canadian National’s $30 billion bid are different from how the STB plans to handle a competing $25 billion proposal from smaller Canadian Pacific Railway Ltd. The STB said Canadian Pacific’s merger proposal falls under the older, less strict rules because it would “result in the fewest overlapping routes” and its voting trust was already approved.Canadian National’s proposed offer “poses issues that the current merger rules were designed to address, namely the potential competitive impacts of a merged entity with some degree of overlapping routes and presently existing direct competition,” the STB said in the decision posted on its website Monday.Kanasas City Southern shares fell on news of the STB ruling and ended down 3.9% to $297.04 at the close of regular trading in New York. Canadian Pacific also dropped, down 3.3% on the day, while Canadian National erased earlier losses to trade up 0.7% in Toronto.Kansas City Southern last week said it deemed Canadian National’s offer superior and gave Canadian Pacific until May 21 to improve its offer.The “ruling against a voting trust and for tougher merger rules to be applied in Canadian National’s proposed acquisition of Kansas City Southern will make a deal more complicated but not impossible to complete,” said Lee Klaskow, an analyst with Bloomberg Intelligence.‘Cautious Approach’The agency tightened its merger oversight in 2001, declaring that tie-ups must be in the public interest instead of the standard applied in most earlier deals: that the combination simply not hurt competition. The STB devised the stricter test after halting a tie-up between Canadian National and BNSF Railway in 2000, ending a 20-year M&A frenzy that left only seven large railroads in the U.S. and Canada.Canadian National said it plans to submit again its request for a voting trust, which would allow Kansas City Southern shareholders to be paid even as the two railroads continue to operate separately while final regulatory approval is pending. Kansas City Southern said that’s a requirement for the $30 billion deal. The STB said in its Monday ruling it will “take a more cautious approach” for Canadian National’s voting trust, which will have to meet the public-interest standard.In a statement, Canadian National called it a “procedural decision” that was “based solely upon the fact that a merger agreement for the combination between CN and KCS was not yet available to be filed with the board.” Canadian Pacific and Kansas City Southern reached a merger agreement in March, with the Calgary-based company paying $275 a share in cash and stock. Canadian National topped that amount last month.The two Canadian railroads are vying to be the first company to link tracks through their country, the U.S. and Mexico as a single railroad. Kansas City Southern, the smallest of the seven large U.S. and Canadian railroads, gets about half of its revenue from Mexico.(Updates with regulator comment in the eighth paragraph, changes throughout)More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. Business Reuters 210517 14h44m UPDATE 1-U.S. labor leader calls for human drivers in automated vehicles A senior American labor union leader will tell U.S. lawmakers on Tuesday that the government should require human operators in all self-driving passenger services to take over in the event of an emergency. Greg Regan, president of the Transportation Trades Department for the AFL-CIO, will tell a U.S. House Energy and Commerce subcommittee that autonomous vehicles place "millions of jobs at risk" and any legislation to speed deployment of self-driving cars should not apply to commercial trucks weighing 10,000 pounds or more, according to his written testimony released by the panel Monday. Regan's testimony comes after Reuters reported last week that Alphabet Inc’s Waymo and rival Cruise have applied for permits to start charging for rides and delivery using autonomous vehicles in San Francisco. Business Reuters 210517 14h40m Eastman Kodak says New York preparing insider-trading lawsuit The New York attorney general’s office is preparing an insider-trading lawsuit against Eastman Kodak Co and its top executive, focusing on stock purchases that preceded an ill-fated deal with the Trump administration to finance a pharmaceutical venture during the COVID-19 pandemic, according to the company and people familiar with the matter. The emerging civil case centers on Executive Chairman Jim Continenza’s June 23, 2020, purchase of nearly 47,000 Kodak shares, Kodak said in a quarterly Securities and Exchange Commission filing on Monday. Continenza, the company chairman starting in September 2013 and executive chairman since February 2019, took on the additional role of CEO in July 2020. Business Bloomberg 210517 14h39m Berkshire Exits Synchrony Bet, Adds Stake in Broker Aon (Bloomberg) -- Warren Buffett’s Berkshire Hathaway Inc. exited a bet on Synchrony Financial as the company continued to pare back its investments in financial firms.Berkshire reported Monday that it no longer held any shares in Synchrony and trimmed its Wells Fargo & Co. bet to just over 675,000 shares. Buffett’s company added shares in insurance broker Aon Plc, which is seeking to close a deal with rival Willis Towers Watson Plc.Buffett’s company has spent the last year revamping its holdings in financial companies, sticking by a massive stake in Bank of America Corp. valued at $39.1 billion as of March 31, while exiting investments in JPMorgan Chase & Co. and Goldman Sachs Group Inc. Berkshire’s more than three-decade investment in Wells Fargo has been slowly disappearing in recent years.Meanwhile, Berkshire has dug even deeper into the insurance-brokerage industry. The bet on Aon, disclosed in a quarterly filing, comes just months after Berkshire revealed a stake in its rival Marsh McLennan. Aon and Willis Towers Watson have agreed to sell some assets to help ease regulatory concerns around their proposed combination.(Updates with financial stakes in third paragraph and broker bet in fourth.)More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. Howell date : 210517 14h02m06s Business Reuters 210517 13h49m EMERGING MARKETS-Chile's peso plummets to one-month low on constitution vote shock * Chile's peso set for worst day since January * Peru's sol drops as presidential candidate hints at higher taxes (Updates prices) By Ambar Warrick and Shashank Nayar May 17 (Reuters) - Chilean risk assets tumbled on Monday after a shock result in the vote over the drafting of a new constitution, while higher oil prices and a positive U.S. economic outlook helped support the Brazilian real and Mexican peso. The Chilean peso fell 2.2% and was set for its worst day since January this year, after the country's ruling center-right coalition failed to secure a critical one-third of seats in the body that will draft a new constitution, increasing the chances of the passing of more radical proposals. The copper-producing country's bonds, currency and stocks all sank as jitters spread amongst investors, fearful that Chile's market-friendly constitution, dating from the dictatorship of Augusto Pinochet, could face a major overhaul. Business Reuters 210517 13h41m GLOBAL MARKETS-Stocks fall as tech shares weigh; gold rises amid inflation concerns Stock indexes were lower globally on Monday with technology shares on Wall Street falling, while U.S. Treasury yields traded little changed even after a report showing the highest prices ever paid in a May manufacturing survey for New York State. The S&P 500 technology sector was down 0.9% and was the biggest drag on the benchmark index. Concerns over inflationary pressure helped to lift gold prices to their highest in more than three months, however. World Reuters 210517 13h34m Chile begins down uncertain road to writing new constitution Chile's long-standing political parties were reeling on Monday following their bruising defeat in an election for delegates to rewrite the constitution that sowed doubts over their future as well as the fate of the country's free-market model. "We expect Chile's transition to a new constitution over the next couple of years to be stable, sustaining investor confidence," the agency said in a note on Monday. Business Yahoo Finance 210517 13h33m Danny Meyer says the restaurant industry’s next big challenge is finding talent The restaurant industry is starting to spring back to life as more Americans get vaccinated and more cities relax indoor dining restrictions. Business Bloomberg 210517 13h33m Oil Rises to Two-Year High With Investors Eying Demand Comeback (Bloomberg) -- Oil climbed to the highest in two years with optimism building around the comeback of fuel demand in regions such as the U.S., even as Covid-19 flare-ups persist in parts of Asia.Futures in New York advanced 1.4% on Monday to the highest since April 2019. The U.S. and China, along with parts of Europe, are rapidly recovering from the pandemic as vaccinations increase, overshadowing concerns around weaker consumption in India. In the U.S., the number of passengers at airports jumped to the highest since the pandemic began, a sign of the domestic travel revival that’s leading the way in a jet fuel demand rebound. For the U.S., “the consensus is building around a very strong summer demand period,” said John Kilduff, a partner at Again Capital LLC. “The supply and demand balance is going to be a little short as we get deeper into the year,” supporting prices.Oil’s rally of more than 4% this month comes as even the hardest-hit parts of the oil market -- namely, jet fuel -- are showing signs of a revival. The number of people passing through Transportation Security Administration checkpoints at U.S. airports surged to 1.85 million on Sunday -- the highest since March 2020 -- pointing to the recovery in domestic U.S. air travel that’s seen underpinning a summer surge in jet fuel demand. United Airlines Holdings Inc. on Monday said it plans to operate 80% of its pre-pandemic U.S. schedule.“More reopenings in Europe, consumer confidence and travel normalizing” are all boosting confidence in a demand rebound, said Phil Streible, chief market strategist at Blue Line Futures LLC in Chicago. In the U.S., “more and more people are getting vaccinated and those people are now traveling.”The recovery underway in the U.S. is helping offset a tepid recovery in Asia, where the coronavirus is crippling key importer India and Singapore and Taiwan are grappling with new outbreaks. Another wildcard is the prospect of more crude flows from Iran as the nation seeks to revive a nuclear deal and free itself of U.S. sanctions. Talks are ongoing, however, and progress on a solution remains uncertain.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. Business Reuters 210517 13h18m Timeline: AT&T's biggest deals over the last decade With a spin off of its media assets to Discovery Inc on Monday and the sale of it stake in DirecTV to buyout firm TPG Capital earlier this year, AT&T is now working on streamlining its business, paying down its debt and focusing on expanding its 5G network. Discovery acquired Scripps Networks Interactive Inc for $11.9 billion in 2017 and the Oprah Winfrey Network last year for about $36 million. Howell date : 210517 13h31m30s World Bloomberg 210517 13h16m U.S. Cases Hit 14-Month Low; California Mask Rule: Virus Update (Bloomberg) -- The U.S. on Sunday recorded its lowest number of new coronavirus infections since the early days of the pandemic. President Joe Biden plans to send an additional 20 million doses of vaccines abroad by the end of June as supply is beginning to outstrip demand.California will keep its mask mandate in place for another month. The New York City Marathon, a major tourism draw, will return in November with at least 33,000 runners.Sanofi and GlaxoSmithKline Plc reported positive results from a mid-stage study, offering optimism their delayed vaccine could be cleared by year-end. U.K. Prime Minister Boris Johnson said the next step out of lockdown must be taken “with a heavy dose of caution” as more coronavirus restrictions were lifted on Monday.Key Developments:Global Tracker: Cases pass 163 million; deaths exceed 3.38 millionVaccine Tracker: More than 1.46 billion doses have been givenHow Fear of Vaccine Threatens to Delay Pandemic’s End: QuickTakeTexas reopening barely budged either economy of caseloadsVaccine shortfall leaves nations vulnerable as Covid spreadsSun-hungry Brits head South as flights resume post-Covid banSubscribe to a daily update on the virus from Bloomberg’s Prognosis team here. Click CVID on the terminal for global data on cases and deaths.California to Keep Mask Rule for Another Month (3:10 p.m. NY)California will keep its mask mandate in place until it fully reopens its economy on June 15 in an effort to persuade more residents to get vaccinated, breaking from other states that are dropping their requirements on the federal government’s advice.It’s Back to the Classroom in N.J. (1:45 p.m. NY)New Jersey Governor Phil Murphy said all school districts must return to in-person learning by September.The governor on Monday said his executive order allowing districts to provide remote instruction will expire at the end of the current school year. Full-time remote learning will no longer be an option, he said.Murphy also lifted the state’s travel advisory that required visitors to quarantine, and he ended the outdoor mask mandate in public places. The requirement for masks in indoor public places remains in place, Murphy said.N.Y. to Ease Mask Mandate (1:15 p.m. NY)New York will lift its mask mandate on Wednesday in accordance with national guidance from the Centers for Disease Control and Prevention as Covid vaccinations approach 50% of the state’s residents and cases and hospitalizations ebb.“All the arrows are pointed in the right direction, so let’s get back to life,” said Governor Andrew Cuomo in a briefing on Monday. “We need to get the exuberance back, the excitement back.”Cuomo called the easing of the mask mandate a “radical adjustment of rules and guidelines” and said the state took a couple of days to analyze the guidance and align it with its own.Italy to Phase Out Curfew (12:15 p.m. NY)Italy is set to to phase out a national curfew, currently set at 10 p.m., seeking to remove it on June 21, bowing to calls to reopen the country following a steady decrease in the number of cases.At a Monday meeting, the government of Mario Draghi agreed to delay the curfew for low-risk areas to 11 p.m., and to allow indoor dining from June 1, according to an official who asked not to be named.Biden to Send Vaccines Abroad (12:10 p.m. NY)President Joe Biden plans to send an additional 20 million doses of U.S. coronavirus vaccines abroad by the end of June -- including, for the first time, shots authorized for domestic use, where supply is beginning to outstrip demand.Biden will announce Monday that he’ll export 20 million doses of vaccines from Pfizer Inc., Moderna Inc. or Johnson & Johnson, on top of 60 million AstraZeneca Plc doses he had already planned to give to other countries, according to a senior administration official familiar with the plan.BioNTech Gets Refrigeration Extension (12:10 p.m. NY)BioNTech on Monday said the European Medicines Agency agreed to extend the time it would allow medical agencies to store the Covid-19 vaccine it makes with Pfizer at refrigeratior temperature to 31 days, longer than the five days it previously gave permission for. The change to the rules will allow for more vaccinations within Europe. The company said U.S. regulators are considering a similar request.U.K. Finds More Cases of India Strain (12:01 p.m. NY)Authorities have identified 2,323 cases of the Indian strain of coronavirus in the U.K., Health Secretary Matt Hancock said, as the highly transmissible new variant spreads.Speaking in Parliament on Monday, Hancock said 86 different local authority areas had now identified at least five people with the new strain.Cases have doubled in the past week in Bolton, Blackburn and Darwen in northwestern England and the Indian variant is now the dominant strain of the virus, Hancock said.He urged the public to get vaccinated, saying most people with the India strain in Bolton hospital hadn’t received a shot. Early evidence shows vaccines still work against this new variant, he added.NYC Marathon to Return Nov. 7 (11:50 a.m. NY)The 50th running of the New York City Marathon, the biggest in the world and a major tourism draw for the city, will be held on Nov. 7, Governor Andrew Cuomo announced Monday.The 26.2-mile (42-kilometer) race, which was canceled last year, will be held at 60% capacity, meaning about 33,000 runners will be able to participate. That capacity may be subject to change, the governor said. Registration will open June 8.“The marathon is back,” Cuomo said.Seychelles Using Russia’s Sputnik Shots (11:30 a.m. NY)Seychelles, which has vaccinated a greater proportion of its population than any other nation against Covid-19, said it has started offering Russia’s Sputnik V vaccine in addition to the AstraZeneca Plc and Sinopharm shots.So far 99% of the “target population” has been vaccinated with at least a single dose of vaccine and 88% have received two doses, the health ministry said in a statement on Monday. Still, Seychelles has seen a surge in cases in recent weeks.China Donates Vaccines to Zimbabwe Army (11:10 a.m. NY)The People’s Liberation Army of China donated 100,000 Sinopharm vaccines to the Zimbabwe Defence Forces, the southern African nation’s Health Ministry said on its Twitter account.The consignment was received by Defense Minister Oppah Muchinguri-Kashiri at the main airport in the capital, Harare, on Monday. The inoculations will benefit 50,000 military personnel, including war veterans and their dependents, it said.Zimbabwe recorded 38,560 coronavirus infections and 1,582 deaths by May 16, according to government data.U.S. Daily Cases Fall to 14-Month Low (10:05 a.m. NY)The U.S. recorded 16,857 new coronavirus infections on Sunday, the lowest daily total since the early days of pandemic in March 2020, according to data compiled by Johns Hopkins University and Bloomberg. In January after a holiday-fueled surge, the U.S. was averaging about 250,000 new cases a day.Sundays typically have the fewest reported cases of the week. Even so, yesterday’s total was the lowest for any day of the week since Wednesday, March 25, 2020.For the week ended Sunday, new cases rose by 0.7%, the slowest increase of the pandemic. The weekly total of 232,839 new infections was the lowest since the seven days ended June 21.Andy Slavitt, senior adviser for the Biden administration’s Covid response, said in a tweet Monday that cases are falling in all 50 states.World Economic Forum Cancels Singapore Meeting (10 a.m. NY)The World Economic Forum is canceling the annual meeting it was planning to hold this August in Singapore, a spokesman said.The city-state has seen a jump in coronavirus cases in recent weeks, prompting its government to introduce restrictions on activity and tighten border controls.Pakistan Cases Drop After Week-Long Lockdown (9:15 a.m. NY)New infections in Pakistan dropped to the lowest level in nine weeks after it imposed a week-long shutdown, according to data compiled by Bloomberg and Johns Hopkins University.The nation, which is in the midst of a new wave of the virus, relaxed restrictions by resuming public transport and extending market opening hours.Philippines Signs Deal for Pfizer Shots (9:12 a.m. NY)The Philippines signed an initial deal with Pfizer Inc. for 40 million vaccine doses, paving the way for the Southeast Asian nation’s biggest supply agreement. The country hopes to reach herd immunity this year to help it fight one of the region’s worst outbreaks.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. Business Reuters 210517 13h06m US STOCKS-Wall St weighed down by falling tech stocks Technology stocks pulled Wall Street's main indexes lower on Monday, with the Nasdaq Composite index falling about 1% as signs of growing inflationary pressures raised concern about monetary policy tightening. Six of the 11 major S&P sectors declined, with technology shedding about 1.3%. Apple Inc and Microsoft Corp each fell more than 1%, weighing the most on the benchmark S&P 500 and the Nasdaq. World Bloomberg 210517 13h00m World’s Oranges, Coffee at Risk as Brazil Runs Out of Water (Bloomberg) -- Brazil, the world’s biggest exporter of coffee, sugar and orange juice, just had a rainy season that brought hardly any rain.Soils are parched and river levels are low in the nation’s Center-South region, a powerhouse of agricultural output. The drought is so severe that farmers are worried they’ll run out of the water reserves that help keep crops alive over the next several months, the country’s dry season.Mauricio Pinheiro, 59, started irrigating his arabica-coffee crops in March, two months earlier than normal, after his 53-hectare plantation got less than half of the rain it needed. He’s using so much water for the plants that there isn’t enough left for his home. In order to keep the showers and faucets running, he’s had to search for another well.“My irrigation reservoir is drying up now -- that usually happens in August,” said Pinheiro, who lives in Pedregulho in the Alta Mogiana region, in Sao Paulo state. “I’m really concerned about running out of water in the coming months.”The prospect of withering orange trees and coffee plants is coming at a time when agricultural crops are rallying to multiyear highs, which has fanned fears of food inflation. Higher food costs may exacerbate hunger, a problem around the globe that the Covid-19 pandemic has made more acute. Coffee and raw-sugar contracts on the ICE Futures exchange in New York have already touched four-year highs.If even irrigated areas can’t get enough water, Brazil’s coffee and orange output may decline for a second year in a row. Brazil’s current orange crop shrunk 31% from the previous season, the most in 33 years, and production of arabica coffee, the high-end kind used by chains like Starbucks Corp., is also dropping sharply.Rainfall was disastrously low for many areas in Sao Paulo and Minas Gerais from January to April, said John Corbett, Chief Executive Officer at aWhere Inc. Over the next 15 days, most of Brazil is projected to remain drier than normal.While a dry spell is typical for this time of year in Brazil, it’s expected to last longer than usual, adding to concerns. Regular rains will return to the region between October and November, instead of September, said Celso Oliveira, a meteorologist at Somar Meteorologia.About 30% of Brazil’s orange crop and 15% of arabica coffee fields are irrigated.“The levels of rivers and lakes has been very concerning,” said Regis Ricco, director at Minas Gerais-based RR Consultoria Rural.Francisco Sergio de Assis, a coffee grower in Monte Carmelo, a municipality in the Cerrado region of Minas Gerais, started irrigating his fields a month early, and doesn’t think his water reservoirs will last if it doesn’t rain by September.The situation is becoming critical for orange groves. Emerson Fachini, an orange farmer who cultivates 45 hectares (11 acres) in Palestina municipality in Sao Paulo state, said he’s had irrigation systems turned on for most of the time since January.“Water reservoirs are drying up, depleted just ahead of the dry season,” Gilberto Tozatti, of Sao Paulo-based GCONCI-Group Citrus Consulting, said by phone. “The situation is affecting most of Sao Paulo state and still harming next season’s crop.”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. Business Reuters 210517 13h00m Some big U.S. hedge funds bought value stocks, SPACs during first quarter A number of well-known U.S. hedge funds bought value stocks and blank-check acquisition companies, selling some winners from the technology-led stock rally as bond yields rose during the first quarter, filings released on Monday showed. Special-purpose acquisition companies, known as SPACs, proved popular among hedge fund managers, with funds such as Third Point and Saschem Head adding shares of SPACs, including FinTech Acquisition Corp V and healthcare company Orion Acquisition Corp to their portfolios. Over 400 SPACs have listed their shares since the start of 2021, though the majority are underperforming the broad stock market, a Reuters analysis https://www.reuters.com/business/spac-returns-trail-sp-500-retail-investors-temper-interest-2021-05-04showed. Business Reuters 210517 12h58m UPDATE 1-Investment firms bet on stocks hit by Archegos unwind Several prominent investment management firms purchased shares in the first quarter of companies that plummeted when large banks sold them in a hurry amid the collapse of private investment firm Archegos Capital Management at the end March. Regulatory filings show that Soros Fund Management and hedge funds HG Vora Capital Management and Coatue Management entered positions in media stock ViacomCBS Inc after disclosing no holdings in the previous quarter. The so-called 13F filings do not disclose the date the purchase was made but give a snapshot of what U.S. stocks fund managers owned at the end of the quarter. Business Bloomberg 210517 12h55m Goldman Traders Caught in Mexico Stalemate Chasing $400 Million From Texas Freeze (Bloomberg) -- It’s a Wall Street nightmare. You score hundreds of millions of dollars on a trade and you just can’t get paid.That’s what Goldman Sachs Group Inc. faces in a transaction pitting its traders against Mexico’s dominant power company, championed by none other than President Andres Manuel Lopez Obrador, according to people with knowledge of the matter. At issue: roughly $400 million the Wall Street bank believes it’s owed from a natural-gas trade that went wild when a deep freeze hit Texas in February.In private discussions with Goldman Sachs, state-owned utility Comision Federal de Electricidad has blamed rogue traders, ejected staff and even hinted that the side lacking financial sophistication in the trade was, perhaps, the Wall Street bank, the people said.If the impasse continues to escalate, it risks dragging the bank into a political blowup.The freakishly cold storm that battered the central U.S. set off sweeping blackouts as ice formed on wind turbines and some pipelines froze, forcing oil and gas wells to shut. As power suppliers and traders struggled to track down fuel to meet obligations, prices skyrocketed. The surge benefited companies that happened to be on the right side of trades, but their ability to collect depends on what happens to gas suppliers, power generators and utility customers, some of whom have filed price-gouging lawsuits.The cost of paying Goldman Sachs could ultimately come from Mexican households, many of whom were left without power in the winter -- not so much because of local malfunctions but because authorities in Texas cut off fuel exports when their own lightly regulated system failed. It’s little surprise then that officials south of the border are reluctant to write a check to a giant U.S. bank.Yet anybody who bails on such a bet risks becoming persona non grata on Wall Street, complicating their future access. On the other side, Goldman’s leaders have to consider how angry they want to make the government of Mexico, a market where the firm has been expanding.The descriptions of the dispute and the underlying transaction between Goldman and a CFE subsidiary were provided by people with knowledge of the matter, who asked not to be identified publicly discussing the talks. A representative for Goldman Sachs didn’t comment for this story.The bank and CFE are heading into arbitration over the matter, a spokeswoman for the utility told a Whatsapp chat room with journalists on Monday, noting “the CFE considers that it has solid and sufficient arguments.”On the face of it, it was a routine natural-gas contract. Goldman had entered into the arrangement with CFE International, an arm of CFE. The investment bank’s obligations were tied to a monthly index of gas prices, while the CFE unit would be exposed to daily rates at certain hubs, such as the Waha hub in West Texas.The daily price there surged by nearly 100 times, whereas the monthly price was left largely unchanged, leaving the CFE subsidiary on the hook for an unusually large amount. But instead of the contract getting settled in the Wall Street firm’s favor, the situation has devolved into an acrimonious spat.The Mexican utility has argued that the traders who initiated the deal at its subsidiary weren’t authorized to do so, and some of them have since left, the people said. CFE has also argued it shouldn’t have to fulfill the contract because of the unforeseeable, extreme price action. And it has asserted that Goldman failed to strike a rock-solid contract because it didn’t get an explicit nod from the parent company as a guarantor on the trade, undermining the bank’s ability to extract the money.For Goldman, the dispute boils down to a contractual obligation that its counterparty is duty-bound to fulfill, even if the debt resulted from unforeseen disaster. The bank has also privately argued that such a trade was routinely carried out between the two sides and that the subsidiary even represented in documentation that it had a guarantee from the parent company, a person close to Goldman said. Chat logs during the deal indicate that CFE’s subsidiary was seeking approvals on various aspects of the trade from its parent, the person said.It’s unclear how and when Goldman will be able to realize the money it insists it’s owed, especially as CFE becomes a central part of the Mexican president’s campaign to reshape the domestic energy market.Read More: Mexico Blames U.S. as Energy Crisis Spills Across the BorderSince winning in a landslide in 2018, Lopez Obrador has sought to roll back energy reforms by his predecessor and has said he wants to turn CFE back into an economic champion. He’s broadly blamed private companies for fleecing the nation in deals hatched with corrupt officials, and he’s taken particular issue with gas contracts that he says unfairly benefited businesses at the expense of the state utility.“We are going to continue to comply with the commitment not to increase the price of electricity, even with speculation and the increases in gas prices that are taking place in Texas and the United States,” he said during his morning press conference on Feb. 18.(Updates with comment from CFE spokeswoman in ninth 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. Business Bloomberg 210517 12h52m Novogratz Says Bitcoin Risks Remaining Under Pressure for Weeks (Bloomberg) -- Bitcoin is likely to remain under pressure for weeks after tumbling about 35% since hitting a record high last month, according to one of the biggest investors in the largest cryptocurrency.“I think we are going to consolidate for a while, four to six weeks,” Michael Novogratz, chief executive officer of Galaxy Digital LP, said in an interview, calling a $40,000-to-$50,000 price range fair.Bitcoin fell as low as $42,133 on Monday following a volatile weekend that saw Tesla CEO Elon Musk whipsaw investors with a series of tweets in the wake of his decision to stop accepting the coin for car purchases because of its environmental impact. Bitcoin’s digital ledger uses a worldwide network of computers to function, a process that’s become known as mining.“I took his mining comments at face value,” Novogratz said. “I don’t think that’s Bitcoin-specific, that’s everything specific: The gold market, YouTube -- all uses a lot of electricity. And Elon has businesses in clean energy.”The cryptocurrency industry is looking at its Environmental, Social, and Corporate Governance (ESG), and how to mitigate Bitcoin’s impact through things like carbon offset credits, he said.“Like all industries, ESG is important, and the crypto industry including Galaxy is going to address it,” Novogratz said.Bitcoin should still finish the year higher even after the recent slide, Novogratz said. The U.S. Securities and Exchange Commission could approval of a Bitcoin exchange-traded fund at the end of this year or early next year, he said.“My guess is the next catalyst is the ETF,” Novogratz said.While Bitcoin continues its gyrations, New York-based Galaxy -- which hopes to list on a U.S. exchange in the second half of the year -- reported strong first-quarter results Monday. Even after the recent volatility, Bitcoin is up around 45% for the year.Net comprehensive income, excluding non-controlling interests, increased to $860.2 million, from a net comprehensive loss of $26.9 million in the prior-year period. Counterparty trading volumes grew more than 290% year over year. Its preliminary assets under management rose to $1.27 billion as of March 31, a 58% jump from the prior quarter.Galaxy is involved in a slew of businesses, ranging from mining to helping companies with acquisitions to investing in startups. In May, Galaxy acquired crypto custodian BitGo for $1.2 billion. Erin Brown, who was previously chief risk officer at Jump Trading, was named chief operating officer Monday.Galaxy is currently trading more than 90 coins. The bulk of the portfolio is in 15 coins, however, including Bitcoin, Ethereum and some DeFi coins, used in decentralized-finance applications like peer-to-peer lending and payments.“Let’s not miss the big picture for the small picture,” Novogratz said. “We are going through a once-in-a-generational shift in this crypto blockchain evolution, where the financial infrastructure is starting to be rebuilt. That process is picking momentum.”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. Howell date : 210514 11h48m35s World Bloomberg 210514 11h37m Brazil Economy Chief Sees Reforms Continuing After 2022 Vote (Bloomberg) -- Discover what’s driving the global economy and what it means for policy makers, businesses, investors and you with The New Economy Daily. Sign up here.Brazil’s economy czar has a candid assessment of his three-year relationship with Jair Bolsonaro: both men trust each other and continue to push for key reforms, although the president’s support for his minister’s pro-market agenda has been waning.Paulo Guedes told Bloomberg News on Thursday that key proposals to overhaul the country’s tax system and curb public-sector costs will be approved this year, as well as bills allowing more privatizations to move forward. Going forward, whomever is elected will have no option other than following the path of reforms to keep the economy growing, he added.Challenges abound, however, as a congressional probe into the government’s handling of the pandemic consumes lawmakers’ energy. In a few months, attention will turn to next year’s presidential election, while Bolsonaro is increasingly forced to give in to opposing demands from centrist parties in exchange for congressional support.“Bolsonaro has already supported 98% of the liberalizing agenda and now he’s been supporting 65% of it,” Guedes said during a wide-ranging interview at his office in Brasilia. “I intend to help him carry out this commitment. As long as it’s working, it’s alright.”Guedes himself looks to 2022 with a liberal attitude. After joining Bolsonaro’s presidential campaign in 2018 with ambitious free-market ideas inspired by the University of Chicago, he now quips about the possibility of backing a candidate who fully endorses his proposals.“What if a Brazilian Ronald Reagan or Margaret Thatcher shows up, willing to privatize everything? I’d tell the president: Would you mind if I help them?”Read More: The World’s Most Reluctant Keynesian Spends Big in BrazilStronger RealGuedes, 71, estimated that the real is bound to strengthen as privatizations, investment and structural reforms turn Brazil’s cyclical rebound into a sustained recovery. While a bill allowing the sale of power utility Eletrobras should pass through congress next week, Lower House Speaker Arthur Lira said he will soon detail a work plan for the approval of the tax overhaul.“As reforms make progress, everybody will see that the currency is mispriced, that it will strengthen,” he said. “The currency had an overshooting and is now finding its equilibrium -- if it’s going to be 5 per dollar, 4.8 per dollar or 3 per dollar... I have my hunch, but I won’t say.”Read More: Brazil Rushes to Approve Tax Reform Before Presidential ElectionThe Brazilian currency lost nearly a quarter of its value in 2020 amid investor concerns about excessive public spending during the pandemic. A recent surge in commodity prices, coupled with aggressive interest rate hikes by the central bank and an improved fiscal outlook have helped to shore up the real in the past few weeks. It is now up more than 7% since the end of March, with gains of 0.8% on Friday.Guedes forecast that Brazil, after suffering a less painful recession than its neighbors last year, will surprise again in 2021 with the creation of 1 million jobs during the first four months of the year.“Many countries are still on the floor, but Brazil is standing and has started to walk fast,” he said.The better-than-expected performance should be partly credited to government programs to assist the poor and to protect jobs during the pandemic, according to Guedes. Together, those programs made a hole in Brazil’s budget but what matters is that the administration has managed to keep recurring expenses in check, he said.Read More: Brazil Economy Outperforms Expectations During Second Covid WaveSee below for other key comments by the minister.Tax ReformBolsonaro and the heads of both houses of congress have agreed to split up into several chapters a proposal to overhaul the tax system in order to speed its progressChanges to income and consumer taxes will be first submitted to the lower houseA proposal to renegotiate tax debts will be first submitted to the senateEletrobras PrivatizationBill allowing the privatization of power utility Eletrobras is likely to be approved next week, according to GuedesDiscussion was delayed because lawmakers tried to make unwelcome, last-minute changes to the text(Updates ninth paragraph with real’s gains on Friday.)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. Business Bloomberg 210514 11h29m Marathon Plans $10 Billion Buyback After Speedway Sale (Bloomberg) -- Marathon Petroleum Corp. plans to repurchase as much as $10 billion of stock after the U.S. oil refiner completed the sale of its Speedway fuel retail chain.The plan starts with a cash tender offer to buy as much as $4 billion of shares, or about 10% of its current market value, the company said Friday. The repurchase would be the oil refiner’s biggest-ever share buyback, according to data compiled by Bloomberg.“After the completion of the tender offer, we intend to execute on the remainder of our $10 billion repurchase authorization over the subsequent 12 to 18 months,” Chief Financial Officer Maryann T. Mannen said in a statement. In addition, $2.5 billion of proceeds from the Speedway sale has been allocated to reduce long-term debt.Marathon shares jumped as much as 5.1% to $61.80, the highest since January 2020. That compares with a 3% gain in the S&P 500 Energy Index.Marathon agreed in March 2020 to sell Speedway to 7-Eleven Inc., a unit of Japan’s Seven & i Holdings Co., for $21 billion. The transaction followed months of pressure on Marathon from investors including Elliott Management Corp. and D.E. Shaw & Co. , pressing the company to make sweeping changes to improve its performance. Elliott had pushed for Marathon to break itself up into three separate businesses: refining, retail and pipelines.The deal’s after-tax cash proceeds are estimated at $16.5 billion, the company said.(Adds share price in fourth paragraph. An earlier version corrected the repurchase amount in first 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. Business Reuters 210514 11h27m JPMorgan Chase hires senior executive from Goldman's Marcus business - memo Mohan was the managing director and CFO for Goldman's consumer business, which includes Marcus and Apple Card, and will be departing after nearly 15 years at the bank. Mohan will be starting her new role in August, the memo said. Business Bloomberg 210514 11h20m Colonial Hackers Shut Down Service Amid Pressure From U.S. (Bloomberg) -- The group suspected of being behind the massive Colonial Pipeline Co. attack has told other hackers that it plans to shut down its ransomware-as-a-service operation amid pressure from law enforcement.The group DarkSide told its affiliates -- hackers who buy the group’s malware -- in a Thursday announcement that it had lost access to some infrastructure, including a blog and payment servers, according to Kimberly Goody, senior manager of financial criminal analysis at FireEye Inc.’s Mandiant. The group planned to close down and provide decrypters to companies that haven’t paid the ransom, she said.“The post cited law enforcement pressure and pressure from the United States for this decision,” Goody said in a statement. Mandiant’s investigators haven’t been able to independently verify the claims.The breach of Alpharetta, Georgia-based Colonial Pipeline forced the company to shut down operations last week, triggering fuel shortages in parts of the U.S. and focusing attention on ransomware, a type of cyberattack in which hackers encrypt a victim’s computers and demand a ransom to unlock them.DarkSide’s site on the dark web wasn’t working as of Thursday, nor were other domains maintained by the group.Some ransomware groups maintain pages on the dark web where they post stolen documents to pressure victims into paying or list the names of companies that have refused their demands. DarkSide’s site posted what appeared to be three new victims on its site as recently as May 12, as they continued to leak new data on the site for existing digital hostages.Dark web researchers speculated that the outage could be DarkSide’s effort to duck law enforcement given the turmoil caused by the attack. “DarkSide is likely going to go quiet and rebrand itself, as we’ve observed with other dark net ransomware operators in the past when they became targets of law enforcement,” said Mark Turnage, co-founder of DarkOwl, a dark web and cyber research firm.President Joe Biden said Russia has “some responsibility” to address the Colonial attack, saying “there’s evidence” the hackers or the software they used are “in Russia.” Cybersecurity experts have also cited the group’s use of the Russian language and the exclusion of Russian companies as hacking targets.In a message posted after the Colonial attack, DarkSide hinted at contrition and that a “partner” might be to blame.“We are apolitical. We do not participate in geopolitics,” the message said. “Our goal is to make money and not creating problems for society. From today, we introduce moderation and check each company that our partners want to encrypt to avoid social consequences in the future.”(Updates with details about DarkSide’s links to Russia in eighth 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. Business Bloomberg 210514 11h20m Stocks Gain as Volatile Week Winds Down: Markets Wrap (Bloomberg) -- U.S. equities rose and Treasury yields declined for a second consecutive day as more-tempered commodity prices helped allay concerns about inflation risks.Energy and technology shares led the S&P 500, which tumbled Wednesday by the most since February. The tech-heavy Nasdaq 100 outperformed the broader index, suggesting a market recovery is gaining momentum, after a bruising week that saw gathering price pressures hit equities. An advance in European stocks was led by cyclical industries. MSCI Inc.’s Asia-Pacific share gauge advanced more than 1%.”We have to look ahead six months -- we’re having an economy that’s reopening,” Citibank Private Bank Chief Investment Officer David Bailin said on Bloomberg TV. “What we’re seeing is an incredible pent-up demand for certain parts of the economy and basically anything that leaves your house.”Markets appear to be regaining their equilibrium at the end of their biggest retreat in 11 weeks, with the focus of the benefits of an economic rebound overriding worry about the negative side-effect of inflation, for now.The Federal Reserve’s policy is in a good place right now, said Cleveland Fed President Loretta Mester, while playing down signals from data that she warns will be volatile as the economy reopens.That may help to reinvigorate the reflation narrative of picking value shares tied to economic growth over pandemic stay-at-home favorites. Walt Disney Co. fell after results that showed a faltering in growth at streaming service Disney+.Treasuries remained higher after a report showed U.S. retail sales stalled in April following a sharp advance in the prior month. The dollar remained weaker against all of its Group of 10 peers.“The disappointing retail sales numbers shouldn’t really come as a huge surprise given that last month encompassed stimulus money hitting bank accounts,” said Mike Loewengart, managing director of investment strategy at E*Trade Financial. “It probably supports the point of view that the dip we experienced this week is a buying opportunity as all sectors march toward full recovery.”Iron ore continued its fall from a record amid efforts by China to clamp down on surging prices, with the metal set for the biggest two-day plunge since 2019. Oil erased an earlier decline, paring its weekly loss.Bitcoin traded above $50,000, reversing some of its slump on Tesla Inc.’s decision to suspend purchases using the digital currency.The MLIV Question of the Day is: When Can Crypto Reach Mainstream Investing?These are some of the main moves in markets:StocksThe S&P 500 rose 1.4%, more than any closing gain since April 5 as of 1:18 p.m. New York timeThe Nasdaq 100 rose 1.9%, more than any closing gain since April 5The Dow Jones Industrial Average rose 1%The MSCI World index rose 1.5%, more than any closing gain since March 1CurrenciesThe Bloomberg Dollar Spot Index fell 0.3%, more than any closing loss since May 7The euro rose 0.5% to $1.2136The British pound rose 0.3% to $1.4090The Japanese yen was little changed at 109.43 per dollarBondsThe yield on 10-year Treasuries declined one basis point to 1.65%Germany’s 10-year yield declined one basis point, more than any closing loss since May 4Britain’s 10-year yield declined four basis points, more than any closing loss since May 4CommoditiesWest Texas Intermediate crude rose 2.2%, the most since May 4Gold futures rose 0.8% to $1,838 an ounceFor 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. Business Reuters 210514 11h11m Eni working with Goldman Sachs, Mediobanca on retail-renewable spinoff - sources Italian energy group Eni has picked Goldman Sachs and Mediobanca to work on the planned spinoff of its new retail and renewable business, two sources said. In April Eni approved the launch of a strategic project to list or sell a minority stake in the unit as part of the company's energy transition strategy. The business, which includes renewable power generation and energy sales to customers, could be worth in the region of 10 billion euros ($12 billion), a source previously said. Howell date : 210514 11h17m58s World Reuters 210514 11h05m Brazil's easing of COVID-19 controls will cause new surge, experts warn The corner bars are jammed once again with rambunctious crowds in Brazil's largest cities, but health experts warn that the easing of COVID-19 restrictions is premature and will deepen the world's second deadliest pandemic. "People think the pandemic is over ... but we are racing towards the edge of a precipice," said epidemiologist Wanderson Oliveira, the country's former health surveillance secretary. With no national policy coordination by far-right President Jair Bolsonaro's government, and under pressure to get their economies running again, Brazilian governors and mayors have eased restrictions on non-essential activities. Business Yahoo Finance 210514 11h01m Disney shares slide, company is 'in the middle of a recovery' According to at least one analyst, the weak Disney+ subscriber additions were the key catalyst for Wall Street's negative reaction to Disney's Q2 results. Business Reuters 210514 10h55m Exclusive: Italy tribunal rules in favour of Blackstone in RCS HQ dispute - sources A Milan arbitral tribunal ruled on Friday in favour of Blackstone Group in a disputed sale of the headquarters of RCS, rejecting all claims made by the Italian publisher, a legal source and one with knowledge of the matter told Reuters. RCS Mediagroup, which publishes the influential daily Corriere della Sera, launched arbitration proceedings in late 2018 to nullify the 2013 sale of its historic headquarters in central Milan to Blackstone, saying the U.S. investment firm had paid too low a price at a time when RCS faced financial difficulties. Blackstone, which paid 120 million euros ($145 million) for the offices, has in turn accused RCS of falsely claiming that it still owns the building and of improperly blocking its sale to Germany's Allianz. U.S. Bloomberg 210514 10h53m Mississippi River Reopens, Freeing Over 1,000 Stuck Barges (Bloomberg) -- The U.S. Coast Guard has reopened the Mississippi River to maritime traffic, ending a shutdown that stranded more than 1,000 barges on the key conduit for agriculture exports.The river reopened as of 9 a.m. Central Time on Friday, according to the Coast Guard, providing relief to a queue of 62 vessels and 1,058 barges stranded on the north and south sides of the Interstate 40 Hernando DeSoto Bridge near Memphis, Tennessee. The waterway had been closed since Tuesday after a crack was found in a truss of the bridge.“The Coast Guard has determined that transit under the I-40 bridge is safe for maritime traffic,” Capt. Ryan Rhodes, Captain of the Port of Memphis, said in a statement, citing information provided by the Tennessee Department of Transportation.The crack in the bridge, found during a routine inspection, had stranded barges and cut off the biggest route for U.S. agricultural exports when the critical waterway is at its busiest. Covered barges full of grain and soy float from U.S. farm country to terminals in the Gulf of Mexico, while crude oil, refined products and imported steel also travel through sections of the waterway.Priorities for resuming vessel traffic are Department of Defense and red flag fuel barges, many of which are helping offset shortages created by the Colonial pipeline outage, followed by passenger boats and then southbound and northbound cargoes, according to Lt. Mark Pipkin of the Coast Guard’s Sector Lower Mississippi River.The reopening will be a “big help for American agriculture,” said Dan Basse, president of Chicago-based consultants AgResource, adding that he sees river operations returning to normal by mid next week.“The record large U.S. summer corn export program is not threatened,” he said in an interview. There “should not be any big snags as long as two-way traffic can persist.”The New Orleans Port Region moved 47% of waterborne agricultural exports in 2017, according to the U.S. Department of Agriculture. The majority of these exports were bulk grains and bulk grain products, such as corn, soybeans, animal feed and rice. The region also supports a significant amount of edible oil exports, such as soybean and corn oils.“I don’t know if U.S. river transportation rises to the level of national security, but it’s importance to U.S. commerce and trade is such that I’m confident they’ll find a way to keep river traffic open,” said Ken Morrison, a St. Louis-based independent commodity trader. “There may be some partial delays at some point when they go in to repair the bridge for highway travel, but I expect that would be barge traffic allowed during daylight hours and not full closure.”Tennessee’s transportation department said it doesn’t have specifics on a repair plan for the bridge or a time frame for the work. Evidence of damage in the same area of the fracture was spotted by an inspector’s drone video in May 2019, the Arkansas Department of Transportation said Friday in a statement.“Hopefully the repair efforts will not cause restrictions in barge traffic,” said Joseph Glauber, a former chief economist with the U.S. Department of Agriculture. “Grain and oilseed shipments to the Gulf pick up in the late spring and early summer, and weekly shipments have been running above the three-year average due to increased trade with China.”Of agricultural supplies on barges north of Memphis, the vast majority was corn.“Any time you have a halt to the flow of barges, there will inevitably be another ‘clog’ that occurs downriver,” said Bevan Everett, risk management consultant and grains market analyst at StoneX, adding that at most the delay in movement may extend through the weekend.“Since traffic is going to be open both ways, by Monday you probably won’t be able to tell this halt happened,” Everett said.The river reopening gives Midwest agricultural markets overseas access again as Chinese buyers have scooped up large amounts of corn in recent days, said Bob Yawger, head of the futures division at Mizuho Securities.“Infrastructure delays had the potential to scare them away or pause the pace of buying,” Yawger said. “A quick reopening of the river will stop that from happening.”(Adds update on bridge repair and commodity trader comments from ninth 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. Business Bloomberg 210514 10h47m Why Lumber Trader Stinson Dean Says the Great Short Squeeze Is Over (Bloomberg) -- In case you’ve missed it, lumber has been on a five-day losing streak. After an incredible run that’s captured national attention, it’s the longest selloff since the very beginning of the year.And at least one lumber trader thinks the great squeeze is over. On Twitter earlier, Stinson Dean (a previous Odd Lots guest) tweeted: “That’s it. I’ve seen enough. Lumber squeeze of 2021 is over. I think cash will follow soon. Where’s the floor?”Just to back up for a second, Dean’s earlier argument was that the runup that we saw was a de facto short squeeze … that all of these lumber yards had made commitments to homebuilders, but then the market proved to be much more tight than they were expecting, forcing them to buy at any price in order to meet their obligations to customers.I talked to him by phone this afternoon, and he says in the last few weeks there’s been a behavioral shift on the part of buyers that signals the squeeze is over. "When I started seeing the industry buying, ahead of time for summer, that was kind of ahead of time for summer, that was a behavioral change,” he said. “That started happening the past four or five weeks… Folks changed their philosophy from just in time, hand to mouth, to anticipatory purchasing. Trying to get long."Furthermore, you can see it in the futures, he notes. "Four or five weeks in a row, the CFTC report, showed commercial hedgers lifting shorts and adding longs,” said DeanThe bottom line is not that prices can’t go back up to their old highs, but that commercial players aren’t short anymore, either in terms of their inventory or their position in the futures market. He called it a “complete change in behavior” from earlier this year, adding that “for the next five weeks, we’re going to see a lot of selling pressure.” There’s another dynamic. It’s his sense, just from talking to other traders, that the big box retailers (Home Depot, Loews, etc.) have plenty of inventory now and he expects them to reduce buying in the future, freeing up more wood for the commercial market, which should ease the strain further.Separately to all this, Neil Dutta of Renaissance Macro points out that lumber production continues to rise, so the supply side is kicking into gear as well, another factor that should ease the strain. 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. Howell date : 210514 10h47m21s Howell date : 210513 19h15m30s Business Reuters 210513 19h08m Samsung BioLogics says no decision yet on producing Moderna's COVID-19 shot Samsung BioLogics Co Ltd said on Friday that no decision has been made yet on producing Moderna Inc's COVID-19 vaccine in South Korea after a local newspaper reported the two companies had agreed on a contract manufacturing deal. The Chosun Ilbo reported that the biotech arm of Samsung Group has agreed to produce the Moderna vaccine in its plant in Songdo, part of which will be used for domestic vaccination, citing unnamed government and pharmaceutical industry sources. Samsung BioLogics said in a filing to the stock exchange that it could confirm the report as no decision has been finalised. World Bloomberg 210513 18h58m ‘Covid Zero’ Havens Find Reopening Harder Than Taming Virus (Bloomberg) -- A smattering of places, mainly across the Asia Pacific region, have posted breathtaking victories in the battle against Covid-19 by effectively wiping it out within their borders. Now they face a fresh test: rejoining the rest of the world, which is still awash in the pathogen.In some ways, the success of “Covid Zero” locations is becoming a straitjacket. As cities like New York and London return to in-person dealmaking and business as usual -- tolerating hundreds of daily cases as vaccination gathers pace -- financial hubs like Singapore and Hong Kong risk being left behind as they maintain stringent border curbs and try to stamp out single-digit flareups.After a brutal 18 months that claimed 3.3 million lives worldwide, nations like China, Singapore, Australia and New Zealand have suffered fewer deaths during the entire pandemic than many countries, even highly vaccinated ones, continue to log in a matter of days.That achievement has allowed people to have largely normal lives for much of the past year. Some haven’t even had to wear masks. But sustaining this vaunted status has also required stop-start lockdown cycles, near-blanket bans on international travel and strict quarantine policies. The few travelers permitted to enter have had to spend weeks in total confinement, unable to leave a hotel room.Now that mass inoculation drives are allowing other parts of the world to normalize and open up international travel, experts and residents are starting to question whether walling off from Covid is worth the trade-off, if implemented long-term.“The whole world is not going to be Covid Zero,” said Rupali Limaye, director of behavioral and implementation science at the International Vaccine Access Center at Johns Hopkins School of Public Health. “That’s not an option here.”Aggressive reactions to tiny caseloads may seem overblown to observers in countries facing thousands of infections a day, but the aim is to snuff out coronavirus before more disruptive restrictions like months-long lockdowns are needed, and largely the strategy has worked. Still, the slower pace of vaccination in these places, and the threat of new variants, has meant that measures have become more and more onerous.New York currently logs 95 new daily cases per million people, and the U.S. has just lifted its mask mandate for those vaccinated. Singapore found 4.2 new cases per million on Thursday, and is warning that the situation is on a “knife’s edge;” the city-state introduced tighter border restrictions and limited social gatherings after the city of 5.7 million reported 60 locally transmitted infections in a week.Meanwhile, Taiwan recorded 16 local cases on Wednesday -- a daily record high -- and promptly restricted access to gyms and other public venues. In Hong Kong, anyone living in the same building as a person infected with a new Covid variant was required to spend as much as three weeks in government isolation until the policy changed last week. Australia has said that it likely won’t open its international borders until the second half of 2022.“Because we have been so successful, we are even more risk-averse than we were before,” said Peter Collignon, a professor of infectious diseases at the Australian National University Medical School in Canberra.“We are very intolerant of letting any Covid come into the country. The fear has almost gotten out of proportion to what the risk is.”Paying the PriceContinued isolation is the price these places will have to pay to maintain this approach in the longer term, as other parts of the world learn to tolerate some infections as long as medical systems aren’t overwhelmed.Most experts agree that the virus is unlikely to disappear completely. Instead, it is expected to become endemic, meaning it will circulate at some level without sparking the deadly outbreaks seen since late 2019.To maintain zero infection rates, these economies will have to implement measures that are harsher and more strict, said Donald Low, professor at the Institute of Public Policy of the Hong Kong University of Science and Technology.“This is neither wise nor tenable for much longer,” he said. “All this puts the places that have done well to suppress Covid-19 so far at a serious disadvantage as their societies -- not having been exposed to the possibility of Covid-19 becoming endemic -- are not willing to accept any relaxation of measures that may put their health at risk.”Meanwhile, many countries -- particularly those in the west that are awash in vaccines -- are starting to reopen.Travelers from England and Scotland will be permitted to visit a dozen countries without quarantining from 17 May. In the U.S., where about 35,000 people were diagnosed with the virus on May 12, the strict quarantine rules that prevented the import of the pathogen to Covid Zero countries never existed. Most states are starting to lift their pandemic restrictions and 25 have removed them completely.For Hong Kong and Singapore, the drawbacks of maintaining an elimination strategy as financial centers like London and New York City re-open may be significant. As aviation hubs and financial centers, both cities’ economies are particularly reliant on travel, compared to export-led economies such as China and Australia that can stomach being shut for longer. In 2019, Hong Kong was the world’s most popular city with international visitors -- even after months of political unrest -- while Singapore came in fourth place. London was at No. 5 and New York at No. 11.Vaccination LagA major obstacle to reopening is the slow vaccine rollout in these Covid havens, due to a combination of supply limitations and citizens’ lack of urgency about fronting up for shots.China has administered enough vaccinations for about 12% of its population. In Australia the figure is 5% and in New Zealand, just 3%. Meanwhile, more than one-third of the U.S. -- and more than one quarter of the U.K. -- is fully protected, as those countries’ failure to mitigate the spread of Covid meant vaccination was prioritized.In places with very few infections, the public hasn’t developed the searing fear of the virus that emerged in the U.S., Europe, India and Brazil, where many families were cut off from dying loved ones or left unable to visit elderly relatives in care facilities.In fact many residents fear the vaccine more than the virus. Reports of routine side effects including fever and injection-site pain, as well as rare and potentially deadly complications like blood clots, have put people off. The lack of an immediate threat from Covid means some people would rather wait until the vaccines are more progressed.New VariantsNot everyone agrees that elimination can’t be pursued long-term. For Michael Baker, professor of public health at the University of Otago in Wellington, New Zealand, the approach’s benefits are evident in how deaths in the country -- from any cause -- actually dropped in 2020.“The evidence is overwhelming for zero Covid if you can achieve it,” he said. “If there had been the commitment to having elimination as the first option, we may have been able to eliminate it entirely and avoided this global disaster.”He’s still hopeful that the strategy will be more broadly adopted with the help of vaccination, so that coronavirus will follow the measles model rather than an endemic one.“With the measles approach, you largely stop outbreaks in every country that has high coverage,” he said.Nonetheless, Covid havens face a growing dilemma. If vaccinations don’t pick up pace, they risk being stuck in a perpetual cycle, unable to move past the pandemic.“If their vaccination rates are low, that further jeopardizes their ability to open up,” Low said. “If so, the earlier ‘victory’ of these places over Covid-19 would have been a Pyrrhic one.”(Updates to add daily case data for New York and Singapore and to reflect new U.S. mask rules.)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. Business Bloomberg 210513 18h52m MSCI China Enters Bear Market After Tech Selloff; Alibaba Slumps (Bloomberg) -- China’s most widely-followed stock benchmark tumbled into a bear market after a selloff in some of the nation’s biggest technology firms.The MSCI China Index slid 3% Thursday, extending losses from its mid February high to more than 20%. This is the second time the gauge has fallen into a bear market in a little over a year. Last March, major equity benchmarks slumped following the spread of the Covid-19 pandemic.Meituan Shares Drop for 10th Session on Consumer Group CriticismStock benchmarks in Hong Kong and on the mainland are among the world’s worst performers since February as Beijing cracks down on heavyweight tech firms over monopolistic practices, further worsening investor sentiment already soured by concerns of liquidity tightening in China.“I wouldn’t be at all surprised if we were to see an ongoing 10% correction in the MSCI China over the next quarter or so,” John Woods, Asia Pacific chief investment officer at Credit Suisse Group AG, told Bloomberg TV on May 12, citing increased regulatory intervention as a top concern. “This is weighing on the extremely important tech sector.”Tencent Holdings Ltd., Alibaba Group Holding Ltd. and Meituan have accounted for more than 40% of the index’s decline since the February high, Bloomberg data show. Alibaba tumbled to the lowest in almost a year in New York, after reporting its first quarterly loss since 2012 on Thursday. Investors were disappointed about its results and concerned that its spending outlook could pressure margins.Read: Alibaba Hits Lowest Since June on Spending Plans: Street WrapA Hong Kong gauge tracking Chinese technology stocks has lost more than 30% since a February high. Beijing had pledged to curb the “reckless” push of technology firms into finance and crack down on monopolies online. It has forced Jack Ma’s Ant Group Co. to revamp its businesses and fined giants including Tencent and Meituan for violating anti-trust regulations. This week, Meituan slumped after its CEO posted a poem seen as critical of Beijing.(Updates details in the fifth and 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. Business Reuters 210513 18h47m UPDATE 1-Taiwan premier says no need to raise COVID-19 alert level for now Taiwan Premier Su Tseng-chang said on Friday that there is no need to raise the island's COVID-19 alert level for the time being and that compared with last year it has more experience and resources to fight the pandemic. While Taiwan has reported just 1,233 cases, mostly imported from abroad, out of a population of some 24 million, a recent small rise in domestic infections has spooked Taiwan's people and the stock market. "With the cooperation of the central and local governments, the command centre has successively found the transmission chain between the confirmed cases, and there is no need to upgrade (the alert level) for the time being." Business Reuters 210513 18h43m Cohen's Point72 exploring crypto sector, has no firm plans - letter Billionaire investor Steven A. Cohen's Point72 Asset Management is exploring the $2 trillion cryptocurrency market but has not made any plans on how to trade it, according to a letter sent to clients on Thursday. "We would be remiss to ignore a now $2 trillion cryptocurrency market," the note said, explaining that Cohen and his team constantly evaluates new market opportunities. Business Bloomberg 210513 18h38m Fisker Soars as EV Deal With Foxconn to Include U.S. Factory (Bloomberg) -- Fisker Inc.’s existing agreement to develop an electric vehicle with Foxconn Technology Group will now include a factory in the U.S., the companies said in a statement Thursday.The joint project -- codenamed Project PEAR -- is targeting a start of production in the U.S. by the fourth quarter of 2023. The companies said they’re considering multiple sites around the world to support eventual global manufacturing capacity of 250,000 units a year. The partners plan to unveil a prototype of their jointly developed car later this year.Los Angeles-based Fisker’s shares rose as much as 22% to $12.13 in late trading in New York. The stock is down 32% this year through Thursday’s close. Hon Hai Precision Industry Co., the main listed arm of Foxconn, is up 12% for the year in Taipei.Electric vehicles have risen in prominence in recent months, with everyone from established automakers like Geely to smartphone purveyor Xiaomi Corp. making big investments in the category. Foxconn has an EV platform that will be used to launch two light vehicles in the fourth quarter of this year, Chairman Young Liu said in February. The company has also inked a manufacturing deal with Chinese startup Byton Ltd. and been among a coterie of suppliers and assemblers linked with a potential Apple Inc. car.Read more: IPhone Maker Foxconn to Help Launch Electric Cars This YearFisker is one of a wave of startups to go public via a special purpose acquisition company, or SPAC, and seek a fast-track challenge to Tesla Inc. in the EV market. It’s also the second battery-powered-car venture founded by its namesake founder and chief executive officer, Henrik Fisker, a longtime auto designer. Fisker’s first venture, Fisker Automotive, filed for bankruptcy in 2013.Under the agreement, Fisker and Foxconn will jointly invest in Project PEAR -- short for Personal Electric Automotive Revolution -- with each company taking proceeds if the launch is successful. Foxconn has said it will decide between Mexico and Wisconsin for the site of its first electric-car plant this year. The companies didn’t disclose any specifications of the vehicle they’re developing.The companies said the jointly developed vehicle will be priced below $30,000. Taiwan-based Foxconn, best known for assembling iPhones, is the second major manufacturer with which Fisker has announced a partnership since reaching a deal to go public last year. In October, the EV startup said Magna International Inc. would help it build its debut model. The Ocean electric SUV is scheduled to start production in late 2022 at a Magna facility in Graz, Austria.(Updates with other Foxconn EV projects 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. Business Bloomberg 210513 18h34m Asian Stocks Open Higher Following U.S. Rebound: Markets Wrap (Bloomberg) -- Asia stocks climbed after U.S. benchmarks halted a three-day slide, with investors migrating to value from growth companies as signs of a strengthening labor market tempered inflation worries.Indexes in South Korea, Australia and Japan also gained for the first time in four sessions. Investors will be watching China’s open after MSCI Inc.’s index covering the country’s stocks fell into bear-market territory. U.S. futures edged higher, following gains in the major benchmarks. Industrial and financial shares outperformed overnight, while energy producers joined a slump in oil.Tesla Inc. fell after Chief Executive Officer Elon Musk said the electric-car maker is suspending purchases using Bitcoin over environmental concerns. Bitcoin pared some of the losses sparked by Musk’s comments, trading around $50,000. Coinbase Global Inc. fluctuated in late U.S. trade as the biggest U.S. cryptocurrency exchange reported revenue below Wall Street estimates.Markets appear to have recovered from a bout of volatility following an unexpectedly sharp increase in the U.S. consumer price index. The latest data reinforced inflation pressures, with producer prices outpacing forecasts, but a drop in jobless claims helped sentiment. Fed Governor Christopher Waller reiterated the central bank’s view that the economic reopening is driving a temporary surge in price pressures, though they may last through 2022.“We see 10-year yields move up, we see inflation expectations move up, but as long as the underlying economic backdrop is still doing just fine it should power that value trade generally,” Lori Calvasina, RBC Capital Markets head of equity strategy, said on Bloomberg TV. “We’re going to have some interesting days but the runway is there from an economic perspective for this rotation to keep going.”Treasuries rallied from the prior session’s weakness, with the 10-year yield easing to 1.66% despite a lackluster auction of 30-year bonds. The Federal Reserve tweaked its purchasing plan to focus more on longer-dated Treasuries, while leaving the $80 billion monthly total unchanged.Meanwhile, concerns about a possible pullback in Fed support have stalled the rally in commodities. Oil slumped the most in over a month as growing inflation concerns raise the specter of a less accommodative central bank.The MLIV Question of the Day is: When Can Crypto Reach Mainstream Investing?These are some of the main moves in markets:StocksS&P 500 contracts climbed 0.1% as of 9:18 a.m. in Tokyo. The S&P 500 rose 1.2%Nasdaq 100 futures were steady. The index advanced 0.8%Japan’s Topix Index rose 1.4%Australia’s S&P/ASX 200 was up 0.8%South Korea’s Kospi gained 0.8%Hong Kong’s Hang Seng futures rose 0.7% earlierCurrenciesThe Bloomberg Dollar Spot Index edged higherThe euro was at $1.2077The British pound traded at $1.4043The Japanese yen was at 109.54 per dollarBondsThe yield on 10-year Treasuries was steady at 1.66%Australia’s 10-year yield slipped two basis points to 1.80%CommoditiesWest Texas Intermediate crude edged down to $63.78 a barrel, after falling 3.4% in U.S. hoursGold futures traded at $1,824.85 an ounceFor 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. Howell date : 210513 18h14m54s World Reuters 210513 18h03m Mainland China reports 7 new COVID-19 cases vs 9 a day earlier Mainland China reported seven new COVID-19 cases on May 13, down from nine cases a day earlier, the country's national health authority said on Friday. Two of the new cases were local infections in Anhui province, the National Health Commission said in a statement. The number of new asymptomatic cases, which China does not classify as confirmed cases, rose to 22 from 14 cases a day earlier. U.S. Reuters 210513 17h45m U.S. will not immediately lift mask rules in air, public transit The Biden administration's requirements that people wear masks on U.S. airplanes, public transport, airports and ride-hailing vehicles are not expected to be lifted anytime soon, despite an easing in the rules for mask-wearing elsewhere. But it said workers and travelers should still follow federal requirements to wear masks in transit and in airports and train stations. There are no requirements that passengers get vaccinated to use transit systems and the Biden administration has opposed the idea of making vaccine passports mandatory. Business Bloomberg 210513 17h38m Chile Pledges Record-Low Key Rate Until Recovery Takes Hold (Bloomberg) -- Chile’s central bank held its benchmark interest rate at a record low and said borrowing costs would stay at that level as long as needed for the economic recovery to strengthen.The bank board, led by its President Mario Marcel, kept the overnight rate at 0.5% on Thursday. In an accompanying statement, policy makers wrote that economic prospects have improved.“The convergence of inflation to the target over the policy horizon still requires the monetary stimulus to be highly expansionary,” policy makers wrote. They added that the key rate “will be kept at its minimum of 0.5% for as long as it is deemed necessary for the recovery of the economy to take hold,” while dropping a previous reference to a time frame of several quarters.“That change is more hawkish, without a doubt,” said Sergio Godoy, chief economist at STF Capital. “While it’s not clear if they will raise rates this year, it’s now more probable that it will happen.”Chile’s central bank is keeping its stimulus in place even amid forecasts of stronger 2021 growth, driven by an effective vaccine roll-out, consumer demand backed by a third round of pension fund withdrawals and higher prices for copper, which is the country’s top export. On the other hand, headwinds include high unemployment and a slower pick-up in sectors including services.What Bloomberg Economics Says“The central bank is more constructive about the economic outlook and still confident that inflation will remain in line with the target. Together with forward guidance the outlook supports expectations for the central bank to hold the benchmark interest rate in the short term and start slowly increasing it early next year.”--Felipe Hernandez, Latin America economist3% TargetPrivate sector economists raised their growth estimate for this year to 6.2%, according to the central bank’s most recent survey published this week. They also see year-end inflation of 3.3%, above the 3% target.Read more: Latin American Central Bankers Stung by Food Inflation JumpIn their statement, policy makers wrote both headline and core inflation have continued to hover around target. Recent prices have been driven by food and gasoline, and board members noted “there has been continued high demand together with production and supply difficulties in several goods.”Rising commodity prices and increasing inflationary pressures have led other emerging markets to raise borrowing costs. Brazil has increased its key rate twice this year and has signaled more increases are ahead.Policy makers are also on hold as Chile enters what many expect to be a period of fraught national politics. On May 15-16, citizens will vote for members of the body that will write a new constitution, as well as governors, mayors and city council members. The result are likely to shape the upcoming presidential elections scheduled to take place in November.Since the central bank’s last rate decision in March, the government has eased some mobility restrictions, including parts of the capital, Santiago. More than 7 million Chileans have already received two doses of vaccines, out of a total population of over 18 million.(Re-casts story, adds economist quotes in 4th and 6th 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. Business Bloomberg 210513 17h35m Tesla’s Musk Renews Critique of Bitcoin, Talks Up Dogecoin (Bloomberg) -- Elon Musk stepped up his criticism of Bitcoin as environmentally unsustainable while also signaling support for another digital coin and saying he remains a believer in cryptocurrency.The Tesla Inc. chief executive officer said in a tweet Thursday he worries about “massive use” of coal and other carbon-intensive energy to generate electricity needed to mine digital currency. That followed an earlier Twitter post of a chart from the University of Cambridge showing Bitcoin’s electricity consumption has skyrocketed this year.It marked the second day he’s criticized crypto mining and follows a decision to suspend Tesla car purchases using Bitcoin, a move that roiled digital currency markets over the past 24 hours.But Musk also signaled his support for another digital currency Thursday in a separate tweet that said he is working with Dogecoin developers to “improve system transaction efficiency.”Cryptocurrency ChampionMusk has been an early corporate champion of adopting digital currencies and has helped spur the popularity of Dogecoin, a cryptocurrency started as a joke in 2013.In February, Tesla said it had purchased $1.5 billion in Bitcoin and planned to accept it as a payment, triggering a rally in its own stock as well as the currency. But the about-face on Wednesday sent the value of it and other cryptocurrencies sliding.Bitcoin remained not far from the lowest levels of the day after Musk’s latest tweet. The largest cryptocurrency fell 0.4% to $49,128 as of 6:58 a.m. in Hong Kong on Friday, after dropping 9.5% on Thursday, according to composite pricing from Bloomberg. Dogecoin was up 10% in the past hour, according to CoinGecko.com.Tesla shares rose 0.3% in postmarket trading in New York after closing down 3.1% to $571.69. The stock is down about 19% this year.(Updates with new Musk tweet in fourth paragraph. An earlier version was corrected to state Musk helped popularize Dogecoin.)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. Business Bloomberg 210513 17h31m Asian Stocks Set to Rally Following U.S. Rebound: Markets Wrap (Bloomberg) -- Stocks in Asia look set to rally after U.S. benchmarks halted a three-day slide, with investors migrating to value from growth companies as signs of a strengthening labor market tempered inflation worries.Futures pointed higher in Japan, Hong Kong and Australia. Investors will be watching China’s open after MSCI Inc.’s index covering the country’s stocks fell into bear-market territory.U.S. contracts fluctuated after gains in the major benchmarks overnight. Industrial and financial shares outperformed, while energy producers joined a slump in oil. Tesla Inc. fell after Chief Executive Officer Elon Musk said the electric-car maker is suspending purchases using Bitcoin over environmental concerns. Bitcoin pared some of the losses sparked by Musk’s comments but remains under pressure, trading below $50,000. Coinbase Global Inc. fluctuated in late trading as the biggest U.S. cryptocurrency exchange reported revenue below Wall Street estimates.Markets appear to have recovered from a bout of volatility following an unexpectedly sharp increase in the U.S. consumer price index. The latest data reinforced inflation pressures, with producer prices outpacing forecasts, but a drop in jobless claims helped sentiment. Fed Governor Christopher Waller reiterated the central bank’s view that the economic reopening is driving a temporary surge in price pressures, though they may last through 2022.“We see 10-year yields move up, we see inflation expectations move up, but as long as the underlying economic backdrop is still doing just fine it should power that value trade generally,” Lori Calvasina, RBC Capital Markets head of equity strategy, said on Bloomberg TV. “We’re going to have some interesting days but the runway is there from an economic perspective for this rotation to keep going.” Treasuries rallied from the prior session’s weakness, with the 10-year yield easing to 1.66% despite a lackluster auction of 30-year bonds. The Federal Reserve tweaked its purchasing plan to focus more on longer-dated Treasuries, while leaving the $80 billion monthly total unchanged.Meanwhile, concerns about a possible pullback in Fed support have stalled the rally in commodities. Oil slumped the most in over a month as growing inflation concerns raise the specter of a less accommodative central bank.These are some of the main moves in markets:StocksS&P 500 contracts climbed 0.1% as of 8:18 a.m. in Tokyo. The S&P 500 rose 1.2%Nasdaq 100 futures were steady. The index rose 0.8%Japan’s Nikkei 225 futures were up 0.7%Australia’s S&P/ASX 200 futures climbed 0.7%Hong Kong’s Hang Seng futures rose 0.7% earlierCurrenciesThe Bloomberg Dollar Spot Index was steadyThe euro was at $1.2079The British pound traded at $1.4049The Japanese yen was at 109.48 per dollarBondsThe yield on 10-year Treasuries declined three basis points to 1.66%Australia’s 10-year yield slipped two basis points to 1.80%CommoditiesWest Texas Intermediate crude was steady around $63.83 a barrel, after falling 3.4% in U.S. hoursGold futures traded at $1,825.77 an ounceFor 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. Business Reuters 210513 17h31m Dogecoin pops after Musk tweets about 'promising' system improvements Cryptocurrency dogecoin jumped as much as 20% on Friday after Tesla boss Elon Musk said he was involved in work to improve the token's transaction efficiency. Near worthless in late 2020, dogecoin has surged to become the fourth-largest cryptocurrency by market cap, according to CoinMarketCap.com, and is up more than a hundredfold this year as speculators have piled in to the asset class. Howell date : 210513 17h14m17s Business Bloomberg 210513 17h01m Colonial Pipeline Paid Hackers Nearly $5 Million in Ransom (Bloomberg) -- Colonial Pipeline Co. paid nearly $5 million to Eastern European hackers on Friday, contradicting reports earlier this week that the company had no intention of paying an extortion fee to help restore the country’s largest fuel pipeline, according to two people familiar with the transaction.The company paid the hefty ransom in difficult-to-trace cryptocurrency within hours after the attack, underscoring the immense pressure faced by the Georgia-based operator to get gasoline and jet fuel flowing again to major cities along the Eastern Seaboard, those people said. A third person familiar with the situation said U.S. government officials are aware that Colonial made the payment.Once they received the payment, the hackers provided the operator with a decrypting tool to restore its disabled computer network. The tool was so slow that the company continued using its own backups to help restore the system, one of the people familiar with the company’s efforts said.A representative from Colonial declined to comment. Colonial said it began to resume fuel shipments around 5 p.m. Eastern time Wednesday.When Bloomberg News asked President Joe Biden if he was briefed on company’s ransom payment, the president paused, then said: “I have no comment on that.”The hackers, which the FBI said are linked to a group called DarkSide, specialize in digital extortion and are believed to be located in Russia or Eastern Europe.On Wednesday, media outlets including the Washington Post and Reuters, also based on anonymous sources, reported that the company had no immediate intention of paying the ransom.Ransomware is a type of malware that locks up a victim’s files, which the attackers promise to unlock for a payment. More recently, some ransomware groups have also stolen victims’ data and threatened to release it unless paid -- a kind of double extortion.The FBI discourages organizations from paying ransom to hackers, saying there is no guarantee they will follow through on promises to unlock files. It also provides incentive to other would-be hackers, the agency says.However, Anne Neuberger, the White House’s top cybersecurity official, pointedly declined to say whether companies should pay cyber ransoms at a briefing earlier this week. “We recognize, though, that companies are often in a difficult position if their data is encrypted and they do not have backups and cannot recover the data,” she told reporters Monday.Such guidance provides a quandary for victims who have to weigh the risks of not paying with the costs of lost or exposed records. The reality is that many choose to pay, in part because the costs may be covered if they have cyber-insurance policies.“They had to pay,” said Ondrej Krehel, chief executive officer and founder of digital forensics firm LIFARS and a former cyber expert at Loews Corp., which owns Boardwalk Pipeline. “This is a cyber cancer. You want to die or you want to live? It’s not a situation where you can wait.”Krehel said a $5 million ransom for a pipeline was “very low.” “Ransom is usually around $25 million to $35 million for such a company. I think the threat actor realized they stepped on the wrong company and triggered a massive government response,” he said.A report released last month by a ransomware task force said the amount paid by victims increased by 311% in 2020, reaching about $350 million in cryptocurrency. The average ransom paid by organizations in 2020 was $312,493, according to report.Colonial, which operates the largest fuel pipeline in the U.S., became aware of the hack around May 7 and shut down its operations, which led to fuel shortages and lines at gas stations along the East Coast.(Updates with comment from President Biden in fifth 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. Health Reuters 210513 17h01m Delayed second Pfizer COVID-19 shot produces more antibodies -study Pfizer's COVID-19 vaccine generates antibody responses three-and-a-half times larger in older people when a second dose is delayed to 12 weeks after the first, a British study said. The study released on Friday is the first to directly compare immune responses of the Pfizer shot from the three-week dosing interval tested in clinical trials, and the extended 12-week interval that British officials recommend in order to give more vulnerable people at least some protection quickly. Business Bloomberg 210513 16h55m Roaring Crypto Cacophony Drowns Out Rest of Wall Street (Bloomberg) -- Wild stock swings, spikes in Treasury yields, startling economic readings? Interesting, sure. But if you really want to get people’s attention right now, you need to tell them a story about crypto.And there have been a lot of those. Even for a market that’s famous for its wild volatility and gimmicks, the past week’s cryptocurrency news set new records for jaw-droppers.It began with Elon Musk’s highly anticipated appearance as host on “Saturday Night Live.” Dogecoin owners watched hoping that the “Dogefather” would further propel the digital currency that had soared this year from less than a penny to 74 cents before he took the stage.What they got instead was a skit in which he laughed after calling the coin a “hustle.” Since then, the Shiba Inu-branded coin created as a joke has lost almost half of its value.Dogecoin wasn’t the only canine-themed coin to take a tumble.Shiba Inu coin -- yes, a meta joke about the joke that is Dogecoin -- soared earlier in the week as it was added to exchanges like OKEx and Binance. It and other Dogecoin imitators’ popularity reached such heights that transaction fees on the Ethereum network hit an all-time high, according to CoinDesk.The rally faded quickly. The cryptocurrency plunged Wednesday after the Wall Street Journal reported that Ethereum creator Vitalik Buterin donated more than $1 billion of the coin to a charity that is fighting the spread of Covid-19 in India.Then that night, Musk struck again. He announced that Tesla Inc. would no longer accept Bitcoin as a form of payment for its cars. In a tweet, Musk said that the carmaker was “concerned about rapidly increasing use of fossil fuels for Bitcoin mining and transactions, especially coal, which has the worst emissions of any fuel.”While his tweet left Bitcoin holders wondering what spurred the change -- the facts of the coin’s energy profile hadn’t changed since Tesla announced in March that it would accept it as payment -- the market reacted swiftly. Bitcoin plunged from nearly $57,000 before his flip-flop to $46,000 within two hours.Thursday brought some good news for crypto die-hards. Point72, the hedge fund run by billionaire New York Mets owner Steve Cohen, was set to make a sizable move into the market. Bitcoin gained 2.5% following the news.The rally didn’t last long.Tether, the crypto stablecoin that says it’s backed one-for-one by fiat currencies, released a reserves breakdown for the first time that showed a large portion in unspecified commercial paper. The company has faced questions over both its reserves and whether it was used to manipulate cryptocurrency prices. In February, Tether settled a legal dispute with the New York Attorney General’s Office and paid a fine of $18.5 million.After that, reports surfaced that Colonial Pipeline Co. paid nearly $5 million in untraceable cryptocurrency to the hackers that infiltrated the company’s network and forced the shutdown of its infrastructure, setting off widespread gasoline shortages up the U.S. eastern seaboard.At about the same time, Bloomberg reported that Binance Holdings Ltd., the world’s biggest cryptocurrency exchange, was under investigation by the Justice Department and Internal Revenue Service in relation to possible money-laundering and tax offenses.News of the investigation sent Bitcoin and Ethereum, the two largest cryptocurrencies, down by more than 7% each as fears were stoked about the Biden administration taking a tougher approach toward an industry that has largely operated outside of the gaze of regulators.Then at 4:00 p.m. New York time, Coinbase Global, Inc., the biggest U.S. crypto exchange, reported first-quarter earnings. Its revenues fell just short of consensus estimates and the company projected flat user growth. Coinbase also plans to offer Dogecoin trading on its platform. The exchange’s shares fell as much as 6.5% in after-hours trading before recovering.Friday in Asia is already bringing further drama, beginning with more comments from Musk. The billionaire in a tweet said he “strongly” believes in crypto but that “it can’t drive a massive increase in fossil fuel use, especially coal.”Not long after, he followed up with another post saying that he’s working with Dogecoin “devs to improve system transaction efficiency,” describing the effort as “potentially promising.”(Updates with more comments from Musk in the penultimate 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. Business Reuters 210513 16h50m UPDATE 1-Airbnb bookings jump 52% as vaccinations spur vacation rental demand Airbnb Inc beat Wall Street expectations for first-quarter gross bookings and revenue on Thursday, as speedy COVID-19 vaccinations and easing restrictions encouraged more people to check into its vacation rentals. Gross bookings jumped 52% to $10.29 billion in the quarter, easily beating analysts' estimates of $6.93 billion. "For guests aged 60 and above in the U.S., who were amongst the first groups to benefit from vaccine rollouts, searches on our platform for summer travel increased by more than 60% between February and March 2021," Airbnb said. Business Bloomberg 210513 16h42m Tesla’s Musk Renews Environmental Critique of Bitcoin (Bloomberg) -- Elon Musk stepped up his criticism of Bitcoin by saying he believes in digital currencies but that environmentally unsustainable mining of cryptocurrency outweighs its benefits.The Tesla Inc. chief executive officer said in a tweet Thursday he worries about “massive use” of coal and other carbon-intensive energy to generate electricity needed to mine digital currency. He also reiterated his call for a carbon use tax in a separate tweet.Earlier, Musk posted a chart on Twitter from the University of Cambridge showing Bitcoin’s electricity consumption has skyrocketed this year. It’s the second day he’s criticized crypto mining and follows a decision to suspend Tesla car purchases using Bitcoin.In February, Tesla said it had purchased $1.5 billion in Bitcoin and planned to accept it as a payment, triggering a rally in its own stock as well as the currency. But the about-face on Wednesday sent the value of it and other cryptocurrencies sliding.Bitcoin remained not far from the lowest levels of the day after Musk’s latest tweet. The largest cryptocurrency was down about 9% to $49,700 as of 5:30 p.m. In New York, though off the lows of around $46,000 reach earlier.Musk has been an early corporate champion of adopting digital currencies and has helped spur the popularity of Dogecoin, a cryptocurrency started as a joke in 2013.Tesla shares rose 0.3% in postmarket trading after closing down 3.1% to $571.69. The stock is down about 19% this year.(Corrects to state in that Elon Musk helped popularize Dogecoin 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. Politics Bloomberg 210513 16h26m Valero Secures Biden’s First Jones Act Waiver for Foreign Tanker (Bloomberg) -- The Biden administration temporarily eased century-old U.S. shipping requirements so a foreign tanker could transport gasoline and jet fuel to the East Coast for Valero Energy Corp. to the East Coast, according to two people familiar with the matter.The waiver announced on Thursday gives the refiner a limited exemption from 101-year-old Jones Act requirements that goods transported between U.S. ports be carried on domestically built and crewed ships.Homeland Security Secretary Alejandro Mayorkas announced the waiver without specifying the recipient. A White House official later said the exemption applied to one tanker but other waiver requests were under consideration.“We’ll grant additional waivers if necessary,” President Joe Biden said in remarks at the White House.The move is designed to address fuel shortages spurred by the cyberattack on the Colonial Pipeline, which shut down a major artery for gasoline, diesel and jet fuel across the U.S. East Coast. Even with shipments resuming Wednesday evening, it’s unclear how long it will take for the network to return to normal.Valero didn’t comment on the waiver but released a statement that said it’s “working with the government to help supply fuel for those areas impacted by the pipeline outage.”Gasoline stations from Florida to Virginia ran dry after Colonial Pipeline Co. was forced to take systems offline late last week, and pump prices soared above $3 a gallon for the first time in six years.“This waiver will enable the transport of additional gas and jet fuel between the Gulf Coast and East Coast ports to ease supply constraints,” White House Press Secretary Jen Psaki said in a statement.What the Jones Act Has to Do With Your Car’s Gas Tank: QuickTakeWhile the government has temporarily lifted U.S. shipping requirements to combat fuel shortages after major storms, the issue is politically fraught. The Jones Act is championed by some of the nation’s biggest shipbuilders and vessel operators, as well as their allies on Capitol Hill. It also has the backing of a key Biden constituency in organized labor, including the Seafarers International Union.The American Maritime Partnership, a group that represents U.S.-flagged ship owners and has opposed efforts to scale back Jones Act protections, said it didn’t object to “the targeted approach of the administration.”But, Mike Roberts, the group’s president said in a statement, that it “strenuously encourages all policy makers to hold accountable those who seek to benefit from any waiver to avoid undermining American jobs and consumers.”Waiving the requirements allows foreign-flagged tankers to fill the supply gap left by the interruption to the pipeline. It would take an estimated six to seven days for a tanker to carry fuel from the Gulf Coast to New York Harbor. By contrast, a shipment of fuel from Europe could arrive in 10 to 14 days. A single cargo delivery into the East Coast is usually about 300,000 barrels (12.6 million gallons).“We believe widespread panic buying, coupled with the one- to two-week time frame for fuel to reach delivery points along the pipeline created an opening for a non-U.S. tanker,” Height Capital Markets analyst Josh Price said in a research note for clients.Read more: Biggest U.S. Gasoline Pipeline Restarts After CyberattackUnder federal law, the U.S. could waive Jones Act shipping requirements if “necessary in the interest of national defense.” However, first, the Maritime Administration “would have to determine that qualified U.S.-flag vessels cannot meet the need,” said Charlie Papavizas, an expert in Jones Act law at Winston & Strawn LLP.The Maritime Administration completed a survey of available Jones Act-compliant tankers on Tuesday, though the results have not been made public.(Updates with detail on waiver recipient from first 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. Howell date : 210513 16h13m41s Business Yahoo Finance Video 210513 15h50m Technovation helps young women through digital learning Technovation CEO and founder Tara Chklovski joined Yahoo Finance to disucss the latest in her non-profit venture. Business Reuters 210513 15h44m U.S. SEC chair planing new workforce data disclosures for public companies The U.S. Securities and Exchange Commission (SEC) plans to propose a rule requiring that public companies disclose a range of workforce data as the agency steps up environmental, social and governance (ESG) disclosures, its new chair, Gary Gensler, said on Thursday. Gary Gensler told an audience of agency and academic researchers that "investors increasingly want to understand information about...one of the most critical components of companies, their workforce." Business Yahoo Finance Video 210513 15h34m Airbnb stock drops after earnings report Yahoo Finance's Melody Hahm breaks down Airbnb's most recent earnings report. Politics Reuters 210513 15h32m UPDATE 1-U.S. trade chief: new legal tools needed to combat future China threats The United States needs new trade law tools to head off anti-competitive threats from China against key American high-technology industries, rather than reacting once harm is done, U.S. Trade Representative Katherine Tai said on Thursday. Tai told a U.S. House Ways and Means Committee hearing that existing trade law tools are more aimed at protecting U.S. industries and companies after they have already been injured by illegal price dumping and subsidies or other unfair competition. "I would really like to strengthen the trade tools that we have to address the problems we have today," Tai said, adding that many of the U.S. trade laws are nearly 50 or 60 years old. Business Reuters 210513 15h31m State Street to pay $115 million criminal fine for overcharges - U.S. Justice (Reuters) -State Street Corp agreed to pay a $115 million criminal penalty and enter a deferred prosecution agreement to resolve charges the bank defrauded customers by secretly overcharging them for back-office expenses, the U.S. Department of Justice said on Thursday. According to settlement papers, State Street admitted that from 1998 to 2015 its executives defrauded customers out of more than $290 million through hidden markups. The Boston-based company also admitted that its executives tried to conceal the markups by leaving the details off invoices and "actively" misleading customers who questioned them. Business Bloomberg 210513 15h29m Asian Stock Index Enters Correction on Inflation, Virus Woes (Bloomberg) -- Asian stocks slumped Thursday, with the regional benchmark entering a technical correction, as mounting worries over inflation and a resurgence in Covid-19 cases soured investor sentiment.The MSCI Asia Pacific Index slumped 1.8%, taking its loss from a Feb. 17 peak to more than 10% and wiping out its gain for the year. Asian equities tracked losses in American shares after data on Wednesday showed U.S. consumer prices climbed in April by the most since 2009.“We need to kind of price in a more normal interest-rate environment, more normal inflation environment,” said Ken Peng, head of Asia investment strategy at Citigroup Inc.’s private-banking arm. “The shake up could last a while longer. But I’m still not too worried because growth will come back to be the most important element once interest rates normalize.”The selloff in Asia is part of this week’s rout in global equities as an explosive rally in commodity prices threatens to push up inflation. The region is also battling a fresh surge in coronavirus infections in several countries including India, Japan and parts of Southeast Asia, with slow vaccine rollouts and delays in reopening borders compounding concerns for equity investors.Tech stocks, which have been at the forefront of the recent slump, were the biggest drag on the Asian gauge Thursday. While the sector globally is having to contend with higher U.S. bond yields and stretched valuations, sentiment in Asia has also been hurt by regulatory tightening in China.Global LaggardSeasonality also seems to be playing a role. May has historically been the worst month for the MSCI Asia Pacific Index, with the benchmark averaging a 2% decline over the past 10 years, according to data compiled by Bloomberg. It is already down 4.1% so far this month.As a result, regional stocks are sharply underperforming their peers in the U.S. and Europe in 2021 after leading global equity gains last year. While the Asian benchmark is now down 1% year-to-date, the S&P 500 Index and the Stoxx 600 Index are both up more than 9%.“I suppose there’s the worry now we’ve hit something of a short-term peak for equity valuations in Asia,” said Kyle Rodda, an analyst at IG Markets Ltd. in Melbourne.There are a few headwinds sapping the appeal for Asian equities, he said. “Fed tightening is obviously a pressing concern right now -- being, technically speaking, quite EM sensitive, tighter financial conditions globally are a worry. Also, there’s the creeping concern that China’s economy is plateauing, meaning growth in the region is practically discounted.”Chinese shares snapped a two-day winning run on Thursday while stocks in Japan declined for a third day. Markets in Singapore, India, Indonesia, Malaysia and the Philippines were shut for a holiday.In Taiwan, the benchmark stock index extended losses after slumping the most since March last year on Wednesday partly due to concern over tightening of virus-linked restrictions.READ: Taiwan’s Stock Crash Deepens as Traders Unwind Leveraged BetsRecent fund flows suggest interest from global investors in Asian stocks is also lagging that in other regions. Since the beginning of the second quarter, more than $36 billion has flowed into North American and European equity funds compared with just $2 billion into Asian ones, according to a May 7 report from EPFR.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. Business Bloomberg 210513 15h26m Colonial Restarts Pipeline With Supply Chain Far From Normal (Bloomberg) -- The largest fuel pipeline in the U.S. restarted its entire system after a cyberattack nearly a week ago, but said it will take several days for the supply chain to return to normal.Colonial Pipeline Co. has started delivering products like gasoline, diesel and jet fuel to all of the markets it serves, the pipeline operator said in a statement on Thursday, but some areas may experience service interruptions during the restart process. The system, which transports products from Gulf Coast refineries as far north as New York, is running at less than half of capacity, according to people familiar with the matter.Earlier, it emerged that the operating company paid almost $5 million in untraceable cryptocurrency to Eastern European hackers last week to help get gasoline and jet fuel flowing again along the Eastern Seaboard. Fuel shortages from Florida to Virginia continue and Colonial said its system is about 5.5 days behind its current schedule. In a message to filling stations, U.S. President Joe Biden said in a White House briefing on Thursday, “Do not -- I repeat, do not -- try to take advantage of consumers during this time.”The attack on Colonial occurred just weeks before the U.S. Memorial Day Holiday and the start of the summer driving season, with many Americans expected to eagerly take to the roads and the skies after pandemic-induced lockdowns. Over the last few years, attacks by hackers to critical energy infrastructure have become more common. In 2018, a cyberattack brought down a third-party communications system used by several natural gas pipelines operators across the U.S.Earlier in the week, average U.S. pump prices surged above $3 a gallon for the first time in six years as motorists raced to fill tanks. More than half of stations in Virginia, North Carolina and South Carolina are still without fuel on Thursday, according to retail-tracker GasBuddy. And in Miami, an area not even directly fed by the pipeline, nearly 40% of stations are without gasoline.Hospitals, railroads and ambulance services that rely on fuel for generators are the main priority as supply trickles in, said Cheryl Waters, president of Atlanta Fuel Company, which services customers in states including Georgia, North Carolina and east Alabama. She expects it will take 10-14 days for her company’s operations to return to normal.“We’re just being very careful with who we sell our fuel to,” said Waters. “We’re saving it back for our essential businesses.”While Colonial works to resume normal operations, it said that some line segments were operated manually and may be ahead of the 5.5 day estimated delay. Meanwhile, TravelCenters of America is also curbing purchases in some regions, including parts of Tennessee. Trot Raney, a trucker from Wake Forest, North Carolina, shared with Bloomberg photos of signs advising $200 limits on diesel purchases at a TCA in Knoxville. He said he was taking a few days off to avoid the shortages.“We may be limiting the amount of gallons per purchase depending on location and supply availability in the local market. As the Colonial Pipeline restarts production, we anticipate intermittent diesel and gas outages for the next several days while the supply chain returns to normal operations,” according to a TCA spokeswoman.As of Thursday morning, about 20,000 barrels an hour of gasoline and other refined products were flowing east on Colonial’s pipeline out of Baton Rouge, Louisiana, according to people who asked not to be identified because the information is commercially sensitive. Throughput starts outside of Houston at 25,000 barrels an hour and slows from there beyond Baton Rouge, the people said.Amid the constraints, fuel traders were even paying each other extra to gain access to the pipeline, the first time that’s happened since before the pandemic.New York Attorney General Letitia James issued an alert to New Yorkers concerning potential gasoline price gouging and urged consumers to report dramatic price increases.“Don’t panic,” Biden said on Thursday. “I know seeing lines at the pumps or gas stations with no gas can be extremely stressful, but this is a temporary situation. Do not get more gas than you need the next few days.” Biden also said the pipeline should be reaching fully capacity soon.Meanwhile, a top U.S. energy regulator said gaps in pipeline cybersecurity must be filled following the Colonial attack. “We need to improve our cybersecurity standards and requirements to keep up with these evolving threats, especially as they relate to our critical infrastructure,” Neil Chatterjee, a commissioner and former chairman at the Federal Energy Regulatory Commission, said in a Bloomberg Television interview on Thursday.In an effort to ease the crisis, the Biden administration earlier this week temporarily waived century-old shipping restrictions to allow one foreign-flagged ocean-going tanker to transport gasoline and jet fuel to the East Coast. The White House also waived some gasoline requirements and empowering 10 states to allow heavier-than-normal truck loads of fuels.Colonial normally ships about 2.5 million barrels (105 million gallons) each day, an amount that exceeds the entire oil consumption of Germany. This isn’t the first time Colonial has been forced to shut down. In 2016, an explosion kept the system offline for days, raising gasoline prices and forcing the New York Harbor market to become more dependent on imports of fuel from overseas.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. Howell date : 210513 15h13m04s Business Bloomberg 210513 15h04m Ontario Ratings Matter More Than Canada’s, Fund Manager Says (Bloomberg) -- A rating action on Canada’s economic powerhouse, Ontario, could be more relevant for bond investors than a downgrade of the federal government as the province risks an unsustainable rise in debt, according to $2.3 trillion asset manager Capital Group.The investment firm’s Thomas Reithinger sees Ontario among provinces with a higher downgrade risk, which could eventually trigger discussions about a redistribution of the country’s tax revenues. Canada’s latest budget projects a slow decline in the ratio of debt to gross domestic product at the federal level.But the subnational government sector -- mainly provinces -- has settled into a soaring trajectory, according to a November report from the federal budget watchdog that said most provinces are on an unsustainable fiscal path.“Over the long term, the federal government gets lower and lower debt levels and the provinces get higher and higher,” said Reithinger, a fixed-income portfolio manager. “At some point there will be a negotiation between all provinces and the federal government to recalibrate that in order to bring the provinces back down to more manageable levels.”A permanent tax increase or spending cuts of about 0.5% of gross domestic product would be needed to stabilize the subnational government net debt ratio at its pre-pandemic level of 24.1% of GDP over the long term, the Parliamentary Budget Officer said in the report. That reduction would amount to C$12 billion ($9.9 billion) in current dollars, growing in line with GDP thereafter.“I would say the risks of downgrades are much more prominent on the provinces, maybe on the federal government too but I don’t think it matters to the market,” said Reithinger, adding that they are “concentrated more in provinces that we think are our higher quality and have better trajectory,” such as Saskatchewan, Quebec and British Columbia.Record DebtOntario, the world’s largest sub-sovereign bond issuer, is projecting its net debt-to-GDP to reach 50.2% by fiscal 2023-2024, up from a record high 47.1% at the end of the last fiscal year, according to the budget documents released in late March.The province’s “debt burden will rise to levels seldom recorded for regional governments around the world,” Michael Yake, a senior vice president at Moody’s Investors Service, said in an emailed statement after Ontario’s budget was released. The ratings company assigns Ontario Aa3, its fourth-highest investment grade, while giving Canada’s federal government its top designation.Ontario has a long-term borrowing plan for the current fiscal year of C$53.9 billion, of which C$9.8 billion has already been raised, according to government data.Health Costs “It’s the longer term that we’re more concerned about” because education and health-care programs, which consume roughly half of the provincial budget, are only going to get more expensive, said Ontario’s Financial Accountability Officer Peter Weltman, whose department is scheduled to release a report about the province’s debt sustainability in June. That’s especially true of health care, due to the aging of the population, he said.The pandemic has prompted an “unprecedented amount of fiscal cooperation between the federal government and provinces,” Weltman said in an interview. But “it’s also exposed to a lot of structural problems” so there may be more of an appetite for a discussion about spending and tax authority than there was a decade ago, he said. To be sure, potential talks about transfers between provinces and the federal government have surfaced before. Most recently Alberta has been lobbying Ottawa as the western province has faced a decline of its oil-related revenues in recent years.Regarding such talks, “I don’t think that’s going to happen in at least over the next year or over the next budget cycle,” said Reithinger. “That is going to require either some sort of market forcing them to do it or the rating agencies or the province saying hey, we’re getting downgraded here.”Until then, provinces have easy access to cash. Borrowing costs remain at historically low levels in part because the Bank of Canada stands ready to buy some their bonds if macroeconomic conditions dictate as happened at the start of the Covid-19 crisis.(Updates with additional information on Ontario’s bond-issuance program in ninth 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. Business Bloomberg 210513 15h04m Fed’s Waller Joins Colleagues in Branding Inflation ‘Temporary’ (Bloomberg) -- Christopher Waller on Thursday became the latest Federal Reserve governor to try and dampen expectations for central bank action to curb rising prices that he sees as “temporary.”Waller, the third governor to speak this week, said that while inflation above the Fed’s 2% goal may last through 2022, it’s unlikely to be sustained. The comments echo those by Lael Brainard on Tuesday and Vice Chair Richard Clarida on Wednesday as Americans vex over rising prices. Several regional Fed presidents have delivered a similar message, including Richmond’s Thomas Barkin earlier on Thursday.“Despite the unexpectedly high CPI inflation report yesterday, the factors putting upward pressure on inflation are temporary, and an accommodative monetary policy continues to have an important role to play in supporting the recovery,” Waller told a virtual event hosted by the Global Interdependence Center. “We will not overreact to temporary overshoots of inflation.”Fed officials want to drive home the message that inflation spikes are transitory to counter criticism their ultra-easy monetary policy is making matters worse, as concern mounts on both Wall Street and Main Street. A report Wednesday showed consumer prices rose in April by the most since 2009. Prices paid to U.S. producers also increased by more than forecast last month.Officials will need to see several more months of economic data -- including the May and June labor-market figures -- before being able to fully judge the strength of the recovery, Waller said. That suggests it would be premature to discuss scaling back the Fed’s massive bond-purchase program at its June 15-16 meeting, in his view. The June employment report is released July 2.“The May and June jobs report may reveal that April was an outlier, but we need to see that first before we start thinking about adjusting our policy stance,” Waller said, referring to the weaker-than-expected employment data last month.Waller listed six things contributing to higher inflation readings: Base effects, or the comparison of prices this year to last year’s pandemic-depressed readings, higher energy costs, fiscal stimulus, spending of accumulated savings, supply bottlenecks and increased demand for workers, which is driving up wages.These will pressure price growth to rise above the Fed’s 2% goal this year and next year, Waller said, but inflation will return to target after that. He said inflation could reach 2.25% to 2.5% in 2021 and 2022, though sustained monthly surges to 4% would be a concern.The median Fed forecast calls for prices to rise to 2.4% this year as the economy reopens and pandemic concerns recede amid widening vaccine distribution. Policy makers see inflation falling back to their 2% goal next year.The Fed is backing its forecast to justify ultra-easy monetary policy that projects interest rates near zero through 2023, plus a vow to maintain asset purchases at $120 billion a month until it sees “substantial further progress” on employment and inflation.Taper TalkBut price increases have some investors betting that the Fed will need to scale back its bond buying sooner rather than later. Chair Jerome Powell and his colleagues have said it’s too early to start talking about tapering.St. Louis Fed chief James Bullard, speaking separately on Thursday, said “it’s too early to talk about taper because the pandemic is still going on.”Fed communication over asset purchases is risky. Former New York Fed chief William Dudley, recalling the taper tantrum of 2013 when financial markets were roiled by unexpected news the central bank was thinking of scaling back bond purchases, warned that it risks a re-run.“Sometime, probably later this year, the Fed is going to have to start to hint that we’re now moving away from maximum monetary policy stimulus. It’ll be very interesting to see how financial markets react,” he told the Council on Foreign Relations Thursday. “If that reaction is severe enough, that could actually affect the trajectory of monetary policy.” Dudley is a Bloomberg Opinion columnist.The economy has shown signs of a strengthening recovery in recent months, but some data have disappointed. Employers added 266,000 jobs in April, far short of the nearly 1 million increase expected by economists, data on Friday showed. Fed officials have said they are looking for multiple months of strong data when evaluating the trajectory of the recovery.‘Outcome Based’“We have said our policy actions are outcome-based, which means we need to see more data confirming the economy has made substantial further progress before we adjust our policy stance, because sometimes the data does not conform to expectations, as we saw last Friday,” Waller said.Waller said that several measures of employment are still depressed, namely the unemployment rates for Black and Hispanic workers, and the percentage of the population that is employed. But other indicators are back to normal: Job openings and the quits rate.“The economy is ripping, it is going gangbusters,” Waller said. “But we need to remember that it is coming out of a deep hole, and we are just getting back to where we were pre-pandemic.”(Updates with Bullard in seventh paragraph from bottom.)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. Business Yahoo Finance Video 210513 15h02m DoorDash Q1 revenue beats estimates Yahoo Finance's Jared Blikre joined Yahoo Finance Live to break down DoorDash's latest earnings report. Business Yahoo Finance 210513 14h50m DoorDash spikes over 9% as Q1 revenue tops expectations; boosts FY outlook DoorDash is moving to hold its dominance as COVID-19 lockdowns relax, and vaccines roll out. Business Bloomberg 210513 14h43m Airbnb Sees Signs of Travel Rebound; Loss Widens on Debt Payment (Bloomberg) -- Airbnb Inc. beat analysts’ estimates for bookings in the first quarter, reflecting pent-up demand for travel after a year of Covid-19 restrictions. But the lingering effects of the pandemic could still be seen as the company’s loss ballooned, a result of repayment of debt it took on during the height of the crisis.The San Francisco-based company, which went public in December, reported $10.3 billion in gross bookings in the three months ended March 31, a 52% increase from the year earlier period and well beyond the $7.57 billion analysts’ had predicted. Revenue rose 5% to $887 million, also beating analyst’s projections.“While conditions aren’t yet normal, they are improving, and we expect a travel rebound unlike anything we have seen before,” the company wrote in a letter to shareholders accompanying the results. Airbnb didn’t release an official outlook for the current period, citing ongoing impacts of Covid-19, but said it expects gross bookings to be higher than 2019 levels and that April trends improved from March. “The pace of recovery in Q1 and Q2 to date has exceeded our internal expectations from when we entered 2021,” the company said.The shares fluctuated in extended trading after closing down 3.2% in New York at $135.75.The surprisingly positive results reflect a big upswing from a year ago, when Airbnb’s bookings plunged 80% after the coronavirus shut down most of the world. Travel was one of the hardest hit sectors of the economy in the pandemic, but Airbnb saw a swifter recovery than its peers when urbanites started abandoning their city apartments in favor of longer stays in rural rentals. Domestic leisure travel has continued to increase this year as vaccination rates have climbed in the U.S., with some analysts expecting Airbnb to see bookings return to pre-pandemic levels by summer. “We want to see if we are moving toward post-pandemic normalcy,” Ivan Feinseth, an analyst at Tigress Financial Partners, said in an interview before results were released.Prior to the pandemic, alternative accommodation, or non-hotel type lodgings that Airbnb specializes in, was already the fastest growing segment of the travel market and it’s now leading the rebound. Last week, Booking Holdings Inc. and Expedia Group Inc. reported better-than-expected first-quarter results, buoyed by vacation home-rental demand in the U.S. Both online travel agents said they would be trying to expand their property inventory in the U.S. to take on Airbnb in the peak summer season. Booking’s quarterly revenue declined 50% while Expedia’s was down 44% compared with a year earlier.Airbnb is fighting to retain its top position. In February, the company launched its biggest marketing campaign in five years in a bid to recruit more hosts and said it’s already driving new customers to its platform. Later this month, Airbnb will be unveiling a platform upgrade, which promises to streamline the process to become a host.Almost 60% of Airbnb’s revenue came from the U.S., where vaccines are now widely available, the company said. Guests are taking advantage of remote work policies and choosing to travel to non-urban areas and stay for longer: Nearly a quarter of Airbnb’s bookings in the first quarter were for stays longer than 28 days, an increase of 14% from 2019. Bookings in North America, primarily the U.S., increased to levels above 2019 in the first quarter, the company said.However, other countries are still struggling to contain Covid-19. India is reporting 4,000 deaths a day, meanwhile Europe’s vaccine rollout is lagging the U.S. and Australia has said its borders may be closed to international travelers for another year. As countries like the U.K. and France have announced reopenings and eased restrictions, Airbnb has seen a sharp increase in bookings, the company said. “We anticipate the pace of recovery in Europe will continue to be heavily influenced by the severity and duration of travel restrictions, but believe we are well positioned to take advantage of the recovery as they ease,” the company said.Releasing its financial results for the second time as a public company, Airbnb reported net loss of $1.17 billion, or $1.95 a share, significantly higher than the loss of $341 million a year earlier. Airbnb said it was due to the repayment of debt the company took on during the pandemic. In April 2020, Airbnb lined up about $2 billion in debt financing to help it grow and pay bills while travel demand was crushed.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. Business Bloomberg 210513 14h29m Musk’s Bitcoin Concerns Sink Crypto-Linked Stocks (Bloomberg) -- Stocks exposed to cryptocurrencies slumped around the world after Elon Musk voiced concerns over Bitcoin’s energy usage, delivering a blow to the digital asset’s standing within global markets just a few months after the billionaire CEO of Tesla Inc. became one of its biggest supporters.Crypto shares from the U.S. to Asia slid as Bitcoin plunged as much as 15%, sinking to a low of $46,045 before trimming the decline. Musk said he was worried over the “rapidly increasing” use of fossil fuels for Bitcoin mining and transactions, and suspended Tesla purchases with the asset, indicating he might favor other cryptocurrencies that don’t use as much energy.Digital asset technology company Marathon Digital Holdings Inc. fell 14% to the lowest since Jan. 27, as peer Riot Blockchain Inc. tumbled 16%, while Microstrategy Inc., which has put billions of dollars into Bitcoin, sank 9.9% Thursday. Coinbase Global Inc., which runs the largest U.S. cryptocurrency exchange, dropped as much as 6.5% in late trading after quarterly results, adding to its largest ever decline on Thursday.A “shocker from Musk,” Daniel Ives, an analyst at Wedbush Securities, wrote in a note to clients. “The nature of Bitcoin mining has not changed in the last three months, which speaks to why backtracking on the crypto transaction three months later is a very surprising and confusing move to both Tesla and crypto investors.”Worries deepened after a Bloomberg News report that Binance Holdings Ltd. is under investigation by the Justice Department and Internal Revenue Service. Officials who probe money laundering and tax offenses have sought information from individuals with insight into Binance’s business, according to people with knowledge of the matterTesla announced in February that it had invested $1.5 billion in Bitcoin and signaled an intent to begin accepting the cryptocurrency as a form of payment.In Asia, Monex Group Inc., whose ownership of crypto exchange Coincheck Inc. had made it the second-best performing stock in Japan in 2021, dropped 11%. Nexon Co., which just last month became the first Japanese firm to make a significant bet with a $100 million purchase of the cryptocurrency, slumped 14%, the most since August 2019, though a poor growth outlook given at its earnings also weighed on sentiment.In Europe, crypto-miner Argo Blockchain Plc slid 6.9%, blockchain technology firm On-Line Blockchain Plc lost 9.8% and crypto infrastructure group Northern Data AG dropped 5.8% to its lowest level since Feb. 1.Tesla SlipsTesla’s own shares fell 3.1%, its eighth decline in nine days, adding to a roughly 30% slide since the company announced the Bitcoin investment in February. After last year’s huge rally, the stock has suffered from lofty trader expectations despite posting a record quarterly profit last month. It’s also been among the stocks hit by this week’s selling in tech equities, with concerns around rising inflation fueling fears of higher interest rates.“Not accepting Bitcoin does not change the thesis or growth trajectory for the electric vehicle story, however it does add to the noise and volatility around the name at a time in which risk assets are under enormous selling pressure,” added Wedbush’s Ives.Musk said in his post that Tesla wouldn’t be selling any Bitcoin and aimed to use it for transactions once mining shifted to a more sustainable energy. “We believe it has a promising future,” he wrote, “but this cannot come at great cost to the environment.”That puts Musk at odds with ARK Investment Management LLC’s Cathie Wood, who last month shared research that she said would “debunk the myth that Bitcoin mining” is bad for the environment. Wood’s Ark Innovation ETF, which has been having a miserable month and has Coinbase as its ninth-largest holding, rose 2.2% after closing at the lowest level since November on Wednesday.Bitcoin was down 10% to $48,903 at 4:09 p.m. in New York.(Updates shares with closing prices, Binance probe in fifth 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. Howell date : 210513 14h12m28s Business Yahoo Finance 210513 14h06m Coinbase misses on top and bottom line in first earnings report as a public company Coinbase fell short on estimates for its top and bottom line in its first quarter as a public company. Business Bloomberg 210513 14h04m Stocks Climb Amid Rotation to Value; Oil Declines: Markets Wrap (Bloomberg) -- Stocks halted a three-day slide, with investors migrating to value from growth companies as signs of a strengthening labor market tempered inflation worries.Industrial, financial and utility shares led gains in the S&P 500, while energy producers joined a slump in oil. Energy producers joined a slump in oil. The tech-heavy Nasdaq 100 underperformed major equity benchmarks as Tesla Inc. slipped after Chief Executive Officer Elon Musk said the electric-car maker is suspending purchases using Bitcoin. The world’s largest cryptocurrency tumbled.“We’ve been on cyclical value and small cap for the better part of the last year,” said Brent Schutte, chief investment strategist at Northwestern Mutual Wealth Management. “Our forecast has been that you would have these cyclical upswings that would lead to a broadening market, and that is exactly what you’ve seen. We haven’t wavered one bit in our conviction that is going to continue.”Confidence on an economic revival that’s reigned supreme amid continued Federal Reserve stimulus has been recently jolted. Data Thursday showed producer prices rose by more than forecast in April, and jobless claims fell. While some investors insist the surge in inflation is a one-off reopening burst, the broader markets are hedging against the possibility it may persist and force the central bank to take action.Officials have been trying to drive home the message that they see inflation spikes this year as transitory, in contrast with heightened Wall Street concern about runaway prices. Increases above the Fed’s 2% goal should be temporary, but may last through 2022, said Governor Christopher Waller.“Taking a step back from inflation, the fact that jobless claims hit another pandemic-era low suggests we’re inching even closer to full reopening, which is no doubt a good thing,” said Mike Loewengart, managing director of investment strategy at E*Trade Financial.These are some of the main moves in markets:StocksThe S&P 500 rose 1.2% as of 4 p.m. New York timeThe Nasdaq 100 rose 0.8%The Dow Jones Industrial Average rose 1.3%The MSCI World index rose 0.3%CurrenciesThe Bloomberg Dollar Spot Index fell 0.2%The euro rose 0.1% to $1.2085The British pound was little changed at $1.4055The Japanese yen rose 0.2% to 109.43 per dollarBondsThe yield on 10-year Treasuries declined four basis points to 1.65%Germany’s 10-year yield was little changed at -0.12%Britain’s 10-year yield advanced one basis point to 0.90%CommoditiesWest Texas Intermediate crude fell 3.5% to $64 a barrelGold futures rose 0.2% to $1,827 an ounceFor 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. Business Reuters 210513 14h01m US STOCKS-Wall Street closes higher in 'buy the dip' session All three major U.S. stock indexes notched solid gains, with the Nasdaq, weighed by Tesla Inc, picking up the rear. Recent economic data has prompted inflation fears as scarcity of both materials and workers threatens to send prices surging in the face of a demand boom. "If this is a footrace, supply chains are still tying their shoes," said David Carter, chief investment officer at Lenox Wealth Advisors in New York. Business Bloomberg 210513 13h59m Fed’s Waller Joins Colleagues in Branding Inflation ‘Temporary’ (Bloomberg) -- Christopher Waller on Thursday became the latest Federal Reserve governor to try and dampen expectations for central bank action to curb rising prices that he sees as “temporary.”Waller, the third governor to speak this week, said that while inflation above the Fed’s 2% goal may last through 2022, it’s unlikely to be sustained. The comments echo those by Lael Brainard on Tuesday and Vice Chair Richard Clarida on Wednesday as Americans vex over rising prices. Several regional Fed presidents have delivered a similar message, including Richmond’s Thomas Barkin earlier on Thursday.“Despite the unexpectedly high CPI inflation report yesterday, the factors putting upward pressure on inflation are temporary, and an accommodative monetary policy continues to have an important role to play in supporting the recovery,” Waller told a virtual event hosted by the Global Interdependence Center. “We will not overreact to temporary overshoots of inflation.”Fed officials want to drive home the message that inflation spikes are transitory to counter criticism their ultra-easy monetary policy is making matters worse, as concern mounts on both Wall Street and Main Street. A report Wednesday showed consumer prices rose in April by the most since 2009. Prices paid to U.S. producers also increased by more than forecast last month.Officials will need to see several more months of economic data -- including the May and June labor-market figures -- before being able to fully judge the strength of the recovery, Waller said. That suggests it would be premature to discuss scaling back the Fed’s massive bond-purchase program at its June 15-16 meeting, in his view. The June employment report is released July 2.“The May and June jobs report may reveal that April was an outlier, but we need to see that first before we start thinking about adjusting our policy stance,” Waller said, referring to the weaker-than-expected employment data last month.Waller listed six things contributing to higher inflation readings: Base effects, or the comparison of prices this year to last year’s pandemic-depressed readings, higher energy costs, fiscal stimulus, spending of accumulated savings, supply bottlenecks and increased demand for workers, which is driving up wages.These will pressure price growth to rise above the Fed’s 2% goal this year and next year, Waller said, but inflation will return to target after that. He said inflation could reach 2.25% to 2.5% in 2021 and 2022, though sustained monthly surges to 4% would be a concern.The median Fed forecast calls for prices to rise to 2.4% this year as the economy reopens and pandemic concerns recede amid widening vaccine distribution. Policy makers see inflation falling back to their 2% goal next year.The Fed is backing its forecast to justify ultra-easy monetary policy that projects interest rates near zero through 2023, plus a vow to maintain asset purchases at $120 billion a month until it sees “substantial further progress” on employment and inflation.Taper TalkBut price increases have some investors betting that the Fed will need to scale back its bond buying sooner rather than later. Chair Jerome Powell and his colleagues have said it’s too early to start talking about tapering.Former New York Fed chief William Dudley, recalling the taper tantrum of 2013 when financial markets were roiled by unexpected news the central bank was thinking of scaling back bond purchases, cautioned that it risks a re-run.“Sometime, probably later this year, the Fed is going to have to start to hint that we’re now moving away from maximum monetary policy stimulus. It’ll be very interesting to see how financial markets react,” he told the Council on Foreign Relations Thursday. “If that reaction is severe enough, that could actually affect the trajectory of monetary policy.” Dudley is a Bloomberg Opinion columnist.The economy has shown signs of a strengthening recovery in recent months, but some data have disappointed. Employers added 266,000 jobs in April, far short of the nearly 1 million increase expected by economists, data on Friday showed. Fed officials have said they are looking for multiple months of strong data when evaluating the trajectory of the recovery.‘Outcome Based’“We have said our policy actions are outcome-based, which means we need to see more data confirming the economy has made substantial further progress before we adjust our policy stance, because sometimes the data does not conform to expectations, as we saw last Friday,” Waller said.Waller said that several measures of employment are still depressed, namely the unemployment rates for Black and Hispanic workers, and the percentage of the population that is employed. But other indicators are back to normal: Job openings and the quits rate.“The economy is ripping, it is going gangbusters,” Waller said. “But we need to remember that it is coming out of a deep hole, and we are just getting back to where we were pre-pandemic.”(Updates with Dudley in fifth paragraph from bottom.)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. World Bloomberg 210513 13h58m CDC Eases Mask Rules; NYC Offers Burgers for Shots: Virus Update (Bloomberg) -- President Joe Biden’s administration took its biggest step yet toward declaring victory over the coronavirus pandemic -- announcing that fully vaccinated Americans can ditch their masks in most settings, even indoors or in large groups. Masks are still required on buses, trains and other forms of public transportation, as well as airports.To drive vaccinations, New York Mayor Bill de Blasio is offering vouchers for a Shake Shack burger or sandwich for residents who got their shots, while Six Flags Entertainment Corp. will give away 50,000 tickets to its Illinois theme parks to newly vaccinated residents in the state.Ontario, Canada’s most populous province, is keeping a stay-home order in force into early June. CureVac NV and GlaxoSmithKline Plc said early data from laboratory tests of their second-generation Covid-19 vaccine suggests good protection against some virus variants.Key DevelopmentsGlobal Tracker: Cases top 160.6 million; deaths exceed 3.3 millionVaccine Tracker: More than 1.36 billion doses have been givenU.S. teen vaccine drive turns to schools, doctors to get shots outMuch-maligned Sinovac shot getting greater acceptanceJapan seeks to ease Olympics fears with no-infection test eventsWhere are we in the quest for coronavirus treatments?Subscribe to a daily update on the virus from Bloomberg’s Prognosis team here. Click CVID on the terminal for global data on cases and deaths.U.S. Eases Mask Rules (3:51 p.m. NY)President Joe Biden’s administration took its biggest step yet toward declaring victory over the coronavirus pandemic -- announcing that fully vaccinated Americans can ditch their masks in most settings, even indoors or in large groups.The guidance shift Thursday is a turning point in the fight against Covid-19 and comes as U.S. caseloads fall and vaccinations rise. It signals a broad return to everyday life, and is also a bet that any surge in spread from relaxed guidelines won’t be enough to reverse progress in inoculations.“Anyone who is fully vaccinated can participate in indoor or outdoor activities, large or small, without wearing a mask or physical distancing,” said CDC Director Rochelle Walensky. “If you are fully vaccinated, you can start doing the things that you had stopped doing because of the pandemic. We have all longed for this moment when we can get back to some sense of normalcy.”Masks are still required on buses, trains and other forms of public transportation, as well as airports, she said.Maine Lifts Restrictions (3:39 p.m. NY)Maine will lift many virus restrictions, removing capacity limits on most outdoor and indoor events, Governor Janet Mills announced. Masks must still be worn indoors in public places. Physical distancing will be required where people eat and must remove their masks.“This change aligns with the latest science and makes sense for Maine at this stage, with more people getting vaccinated,” the Democratic governor said in a statement. U.S. Bill Proposes Billions for Gyms (3:26 p.m. NY)Democratic Senator Tammy Duckworth and Republican Senator Jerry Moran today introduced a bill that would authorize $30 billion in grants to struggling gyms and fitness facilities, according to an emailed statement.“It’s critical we support the fitness industry to help bring back jobs and provide Americans with opportunities to improve their fitness during this public health crisis,” Duckworth said in statement.Peru to Receive 700,000 Doses (2:11 p.m. NY)Peru will receive 700,000 doses of the Pfizer Covid-19 vaccine this Thursday, the largest batch received to date by the Andean country, Health Minister Oscar Ugarte said on his Twitter account.“We are satisfied because it is the first time that in a single day that amount of doses has arrived in our country,” Ugarte saidSix Flags Offers Tickets to Boost Illinois Vaccinations (1 p.m. NY)Six Flags Entertainment Corp. will offer 50,000 tickets to its theme parks in Gurnee and Rockford, Illinois to newly-vaccinated state residents, Governor J.B. Pritzker said.The value of the tickets is $4 million, the company said.Ontario Extends Stay-Home Order (12:21 p.m. NY)Ontario Premier Doug Ford extended the province’s stay-at-home order until at least June 2, the Canadian Broadcasting Corporation reported. Restrictions on outdoor recreation will be lifted on that date.“The situation is slowly trending in the right situation,” CBC quoted Ford as saying. “Make no mistake, we’re not out of the woods yet.” He said the goal is for Ontario to have “the most normal July and August as possible.”Romania Eases Restrictions (11:44 a.m. NY)Romania will lift a nightly curfew on May 15 and face masks in open spaces will no longer be mandatory, President Klaus Iohannis said Thursday. Private events such as weddings will be allowed with limited capacity after June 1, provided that attendees are vaccinated.New cases have declined and vaccinations have increased in Romania, putting the country on track to cover 75% of the population in another seven months, according to the Bloomberg Vaccine Tracker.Teachers’ Union to Back Reopening (11:15 a.m. NY)The president of one of the largest U.S. teachers’ unions planned to call for a full reopening of public schools by the fall. Randi Weingarten’s announcement for the American Federation of Teachers marks a shift by a prominent voice opposing a return to in-person, full-time instruction.“Conditions have changed,” Weingarten said in prepared remarks for a speech on Thursday. “We can and we must reopen schools in the fall for in-person teaching, learning and support. And keep them open. Fully and safely five days a week.”Manila Restrictions Eased (10:54 a.m. NY)The Manila metro area and surrounding provinces will shift to the second-lowest level of curbs called “general community quarantine” until the end of May, presidential spokesperson Harry Roque said Thursday. The easing for the region, which is the country’s economic engine, follows a worse-than-expected contraction in the last quarter.De Blasio: Burgers For Vaccination (10:40 a.m. NY)New York City Mayor Bill de Blasio said people who get a vaccine will get a voucher for a burger or sandwich from Shake Shack Inc. For those already vaccinated, people can get a free order of French fries after showing a vaccination card.The mayor appealed to parents to get their kids vaccinated as the city opened up shots for ages 12 to 15 in a bid to “get kids off of Zoom.” The city will also reopen some of its festivals, including the Governors Ball.Colorado Nursing Homes Hit (10:40 a.m. NY)Covid-19 outbreaks are increasing at Colorado nursing homes, accounting for six deaths last week, the Denver Post reported Thursday. Cases are also rising at assisted-living facilities and elementary schools, the Post reported.UAE Allows Pfizer for Adolescents (10:18 a.m. NY)The United Arab Emirates allowed the use of the Pfizer-BioNTech vaccine for ages 12 to 15, based on clinical studies and local evaluation, the state-run WAM news agency reported. With about 11.4 million shots administered, the UAE is set to cover 75% of its population in another two months if the pace holds up, according to the Bloomberg Vaccine Tracker.Africa Testing Declines (9:11 a.m. NY)The African Union’s health agency urged countries on the continent to increase testing for the coronavirus as more states report different variants of the disease.Testing dropped 21% last week, John Nkengasong, director of the Africa Centres for Disease Control and Prevention, said in an online briefing Thursday.Six African nations including South Africa, Angola, the Democratic Republic of Congo, Morocco, Uganda and Kenya have reported the B.1.617 strain that is devastating India and which initial studies show spreads more easily. That’s in addition to the 24 African nations that reported cases of the B.1.1.7 mutation found last year in the U.K., with the same number of countries reporting the B.1.351 variant first identified in South Africa in 2020.Astra Pause Boosted EU Vaccine Hesitancy (7:42 a.m. NY)Vaccine hesitancy increased in the European Union after the suspension of AstraZeneca Plc’s vaccine, with more than a third of adults in the bloc indicating they were unlikely to get immunized from Covid-19, according to a Eurofound online survey.After several EU countries suspended use of Astra’s shot in mid-March, 34% of respondents in February and March said they were hesitant to take the vaccine. Before the pause, 25% said they were “rather unlikely” or “very unlikely” to get it.CureVac, GSK Report Positive Data (7:35 a.m. NY)CureVac NV and GlaxoSmithKline Plc released positive early data from laboratory testing of their second-generation Covid-19 vaccine, with signs the shot could also provide good protection against some variants of the virus.Preclinical studies showed strong immune responses in rats, with significant neutralization of variants first discovered in the U.K., South Africa and Denmark, CureVac said in a statement Thursday. Human trials are expected to start in the third quarter.Billionaire’s South Africa Vaccine Pledge (7:19 a.m. NY)U.S. biotech billionaire Patrick Soon-Shiong will give an initial 3 billion rand ($213 million) to South Africa, the country of his birth, to help with the transfer of new technology for Covid-19 vaccines and other therapies.The African continent accounts for only about 1.5% of globally administered shots, data from the Africa Centers for Disease Control and Prevention show.Serb Cash Vaccine Incentives Working (6:56 a.m. NY)The Serbian government’s pledge to pay 3,000 dinars ($31) to those receiving vaccines helped speed up inoculation to almost 24,000 people a day from around 8,000 before the offer was announced on May 5, President Aleksandar Vucic said on Thursday.Among the first on the continent to launch mass vaccination in January with shots from China, Russia and western drugmakers, Serbia faced a slowdown amid skepticism toward vaccines, even as it offered its citizens the choice of four different jabs.Angola Approves Sputnik Light (6:40 a.m. NY)Angola’s Ministry of Health approved the use of Russia’s single-dose Sputnik Light vaccine against the coronavirus, according to the Russian Direct Investment Fund.The Sputnik Light is the first component of the Sputnik two-dose vaccine, which Angola approved in March, the fund said in a statement. Russia’s state-run wealth fund backed the vaccine’s development and is in charge of the inoculation’s international rollout.Seychelles Says Covid Cases Easing (6:25 a.m. NY)Seychelles, which has vaccinated a greater proportion of its population against Covid-19 than any other nation, said a surge in cases of the disease is easing.While the number of active cases has risen to 2,739, from 2,486 on May 10, the seven-day rolling average of infections has fallen to 178 from 322 about a week ago, the health ministry said.German New Cases Decline Further (2:24 p.m. HK)Germany’s new infections decreased, with 6,590 cases reported Thursday. German authorities have become increasingly optimistic that Europe’s largest economy can loosen restrictions, including on outdoor dining and domestic tourism.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. Howell date : 210513 13h41m51s Business Bloomberg 210513 13h34m Oil Slides as Inflation Signs Raise Worry of Commodity Pullback (Bloomberg) -- Oil slumped the most in over a month alongside a commodities downturn as growing inflation concerns raise the specter of a less accommodative U.S. Federal Reserve.West Texas Intermediate futures fell 3.4% on Thursday to the lowest since the end of April. Prices paid to U.S. producers rose in April by more than forecast, adding to signs of rising inflationary pressures that have gripped broader markets recently. Elsewhere, China’s Premier Li Keqiang urged the country to deal effectively with the commodity price surge and its impact, according to a state television report, echoing previous comments from officials.The latest data “are cementing the view we’re going to have markets that are just fixated on inflation,” said Edward Moya, senior market analyst at Oanda Corp. “All these pricing pressures are ramping up those rate-increase bets. For crude, we’re trying to get a sense of what the path of the dollar’s going to be, and that’s uncertain.”Meanwhile, the Colonial Pipeline -- a key source of gasoline for the East Coast -- is returning to service after a cyberattack last week, adding on Thursday that each of its markets should receive product from its system by mid-day. Still, the pipeline remains running at less than half of its capacity, according to people familiar with the matter.Still, there were some glimmers of hope for the oil market. India’s largest oil refiner is shopping for crude again after a one-month hiatus, providing some optimism that the South Asian country’s demand hasn’t been stalled by a rampant virus resurgence. Indian Oil Corp. issued three tenders to buy crude for loading in the next two months. Going forward, the bullishness of the company’s move will depend on how much it actually ends up purchasing.See also: India’s Top Refiner Shops for Oil Again After Month-Long HiatusWhile the Colonial Pipeline has restarted, fuel shortages are still lingering. The Biden Administration has temporarily eased a U.S. shipping requirement so a single foreign tanker could transport gasoline and jet fuel to the East Coast. A White House official said that the Jones Act waiver was applied to one tanker, but other requests are under consideration.Further resumption of flows on the pipeline will bring relief to motorists after panic-buying emptied out some gas stations and retail prices topped $3 a gallon. In futures markets, the spread between crude and gasoline slumped toward $24 a barrel after topping as much as $27 a barrel earlier this week.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. Business Reuters 210513 13h28m UniCredit shareholder BlackRock voted against CEO pay UniCredit's top investor BlackRock voted against the remuneration package that last month turned the Italian bank's new boss Andrea Orcel into one of Europe's highest paid bank chiefs, a document showed on Thursday. Minutes from the April 15 annual general meeting published on UniCredit's website on Thursday showed BlackRock was among investors that voted against the pay policy. New York-based BlackRock, the world's largest money manager with $9 trillion in assets, is the top investor in UniCredit with a stake of 5.1%. Business Bloomberg 210513 13h36m Stocks Hit Session Highs Amid Rotation to Value: Markets Wrap (Bloomberg) -- Stocks climbed to session highs, with investors migrating to value from growth companies as signs of a strengthening labor market tempered inflation worries.The S&P 500 headed toward its biggest advance since March, led by utility, financial and industrial shares. Energy producers joined a slump in oil. The tech-heavy Nasdaq 100 underperformed major equity benchmarks as Tesla Inc. slipped after Chief Executive Officer Elon Musk said the electric-car maker is suspending purchases using Bitcoin. The world’s largest cryptocurrency tumbled.“We’ve been on cyclical value and small cap for the better part of the last year,” said Brent Schutte, chief investment strategist at Northwestern Mutual Wealth Management. “Our forecast has been that you would have these cyclical upswings that would lead to a broadening market, and that is exactly what you’ve seen. We haven’t wavered one bit in our conviction that is going to continue.”Confidence on an economic revival that’s reigned supreme amid continued Federal Reserve stimulus has been recently jolted. Data Thursday showed producer prices rose by more than forecast in April, and jobless claims fell. While some investors insist the surge in inflation is a one-off reopening burst, the broader markets are hedging against the possibility it may persist and force the central bank to take action.Officials have been trying to drive home the message that they see inflation spikes this year as transitory, in contrast with heightened Wall Street concern about runaway prices. Increases above the Fed’s 2% goal should be temporary, but may last through 2022, said Governor Christopher Waller.“Taking a step back from inflation, the fact that jobless claims hit another pandemic-era low suggests we’re inching even closer to full reopening, which is no doubt a good thing,” said Mike Loewengart, managing director of investment strategy at E*Trade Financial.These are some of the main moves in markets:StocksThe S&P 500 rose 1.6% as of 3:35 p.m. New York timeThe Nasdaq 100 rose 1.3%The Dow Jones Industrial Average rose 1.7%The MSCI World index rose 0.5%CurrenciesThe Bloomberg Dollar Spot Index fell 0.2%The euro was little changed at $1.2084The British pound was little changed at $1.4052The Japanese yen rose 0.2% to 109.42 per dollarBondsThe yield on 10-year Treasuries declined four basis points to 1.66%Germany’s 10-year yield was little changed at -0.12%Britain’s 10-year yield advanced one basis point to 0.90%CommoditiesWest Texas Intermediate crude fell 3.5% to $64 a barrelGold futures rose 0.3% to $1,828 an ounceFor 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. World Bloomberg 210513 13h17m Kenyan Court Scuppers President’s Plan to Reshape Government (Bloomberg) -- Kenya’s High Court shot down a plan aimed at restructuring the government to make it more inclusive and avert political violence, and found President Uhuru Kenyatta had acted illegally by driving the initiative.The so-called Building Bridges Initiative, which was drawn up by Kenyatta and opposition leader Raila Odinga and has already been approved by parliament, proposed reintroducing the role of prime minister and two deputies. Its other provisions included allocating a greater share of the budget to the 47 counties and the appointment of an ombudsman to oversee the judiciary.The entire process promoted by the BBI was “unconstitutional, null and void,” the five-member bench said in a judgment handed down on Thursday. It also declared the steering committee appointed by Kenyatta to implement the changes “an unlawful entity,” and that the president violated the constitution.The judgment is a major setback for Kenyatta, who is due to step down in August next year and is unlikely to have sufficient time to revive the initiative should an appeal fail. The ruling could bolster Deputy President William Ruto’s political fortunes -- his supporters argued that the BBI was aimed at derailing his efforts to secure the top job and he refused to openly support it.‘Illegitimate Purpose’Instituting the initiative will entail changes to the constitution that can only be effected after an informed and participatory process that wasn’t followed, the court said. It found that the BBI was the president’s initiative rather than the people’s, and that he shouldn’t have promoted the constitutional amendments.“Considering the illegitimate purpose for which the BBI steering committee was conceived, nothing legitimate can come out of that outfit,” the court ruled. “Whatever it may want to consider as its achievement, including the Constitution Amendment Bill, is of no legal consequence.”The BBI’s critics argued that it would undermine the judiciary’s independence, sideline sparsely populated areas and increase the size of the government at a time when the treasury is struggling to reduce costs and rein in the budget deficit.The court’s ruling may be challenged in the Court of Appeal. Kenya’s solicitor-general, Kennedy Ogeto, told the court the government intends to file an appeal.(Updates with implications for president 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. World Bloomberg 210513 13h15m CDC Eases Mask Rules; NYC Offers Burgers for Shots: Virus Update (Bloomberg) -- Fully vaccinated Americans can do away with wearing masks, the head of the U.S. Centers for Disease Control and Prevention said, the most significant shift in federal guidelines since the start of the pandemic. Masks are still required on buses, trains and other forms of public transportation, as well as airports, she said.To drive vaccinations, New York Mayor Bill de Blasio is offering vouchers for a Shake Shack burger or sandwich for residents who got their shots, while Six Flags Entertainment Corp. will give away 50,000 tickets to its Illinois theme parks to newly vaccinated residents in the state.Ontario, Canada’s most populous province, is keeping a stay-home order in force into early June. CureVac NV and GlaxoSmithKline Plc said early data from laboratory tests of their second-generation Covid-19 vaccine suggests good protection against some virus variants. Key DevelopmentsGlobal Tracker: Cases top 160.6 million; deaths exceed 3.3 millionVaccine Tracker: More than 1.36 billion doses have been givenU.S. teen vaccine drive turns to schools, doctors to get shots outMuch-maligned Sinovac shot getting greater acceptanceJapan seeks to ease Olympics fears with no-infection test eventsWhere are we in the quest for coronavirus treatments?Subscribe to a daily update on the virus from Bloomberg’s Prognosis team here. Click CVID on the terminal for global data on cases and deaths.CDC Eases Mask Rules (3:15 p.m. NY)Fully vaccinated Americans can do away with wearing masks, the head of the U.S. Centers for Disease Control and Prevention said, the most significant shift in federal guidelines since the start of the pandemic.“Anyone who is fully vaccinated can participate in indoor or outdoor activities, large or small, without wearing a mask or physical distancing,” CDC chief Rochelle Walensky said at a White House news briefing. “If you are fully vaccinated, you can start doing the things that you had stopped doing because of the pandemic. We have all longed for this moment when we can get back to some sense of normalcy.”Masks are still required on buses, trains and other forms of public transportation, as well as airports, she said.About 59% of American adults have received at least one shot, and the Covid-19 vaccine made by Pfizer Inc. and BioNTech SE was cleared for use in children ages 12 to 15 years old this week. New daily Covid-19 cases, meanwhile, have been declining for weeks. Still, the pace of vaccinations has slowed, raising concerns about whether hesitancy will impede widespread protection in the population.Peru to Receive 700,000 Doses (2:11 p.m. NY)Peru will receive 700,000 doses of the Pfizer Covid-19 vaccine this Thursday, the largest batch received to date by the Andean country, Health Minister Oscar Ugarte said on his Twitter account.“We are satisfied because it is the first time that in a single day that amount of doses has arrived in our country,” Ugarte saidSix Flags Offers Tickets to Boost Illinois Vaccinations (1 p.m. NY)Six Flags Entertainment Corp. will offer 50,000 tickets to its theme parks in Gurnee and Rockford, Illinois to newly-vaccinated state residents, Governor J.B. Pritzker said.The value of the tickets is $4 million, the company said.Ontario Extends Stay-Home Order (12:21 p.m. NY)Ontario Premier Doug Ford extended the province’s stay-at-home order until at least June 2, the Canadian Broadcasting Corporation reported. Restrictions on outdoor recreation will be lifted on that date.“The situation is slowly trending in the right situation,” CBC quoted Ford as saying. “Make no mistake, we’re not out of the woods yet.” He said the goal is for Ontario to have “the most normal July and August as possible.”Romania Eases Restrictions (11:44 a.m. NY)Romania will lift a nightly curfew on May 15 and face masks in open spaces will no longer be mandatory, President Klaus Iohannis said Thursday. Private events such as weddings will be allowed with limited capacity after June 1, provided that attendees are vaccinated.New cases have declined and vaccinations have increased in Romania, putting the country on track to cover 75% of the population in another seven months, according to the Bloomberg Vaccine Tracker.Teachers’ Union to Back Reopening (11:15 a.m. NY)The president of one of the largest U.S. teachers’ unions planned to call for a full reopening of public schools by the fall. Randi Weingarten’s announcement for the American Federation of Teachers marks a shift by a prominent voice opposing a return to in-person, full-time instruction.“Conditions have changed,” Weingarten said in prepared remarks for a speech on Thursday. “We can and we must reopen schools in the fall for in-person teaching, learning and support. And keep them open. Fully and safely five days a week.”Manila Restrictions Eased (10:54 a.m. NY)The Manila metro area and surrounding provinces will shift to the second-lowest level of curbs called “general community quarantine” until the end of May, presidential spokesperson Harry Roque said Thursday. The easing for the region, which is the country’s economic engine, follows a worse-than-expected contraction in the last quarter.De Blasio: Burgers For Vaccination (10:40 a.m. NY)New York City Mayor Bill de Blasio said people who get a vaccine will get a voucher for a burger or sandwich from Shake Shack Inc. For those already vaccinated, people can get a free order of French fries after showing a vaccination card.The mayor appealed to parents to get their kids vaccinated as the city opened up shots for ages 12 to 15 in a bid to “get kids off of Zoom.” The city will also reopen some of its festivals, including the Governors Ball.Colorado Nursing Homes Hit (10:40 a.m. NY)Covid-19 outbreaks are increasing at Colorado nursing homes, accounting for six deaths last week, the Denver Post reported Thursday. Cases are also rising at assisted-living facilities and elementary schools, the Post reported.UAE Allows Pfizer for Adolescents (10:18 a.m. NY)The United Arab Emirates allowed the use of the Pfizer-BioNTech vaccine for ages 12 to 15, based on clinical studies and local evaluation, the state-run WAM news agency reported. With about 11.4 million shots administered, the UAE is set to cover 75% of its population in another two months if the pace holds up, according to the Bloomberg Vaccine Tracker.Africa Testing Declines (9:11 a.m. NY)The African Union’s health agency urged countries on the continent to increase testing for the coronavirus as more states report different variants of the disease.Testing dropped 21% last week, John Nkengasong, director of the Africa Centres for Disease Control and Prevention, said in an online briefing Thursday.Six African nations including South Africa, Angola, the Democratic Republic of Congo, Morocco, Uganda and Kenya have reported the B.1.617 strain that is devastating India and which initial studies show spreads more easily. That’s in addition to the 24 African nations that reported cases of the B.1.1.7 mutation found last year in the U.K., with the same number of countries reporting the B.1.351 variant first identified in South Africa in 2020.Astra Pause Boosted EU Vaccine Hesitancy (7:42 a.m. NY)Vaccine hesitancy increased in the European Union after the suspension of AstraZeneca Plc’s vaccine, with more than a third of adults in the bloc indicating they were unlikely to get immunized from Covid-19, according to a Eurofound online survey.After several EU countries suspended use of Astra’s shot in mid-March, 34% of respondents in February and March said they were hesitant to take the vaccine. Before the pause, 25% said they were “rather unlikely” or “very unlikely” to get it.CureVac, GSK Report Positive Data (7:35 a.m. NY)CureVac NV and GlaxoSmithKline Plc released positive early data from laboratory testing of their second-generation Covid-19 vaccine, with signs the shot could also provide good protection against some variants of the virus.Preclinical studies showed strong immune responses in rats, with significant neutralization of variants first discovered in the U.K., South Africa and Denmark, CureVac said in a statement Thursday. Human trials are expected to start in the third quarter.Billionaire’s South Africa Vaccine Pledge (7:19 a.m. NY)U.S. biotech billionaire Patrick Soon-Shiong will give an initial 3 billion rand ($213 million) to South Africa, the country of his birth, to help with the transfer of new technology for Covid-19 vaccines and other therapies.The African continent accounts for only about 1.5% of globally administered shots, data from the Africa Centers for Disease Control and Prevention show.Serb Cash Vaccine Incentives Working (6:56 a.m. NY)The Serbian government’s pledge to pay 3,000 dinars ($31) to those receiving vaccines helped speed up inoculation to almost 24,000 people a day from around 8,000 before the offer was announced on May 5, President Aleksandar Vucic said on Thursday.Among the first on the continent to launch mass vaccination in January with shots from China, Russia and western drugmakers, Serbia faced a slowdown amid skepticism toward vaccines, even as it offered its citizens the choice of four different jabs.Angola Approves Sputnik Light (6:40 a.m. NY)Angola’s Ministry of Health approved the use of Russia’s single-dose Sputnik Light vaccine against the coronavirus, according to the Russian Direct Investment Fund.The Sputnik Light is the first component of the Sputnik two-dose vaccine, which Angola approved in March, the fund said in a statement. Russia’s state-run wealth fund backed the vaccine’s development and is in charge of the inoculation’s international rollout.Seychelles Says Covid Cases Easing (6:25 a.m. NY)Seychelles, which has vaccinated a greater proportion of its population against Covid-19 than any other nation, said a surge in cases of the disease is easing.While the number of active cases has risen to 2,739, from 2,486 on May 10, the seven-day rolling average of infections has fallen to 178 from 322 about a week ago, the health ministry said.German New Cases Decline Further (2:24 p.m. HK)Germany’s new infections decreased, with 6,590 cases reported Thursday. German authorities have become increasingly optimistic that Europe’s largest economy can loosen restrictions, including on outdoor dining and domestic tourism.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. Business Bloomberg 210513 13h04m Brazil’s Currency to Strengthen With Reforms, Economy Chief Says (Bloomberg) -- Discover what’s driving the global economy and what it means for policy makers, businesses, investors and you with The New Economy Daily. Sign up here.Brazil’s real will strengthen and the economy will beat expectations this year as privatizations, investment and structural reforms turn a cyclical rebound into a sustained recovery, according to Economy Minister Paulo Guedes.A long-delayed tax bill is making progress in the legislature while resistance to a planned overhaul of public sector careers is falling, the minister told Bloomberg News on Thursday, forecasting both proposals to be approved this year. While the first reform is designed to improve Brazil’s business environment, the second intends to reduce costs of public servants over time.“As reforms make progress, everybody will see that the currency is mispriced, that it will strengthen,” Guedes said during a two-hour interview at his office in Brasilia. “The currency had an overshooting and is now finding its equilibrium -- if it’s going to be 5.0 per dollar, 4.8 per dollar or 3 per dollar... I have my hunch, but I won’t say.”Read More: Brazil Rushes to Approve Tax Reform Before Presidential ElectionThe Brazilian currency lost about a quarter of its value in 2020 amid investor concerns about excessive public spending during the pandemic. A recent surge in commodity prices, coupled with aggressive interest rate hikes by the central bank and an improved fiscal outlook have helped to shore up the real in the past few weeks. It is now up about 5.8% since the end of March, the world’s best performing major currency.Guedes forecast that Latin America’s largest economy, after suffering a less painful recession than its neighbors last year, will surprise again in 2021 with the creation of 1 million jobs during the first four months of the year.“Many countries are still on the floor, but Brazil is standing and has started to walk fast,” he said.The better-than expected performance should be partly credited to government programs to assist the poor and to protect jobs during the pandemic, according to Guedes. Together, those programs made a hole in Brazil’s budget but what matters is that the administration has managed to keep recurring expenses in check, he said.Read More: Brazil Economy Outperforms Expectations During Second Covid WaveSee below for other key comments by the minister.Tax ReformPresident Jair Bolsonaro and the heads of both houses of congress have agreed to split up into several chapters a proposal to overhaul the tax system in order to speed its progressChanges to income and consumer taxes will be first submitted to the lower houseA proposal to renegotiate tax debts will be first submitted to the senateEletrobras PrivatizationBill allowing the privatization of power utility Eletrobras is likely to be approved next week, according to GuedesDiscussion was delayed because lawmakers tried to make unwelcome, last-minute changes to the textFor 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. Howell date : 210513 13h11m15s Business Bloomberg 210513 12h57m Banxico Holds Key Rate, Betting Inflation Spike Is Temporary (Bloomberg) -- Mexico’s central bank voted to hold its key interest rate near a five-year low, betting that a price spike that sent the inflation rate to more than double its target will be temporary.Banco de Mexico, led by Governor Alejandro Diaz de Leon, kept borrowing costs at 4% on Thursday, after consumer price increases hit 6.1% in April, far beyond its 3% target. All 24 economists surveyed by Bloomberg predicted the decision, as board members seek to keep injecting crucial stimulus even while prices climb.“In a highly uncertain environment, the risks for inflation, economic activity and financial markets pose major challenges for monetary policy,” the bank’s board wrote in a statement. “Given the recent shocks that have affected inflation, it is necessary for the adjustment in relative prices to take place in an orderly manner so that an impact on price formation and inflation expectations is avoided.”The board also said that while inflation has been accelerating faster than the bank’s own expectations, it still expects it to converge to target starting in the second quarter of 2022. The next rate decision announcement is scheduled for June 24.After an aggressive easing cycle that lowered rates from 8.25% since August 2019, the bank known as Banxico has recently taken a more careful approach, making just one quarter-point cut in its last five meetings since November.“Banxico continues to see current high inflation as transitory. What is new is that Banxico is now, finally, saying that the balance of risks to inflation is to the upside. We think this is still timid and shows an overall dovish board, but it’s a step in hawkish direction,” said Carlos Capistran, an economist at Bank of America Corp., who sees the bank holding rates for the rest of the year.Deputy Governor Gerardo Esquivel said last month he expects the inflationary spike to be temporary, since prices are being compared against a deep slump this time last year, a phenomenon known as the base effect. Most economies, from the U.S. to Chile, are also experiencing a similar price impact.While Esquivel sees inflation falling below the bank’s 4% target ceiling in July, some economists are less optimistic, starting to anticipate a rate hike in late 2021 or early 2022. Mexican swap markets are still pricing about 50 basis points in rate hikes in the second half of this year after Thursday’s decision.Read More: Latin American Central Bankers Stung by Food Inflation Jump“This looks pretty neutral,” Claudia Ceja, a strategist at BBVA in Mexico City, said about Banxico’s decision. “It could have been a little more hawkish, but they’re holding on.”Food InflationMexican food staples such as tomatoes, avocados and tortilla led the price increases in April, suggesting inflation is hurting the poorer segments of the population. President Andres Manuel Lopez Obrador last week called for inflation to be kept in check to stop consumers suffering extra costs.High prices will continue “due to real inflationary pressures caused by the economic reopening in the Mexican services sector and the global increase in commodity prices,” said Gabriela Siller, director of economic analysis at Grupo Financiero BASE.In the absence of significant fiscal stimulus by Lopez Obrador’s government, Banxico has done most of the heavy lifting in battling last year’s 8.2% contraction -- Mexico’s worst in nearly a century. The country also benefited from record remittances from Mexican workers in the U.S.Latin America’s second-largest economy is expected to recover 5% this year, according to the International Monetary Fund.(Updates with unanimous decision in lead, Banxico comments from third paragraph. A previous version corrected the spelling of governor’s surname.)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. Business Yahoo Finance 210513 12h55m Coinbase to report Q1 earnings for the first time as a public company Thursday Coinbase is set to announce its first earnings as a public company on Thursday. Business Yahoo Finance 210513 12h55m These companies are hiking wages because they can't find workers The list of big-name companies hiking wages in the hopes of attracting workers is rising....fast. World Bloomberg 210513 12h47m Kenyan Court Shoots Down President’s Plan to Reshape Government (Bloomberg) -- Kenya’s High Court shot down a plan that was aimed at restructuring the government to make it more inclusive and avert political violence, ruling that proper processes weren’t followed when it was drafted.The so-called Building Bridges Initiative, which was drawn up by President Uhuru Kenyatta and opposition leader Raila Odinga and has already been approved by parliament, proposed reintroducing the role of prime minister and two deputies. Its other provisions included allocating a greater share of the budget to the 47 counties and the appointment of an ombudsman to oversee the judiciary.The entire process promoted by the BBI was “unconstitutional, null and void,” the five-member bench said in a judgment handed down on Thursday. It also declared the steering committee appointed by Kenyatta to implement the changes “an unlawful entity.”Instituting the initiative will entail changes to the constitution that can only be effected after an informed and participatory process that wasn’t followed, the court said. It found that the BBI was the president’s initiative rather than the people’s, and that he shouldn’t have promoted the constitutional amendments.“Considering the illegitimate purpose for which the BBI steering committee was conceived, nothing legitimate can come out of that outfit,” the court ruled. “Whatever it may want to consider as its achievement, including the Constitution Amendment Bill, is of no legal consequence.”The BBI’s critics argued that it would undermine the judiciary’s independence, sideline sparsely populated areas and increase the size of the government at a time when the treasury is struggling to reduce costs and rein in the budget deficit.The court’s ruling may be challenged in the Court of Appeal. Kenya’s solicitor-general, Kennedy Ogeto, told the court the government intends to file an appeal.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. Business Bloomberg 210513 12h43m Stocks Climb Amid Rotation to Value; Oil Declines: Markets Wrap (Bloomberg) -- Stocks halted a three-day slide, with investors migrating to value from growth companies as signs of a strengthening labor market tempered inflation worries.Utility, financial and industrial shares led gains in the S&P 500, while energy producers joined a slump in oil. The tech-heavy Nasdaq 100 underperformed major equity benchmarks as Tesla Inc. slipped after Chief Executive Officer Elon Musk said the electric-car maker is suspending purchases using Bitcoin. The world’s largest cryptocurrency tumbled.“We’ve been on cyclical value and small cap for the better part of the last year,” said Brent Schutte, chief investment strategist at Northwestern Mutual Wealth Management. “Our forecast has been that you would have these cyclical upswings that would lead to a broadening market, and that is exactly what you’ve seen. We haven’t wavered one bit in our conviction that is going to continue.”Confidence on an economic revival that’s reigned supreme amid continued Federal Reserve stimulus has been recently jolted. Data Thursday showed producer prices rose by more than forecast in April, and jobless claims fell. While some investors insist the surge in inflation is a one-off reopening burst, the broader markets are hedging against the possibility it may persist and force the central bank to consider reducing its stimulus.Officials have been trying to drive home the message that they see inflation spikes this year as transitory, in contrast with heightened Wall Street concern about runaway prices. Increases above the Fed’s 2% goal should be temporary, but may last through 2022, said Governor Christopher Waller.“Taking a step back from inflation, the fact that jobless claims hit another pandemic-era low suggests we’re inching even closer to full reopening, which is no doubt a good thing,” said Mike Loewengart, managing director of investment strategy at E*Trade Financial.Have your say on MLIV’s Question of the Day. Which Assets Hurt If CPI Isn’t Transitory?These are some of the main moves in markets:StocksThe S&P 500 rose 1.4% as of 2:42 p.m. New York timeThe Nasdaq 100 rose 0.9%The Dow Jones Industrial Average rose 1.5%The MSCI World index rose 0.3%CurrenciesThe Bloomberg Dollar Spot Index was little changedThe euro was little changed at $1.2073The British pound fell 0.2% to $1.4030The Japanese yen rose 0.2% to 109.49 per dollarBondsThe yield on 10-year Treasuries declined two basis points to 1.67%Germany’s 10-year yield was little changed at -0.12%Britain’s 10-year yield advanced one basis point to 0.90%CommoditiesWest Texas Intermediate crude fell 3.4% to $64 a barrelGold futures rose 0.1% to $1,825 an ounceFor 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. Politics Yahoo Finance 210513 12h41m Republicans are setting a tax trap for Biden Republicans say they want "user fees" to pay for new roads and bridges. That would mean tax hikes on ordinary Americans. Howell date : 210513 12h40m38s Business Bloomberg 210513 12h31m Meme Traders Again Try to Push AMC Entertainment to the Moon (Bloomberg) -- AMC Entertainment Holdings Inc. rallied for a fifth straight day as retail investors flood chatrooms and social-media platforms trying again to pump up the movie theater’s shares.#AMCSqueeze trended on Twitter, and Reddit users cheered each other’s diamond hands for continuing to pile into the company, which, alongside GameStop Corp., became the face of meme stocks in January.The Leawood, Kansas-based company spiked 33% to $13.75 at 2:13 p.m. in New York, more than doubling gains even after AMC announced it had raised about $428 million by selling shares.The movie theater chain wasn’t alone in staging a rally on Thursday as a handful of retail-trader favorites soared after a Robinhood blog post said users can now exercise options contracts in the app. GameStop spiked as much as 15%, while headphone maker Koss Corp. surged as much as 25% and Express Inc. jumped 19%.AMC’s five-day rally has stood out as stocks broadly fall amid inflation fears. It has risen roughly 50%, compared with a 6.2% decline for an equally weighted Bloomberg basket of companies that Robinhood Markets restricted trading of during the meme-stock craze early this year.Its winning streak comes after an eight-day slump that ended just as it reported first-quarter results which revealed a wider-than-expected loss. Still Chief Executive Officer Adam Aron struck an upbeat note on the earnings conference call, saying the internet traders who pushed the company’s stock price this year had given him more confidence for the year ahead. AMC is up more than 500% in 2021.There were approximately 133,000 Reddit interactions for the term AMC over the past week, according to Facebook’s CrowdTangle data tool.(Updates with peer movement and Robinhood update in fourth paragraph, freshens share movement throughout.)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. World Bloomberg 210513 12h28m CDC Eases Mask Rules for Vaccinated People: Virus Update (Bloomberg) -- The U.S. Centers for Disease Control and Prevention said those who are fully-vaccinated can shed their masks and resume both indoor and outdoor activities.To drive vaccinations, New York Mayor Bill de Blasio is offering vouchers for a Shake Shack burger or sandwich for residents who got their shots, while Six Flags Entertainment Corp. will give away 50,000 tickets to its Illinois theme parks to newly vaccinated residents in the state. Ontario, Canada’s most populous province, is keeping a stay-home order in force into early June.CureVac NV and GlaxoSmithKline Plc said early data from laboratory tests of their second-generation Covid-19 vaccine suggests good protection against some virus variants. A survey in the European Union found increased hesitancy after the AstraZeneca shot’s pause.Key DevelopmentsGlobal Tracker: Cases top 160 million; deaths exceed 3.3 millionVaccine Tracker: More than 1.36 billion doses have been givenU.S. teen vaccine drive turns to schools, doctors to get shots outMuch-maligned Sinovac shot getting greater acceptanceJapan seeks to ease Olympics fears with no-infection test eventsWhere are we in the quest for coronavirus treatments?Subscribe to a daily update on the virus from Bloomberg’s Prognosis team here. Click CVID on the terminal for global data on cases and deaths.Peru to Receive 700,000 Pfizer Doses (2:11 p.m. NY)Peru will receive 700,000 doses of the Pfizer Covid-19 vaccine this Thursday, the largest batch received to date by the Andean country, Health Minister Oscar Ugarte said on his Twitter account.“We are satisfied because it is the first time that in a single day that amount of doses has arrived in our country,” Ugarte saidCDC Eases Mask Rules (2:10 p.m. NY)The U.S. Centers for Disease Control and Prevention said those who are fully-vaccinated can shed their masks and resume both indoor and outdoor activities. “We have all longed for this moment” to get back to some form of normalcy, CDC Director Rochelle Walensky said.The change represents the latest loosening of public-health guidance aimed at encouraging vaccination and emphasizing the shots’ benefits, and comes on the heels of a previous relaxation of guidance from the agency in the past several weeks regarding wearing masks outdoors.The shift is based on a growing body of evidence that vaccines work in real-world settings and protect against virus variants, Walensky said. About 59% of American adults have received at least one shot, and the Covid-19 vaccine made by Pfizer Inc. and BioNTech SE was cleared for use in children ages 12 to 15 years old this week. New daily Covid-19 cases, meanwhile, have been declining for weeks.Six Flags to Offer Tickets to Boost Illinois Vaccinations (1 p.m. NY)Six Flags Entertainment Corp. will offer 50,000 tickets to its theme parks in Gurnee and Rockford, Illinois to newly-vaccinated state residents, Governor J.B. Pritzker said.The value of the tickets is $4 million, the company said.Ontario Extends Stay-Home Order (12:21 p.m. NY)Ontario Premier Doug Ford extended the province’s stay-at-home order until at least June 2, the Canadian Broadcasting Corporation reported. Restrictions on outdoor recreation will be lifted on that date.“The situation is slowly trending in the right situation,” CBC quoted Ford as saying. “Make no mistake, we’re not out of the woods yet.” He said the goal is for Ontario to have “the most normal July and August as possible.”Romania Eases Restrictions (11:44 a.m. NY)Romania will lift a nightly curfew on May 15 and face masks in open spaces will no longer be mandatory, President Klaus Iohannis said Thursday. Private events such as weddings will be allowed with limited capacity after June 1, provided that attendees are vaccinated.New cases have declined and vaccinations have increased in Romania, putting the country on track to cover 75% of the population in another seven months, according to the Bloomberg Vaccine Tracker.U.S. Teachers’ Union to Back Fall Reopening (11:15 a.m. NY)The president of one of the largest U.S. teachers’ unions planned to call for a full reopening of public schools by the fall. Randi Weingarten’s announcement for the American Federation of Teachers marks a shift by a prominent voice opposing a return to in-person, full-time instruction.“Conditions have changed,” Weingarten said in prepared remarks for a speech on Thursday. “We can and we must reopen schools in the fall for in-person teaching, learning and support. And keep them open. Fully and safely five days a week.”Philippines Eases Restrictions in Manila (10:54 a.m. NY)The Manila metro area and surrounding provinces will shift to the second-lowest level of curbs called “general community quarantine” until the end of May, presidential spokesperson Harry Roque said Thursday. The easing for the region, which is the country’s economic engine, follows a worse-than-expected contraction in the last quarter.Singapore School Halts In-Person Classes (10:52 a.m. NY)A Singapore elementary school switched to home learning through Tuesday after a students tested positive, the Education Ministry said in a statement cited by broadcaster CNA.The Yio Chu Kang Primary School student was infected by a household member and not at the school, according to the statement.De Blasio: Burger, Sandwich For Vaccination (10:40 a.m. NY)New York City Mayor Bill de Blasio said people who get a vaccine will get a voucher for a burger or sandwich from Shake Shack Inc. For those already vaccinated, people can get a free order of French fries after showing a vaccination card.The mayor appealed to parents to get their kids vaccinated as the city opened up shots for ages 12 to 15 in a bid to “get kids off of Zoom.” The city will also reopen some of its festivals, including the Governors Ball.Colorado Nursing Homes Reported Hit (10:40 a.m. NY)Covid-19 outbreaks are increasing at Colorado nursing homes, accounting for six deaths last week, the Denver Post reported Thursday. Cases are also rising at assisted-living facilities and elementary schools, the Post reported.UAE Allows Pfizer-BioNTech for Adolescents (10:18 a.m. NY)The United Arab Emirates allowed the use of the Pfizer-BioNTech vaccine for ages 12 to 15, based on clinical studies and local evaluation, the state-run WAM news agency reported. With about 11.4 million shots administered, the UAE is set to cover 75% of its population in another two months if the pace holds up, according to the Bloomberg Vaccine Tracker.African Testing Declines as Variants Spread (9:11 a.m. NY)The African Union’s health agency urged countries on the continent to increase testing for the coronavirus as more states report different variants of the disease.Testing dropped 21% last week, John Nkengasong, director of the Africa Centres for Disease Control and Prevention, said in an online briefing Thursday.Six African nations including South Africa, Angola, the Democratic Republic of Congo, Morocco, Uganda and Kenya have reported the B.1.617 strain that is devastating India and which initial studies show spreads more easily. That’s in addition to the 24 African nations that reported cases of the B.1.1.7 mutation found last year in the U.K., with the same number of countries reporting the B.1.351 variant first identified in South Africa in 2020.EU Vaccine Hesitancy Rose After Astra Pause (7:42 a.m. NY)Vaccine hesitancy increased in the European Union after the suspension of AstraZeneca Plc’s vaccine, with more than a third of adults in the bloc indicating they were unlikely to get immunized from Covid-19, according to a Eurofound online survey.After several EU countries suspended use of Astra’s shot in mid-March, 34% of respondents in February and March said they were hesitant to take the vaccine. Before the pause, 25% said they were “rather unlikely” or “very unlikely” to get it.CureVac, GSK Report Positive Lab Data (7:35 a.m. NY)CureVac NV and GlaxoSmithKline Plc released positive early data from laboratory testing of their second-generation Covid-19 vaccine, with signs the shot could also provide good protection against some variants of the virus.Preclinical studies showed strong immune responses in rats, with significant neutralization of variants first discovered in the U.K., South Africa and Denmark, CureVac said in a statement Thursday. Human trials are expected to start in the third quarter.Billionaire’s South Africa Vaccine Tech Pledge (7:19 a.m. NY)U.S. biotech billionaire Patrick Soon-Shiong will give an initial 3 billion rand ($213 million) to South Africa, the country of his birth, to help with the transfer of new technology for Covid-19 vaccines and other therapies.The African continent accounts for only about 1.5% of globally administered shots, data from the Africa Centers for Disease Control and Prevention show.Serb Cash Vaccine Incentives Working (6:56 a.m. NY)The Serbian government’s pledge to pay 3,000 dinars ($31) to those receiving vaccines helped speed up inoculation to almost 24,000 people a day from around 8,000 before the offer was announced on May 5, President Aleksandar Vucic said on Thursday.Among the first on the continent to launch mass vaccination in January with shots from China, Russia and western drugmakers, Serbia faced a slowdown amid skepticism toward vaccines, even as it offered its citizens the choice of four different jabs.Angola Approves Single-Dose Sputnik Light (6:40 a.m. NY)Angola’s Ministry of Health approved the use of Russia’s single-dose Sputnik Light vaccine against the coronavirus, according to the Russian Direct Investment Fund.The Sputnik Light is the first component of the Sputnik two-dose vaccine, which Angola approved in March, the fund said in a statement. Russia’s state-run wealth fund backed the vaccine’s development and is in charge of the inoculation’s international rollout.Seychelles Says Covid Cases Easing (6:25 a.m. NY)Seychelles, which has vaccinated a greater proportion of its population against Covid-19 than any other nation, said a surge in cases of the disease is easing.While the number of active cases has risen to 2,739, from 2,486 on May 10, the seven-day rolling average of infections has fallen to 178 from 322 about a week ago, the health ministry said.Singapore Cases at 10-Month High (5:12 p.m. HK)Singapore’s virus cases in the local community rose to the highest since July last year as authorities found more infections from an existing cluster at Changi Airport, raising concerns that an air travel bubble with Hong Kong may get delayed again.Of the 24 cases discovered, 17 were linked to a cluster at Changi Airport, the Health Ministry said. This brings the total number of cases linked to the airport to 42.China Sets Up New Health Body (4:34 p.m. HK)China announced a new disease prevention and control agency under the aegis of its top health body, in what is its biggest move yet to address gaps that caused critical delays in sounding the alarm about Covid-19 when it first emerged in Wuhan in late 2019.The new National Disease Prevention and Control Bureau will draft policies regarding infectious disease control and provide guidance on the surveillance of epidemics, among other public health mandates, state news agency Xinhua reported on Thursday.German New Cases Decline Further (2:24 p.m. HK)Germany’s new infections decreased, with 6,590 cases reported Thursday. German authorities have become increasingly optimistic that Europe’s largest economy can loosen restrictions, including on outdoor dining and domestic tourism.Rush for Vaccines After Taipei Outbreak (2:11 p.m. HK)A rising number of Covid-19 infections is prompting thousands of members of the hesitant Taiwanese public to get vaccinated. A record 16,180 people received vaccinations Wednesday, with 36 confirmed cases since Tuesday. That outbreak prompted the government to reimpose restrictions on large gatherings for the first time since last summer, although it sees a smaller chance of further raising the Covid-19 alert level, the Apple Daily reported, citing the health minister.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. Health Yahoo Finance 210513 12h22m Teens and social media: 'Unfollow some accounts that don't make you feel good Dr. Nina Vasan of Stanford's Mental Health Innovation Lab shares how social media can have a positive impact on the lives of kids and young adults. Business Bloomberg 210513 12h17m Bank of Canada Says Complete Recovery Needed to Withdraw Support (Bloomberg) -- Bank of Canada Governor Tiff Macklem indicated he won’t be in any rush to hike interest rates even if the economy makes up pandemic losses.In a speech titled “The benefits of an inclusive economy,” Macklem reiterated the central bank will continue to support the economy until a “complete” recovery takes place but added specifics on what that looks like. He cited employment surpassing pre-pandemic levels by about 200,000 and businesses reinvesting again, as well as a healthy jobs market for groups that have been hit hardest by the pandemic such as young women.“We’re about about 700,000 jobs below where we really should be,” Macklem said in response to questions after his speech. “Right now we’re about 500,000 jobs below where we were pre-pandemic.”The Bank of Canada last month accelerated the timetable for a possible interest-rate increase and pared back its bond purchases -- the first major economy to signal its intent to reduce emergency levels of monetary stimulus. Since that April 21 policy decisions, investors have raised their bets on a rate hike as early as next year, driving the Canadian dollar higher by 3.1%. The currency is now up 4.5% so far this year, the best performing major currency.At a press conference after the speech, Macklem said the bank is closely monitoring the loonie’s gains, to ensure further appreciation doesn’t create economic headwinds. The currency weakened after those comments, falling to C$1.2176 per U.S. dollar, or $0.8213 per Canadian dollar at 2:12 p.m. in Toronto trading.Swaps trading suggests about a 50% chance of a rate hike in Canada this time next year. Almost three hikes are fully priced in over the next two years, and five hikes over the next three years.Concrete FrameDespite the more upbeat tone in forecasts last month, Macklem has always sought to emphasize the central bank’s commitment is not to raise interest rates before the economy fully recovers, and that any future hike would reflect economic conditions at the time. That was the focus Thursday, where he provided a more concrete frame around the sort of indicators he’s looking at.“We will use our monetary policy tools to support a complete recovery and achieve our inflation goal,” Macklem said in remarks prepared for a virtual speech before the Universities of Atlantic Canada. “A complete recovery is a shared recovery,” he said. “It means that we’ve not only recovered the jobs lost due to the pandemic, but we have also created jobs for graduating students and others who have entered the job market since the start of the pandemic.”He reiterated the Bank of Canada’s forward guidance the central bank will keep its policy rate at 0.25% “until the spare capacity in the economy is used up, so that we sustainably achieve our 2% inflation target.” It’s not clear, however, whether he see the elimination of spare capacity being the same thing as a “complete” recovery.A complete recovery also means businesses “have confidence that the pandemic and its effects are well behind us, demand for goods or services has come back, and they are looking to add capacity and invest in new opportunities,” Macklem said. Businesses and households, meanwhile, will be able to count on inflation being sustainably at target.In the speech, Macklem also discussed the importance of having a diverse and inclusive workforce overall. The more people working, the stronger the economy will be.“A more inclusive economy is a bigger economy, a more prosperous economy with more room to grow without creating inflationary pressures,” he said.(Updates currency reaction in 5th 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. Howell date : 210513 12h10m01s Business Yahoo Finance 210513 12h02m Stock market news live updates: Stocks look to rise for the first time in four days after inflation fears ignite sell-off Inflation fears are dogging Wall Street at a time when the U.S. rebound is picking up speed. Business Reuters 210513 11h53m Analysis: Elon Musk wants a greener bitcoin. Has he got a plan or a pipedream? Elon Musk says Tesla won't use or accept bitcoin until he can be sure it's produced sustainably. Musk announced his new position in a major U-turn on Wednesday, prompting speculation among some experts about whether he had a plan to wean the crypto industry off the fossil fuels that power "mining," the energy-intensive process that creates coins. Tesla could itself take an active role in helping make bitcoin greener by investing in new projects aimed at boosting the use of renewable energy in mining, according to more than a dozen cryptocurrency specialists interviewed by Reuters. Business Yahoo Finance Video 210513 11h47m Dogecoin is still in a steep uptrend but relative strength is concerning: analyst Katie Stockton, founder and managing partner of Fairlead Strategies, joins Yahoo Finance’s Jared Blikre to break down the recent trends of Dogecoin and where investors should be looking going forward. Business Bloomberg 210513 11h46m Colonial Slowly Emerges From Shutdown as Fuel Pinch Lingers (Bloomberg) -- The largest fuel pipeline in the U.S. is running at less than half of capacity after hackers hit its system nearly a week ago, with fuel shortages persisting from Florida to Virginia.Colonial Pipeline Co. resumed shipments Wednesday evening. But flows eastbound near the start of the system, which transports gasoline, diesel and jet fuel from Gulf Coast refineries as far north as New York, are far from normal. Earlier, it emerged that the operating company paid almost $5 million in untraceable cryptocurrency to Eastern European hackers last week to help get gasoline and jet fuel flowing again along the Eastern Seaboard.It’s likely to take days to restore full service. Colonial warned that the pipeline may go down again from time to time during the restart process. The company is also resuming operations before its business systems -- which coordinate fuel shipments -- are back up and running.In a message to filling stations, U.S. President Joe Biden said in a White House briefing on Thursday, “Do not -- I repeat, do not -- try to take advantage of consumers during this time.”The attack on Colonial occurred just weeks before the U.S. Memorial Day Holiday and the start of the summer driving season, with many Americans expected to eagerly take to the roads and the skies after pandemic-induced lockdowns. Over the last few years, hits by hackers to critical energy infrastructure have become more common. In 2018, a cyberattack brought down a third-party communications system used by several natural gas pipelines operators across the U.S.Earlier in the week, pump prices surged above $3 a gallon for the first time in six years as motorists raced to fill tanks. More than half of stations in Virginia, North Carolina and South Carolina are still without fuel, according to retail-tracker GasBuddy.“They don’t tell us when they’re coming, so we don’t know anything,” said Billy Early, a clerk at a Shell station in Asheville, North Carolina. She said the last delivery on Tuesday had lasted four hours before it ran out.Hospitals, railroads and ambulance services that rely on fuel for generators are the main priority as supply trickles in, said Cheryl Waters, president of Atlanta Fuel Company, which services customers in states including Georgia, North Carolina and east Alabama. The company was able to pick up one load this morning.“We’re just being very careful with who we sell our fuel to,” said Waters. “We’re saving it back for our essential businesses.” She expects it will take 10-14 days for her company’s operations to return to normal.As of Thursday morning, about 20,000 barrels an hour of gasoline and other refined products were flowing east on Colonial’s pipeline out of Baton Rouge, Louisiana, according to people who asked not to be identified because the information is commercially sensitive. Throughput starts outside of Houston at 25,000 barrels an hour and slows from there beyond Baton Rouge, the people said.Amid the constraints, fuel traders were even paying each other extra to gain access to the pipeline, the first time that’s happened since before the pandemic.“Don’t panic” Biden said on Thursday. “I know seeing lines at the pumps or gas stations with no gas can be extremely stressful, but this is a temporary situation. Do not get more gas than you need the next few days.” Biden also said the pipeline should be reaching fully capacity soon.New York Attorney General Letitia James issued an alert to New Yorkers concerning potential gasoline price gouging and urged consumers to report dramatic price increases.In an effort to ease the crisis, the Biden administration earlier this week temporarily waived century-old shipping restrictions to allow one foreign-flagged ocean-going tanker to transport gasoline and jet fuel to the East Coast. The White House also waived some gasoline requirements and empowering 10 states to allow heavier-than-normal truck loads of fuels.Colonial normally ships about 2.5 million barrels (105 million gallons) each day, an amount that exceeds the entire oil consumption of Germany. This isn’t the first time Colonial has been forced to shut down. In 2016, an explosion kept the system offline for days, raising gasoline prices and forcing the New York Harbor market to become more dependent on imports of fuel from overseas.The Federal Bureau of Investigation attributed the attack on Colonial to ransomware created by a group called DarkSide. Biden said Russia has “some responsibility” to address the attack but stopped short of blaming the Kremlin, saying “there’s evidence” the hackers or the software they used are “in Russia.”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. Business Yahoo Finance Video 210513 11h46m Margin expansion to be a big story in the next several months: Portfolio Manager Josh Wein, Portfolio Manager with Hennessy Funds, joins Yahoo Finance’s Kristin Myers and Alexis Christoforous to discuss the latest economic data and outlook on the market. Business Reuters 210513 11h45m GLOBAL MARKETS-U.S. stocks rebound following rout, bond yields dip U.S. shares rebounded on Thursday after falling for three consecutive days and benchmark Treasury yields dipped, as investors snapped up technology stocks and shrugged off worries about rising prices, for now. After posting their biggest slump in at least 11 weeks on Wednesday, U.S. shares bounced back as cash-flush investors looked past concerns that accelerating inflation may prompt quicker interest rate hikes, and deployed their funds once more. So intent were investors on leaving inflation worries aside that financial markets barely responded to Thursday's data, which showed U.S. producer prices posting their biggest annual gain since 2010 in April. Howell date : 210513 11h39m25s Business Reuters 210513 11h32m UPDATE 1-Atlantia posts Q1 loss, to decide on Autostrade in June Italian infrastructure group Atlantia on Thursday reported a net loss in the first quarter and confirmed it would decide on the sale of its 88% stake in motorway unit Autostrade by June 11. The group controlled by Italy's Benetton family has been under pressure to loosen its grip on Autostrade since a bridge managed by the motorway unit collapsed in the port city of Genoa on Aug. 14, 2018, killing 43 people. Last month the group decided to submit to shareholders on May 31 an offer it received from state lender CDP, Macquarie and Blackstone for the motorway unit. Business Yahoo Finance 210513 11h28m One big question about the dramatically lower US credit card debt Credit card balances are extremely low, even as spending ticks up as the economy reopens. Everyone from the banks to the Fed has the same question about what it means. Business Bloomberg 210513 11h23m Cathie Wood Fans Buckle Up as ETF Assets Fall to $40 Billion (Bloomberg) -- With tech’s recent pummeling, the cash Cathie Wood is managing in her ETF lineup has just dropped below $40 billion -- but her loyal fan base is largely hanging on for the ride.The founder of Ark Investment Management LLC now controls $39.7 billion in her U.S. exchange-traded funds, down from more than $60 billion at a peak in February, according to data compiled by Bloomberg. The firm is now the 11th largest issuer in the U.S., compared with seventh place earlier this year.A huge portion of the loss is due to the value of her holdings dropping sharply, as speculative tech names with soaring valuations and massive runs come back down to earth. Her flagship ARK Innovation ETF (ARKK) has fallen about 35% from its high. Still, the mass exodus some had anticipated during a period of underperformance hasn’t yet materialized, with traders pulling just $76 million from the fund in April and $301 million so far in May, compared to the $7.1 billion added in the first three months of the year.“It appears that investors still believe in Cathie Wood’s philosophy and think possibly the pullback is short term,” said Mohit Bajaj, director of ETFs for WallachBeth Capital.In fact, the firm’s ETFs have still taken in a net $15.3 billion so far in 2021. The eight-product lineup -- six actively managed funds and two tracking indexes -- has roughly only lost a net $800 million since the end of February.While retail activity has declined in the broad market, it seems day traders are ready to stick with Ark. About $1.1 billion of the $28 billion added to the family of funds since November can be attributed to retail investors, according to a report from Vanda Research.“In periods when Ark ETFs have seen large redemptions, retail investors have actually bought the dip, further highlighting the institutional-retail divide,” wrote analysts Ben Onatibia and Giacomo Pierantoni.Throughout the downturn, Wood has said repeatedly that her strategies haven’t changed and that she invests with a five-year time horizon. She even added to her stakes in Twitter Inc., Roku Inc., Skillz Inc. and Peloton Interactive Inc. last week.Some are now questioning just how long the funds’ drop will last, especially as dip buyers step in. ARKK rose in early trading before falling 3.3% as of 1 p.m. in New York.Open interest in bullish call options on ARKK is at an all-time high, and even similarly elevated activity in bearish put contracts has historically come before a bounce, Chris Murphy at Susquehanna International Group wrote in a note.“It has become oversold on a technical basis,” said Matt Maley, chief market strategist at Miller Tabak & Co. “The weak hands have already sold, so we’re now in the ‘wait and see’ mode. If Ark funds can bounce strongly, the all clear flag will be raised.”(Updates with latest trading activity, additional details in 10th 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. Business Reuters 210513 11h20m AMC cashes in on Reddit-trading frenzy with $428 million share sale The world's largest cinema chain operator's shares have gained more than five-folds in 2021 thanks to interest from amateur traders on Reddit that were piling into heavily shorted stocks such as GameStop Corp and AMC to punish hedge funds that bet against them. AMC said in a statement on Thursday it had sold 43 million shares at an average price of $9.94 apiece in the at-the-market offering, sending its stock nearly 16% higher. World Bloomberg 210513 11h18m Cameron Pushed to Explain Links to Financier: Greensill Update (Bloomberg) -- Former British Prime Minister David Cameron denied being motivated by personal gain when he lobbied government ministers and Bank of England officials on behalf of collapsed lender Greensill Capital.Cameron faced lawmakers over his text and email lobbying efforts, which were aimed at convincing U.K. policy makers to include Greensill in a program of state-backed lending.The former premier is giving oral evidence to the Treasury committee and the public accounts committee, two senior panels of lawmakers. They are both investigating the failure of Greensill, which has now put thousands of U.K. jobs at risk.Key DevelopmentsFormer prime minister says he did due diligence on GreensillCameron says he earned “far more” at Greensill than in Downing StreetSays ex-PMs should face tighter rules on lobbyingCameron now giving evidence to the public accounts committeeRead More: David Cameron Told Sunak Excluding Greensill Would Be ‘Nuts’Explainer: Explaining Supply Chain Finance and Greensill’s Woes: QuickTakeCameron Says Turned to Greensill to Beat Bureaucracy (6:04 p.m.)Cameron has come under sustained questioning from members of the public accounts committee on why supply chain financing was needed for his government to pay pharmacies on time, rather than simply speeding up government payments.He replied that there were barriers to making prompt payments from within government. He cited bureaucracy and “some resistance in the Treasury because early payment has a cost to them.”Cameron said Lex Greensill was brought into government by former top civil servant Jeremy Heywood as an unpaid adviser in 2011, and that he met Greensill “no more than twice” while still prime minister. He also said that Greensill’s firm did not benefit from the pharmacy contract until several years later.“His firm didn’t take over this contract for a further six years, and it did so in a competitive tender,” Cameron said.Cameron to Speak to Official Inquiry Next Week (4:40 p.m.)After Thursday’s two evidence sessions, there’s more to come for Cameron. He told the Treasury committee he’s due next week to speak with the government-commissioned investigation into how Greensill secured U.K. contracts and how the lender’s supply chain financing worked.The inquiry was commissioned last month by Prime Minister Boris Johnson, who put corporate lawyer Nigel Boardman in charge. It hasn’t announced any public evidence sessions.Cameron Says He Could Have Earned More at a Bank (4:25 p.m.)Despite repeated questioning, Cameron declined to say how much he was paid at Greensill or to give an indication of whether it was more than 1 million pounds ($1.4 million).He told the committee it was a “generous, big salary” by anyone’s definition, but suggested perhaps he could have earned even more if he’d worked for a big bank.I Saw No Fraud at Greensill, Cameron Says (4:05 p.m.)Cameron was asked by Conservative committee member Anthony Browne about Greensill’s activity in potentially issuing loans based upon invoices that did not exist.Browne asked the former prime minister whether he was concerned that “there was a large amount of fraud going on.”“I certainly haven’t seen any evidence of that myself directly,” Cameron said.Cameron Says He’s Paid All Due Tax on Greensill Earnings (4 p.m.)The inquiry returned to Cameron’s earnings from Greensill, and when pushed by Labour MP Angela Eagle he once again refused to say how much he was paid. He’s already acknowledged earning far more from the lender than he did as prime minister. (See 3 p.m.)But he was emphatic that he has paid all due tax on his earnings, and insisted that none was offshore.“Everything I have done I have paid full U.K. tax on,” he said. “Every proper tax is paid, income and capital gains.”Cameron Knew of Greensill’s Gupta Exposure (3:54 p.m.)Cameron said of Greensill that before he joined he “did do quite a lot of due diligence and ask a lot of questions, and try to understand the core of what the company was doing.”While much of what Greensill did was supply chain finance, it also offered some riskier loans to some customers. That has left some investors in Greensill securities potentially facing losses.Cameron said he knew there was too much exposure to Sanjeev Gupta’s GFG Alliance, but thought there was a plan to deal with that. Cameron said that Greensill’s large exposure to GFG was not addressed was one of the business’s major problems.Ex-Leaders Should Exercise Restraint, Cameron Says (3:25 p.m.)Cameron acknowledged his “persistence” in contacting government ministers and officials to lobby for Greensill, but said it’s “important” to look at the rules. He suggested that in future it may be more appropriate for ex-prime ministers to be more cautious.“It would be better for an ex-prime minister in the future -- and I will certainly abide by this -- if you’re contacting the government about any commercial issue, and this would be a very rare event, to send one formal letter or one formal email,” he said. “But I think these were exceptional times.”Cameron Says He Often Signs Off Texts With ‘Love’ (3:05 p.m.)Cameron was questioned why he finished a text message to Tom Scholar, a top Treasury official who was his former aide, with the sign-off “Love Dc”.He replied that “anyone I know at all well” receives the sign-off. “I don’t know why; I just do,” Cameron said. “My children tell me I don’t need to sign of text messages at all.”Cameron also said he met Scholar for drinks a “couple of times” since leaving office.Cameron Earned More at Greensill Than as PM (3:00 p.m.)Greensill paid Cameron “far more” than he earned as U.K. prime minister, he told the committee, acknowledging that he held shares in the company. But he also dismissed as “completely absurd” reports that his interest totaled 60 million pounds ($84 million).“I wanted this business to succeed,” he said. “I was being paid, I had shares, I had an interest in it.”Asked about his assiduous lobbying for access to one of the Bank of England’s Covid relief schemes in the first half of 2020, Cameron said personal interest “was not what motivated me.”Cameron Says Greensill Not in Jeopardy at Start of Pandemic (2:45 p.m.)Lawmakers are now questioning Cameron. He insisted that at the start of the Covid-19 pandemic, Greensill was in a good financial position. He has previously said that the first he knew of difficulties was in December 2020.“There was no sense of jeopardy” at the outset of the pandemic, Cameron said. “Greensill had a successful 2019, it was set to have a successful 2020.”“I wanted this business to succeed,” he said. “I was paid an annual amount, a generous amount, much more than I was paid as prime minister.”Cameron Makes Contrite Opening Statement (2:35 p.m.)Cameron opens his testimony with a statement, saying that this session marks a “painful” return to Parliament, which he cals as “a place that I love and respect so much.” Cameron explained his motivations in working for Greensill, and stressed that he abided by all the rules in place on lobbying.“But rules alone are never enough. We learned that in this place there are so many issues, personal conduct and codes of behavior and how such conduct and behavior appears and can be perceived, these things matter too,” he said. ”I believe there are important lessons to be learned,” Cameron added.“I completely accept that former prime ministers are in a different position to others because of the office that we held, and the influence that continues to bring.”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. Business Reuters 210513 11h18m AMC cashes in on Reddit-trading frenzy with $428 mln share sale Cinema operator AMC Entertainment Holdings Inc has raised about $428 million from a share sale, capitalizing on the retail-trading driven surge in its stock earlier this year. The world's largest cinema chain operator's shares have gained more than five-folds in 2021 thanks to interest from amateur traders on Reddit that were piling into heavily shorted stocks such as GameStop Corp and AMC to punish hedge funds that bet against them. AMC said in a statement on Thursday it had sold 43 million shares at an average price of $9.94 apiece in the at-the-market offering, sending its stock nearly 16% higher. Business Bloomberg 210513 11h12m Genworth Falls After Delaying Mortgage IPO on Volatility (Bloomberg) -- Genworth Financial Inc. shares declined after the company postponed a planned initial public offering for its Enact Holdings Inc. unit, citing volatility in the mortgage-insurance market.The IPO, which was expected to raise as much as $623 million, would have been this week’s largest U.S. initial offering. Genworth dropped as much as 5.2% in New York before rebounding to $3.86 at 1:08 p.m., a 0.3% increase.The decision to put the sale on hold follows last month’s collapse of a takeover agreement Genworth had reached with China Oceanwide Holdings Group Co. Taking the mortgage-insurance business public was initially floated as part of a plan to help pay near-term debt as progress on the merger dragged on for more than four years.“Genworth does ultimately need the cash,” Jeffrey Flynn, an analyst with Bloomberg Intelligence, said in an email. “So there is some pressure on them to get it done.” But Flynn said the company’s cash position is “workable,” and a delay might ultimately help if an improving housing market boosts second-quarter results at Enact.Genworth’s ability to meet its obligations isn’t dependent on the IPO, the company said Thursday in a statement. The Richmond, Virginia-based firm said it had about $757 million in cash and liquid assets as of March 31.“In light of the recent significant trading volatility in the mortgage-insurance sector, Genworth’s board of directors determined that current market pricing for the planned offering does not accurately reflect Enact’s value,” Chief Executive Officer Tom McInerney said in the statement. “Therefore, we have decided to postpone the IPO and will continue to evaluate our options as market conditions develop.”The delay followed other recent stumbles in the market. An IPO from the Fortegra Group was withdrawn hours before it was expected to start trading on April 29, with parent Tiptree Inc. also citing adverse market conditions. On May 6, James River Group Holdings Ltd. priced a secondary offering at the sector’s steepest discount ever after adjusting its expected value of outstanding insurance claims. The next day, Chinese insurance-tech firm Waterdrop Inc. tumbled almost 20% from its IPO price in its U.S. market debut.(Updates share price in second 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. Business Yahoo Finance 210513 11h06m Stock market news live updates: Stocks look to rise for the first time in four days after inflation fears ignite sell-off Inflation fears are dogging Wall Street at a time when the U.S. rebound is picking up speed. Howell date : 210513 11h08m48s Howell date : 210513 10h38m12s Howell date : 210513 10h07m35s Business Bloomberg 210513 10h01m Technology Shares Pare Gains; Crude Oil Declines: Markets Wrap (Bloomberg) -- Shares of technology companies traded off the highest levels of the day while the broader U.S. equity market rallied as signs of strengthening labor market helped to temper concern over increasing price pressures.Telsa weighed on the tech-heavy Nasdaq 100 after Chief Executive Elon Musk said the electric-vehicle manufacturer is suspending purchases using Bitcoin, triggering a slide in the digital currency. Financials and utilities helped the benchmark S&P 500 halt a three-day slide. Energy was the only one of the 11 market sectors to decline. A report earlier showed producer prices increased by more than forecast in April, and jobless claims fell. “Taking a step back from inflation, the fact that jobless claims hit another pandemic-era low suggests we’re inching even closer to full reopening, which is no doubt a good thing,” said Mike Loewengart, managing director of investment strategy at E*Trade Financial.U.S. Producer Prices Top Forecasts, Adding to Inflation PressureConfidence that reigned supreme until two weeks ago on the U.S. economy and continued Federal Reserve stimulus has been jolted in the past week with non-farm payrolls falling far short of expectations and inflation rising by the most since 2009. While some investors insist the surge in consumer prices is a one-off reopening burst, the broader markets are hedging against the possibility it may persist and force the Fed to consider tapering its stimulus.“Markets have lost a little bit of confidence that the Fed has control of inflation” and the concern was that the central bank might wait too long to address the rise, Victoria Fernandez, Crossmark Global Investments chief market strategist, said on Bloomberg TV. “I am not sure the market is extremely comfortable with that at this point.”Musk tweeted that Tesla will no longer accept the digital currency for vehicle purchases due to environmental concerns.Alibaba dropped after reporting fourth-quarter results. While revenue beat estimates, the company posted a net loss after an antitrust fine.In Europe, earnings disappointments sent the benchmark gauge lower. BT Group Plc dropped as it missed estimates. Burberry Group Plc declined as guidance disappointed.Treasury markets were calmer, with the 10-year rate holding near 1.69%.Have your say on MLIV’s Question of the Day. Which Assets Hurt If CPI Isn’t Transitory?These are some of the main moves in markets:StocksThe S&P 500 rose 1.1%, more than any closing gain since April 23 as of 12 p.m. New York timeThe Nasdaq 100 rose 0.7%, more than any closing gain since May 7The Dow Jones Industrial Average rose 1.2%, more than any closing gain since March 26The Stoxx Europe 600 fell 0.1%The MSCI World index rose 0.2%, more than any closing gain since May 7CurrenciesThe Bloomberg Dollar Spot Index was little changedThe euro was little changed at $1.2068The British pound fell 0.2% to $1.4030The Japanese yen was little changed at 109.58 per dollarBondsThe yield on 10-year Treasuries declined three basis points, more than any closing loss since May 3Germany’s 10-year yield advanced zero basis points to the highest in more than 23 monthsBritain’s 10-year yield advanced one basis point, climbing for the fourth straight day, the longest winning streak since April 29CommoditiesWest Texas Intermediate crude fell 3.3%, the most since April 5Gold futures rose 0.1% to $1,826 an ounceFor 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. Business Bloomberg 210513 09h57m Alphawave’s London Debut Falls Victim to Global Tech Selloff (Bloomberg) -- Alphawave IP Group Plc sank 16% on its first day of trading in London as the global tech selloff hammered shares of the semiconductor company.Alphawave, a Canadian company which works on increasing semiconductor power efficiency and speed, priced its shares too expensively given the current environment, investors said. The company raised 856 million pounds ($1.2 billion) in the initial public offering, implying a valuation of 3.1 billion pounds for the whole firm.“I didn’t think it would fall that sharply, but it has launched into a market where tech stocks are under pressure,” said Gavin Launder, a fund manager at Legal & General Investment Management who decided against participating in the IPO on valuation grounds.Alphawave shares closed at 343 pence in London on Thursday, down from the IPO price of 410 pence a share. Earlier in the day, the stock fell as much as 24%. “We are delighted to have listed in London,” the company said in an e-mailed statement in response to a request for comment on the pricing and share performance. “We started this journey to be a public company in London for the long-term and we are looking forward to further expanding our business and developing relationships with all of our U.K. and global stakeholders.”Growing apprehension about extreme valuations and the risk that inflation will erode future profits has sparked a worldwide rout across the technology industry this week.Pricing issues have been at the forefront of London’s recent tech IPOs. Cybersecurity company Darktrace Plc surged last month after cutting its valuation by about half before going public. Deliveroo Plc plunged more than 30% in its debut as investors criticized the stock’s price, as well as corporate governance and labor practices.Read More: Deliveroo CEO Pins Weak IPO on Volatility, Archegos FalloutAlphawave’s slump is the latest disappointment for the U.K., which has lobbied to encourage more tech companies to go public. The company had said it preferred London because of its record of listing large semiconductor companies, such as Arm Group and Imagination Technologies Group Plc.“With IPOs, timing is everything and Alphawave launches onto the market on a tide of demand for semiconductors, with shortages of chips disrupting production of cars and electronic goods across the world,” Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown Plc, wrote in a note.Alphawave raised 360 million pounds from the IPO and existing shareholders accounted for the rest, according to a statement. If there’s sufficient demand, underwriters may place as many as 31.3 million additional shares.Barclays Plc and JPMorgan Chase & Co. are joint global coordinators, while BMO Capital Markets is joint bookrunner.(Updates with Alphawave comment, closing share price.)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. World Bloomberg 210513 09h56m Cameron Saw No Fraud, Knew About Gupta Risk: Greensill Update (Bloomberg) -- Former British Prime Minister David Cameron denied being motivated by personal gain when he lobbied government ministers and Bank of England officials on behalf of collapsed lender Greensill Capital.Cameron faced lawmakers over his text and email lobbying efforts, which were aimed at convincing U.K. policy makers to include Greensill in a program of state-backed lending.The former premier is giving oral evidence to the Treasury committee and the public accounts committee, two senior panels of lawmakers. The committees are investigating the failure of Greensill, which has now put thousands of U.K. jobs at risk.Key DevelopmentsFormer prime minister says he did due diligence on GreensillCameron says he earned “far more” at Greensill than in Downing StreetSays ex-PMs should face tighter rules on lobbyingCameron finished giving evidence to Treasury committee. He is due at the public accounts committee from 5 p.m.Read More: David Cameron Told Sunak Excluding Greensill Would Be ‘Nuts’Explainer: Explaining Supply Chain Finance and Greensill’s Woes: QuickTakeCameron to Speak to Official Inquiry Next Week (4:40 p.m.)After Thursday’s two evidence sessions, there’s more to come for Cameron. He told the Treasury committee he’s due next week to speak with the government-commissioned investigation into how Greensill secured U.K. contracts and how the lender’s supply chain financing worked.The inquiry was commissioned last month by Prime Minister Boris Johnson, who put corporate lawyer Nigel Boardman in charge. It hasn’t announced any public evidence sessions.Cameron Says He Could Have Earned More at a Bank (4:25 p.m.)Despite repeated questioning, Cameron declined to say how much he was paid at Greensill or to give an indication of whether it was more than 1 million pounds ($1.4 million).He told the committee it was a “generous, big salary” by anyone’s definition, but suggested perhaps he could have earned even more if he’d worked for a big bank.I Saw No Fraud at Greensill, Cameron Says (4:05 p.m.)Cameron was asked by Conservative committee member Anthony Browne about Greensill’s activity in potentially issuing loans based upon invoices that did not exist.Browne asked the former prime minister whether he was concerned that “there was a large amount of fraud going on.”“I certainly haven’t seen any evidence of that myself directly,” Cameron said.Cameron Says He’s Paid All Due Tax on Greensill Earnings (4 p.m.)The inquiry returned to Cameron’s earnings from Greensill, and when pushed by Labour MP Angela Eagle he once again refused to say how much he was paid. He’s already acknowledged earning far more from the lender than he did as prime minister. (See 3 p.m.)But he was emphatic that he has paid all due tax on his earnings, and insisted that none was offshore.“Everything I have done I have paid full U.K. tax on,” he said. “Every proper tax is paid, income and capital gains.”Cameron Knew of Greensill’s Gupta Exposure (3:54 p.m.)Cameron said of Greensill that before he joined he “did do quite a lot of due diligence and ask a lot of questions, and try to understand the core of what the company was doing.”While much of what Greensill did was supply chain finance, it also offered some riskier loans to some customers. That has left some investors in Greensill securities potentially facing losses.Cameron said he knew there was too much exposure to Sanjeev Gupta’s GFG Alliance, but thought there was a plan to deal with that. Cameron said that Greensill’s large exposure to GFG was not addressed was one of the business’s major problems.Ex-Leaders Should Exercise Restraint, Cameron Says (3:25 p.m.)Cameron acknowledged his “persistence” in contacting government ministers and officials to lobby for Greensill, but said it’s “important” to look at the rules. He suggested that in future it may be more appropriate for ex-prime ministers to be more cautious.“It would be better for an ex-prime minister in the future -- and I will certainly abide by this -- if you’re contacting the government about any commercial issue, and this would be a very rare event, to send one formal letter or one formal email,” he said. “But I think these were exceptional times.”Cameron Says He Often Signs Off Texts With ‘Love’ (3:05 p.m.)Cameron was questioned why he finished a text message to Tom Scholar, a top Treasury official who was his former aide, with the sign-off “Love Dc”.He replied that “anyone I know at all well” receives the sign-off. “I don’t know why; I just do,” Cameron said. “My children tell me I don’t need to sign of text messages at all.”Cameron also said he met Scholar for drinks a “couple of times” since leaving office.Cameron Earned More at Greensill Than as PM (3:00 p.m.)Greensill paid Cameron “far more” than he earned as U.K. prime minister, he told the committee, acknowledging that he held shares in the company. But he also dismissed as “completely absurd” reports that his interest totaled 60 million pounds ($84 million).“I wanted this business to succeed,” he said. “I was being paid, I had shares, I had an interest in it.”Asked about his assiduous lobbying for access to one of the Bank of England’s Covid relief schemes in the first half of 2020, Cameron said personal interest “was not what motivated me.”Cameron Says Greensill Not in Jeopardy at Start of Pandemic (2:45 p.m.)Lawmakers are now questioning Cameron. He insisted that at the start of the Covid-19 pandemic, Greensill was in a good financial position. He has previously said that the first he knew of difficulties was in December 2020.“There was no sense of jeopardy” at the outset of the pandemic, Cameron said. “Greensill had a successful 2019, it was set to have a successful 2020.”“I wanted this business to succeed,” he said. “I was paid an annual amount, a generous amount, much more than I was paid as prime minister.”Cameron Makes Contrite Opening Statement (2:35 p.m.)Cameron opens his testimony with a statement, saying that this session marks a “painful” return to Parliament, which he cals as “a place that I love and respect so much.” Cameron explained his motivations in working for Greensill, and stressed that he abided by all the rules in place on lobbying.“But rules alone are never enough. We learned that in this place there are so many issues, personal conduct and codes of behavior and how such conduct and behavior appears and can be perceived, these things matter too,” he said. ”I believe there are important lessons to be learned,” Cameron added.“I completely accept that former prime ministers are in a different position to others because of the office that we held, and the influence that continues to bring.”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. U.S. Reuters 210513 09h54m Drivers struggle to find fuel in U.S. Southeast as pipeline begins restart Drivers in the U.S. Southeast struggled to find gasoline on Thursday, with most pumps in the region dry after days of panic buying, triggered by a major pipeline shutdown. Around 70% of gas stations in the state of North Carolina were without fuel, along with about half the stations in Virginia, South Carolina and Georgia, according to tracking firm GasBuddy. Nicole Guy, a leasing agent in Atlanta, spent much of Thursday morning driving from one shuttered gas station to another in a desperate attempt to refill her tank, before pulling over to gather her thoughts. Business Yahoo Finance Video 210513 09h49m Stimulus has 'bolstered household balance sheets': DoubleLine Portfolio Manager DoubleLine Structured Products Portfolio Manager Andrew Hsu joins Yahoo Finance’s Julia La Roche to discuss housing, mortgage rates, infrastructure, and emerging markets. Howell date : 210513 09h36m58s Business Reuters 210513 09h31m UPDATE 1-U.S. carriers begin repairs on Boeing 737 MAX planes, expect quick return United Airlines and two other major U.S. carriers said on Thursday they will quickly repair more than 60 Boeing 737 MAX planes grounded early last month over an electrical problem that could have interfered with some critical systems. Boeing Co sent all affected carriers service bulletins late on Wednesday on how to address the production issue, which had affected 109 planes worldwide. The Federal Aviation Administration had signed off on the service bulletins, Reuters first reported late on Wednesday. World Bloomberg 210513 09h30m NYC Mayor Offers Shake Shack Incentive for Vaccine: Virus Update (Bloomberg) -- New York City Mayor Bill de Blasio offered vouchers for a Shake Shack burger or sandwich for people who get vaccinated. A survey in the European Union found increased hesitancy after the rollout of AstraZeneca Plc’s shot was paused, while Serbia cited evidence that a $31 cash incentive works.CureVac NV and GlaxoSmithKline Plc released encouraging early data from laboratory testing of their second-generation Covid-19 vaccine, including evidence that it will provide good protection against some virus variants. Singapore’s air-travel bubble with Hong Kong is facing further delays after cases in the community rose to the most since July because of a cluster at Changi Airport.Key DevelopmentsGlobal Tracker: Cases top 160 million; deaths exceed 3.3 millionVaccine Tracker: More than 1.36 billion doses have been givenU.S. Teen Vaccine Drive Turns to Schools, Doctors to Get Shots OutMuch-maligned Sinovac shot getting greater acceptanceJapan Seeks to Ease Olympics Fears With No-Infection Test EventsWhere are we in the quest for coronavirus treatments?Subscribe to a daily update on the virus from Bloomberg’s Prognosis team here. Click CVID on the terminal for global data on cases and deaths.U.S. Teachers’ Union to Back Fall Reopening (11:15 a.n. NY)The president of one of the largest U.S. teachers’ unions planned to call for a full reopening of public schools by the fall. Randi Weingarten’s announcement for the American Federation of Teachers marks a shift by a prominent voice opposing a return to in-person, full-time instruction.“Conditions have changed,” Weingarten said in prepared remarks for a speech on Thursday. “We can and we must reopen schools in the fall for in-person teaching, learning and support. And keep them open. Fully and safely five days a week.”Philippines Eases Restrictions in Manila (10:54 a.m. NY) The Manila metro area and surrounding provinces will shift to the second-lowest level of curbs called “general community quarantine” until the end of May, presidential spokesperson Harry Roque said Thursday. The easing for the region, which is the country’s economic engine, follows a worse-than-expected contraction in the last quarter. Singapore School Halts In-Person Classes (10:52 a.m. NY)A Singapore elementary school switched to home learning through Tuesday after a students tested positive, the Education Ministry said in a statement cited by broadcaster CNA. The Yio Chu Kang Primary School student was infected by a household member and not at the school, according to the statement. De Blasio: Burger, Sandwich For Vaccination (10:40 a.m. NY)New York City Mayor Bill de Blasio said people who get a vaccine will get a voucher for a burger or sandwich from Shake Shack Inc. For those already vaccinated, people can get a free order of French fries after showing a vaccination card.The mayor appealed to parents to get their kids vaccinated as the city opened up shots for ages 12 to 15 in a bid to “get kids off of Zoom.” The city will also reopen some of its festivals, including the Governors Ball.Colorado Nursing Homes Reported Hit (10:40 a.m. NY)Covid-19 outbreaks are increasing at Colorado nursing homes, accounting for six deaths last week, the Denver Post reported Thursday. Cases are also rising at assisted-living facilities and elementary schools, the Post reported.UAE Allows Pfizer-BioNTech for Adolescents (10:18 a.m. NY)The United Arab Emirates allowed the use of the Pfizer-BioNTech vaccine for ages 12 to 15, based on clinical studies and local evaluation, the state-run WAM news agency reported. With about 11.4 million shots administered, the UAE is set to cover 75% of its population in another two months if the pace holds up, according to the Bloomberg Vaccine Tracker.African Testing Declines as Variants Spread (9:11 a.m. NY)The African Union’s health agency urged countries on the continent to increase testing for the coronavirus as more states report different variants of the disease.Testing dropped 21% last week, John Nkengasong, director of the Africa Centres for Disease Control and Prevention, said in an online briefing Thursday.Six African nations including South Africa, Angola, the Democratic Republic of Congo, Morocco, Uganda and Kenya have reported the B.1.617 strain that is devastating India and which initial studies show spreads more easily. That’s in addition to the 24 African nations that reported cases of the B.1.1.7 mutation found last year in the U.K., with the same number of countries reporting the B.1.351 variant first identified in South Africa in 2020.EU Vaccine Hesitancy Rose After Astra Pause (7:42 a.m. NY)Vaccine hesitancy increased in the European Union after the suspension of AstraZeneca Plc’s vaccine, with more than a third of adults in the bloc indicating they were unlikely to get immunized from Covid-19, according to a Eurofound online survey.After several EU countries suspended use of Astra’s shot in mid-March, 34% of respondents in February and March said they were hesitant to take the vaccine. Before the pause, 25% said they were “rather unlikely” or “very unlikely” to get it.CureVac, GSK Report Positive Lab Data (7:35 a.m. NY)CureVac NV and GlaxoSmithKline Plc released positive early data from laboratory testing of their second-generation Covid-19 vaccine, with signs the shot could also provide good protection against some variants of the virus.Preclinical studies showed strong immune responses in rats, with significant neutralization of variants first discovered in the U.K., South Africa and Denmark, CureVac said in a statement Thursday. Human trials are expected to start in the third quarter.Billionaire’s South Africa Vaccine Tech Pledge (7:19 a.m. NY)U.S. biotech billionaire Patrick Soon-Shiong will give an initial 3 billion rand ($213 million) to South Africa, the country of his birth, to help with the transfer of new technology for Covid-19 vaccines and other therapies.The African continent accounts for only about 1.5% of globally administered shots, data from the Africa Centers for Disease Control and Prevention show.Serb Cash Vaccine Incentives Working (6:56 a.m. NY)The Serbian government’s pledge to pay 3,000 dinars ($31) to those receiving vaccines helped speed up inoculation to almost 24,000 people a day from around 8,000 before the offer was announced on May 5, President Aleksandar Vucic said on Thursday.Among the first on the continent to launch mass vaccination in January with shots from China, Russia and western drugmakers, Serbia faced a slowdown amid skepticism toward vaccines, even as it offered its citizens the choice of four different jabs.Angola Approves Single-Dose Sputnik Light (6:40 a.m. NY)Angola’s Ministry of Health approved the use of Russia’s single-dose Sputnik Light vaccine against the coronavirus, according to the Russian Direct Investment Fund.The Sputnik Light is the first component of the Sputnik two-dose vaccine, which Angola approved in March, the fund said in a statement. Russia’s state-run wealth fund backed the vaccine’s development and is in charge of the inoculation’s international rollout.Seychelles Says Covid Cases Easing (6:25 a.m. NY)Seychelles, which has vaccinated a greater proportion of its population against Covid-19 than any other nation, said a surge in cases of the disease is easing.While the number of active cases has risen to 2,739, from 2,486 on May 10, the seven-day rolling average of infections has fallen to 178 from 322 about a week ago, the health ministry said.Singapore Cases at 10-Month High (5:12 p.m. HK)Singapore’s virus cases in the local community rose to the highest since July last year as authorities found more infections from an existing cluster at Changi Airport, raising concerns that an air travel bubble with Hong Kong may get delayed again.Of the 24 cases discovered, 17 were linked to a cluster at Changi Airport, the Health Ministry said. This brings the total number of cases linked to the airport to 42.China Sets Up New Health Body (4:34 p.m. HK)China announced a new disease prevention and control agency under the aegis of its top health body, in what is its biggest move yet to address gaps that caused critical delays in sounding the alarm about Covid-19 when it first emerged in Wuhan in late 2019.The new National Disease Prevention and Control Bureau will draft policies regarding infectious disease control and provide guidance on the surveillance of epidemics, among other public health mandates, state news agency Xinhua reported on Thursday.German Cases Numbers Continue Dropping (2:24 p.m. HK)Germany’s new infections kept decreasing with 6,590 cases Thursday. German authorities have become increasingly optimistic that Europe’s largest economy can loosen restrictions, including on outdoor dining and domestic tourism.Rush for Vaccines After Taipei Outbreak (2:11 p.m. HK)A rising number of Covid-19 infections is prompting thousands of members of the hesitant Taiwanese public to get vaccinated. A record 16,180 people received vaccinations Wednesday, with 36 confirmed cases since Tuesday. That outbreak prompted the government to reimpose restrictions on large gatherings for the first time since last summer, although it sees a smaller chance of further raising the Covid-19 alert level, the Apple Daily reported, citing the health minister.Tokyo new Cases Exceed 1,000 (1:39 p.m. HK)Tokyo reported 1,010 new cases Thursday, with the 7-day average climbing. Japan’s northern Hokkaido Prefecture is proceeding with “careful considerations” over whether to ask the central government to declare a state of emergency as virus infections soar, NHK reports. The capital Sapporo is expected to report a daily record of about 500 infections Thursday, national broadcaster NHK says, while there were a record 712 cases across the prefecture, FNN reported. The Olympic marathon is scheduled to be held in Sapporo.India Tops 300,000 Cases for 22nd Day (1:29 p.m. HK)There were more than 300,000 new confirmed Covid-19 cases in India for the 22nd consecutive day. Total confirmed virus cases were at 23.7 million as of 8 a.m. local time Thursday, government data shows. There were 362,727 new cases in the previous 24 hours and 4,120 confirmed deaths, bringing the death toll to 258,317 so far.India’s Drug Controller approved clinical trials of Covaxin for people age 2 to 18. Manufacturer Bharat Biotech will conduct Phase II/III trials on 525 healthy volunteers, according to a government release Thursday.CDC Approves Pfizer Shot for Young Teens (12:50 p.m. HK)A group of medical experts said children ages 12 to 15 years old can safely take the Covid-19 vaccine made by Pfizer Inc. and BioNTech SE, opening an important new phase of the U.S. immunization effort.The Centers for Disease Control and Prevention approved 12-15 year olds taking the Covid-19 vaccine made by Pfizer Inc. and BioNTech SE, opening an important new phase of the U.S. immunization effort. That was after it was cleared by the Food and Drug Administration and a group of medical experts said it was safe. California announced it would allow parents of eligible children to start booking appointments Thursday.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. World Bloomberg 210513 09h29m Ex-U.K. PM Denies Lobbying for Personal Gain: Greensill Update (Bloomberg) -- Former British Prime Minister David Cameron denied being motivated by personal gain when he lobbied government ministers and Bank of England officials on behalf of collapsed lender Greensill Capital.Cameron faced lawmakers over his text and email lobbying efforts, which were aimed at convincing U.K. policy makers to include Greensill in a program of state-backed lending.The former premier is giving oral evidence to the Treasury committee and the public accounts committee, two senior panels of lawmakers. The committees are investigating the failure of Greensill, which has now put thousands of U.K. jobs at risk.Key DevelopmentsCameron says he earned “far more” at Greensill than in Downing StreetSays ex-PMs should face tighter rules on lobbyingInsists he is “desperately sorry” Greensill collapsedGiving evidence to Treasury committee. Due at public accounts committee from 5 p.m.Read More: David Cameron Told Sunak Excluding Greensill Would Be ‘Nuts’Cameron Says He Could Have Earned More at a Bank (4:25 p.m.)Despite repeated questioning, Cameron declined to say how much he was paid at Greensill or to give an indication of whether it was more than 1 million pounds ($1.4 million).He told the committee it was a “generous, big salary” by anyone’s definition, but suggested perhaps he could have earned even more if he’d worked for a big bank.I Saw No Fraud at Greensill, Cameron Says (4:05 p.m.)Cameron was asked by Conservative committee member Anthony Browne about Greensill’s activity in potentially issuing loans based upon invoices that did not exist.Browne asked the former prime minister whether he was concerned that “there was a large amount of fraud going on.”“I certainly haven’t seen any evidence of that myself directly,” Cameron said.Cameron Says He’s Paid All Due Tax on Greensill Earnings (4 p.m.)The inquiry returned to Cameron’s earnings from Greensill, and when pushed by Labour MP Angela Eagle he once again refused to say how much he was paid. He’s already acknowledged earning far more from the lender than he did as prime minister. (See 3 p.m.)But he was emphatic that he has paid all due tax on his earnings, and insisted that none was offshore.“Everything I have done I have paid full U.K. tax on,” he said. “Every proper tax is paid, income and capital gains.”Cameron Knew of Greensill’s Gupta Exposure (3:54 p.m.)Cameron said of Greensill that before he joined he “did do quite a lot of due diligence and ask a lot of questions, and try to understand the core of what the company was doing.”While much of what Greensill did was supply chain finance, it also offered some riskier loans to some customers. That has left some investors in Greensill securities potentially facing losses.Cameron said he knew there was too much exposure to Sanjeev Gupta’s GFG Alliance, but thought there was a plan to deal with that. Cameron said that Greensill’s large exposure to GFG was not addressed was one of the business’s major problems.Ex-Leaders Should Exercise Restraint, Cameron Says (3:25 p.m.)Cameron acknowledged his “persistence” in contacting government ministers and officials to lobby for Greensill, but said it’s “important” to look at the rules. He suggested that in future it may be more appropriate for ex-prime ministers to be more cautious.“It would be better for an ex-prime minister in the future -- and I will certainly abide by this -- if you’re contacting the government about any commercial issue, and this would be a very rare event, to send one formal letter or one formal email,” he said. “But I think these were exceptional times.”Cameron Says He Often Signs Off Texts With ‘Love’ (3:05 p.m.)Cameron was questioned why he finished a text message to Tom Scholar, a top Treasury official who was his former aide, with the sign-off “Love Dc”.He replied that “anyone I know at all well” receives the sign-off. “I don’t know why; I just do,” Cameron said. “My children tell me I don’t need to sign of text messages at all.”Cameron also said he met Scholar for drinks a “couple of times” since leaving office.Cameron Earned More at Greensill Than as PM (3:00 p.m.)Greensill paid Cameron “far more” than he earned as U.K. prime minister, he told the committee, acknowledging that he held shares in the company. But he also dismissed as “completely absurd” reports that his interest totaled 60 million pounds ($84 million).“I wanted this business to succeed,” he said. “I was being paid, I had shares, I had an interest in it.”Asked about his assiduous lobbying for access to one of the Bank of England’s Covid relief schemes in the first half of 2020, Cameron said personal interest “was not what motivated me.”Cameron Says Greensill Not in Jeopardy at Start of Pandemic (2:45 p.m.)Lawmakers are now questioning Cameron. He insisted that at the start of the Covid-19 pandemic, Greensill was in a good financial position. He has previously said that the first he knew of difficulties was in December 2020.“There was no sense of jeopardy” at the outset of the pandemic, Cameron said. “Greensill had a successful 2019, it was set to have a successful 2020.”“I wanted this business to succeed,” he said. “I was paid an annual amount, a generous amount, much more than I was paid as prime minister.”Cameron Makes Contrite Opening Statement (2:35 p.m.)Cameron opens his testimony with a statement, saying that this session marks a “painful” return to Parliament, which he cals as “a place that I love and respect so much.” Cameron explained his motivations in working for Greensill, and stressed that he abided by all the rules in place on lobbying.“But rules alone are never enough. We learned that in this place there are so many issues, personal conduct and codes of behavior and how such conduct and behavior appears and can be perceived, these things matter too,” he said. ”I believe there are important lessons to be learned,” Cameron added.“I completely accept that former prime ministers are in a different position to others because of the office that we held, and the influence that continues to bring.”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. World Bloomberg 210513 09h25m Shutdown of Export ‘Jugular’ Strands Hundreds of Grain Barges (Bloomberg) -- Vessels and tugs pushing more than 700 barges remained stalled Thursday on the Mississippi River near Memphis, slowing the flow of everything from grains to metals to fuel on the key U.S. waterway.The river remains shut while the Tennessee Department of Transportation inspects a large crack that was found in a highway bridge spanning the waterway, the U.S. Coast Guard said Thursday. Traders speculated that, based on past experience, the river might be partially opened for restricted movements while repairs were being done.The Mississippi River is the main artery for U.S. crop exports, with covered barges full of grain and soy floating to terminals along the Gulf of Mexico. Any sustained outage could disrupt shipments out of the Gulf, although traders can also send some supplies on trains and divert to ports along the U.S. Pacific Northwest.A lengthy halt could further roil crop markets, where soybeans and corn futures have hit multiyear highs amid adverse weather in Latin America and a buying spree from China.“The river is the jugular for the export market in the Midwest for both corn and beans,” said Colin Hulse, a senior risk management consultant at StoneX in Kansas City. “The length of the blockage is important. If they cannot quickly get movement, then it is a big deal. If it slows or restricts movement for a longer period it can be a big deal as well.”The New Orleans Port Region moved 47% of waterborne agricultural exports in 2017, according to the U.S. Department of Agriculture. The majority of these exports were bulk grains and bulk grain products, such as corn, soybeans, animal feed, and rice. The region also supports a significant amount of edible oil exports, such as soybean and corn oils and even attracted 13% of U.S. waterborne frozen poultry exports in 2017.The crack halting vehicle and waterway traffic is in the truss of the I-40 Hernando DeSoto Bridge, which was found during a routine inspection, according to a Tuesday press release from the Tennessee DOT.Beth Emmons, assistant director of the community relations division at the Tennessee DOT, said Wednesday they’re hoping to get the boat traffic moving “ASAP,” but didn’t have a more specific timeframe. “We certainly understand the urgency,” Emmons wrote in an email. “But we must make sure it’s safe.””My sense is that it is not a big deal for river traffic as it will be a short-term disruption,” said Stephen Nicholson, a senior analyst for grains and oilseeds at Rabobank. “The good news is most of fertilizer has already come up river and soybean exports are at their low point. However, corn exports continue at a strong pace, so we may see a slight delay in corn barges reaching NOLA.”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. Business Reuters 210513 09h25m TMX Group seeking data & analytics deals to build on expanded capabilities TMX Group plans to further grow its data and analytics business with acquisitions that can help it build scale after a raft of deals in recent years has already expanded its capabilities in the space, its chief executive told Reuters. The operator of the Toronto stock exchange, Canada's biggest, said this week it would acquire Tradesignal, a German provider of energy markets analysis tools. The acquisition was undertaken by Trayport, TMX's European wholesale energy markets platform that it bought in 2017. Business Reuters 210513 09h18m FOREX-Dollar flat after more evidence of rising inflation The dollar held steady near week highs on Thursday after the U.S. Labor Department reported higher producer prices in April, further evidence that inflation is rising in the United States. The producer price index rose 0.6% in April after surging 1.0% in March. The dollar rose on Wednesday to one-week highs as some investors increased bets that the Federal Reserve could raise interest rates sooner than the bank has forecast. Howell date : 210513 09h06m22s U.S. Yahoo Finance 210513 09h00m FDA ‘highly culpable’ for opioid crisis, says ‘Empire of Pain’ author Amid the COVID-19 pandemic, the opioid crisis has turned into a deadly drug overdose epidemic, impacting nearly every state in the country. Business Reuters 210513 08h56m Google wins cloud deal from SpaceX for Starlink internet service SpaceX will set up ground stations within Google's data centers that connect to the Starlink satellites, enabling fast and secure internet services via Google Cloud, the search giant said. This service is expected to be available in the second half of 2021 for enterprise customers, the company said. Business Reuters 210513 08h54m EMERGING MARKETS-Brazil's real leads Latam recovery * Brazil economic activity slows less than expected in March * Mexico, Peru and Chile c.bank meetings due By Shashank Nayar May 13 (Reuters) - Brazil's real led gains across Latin American currencies on Thursday as economic growth slowed less than expected, while most other stocks and currencies recovered from steep losses in the prior session after a spike in U.S. inflation. The real gained 0.9% and was set for its best single day gain in a week, as economic activity in March recorded a smaller decline than economists had expected, implying that first quarter economic growth rose 2.3%. Business Bloomberg 210513 08h48m Colonial Pipeline Paid Hackers Nearly $5 Million in Ransom (Bloomberg) -- Colonial Pipeline Co. paid nearly $5 million to Eastern European hackers on Friday, contradicting reports earlier this week that the company had no intention of paying an extortion fee to help restore the country’s largest fuel pipeline, according to two people familiar with the transaction.The company paid the hefty ransom in untraceable cryptocurrency within hours after the attack, underscoring the immense pressure faced by the Georgia-based operator to get gasoline and jet fuel flowing again to major cities along the Eastern Seaboard, those people said. A third person familar with the situation said U.S. government officials are aware that Colonial made the payment.Once they received the payment, the hackers provided the operator with a decrypting tool to restore its disabled computer network. The tool was so slow that the company continued using its own backups to help restore the system, one of the people familiar with the company’s efforts said.A representative from Colonial declined to comment, as did a spokesperson for the National Security Council.The hackers, which the FBI said are linked to a group called DarkSide, specialize in digital extortion and are believed to be located in Russia or Eastern Europe.On Wednesday, media outlets including the Washington Post and Reuters reported that the company had no immediate intention of paying the ransom. Those reports were based on anonymous sources.Ransomware is a type of malware that locks up a victim’s files, which the attackers promise to unlock for a payment. More recently, some ransomware groups have also stolen victims’ data and threatened to release it unless paid -- a kind of double extortion.Deputy National Security Advisor Anne Neuberger on Monday acknowledged that sometimes companies may have no choice but to pay ransoms, telling reporters: “We recognize, though, that companies are often in a difficult position if their data is encrypted and they do not have backups and cannot recover the data.”The FBI discourages organizations from paying ransom to hackers, saying there is no guarantee they will follow through on promises to unlock files. It also provides incentive to other would-be hackers, the agency says. Such guidance provides a quandary for victims who have to weigh the risks of not paying with the costs of lost or exposed records.A report released last month by a ransomware task force said the amount paid by ransomware victims increased by 311% in 2020, reaching about $350 million in cryptocurrency. The average ransom paid by organizations in 2020 was $312,493, according to report.Colonial, which operates the largest fuel pipeline in the U.S., became aware of the hack around May 7 and shut down its operations, which led to fuel shortages and lines at gas stations along the East Coast.(Updates with U.S. government awareness in second 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. Business Yahoo Finance Video 210513 08h45m Inflation spooks the market On Wednesday, inflation data left markets concerned as investors gripped with the idea of higher inflation leading to rate hikes from the Fed. Myles Udland explains how this could be a good thing for corporate profits as consumer demand might be moving faster than expected. Business Bloomberg 210513 08h37m Tech Leads Stocks Higher; Crude Oil Declines: Markets Wrap (Bloomberg) -- U.S. stocks snapped a three-day slide, with the technology sector leading the rebound. Bond yields, the dollar and crude oil all declined, reversing Wednesday’s increases.The benchmark S&P 500 rose after posting its biggest one-day drop since February on Wednesday. The tech-heavy Nasdaq 100 also pushed higher, led by Apple and Microsoft. A report earlier showed producer prices increased by more than forecast in April, and jobless claims fell. Bitcoin dropped to around $50,000 as Tesla suspended purchases using the cryptocurrency.“Taking a step back from inflation, the fact that jobless claims hit another pandemic-era low suggests we’re inching even closer to full reopening, which is no doubt a good thing,” said Mike Loewengart, managing director of investment strategy at E*Trade Financial.U.S. Producer Prices Top Forecasts, Adding to Inflation PressureConfidence that reigned supreme until two weeks ago on the U.S. economy and continued Federal Reserve stimulus has been jolted in the past week with non-farm payrolls falling far short of expectations and inflation rising by the most since 2009. While some investors insist the surge in consumer prices is a one-off reopening burst, the broader markets are hedging against the possibility it may persist and force the Fed to consider tapering its stimulus.“Markets have lost a little bit of confidence that the Fed has control of inflation” and the concern was that the central bank might wait too long to address the rise, Victoria Fernandez, Crossmark Global Investments chief market strategist, said on Bloomberg TV. “I am not sure the market is extremely comfortable with that at this point.”Tesla gained even after Elon Musk tweeted that Tesla will no longer accept the digital currency for vehicle purchases due to environmental concerns.Alibaba dropped after reporting fourth-quarter results. While revenue beat estimates, the company posted a net loss after an antitrust fine.In Europe, earnings disappointments sent the benchmark gauge lower. BT Group Plc dropped 6% as it missed estimates. Burberry Group Plc declined 6.8% as guidance disappointed.Treasury markets were calmer, with the 10-year rate holding near 1.69%.Have your say on MLIV’s Question of the Day. Which Assets Hurt If CPI Isn’t Transitory?These are some of the main moves in markets: StocksThe S&P 500 rose 1.4% at 10:36 a.m. New York time, the most since April 23 as of 10:36 a.m. New York timeThe Nasdaq 100 rose 1.4%, more than any closing gain since April 15The Dow Jones Industrial Average rose 1.4%, more than any closing gain since March 10The Stoxx Europe 600 fell 0.1%The MSCI World index rose 0.5%, more than any closing gain since May 7CurrenciesThe Bloomberg Dollar Spot Index fell 0.1%, more than any closing loss since May 7The euro rose 0.1% to $1.2086The British pound was little changed at $1.4056The Japanese yen was little changed at 109.58 per dollarBondsThe yield on 10-year Treasuries declined two basis points, more than any closing loss since May 5Germany’s 10-year yield advanced one basis point to the highest in almost two yearsBritain’s 10-year yield advanced one basis point, climbing for the fourth straight day, the longest winning streak since April 29CommoditiesWest Texas Intermediate crude fell 2.6%, the most since April 30Gold futures were little changedFor 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. Howell date : 210513 08h35m45s Business Yahoo Finance Video 210513 08h28m Companies slowly start to raise prices over exploding inflation data Yahoo Finance's Brian Sozzi breaks down why more companies are raising prices after U.S. consumer prices climbers 0.8% in April. Business Yahoo Finance 210513 08h25m Amazon looks to hire 75,000, offers $17 an hour and $1K sign-on bonus Amazon is going on another hiring spree, adding another 75,000 jobs. Business Reuters 210513 08h21m Amazon to hire 75,000 workers, offers $100 extra for vaccination proof Demand for hourly staff at restaurants, factories, retail stores and fulfillment centers is rising as e-commerce demand remains robust, while more consumers are expected to step out of their homes after a year of lockdown living. Amazon will pay the new hires an average starting pay of more than $17 per hour, reflecting recent hikes of between 50 cents and $3 an hour for about half a million fulfillment-center workers in the United States. Business Bloomberg 210513 08h18m Colonial Restarts After Cyberattack But Fuel Curbs to Linger (Bloomberg) -- The largest gasoline pipeline in the U.S. is returning to service following a cyberattack that took the fuel artery offline for five days, offering hope that fuel shortages in several states will soon come to an end.Colonial Pipeline Co., operator of a conduit that handles more fuel than Germany consumes, said it began to resume shipments around 5 p.m. Eastern time Wednesday. In an update on Thursday morning, it said deliveries have begun to most of the pipeline’s markets.Despite the resumption of operations, disruption persists in large parts of the Eastern and Southern U.S. as motorists contend with fuel shortages, and it’s likely to be days before normal supplies are returned to normal. President Joe Biden urged Americans “to just purchase what they need, and not hoard fuel, as supply is restored,” Press Secretary Jen Psaki said in a statement Thursday.“Resumption of flows is the start, but the race to logistically replenish retail gas stations is the next step,” said Michael Tran, an analyst at RBC Capital Markets. “The restarting of the Colonial pipeline is the beginning of the end of the crisis, not the end.”In an effort to provide relief, the Biden administration temporarily waived century-old shipping restrictions to allow one foreign-flagged ocean-going tanker to help relieve the shortages. Still, the sailing time alone for a ship to take fuel from Houston to New York would be six or seven days.Gasoline stations ran dry from Florida to Virginia after Colonial was forced to take systems offline on May 7. In parts of the U.S. South, three in every four gas stations had no fuel as of Wednesday, while in Washington, D.C., cars were lining up for blocks as they waited to fill up.Optimism that the situation will start returning to normal sent benchmark gasoline futures down as much as 3.1% in New York trading. Earlier in the week, pump prices soared above $3 a gallon for the first time in six years.The administration temporarily issued a waiver to the 101-year-old Jones Act for one unidentified company. The act stipulates goods transported between U.S. ports be carried on ships built in the U.S. and crewed by American workers.Widespread waiving of the requirements could allow foreign-flagged tankers to help fill the supply gap left by the interruption to the pipeline. The initial waiver is for one tanker although more are under consideration, a White House official said. Typical cargo deliveries into the U.S. East Coast are about 300,000 barrels.Earlier this week, the White House announced several other measures to blunt the crisis, including waiving some gasoline requirements and empowering 10 states to allow heavier-than-normal truck loads of fuels.Despite the improved outlook, the disruption underscores just how vulnerable America’s fuel supply system has become in the wake of increased attacks on energy infrastructure by hackers over the past few years. Colonial is only the latest example of critical infrastructure being targeted by ransomware. Hackers are increasingly attempting to infiltrate essential services such as electric grids and hospitals.The attack on Colonial also came just as the nation’s energy industry is preparing for summer travel and as fuel demand rebounds from pandemic-related lockdowns. It was reminiscent of a 2018 cyberattack that brought down a third-party communications system used by several natural gas pipelines operators across the U.S.Colonial normally ships about 2.5 million barrels (105 million gallons) each day, an amount that exceeds the entire oil consumption of Germany. The pipeline’s operator warned the line may go down again from time to time during the restart process.In a separate bulletin to its shippers, it also said the company was physically starting operations before its business systems -- which process nominations for space on the pipeline and schedule them -- are back up and running. As a result, Colonial will be using schedules that were set five days ago until its systems are back in service, the notice shows.Feeling ReliefAs the pipeline resumes, the states suffering from the most acute shortages may start to feel relief this weekend.In North Carolina, some fuel supply should appear right away, said Gary Harris, executive director of the North Carolina Petroleum & Convenience Marketers, a trade association. “People will have to be running trucks a lot to just catch up because so much is out at this time,” he said.Major branded stations will get fuel first as they are under contract with suppliers, said Harris. Fuel may still be scarce for independent stations that are not under contract.Royal Dutch Shell Plc said it was pursuing alternative supply points, where possible, and working in close coordination with wholesalers to address supply and logistical challenges.In Virginia, consumers should be able to see a difference by Monday, said Michael O’Connor, president of the Virginia Petroleum & Convenience Marketers Association.This isn’t the first time Colonial has been forced to shut down. In 2016, an explosion kept the system offline for days, raising gasoline prices and forcing the New York Harbor market to become more dependent on imports of fuel from overseas.The Federal Bureau of Investigation attributed the attack on Colonial to ransomware created by a group called DarkSide. Some evidence emerged linking DarkSide to Russia or elsewhere in Eastern Europe. Biden said Russia has “some responsibility” to address the attack but stopped short of blaming the Kremlin, saying “there’s evidence” the hackers or the software they used are “in Russia.”(Updates gasoline futures price 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. Business Bloomberg 210513 08h13m Oil Extends Slide With Inflation Pressure Hitting Sentiment (Bloomberg) -- Oil fell the most intraday in over a month alongside a pullback across commodities with inflation concerns roiling broader market sentiment this week.West Texas Intermediate futures slumped as much as 3.2% on Thursday, while Brent also retreated after failing to reach the psychological $70-a-barrel mark in the prior session. Prices paid to U.S. producers rose in April by more than forecast, adding to signs of rising inflationary pressures that have gripped broader markets recently. Elsewhere, China’s Premier Li Keqiang urged the country to deal effectively with the commodity price surge and its impact, according to a state television report, echoing previous comments from officials.“Oil’s getting sucked into the inflation fear scenario,” said Bob Yawger, head of the futures division at Mizuho Securities. While those concerns typically lift crude, the sell-off is “a delayed reaction to the recent slaughter in broader markets” and is being seen across commodities on Thursday.Meanwhile, the Colonial Pipeline -- a key source of gasoline for the East Coast -- is returning to service after a cyberattack last week, adding on Thursday that each of its markets should receive product from its system by mid-day. That’ll bring relief to motorists after panic-buying emptied out some gas stations and retail prices topped $3 a gallon. In futures markets, the spread between crude and gasoline slumped toward $24 a barrel after topping as much as $27 a barrel earlier this week.Oil is among a number of commodities that have rallied hard this year as investors wager that the economic recovery from the coronavirus outbreak will spur consumption. The IEA said in its monthly report the supply glut created by the pandemic has cleared. Still, Covid-19 flare-ups in many parts of Asia, particularly India, continue to cloud the outlook for consumption.“Oil prices are nudging lower alongside waning risk sentiment resulting from fears that inflation will force the Fed’s hand,” TD Securities commodity strategists led by Bart Melek said in a note. Meanwhile, “Colonial Pipe is set to restart, easing crack spreads as alternative solutions are also implemented to fill the short-term gap.”While the Colonial Pipeline has restarted, fuel shortages are still lingering. The Biden Administration has temporarily eased a U.S. shipping requirement so a single foreign tanker could transport gasoline and jet fuel to the East Coast. A White House official said that the Jones Act waiver was applied to one tanker, but other requests are under consideration.Separately, Yemen’s Shiite Houthi rebels claimed a drone and missile attack against targets in Saudi Arabia including oil facilities, according to a statement on a rebel-run television channel. Such attacks have risen this year, though they rarely cause much damage.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. Business Yahoo Finance 210513 08h09m IBM's CEO cautions against making 'plans' for a return to work The future of work at IBM isn’t in-office or remote, but a combination of both. Howell date : 210513 08h05m09s Business Bloomberg 210513 07h45m Musk’s Bitcoin Concerns Sink Crypto-Linked Stocks (Bloomberg) -- Stocks exposed to cryptocurrencies slumped globally after Elon Musk voiced concerns over Bitcoin’s energy usage, delivering a blow to the digital money’s standing within global markets just a few months after the Tesla Inc. boss became one of its biggest supporters.Crypto shares from the U.S. to Asia slid as Bitcoin plunged as much as 15%, sinking to as low as $46,045 before trimming the decline. The drop came as Musk said he was worried over the “rapidly increasing” use of fossil fuels for Bitcoin mining and transactions, and suspended Tesla purchases with the asset, indicating he might favor other cryptocurrencies with much lower energy usage.Digital asset technology company Marathon Digital Holdings Inc. fell 7.2% when the U.S. market opened, as did peer Riot Blockchain Inc., while Microstrategy Inc., which has put billions of dollars of its assets into Bitcoin, tumbled as much as 5.7% Thursday. Coinbase Global Inc., the operator of the largest U.S. cryptocurrency exchange, erased a 3% drop to turn positive ahead of an earnings report due Thursday evening.A “shocker from Musk,” Wedbush Securities analyst Daniel Ives wrote in a note to clients. “The nature of Bitcoin mining has not changed in the last three months, which speaks to why backtracking on the crypto transaction three months later is a very surprising and confusing move to both Tesla and crypto investors.”Tesla announced in February that it had invested $1.5 billion in Bitcoin and signaled an intent to begin accepting the cryptocurrency as a form of payment.In Asia, Monex Group Inc., whose ownership of crypto exchange Coincheck Inc. had made it the second-best performing stock in Japan in 2021, dropped 11%. Nexon Co., which just last month became the first Japanese firm to make a significant bet with a $100 million purchase of the cryptocurrency, slumped 14%, the most since August 2019, though a poor growth outlook given at its earnings also weighed on sentiment.In Europe, crypto-miner Argo Blockchain Plc slid as much as 16%, blockchain technology firm On-Line Blockchain Plc lost 15% and crypto infrastructure group Northern Data AG dropped as much as 17% before trimming losses.Tesla SlipsTesla’s own shares rebounded to rise as much as 2.8% in early trading after having already slumped about 30% since the company announced the Bitcoin investment in February. After last year’s huge rally, the stock has suffered from lofty trader expectations despite posting a record quarterly profit last month. It’s also been among the stocks hit by this week’s selling in tech equities, with concerns around rising inflation fueling fears of higher interest rates.“Not accepting Bitcoin does not change the thesis or growth trajectory for the electric vehicle story, however it does add to the noise and volatility around the name at a time in which risk assets are under enormous selling pressure,” added Wedbush’s Ives.Musk said in his post that Tesla wouldn’t be selling any Bitcoin and aimed to use it for transactions once mining shifted to a more sustainable energy. “We believe it has a promising future,” he wrote, “but this cannot come at great cost to the environment.”That puts Musk at odds with ARK Investment Management LLC’s Cathie Wood, who last month shared research that she said would “debunk the myth that Bitcoin mining” is bad for the environment. Wood’s Ark Innovation ETF, which has been having a miserable month and has Coinbase as its ninth-largest holding, rose 2.2% after closing at the lowest level since November on Wednesday.Bitcoin was down 7.8% to $50,220 at 9:34 a.m. in New York.(Updates with latest share prices.)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. Business Bloomberg 210513 07h37m U.S. Producer Prices Top Forecasts, Adding to Inflation Pressure (Bloomberg) -- Prices paid to U.S. producers rose in April by more than forecast, adding to signs of a growing wave of inflationary pressure that’s extending to American consumers.The producer price index for final demand increased 0.6% from the prior month after a 1% gain in March, according to data from the Labor Department Thursday. Excluding volatile food and energy components, the so-called core PPI advanced 0.7%.A Bloomberg survey of economists called for a 0.3% monthly gain in the overall measure and a 0.4% rise in the core figure. The April advance was broad across both goods and services. The S&P 500 rose in early trading, while the yield on the 10-year Treasury note eased.As production costs continue to climb, a report Wednesday showed consumer prices are following suit, stoking the flames of an already heated debate about the path and durability of inflation that the Federal Reserve views as temporary.The PPI tracks changes in production costs, and supply bottlenecks and shortages tied to the pandemic recovery have caused commodity prices to soar. At the same time, labor costs have begun picking up. Together, the increases represent a threat to profit margins unless companies pass along the higher costs and boost productivity.Fed officials have said price pressures from pent-up demand and bottlenecks will likely prove temporary, but many others expect the pickup in inflation to prove more lasting.“There is more inflation coming,” Luca Zaramella, chief financial officer at Mondelez International Inc., said on the food and beverage maker’s April 27 earnings call. “The higher inflation will require some additional pricing and some additional productivities to offset the impact.”Consumer InflationWednesday’s data -- which showed the strongest monthly gain in the overall consumer price index since 2009 -- suggest companies are passing along at least some of the input-price inflation. The report also showed record monthly price surges in airfares and hotel stays, reflecting the impact from a broader reopening of the economy.The annual advance in the overall PPI accelerated to a 6.2% gain, a figure biased higher by the fact that it was compared to the very low reading seen in April 2020. The increase was the largest in data back to 2010.A separate Labor Department report Thursday showed applications for regular state unemployment benefits declined for a second week, to a fresh pandemic low. A slew of states have recently announced intentions to stop federal pandemic relief programs prior to their expiry in September.Producer prices excluding food, energy, and trade services -- a measure often preferred by economists because it strips out the most volatile components -- jumped 0.7% from the prior month and increased 4.6% from a year earlier.While the advance was broad-based across goods and services, about two-thirds of the monthly gain can be attributed to the 0.6% gain in prices for final demand services, the Labor Department said. The indexes for portfolio management, airline passenger services, food retailing, physician care and building materials and supply retailing all moved higher.The advance in the goods index reflected an 18.4% jump in prices received for steel mill products as well as increases in the prices for a variety of meat, residential natural gas, plastic resins and materials, and dairy products.Michael Hsu, chief executive officer at consumer-product maker Kimberly-Clark Corp., said in April that the maker of Scott toilet paper and Huggies diapers is “moving rapidly especially with selling price increases to offset commodity headwinds.”(Adds markets 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. Business Bloomberg 210513 07h36m Tech Leads Stocks Higher; Crude Oil Declines: Markets Wrap (Bloomberg) -- U.S. stocks snapped a three-day slide, with the technology sector leading the rebound. Bond yields, the dollar and crude oil all declined, reversing Wednesday’s increases. The benchmark S&P 500 rose after posting its biggest one-day drop since February on Wednesday. The tech-heavy Nasdaq 100 also pushed higher, led by Apple and Advance Micro Devices. A report earlier showed producer prices increased by more than forecast in April, and jobless claims fell. Bitcoin dropped to around $50,000 as Tesla suspended purchases using the cryptocurrency.“Taking a step back from inflation, the fact that jobless claims hit another pandemic-era low suggests we’re inching even closer to full reopening, which is no doubt a good thing,” said Mike Loewengart, managing director of investment strategy at E*Trade Financial.U.S. Producer Prices Top Forecasts, Adding to Inflation PressureConfidence that reigned supreme until two weeks ago on the U.S. economy and continued Federal Reserve stimulus has been jolted in the past week with non-farm payrolls falling far short of expectations and inflation rising by the most since 2009. While some investors insist the surge in consumer prices is a one-off reopening burst, the broader markets are hedging against the possibility it may persist and force the Fed to consider tapering its stimulus.“Markets have lost a little bit of confidence that the Fed has control of inflation” and the concern was that the central bank might wait too long to address the rise, Victoria Fernandez, Crossmark Global Investments chief market strategist, said on Bloomberg TV. “I am not sure the market is extremely comfortable with that at this point.”Tesla gained even after Elon Musk tweeted that Tesla will no longer accept the digital currency for vehicle purchases due to environmental concerns.Alibaba dropped after reporting fourth-quarter results. While revenue beat estimates, the company posted a net loss after an antitrust fine.In Europe, earnings disappointments sent the benchmark gauge lower. BT Group Plc dropped 6% as it missed estimates. Burberry Group Plc declined 6.8% as guidance disappointed.Treasury markets were calmer, with the 10-year rate holding near 1.69%.Have your say on MLIV’s Question of the Day. Which Assets Hurt If CPI Isn’t Transitory?These are some of the main moves in markets: StocksThe S&P 500 rose 0.6%, more than any closing gain since May 7 as of 9:31 a.m. New York timeThe Nasdaq 100 rose 1.3%, more than any closing gain since April 23The Dow Jones Industrial Average rose 0.3%, more than any closing gain since May 7The Stoxx Europe 600 fell 0.5% to the lowest since May 4The MSCI World index fell 0%, falling for the fourth straight day, the longest losing streak since Sept. 21CurrenciesThe Bloomberg Dollar Spot Index was little changedThe euro rose 0.1% to $1.2087The British pound fell 0.1% to $1.4034The Japanese yen was little changed at 109.59 per dollarBondsThe yield on 10-year Treasuries declined one basis point, more than any closing loss since May 5Germany’s 10-year yield advanced zero basis points to the highest in more than 23 monthsBritain’s 10-year yield advanced one basis point, climbing for the fourth straight day, the longest winning streak since April 29CommoditiesWest Texas Intermediate crude fell 2.8%, the most since April 30Gold futures fell 0.2% to $1,819 an ounceFor 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. Business Bloomberg 210513 07h34m Alibaba Vows to Hike Spending After Posting First Loss in Years (Bloomberg) -- Alibaba Group Holding Ltd. forecast better-than-expected revenue and pledged to invest in new growth arenas, signaling its intention to move past a Chinese antitrust probe that triggered its first loss in nine years.Jack Ma’s flagship e-commerce firm swung to a 5.5 billion yuan ($852 million) net loss -- its first since 2012 -- after the company swallowed a $2.8 billion fine for monopolistic behavior imposed by Beijing. It now intends to refocus on its business, plowing “all incremental profit” back into technology and hotly contested areas like community commerce, Chief Executive Officer Daniel Zhang pledged on Thursday.Alibaba executives have sought to put behind them a crackdown on Ma’s internet empire that’s shaved $260 billion off the Chinese internet behemoth’s market value. The penalty imposed in April marked the conclusion of a four-month probe, but uncertainty persists as Beijing continues to rein in Alibaba and increasingly powerful rivals from Tencent Holdings Ltd. to Meituan. No analyst asked directly about what’s to come in the broader clampdown Thursday, though Zhang stressed the company accepted the fine and will move forward.“We accept the penalty with sincerity and will ensure our compliance with determination,” the CEO said. “During the past fiscal year, we have gone through all kinds of challenges, including the Covid-19 pandemic, fierce competition as well as an anti-monopoly investigation and penalty decision by Chinese regulators. We believe the best way to overcome these challenges is to look forward and invest for the long term.”Alibaba’s shares slid 3% in U.S. pre-market trading. The stock is down 31% from its October peak, just before Ma’s now-infamous rant against outmoded regulations triggered a chain of events that torpedoed a $35 billion initial public offering by his Ant Group Co. and started a probe into the e-commerce giant.“There is still significant uncertainty in Alibaba,” said Andy Halliwell, an analyst at analyst at consultancy Publicis Sapient. “There is no doubt though that Alibaba have capitalized on their digital and tech strategy in light of the global pandemic, and the rebounding Chinese economy. But it remains to be seen how Jack Ma’s behavior last year will have a lasting impact on brand and investor confidence.”Click here for a live blog of the earnings call.Alibaba is keen to convey the impression that it’s back to business as normal. Ma was spotted this week at an annual staff and family celebration at its sprawling Hangzhou campus, where kids played in ball pits while company mascots posed for photos with employees in cosplay.On Thursday, the company forecast revenue for the year ending March 2022 will rise at least 30% to more than 930 billion yuan, beating the 923.5 billion average projection. That’s a deceleration from the previous year’s 41%, and comes after sales for the three moths ended March came in at a better-than-expected 187.4 billion yuan.Despite the rosy projection, it’s unclear how much the increased investment, which also encompasses areas from local internet services and merchant solutions, may hurt margins. And reliable growth engines are slowing: cloud revenue grew just 37% in the March quarter after a major, unidentified customer pulled out, the slowest pace since 2014.Zhang singled out community commerce -- an area now fought over between a number of deep-pocketed rivals like JD.com Inc. and Pinduoduo Inc. -- as a key avenue to reach lower-tier and rural customers. Executives said Alibaba will be disciplined in spending, without elaborating.“Despite heady predictions, it’s likely that we’ll see an erosion of margins in part due to the investment the business is making in new business ventures,” Halliwell said.What Bloomberg Intelligence Says:Alibaba’s regulatory overhang may lift with China’s $2.8 billion fine in April potentially marking an end to the worst of the scrutiny that began in late 2020. Meanwhile it could continue to benefit from the accelerated user and merchant adoption of its online grocery shopping, cloud computing and remote-work applications in the aftermath of the pandemic. Longer-term sales and profit growth could be driven by global expansion and the monetization of newer business segments such as logistics, media and entertainment.-- Vey-Sern Ling and Tiffany Tam, analystsClick here for the research.There remain several other questions Alibaba may have to grapple with in the year ahead. The company joined 33 other tech firms in pledging to abide by monopoly laws and eradicate abuses like forced exclusivity agreements -- actions with as-yet unknown ramifications for growth. More broadly, the Chinese government is debating how to exert greater control over the invaluable online data amassed by its internet giants that have enabled their meteoric expansion over the past decade.The government is said to be considering whether to compel Alibaba to shed media assets that have supported its brand. Antitrust watchdogs are screening its previous investments and could force a divestment if deemed in violation of regulations.Then there’s Alibaba’s finance affiliate -- Ant, a major provider of financing for Alibaba’s consumers -- which is still wrangling with regulators over a forced restructuring that could curb its lending. Its profit in the December quarter rose 50% to 21.8 billion yuan, though the bottom line will remain under pressure because of a requirement to cut back on loans.Alibaba is trying to resume business as normal just as competition ramps up in China’s e-commerce market.Pinduoduo reported 788 million annual active buyers in the December quarter, dethroning Alibaba as China’s biggest e-commerce operator by consumers for the first time ever. On Thursday, Alibaba reported its users had climbed to 811 million in China in the three months ended March.Scrappy upstarts like ByteDance Ltd. and Kuaishou Technology are making inroads into social shopping, chipping away at the growth of its Taobao Live service. Other platforms like Meituan, Didi and Tencent Holdings Ltd.-backed MissFresh have made aggressive investments into their community groceries business, leaving the Hangzhou-based Alibaba to play catch-up in the red-hot sector.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. Business Yahoo Finance 210513 07h33m Stock market news live updates: Stocks look to rise for the first time in four days after inflation fears ignite sell-off Inflation fears are dogging Wall Street at a time when the U.S. rebound is picking up speed. Howell date : 210513 04h10m45s Business Reuters 210513 04h00m INSIGHT-New generation of digital banks bets on minority markets After a doctor's visit, three court appearances, five trips to the bank and having her name and address published in a newspaper, Billie Simmons finally got a debit card with her chosen name. The legal process to change her name and her gender on identity documents took several weeks. She hasn't been able to change her online banking username and her credit score is incomplete, only reflecting transactions made after she legally changed her name. Business Reuters 210513 04h00m Canada's Cargojet tells pilots it may shift some work to U.S. Canada's Cargojet Inc has threatened to move work to the United States unless it wins exemption from rules aimed at preventing pilot fatigue because of their cost, according to a deal rejected by its pilots seen by Reuters. Cargojet has said it wants to reduce costs and grow in the United States as Canada's largest cargo carrier benefits from an increase in air freight demand due to a decline in "belly capacity” from passenger aircraft grounded during the pandemic. The Ontario-based company, which reported 30% higher quarterly revenues this month, has hired more than 60 pilots in the past three to four months to meet stronger demand and comply with Canadian rules that went into effect in December. Business Reuters 210513 03h57m Lufthansa suspends flights to Tel Aviv through Friday German airline Lufthansa on Thursday said it was suspending all flights to Tel Aviv through Friday, May 14, due to an escalating conflict in Israel. "Lufthansa is closely monitoring the current situation in Israel and continues to maintain a close exchange with the authorities, security service providers and our own staff on the ground," the company said in a statement. Lufthansa said it expected flights to Israel to resume on Saturday, May 15. World Reuters 210513 03h52m UPDATE 1-UK adviser says he will publish any advice to PM Johnson on flat refurbishment Britain's independent adviser on ministers' behaviour said on Thursday he would publish any advice he gives to Prime Minister Boris Johnson about the refurbishment of his Downing Street apartment and declarations of his own interests. Britain's Electoral Commission has launched an investigation into the funding of work on the prime minister's apartment in Downing Street, saying there were grounds to suspect an offence had been committed. Johnson says he has followed the rules and covered the costs of the refurbishment. Business Bloomberg 210513 03h28m Alphawave’s London Debut Falls Victim to Global Tech Selloff (Bloomberg) -- Alphawave IP Group Plc sank as much as 22% on its first day of trading in London as the global tech selloff hammered shares of the semiconductor company.Alphawave, a Canadian company which works on increasing semiconductor power efficiency and speed, priced its shares too expensively given the current environment, investors said. The company raised 856 million pounds ($1.2 billion) in the initial public offering, implying a valuation of 3.1 billion pounds for the whole firm.“I didn’t think it would fall that sharply, but it has launched into a market where tech stocks are under pressure,” said Gavin Launder, a fund manager at Legal & General Investment Management who decided against participating in the IPO on valuation grounds.Alphawave shares traded at 330 pence as of 10:04 a.m. in London, down from the IPO price of 410 pence a share. Representatives for the company didn’t immediately respond to a request for comment.Growing apprehension about extreme valuations and the risk that inflation will erode future profits has sparked a worldwide rout across the technology industry this week. Pricing issues have been at the forefront of London’s recent tech IPOs. Cybersecurity company Darktrace Plc surged last month after cutting its valuation by about half before going public. Deliveroo Plc plunged more than 30% in its debut as investors criticized the stock’s price, as well as corporate governance and labor practices.Read More: Deliveroo CEO Pins Weak IPO on Volatility, Archegos FalloutAlphawave’s slump is the latest disappointment for the U.K., which has lobbied to encourage more tech companies to go public. The company had said it preferred London because of its record of listing large semiconductor companies, such as Arm Group and Imagination Technologies Group Plc.“With IPOs, timing is everything and Alphawave launches onto the market on a tide of demand for semiconductors, with shortages of chips disrupting production of cars and electronic goods across the world,” Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown Plc, wrote in a note.Alphawave raised 360 million pounds from the IPO and existing shareholders accounted for the rest, according to a statement. If there’s sufficient demand, underwriters may place as many as 31.3 million additional shares.Barclays Plc and JPMorgan Chase & Co. are joint global coordinators, while BMO Capital Markets is joint bookrunner.(Updates prices throughout.)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. Business Reuters 210513 03h28m UK job ads climb, consumers spend more as COVID restrictions ease LONDON (Reuters) -Online job adverts are on the rise in Britain, pushed up by the reopening of pubs and restaurants and other hospitality firms, and consumers are spending more money on dining out and on travel plans, data published on Thursday showed. Online job adverts hit 107% of their pre-pandemic February 2020 level on May 7, up by four percentage points from two weeks earlier, figures from jobs website Adzuna showed. There was also strong demand for workers in transport, logistics and warehousing which rose by 18 percentage points over the two weeks to May 7 to 235% of its February 2020 level, adding to a rise since the start of the year. World Reuters 210513 03h15m UK adviser says he will publish any advice to PM Johnson on flat refurbishment Britain's independent adviser on ministers' behaviour said on Thursday he would publish any advice he gave to Boris Johnson about the British prime minister's own declarations of interests, including over the refurbishment of his apartment. Christopher Geidt said he had two immediate tasks since being appointed last month, including looking at the financing of the refurbishment of Johnson's Downing Street apartment, which has become the focus of a formal investigation led by the Electoral Commission. He would "consider all the facts relating to the refurbishment of the prime minister's flat and indeed to advise him on his own declaration of interests," Geidt told lawmakers. Business Bloomberg 210513 03h11m Musk’s Bitcoin Concerns Sink Crypto-Linked Stocks (Bloomberg) -- Stocks linked to cryptocurrencies fell in line with a slump in Bitcoin, after Tesla Inc. Chief Executive Officer Elon Musk expressed concerns over its energy usage.Bitcoin plunged as much as 15%, sinking to as low as $46,045, before trimming the decline, after Musk said he was worried over the “rapidly increasing use of fossil fuels for Bitcoin mining and transactions,” and suspended Tesla purchases with the asset, indicating he might favor other cryptocurrencies with much lower energy usage.Coinbase Global Inc., the operator of the largest U.S. cryptocurrency exchange, fell 5.6% in U.S. premarket trading on low volume ahead of an earnings report due Thursday. Digital asset technology company Marathon Digital Holdings, Inc. fell 13%, as did peer Riot Blockchain Inc. Microstrategy Inc., which has put billions of dollars of its assets into Bitcoin, plunged 9.2% after market Wednesday, while Jack Dorsey’s Square Inc. also slipped.In Asia, Monex Group Inc., whose ownership of crypto exchange Coincheck Inc. had made it the second-best performing stock in Japan in 2021, dropped 11%. Nexon Co., which just last month became the first Japanese firm to make a significant bet with a $100 million purchase of the cryptocurrency, slumped 14%, the most since August 2019, though a poor growth outlook given at its earnings also weighed on sentiment.In Europe, crypto-miner Argo Blockchain Plc slid 10%, blockchain technology firm On-Line Blockchain Plc lost 9.8% and crypto infrastructure group Northern Data AG dropped 15%.Tesla DropsTesla’s own shares fell 1.8% in premarket trading, having already slumped about 30% since the company announced in February that it had invested $1.5 billion in Bitcoin and signaled an intent to begin accepting the cryptocurrency as a form of payment. After last year’s huge rally, the stock has suffered from lofty trader expectations despite posting a record quarterly profit last month.Musk said in his post that Tesla wouldn’t be selling any Bitcoin and aimed to use it for transactions once mining shifted to a more sustainable energy. “We believe it has a promising future,” he wrote, “but this cannot come at great cost to the environment.”That puts Musk at odds with ARK Investment Management LLC’s Cathie Wood, who last month shared research that she said would “debunk the myth that Bitcoin mining” is bad for the environment. Wood’s Ark Innovation ETF, which has been having a miserable month and has Coinbase as its ninth-largest holding, fell 1.3% premarket.Musk’s move is a step in the wrong direction for Bitcoin bulls as well as for stock investors betting on the digital currency. Tesla’s disclosure in February added legitimacy to the cryptocurrency. It was the most visible catalyst during this year’s rally in the digital currency. Bitcoin was down 7.6% to $50,356 at 10:09 a.m. U.K. time.(Updates with latest share prices, context on Tesla.)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. World Business Business Business Business Business Howell date : 210513 02h10m08s Business Bloomberg 210513 01h52m Rakuten’s Mobile Unit Lost $887 Million in First Quarter (Bloomberg) -- Rakuten Group Inc., the Japanese e-commerce giant that launched a mobile service last year, reported a wider first-quarter loss in the business after it invested in expanding its network and offered a free year of service to attract users from incumbents.The division’s loss increased to a record 97.2 billion yen ($887 million) on 68.6 billion yen of sales in the three months ended March 31, Rakuten said in a statement on Thursday. The company’s total operating loss was 37.3 billion yen in the period.The company launched its network a year ago to take on incumbents KDDI Corp., SoftBank Corp. and NTT Docomo Inc. with cheaper and more flexible service offerings. Rakuten operates a single monthly plan that simplifies what is usually an arcane structure of mobile fees and charges in the country. Last month, it announced plans to add 5G-compatible iPhone 12s and the iPhone SE to its lineup to garner users and market share from Japan’s big three carriers.“Rakuten’s competitive push is going to be strong this year and investors are looking for more magnitude of their investments in the mobile business,” Kirk Boodry, an analyst at Redex Research in Tokyo, said ahead of the announcement. “It’s still some ways ahead, but there is the question of how many subscribers will churn off once the free offering ends.”Profitability in the business will begin to improve from this quarter with the expiry of the free offering, said Yoshihisa Yamada, who heads the mobile operations at Rakuten. Losses will begin to narrow next year as greater coverage of its own network will reduce its roaming fees, Yamada said.Rakuten’s 4G network now covers 80% of the country’s population and it plans to expand its reach to 96% this summer. The company, which doesn’t disclose exact subscriber numbers, said applications for its mobile service climbed to 4.1 million as of May.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. World Bloomberg 210513 01h37m China Denies Report Top Economic Envoy to U.S. Might Be Replaced (Bloomberg) -- China isn’t considering replacing Vice Premier Liu He as the top economic envoy to the U.S., the Ministry of Commerce said Thursday, denying a media report that the change was under consideration in Beijing.Liu was the chief negotiator for the “phase one” trade deal signed with the U.S. last January and is a close friend of President Xi Jinping. The Wall Street Journal reported Wednesday that the Chinese government was considering replacing him with Vice Premier Hu Chunhua, citing unidentified officials.China Considers Replacing Economic Envoy to U.S., WSJ SaysFor 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. World Reuters 210513 01h33m Taiwan starts rotational electricity blackout after power plant outage Taiwan started a rotational electricity blackout across the island on Thursday after an unknown outage at a power plant in the south of the island, the government said. Taiwan's government said in a text alert it did not have enough electricity capacity in its grid after an outage at a power plant in the southern port city of Kaohsiung. Several cities across the island have reported blackouts, the official Central News Agency reported. Business Reuters 210513 01h30m Citi sets sights on 1000 wealth hirings in Hong Kong Citigroup has set a target to hire 1,000 wealth professionals in Hong Kong in the next five years, as it seeks to grow its Asian client assets under management by $150 billion following a record year, a statement from the U.S bank said. The recruitment campaign has already started, with 75 private bankers and relationship managers hired so far in 2021 to build on the $310 billion Asian assets under management to date. The headcount target will include 550 new private bankers and relationship managers by 2025, the statement said. Business Bloomberg 210513 01h22m Alphawave Slumps in Debut After $1.2 Billion London Chip IPO (Bloomberg) -- Alphawave IP Group Plc sank as much as 15% after a 856 million-pound ($1.2 billion) initial public offering on the London Stock Exchange, as the semiconductor firm makes its debut amid an investor rotation out of pricier growth stocks on inflation concerns.Shares were trading at 350 pence as of 8:18 a.m. in London, down from the IPO price of 410 pence a share, which was in the upper half of an initial range. Based on the offer price, the company has a market value of 3.1 billion pounds.The Canadian company, which provides high-speed connectivity solutions for semiconductors, raised 360 million pounds, while existing shareholders accounted for the rest, according to a statement Thursday. If there’s sufficient demand, underwriters may place as many as 31.3 million additional shares.The listing comes as the U.S. Nasdaq 100 benchmark is set for its worst weekly drop since October, with investors exiting tech stocks on concerns that inflation and possible higher interest rates will eat into future profits. Still, this is a also a key time for the global semiconductor industry, which is facing major chip shortages.“With IPOs, timing is everything and Alphawave launches onto the market on a tide of demand for semiconductors, with shortages of chips disrupting production of cars and electronic goods across the world,” Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown Plc, wrote in a note.Founded in Toronto in 2017, Alphawave makes technology to improve semiconductor power efficiency and speed, with its technology used to push data over networks. London once had a strong set of listed chip firms, but a number of them have left the market. ARM Group, previously the U.K.’s flagship publicly traded semiconductor company, delisted in 2016 after a takeover by SoftBank Group Corp., while Imagination Technologies Group Plc was also acquired by a foreign investor.Barclays Plc and JPMorgan Chase & Co. are joint global coordinators, while BMO Capital Markets is joint bookrunner.(Updates to add share-price move in headline, first and second 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. World Bloomberg 210513 01h22m Korea Unveils $450 Billion Push for Global Chipmaking Crown (Bloomberg) -- South Korea unveiled ambitious plans to spend roughly $450 billion to build the world’s biggest chipmaking base over the next decade, joining China and the U.S. in a global race to dominate the key technology.Samsung Electronics Co. and SK Hynix Inc. will lead more than 510 trillion won of investment in semiconductor research and production in the years to 2030 under a national blueprint devised by President Moon Jae-in’s administration. They’ll be among 153 companies fueling the decade-long push, intended to safeguard the nation’s most economically crucial industry. Moon got a briefing from chip executives on the initiative Thursday during a visit to the country’s most advanced chip factory, a Samsung plant south of Seoul.Samsung is boosting its spending by 30% to $151 billion through 2030 while Hynix is committing $97 billion to expansion at existing facilities in addition to its $106 billion plan for four new plants in Yongin, co-Chief Executive Officer Park Jung-ho said during the event.“Major global competitors are pressing ahead with massive investment to be the first to take the future market,” Moon said in a speech. “Our companies have been taking risks and innovating as well and have completed preparations for tumultuous times.”The effort comes at a time when the U.S., China and the European Union seek to shore up their semiconductor capabilities after a global chip shortage exposed a reliance on just a handful of Asian manufacturers and hobbled efforts to repair pandemic-scarred economies. The shortages are now spreading from autos to smartphones and displays, elevating semiconductors onto the agendas of governments from Washington to Brussels and Beijing.At stake is a technology fundamental to groundbreaking advances from artificial intelligence to autonomous vehicles and connected homes. South Korea, a security ally of the U.S. and a major exporter to China, has been walking a tightrope between the two while bolstering its own production prowess. Semiconductors account for the largest share of South Korea’s exports and chip exports are expected to double to $200 billion by 2030, the Ministry of Trade, Industry and Energy said.Read more: Biden Finds a Key Ally Wary of His Bid to Outpace China on ChipsLikening semiconductors to rice -- a global dietary staple -- the ministry called them “strategic weapons” in a race for superior technology intensifying among not just firms but also nations.The government seeks to build a “K-semiconductor belt” that stretches dozens of kilometers south of Seoul and brings together chip designers, manufacturers and suppliers, according to the ministry.Samsung and Hynix make the majority of the world’s memory chips, basic semiconductors that handle storage for all devices. But one area South Korea has been lagging in is the ability to produce advanced logic chips that handle complex calculations for tasks like AI and data processing, a specialty dominated by Taiwan Semiconductor Manufacturing Co., which makes Apple Inc.’s iPhone processors. Samsung aims to compete more aggressively in this area, securing some of Nvidia Corp.’s graphics card business and pursuing a bigger share of Qualcomm Inc.’s mobile chips. Hynix too has announced ambitions to get into logic chips.Read more: Data Centers Doubling Is Next Driver of Chip Demand, Hynix SaysThe Korean government will incentivize its domestic industry with tax breaks, lower interest rates, eased regulations and reinforced infrastructure, hoping to see its chipmakers make up the distance from the global leaders, the ministry said. The government will also secure adequate water supply for the next 10 years in the targeted region and reinforce power supplies, both essential to advanced chipmaking factories.Korea’s blueprint echoes efforts underway around the world. President Joe Biden wants to dedicate $50 billion to U.S. semiconductor research and production, part of an overall ambition to safeguard America’s supply chains. And China has earmarked hundreds of billions of dollars toward developing its own chipmaking industry, wary of a reliance on Western-designed imports.South Korea also aims to attract additional foreign investment in advanced technology. Dutch semiconductor equipment maker ASML Holdings NV signaled it intends to spend 240 billion won to build a training center in Hwaseong while California-based Lam Research Corp. plans to double its capacity in the country, the ministry said.”South Korea is essentially beckoning global suppliers to come and work with its homegrown chipmakers so it can build an ecosystem on its soil rather than see them relocate to the U.S. and elsewhere,” said Kim Yang-paeng, semiconductor analyst at the Korea Institute for Industrial Economics and Trade. “Broadening its investment to foundries and logic chips also guarantees that it has something to fall back on should anything go wrong with the memory chip industry that it’s dominant in.”In terms of direct contributions, the country wants to help train 36,000 chip experts between 2022 and 2031, contribute 1.5 trillion won toward chip research and development and will start discussing legislation tailored to assist the semiconductor industry.(Updates with quotes from president and analyst from 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. Howell date : 210512 20h07m46s Business Bloomberg 210512 19h56m Musk Sends Bitcoin Tumbling With Shock U-Turn on Payments (Bloomberg) -- Tesla Inc.’s Chief Executive Officer Elon Musk said the electric-vehicle manufacturer is suspending purchases with Bitcoin, triggering a slide in the digital currency.In a post on Twitter Wednesday, Musk cited concerns about “rapidly increasing use of fossil fuels for Bitcoin mining and transactions,” while signaling that Tesla might accept other cryptocurrencies if they are much less energy intensive. He also said the company won’t be selling any of the Bitcoin it holds.The largest cryptocurrency dropped as much as 15% in Asian trading, sliding below $50,000, before paring some of the drop. It was down about 8% to $50,190 as of 10:53 a.m. in Tokyo. The were reports of outages at digital-token exchanges as people rushed to sell.Musk’s move comes after Tesla disclosed in February that it had purchased $1.5 billion in Bitcoin and planned to accept it as a payment. That announcement added legitimacy to the cryptocurrency as an increasingly acceptable form of payment and an investment, especially coming from a large member of the S&P 500 with a high-profile CEO who commands a big following among retail investors and the general public.Tesla’s website, which had a support page dedicated to Bitcoin, noted that Bitcoin was the only cryptocurrency that Tesla accepts in the continental U.S. Musk has also tweeted frequently about Dogecoin, a cryptocurrency started as a joke in 2013 -- and he quipped about being the “Dogefather” before and during his stint hosting the “Saturday Night Live” show on May 8. He tweeted on Tuesday, “Do you want Tesla to accept Doge?”Tesla’s addition of Bitcoin to its balance sheet was the most visible catalyst during this year’s rally in the digital currency. Bitcoin jumped 16% that day, the biggest one-day gain since the Covid-19 inspired financial markets volatility in March 2020.Optimism grew after Mastercard Inc., Bank of New York Mellon Corp. and other firms moved to make it easier for customers to use cryptocurrencies, fueling the mainstream resurgence that took Bitcoin from about $29,000 at the end of last year to as high as almost $65,000 in April.Bitcoin mining is consuming 66 times more electricity than it did back in late 2015, and the carbon emissions associated with it will likely face increasing scrutiny, according to a recent Citigroup Inc. report.Musk is no stranger to considering the issue of crypto’s environmental impact.Cathie Wood’s Ark Investment Management LLC published a report last month saying cryptocurrency mining can drive investment in solar power and make more renewable energy available to the grid. Twitter Inc.’s Jack Dorsey retweeted a post on the white paper with the comment that Bitcoin “incentivizes renewable energy.” Musk replied to Dorsey’s tweet, saying simply, “True.”Musk’s tweet on Wednesday took many in the cryptocurrency community by surprise, including Nic Carter, a partner at Castle Investment Management, and a leading voice among defenders of Bitcoin’s energy use.“Surely he would have done his diligence prior to accepting Bitcoin?’ Carter said. “Very odd and confusing to see this quick reversal.”It’s unclear what prompted the decision and Musk and Zachary Kirkhorn, Tesla’s chief financial officer, did not immediately respond to an email inquiry for comment.(Updates markets in the 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. Business Bloomberg 210512 19h54m Asia Stocks Drop as Inflation Worries Mount: Markets Wrap (Bloomberg) -- Asian stocks extended a selloff Thursday after a rise in U.S. inflation sent the S&P 500 tumbling and drove bond yields higher on concerns that price pressures could stifle the economic recovery.A regional equities gauge erased this year’s gain, though declines from Japan to Australia haven’t yet matched the magnitude of the pull back in indexes overnight. The S&P 500 and Nasdaq 100 both shed more than 2% in a third-straight day of losses, though the energy sector climbed as commodity prices continued their advance. And U.S. futures edged higher in early Asia trade.Treasury yields steadied from a climb in U.S. hours, which shrugged off strong demand at the auction of new 10-year notes. Asia investment-grade bonds weakened, while the dollar held an advance.Oil retreated back below $66 a barrel. The biggest U.S. gasoline pipeline is reopening after a cyberattack that sparked acute fuel shortages. Copper’s advance stalled after the inflation numbers.The latest U.S. consumer prices data showed the biggest monthly rise since 2009, adding fuel to the debate over whether inflation will be persistent enough to force the Federal Reserve to tighten policy sooner than thought. The surprise reading included broad-based price pressures, and a market gauge of inflation expectations over the next five years touched its highest level since 2005 before easing.Fed Vice Chair Richard Clarida said he was surprised by the jump, but that it should prove largely transitory.“Markets have lost a little bit of confidence that the Fed has control of inflation; I don’t think it’s necessarily the level,” but the concern that the central bank might wait too long to address the rise, Victoria Fernandez, Crossmark Global Investments chief market strategist, said on Bloomberg TV. “I am not sure the market is extremely comfortable with that at this point.”Elsewhere, Bitcoin extended a drop after Elon Musk tweeted that Tesla Inc. has suspended vehicle purchases using the digital currency over environmental concerns. He added that Tesla will not be selling any Bitcoin.These are some of the main moves in markets:StocksS&P 500 futures rose 0.3% as of 10:30 a.m. in Tokyo. The S&P 500 fell 2.1%Nasdaq 100 contracts added 0.4%. The Nasdaq 100 slid 2.6%Japan’s Topix index fell 0.8%Australia’s S&P/ASX 200 Index lost 0.5%South Korea’s Kospi index declined 0.3%Hong Kong’s Hang Seng Index fell 1.1%Shanghai Composite Index fell 0.7%CurrenciesThe yen traded at 109.56 per dollar after slipping 1%The offshore yuan was at 6.4537 per dollarThe Bloomberg Dollar Spot Index dipped after rising 0.7%The euro was at $1.2083BondsThe yield on 10-year Treasuries dipped to 1.68% after jumping seven basis pointsAustralia’s 10-year bond yield rose three basis points to 1.80%CommoditiesWest Texas Intermediate crude fell 0.7% to $65.63 a barrelGold rose 0.4% to $1,821.91 an ounceFor 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. Business Bloomberg 210512 19h29m Chocolate’s About to Get More Expensive (Bloomberg) -- The meteoric rise in palm oil prices is poised to inflate costs for everyone from restaurants to confectionery and cosmetic manufacturers, and could potentially change consumption patterns.The world’s most consumed edible oil has surged more than 120% in the past year and burst through 4,500 ringgit ($1,091) a ton to a record on Wednesday. The tropical oil, which is found in products as diverse as chocolate, pastries, soaps, lipstick and biofuel, and is widely used in Asian restaurants, has been swept up in the global commodity rally as farm crops soar on weather worries and China’s crop-buying spree.Palm oil, which is mainly produced in Indonesia and Malaysia, is so popular that one study estimates about half of all packaged products found in supermarkets contain it. While there are alternatives -- like soybean oil and sunflower oil -- prices for those have been rising too, increasing concern over global food inflation, which is already at the highest in seven years.“We’re in uncharted waters at these levels,” said Marcello Cultrera, an institutional sales manager and broker at Phillip Futures in Kuala Lumpur. “The high prices will mainly affect costs of fast-moving consumer goods’ manufacturers in the short term.”The biggest importer is India, followed by China. While the oil faces headwinds in Europe and the U.S. over concerns its cultivation causes deforestation, the rally in edible oil prices could add to costs at companies such as Unilever, which purchases about 1 million tons of palm oil, palm kernel oil and derivatives annually for use in products such as ice cream, cosmetics and soaps, making it one of the world’s largest buyers.Consumption in India is especially at risk because of a drop in demand outside the home and the impact of the world’s worst Covid-19 outbreak, according to Atul Chaturvedi, president of Solvent Extractors’ Association. The country is a very price-sensitive market and high prices are hurting demand, he said.Companies wanting to shift out of palm to other oils may find opportunities limited due to higher costs whichever option they choose. Soybean oil, the second-most consumed oil, is up 150% in the past year, and sunflower oil prices from Ukraine have more than doubled.“The rise in prices to all-time highs is bound to affect consumer habits,” said Gnanasekar Thiagarajan, head of trading and hedging strategies at Kaleesuwari Intercontinental. “Consumption is expected to go down, and if this uptrend in prices is maintained, there could be a shift in food habits that could altogether change food preferences.”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. Business Bloomberg 210512 19h23m Asian Stocks Erase Year-to-Date Gains on Virus Woes, Tech Rout (Bloomberg) -- Asian stocks dropped, with the regional benchmark briefly erasing its gains for the year, as mounting worries over inflation and a resurgence in Covid-19 cases soured investor sentiment.The MSCI Asia Pacific Index slid as much as 0.9% in early trading, tracking losses in American shares after data on Wednesday showed U.S. consumer prices climbed in April by the most since 2009. The Asian gauge has now fallen more than 9% from a Feb. 17 peak.An explosive rally in commodity prices has come at a time when Asia’s tech stocks, much like their global peers, are contending with higher U.S. bond yields and stretched valuations, and regulatory tightening in China has also added to the sector’s woes. Regional stocks have also been set back by a surge in infections in several countries including India, Japan and parts of Southeast Asia.Technology and communication services were the worst-performing sectors on the Asian gauge Thursday.In Taiwan, the benchmark stock index lost more than 2% after slumping the most since March last year on Wednesday partly due to concern over tightening of virus-linked restrictions.Japanese shares declined for a third day on Thursday, while markets in Singapore, India, Indonesia, Malaysia and the Philippines were shut for a holiday.READ: Tech Dominance Haunts Taiwan in Global Selloff: Taking StockFor 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. Business Bloomberg 210512 19h16m Oil Eases as Investors Assess Pipeline Restart, Lower Stockpiles (Bloomberg) -- Oil edged lower after a four-day gain as a key U.S. pipeline restarted, and traders assessed signs a global glut has been drained.West Texas Intermediate fell 0.7%, after closing Wednesday at a two-month high, and Brent dropped. The Colonial Pipeline -- a key source of gasoline for the East Coast -- is returning to service after a cyberattack Friday. That’ll bring relief to motorists after panic-buying emptied out some gas stations.A U.S. government report showed domestic crude inventories fell to the lowest since late February last week, adding to signs of market rebalancing. On Wednesday, the International Energy Agency said the world has now largely worked off the surplus that accumulated when the pandemic routed demand.Oil has surged this year, joining a broad rally in commodities, as investors wager that the economic recovery from the coronavirus outbreak will spur energy consumption. The roll-out of vaccines in the U.S., Europe and China has allowed governments to pare back social-distancing measures, permitting a return to work and much greater mobility. Still, Covid-19 flare-ups in many parts of Asia, including India, have complicated the global picture.“The moves today feel like a consolidation phase, there may also be some investors removing bullish trades following the resumption of the Colonial pipeline,” said Daniel Hynes, senior commodities strategist at Australia and New Zealand Banking Group Ltd. “But ultimately, strong demand globally should keep the uptrend intact.”Against the backdrop of improved worldwide demand, rising prices, and lower stockpiles, the Organization of Petroleum Exporting Countries and its allies have been cautious in easing the deep supply cuts imposed last year. At the same time, U.S. shale producers have eschewed moves to rapidly boost output.The U.S. economy is rapidly reopening and a robust summer driving season is expected, underpinned by pent-up demand. On Wednesday, data showed consumer prices surged in April by the most since 2009, topping forecasts and intensifying a debate about how long inflationary pressures will last.Brent’s prompt timespread was 17 cents a barrel in backwardation. While that remains a bullish pattern -- with near-term prices above those further out -- it has dropped to the lowest level since late March.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. Business Reuters 210512 19h12m BHP, Rio, Vale launch contest to cut haul truck emissions The world's top three iron ore miners on Thursday launched a competition to crowdsource efficient ways to deliver power to battery-electric haulage truck fleets as they strive to cut greenhouse gas emissions. The "Charge on Innovation Challenge", run by BHP Group, Rio Tinto and Vale S.A. with Australian mining services body Austmine, is looking for fast-charging concepts that would deliver around 400 kilowatt-hours (kWh) of electricity to truck fleets at remote mine sites. The mining industry is looking to move its diesel powered truck fleets to electric to cut emissions. Business World Howell date : 210512 17h13m08s Business Yahoo Finance 210512 16h55m Bitcoin sinks after Elon Musk says Tesla will not accept the digital coin for transactions Elon Musk said on Wednesday that Tesla would stop accepting Bitcoin in car purchases. Business Bloomberg 210512 16h52m DraftKings Shunned Even as Wall Street Heavyweights Say Buy (Bloomberg) -- Investors are shunning DraftKings Inc. despite signals from some of Wall Street’s most prominent names to buy the shares of the former high-flying online gaming company.Shares of the seemingly ubiquitous betting site have slumped about 40% since their March record amid a dearth of top sporting events and after the company reported quarterly results. The selloff has widened the gap between its stock price and the average analyst target by the most ever, according to data compiled by Bloomberg.And while that has led to Goldman Sachs recommending investors buy the dip and Cathie Wood’s ARK Investment Management lapping up shares of the Boston-based company, most investors aren’t budging. The stock slumped 4.3% to $42.11 on Wednesday, the eighth decline in the past 10 trading sessions. After ending last year up more than 300%, the shares have lapsed into oversold territory for the first time since it went public via a reverse merger in April 2020.To be sure, the U.S. stock market has also been in a tailspin amid growing concerns of rising inflation with the S&P 500 Index sinking 2.1% Wednesday, the biggest drop since Feb. 25.DraftKings has been caught under pressure alongside high-flying companies that have yet to turn a profit like Uber Technologies Inc. and Teladoc Health Inc. as inflation fears whipsaw the broader market. While the company posted revenue that beat analyst expectations, the wider-than-expected loss drew ire from analysts and investors. DraftKings posted a loss of 87 cents a share, worse than analysts’ estimate of about 44 cents, driven by sales and marketing expenses. It also reported an adjusted loss of 36 cents per share.“That kind of result just isn’t enough to get it done in this marketplace,” Needham analyst Bernie McTernan said by telephone. “This is going to be quite the opportunity for people to step in now” though catalysts like a March investor day and some state legalizations of online gambling are in the rear-view mirror.Still, Goldman’s Stephen Grambling, who is among the stock’s 20 buy-rated analysts, said investors should “buy the dip” as the company’s strong revenue outlook showcased the momentum. The market should return its focus to improving fundamentals for the company and the broader sports betting market, the analyst argued.The latest drop for DraftKings mirrors the slide for peer Penn National Gaming Inc. which also released results that were stronger than analysts expected last week.“DraftKings sticks out like a sore thumb in terms of way underperforming with a pretty decent print,” Needham’s McTernan said. “With Penn it was a beat-and-raise quarter where the regional casino business is just on fire and I think you’ll have the best of both worlds with Penn in the reopening and leveraging the Barstool brand.”The latest drop for DraftKings pushed it to the lowest level in six months, while Penn National’s 8.4% drop on Wednesday pressured it to close at the lowest since Dec. 11.(Updates with additional context regarding quarterly loss in fifth 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. Business Reuters 210512 16h44m Biden signs cybersecurity executive order after Colonial Pipeline attack U.S. President Joe Biden signed an executive order on Wednesday that advances federal cybersecurity capabilities and encourages improvements in digital security standards across the private sector which has been hit by a spate of high-profile cyber attacks. The executive order establishes a series of initiatives designed to better equip federal agencies with cybersecurity tools. It follows a cyberattack against the Colonial Pipeline that caused some internal computer systems to be disabled with ransomware. U.S. Bloomberg 210512 16h34m Panic Buying of Gas Seen Hundreds of Miles From U.S. East Coast (Bloomberg) -- The gasoline panic-buying in the U.S. that’s been triggered by the recent pipeline outage has spread to at least one corner of the country ostensibly well-supplied with fuel.Residents of Brownsville, McAllen and other cities in the Rio Grande Valley of Texas rushed to local gas stations Wednesday. Social media posts showed long lines for fuel in the border communities that echoed scenes witnessed during past hurricanes and the deadly freeze that gripped Texas in February.The rush to fill up was almost certainly unnecessary. The region is hundreds of miles away from areas affected by the loss flows on Colonial Pipeline, which as of Wednesday evening had restarted following an earlier ransomware attack.Some residents turned to social media to voice their frustrations.“Waited in line for 20 minutes to get gas after seeing every station in McAllen is out,” said Amy Sullivan, news director, CBS 4 News and KVEO, on Twitter. “This ISN’T necessary.”Gasoline inventories in the Gulf Coast region are estimated at 85 million barrels, or roughly 3.5 billion gallons, well above the five-year average, according to data from the Energy Information Administration.But despite plentiful supplies, Rio Grande Valley residents are buying gasoline faster than tanker truck companies can refill storage tanks at gas stations, according to the Gas Buddy Outage Tracker.“There’s no shortage of fuel but there’s a shortage of drivers,” said Alfonso Arguindegui, chief executive officer of Laredo-based tanker truck company Arguindegui Oil, which serves industrial customers and gas stations in South Texas.Motorist advocacy group AAA and government officials asked the public to remain calm and maintain normal fuel-buying habits.“It is important to know there is ample gas supply in the United States,” AAA said in a statement. “It is just a matter of getting deliveries to stations to meet demand.”The U.S. Consumer Product Safety Commission asked people not to fill plastic bags with gasoline following reports that some buyers were doing just that.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. Business Bloomberg 210512 16h33m Asia Stocks to Track U.S. Drop; Yields Jump on CPI: Markets Wrap (Bloomberg) -- Asian stocks are set to extend a selloff after a U.S. inflation reading saw the S&P 500 drop the most since February and bond yields jump on concern that price pressures could stifle the economic recovery.Futures pointed lower in Japan, Australia and Hong Kong. U.S. contracts were steady after the technology sector paced a 2.6% decline in the Nasdaq 100. The S&P 500 dropped more than 2% in a third-straight day of declines, though the energy sector climbed as commodity prices continued to rally. Treasury yields rose the most since March despite strong demand for 10-year notes in a monthly auction. The dollar jumped.Oil retreated back below $66 a barrel. The biggest U.S. gasoline pipeline is reopening after a cyberattack that sparked acute fuel shortages. Copper’s advance stalled after the inflation numbers.U.S. consumer prices climbed in April by the most since 2009, adding fuel to the debate over whether inflation will be persistent enough to force the Federal Reserve to tighten policy sooner than thought. The surprise reading included broad-based price pressures, and a market gauge of inflation expectations over the next five years touched its highest level since 2005 before easing.The consumer price index increased 0.8% from the prior month after a 0.6% gain in March. Excluding the volatile food and energy components, the so-called core CPI rose 0.9% from March. Fed Vice Chair Richard Clarida said he was surprised by the jump, but that it should prove largely transitory.“The Fed will continue to make the case that a lot of these pressures are transitory and will fade later this year as consumer demand for goods subsides and the supply side catches up,” said Aneta Markowska, economist at Jefferies LLC. “The main risk to that view is that the combo of price and wage increases may start feeding to inflation expectations, which could force the Fed’s hand.”Elsewhere, Bitcoin extended a drop after Elon Musk tweeted that Tesla Inc. has suspended vehicle purchases using the digital currency over environmental concerns. He added that Tesla will not be selling any Bitcoin.These are some of the main moves in markets:StocksS&P 500 futures were little changed as of 7:29 a.m. in Tokyo. The S&P 500 fell 2.1%Nasdaq 100 contracts were flat. The Nasdaq 100 slid 2.6%Nikkei 225 futures dropped 1.7%Australia’s S&P/ASX 200 Index futures lost 0.4%Hong Kong’s Hang Seng Index futures fell 1%CurrenciesThe yen traded at 109.68 per dollar after slipping 1%The offshore yuan was at 6.4577 per dollarThe Bloomberg Dollar Spot Index was steady after rising 0.7%The euro was at $1.2077 after falling 0.6%BondsThe yield on 10-year Treasuries advanced seven basis points, more than any closing gain since March 12, to 1.69%CommoditiesWest Texas Intermediate crude fell 0.8% to $65.55Gold was at $1,816.87 an ounceFor 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. World Reuters 210512 16h32m UPDATE 1-Biden expects spiralling Israel-Gaza conflict to end soon Israel killed a Hamas commander and vowed no let-up in its Gaza barrages as Palestinian militants rained rockets far across the border, but U.S. President Joe Biden said he expected their fiercest hostilities in years might end soon. At least 67 people have been killed in Gaza since violence escalated on Monday, according to the enclave's health ministry. Business Reuters 210512 16h30m UPDATE 1-Biden signs cybersecurity executive order after Colonial Pipeline attack U.S. President Joe Biden signed an executive order on Wednesday that advances federal cybersecurity capabilities and encourages improvements in digital security standards across the private sector which has been hit by a spate of high-profile cyber attacks. The executive order establishes a series of initiatives designed to better equip federal agencies with cybersecurity tools. It follows a cyberattack against the Colonial Pipeline that caused some internal computer systems to be disabled with ransomware. Business Reuters 210512 16h28m UPDATE 2-Tesla stops taking bitcoin payments for vehicles over climate concerns Tesla Inc has suspended the use of bitcoin to purchase its vehicles, Chief Executive Officer Elon Musk said in a tweet on Wednesday, citing concerns about the use of fossil fuel for bitcoin mining. Bitcoin, the world's biggest digital currency, fell more than 7% after the tweet and was trading at $52,669. Musk said Tesla would not sell any bitcoin, and intends to use bitcoin for transactions as soon as mining transitions to more sustainable energy. Howell date : 210512 16h12m31s Business Reuters 210512 15h48m UPDATE 1-Colonial pipeline hackers claim breach of 3 more companies The hacking group blamed for crippling a major U.S. pipeline company has claimed responsibility for breaking into three more companies on Wednesday, saying it was publishing hundreds of gigabytes of data from a Brazilian battery firm, a Chicago-based tech company, and a British engineering firm. The affected pipeline operator, Colonial Pipeline, plans not to pay the ransom demanded by the hackers who encrypted their data, sources familiar with the company's response told Reuters on Wednesday. Business Yahoo Finance Video 210512 15h43m CarParts.com CEO on booming auto parts industry CarParts.com CEO Lev Peker breaks down the company's latest quarter and talks industry trends. U.S. Bloomberg 210512 15h43m Biggest U.S. Gasoline Pipeline Restarts After Cyberattack (Bloomberg) -- The largest gasoline pipeline in America is returning to service, recovering from a cyberattack late Friday that raised pump prices and choked fuel supplies across the Eastern U.S.The Colonial Pipeline -- a critical source of gasoline and diesel for the New York area and the rest of the East Coast -- was being restarted around 5 p.m. Eastern time, the operating company said in a statement. The Alpharetta, Georgia-based company said over the weekend it was forced to take systems offline on May 7 in response to a ransomware attack.The news comes as gasoline stations are running dry from Florida to Virginia. In parts of the U.S. South, three in every four gas stations had no fuel as of Wednesday, while in Washington, D.C., cars were lining up for blocks as they waited to fill up. U.S. pump prices have topped $3 a gallon for the first time in six years. Colonial each day normally ships about 2.5 million barrels (105 million gallons), an amount that exceeds the entire oil consumption of Germany. The disruption underscores just how vulnerable America’s fuel supply system has become in the wake of increased attacks on energy infrastructure by hackers over the past few years.Colonial is only the latest example of critical infrastructure being targeted by ransomware. Hackers are increasingly attempting to infiltrate essential services such as electric grids and hospitals. The escalating threats prompted the White House to respond last month with a plan to increase security at utilities and their suppliers. Pipelines are a specific concern because of the central role they play in the U.S. economy.The attack on Colonial also came just as the nation’s energy industry is preparing for summer travel and as fuel demand rebounds from pandemic-related lockdowns. It was reminiscent of a 2018 cyberattack that brought down a third-party communications system used by several natural gas pipelines operators across the U.S. That hack didn’t halt actual gas flows, but it delayed utility billing and made it challenging for traders to forecast supplies.The Federal Bureau of Investigation attributed the breach to ransomware created by a group called DarkSide. Some evidence emerged linking DarkSide to Russia or elsewhere in Eastern Europe. President Joe Biden said Russia has “some responsibility” to address the attack but stopped short of blaming the Kremlin, saying “there’s evidence” the hackers or the software they used are “in Russia.”Shortly before the Colonial announcement, President Joe Biden said he was expecting good news on the situation and touted the steps he had taken to relieve supply disruptions.“I’ve lifted some of the restrictions on the transportation of fuel as well as access to the United States military providing fuel, and with vehicles to get it there, places where it’s badly needed,” Biden told reporters at the White House.The White House announced several measures to blunt the growing crisis, including waiving some gasoline requirements and empowering 10 states to allow heavier-than-normal truck loads of fuels. It is also taking initial steps toward possibly allowing foreign tankers to transport gasoline and diesel to East Coast ports.In Washington, lawmakers were scheduled to receive a briefing from administration officials Wednesday evening.Biden said the attack demonstrated the need for U.S. investments in education to improve the nation’s cyber defenses. He’s proposed some $4 trillion in spending on infrastructure, social welfare and education programs.“We need a significantly larger number of experts in the area of cyber security working for private companies, as well as private companies being willing to share data as to how they’re protecting themselves,” he said. “I think that’s part of the long-term answer, not just in terms of energy but across the board.”This isn’t the first time Colonial has been forced to shut down. In 2016, an explosion kept the system offline for days, raising gasoline prices and forcing the New York Harbor market to become more dependent on imports of fuel from overseas.Colonial has the capacity to ship about 2.5 million barrels a day on its system stretching from Houston to North Carolina and another 900,000 barrels a day to New York.Ransomware cases involve hackers seeding networks with malicious software that encrypts the data and leaves the machines locked until the victims pay the extortion fee, which can range from a few hundred dollars to millions of dollars in cryptocurrency. Utilities’ information technology networks, which run email and other routine functions, and operational technology networks, which control the actual functioning of the delivery of electricity or natural gas, are typically kept mostly separate, which is what made Colonial’s decision to temporarily shut down both so unusual.(Adds comment from Biden starting in eighth 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. Business Reuters 210512 15h42m Hedge funds bet on subscription-based businesses, pharmacy and copper Hedge fund managers on Wednesday recommended buying stocks of companies they believe will benefit from the movement of many services online, even though society is expected to return to more human contact after the global coronavirus pandemic ends. Investors presented ideas ranging from food delivery to copper mining at the virtual Sohn Investment Conference, which gathers hedge fund managers annually to pitch their top bets and raise money for a charity funding research in pediatric cancer treatments. Andrew Nunneley at Glenernie Capital said he believed German's HelloFresh had a huge opportunity to capture market share with meal-kit delivery companies currently accounting for a mere 1% of the grocery market. Business Yahoo Finance Video 210512 15h40m U.S. home prices surge, what could cool the hot housing market Tim Rood - SitusAMC Managing Director and former Chairman of The Collingwood Group, joined Yahoo Finance to discuss the booming housing market. Howell date : 210512 15h11m55s U.S. Bloomberg 210512 14h52m Gasoline Prices Hit $3 as Shortages Grow on Pipeline Outage (Bloomberg) -- Gasoline stations and terminals from Florida to New Jersey are running dry as shortages worsen five days into the shutdown of the biggest U.S. fuel pipeline.As the Colonial Pipeline system -- hit by a cyberattack and forced to shut on May 7 -- struggles to recover, fuel terminals are being drained. In parts of the U.S. South, three in every four gas stations have run dry, while in Washington, D.C., cars are lined up for blocks as they wait to fill up. U.S. pump prices have topped $3 a gallon for the first time in six years.“The situation completely changed overnight,” said Gary Kandola, chief financial officer at Express Fuel Distributors Corp., which supplies gas stations in New Jersey and Pennsylvania. “They have people coming in from Virginia, Maryland” to acquire fuel.President Joe Biden said on Wednesday that he expects Colonial Pipeline will have “good news” to share in the next 24 hours. The pipeline operator previously said it expects to reach a decision midweek on whether it can begin the process of restarting its network of pipelines that transport gasoline, diesel and jet fuel from the Houston area to North Carolina and up the East Coast.The escalating disruption underscores just how vulnerable America’s fuel supply system has become in the wake of increased attacks on energy infrastructure by hackers over the past few years. The fuel shortage is also adding to growing inflationary pressures that have spurred rallies in commodity prices from timber to copper this month.The White House has so far announced several measures to blunt the growing crisis, including fuel waivers and additional weight limits for some trucks. It is also taking initial steps that could permit foreign tankers to transport gasoline and diesel to East Coast ports.“Colonial has announced that they’re working toward full restoration by the end of this week, but we are not taking any chances,” Transportation Secretary Pete Buttigieg said at a daily White House briefing on Wednesday. “Our top priority now is getting fuel to communities that need it, and we will continue doing everything that we can to meet that goal in the coming days.”The Biden administration will give a House briefing on the cyberattack at 6 p.m. Washington time.Colonial each day normally ships about 2.5 million barrels (105 million gallons), an amount that exceeds the entire oil consumption of Germany. The company has only managed to restart a small segment of the pipeline as a stopgap measure. Even when full service is restored, it will take about two weeks for gasoline stored in Houston to reach East Coast filling stations.About 65% of stations in North Carolina are without fuel and at least 40% in Virginia and Georgia, according to retail-tracker GasBuddy on Wednesday. Three distribution hubs in Pennsylvania have run dry and long lines of tanker trucks are forming at terminals in New Jersey. New Jersey Governor Phil Murphy said Wednesday the state does not have a supply issue.Two of the nation’s largest truck-stop owners --- Love’s Travel Stops & Country Stores Inc. and TravelCenters of America Inc. -- confirmed that fuel is scarce in some states. Both companies said they’re taking extraordinary measures to replenish tanks.Convenience store chain Circle K, Couche-Tard’s global brand, is also seeing some disruption to fuel deliveries in the U.S., with a number of outages in affected areas, mainly in the southeast, according to a company statement on Wednesday.Meanwhile, most Gulf Coast refineries are expected to trim output with supplies seen backing up in the nation’s oil-refining nexus. Much of the cuts may be shouldered by refineries from Port Arthur, Texas, and eastward. At least one refinery each in Texas and Louisiana already reduced production.As the outage drags on, traders are booking larger vessels that can send more fuel from the Middle East and Asia west to destinations such as the U.S. East Coast, according to shipbrokers and fixtures data compiled by Bloomberg.The Biden administration issued an order on Sunday extending the amount of time truck drivers can spend behind the wheel when transporting fuel across 17 states and the District of Columbia. On Tuesday evening, the Transportation Department said 10 states could allow heavier-than-normal truck loads of gasoline and other fuels.Federal transportation regulators also took the first step toward waiving the 101-year-old Jones Act that prohibits foreign-flagged and -staffed ships from hauling products from one U.S. port to another.”The Department of Homeland Security is standing ready to review any requests for a temporary waiver of the Jones Act from companies that demonstrate that there’s not sufficient capacity on Jones Act-qualified vessels to carry specific shipments of fuel in and around the region,” Buttigieg said on Wednesday. He declined to speak to “any specific waiver requests going on right now.”The Environmental Protection Agency moved to allow the sale of gasoline that doesn’t satisfy requirements meant to help combat smog in certain areas. An initial order allowed the sale of conventional gasoline in areas where reformulated gasoline is required across Maryland, Pennsylvania, Virginia and the District of Columbia. A second order went further by waiving low-volatility requirements governing conventional and reformulated gasoline in those areas, as well as nine other states.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. World Reuters 210512 14h48m UPDATE 1-Biden urges parents to get kids vaccinated after CDC panel OKs Pfizer vaccine U.S. President Joe Biden on Wednesday urged parents to get their children vaccinated after a government advisory panel authorized the Pfizer's COVID-19 vaccine for children aged 12 to 15. "Now that vaccine is authorized for ages 12 and up, and I encourage their parents to make sure they get the shot," Biden said. A U.S. Centers for Disease Control and Prevention (CDC) advisory panel on Wednesday backed use of the vaccine for younger adolescents in a unanimous vote. Business Yahoo Finance Video 210512 14h46m Market Recap: Wednesday, May 12 Fears of rising inflation hammered Wall Street on Wednesday, with grim consumer price data sparking a sell-off in blue chip and technology shares, while amplifying new concerns about the rebound from COVID-19. Ross Mayfield, Baird Investment Strategy Analyst and Teddy Parrish, CEO & CIO of Parrish Capital, joined. Yahoo Finance Live to discuss. Business Bloomberg 210512 14h42m Biggest Lithium Miner Gears Up to Tap Major Lode From Old Cars (Bloomberg) -- The world’s biggest lithium miner wants to extract more of the battery metal from old cars as demand surges and aging electric vehicles are traded in.Albemarle Corp. is making investments and partnering with automotive equipment manufacturers on the recycling effort, which it calls “critical” to its future growth.The miner is part of a growing list of companies looking to grab a share of the market for recovered battery materials as lithium supplies show signs of tightening. Thirteen years after the Tesla Roadster made its debut, a first generation of EVs is nearing retirement, making more battery packs available. Once that happens, recycling is going to “take off,” said Christopher Perrella of Bloomberg Intelligence.“It is very early stages, it’s something we’re investing in now,” Eric Norris, Albemarle’s head of lithium, said in an interview. “It’s a pretty comprehensive effort and a critical one for our growth going forward. We view this as a future resource that we would like to play prominently in.”The recycling initiative is already underway at the Charlotte, North Carolina-based company, with a joint development agreement in place with a customer and the company looking at making investments with original equipment manufacturers, Norris said. Albermarle will help OEMs recycle from end-of-life batteries using its proprietary technology, he said.The commercial activity will be in the second half of the decade, when regulatory mandates stipulate those batteries have to be recycled, Norris said.BloombergNEF estimates 62,000 metric tons of used EV and stationary storage packs reached their end of life in 2020. This will grow to more than 4 million tons by 2035, according to BNEF.In 2030, the world’s drivers and fleets are expected to buy almost 26 million electric vehicles a year, and junkyards will take in almost 1.7 million metric tons in scrapped batteries, BNEF said. Cumulative passenger, e-bus and commercial EV sales totaled 7.7 million at the end of 2019, according to the analysts.Albemarle’s push may also help burnish its environmental credentials.Recycling is viewed by environmental groups as one important way to reduce new mining projects. In the future, end-of-life EV lithium-ion batteries will be the major source for secondary metals for cobalt, lithium and nickel, according to an April report commissioned by Earthworks and published by the Institute for Sustainable Futures, University of Technology Sydney.Recycling is part of the sustainable aspect of electric vehicles, Kent Masters, Albemarle’s chief executive officer, said in the interview. At the end of life of EV batteries, “we have the skill set to help recycle that and to close the loop around EVs and lithium-ion batteries,” he said.The recycle processing will be done on a local basis in Europe and North America, according to Masters.Canadian battery-recycling startup Li-Cycle Corp. said on Tuesday that it was awarded a multi-year contract with Ultium Cells LLC, a joint venture between General Motors and LG Energy Solution, to recycle critical materials from scrap and manufacturing excess generated by battery cell manufacturing.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. Howell date : 210512 14h11m17s U.S. Reuters 210512 14h04m UPDATE 1-Panicked drivers in Southeast U.S. swarm pumps, ignore pleas to stop hoarding Drivers in the U.S. Southeast formed lines on Wednesday to fill up tanks from the dwindling number of retail gas stations with fuel to sell, disregarding government pleas not to hoard as the shutdown of the nation's biggest fuel pipeline entered its sixth day. "If I don't have gas, I don't work," said Ronald Ross, 47, a DoorDash driver in Atlanta, as he fueled up his Chevy sedan. Fistfights at gas stations were reported in some places. Business Reuters 210512 14h01m US STOCKS-Wall Street closes sharply lower as inflation fears heat up Wall Street closed lower on Wednesday with the S&P suffering its biggest one-day percentage drop since February, as inflation data fueled concerns over whether interest rate hikes from the Fed could happen sooner than anticipated. All three major U.S. stock indexes ended the session deep in negative territory in the wake of the Labor Department's April consumer prices report, which showed the biggest rise in nearly 12 years. The report, which measures the prices U.S. consumers pay for a basket of goods, was hotly anticipated by market participants who have grown increasingly worried over whether current price jumps will defy the U.S. Federal Reserve's reassurances by morphing into long-term inflation. Business Bloomberg 210512 14h00m Anxious Canadians Are Open to Rate Hikes to Cool Red-Hot Housing Market (Bloomberg) -- Canadians are so alarmed by the red-hot housing market that many say they’d like to see the central bank raise the cost of borrowing to dampen demand for real estate and stabilize prices.About 70% of Canadians responding to a new Nanos Research poll conducted for Bloomberg News said the sharp increase in home prices was a major problem for the economy. Almost half were at least somewhat in favor of the Bank of Canada raising its overnight rate to slow the rise, even though such a move would also increase the cost of credit lines, credit cards and other debt.The numbers underscore how soaring housing costs have emerged as a major issue in the public consciousness after a year in which prices jumped by 30% or more in some regions. Economists at major banks have called on the government to act to reduce demand. At the same time, the Bank of Canada has made it clear it won’t raise rates until the economy absorbs its excess capacity -- a milestone projected for 2022 at the earliest.“Even though there is no consensus, the fact that one in two Canadians are good with a rate hike speaks to the appetite to cool down a hot housing market,” pollster Nik Nanos said.Those sentiments are prompting some anxiety for Canadians -- including some homeowners whose own fortunes are rising with the real estate market.“I own a place, but I also have a son too. When I think about my son, it’s like, how is he going to survive in this world?” said Raymond Wong, a Vancouver engineer who filed a petition with Canada’s parliament saying the central bank should consider house prices when setting interest rates. “He can do everything right, do everything by the book, get an education, but at the end of the day he won’t be able to afford anything.”The Bank of Canada’s long-standing position has been that it should be the last line of defense against threats to financial stability, as its focus is on other priorities, like maintaining healthy inflation and output growth.Most economists say it’s still too early in the recovery for the central bank to hike rates, and it’s not clear that the survey respondents who favored raising rates took full account of the broader effect of higher borrowing costs.Still, Canadians’ growing alarm at the recent surge in home values could present a political problem for Prime Minister Justin Trudeau. The government has options other than raising interest rates to slow the housing market, like taxes and regulation, but has refrained from using them for fear of angering homeowners.Class BattleThe widening gulf between Canadians with property and those without has some vocal critics casting the issue as a battle among classes or generations.And like so many modern revolutionaries, Canada’s housing discontents are congregating on Reddit. On a subreddit called r/canadahousing, about 8,500 members share memes, post news articles and discuss what they refer to as Canada’s housing crisis.The Redditors are also organizing. Using the proceeds from a GoFundMe campaign, they recently rented two billboards to be put up this week in Toronto and Ottawa. The Toronto one will say, “Can’t Afford a Home? Have You Tried Finding Richer Parents?” while the Ottawa one will read, “Homes Aren’t For You. They’re For the Rich. You Can Rent.”“We’ll be the generation that can never retire because of housing prices. The barrier to entry has never been higher,” Greg Murray, a 33-year-old corporate strategy executive who was a spokesman for the Reddit group, said in an interview. (A few days after Bloomberg spoke to Murray, he stepped away from the group.)In Canada as in the U.S., home ownership has long been seen as essential to securing a place in the middle class, prompting Canadians to own their homes at one of the highest rates in the world. The home ownership rate in Canada is roughly 69%, compared with 65% in France, 63% in the U.K. and 61% in Japan.The Trudeau government has said it’s particularly focused on helping first-time homeowners get into the market, but so far most economists think the steps taken -- including a 1% tax on non-resident homeowners and funding for affordable housing -- are unlikely to make up for the ground lost by prospective homebuyers in the last year.As a model for alternative policy, the Trudeau government’s critics point to New Zealand, which, faced with a similar housing boom over the past year that was induced by low interest rates, introduced a tax specifically targeting speculation. The government also instructed its central bank to consider housing when setting monetary policy.Canada’s housing agitators often portray the issue as a conflict between the old and the young, and the propertied and the property-less. But the Bloomberg survey, conducted from April 29 to May 3, suggests that may not be the case. Even though 18% of respondents 18 to 34 said they “support” increasing interest rates to slow the rise of housing prices, compared with 13% of respondents over age 55, the older group was even more likely than the younger group to say they “somewhat support” an increase.“I think it’s pretty clear to most people that housing in this country is all but out of control,” Benjamin Reitzes, a Canadian rates and macro strategist at BMO Capital Markets, said by email. “While it’s nice to have an appreciating asset, it makes moving to the next home that much more expensive. In addition, for those with kids, it makes you wonder how they’ll be able to afford a home if this continues.”(Updates 13th paragraph with change to Murray’s involvement in the group)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. Politics Yahoo Finance 210512 13h55m The gas pipeline hack shows just how much ransomware can disrupt our lives The ransomware attack on the Colonial Pipeline shows how desperately the U.S. needs to act to get cyber crime under control. Business Bloomberg 210512 13h50m Gold Set to Snap Best Rally in Four Months After Inflation Data (Bloomberg) -- Gold is set to snap its longest rally since January, hurt by gains in the dollar and Treasury yields after a higher-than-expected reading on U.S. inflation.U.S. consumer prices climbed in April by the most since 2009, according to Labor Department data Wednesday. Rising yields reduce the appeal of non-interest-bearing bullion, and a stronger dollar makes bullion more expensive for investors holding other currencies.Markets were already concerned that rising inflation amid surging commodity prices could prompt the Federal Reserve to boost rates earlier than expected. Gold had shrugged off that concern, rising to the highest in three months earlier this week after a report Friday showed a surprise slowdown in U.S. job growth, supporting the case for continued economic stimulus.“Gold is approximately 50% correlated with Treasuries, so it gets hit as interest rates rises,” said Jay Hatfield, president of Infrastructure Capital Management. “On top of that, the dollar is rallying. The stock market dipping on the inflation data showed that investors fear that the Fed may need to tighten soon.”Policy makers at the central bank have been unified in supporting the case for low interest rates.“The outlook is bright, but risks remain, and we are far from our goals,” Governor Lael Brainard told a virtual event Tuesday. Cleveland Fed President Loretta Mester and James Bullard of St. Louis voiced similarly dovish views.Spot gold fell 0.9% to $1,821.07 at 3:21 p.m. in New York. The metal gained for five straight sessions through Tuesday, the longest rally since Jan. 5.Futures for June delivery on the Comex declined 0.7% to settle at $1,822.80 an ounce. Spot silver, platinum and palladium slid.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. Business Reuters 210512 13h48m American Airlines to resume non-stop service on two flights hit by fuel shortage American Airlines will resume on Thursday the normal schedule of two long-haul flights out of its Charlotte, North Carolina, hub that were impacted by the shutdown of the Colonial Pipeline, a spokesman said on Wednesday. American has reallocated resources to resume non-stop service on the two flights, he said, even as the shutdown of the largest U.S. fuel pipeline network resulting from a ransomware cyber attack entered its sixth day. Howell date : 210512 13h40m41s Business Yahoo Finance Video 210512 13h23m Rates and inflation are not the biggest motivators behind moves in the tech sector: AdvisorShares CEO Noah Hamman, Founder and CEO of AdvisorShares Investments, joins Yahoo Finance Live to discuss outlook on the market, chip sector, and inflation. Business Yahoo Finance 210512 13h22m Bumble reports first-quarter results after the bell today Bumble reports first-quarter results after the closing bell on Wednesday, marking the dating and networking site's second report as a public company. U.S. Bloomberg 210512 13h19m California Sees Risk of Power Supply Shortages for Summer (Bloomberg) -- California’s grid operator warned there’s a risk of rotating outages this summer if the U.S. West is hit with an extreme heat wave like the one that triggered blackouts in the state last August.The state, however, is in a better position to handle demand due to an increase in power generation capacity, as well as policy and market-design changes made since last year, the California Independent System Operator said in a summer assessment report released Wednesday.State officials and the grid operator have been working to shore up supplies to avoid a repeat of blackouts that plunged more than 800,000 customers into darkness for hours on two consecutive days in August. The outages were the first of their kind since the state’s energy crisis two decades ago.“New resources are coming online by summer, and we have taken the lessons learned from last year to make modifications to our market and operations,” California ISO Chief Executive Officer Elliot Mainzer said in a statement. “This makes us cautiously optimistic that there will be enough electricity to meet demand this summer.”The California ISO said it has added 2,000 megawatts of resources including battery storage and is looking to get an additional 1,000 to 1,500 megawatts of supplies. The state’s hydroelectric supplies will be lower than normal due to drought conditions, the grid operator said.The state remains reliant on importing power from its neighbors, and if there is prolonged widespread hot weather, those imports could be limited and boost the odds of the need to impose rotating blackouts, according to the report.(Updates with comment from California ISO CEO 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. U.S. Bloomberg 210512 13h18m Gasoline Prices Hit $3 as Shortages Grow on Pipeline Outage (Bloomberg) -- Gasoline stations and terminals from Florida to New Jersey are running dry as shortages worsen five days into the shutdown of the biggest U.S. fuel pipeline.As the Colonial Pipeline system -- hit by a cyberattack and forced to shut on May 7 -- struggles to recover, fuel terminals are being drained. In parts of the U.S. South, three in every four gas stations have run dry, while in Washington, D.C., cars are lined up for blocks as they wait to fill up. U.S. pump prices have topped $3 a gallon for the first time in six years.“The situation completely changed overnight,” said Gary Kandola, chief financial officer at Express Fuel Distributors Corp., which supplies gas stations in New Jersey and Pennsylvania. “They have people coming in from Virginia, Maryland” to acquire fuel.The escalating disruption underscores just how vulnerable America’s fuel supply system has become in the wake of increased attacks on energy infrastructure by hackers over the past few years. The fuel shortage is also adding to growing inflationary pressures that have spurred rallies in commodity prices from timber to copper this month.Colonial said earlier this week it expects to make a decision Wednesday on whether it’s time to begin the process of restarting its network of pipelines that transport gasoline, diesel and jet fuel from the Houston area to North Carolina and up the East Coast.The White House has so far announced several measures to blunt the growing crisis, including fuel waivers and additional weight limits for some trucks. It is also taking initial steps that could permit foreign tankers to transport gasoline and diesel to East Coast ports.“Colonial has announced that they’re working toward full restoration by the end of this week, but we are not taking any chances,” Transportation Secretary Pete Buttigieg said at a daily White House briefing on Wednesday. “Our top priority now is getting fuel to communities that need it, and we will continue doing everything that we can to meet that goal in the coming days.”The Biden administration will also give a House briefing on the cyberattack at 6 p.m. Washington time.About 65% of stations in North Carolina are without fuel and at least 40% in Virginia and Georgia, according to retail-tracker GasBuddy on Wednesday. Three distribution hubs in Pennsylvania have run dry and long lines of tanker trucks are forming at terminals in New Jersey. New Jersey Governor Phil Murphy said Wednesday the state does not have a supply issue.Colonial each day normally ships about 2.5 million barrels (105 million gallons), an amount that exceeds the entire oil consumption of Germany. The company has only managed to restart a small segment of the pipeline as a stopgap measure. Even when full service is restored, it will take about two weeks for gasoline stored in Houston to reach East Coast filling stations.As the outage drags on, traders are booking larger vessels that can send more fuel from the Middle East and Asia west to destinations such as the U.S. East Coast, according to shipbrokers and fixtures data compiled by Bloomberg.Two of the nation’s largest truck-stop owners --- Love’s Travel Stops & Country Stores Inc. and TravelCenters of America Inc. -- confirmed that fuel is scarce in some states. Both companies said they’re taking extraordinary measures to replenish tanks.The Biden administration issued an order on Sunday extending the amount of time truck drivers can spend behind the wheel when transporting fuel across 17 states and the District of Columbia. On Tuesday evening, the Transportation Department said 10 states could allow heavier-than-normal truck loads of gasoline and other fuels.Federal transportation regulators also took the first step toward waiving the 101-year-old Jones Act that prohibits foreign-flagged and -staffed ships from hauling products from one U.S. port to another.”The Department of Homeland Security is standing ready to review any requests for a temporary waiver of the Jones Act from companies that demonstrate that there’s not sufficient capacity on Jones Act-qualified vessels to carry specific shipments of fuel in and around the region,” Buttigieg said on Wednesday. He declined to speak to “any specific waiver requests going on right now.”Meanwhile, most Gulf Coast refineries are expected to trim output amid expectations that supplies will begin backing up in the nation’s oil-refining nexus. Much of the cuts may be shouldered by refineries from Port Arthur, Texas, and eastward. At least one refinery each in Texas and Louisiana already reduced production.The Environmental Protection Agency moved to allow the sale of gasoline that doesn’t satisfy requirements meant to help combat smog in certain areas. An initial order allowed the sale of conventional gasoline in areas where reformulated gasoline is required across Maryland, Pennsylvania, Virginia and the District of Columbia. A second order went further by waiving low-volatility requirements governing conventional and reformulated gasoline in those areas, as well as nine other states.Gasoline isn’t the only oil-derived product under threat. In an effort to bolster jet-fuel inventories, Southwest Airlines Co. has begun flying supplies to Nashville, Tennessee, and other cities. So far, no Southwest flights have been affected by the pipeline closure; rather, the airline said it’s “actively managing” fuel stockpiles. United Airlines Holdings Inc. loaded extra fuel on flights to preserve local supplies in places like Baltimore and Greenville-Spartanburg, South Carolina.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. Health Yahoo Finance 210512 13h16m Opioid crisis: New evidence shows how 'medication-assisted treatment' saves lives and money America's opioid crisis has only worsened over the years, and a new study bolsters calls for medication-assisted treatment (MAT) to manage resulting substance use disorders. Business Bloomberg 210512 13h15m Oil Surges With U.S. Supply Drop Underscoring Global Rebalancing (Bloomberg) -- Oil rose to the highest since early March with a second straight weekly decline in U.S. crude supplies underscoring the progress the world has made in draining a record supply glut built up last year.Futures in New York gained for a fourth straight day on Wednesday, while global benchmark Brent crude neared $70 a barrel. A U.S. government report showed domestic crude inventories fell to the lowest since late February last week. Meanwhile, gasoline supplies rose by 378,000 barrels, the Energy Information Administration report showed.Declining crude stockpiles in the U.S. support the International Energy Agency’s view that the world has largely worked off the surplus it accumulated when the pandemic devastated demand. While the agency cut its oil consumption forecasts in a monthly report, it said the glut is now just a small fraction of levels seen at the depths of the coronavirus fallout last year.“Inventories are still trending in the right direction,” said Quinn Kiley, a portfolio manager at Tortoise, a firm that manages roughly $8 billion in energy-related assets. “The economy globally is reopening and that should continue, so we should see continuing draws.”The weekly storage report showed domestic supply levels ahead of the cyberattack that halted the largest U.S. oil-products pipeline system. Panic-buying spurred by the ongoing outage of the Colonial Pipeline has pushed retail gasoline prices above $3 a gallon for the first time in more than six years, while supplies at some terminals have been wiped out on the U.S. Northeast. That’s all before the upcoming summer travel season is expected to unleash a wave of pent-up demand built up during the pandemic.See also: N.J., Pennsylvania Hit by Mad Dash for Gasoline Amid Crisis“Even if everything is fixed at this second, we’re probably still looking at a couple of weeks of trouble,” said Bill O’Grady, executive vice president at Confluence Investment Management in St. Louis. “That runs us right into Memorial Day,” around which the U.S. summer driving season starts.Still, the impact of the shutdown on headline crude prices is muted for now. The market remains buoyed by prospects for recovering energy demand around the world and broader bets on global inflation. U.S. consumer prices climbed in April by the most since 2009, exceeding forecasts, official figures showed Wednesday.The EIA report showed crude exports falling by the most on record to the lowest since 2018. While the figure jumped above 4 million barrels a day the previous week, it has struggled to consistently top 3 million barrels a day for several months.The report also gave some insight on the state of gasoline inventories on the U.S. East Coast before Colonial was idled. Stockpiles of the fuel in the Central Atlantic fell 1.15 million barrels last week, though they remained near the region’s five-year average, providing some cushion to last through the pipeline outage. But in the Lower Atlantic, which is the most reliant on the pipeline, gasoline inventories were at their lowest since 2016 for this time of year, even with a 815,000-barrel build last week.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. Business Bloomberg 210512 13h12m A Tiny Fund’s Assets Jump 1,700% This Year Thanks to Carbon Boom (Bloomberg) -- This year’s surge in carbon prices has turned a little-known ETF into one of the fastest-growing products in the $6.2 trillion industry.In just five months, the KraneShares Global Carbon ETF (KRBN) has seen its assets jump more than 1,700% to $311 million, according to data compiled by Bloomberg. The exchange-traded fund that invests in carbon credits worldwide is up over 40% since the end of 2020, riding the green revolution sweeping across global markets. That’s about four times the rally in the S&P 500.One of the most important reasons for the fund’s success this year is the fact that a portion of its holdings is in European Union carbon futures. Prices have soared about 70% in 2021 amid prospects the region will enact aggressive climate policies.In the EU, industrial and power companies are required to buy carbon allowances to account for their emissions. The idea behind such credits is that as prices increase, polluting companies will eventually decide to invest in reducing emissions -- rather than purchasing the credits.“Many countries are putting into legislation that companies need to decarbonize, so there will be more demand for carbon credits,” Linda Zhang, chief executive officer of Purview Investments.President Joe Biden’s renewed pledge to establish the U.S. as a leader in the fight against climate change is further expected to benefit the market.“The Biden administration has made it very clear that as part of its overall agenda, it wants environmental and sustainability issues to be front and center,” said Craig Fehr, investment strategist at Edward Jones. “Carbon credits play into that environment where there is more of a focus on environmental issues.”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. U.S. Reuters 210512 13h09m U.S. FAA to require strengthening key part on Boeing 777 engine The head of the Federal Aviation Administration said on Wednesday the agency is going to mandate strengthening a key engine part on Boeing 777 planes with Pratt & Whitney (PW) engines like the one involved in an emergency landing in February. FAA Administrator Steve Dickson told a U.S. House committee that the agency is "requiring the manufacturers to address strengthen(ing) the cowling." He also said the agency was working with Boeing and PW to ensure "the structure around the engine, the cowling and the inlet area, does not damage the aircraft structure." Business Bloomberg 210512 13h07m Stocks, Bonds Decline Amid Price Pressure Concerns: Markets Wrap (Bloomberg) -- U.S. stocks slumped for a third day and bond yields climbed after a report showed inflation rose more than forecast, adding to concern that price pressures will stifle a recovery in the world’s biggest economy.The technology sector continues to lead the retreat in equities, with Apple and Microsoft pacing declines in the Nasdaq 100. Cathie Wood’s ARK Innovation ETF resumed its slide, bringing this year’s loss to about 18%. After closing at a record high on Friday, the benchmark S&P 500 slumped the most since Feb. 25. Energy was the only one of the 11 industry sectors in the green. Treasury yields moved briefly off the highs of the day after a successful 10-year note auction.“The markets have been hovering around all-time highs with a lot of the reopening trade already priced in,” said Mike Loewengart, managing director of investment strategy at E*Trade Financial. “So it’s not out of the question that the outsized inflation read could bring us back down to earth a bit.”The debate over whether inflation will be persistent enough to force the Federal Reserve to tighten policy sooner than current guidance suggests comes as abundant stimulus has powered a rally in global equities, raising concerns valuations had become expensive. Fed Vice Chair Richard Clarida said he was surprised by the rise in consumer prices and “we would not hesitate to act” to bring inflation down to its goals if needed.The consumer price index increased 0.8% from the prior month after a 0.6% gain in March. Excluding the volatile food and energy components, the so-called core CPI rose 0.9% from March.“The CPI data point feeds into a myopic narrative that the U.S. is overheating and the Fed is one step away from tightening,” said Mike Bailey, director of research at FBB Capital Partners. “Bears will feast on this tightening theme in the short term, but my sense is inflation will prove fleeting and markets will revert back to a more bullish view of moderate growth and lower risk of Fed tightening until we get to a full recovery.”Elsewhere, the claim among advocates that Bitcoin is an inflation hedge appears to be in question after the CPI report. The digital asset slumped as much as 5.8% to around $53,600.European stocks closed mostly higher, lifted by optimism about economic re-openings and booming commodities.Copper and iron ore were on course for new records amid a broadening commodities boom. Oil was steady above $65 per barrel. The biggest U.S. pipeline is still closed in the wake of a cyberattack, leading to acute fuel shortages in some parts of the nation.MLIV’s Question of the Day: How Priced In Is a European Reopening?These are some of the main moves in markets:StocksThe S&P 500 fell 1.8%, falling for the third straight day, the longest losing streak since March 4 as of 3:05 p.m. New York timeThe Nasdaq 100 fell 2.5%, falling for the third straight day, the longest losing streak since May 5The Dow Jones Industrial Average fell 1.6%, more than any closing loss since Feb. 25The MSCI World index fell 1.5%, more than any closing loss since Jan. 29CurrenciesThe Bloomberg Dollar Spot Index rose 0.6%, more than any closing gain since April 30The euro slipped 0.6%, more than any closing loss since April 30The British pound slipped 0.6%, more than any closing loss since April 30The Japanese yen slipped 0.9%, more than any closing loss since March 4BondsThe yield on 10-year Treasuries advanced seven basis points, more than any closing gain since March 12Germany’s 10-year yield advanced four basis points, climbing for the sixth straight day, the longest winning streak since Feb. 8Britain’s 10-year yield advanced five basis points, more than any closing gain since March 12CommoditiesWest Texas Intermediate crude rose 1%, climbing for the fourth straight day, the longest winning streak since April 15Gold futures fell 0.9% to $1,820 an ounceFor 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. U.S. Bloomberg 210512 13h07m U.S. Pipeline Watchdog Rebuffed Call for Cybersecurity Rules (Bloomberg) -- The federal agency charged with protecting the nation’s pipelines hasn’t imposed any mandatory cybersecurity requirements since its creation in wake of the Sept. 11, 2001 terrorist attacks -- despite dire warnings from the intelligence community about vulnerability to hackers.Instead, the U.S. Transportation Security Administration’s Pipeline Security Branch, which oversees nearly three million miles of pipelines, has relied on voluntary best practices and self-reporting by the industry to secure the operations. Those measures have alarmed pipeline safety advocates and been criticized as inadequate by government regulators and lawmakers.“Simply encouraging pipelines to voluntarily adopt best practices is an inadequate response to the ever-increasing number and sophistication of malevolent cyber actors,” Richard Glick, chair of the Federal Energy Regulatory Commission said in a statement. “Mandatory pipeline security standards are necessary to protect the infrastructure on which we all depend.”FERC has used authority it received under a 2005 law to set robust cybersecurity standards for the electric grid, but its power does not extend to pipelines. The Pipeline Security Branch can impose mandatory cybersecurity rules “if the agency determines that regulations are appropriate,” according to the Congressional Research Service. The industry has opposed such measures.The approach of the Pipeline Security Branch, which had just 34 full-time staff positions, has been the subject of criticism by the Government Accountability Office, which said in a 2018 report it found “significant weaknesses” in the agency’s management of pipeline security.Colonial Pipeline Co. on Friday halted operations on the 5,500-mile (8,851.4 kilometers) pipeline system, a critical supply of gasoline and other refined products to New York and other cities along the east coast, after it fell victim to a ransomware attack by hackers.The Alpharetta, Georgia-based company has said it’s manually operating a segment of the pipeline running from North Carolina to Maryland and expects to substantially restore all service by the weekend. The pledge may not come fast enough to avert immediate shortages in the U.S. Southeast, where gas stations have reported selling out of fuel.Cybersecurity experts and government officials have warned for years about the consequences of a pipeline hack, including in 2019 when a report by the Office of the Director of National Intelligence Daniel Coats warned that a cyber-attack could disrupt a pipeline “for days to weeks.”“It absolutely is a problem,” said Rebecca Craven, program director for the Pipeline Safety Trust, a Bellingham, Washington-based watchdog group. “These are lines running through communities handling hazardous materials and the public needs to be aware of threats to him.”In a statement, the Transportation Security Administration said the security unit had increased its staff to 34 from six in 2018 but did not respond to a question about whether it planned to issue mandatory cybersecurity regulations.“Through public and private partnerships and continued expansion of staffing and resources, TSA works tirelessly to enhance pipeline security measures,” the agency said. “TSA will continue to work in close coordination with government and pipeline partners to evaluate the key factors garnered from the cyber incident and determine opportunities to reduce and mitigate risk across the sector.”A spokeswoman for the gas industry also defended the approach.“TSA Pipeline Security Guidelines act as a floor, whereas mandates provide a ceiling,” said Kimberly Denbow, a managing director with the American Gas Association, which represents companies like pipeline operator Enbridge Inc. and utility Duke Energy Corp. “No regulation is faster than our adversaries’ ability to circumvent it. As soon as a mandatory compliance scheme is developed, it’s obsolete.”A lack of qualified inspectors -- the agency had just one in 2014, according to the GAO -- had left the agency unable to make a comprehensive review of pipeline security, the 2018 GAO report said. The report also found “a lack of clear definitions” about what constituted a “critical facility” for which extra security should apply.That had led one-third of the nation’s top 100 pipeline systems to report they had identified no critical facilities.“It’s clear from GAO’s work that while pipelines are reliable today, the Transportation Security Administration is not fully prepared to face the challenges of tomorrow,” Washington Senator Maria Cantwell and New Jersey Representative Frank Pallone, both Democrats, wrote in a letter to the Department of Homeland Security at the time. “I’m concerned that TSA lacks both the resources and expertise in energy delivery systems to keep up with its obligations under the law.”(Updates with TSA comment starting in 10th 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. Business Reuters 210512 12h59m Traders not betting on a quick U.S. market rebound as tech stocks tumble Traders have been placing more bearish bets on equity derivatives in recent days, data showed on Wednesday, indicating less confidence in U.S. stocks rebounding from a sharp sell-off which has particularly hit high-flying tech names. Investors' tendency to look past minor wobbles in stocks as the S&P 500 rallied about 90% over the past year or so has been a key feature of the equity market since it rebounded from March 2020 pandemic lows and has helped make market pullbacks shallow and brief. The S&P 500 Index was down 1.7%, while the Nasdaq Composite was 2.3% lower. Business Yahoo Finance 210512 12h58m These companies are jacking up prices because of exploding inflation Some of your favorite consumer brands want more of your money because of surging inflation. Business Reuters 210512 12h56m Alaska Air orders 13 Boeing 737 MAX jets as travel demand rebounds "Alaska expects domestic travel to return to pre-COVID levels by the summer of 2022, which will require more aircraft across Air Group," the company said in a statement. The orders for the 737-9 MAX are part of Alaska Air's purchase options from December, when it had ordered 23 of the MAX airplanes. Alaska Air said the 17 Embraer 175 jets will grow its regional fleet to 111 planes, with deliveries in 2022 and 2023. Business Bloomberg 210512 12h54m Biggest Credit ETF Sees Shorts Soar (Bloomberg) -- ETF traders are increasingly wary of the corporate bond market as inflation anxiety boils over.Short interest in the $41 billion iShares iBoxx $ Investment Grade Corporate Bond exchange-traded fund (ticker LQD) is now 21.5% of shares outstanding, the highest on record, according to data from IHS Markit Ltd.The onslaught of bearish sentiment comes as price pressures threaten to send U.S. long-dated yields higher -- a worry that only intensified after April’s surprise jump in consumer prices. Already LQD investors have been yanking cash out by the billions: the fund has seen $11.3 billion in outflows so far this year, after absorbing nearly $15 billion in 2020.Higher yields puts LQD and funds like it in a particularly vulnerable position, given its duration -- or sensitivity to interest-rate changes -- clocks in at a relatively hefty 10 years. With Treasury yield curves poised to steepen, that should spell trouble for LQD, Academy Securities said.“We could see some pressure on bonds, especially LQD as people are afraid of the rate risk. LQD has a very long duration,” said Peter Tchir, the firm’s head of macro strategy. “The yield risk is greater than the spread risk for me.”LQD has dropped 6% so far in 2021, after rallying 8% last year as the Federal Reserve’s credit market backstop to blunt the pandemic’s impact spurred a rush of issuance and inflows. However, with central bank policy makers insistent that post-lockdown price pressures are transitory, LQD has been selling off alongside Treasury bonds.Even if the inflation anxiety is overblown, there’s better places to find value in the fixed-income market than investment-grade credit, said Seema Shah, chief strategist of Principal Global Investors.“Perhaps some of the fears are overdone if the Fed remains resolutely accommodative even in the face of elevated inflation, as they have indicated,” Shah said. “Overall though, with spreads already so tight and bond yields likely on an upward trajectory given the inflation path, there are other parts of the fixed income market, such as high yield or emerging markets, which will outperform.”(Updates in 6th 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. Business Reuters 210512 12h51m UPDATE 1-Proxy advisor PIRC recommends vote against Chevron CEO Governance advisor Pensions & Investment Research Consultants (PIRC) on Wednesday recommended shareholders of Chevron Corp cast votes against Chief Executive Michael Wirth at the company's upcoming shareholder meeting. PIRC urged opposition to Wirth because of the company's combined board chairman and CEO roles. The No. 2 U.S. oil producer also faces several climate and governance proposals that London-based PIRC said it supports. Howell date : 210512 13h10m05s Business Reuters 210512 13h00m Traders not betting on a quick U.S. market rebound as tech stocks tumble Traders have been placing more bearish bets on equity derivatives in recent days, data showed on Wednesday, indicating less confidence in U.S. stocks rebounding from a sharp sell-off which has particularly hit high-flying tech names. Investors' tendency to look past minor wobbles in stocks as the S&P 500 rallied about 90% over the past year or so has been a key feature of the equity market since it rebounded from March 2020 pandemic lows and has helped make market pullbacks shallow and brief. The S&P 500 Index was down 1.7%, while the Nasdaq Composite was 2.3% lower. Business Yahoo Finance 210512 12h58m These companies are jacking up prices because of exploding inflation Some of your favorite consumer brands want more of your money because of surging inflation. Business Reuters 210512 12h57m Alaska Air orders 13 Boeing 737 MAX jets as travel demand rebounds "Alaska expects domestic travel to return to pre-COVID levels by the summer of 2022, which will require more aircraft across Air Group," the company said in a statement. The orders for the 737-9 MAX are part of Alaska Air's purchase options from December, when it had ordered 23 of the MAX airplanes. Alaska Air said the 17 Embraer 175 jets will grow its regional fleet to 111 planes, with deliveries in 2022 and 2023. Business Bloomberg 210512 12h55m Biggest Credit ETF Sees Shorts Soar (Bloomberg) -- ETF traders are increasingly wary of the corporate bond market as inflation anxiety boils over.Short interest in the $41 billion iShares iBoxx $ Investment Grade Corporate Bond exchange-traded fund (ticker LQD) is now 21.5% of shares outstanding, the highest on record, according to data from IHS Markit Ltd.The onslaught of bearish sentiment comes as price pressures threaten to send U.S. long-dated yields higher -- a worry that only intensified after April’s surprise jump in consumer prices. Already LQD investors have been yanking cash out by the billions: the fund has seen $11.3 billion in outflows so far this year, after absorbing nearly $15 billion in 2020.Higher yields puts LQD and funds like it in a particularly vulnerable position, given its duration -- or sensitivity to interest-rate changes -- clocks in at a relatively hefty 10 years. With Treasury yield curves poised to steepen, that should spell trouble for LQD, Academy Securities said.“We could see some pressure on bonds, especially LQD as people are afraid of the rate risk. LQD has a very long duration,” said Peter Tchir, the firm’s head of macro strategy. “The yield risk is greater than the spread risk for me.”LQD has dropped 6% so far in 2021, after rallying 8% last year as the Federal Reserve’s credit market backstop to blunt the pandemic’s impact spurred a rush of issuance and inflows. However, with central bank policy makers insistent that post-lockdown price pressures are transitory, LQD has been selling off alongside Treasury bonds.Even if the inflation anxiety is overblown, there’s better places to find value in the fixed-income market than investment-grade credit, said Seema Shah, chief strategist of Principal Global Investors.“Perhaps some of the fears are overdone if the Fed remains resolutely accommodative even in the face of elevated inflation, as they have indicated,” Shah said. “Overall though, with spreads already so tight and bond yields likely on an upward trajectory given the inflation path, there are other parts of the fixed income market, such as high yield or emerging markets, which will outperform.”(Updates in 6th 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. Business Reuters 210512 12h52m UPDATE 1-Proxy advisor PIRC recommends vote against Chevron CEO Governance advisor Pensions & Investment Research Consultants (PIRC) on Wednesday recommended shareholders of Chevron Corp cast votes against Chief Executive Michael Wirth at the company's upcoming shareholder meeting. PIRC urged opposition to Wirth because of the company's combined board chairman and CEO roles. The No. 2 U.S. oil producer also faces several climate and governance proposals that London-based PIRC said it supports. Business Yahoo Finance 210512 12h49m $3.2 billion is now available to give some Americans a break on their internet bills Tucked deep inside a recent coronavirus relief bill was $3.2 billion to give some Americans a break on their Internet bills. And as of this week, the Emergency Broadband Benefit Program is officially online. Business Bloomberg 210512 12h41m Muni Sales for New Projects Hit 10-Year High as Economy Revives (Bloomberg) -- U.S. states and cities are turning to the municipal-bond market to raise money for new projects at the fastest pace in at least a decade, a sign of optimism as tax revenue improves with the reviving economy and as federal aid pours in.Localities issued about $65 billion in long-term municipal debt in the first four months of 2021 solely for new projects, a 31% jump from the same period of last year, according to data compiled by Bloomberg. The tally marks the most bond sales for new endeavors, known as new-money issuance, to begin a year since 2010.The borrowing burst speaks to localities’ improving confidence as business activity recovers with the vaccination campaign and as localities ponder how to spend the money they’re getting from the $350 billion of aid in President Joe Biden’s American Rescue Plan.In just two examples of deals for infrastructure projects that are about to hit the market, West Virginia is selling more than $200 million of general-obligation bonds to fund highway, bridge and secondary road construction; and Colorado is set to issue $500 million of certificates of participation for highway and transit projects in rural areas.“Many issuers delayed projects or scaled them back because of the pandemic,” said Peter Block, head of municipal strategy at Ramirez & Co. “We’re seeing a natural increase in new money as the economy picks up.”Sales BoomletLocal officials are seizing on low interest rates and robust demand for municipal debt to borrow for projects or refinance for savings. That’s causing sales boomlets in some parts of the $3.9 trillion state and local bond market -- transportation-related issuance reached a record in the first quarter, surpassing the previous peak in 2008, data compiled by Bloomberg show.Maine Governor Janet Mills, a Democrat, is proposing to sell bonds that will complement her plan to invest the nearly $1 billion the state is set to receive from the American Rescue Plan.Tom Kozlik, head of municipal strategy and credit at Hilltop Securities Inc., estimates that about $650 billion in federal aid will be spread across different municipal sectors, possibly bringing about a “golden age” of opportunities in public finance.“If public finance issuers were on the fence about selling debt this year, they are probably leaning toward doing it,” he said.With muni sales overall expected to increase heading into the next few months, the project boom could extend through 2021.“This year is on track to equal or exceed last year,” Natalie Cohen, founder of National Municipal Research, Inc., said of new-money issuance. “There is some light at the end of the tunnel.”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. Howell date : 210512 12h39m28s Business Bloomberg 210512 12h31m Salad Chain Sweetgreen Is Planning a U.S. IPO This Year (Bloomberg) -- Sweetgreen, the salad restaurant chain popular among office workers, is planning an initial public offering in the U.S., according to people with knowledge of the matter.The Los Angeles-based company is working with Goldman Sachs Group Inc. on a listing that could happen as soon as this year, some of the people said, asking not to be identified because the information is private.A Goldman Sachs representative declined to comment. Sweetgreen representatives didn’t respond to requests for comment on the planned IPO.Founded in 2007, the chain has developed a cult following among bankers, tech workers and others. The company announced this month a partnership and investment from professional tennis player Naomi Osaka.The company raised $156 million from Durable Capital Partners in January, valuing it at $1.78 billion, according to a Sweetgreen spokeswoman. That followed a $150 million funding round in 2019 led by Lone Pine and D1 Capital, according to a statement at the time. Other backers include Fidelity Investments, Live Oak Endeavors, Blue 9 Capital, Big Loud Capital, Reshape Holdings, True Ventures and T. Rowe Price, PitchBook data shows.Started by Georgetown University graduates Jonathan Neman, Nathaniel Ru and Nicolas Jammet, Sweetgreen operates more than 120 restaurants, according to a press release in May.(Sweetgreen corrects investor name in fifth 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. U.S. Reuters 210512 12h20m U.S. administers nearly 264.7 mln doses of COVID-19 vaccines - CDC The United States has administered 264,680,844 doses of COVID-19 vaccines in the country as of Wednesday morning and distributed 337,089,765 doses, the U.S. Centers for Disease Control and Prevention said. Those figures are up from the 263,132,561 vaccine doses the CDC said had gone into arms by May 11 out of 334,081,065 doses delivered. The CDC tally includes two-dose vaccines from Moderna and Pfizer/BioNTech , as well as Johnson & Johnson's one-shot vaccine, as of 6:00 a.m. ET on Wednesday. Business Bloomberg 210512 12h15m Colonial Pipeline Sought Cyber Manager Months Before Hack (Bloomberg) -- The company targeted in the biggest pipeline hack in history began searching for a cyber-security manager two months ago.Colonial Pipeline sought someone with a master’s degree in computer science to develop and maintain “an incident response plan and processes to address potential threats,” according to the company’s website. The ad also was posted on LinkedIn and job-seeking sites.A criminal hack paralyzed North America’s biggest fuel pipeline late last week, choking off almost half of the gasoline and diesel burned on the U.S. East Coast. Gas stations across several states have run dry amid panic buying and soaring retail prices. Nationwide, the average retail price topped $3 a gallon for the first time in more than six years.Three Out of Four Gas Stations Are Dry in Some Southern Cities“The cybersecurity position was not created as a result of the recent ransomware attack,” the company said in an email. “We have several positions open as part of our longer-term growth strategy around talent, as we are constantly recruiting top-tier talent across all functional areas of our business.”Colonial executives set an end-of-day Wednesday deadline for deciding whether it’s time to begin the process of restarting the pipeline, U.S. Energy Secretary Jennifer Granholm said on Tuesday.(Updates with gas price 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. Business Yahoo Finance 210512 12h12m Target has a stealth advantage over most retailers: Goldman Sachs Target's same-day delivery business gets high praise from Goldman Sachs. Here's why. Business Bloomberg 210512 12h10m Traders Ratchet Up Fed-Hike Bets for 2022 on Hot Inflation (Bloomberg) -- Rates traders are boosting bets that the Federal Reserve may be forced to hike interest rates next year, much earlier than policy makers have indicated, after blowout U.S. consumer-price data Wednesday intensified the debate about how hot inflation could run.Eurodollar futures contracts are pricing in more than 80% odds of a quarter-point rate increase by the end of 2022, up from a two-in-three chance at the start of the week. That’s roughly a full year earlier than policy makers have signaled and comes amid growing calls from the likes of former New York Fed President William Dudley, who says the central bank not only needs to raise rates, but should likely do so by much more than investors expect.Treasury yields and market-based expectations also popped higher after the month-over-month inflation reading was the highest since 2009, but the relatively contained magnitude of these moves suggested traders were not yet envisioning runaway inflation for the near term. Breakeven rates up to five years subsequently fell off their New York session highs, while eurodollar futures volumes were back to levels seen at the start of last week.“Inflation fears are not unfounded,” said Shahid Ladha, head of Group-of-10 rates strategy for the Americas at BNP Paribas SA. “Inflation and breakevens should continue to rise. However, in the second half of year, the rate of price gains could trend lower.”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. Howell date : 210512 12h08m52s Business Reuters 210512 12h05m UPDATE 1-U.S. airlines cancel flights to Tel Aviv amid escalating conflict United Airlines, Delta Air Lines , and American Airlines have canceled flights between the United States and Tel Aviv, according to data by flight tracker FlightAware, amid an escalating conflict in Israel. Israel said it killed 16 members of the Hamas armed wing in Gaza in a barrage on Wednesday and Palestinian militants rained rockets into Israel in one of their most intense hostilities in years. Business Bloomberg 210512 12h04m Stock Pullback From Highs Accelerates; Yields Rise: Markets Wrap (Bloomberg) -- U.S. stocks slumped for a third day and bond yields climbed after a report showed inflation rose more than forecast, adding to concern that price pressures will stifle a recovery in the world’s biggest economy.The technology sector continues to lead the retreat in equities, with Apple and Microsoft pacing declines in the Nasdaq 100. Cathie Wood’s ARK Innovation ETF resumed its slide, bringing this year’s loss to about 18%. After closing at a record high on Friday, the benchmark S&P 500 slumped the most since Feb. 25. Energy was the only one of the 11 industry sectors in the green. Treasury yields moved briefly off the highs of the day after a successful 10-year note auction.European stocks closed mostly higher, lifted by optimism about economic re-openings and booming commodities.“The markets have been hovering around all-time highs with a lot of the reopening trade already priced in,” said Mike Loewengart, managing director of investment strategy at E*Trade Financial. “So it’s not out of the question that the outsized inflation read could bring us back down to earth a bit.”The debate over whether inflation will be persistent enough to force the Federal Reserve to tighten policy sooner than current guidance suggests comes as abundant stimulus has powered a rally in global equities, raising concerns valuations had become expensive. Fed Vice Chair Richard Clarida said he was surprised by the rise in consumer prices and “we would not hesitate to act” to bring inflation down to its goals if needed.The consumer price index increased 0.8% from the prior month after a 0.6% gain in March. Excluding the volatile food and energy components, the so-called core CPI rose 0.9% from March.“The CPI data point feeds into a myopic narrative that the U.S. is overheating and the Fed is one step away from tightening,” said Mike Bailey, director of research at FBB Capital Partners. “Bears will feast on this tightening theme in the short term, but my sense is inflation will prove fleeting and markets will revert back to a more bullish view of moderate growth and lower risk of Fed tightening until we get to a full recovery.”Elsewhere, Bitcoin’s reputation as an inflation hedge among advocates of the cryptocurrency appeared to be question after the CPI report. The digital asset slumped as much as 4.4% to around $54,400.Copper and iron ore were on course for new records amid a broadening commodities boom. Oil was steady above $65 per barrel. The biggest U.S. pipeline is still closed in the wake of a cyberattack, leading to acute fuel shortages in some parts of the nation.MLIV’s Question of the Day: How Priced In Is a European Reopening?These are some of the main moves in markets:StocksThe S&P 500 fell 1.7%, more than any closing loss since Feb. 25 as of 2:01 p.m. New York timeThe Nasdaq 100 fell 2.4%, falling for the third straight day, the longest losing streak since May 5The Dow Jones Industrial Average fell 1.4%, falling for the third straight day, the longest losing streak since March 4The MSCI World index fell 1.4%, more than any closing loss since Feb. 26CurrenciesThe Bloomberg Dollar Spot Index rose 0.6%, more than any closing gain since April 30The euro slipped 0.6%, more than any closing loss since April 30The British pound slipped 0.6%, more than any closing loss since April 30The Japanese yen slipped 0.9%, more than any closing loss since March 4BondsThe yield on 10-year Treasuries advanced six basis points, more than any closing gain since March 18Germany’s 10-year yield advanced four basis points, climbing for the sixth straight day, the longest winning streak since Feb. 8Britain’s 10-year yield advanced five basis points, more than any closing gain since March 12CommoditiesWest Texas Intermediate crude rose 1.6%, climbing for the fourth straight day, the longest winning streak since April 15Gold futures fell 0.8% to $1,822 an ounceFor 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. U.S. Reuters 210512 11h58m UPDATE 1-Former U.S. prosecutor named United Auto Workers monitor A former federal prosecutor and special inspector general who oversaw a $700 billion U.S. government bailout fund was named on Wednesday as the independent monitor to oversee the United Auto Workers union. The appointment of Neil Barofsky, now a lawyer at Jenner & Block, was approved by U.S. District Judge David Lawson. In total, 16 people have been convicted in a wide-ranging probe conducted by the office for the U.S. attorney for the Eastern District of Michigan, which last December reached a deal with the union for independent oversight. Business Bloomberg 210512 11h55m Volvo Mulling IPO This Year After Abandoning Geely Merger (Bloomberg) -- Volvo Cars said it’s considering an initial public offering months after calling off earlier plans to merge with Geely Automobile Holdings Ltd., the Chinese manufacturer owned by its parent.The board of the Swedish carmaker has decided to evaluate a possible listing on the Nasdaq Stockholm stock exchange later this year, according to a statement. Bloomberg News reported in March that owner Zhejiang Geely Holding Group Co. was considering an IPO that could value the business at around $20 billion.Volvo’s more than a decade under Chinese control has been a success story. While pandemic disruptions snapped a six-year streak of record sales, demand came roaring back and fueled record deliveries and profit in the second half. Geely has been a supportive owner, helping fund construction of the company’s first-ever U.S. car plant and the investment it will take to go fully electric by the end of the decade.“We have supported the transformation and growth of Volvo Cars for the last 10 years, enabling the company to become a true premium brand with improved profitability,” Eric Li, Geely Holding’s chairman, said in the statement. “Volvo Cars is especially well positioned to deliver continued growth and harness the full potential of electrification and the delivery of safe autonomous drive functions.” Geely Holding would remain a major shareholder of Volvo, which also announced that it has extended the contract of Chief Executive Officer Hakan Samuelsson to the end of next year. He’s led Volvo since 2012, two years after Geely acquired the company from Ford Motor Co. for just $1.8 billion.For all its success boosting Volvo’s value, Geely has struggled to cash in on its investment. It pursued an IPO in 2018 but shelved the idea after investors balked at its proposed valuation of as much as $30 billion, people familiar with the matter said at the time.(Updates with context in the 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. World Reuters 210512 11h54m UPDATE 1-U.S. trade chief says vaccine waiver talks could make drug firms heroes U.S. Trade Representative Katherine Tai said on Wednesday she is pushing for a waiver of COVID-19 vaccine intellectual property rights because the United States and drug makers have "an obligation to help save the world right now." Tai, speaking at a U.S. Senate Finance Committee hearing, said that she views the World Trade Organization talks as a way to remove the intellectual property issue as an obstacle to vaccine production. Several Republican senators criticized Tai for "giving away" U.S. innovations to foreign competitors by supporting the WTO negotiations. Politics Reuters 210512 11h49m Bill to ban TikTok on U.S. government devices passes committee The Senate Homeland Security and Governmental Affairs Committee unanimously passed a bill that would ban U.S. federal workers from downloading the popular app TikTok onto U.S. government devices, Senator Josh Hawley, a bill sponsor, said in a press statement on Wednesday. The U.S. Senate unanimously approved a similar measure in August 2020. TikTok has sought to distance itself from Beijing with mixed success. Howell date : 210512 11h38m15s Business Yahoo Finance Video 210512 11h26m Handshake valued at $1.5B after new funding round Garrett Lord, Handshake CEO joins the Yahoo Finance Live panel to discuss the job market and new grads and the company being valued at $1.5 billion after new funding round. Health Reuters 210512 11h24m UPDATE 1-Pfizer COVID-19 vaccine works for adolescents, U.S. CDC panel told The United States should begin vaccinating adolescents with the COVID-19 vaccine from Pfizer and BioNTech, advisers to the U.S. Centers for Disease Control and Prevention (CDC) were told on Wednesday, ahead of a vote awaited by states ready to start inoculating younger people. The U.S. Food and Drug Administration on Monday authorized the vaccine for children aged 12 to 15, offering relief to parents eager to get their children back to schools and summer camps. The Advisory Committee on Immunization Practices (ACIP) provides recommendations to the CDC that many states will consider as they begin administering the two-shot vaccine to adolescents this week. Business Bloomberg 210512 11h23m Stocks Drop the Most Since February; Yields Jump: Markets Wrap (Bloomberg) -- U.S. stocks slumped for a third day and bonds yields climbed after a report showed inflation rose more than forecast, adding to concern that price pressures will stifle a recovery in the world’s biggest economy.The technology sector continues to lead the retreat in equities, with Apple and Microsoft pacing declines in the Nasdaq 100. Cathie Wood’s ARK Innovation ETF resumed its slide, bringing this year’s loss to about 18%. After closing at a record high on Friday, the benchmark S&P 500 slumped the most since Feb. 25. Energy was the only one of the 11 industry sectors in the green. Treasury yields moved briefly off the highs of the day after a successful 10-year note auction.“The CPI data point feeds into a myopic narrative that the U.S. is overheating and the Fed is one step away from tightening,” said Mike Bailey, director of research at FBB Capital Partners. “Bears will feast on this tightening theme in the short term, but my sense is inflation will prove fleeting and markets will revert back to a more bullish view of moderate growth and lower risk of Fed tightening until we get to a full recovery.”European stocks closed mostly higher, lifted by optimism about economic re-openings and booming commodities.The debate over whether inflation will be persistent enough to force the Federal Reserve to tighten policy sooner than current guidance suggests comes as abundant stimulus has powered a rally in global equities, raising concerns valuations had become expensive. Fed Vice Chair Richard Clarida says he was surprised by the rise in consumer prices and “we would not hesitate to act” to bring inflation down to its goals if needed.The consumer price index increased 0.8% from the prior month after a 0.6% gain in March. Excluding the volatile food and energy components, the so-called core CPI rose 0.9% from March.“With inflation numbers coming in even higher than expected -- even taking into account base effects -- it’s going to have the market re-evaluating its view on rates,” said Chris Zaccarelli, chief investment officer at Independent Advisor Alliance. “The bond market has been surprisingly sanguine about rising inflation pressures and eventually it’s going to have to acknowledge that current rates are too low.”Copper and iron ore were on course for new records amid a broadening commodities boom. Oil was steady above $65 per barrel. The biggest U.S. pipeline is still closed in the wake of a cyberattack, leading to acute fuel shortages in some parts of the nation.MLIV’s Question of the Day: How Priced In Is a European Reopening?These are some of the main moves in markets:StocksThe S&P 500 fell 1.6%, falling for the third straight day, the longest losing streak since March 4 as of 1:20 p.m. New York timeThe Nasdaq 100 fell 2.3%, falling for the third straight day, the longest losing streak since May 5The Dow Jones Industrial Average fell 1.3%, falling for the third straight day, the longest losing streak since March 4The MSCI World index fell 1.4%, more than any closing loss since March 4CurrenciesThe Bloomberg Dollar Spot Index rose 0.6%, more than any closing gain since April 30The euro slipped 0.6%, more than any closing loss since April 30The British pound slipped 0.6%, more than any closing loss since April 30The Japanese yen slipped 0.9%, more than any closing loss since March 4BondsThe yield on 10-year Treasuries advanced seven basis points, more than any closing gain since March 12Germany’s 10-year yield advanced four basis points, climbing for the sixth straight day, the longest winning streak since Feb. 8Britain’s 10-year yield advanced five basis points, more than any closing gain since March 12CommoditiesWest Texas Intermediate crude rose 1.5%, climbing for the fourth straight day, the longest winning streak since April 15Gold futures fell 0.9% to $1,820 an ounceFor 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. Business Bloomberg 210512 11h15m DraftKings Shunned Even as Wall Street Heavyweights Scream Buy (Bloomberg) -- Investors are shunning DraftKings Inc. despite signals from some of Wall Street’s most prominent names to buy the shares of the former high-flying online gaming company.Shares of the seemingly ubiquitous betting site have slumped about 40% since their March record amid a dearth of top sporting events and after the company reported wider than expected losses. The selloff has widened the gap between its stock price and the average analyst target by the most ever, according to data compiled by Bloomberg.And while that has led to Goldman Sachs recommending investors buy the dip and Cathie Wood’s ARK Investment Management lapping up shares of the Boston-based company, most investors aren’t budging. The stock slumped as much as 5.9% to $41.44 on Wednesday, the eighth decline in the past 10 trading sessions. After ending last year up more than 300%, the shares have lapsed into oversold territory for the first time since it went public via a reverse merger in April 2020.To be sure, the U.S. stock market has also been in a tailspin amid growing concerns of rising inflation with the S&P 500 Index sinking 1.4% Wednesday.DraftKings has been caught under pressure alongside high-flying companies that have yet to turn a profit like Uber Technologies Inc. and Teladoc Health Inc. as inflation fears whipsaw the broader market. While company posted revenue that beat analyst expectations, the widening losses drew ire from analysts and investors.“That kind of result just isn’t enough to get it done in this marketplace,” Needham analyst Bernie McTernan said by telephone. “This is going to be quite the opportunity for people to step in now” though catalysts like a March investor day and some state legalizations of online gambling are in the rear-view mirror.Still, Goldman’s Stephen Grambling, who’s among the stock’s 20 buy-rated analysts, said investors should “buy the dip” as the company’s strong revenue outlook showcased the its momentum. The market should return its focus to improving fundamentals for the company and the broader sports betting market, the analyst argued.The latest drop for DraftKings mirrors the slide for peer Penn National Gaming Inc. which also released results that were stronger than analysts expected last week.“DraftKings sticks out like a sore thumb in terms of way underperforming with a pretty decent print,” Needham’s McTernan said. “With Penn it was a beat-and-raise quarter where the regional casino business is just on fire and I think you’ll have the best of both worlds with Penn in the reopening and leveraging the Barstool brand.”The latest drop for DraftKings has pushed it to the lowest level in six months, while Penn National’s 6.1% drop on Wednesday has it on pace to close at the lowest since Dec. 11.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. Business Reuters 210512 11h05m UPDATE 1-U.S. and Mexico target GM labor 'violations,' testing new trade deal The United States is testing powers to protect workers under the trade deal replacing NAFTA and asked Mexico on Wednesday to probe alleged abuses at a General Motors Co factory, a move that may put tariffs on some of the firm's profitable pickups. U.S. Trade Representative Katherine Tai said her office and the Department of Labor received "information appearing to indicate serious violations" of worker rights in an April union contract vote at GM's Silao factory in central Mexico. Howell date : 210512 11h07m38s Politics Yahoo Finance Video 210512 10h58m House Committee considers the Climate Risk Disclosure Act
 Yahoo Finance’s Jessica Smith joins the Yahoo Finance Live panel with her interview with Rep. Sean Casten (D) Illinois to discuss how the House Committee is considering the Climate Risk Disclosure Act
. U.S. Bloomberg 210512 10h55m Gasoline Prices Hit $3 as Shortages Grow on Pipeline Outage (Bloomberg) -- Fuel shortages are spreading across the U.S. East as panicked motorists top up their tanks five days after hackers knocked out the nation’s biggest gasoline pipeline.At least three distribution hubs in Pennsylvania have run dry and long lines of tanker trucks are forming at terminals in New Jersey due to the Colonial Pipeline outage. Meanwhile, more than three-quarters of filling stations in some cities in South Carolina, North Carolina and Florida are without gasoline. And in the Washington, D.C., metro area, cars are queuing along roads as they wait to to enter stations.U.S. average fuel prices topped $3 a gallon for the first time in more than six years and the premium for wholesale gasoline in the New York area reached its widest in three months. The gains may add to broader inflationary pressures as commodity prices from timber to copper also surge.Colonial’s system shut May 7. The pipeline’s operating company said it expects to make a decision Wednesday on whether it’s time to begin the process of restarting its network of pipelines that transport gasoline, diesel and jet fuel from the Houston area to North Carolina and up the East Coast.The White House has so far announced several measures to blunt the growing crisis, including fuel waivers and additional weight limits for some trucks. It is also taking initial steps that could permit foreign tankers to transport gasoline and diesel to East Coast ports.“Colonial has announced that they’re working toward full restoration by the end of this week, but we are not taking any chances,” Transportation Secretary Pete Buttigieg said at a daily White House briefing on Wednesday. “Our top priority now is getting fuel to communities that need it, and we will continue doing everything that we can to meet that goal in the coming days.”The Biden administration will also give a House briefing on the cyberattack at 6 p.m. Washington time.Colonial has only managed to restart a small segment of the pipeline as a stopgap measure. Even when the pipeline is restored to full service, it will take about two weeks for gasoline stored in Houston to reach East Coast filling stations, according to the most recent schedule sent to shippers. For diesel and jet fuel, the transit time is even longer -- about 19 days -- because they are heavier and move more slowly.Colonial connects Gulf Coast refineries to population centers from Atlanta to New York and beyond. Each day, it normally ships about 2.5 million barrels (105 million gallons), an amount that exceeds the entire oil consumption of Germany.As the outage drags on, traders are booking larger vessels that can send more fuel from the Middle East and Asia west to destinations such as the U.S. East Coast, according to shipbrokers and fixtures data compiled by Bloomberg.Two of the nation’s largest truck-stop owners --- Love’s Travel Stops & Country Stores Inc. and TravelCenters of America Inc. -- confirmed that fuel is scarce in some states. Both companies said they’re taking extraordinary measures to replenish tanks.The Biden administration issued an order on Sunday extending the amount of time truck drivers can spend behind the wheel when transporting fuel across 17 states and the District of Columbia. On Tuesday evening, the Transportation Department said 10 states could allow heavier-than-normal truck loads of gasoline and other fuels.Federal transportation regulators also took the first step toward waiving the 101-year-old Jones Act that prohibits foreign-flagged and -staffed ships from hauling products from one U.S. port to another.”The Department of Homeland Security is standing ready to review any requests for a temporary waiver of the Jones Act from companies that demonstrate that there’s not sufficient capacity on Jones Act-qualified vessels to carry specific shipments of fuel in and around the region,” Buttigieg said on Wednesday. He declined to speak to “any specific waiver requests going on right now.”Meanwhile, most Gulf Coast refineries are expected to trim output amid expectations that supplies will begin backing up in the nation’s oil-refining nexus. Much of the cuts may be shouldered by refineries from Port Arthur, Texas, and eastward. At least one refinery each in Texas and Louisiana already reduced production.The Environmental Protection Agency moved to allow the sale of gasoline that doesn’t satisfy requirements meant to help combat smog in certain areas. An initial order allowed the sale of conventional gasoline in areas where reformulated gasoline is required across Maryland, Pennsylvania, Virginia and the District of Columbia. A second order went further by waiving low-volatility requirements governing conventional and reformulated gasoline in those areas, as well as nine other states.What BloombergNEF Is SayingBloombergNEF expects additional supply this week to come primarily from storage inventories, increased East Coast refinery run, other pipelines and shipments from Canada. Cargoes from Europe could also help alleviate lingering shortages next week.-- Anastacia Dialynas, BNEF analystRead the full report here.Gasoline isn’t the only oil-derived product under threat. In an effort to bolster jet-fuel inventories, Southwest Airlines Co. has begun flying supplies to Nashville, Tennessee, and other cities. So far, no Southwest flights have been affected by the pipeline closure; rather, the airline said it’s “actively managing” fuel stockpiles. United Airlines Holdings Inc. loaded extra fuel on flights to preserve local supplies in places like Baltimore and Greenville-Spartanburg, South Carolina.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. Business Bloomberg 210512 10h53m U.S. Agrees to Remove Xiaomi From Blacklist After Lawsuit (Bloomberg) -- Xiaomi Corp. and the U.S. government have reached an agreement to set aside a Trump administration blacklisting that could have restricted American investment in the Chinese smartphone maker.The Chinese smartphone giant had sued the government earlier this year, after the U.S. Defense Department under former President Donald Trump issued an order designating the firm as a Communist Chinese Military Company, which would have led to a de-listing from U.S. exchanges and deletion from global benchmark indexes. The U.S. Defense Department has now agreed that a final order vacating the designation “would be appropriate,” according to a filing to the U.S. courts Tuesday.Xiaomi declined to comment. Chinese Foreign Ministry spokeswoman Hua Chunying said at a regular press briefing in Beijing she wasn’t aware of any deal the firm may have reached with the U.S.“The Parties have agreed upon a path forward that would resolve this litigation without the need for contested briefing,” according to the filing, which didn’t state whether the agreement included any conditions for removal. The parties involved are negotiating over specific terms and will file a separate joint proposal before May 20.The U.S. government remains concerned about American investments in companies linked to the Chinese military, said Emily Horne, a spokeswoman for the White House National Security Council.“The Biden Administration is deeply concerned about potential U.S. investments in companies linked to the Chinese military and fully committed to keeping up pressure on such companies,” she said in a statement.Shares of Xiaomi rallied as much as 6.7% in Hong Kong trading Wednesday, while the spread on its 2030 dollar note narrowed 10 basis points to 177, the smallest since January.What Bloomberg Intelligence Says:Market sentiment around Xiaomi could improve on an agreement with the U.S. to remove it from a blacklist of companies restricted from American investment. Its designation as a Communist Chinese Military Company by the U.S. early this year had no bearing on fundamentals, but preceded a 15% drop in Xiaomi’s share price since it was announced, even as mainland investors increased ownership by 27%.-- Matthew Kanterman and Nathan Naidu, analystsClick here for the researchXiaomi, which makes robot vacuum cleaners, electric bikes and wearable devices alongside smartphones, had been an unexpected target for the Trump administration. Co-founded by billionaire entrepreneur Lei Jun more than 10 years ago, with U.S. chipmaker Qualcomm Inc. as one of the earliest investors, the company has insisted it’s not owned or controlled by the Chinese military.A U.S. court in March sided with Xiaomi in the lawsuit and placed a temporary halt on the ban. U.S. District Judge Rudolph Contreras said at the time Xiaomi was likely to win a full reversal of the ban as the litigation unfolds and issued an initial injunction to prevent the company from suffering “irreparable harm.”Read more: Xiaomi Jumps After U.S. Trading Ban on Phone Maker Is HaltedThe agreement marks a rare victory for China’s technology giants caught in the crosshairs of the U.S. government, as the two nations clashed over issues ranging from trade to human rights and Hong Kong’s rule. Trump had signed an order in November barring American investment in Chinese firms owned or controlled by the military in a bid to pressure Beijing over what the U.S. has described as abusive business practices. The order against Xiaomi, alongside a handful of other Chinese firms, was issued in the waning days of his administration.Trump had also gone after Chinese behemoths including ByteDance Ltd., owner of the hit video app TikTok, and Tencent Holdings Ltd., which owns the WeChat super app. Huawei Technologies Co. was the hardest hit, after it was barred from buying American-made components and shut out of infrastructure projects around the world.There are signs the Biden administration intends to keep up the pressure on China, even as the U.S. backs away from the blacklisting of Xiaomi. It this week extended a 2019 executive order barring U.S. companies from using telecommunications equipment made by firms like Huawei that it accuses of posing a national security risk. Meanwhile, Congress is moving with increasing urgency on bipartisan legislation to confront China and bolster U.S. competitiveness in technology and critical manufacturing.Read more: Schumer, GOP to Test Bipartisan Possibility With China Bill(Updates with White House NSC comment beginning in fifth 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. Business Yahoo Finance 210512 10h51m Stock market news live updates: Wall Street pinned in red with investors spooked by inflation Inflation fears are dogging Wall Street at a time when the U.S. rebound is picking up speed. Business Yahoo Finance 210512 10h47m Wendy's new breakfast menu fires up same-store sales Wendy's light its up in the first quarter. Here's why. Business Reuters 210512 10h43m E-commerce firm Global-e valued at nearly $3.6 billion in Nasdaq debut Shares of Global-e Online Ltd rose as much as 1% in their Nasdaq debut on Wednesday, giving the cross-border e-commerce platform a market capitalization of nearly $3.6 billion. The Israel-based company's stock opened at $24.25, down from the initial public offering (IPO) price of $25 per share, but later recovered to trade higher. Its customers include Anastasia Beverly Hills, Marc Jacobs and Pepe Jeans. Business Bloomberg 210512 10h40m Volvo Considering IPO Later This Year on Stockholm Exchange (Bloomberg) -- Volvo Cars said it’s considering an initial public offering months after calling off earlier plans to merge with Geely Automobile Holdings Ltd., the Chinese manufacturer owned by its parent.The board of the Swedish carmaker has decided to evaluate a possible listing on the Nasdaq Stockholm stock exchange later this year, according to a statement. Bloomberg News reported in March that owner Zhejiang Geely Holding Group Co. was considering an IPO that could value the business at around $20 billion.“We have supported the transformation and growth of Volvo Cars for the last 10 years, enabling the company to become a true premium brand with improved profitability,” Eric Li, Geely Holding’s chairman, said in the statement. “Volvo Cars is especially well positioned to deliver continued growth and harness the full potential of electrification and the delivery of safe autonomous drive functions.Geely Holding would remain a major shareholder of Volvo, which also announced that it has extended the contract of Chief Executive Officer Hakan Samuelsson to the end of next year.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. Howell date : 210512 10h37m02s Business Bloomberg 210512 10h22m Options Traders Pile Into Leveraged Bet Against Chip Stocks (Bloomberg) -- As chipmakers head for their worst month since the pandemic outbreak, options traders are betting the selloff has further to go.The bearishness was evident in the Direxion Daily Semiconductors Bear 3x Shares (SOXS), an exchange-traded fund that pays three times the inverse return of the Philadelphia Semiconductor Index. As the benchmark tumbled as much as 3.2% Tuesday, call options on the ETF, which amount to wagers against chip stocks, saw volume exploding to a record 164,000 contracts.Whether they’re direct bets or hedges against existing positions, it’s hard to tell. What’s clear is the souring sentiment toward an industry that’s suffering from production constraints. Hedge funds, for instance, have been selling chip stocks all year, cutting their exposure to the lowest level since early 2020, prime broker data compiled by Morgan Stanley show.“We continue to see investors positioning for further volatility in the sector in the days/weeks ahead,” said Christopher Jacobson, a strategist at Susquehanna International Group. The outsize call volume in the SOXS “has been particularly notable.”The Philadelphia Semiconductor Index fell about 4% Wednesday, extending its loss for May to 8% -- on course for the biggest monthly decline since March 2020. Meanwhile, SOXS has worked for bears, jumping 26% this week.(Updates prices.)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. Business Yahoo Finance 210512 10h18m Federal Reserve unmoved by single data points as inflation tilts higher Federal Reserve officials are reiterating that single data points will not sway the central bank’s patience on its easy money policies. Business Yahoo Finance Video 210512 10h16m DoubleLine Portfolio Manager breaks down inflation concerns DoubleLine Portfolio Manager Vitaliy Liberman joins Yahoo Finance’s Julia La Roche to discuss housing, mortgage rates and infrastructure. Business Bloomberg 210512 10h14m U.S. Lumber Importers Drive Buying Mania for European Wood (Bloomberg) -- Facing skyrocketing lumber prices at home, U.S. importers are driving competition for European wood, and winning.The frenzy comes on the heels of record American forest-products imports from Europe in 2020, when North American demand soared and caught sawmills off guard with low inventories. Lumber prices have reached new peaks on a near daily basis in recent weeks, quadrupling from just a year ago. The unprecedented rally has been spurred by low borrowing rates, an increased appetite for larger homes, and a frenzy of do-it-yourself renovations during the pandemic.Unrelenting building demand means U.S. sawmills have been unable to catch up, causing suppliers to look to Europe for a reprieve as it is one of the few parts of the globe with a surplus due to a beetle infestation that killed large swaths of trees that must now be harvested. Voracious U.S. demand means beetle-killed wood in Europe could sell faster than expected, though international shipping and U.S. trucking constraints limit supply chain capabilities.“The other markets are getting pulled up by the U.S.,” said Geoff Berwick, vice president of business development at Atlantic Forest Products.Berwick has been importing lumber from Europe since 1999 and his job has never been easier, he said. Customers tell him: “Get me covered and let me know what it’s going to cost.” Normally, prices are negotiated.The buying power of lumber importers in the U.S. is strengthened by home builders’ willingness to pay up, as project costs rise by the hour on some days. The cost of lumber for the average U.S. house has increased by nearly $36,000 over the last year, according to the National Association of Home Builders.The U.S. continues to buy the biggest share of its foreign forest products from Canada, but imports from the European Union reached an all-time high in 2020, nearly tripling 2019’s amount. The biggest jump from European countries came from Sweden, which rose a dizzying 1,300%. Imports from Europe remained strong in the first three months of 2021, up 37% from the same period a year ago, USDA Foreign Agricultural Service data show.“European producers will always look for the best markets. Right now that’s still the U.S.,” said Thomas Mende, chief executive officer of Binderholz Timber Inc. in Georgia, the U.S. branch of Binderholz GmbH in Austria. “The Chinese have been more aggressive and are willing to pay higher prices, so are the Indian buyers.”These days when Binderholz has wood available, it’s often sold within a minutes, Mende said.Insane DemandEven with “insane” Chinese demand for European lumber, the strength of U.S. buying is the largest factor supporting prices, said Hans-Joachim Hormel, the head of Baden-Wuerttemberg State Forest lumber sales in Germany. U.S. buyers have lower expectations for quality, so the damage and discolorations in lumber from beetle-infested forests make it ideal for export stateside, Hormel said.BPWood, a lumber trading house based in one of the main North American producing regions of British Columbia, has increased its European imports tenfold compared to a typical month last fall, according to Chief Executive Officer Paul Bouchard.Still, deliveries may come with a one- to two-month lag given robust demand in the U.S. “It’s a rowdy, rock ‘n’ roll surreal market right now,” Bouchard said.U.S. lumber futures fell for a third straight day Wednesday, trading more than $200 below Monday’s record high of $1,733.50 per 1,000 board feet. Still, traders are reluctant to say the market has reached its peak due to the lack of lumber reaching customers and inability of mills to ship product quickly amid a trucking shortage.“Customers and distributors clamored for material to fill in voids or meet obligations, and the mills struggled to ship existing orders,” said William Giguere, who buys and sells eastern spruce with mills for Sherwood Lumber in Massachusetts, in a note on Wednesday.(Updates with futures, trader’s comment in final two 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. Business Reuters 210512 10h11m TREASURIES-U.S. yields climb as consumer prices jump The Labor Department said the consumer price index surged 0.8% in April after rising 0.6% in the prior month. Expectations called for overall CPI to rise 0.2% and the core reading to climb 0.3%. The yield on 10-year Treasury notes was up 5.9 basis points to 1.683%. Business Bloomberg 210512 10h10m Bill Ackman Says He’s Built a Stake in Domino’s Pizza, Owns Roughly 6% (Bloomberg) -- Bill Ackman has taken a stake worth almost $1 billion in Domino’s Pizza Inc., adding another big-name consumer company to his portfolio, and said his blank-check firm is nearing a separate deal to take an “iconic” brand public in the coming weeks.Ackman’s Pershing Square Capital Management owns a little under 6% of the pizza chain’s shares, he said Wednesday at a conference. He said he bought into Domino’s when the shares dipped to roughly $330, and after selling out of Starbucks Corp. following a run-up in the coffee company’s stock.Domino’s becomes the latest restaurant chain that Pershing Square has invested in, following stakes in such names as Chipotle Mexican Grill Inc., McDonald’s Corp. and Burger King-owner Restaurant Brands International Inc.“We like the restaurant industry. Interestingly, we’ve never lost money investing in a restaurant company,” Ackman said during the Wall Street Journal’s Future of Everything conference. “I think we’ve never not made a lot of money.”Pizza restaurants have largely benefited over the past year during Covid-19 lockdowns as consumers flocked to delivery and takeout meals. Ackman said he was drawn to Domino’s in particular because the company owns its own delivery infrastructure, which means it doesn’t need to rely on services like DoorDash Inc. or Uber Eats.“That is an important competitive advantage in a world where you want to deliver pizza for $7.99. It’s hard to do that with a delivery service taking a massive cut of the proceeds,” Ackman said. Domino’s was “first and best in terms of delivery technology.”The billionaire investor, who is known for waging high-profile boardroom battles at companies like Canadian Pacific Railway Ltd. and Automatic Data Processing Inc., said the chances of him doing the same at Domino’s are very low.Domino’s shares rose as much as 6% before paring the gains. They were trading at $428.40 as of 11:39 a.m. in New York, up 1.4%, giving the company a market value of $16.6 billion. Domino’s rose 31% last year, beating the S&P 500 Index’s gain.As dine-in restrictions start to ease across the country, delivery-heavy chains like pizzerias had largely been expected to see their strong sales start to taper off. But that hasn’t happened yet. Domino’s revenue of $983.7 million last quarter was up 13% from a year prior, even when lapping last year’s early pandemic bump.Bear CaseAckman acknowledged the bear case for Domino’s is that it has benefited from the restriction placed on restaurants for dine-in service, and that there’s more competition for delivery. He said he didn’t believe that was the case.“Ultimately, our view was actually a lot of negative during the Covid environment. There weren’t football games where you invited over 12 of your buddies and ordered Domino’s. There weren’t college campuses in session,” he said. “Our view is there will be continued growth in that business.”A spokesperson for Domino’s didn’t immediately reply to a request for comment.Ackman also said he was “cautiously optimistic” his blank-check company, Pershing Square Tontine Holdings Ltd., could be close to announcing a deal to take a company public in the coming weeks. He said he has been in “deep discussions” since early November with a potential target, and while he hoped to have announced a deal by the end of the first quarter, he said he was getting close.He said he would have an announcement in weeks, without disclosing any other details. “It was sufficiently attractive and interesting that it was worth devoting six months of our energy to,” Ackman said.(Updates with comments and additional details throughout)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. Howell date : 210512 10h06m25s Business Yahoo Finance Video 210512 09h58m United Wholesale Mortgage CEO breaks down Q1 earnings results United Wholesale Mortgage reported first quarter earnings as home prices surge. United Wholesale Mortgage CEO Mat Ishbia joins Yahoo Finance Live to discuss. Business Bloomberg 210512 09h57m Gold Slumps After U.S. Inflation Comes in Higher Than Expected (Bloomberg) -- Gold fell, pressured by gains in bond yields and the dollar after consumer price data showed the U.S. experienced higher-than-expected inflation in April.CPI data showed prices grew 0.8% from a month earlier, four times the median analyst estimate and the highest since 2009, intensifying the already-heated debate about how long inflationary pressures will last. Treasury yields and the greenback gained on the news, while U.S. equities declined. Rising yields reduce non-interest-bearing bullion’s appeal, and a stronger dollar hurts the precious metal as it’s priced in the greenback.Markets were already concerned about rising inflation amid surging commodity prices, which sparked a sell-off in global equities on Tuesday. Higher prices could prompt the Federal Reserve to raise rates earlier than expected, hurting certain stocks as well as gold.“Gold is approximately 50% correlated with Treasuries, so it gets hit as interest rates rise. On top of that, the dollar is rallying on higher U.S. rates,” said Jay Hatfield, president of Infrastructure Capital Management. “The stock market dipping on the inflation data showed that investors fear that the Fed may need to tighten soon.”Policy makers at the central bank have been unified in supporting the case for low interest rates. “The outlook is bright, but risks remain, and we are far from our goals,” Governor Lael Brainard told a virtual event Tuesday. Cleveland Fed President Loretta Mester and James Bullard of St. Louis voiced similarly dovish views.The CPI data comes amid concerns the economic recovery may not be proceeding as hoped. Gold rose to the highest in three months earlier this week after a report Friday showed a surprise slowdown in U.S. job growth, supporting the case for continued economic stimulus.Spot gold retreated as much as 0.9% to $1,820.86 an ounce after the news, before trading at $1,823.49 at 11:44 a.m. in New York. Prices hit $1,845.51 on Monday, the highest since Feb. 11. Silver, platinum and palladium fell. The Bloomberg Dollar Spot Index strengthened 0.6% though remained near the lowest since early January.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. Business Bloomberg 210512 09h55m Scooter Startup Bird to Merge With SPAC at $2.3 Billion Value (Bloomberg) -- Bird Rides Inc. will go public by merging with a blank-check company, securing a new source of capital after venture capitalists largely lost interest in money-losing scooter rental startups.A special purpose acquisition company called Switchback II Corp. will take Bird public and provide as much as $428 million in funding to the business. The deal has an enterprise value of about $2.3 billion, the companies said in a statement Wednesday.The transaction includes private funding from Fidelity Investments, which had previously backed Bird, as well as a credit facility from other firms.A former Uber Technologies Inc. executive, Travis VanderZanden, helped start Bird in 2017. It dropped electric scooters onto the sidewalks of major cities and let customers remotely unlock and rent them using an app. The model was widely copied, including by Uber, and turned Bird into one of the fastest startups to reach a $1 billion valuation.It took only a few years for the scooter fad to fade. Bird and its closest competitor, Lime, cut staff and dialed back operations. Uber also retreated. The coronavirus pandemic dealt a further blow when people curbed travel and fled the city centers that scooter companies occupy.SPACs provide a path to fundraising and the public markets seen as more friendly to cash-burning companies. Last year was by far the biggest for such deals, which have slowed in 2021. Bloomberg first reported in November that Bird was in early-stage talks to merge with a SPAC.Switchback II listed in January and at first indicated it would seek to combine with an energy company. In a statement, Bird highlighted its green-energy bonafides and said it would introduce additional vehicle options, such as bikes, in a bid to reduce use of gas cars.“We plan to scale our platform to provide our low carbon transportation services to more people in more cities around the world,” said Jasmine Wallsmith, a spokeswoman for Bird.The backing from Fidelity represents an apparent reversal for the investment firm. In December, Business Insider reported that Fidelity was looking to unload some Bird shares at a loss.(Updates with comment from Bird in the 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. Business Bloomberg 210512 09h54m U.S. Consumer Prices Jump Most Since 2009, Outpacing Estimates (Bloomberg) -- Discover what’s driving the global economy and what it means for policy makers, businesses, investors and you with The New Economy Daily. Sign up here.U.S. consumer prices climbed in April by the most since 2009, topping forecasts and intensifying the already-heated debate about how long inflationary pressures will last.The consumer price index increased 0.8% from the prior month, reflecting gains in nearly every major category and a sign burgeoning demand is giving companies latitude to pass on higher costs. Excluding the volatile food and energy components, the so-called core CPI rose 0.9% from March, the most since 1982, according to Labor Department data Wednesday.The gain in the overall CPI was twice as much as the highest projection in a Bloomberg survey of economists. Similar to last week’s monthly jobs report, forecasters are struggling to get a handle on the rapidly reopening economy.The report showed sharp increases in prices for motor vehicles, transportation services and hotel stays as businesses hardest-hit by the pandemic reopen more broadly and vaccinated Americans resume social activities and travel.“Transitory pandemic influences clearly contributed to the surprise but there’s residual firmness in core inflation that’s hard to ignore,” said Michael Gapen, chief U.S. economist at Barclays Plc. Aside from the reopening effect, “there was still some residual firmness that suggests risks around inflation in the near term are still skewed to the upside.”Treasury yields rose and bond-market gauges of future price pressures jumped to multiyear highs after the report, while short-end interest rate pricing showed increased odds for a Federal Reserve hike as early as late-2022. The dollar rose with yields, while U.S. stocks fell.The annual CPI figure surged to 4.2%, the most since 2008 though a figure distorted by the comparison to the pandemic-depressed index in April 2020. This phenomenon -- known as the base effect -- will skew the May figure as well, likely muddling the ongoing inflation debate.At the same time, annualized inflation over the past three and six months has shown a clear acceleration.While Fed officials and economists acknowledge the temporary boost, it’s unclear whether a more durable pickup in inflationary pressures is underway against a backdrop of soaring commodities costs, trillions of dollars in government economic stimulus and incipient signs of higher labor costs.“I was surprised,” Fed Vice Chairman Richard Clarida said after the report. “We have pent-up demand in the economy. It may take some time for supply to rise up to demand.”The core CPI measure, which was also biased higher by the base effect, rose 3% from 12 months ago. That was the largest since 1996. For the last year the annual core inflation metric had held below 2%.Wednesday’s report offers insight into bubbling price pressures across parts of the economy. Wages have shown signs of picking up, and supply chain challenges have elongated delivery times and driven materials prices higher.While challenging for producers, swelling consumer demand has also given firms more confidence that they will be able to pass along some of the new costs. If sustained, the production bottlenecks could pose a risk of an acceleration in consumer inflation.Fed Chair Jerome Powell has said the upward pressure on prices from the rebound in spending and supply bottlenecks will have only a “transitory” impact on inflation, but many disagree. Bond market expectations for the pace of consumer price inflation over the next five years surged earlier this week to its highest level since 2006.Reopening EffectThe Labor Department’s data showed a 10% surge in the cost of used vehicles that accounted for more than a third of the increase in the overall CPI. New-vehicle prices also picked up.Shelter costs, which make up a third of the overall CPI, jumped by the most in two years as rents and hotel stays advanced. Prices at hotels and motels increased by the most on record, while airfares also posted the biggest gain on record -- a reflection of a broader reopening of the economy.Transportation services, which includes auto rental, car insurance and public transportation, showed the largest increase since 1975.The price data may complicate President Joe Biden’s efforts to push through a multi-trillion dollar infrastructure-spending package. Republican lawmakers have said more fiscal spending threatens to push up inflation.(Updates with latest markets. A previous version corrected last chart in story to show change in admissions prices was for all events)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. World Reuters 210512 09h52m UPDATE 1-Remittances to developing nations resilient in 2020 -World Bank Remittances to low and middle-income countries from citizens working abroad held up unexpectedly well in 2020, outstripping combined foreign direct investments and overseas development aid, a World Bank report showed on Wednesday. They fell just 1.6% to $540 billion, the report said, supported by fiscal stimulus in countries hosting migrant workers, a shift in flows from cash to digital and, with fewer people travelling due to the coronavirus pandemic, more money sent via formal instead of in-person channels. A year ago, the Bank envisaged a fall in migrant wages and employment overseas and forecast a drop of around 20% in what has become an increasingly vital source of funds as governments and families in poorer countries have struggled to bear the pandemic's financial cost. Business Yahoo Finance 210512 09h46m 3 things that saw highest price increases this month Prices for used cars and trucks jumped 10.0% in April, while airfares rose 10.2%. U.S. Bloomberg 210512 09h43m Gasoline Prices Hit $3 as Shortages Grow on Pipeline Outage (Bloomberg) -- More than three-quarters of filling stations in some southern U.S. cities have run out of gasoline as panicked motorists race to top up with the Colonial Pipeline still out of action due to a cyberattack.Locations in South Carolina, Florida and North Carolina are among the worst affected, according to data from retail tracker GasBuddy. Shortages are also spreading to the Washington, D.C., metro area, with cars queuing along roads as they wait to to enter stations.U.S. average gasoline prices topped $3 a gallon for the first time in more than six years amid the growing shortages of fuel. The premium for wholesale gasoline in the New York area reached its widest in three months. The gains may add to broader inflationary pressures as commodity prices from timber to copper also surge.Colonial’s system, the most important conduit for distributing gasoline, diesel and jet fuel in the U.S., shut May 7. The pipeline’s operating company said it expects to make a decision Wednesday on whether to restart flows of oil products.The White House has announced several measures to blunt the growing crisis including lifting some environmental regulations governing the sale of gasoline and considering the use of foreign ships. The Biden administration will give a House briefing on the cyberattack at 6 p.m. Washington time.“This is something that demands really serious federal attention,” Florida Governor Ron DeSantis said Tuesday, prior to declaring a state of emergency. “The U.S. government needs to be involved, they need to help mitigate this. My fear is, you have these gas shortages, it’s going to cause a lot of problems for people.”Colonial connects Gulf Coast refineries to population centers from Atlanta to New York and beyond. Each day, it normally ships about 2.5 million barrels (105 million gallons), an amount that exceeds the entire oil consumption of Germany.More than four days into the crisis, Colonial has only managed to restart a small segment of the pipeline as a stopgap measure. Even when the pipeline is restored to full service, it will take about two weeks for gasoline stored in Houston to reach East Coast filling stations, according to the most recent schedule sent to shippers. For diesel and jet fuel, the transit time is even longer -- about 19 days -- because they are heavier and move more slowly.As the outage drags on, traders are booking larger vessels that can send more fuel from the Middle East and Asia west to destinations such as the U.S. East Coast, according to shipbrokers and fixtures data compiled by Bloomberg.Two of the nation’s largest truck-stop owners --- Love’s Travel Stops & Country Stores Inc. and TravelCenters of America Inc. -- confirmed that fuel is scarce in some states. Both companies said they’re taking extraordinary measures to replenish tanks.The Biden administration issued an order on Sunday extending the amount of time truck drivers can spend behind the wheel when transporting fuel across 17 states and the District of Columbia. On Tuesday evening, the Transportation Department said 10 states could allow heavier-than-normal truck loads of gasoline and other fuels.Federal transportation regulators also took the first step toward waiving the 101-year-old Jones Act that prohibits foreign-flagged and -staffed ships from hauling products from one U.S. port to another.Meanwhile, most Gulf Coast refineries are expected to trim output amid expectations that supplies will begin backing up in the nation’s oil-refining nexus. Much of the cuts may be shouldered by refineries from Port Arthur, Texas, and eastward. At least one refinery each in Texas and Louisiana already reduced production.The Environmental Protection Agency moved to allow the sale of gasoline that doesn’t satisfy requirements meant to help combat smog in certain areas. An initial order allowed the sale of conventional gasoline in areas where reformulated gasoline is required across Maryland, Pennsylvania, Virginia and the District of Columbia. A second order went further by waiving low-volatility requirements governing conventional and reformulated gasoline in those areas, as well as nine other states.What BloombergNEF Is SayingBloombergNEF expects additional supply this week to come primarily from storage inventories, increased East Coast refinery run, other pipelines and shipments from Canada. Cargoes from Europe could also help alleviate lingering shortages next week.-- Anastacia Dialynas, BNEF analystRead the full report here.Gasoline isn’t the only oil-derived product under threat. In an effort to bolster jet-fuel inventories, Southwest Airlines Co. has begun flying supplies to Nashville, Tennessee, and other cities. So far, no Southwest flights have been affected by the pipeline closure; rather, the airline said it’s “actively managing” fuel stockpiles. United Airlines Holdings Inc. loaded extra fuel on flights to preserve local supplies in places like Baltimore and Greenville-Spartanburg, South Carolina.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. Business Yahoo Finance 210512 09h40m American credit card balances see 'remarkable' drop while student loan debt keeps rising Household debt balances increased by $85 billion in the first quarter of 2021 according to the New York Fed. While student loan balances continue to increase, credit card debt declined substantially. World Reuters 210512 09h35m Chileans drain $10 bln more from pension funds as pandemic drives withdrawals Chileans flocked for a third time to withdraw money from their retirement funds this week, draining nearly $10 billion from the country's privatized pension system in a move some billed as a lifeline amid a fierce second wave of the coronavirus pandemic. Chile's Congress in late April approved a bill allowing citizens a third opportunity to withdraw 10% of savings held in privately held pension funds. Many Chileans have already twice tapped their funds since the pandemic struck in March last year, hobbling a system once hailed by free-market economists worldwide. Business Bloomberg 210512 09h33m Hertz Shares to Recover $8 Each in Knighthead Win; Stock Soars (Bloomberg) -- In a deal that hands a huge victory to shareholders of bankrupt Hertz Global Holdings Inc., the car renter picked Knighthead Capital Management and Certares Management to buy the company out of Chapter 11, capping a dramatic brawl for control of the company.The deal, which gives a reorganized Hertz an enterprise value of $7.43 billion, was picked over an offer from a competing group led by Centerbridge Partners, Warburg Pincus and Dundon Capital Partners, according to people with knowledge of the matter, who asked not to be identified because the plan hasn’t been made public. The Knighthead-Certares plan would give equity holders a recovery of about $8 a share -- a package that’s made up of about $240 million in cash and warrants for nearly 20% of the reorganized company, the people said.Hertz shares -- which up until two months ago were faced with the prospects of being completely wiped out under an earlier plan -- soared as much as 41% Wednesday to as high as $5.19. That approached a high of $6.25 last June, when traders snapping up penny stocks on the popular Robinhood app sought to defy decades of convention and make money on a bankrupt company.Representatives for Knighthead, Certares and Warburg Pincus declined to comment, while Hertz, Dundon and Centerbridge didn’t immediately provide comment.The Knighthead-Certares group’s win brings the pandemic’s biggest Chapter 11 case nearer to a close, with Hertz seeking to exit court protection in June. Judge Mary Walrath must approve the final plan in Delaware bankruptcy court.Investment firms have been dueling over ownership of Hertz for weeks, with both groups seeking to top the other with multiple rounds of proposals. An earlier Knighthead proposal valued Hertz’s equity at around $2.25 a share, with an enterprise value of $6.2 billion, Bloomberg previously reported.As part of the winning plan, Apollo Global Management has committed $1.5 billion of preferred equity. Investors also would have the option to participate in a $1.6 billion rights offering.The competition came amid surging demand for rentals and summer travel that has let many car renters raise prices while still leaving them without enough vehicles for customers to drive off the lot. Rival Avis Budget Group Inc. has seen its shares more than double this year.Final proposals from both groups offered lenders and bondholders full repayment along with the share recovery, a relative rarity in bankruptcy proceedings. Hertz initially chose an iteration of the Centerbridge group’s plan, and Walrath last month approved a so-called breakup fee for those funds if they were later outbid.Hertz sought bankruptcy protection in May 2020 when the near-total shutdown of the global travel industry sent its rental revenues plunging. Equity holders initially appeared to be wiped out, while junior bondholders were slated to take a haircut. Still, Hertz became a popular stock among day traders, who sent shares rocketing on optimism that they could defy the norms of bankruptcy court and win a payout. The stock frenzy even briefly helped the company fund its bankruptcy by selling new equity.The case is Hertz Corp. 20-11218, U.S. Bankruptcy Court, District of Delaware (Wilmington).(Updates to add enterprise value and other terms of winning bid starting in second 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. Business Reuters 210512 09h33m Exclusive-ValueAct pushes for changes at 7-Eleven convenience store owner Activist investor ValueAct Capital has amassed a $1.53 billion stake in Seven & i Holdings and is pushing the Japanese owner of the 7-Eleven convenience store chain to consider changes, including a potential break-up. ValueAct told its investors on Wednesday in a letter seen by Reuters that it built a 4.4% stake in Seven & i and believes that the sum of its parts is worth much more than its current market value. The hedge fund said the 7-Eleven business could be worth more than double what its parent is currently valued at if the company restructures itself to focus on the convenience stores or if 7-Eleven is spun out. World Bloomberg 210512 09h33m Johnson Hit by U.K. Court Ruling on Unpaid 535-Pound Debt (Bloomberg) -- Prime Minister Boris Johnson, whose personal finances have been dominating British media headlines in recent weeks, has been hit with a U.K. court judgment against him over an unpaid debt of 535 pounds ($756).A County Court entered the judgment in October last year, a search of court records confirmed. The debt ruling was first reported by the satirical magazine Private Eye. The court does not say what the debt is for or who the creditor is, but it lists Johnson’s official Downing Street residence as his address.“An application will be made for an order to set aside the default judgment, to strike out the claim and for a declaration that the claim is totally without merit,” a spokesperson for Johnson’s office said by email. While the claim is modest in itself it will fuel the impression that Johnson is struggling to manage his finances.Chaotic Johnson Always Struggled With Rules. U.K. Voters Love ItThe premier is facing several investigations into the arrangements he made for paying for the refurbishment of his Downing Street apartment. He’s also under investigation by parliamentary authorities over how he paid for a luxury holiday to the Caribbean island of Mustique.U.K.’s ‘Sleaze’ Scandal: How Bad Can It Get for Boris Johnson?(Adds No10 comment 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. Business Yahoo Finance 210512 09h30m Stock market news live updates: Wall Street pinned in red with investors spooked by inflation Inflation fears are dogging Wall Street at a time when the U.S. rebound is picking up speed. Business Bloomberg 210512 09h30m Oil Extends Gain With U.S. Crude Supply Falling for Second Week (Bloomberg) -- Oil advanced as a second straight weekly decline in U.S. crude inventories bolstered the outlook that the world has drained a record supply glut built up last year.Futures in New York rose as much as 2.1% on Wednesday, while global benchmark Brent crude neared $70 a barrel. A U.S. government report showed domestic crude inventories fell to the lowest since late February last week. Meanwhile, gasoline supplies rose by 378,000 barrels, the Energy Information Administration report showed.Declining crude stockpiles in the U.S. support the International Energy Agency’s view that the world has largely worked off the surplus it accumulated when the pandemic devastated demand. While the agency cut its oil consumption forecasts in a monthly report, it said the glut is now just a small fraction of levels seen at the depths of the coronavirus fallout last year.“Inventories are still trending in the right direction,” said Quinn Kiley, a portfolio manager at Tortoise, a firm that manages roughly $8 billion in energy-related assets. “The economy globally is reopening and that should continue, so we should see continuing draws.”The weekly storage report shows domestic supply levels ahead of the cyberattack that halted the largest U.S. oil-products pipeline system. Panic-buying spurred by the ongoing outage of the Colonial Pipeline has pushed retail gasoline prices above $3 a gallon for the first time in more than six years, before the upcoming summer travel season unleashes a wave of pent-up demand from over a year of mobility restrictions.Still, the impact of the shutdown on headline crude prices is muted for now. The market remains buoyed by prospects for recovering energy demand around the world and broader bets on global inflation. U.S. consumer prices rose by 0.8% last month, exceeding forecasts, official figures showed Wednesday.“The outlook for demand remains fragile,” Toril Bosoni, head of the IEA’s oil markets and industry division, said in a Bloomberg television interview. But the agency is “expecting a very strong recovery in demand growth in the second half of the year.”The EIA report showed crude exports falling by the most on record to the lowest since 2018. While the figure jumped above 4 million barrels a day the previous week, it has struggled to consistently top 3 million barrels a day for several months.The report also points to the state of gasoline inventories on the U.S. East Coast before Colonial was idled. Stockpiles of the fuel in the Central Atlantic fell 1.15 million barrels last week, though they remained near the region’s five-year average, providing some cushion to last through the pipeline outage. But in the Lower Atlantic, which is the most reliant on the pipeline, gasoline inventories were at their lowest since 2016 for this time of year, even with a 815,000-barrel build last week.Even if Colonial does manage to restart on Wednesday, it’ll take days to fully restore shipments, according to U.S. Energy Secretary Jennifer Granholm. As part of the administration’s effort to ease the growing burden on consumers, regulators have taken a first step toward waiving rules that bar foreign ships from hauling products from one U.S. port to another.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. Howell date : 210512 09h35m49s Business Bloomberg 210512 09h29m Oil Extends Gain With U.S. Crude Supply Falling for Second Week (Bloomberg) -- Oil advanced as a second straight weekly decline in U.S. crude inventories bolstered the outlook that the world has drained a record supply glut built up last year.Futures in New York rose as much as 2.1% on Wednesday, while global benchmark Brent crude neared $70 a barrel. A U.S. government report showed domestic crude inventories fell to the lowest since late February last week. Meanwhile, gasoline supplies rose by 378,000 barrels, the Energy Information Administration report showed.Declining crude stockpiles in the U.S. support the International Energy Agency’s view that the world has largely worked off the surplus it accumulated when the pandemic devastated demand. While the agency cut its oil consumption forecasts in a monthly report, it said the glut is now just a small fraction of levels seen at the depths of the coronavirus fallout last year.“Inventories are still trending in the right direction,” said Quinn Kiley, a portfolio manager at Tortoise, a firm that manages roughly $8 billion in energy-related assets. “The economy globally is reopening and that should continue, so we should see continuing draws.”The weekly storage report shows domestic supply levels ahead of the cyberattack that halted the largest U.S. oil-products pipeline system. Panic-buying spurred by the ongoing outage of the Colonial Pipeline has pushed retail gasoline prices above $3 a gallon for the first time in more than six years, before the upcoming summer travel season unleashes a wave of pent-up demand from over a year of mobility restrictions.Still, the impact of the shutdown on headline crude prices is muted for now. The market remains buoyed by prospects for recovering energy demand around the world and broader bets on global inflation. U.S. consumer prices rose by 0.8% last month, exceeding forecasts, official figures showed Wednesday.“The outlook for demand remains fragile,” Toril Bosoni, head of the IEA’s oil markets and industry division, said in a Bloomberg television interview. But the agency is “expecting a very strong recovery in demand growth in the second half of the year.”The EIA report showed crude exports falling by the most on record to the lowest since 2018. While the figure jumped above 4 million barrels a day the previous week, it has struggled to consistently top 3 million barrels a day for several months.The report also points to the state of gasoline inventories on the U.S. East Coast before Colonial was idled. Stockpiles of the fuel in the Central Atlantic fell 1.15 million barrels last week, though they remained near the region’s five-year average, providing some cushion to last through the pipeline outage. But in the Lower Atlantic, which is the most reliant on the pipeline, gasoline inventories were at their lowest since 2016 for this time of year, even with a 815,000-barrel build last week.Even if Colonial does manage to restart on Wednesday, it’ll take days to fully restore shipments, according to U.S. Energy Secretary Jennifer Granholm. As part of the administration’s effort to ease the growing burden on consumers, regulators have taken a first step toward waiving rules that bar foreign ships from hauling products from one U.S. port to another.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. Business Reuters 210512 09h27m Analysis-European banks: Q1 full house is no winning hand just yet European banks' first-quarter earnings have surpassed all expectations in a turnaround from the COVID-19 doldrums of a year ago, yet after a decade of travails more than one season may be needed to win over sceptics. European bank shares are up 25% already this year, more than double the gains of the underlying STOXX 600 index. Since November, when President Joe Biden won U.S. elections with pledges for big-time spending, the sector has rallied some 66%. World Reuters 210512 09h11m Italy reports 262 coronavirus deaths on Wednesday, 7,852 new cases Italy reported 262 coronavirus-related deaths on Wednesday against 251 the day before, the health ministry said, while the daily tally of new infections rose to 7,852 from 6,946. Italy has registered 123,544 deaths linked to COVID-19 since its outbreak emerged in February last year, the second-highest toll in Europe after Britain and the seventh-highest in the world. The total number of intensive care patients fell to 1,992 from a previous 2,056. Business Yahoo Finance Video 210512 09h10m Earnings preview: Airbnb prepares for a rebound, DoorDash seeks elevation As investors awaits DoorDash and Airbnb Q1 earnings, Julie Hyman, Brian Sozzi, and Myles Udland talk with Wells Fargo Securities senior analyst Brian Fitzgerald about how the post-pandemic world could affect these companies moving forwar Business Bloomberg 210512 09h09m Options Traders Pile Into Leveraged Bet Against Chip Stocks (Bloomberg) -- As chipmakers head for their worst month since the pandemic outbreak, options traders are betting the selloff has further to go.The bearishness was evident in the Direxion Daily Semiconductors Bear 3x Shares (SOXS), an exchange-traded fund that pays three times the inverse return of the Philadelphia Semiconductor Index. As the benchmark tumbled as much as 3.2% Tuesday, call options on the ETF, which amount to wagers against chip stocks, saw volume exploding to a record 164,000 contracts.Whether they’re direct bets or hedges against existing positions, it’s hard to tell. What’s clear is the souring sentiment toward an industry that’s suffering from production constraints. Hedge funds, for instance, have been selling chip stocks all year, cutting their exposure to the lowest level since early 2020, prime broker data compiled by Morgan Stanley show.“We continue to see investors positioning for further volatility in the sector in the days/weeks ahead,” said Christopher Jacobson, a strategist at Susquehanna International Group. The outsize call volume in the SOXS “has been particularly notable.”The Philadelphia Semiconductor Index fell 3% Wednesday, extending its loss for May to more than 7% -- on course for its biggest monthly decline since March 2020. Meanwhile, SOXS has worked for bears, jumping 23% this week.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. World Reuters 210512 09h05m UPDATE 1-Swiss aim to re-open economy, donate AstraZeneca COVID-19 shots Switzerland aims to expand its economic re-opening and may donate millions of AstraZeneca COVID-19 vaccine doses to developing countries as the Alpine nation grows increasingly confident it is beating back the pandemic. Health Minister Alain Berset on Wednesday said the country may give 3 million of 5.4 million AstraZeneca doses it has reserved to the COVAX vaccine sharing programme. Switzerland has enough mRNA shots from producers including Pfizer and Moderna to cover 2021 and 2022, Berset said. Howell date : 210512 09h05m12s Business Reuters 210512 09h00m Remittances to developing nations unexpectedly resilient in 2020 -World Bank Remittances to low and middle-income countries from citizens working abroad held up unexpectedly well in 2020, outstripping combined foreign direct investments and overseas development aid, a World Bank report showed on Wednesday. They fell just 1.6% to $540 billion, the report said, supported by fiscal stimulus in countries hosting migrant workers, a shift in flows from cash to digital and, with fewer people travelling due to the coronavirus pandemic, more money sent via formal instead of in-person channels. A year ago, the Bank envisaged a fall in migrant wages and employment overseas and forecast a drop of around 20% in what has become an increasingly vital source of funds as governments and families in poorer countries have struggled to bear the pandemic's financial cost. Business Reuters 210512 08h54m Some U.S. car shoppers are paying $5,000 over a vehicle's retail price - Cox Automotive Many U.S. consumers are willing to pay $5,000 more than the sticker price of a new vehicle, as a global semiconductor chip shortage has led to a supply crunch at a time when demand for cars is soaring, a poll by research firm Cox Automotive found. The chip shortage has forced car manufacturers to idle factories and cut production, which has created a scarcity for new vehicles in the market, sending prices of both new and used vehicles surging. "More than 40% of car shoppers are willing to pay above manufacturer suggested retail price right now, and those willing to pay over MSRP are willing to accept a 12% premium," Cox Automotive said on Wednesday. Politics Reuters 210512 08h49m Congresswoman says Trump administration botched Capitol riot preparations A Democratic lawmaker on Wednesday plans to interrogate former security officials from Donald Trump's administration on failures to avert the deadly Jan. 6 attack on the U.S. Capitol, saying signs of looming danger had been in "plain sight." "The federal government was unprepared for this insurrection, even though it was planned in plain sight on social media for the world to see," said Carolyn Maloney, chairwoman of the House of Representatives Oversight Committee, at the start of a hearing examining the security failures. Maloney's committee will hear testimony from two men in high-ranking positions during the closing weeks of the Trump administration, former acting Defense Secretary Christopher Miller and former acting Attorney General Jeffrey Rosen. Business Yahoo Finance 210512 08h48m StockX points to Crocs, Nike Jordan golf shoes as big money-makers on the resale site The COVID-19 pandemic has forced many Americans to look for side-hustles in order to make ends meet and secondary market reselling platform StockX. The company is out with its latest Big Facts report, ‘Pandemic-Era Trends: The Next Chapter’, highlighting the sheer amount of volume. Business Bloomberg 210512 08h46m Fed’s Clarida Plays Down Significance of Rising Inflation (Bloomberg) -- Federal Reserve Vice Chairman Richard Clarida acknowledged that he was surprised by April’s jump in consumer prices but argued that the rise in inflation was likely to be prove largely transitory.“Readings on inflation on a year-over-year basis have recently increased and are likely to rise somewhat further before moderating later this year,” he told a meeting of the National Association for Business Economics on Wednesday. However, “I expect inflation to return to -- or perhaps run somewhat above -- our 2% longer-run goal in 2022 and 2023.”U.S. consumer prices climbed in April by the most since 2009, bringing the year-on-year increase to 4.2%, amid a record increase in used-car costs, the Labor Department reported on Wednesday. The news drove stock and bond prices lower.Calling April’s numbers “one data point,” Clarida said inflation was being boosted by base effects -- current price levels are elevated compared to depressed readings a year ago, when the economy was virtually shut down to contain Covid-19 -- and by some supply bottlenecks.Pent-Up Demand“We have pent-up demand in the economy,” he said “It may take some time for supply to rise up to demand.”Clarida repeatably said that the Fed was prepared to act if inflation or inflation expectations rose to undesirable levels.“If we saw evidence that there was a risk of a persistent upward drift in inflation expectations we would not hesitate to use our tools to offset that,” he said.Still, he suggested that the Fed is some ways away from scaling back the massive stimulus it is providing to the economy.Far from Goals“The economy remains a long way from our goals, and it is likely to take some time for substantial further progress to be achieved,” he said.The Fed is currently buying $120 billion of assets per month -- $80 billion of Treasury securities and $40 billion of mortgage backed debt -- and has pledged to keep up that pace “until substantial further progress” has been made toward its goals of maximum employment and 2% average inflation.Clarida was upbeat on the outlook for the economy, saying it he expects it to “pick up steam” this year.But like other forecasters, he said he had been surprised by last week’s news of a smaller-then expected rise in U.S. payrolls in April.“The near-term outlook for the labor market appears to be more uncertain than the outlook for economic activity,” he said, adding that it may take some time to match workers to the jobs that are available for them after the pandemic.“This was an unprecedented shock,” he said. “We need to be humble and really draw lessons from the data.”(Updates with comments from Clarida throughout)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. Business Bloomberg 210512 09h00m Tech Share Selloff Accelerates; Bond Yields Climb: Markets Wrap (Bloomberg) -- U.S. stocks slumped for a third day and bonds yields climbed after a report showed inflation rose more than forecast, adding to concern that price pressures will stifle a recovery in the world’s biggest economy.The technology sector continues to lead the retreat in equities, with Apple and Microsoft pacing declines in the Nasdaq 100. Cathie Wood’s ARK Innovation ETF resumed its slide, bringing this year’s loss to about 17%. The benchmark S&P 500 declined for a third day after hitting a record high. The dollar remained higher, while Treasury yields rose.“The CPI data point feeds into a myopic narrative that the U.S. is overheating and the Fed is one step away from tightening,” said Mike Bailey, director of research at FBB Capital Partners. “Bears will feast on this tightening theme in the short term, but my sense is inflation will prove fleeting and markets will revert back to a more bullish view of moderate growth and lower risk of Fed tightening until we get to a full recovery.”European stocks remained higher, lifted by optimism about economic re-openings and booming commodities.The debate over whether inflation will be persistent enough to force the Federal Reserve to tighten policy sooner than current guidance suggests comes as abundant stimulus has powered a rally in global equities, raising concerns valuations had become expensive. Fed Vice Chair Richard Clarida says he was surprised by the rise in consumer prices and “we would not hesitate to act” to bring inflation down to its goals if needed.The consumer price index increased 0.8% from the prior month after a 0.6% gain in March. Excluding the volatile food and energy components, the so-called core CPI rose 0.9% from March.“With inflation numbers coming in even higher than expected -- even taking into account base effects -- it’s going to have the market re-evaluating its view on rates,” said Chris Zaccarelli, chief investment officer at Independent Advisor Alliance. “The bond market has been surprisingly sanguine about rising inflation pressures and eventually it’s going to have to acknowledge that current rates are too low.”Copper and iron ore were on course for new records amid a broadening commodities boom. Oil was steady above $65 per barrel. The biggest U.S. pipeline is still closed in the wake of a cyberattack, leading to acute fuel shortages in some parts of the nation.MLIV’s Question of the Day: How Priced In Is a European Reopening?These are some of the main moves in markets:StocksThe S&P 500 fell 1.2%, more than any closing loss since March 18 as of 10:58 a.m. New York timeThe Nasdaq 100 fell 2.2%, falling for the third straight day, the longest losing streak since May 5The Dow Jones Industrial Average fell 0.9%, falling for the third straight day, the longest losing streak since March 4The Stoxx Europe 600 rose 0.4%The MSCI World index fell 1.1%, falling for the third straight day, the longest losing streak since March 4CurrenciesThe Bloomberg Dollar Spot Index rose 0.5%, more than any closing gain since April 30The euro slipped 0.6%, more than any closing loss since April 30The British pound slipped 0.3%, more than any closing loss since April 30The Japanese yen slipped 0.7%, more than any closing loss since March 4BondsThe yield on 10-year Treasuries advanced six basis points, more than any closing gain since March 18Germany’s 10-year yield advanced four basis points, climbing for the sixth straight day, the longest winning streak since Feb. 8Britain’s 10-year yield advanced five basis points, more than any closing gain since March 12CommoditiesWest Texas Intermediate crude rose 1.7%, the most since May 4Gold futures fell 0.5% to $1,827 an ounceFor 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. Howell date : 210512 08h34m36s Business Yahoo Finance 210512 08h29m IBM looks to 'unlock value' with new AI and cloud initiatives IBM is doubling down on hybrid cloud and artificial intelligence as CEO Arvind Krishna takes steps to modernize the legacy company’s tech business. Business Reuters 210512 08h24m CANADA FX DEBT-Canadian dollar notches 6-year high as U.S. inflation jumps * Canadian dollar strengthens 0.3% against the greenback * Loonie touches its strongest since May 2015 at 1.2046 * Price of U.S. oil increases 1.7% * Canadian 10-year yield touches its highest in nearly two weeks By Fergal Smith TORONTO, May 12 (Reuters) - The Canadian dollar strengthened against its U.S. counterpart and all the other G10 currencies on Wednesday as oil prices rose and investors bet that the Bank of Canada would be more sensitive to rising inflation than the Federal Reserve. "Higher inflation in the U.S. will spillover into Canada's economy and place upwards pressure on Canadian CPI," said Simon Harvey, senior FX market analyst for Monex Europe and Monex Canada. Business Bloomberg 210512 08h22m Transitory or Not, Signs of Inflation Are Roiling Asset Markets (Bloomberg) -- Over and over again, Federal Reserve officials have advised that any pickup in inflation this year was bound to be transitory. Traders in financial markets, however, aren’t so sure.Even before the faster-than-forecast rise in U.S. consumer prices reported Wednesday, investors had become fixated on widespread signs of cost pressures as commodities like copper and lumber surged to records and the bond market’s expectation for inflation over the next decade climbed to an eight-year high. The focus is shaking up the stock market, sending the Cboe Volatility Index to the highest since March.The most-recent round of U.S. corporate earnings calls showed the word inflation was back in vogue, with its usage rising 800% from a year ago, according to Bank of America Corp. Even last week’s payrolls report, which showed the U.S. added only about a quarter of the jobs economists expected in April, is being viewed as a sign that companies will have to boost wages to entice more unemployed workers into the labor force.“Inflation risk is what we want to watch here,” Savita Subramanian, Bank of America’s head of U.S. equity and quantitative strategy, said on Bloomberg Television on Friday. “I don’t know if it’s going to be transitory.”The U.S. consumer price index for April boosted the bond market’s five-year inflation outlook on Wednesday to the highest since 2005. Month-over-month CPI came in at 0.8%, beating economists’ estimates of 0.2%. On a year-over-year basis, CPI rose 4.2%, above estimates of 3.6%. The figures pushed the 10-year Treasury yield up five basis points to 1.67%.The growing inflation fears are a political threat to President Joe Biden’s plans for vast new spending, particularly after a disappointing jobs report on Friday.But policy makers are standing their ground. Even known Fed hawks have chimed in over recent weeks to say that inflation is unlikely to get out of control despite unprecedented government spending in response to the coronavirus pandemic. Both Fed Chairman Jerome Powell and a top Biden administration economic adviser have said that the inflation now apparent in certain pockets of the economy is “transitory.”That description raises an important question: Just how long does “transitory” mean? The answer is probably unknowable at the moment, but past recessions provide some clues.Commodities After RecessionIf the latest rise in prices is largely commodity-driven, then it’s a matter of how long those input prices keep rising. Using the 2009 economic rebound as a road map, demand for raw materials -- and ergo their prices -- soared for two years and pushed up global inflation until commodity markets topped out.Those price increases were largely driven by a massive Chinese infrastructure package. This time, the U.S. may fill the role that China played more than a decade ago as the Biden administration proposes billions of dollars in spending. By this logic, “transitory” could mean two years.Computer-Chip ShortagesHowever, raw materials like lumber and copper aren’t the only factors that potentially will push up inflation. Computer chips used in everything from cell phones to cars and refrigerators are also playing a major role.Honda Motor Co., BMW AG and other automakers have been forced to halt production due to chip shortages. Given how crucial they are, it’s no surprise that the 30-member Philadelphia Semiconductor Index has a positive correlation with 10-year breakevens, a bond-market gauge of inflation expectations that’s based on the difference in yields between nominal Treasuries and inflation-protected securities. The two indexes have been trading in tandem over the past year.It doesn’t stop there.Used CarsThe headwind to new-vehicle manufacturing posed by the shortage of computer chips led to a 10% jump in prices for used cars and trucks in April, the CPI report showed Wednesday. Pent-up demand among those who can’t afford big-ticket items can be seen in the surge in prices of used cars, says Sebastien Galy, a senior macro strategist at Nordea Investment Funds SA in Luxembourg. The Manheim Used Vehicle Value Index, which measures prices at wholesale auctions, shows they’re now 20% higher since the end of last year.“It shows that if you can’t afford a lot, then replacing your car may be the way to splurge,” Galy said.BreakevensThe bond market has sniffed out all the pricing pressure, and the inflation expectations it reflects are influential in setting investor assumptions. Ten-year breakeven rates, a proxy for the inflation expected over the next decade, are near their highest since March 2013 at about 2.57%. Five-year breakevens rose as high as 2.82% on Wednesday, the highest since 2005.To be sure, not all market participants agree with the inflation signals coming from the bond market. Goldman Sachs Group Inc. and Pacific Investment Management Co. estimate that bond traders pricing in annual inflation approaching 3% over the next handful of years are overstating the pressures bubbling up.Read More: Goldman, Pimco Detect Irrational Inflation Mania in BondsWage PressuresMeanwhile, some investors, strategists and politicians have indicated that the real message of the well-below-forecast rate of job creation last month is that costs to entice more unemployed people back to work will rise. That’s in part due to added government unemployment benefits that make their former wages less appealing. Any pressure to increase wages could feed back into the prices of goods and services, further increasing the rate of inflation.“It’s not going to be that easy to pull 8 million people off their sofas and back to work without the price of doing that having to be higher than it was before,” said Mark Holman, chief executive officer at TwentyFour Asset Management. “This is inflation risk,” said Holman who is avoiding duration risk as a result and focused on corporate debt given the growth outlook is good and default risk is low.(Updates throughout with CPI data, market reaction)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. World Reuters 210512 08h18m UPDATE 1-U.S. trade chief Tai vows to use new USMCA trade pact to address Mexican labor issues U.S. Trade Representative Katherine Tai said on Wednesday that she will partner with the Mexican government to try to "prevent a race to the bottom" for U.S. and Mexican workers. Tai told the U.S. Senate Finance Committee in prepared testimony that she will use the new factory-specific labor enforcement provisions of the U.S.-Mexico-Canada Agreement on trade to address longstanding labor issues in Mexico. USTR earlier on Wednesday requested that the Mexican government review allegations that worker rights were denied in a union vote at a General Motors truck plant in Mexico under the USMCA's "rapid response" labor enforcement provisions. Business Reuters 210512 08h17m Australia's Wright launches lawsuit over $5.7 billion bitcoin haul An Australian computer scientist who alleges he created bitcoin has launched a London High Court lawsuit against 16 software developers in an effort to secure bitcoin worth around 4 billion pounds ($5.7 billion) he says he owns. In a case that was promptly labelled "bogus" by one defendant, Craig Wright is demanding that developers allow him to retrieve around 111,000 bitcoin held at two digital addresses that he does not have private keys for. In his second London lawsuit in three weeks, Wright alleges he lost the encrypted keys when his home computer network was hacked in February 2020. Business Bloomberg 210512 08h12m Hertz Equity to Recover $8 a Share With Knighthead Plan Win (Bloomberg) -- Hertz Global Holdings Inc. picked Knighthead Capital Management and Certares Management to buy the company out of bankruptcy, capping a dramatic brawl for control of the car renter as travel rebounds, according to people with knowledge of the matter.The company selected a bid from the firms over a competing group led by Centerbridge Partners, Warburg Pincus and Dundon Capital Partners, the people said, asking not to be identified discussing private plans. The winning plan would hand shareholders value of around $8 a share, made up of about $240 million in cash and warrants for nearly 20% of the reorganized equity, they added.Hertz shares soared more than 40% Wednesday to as high as $5.19. The recovery is a rare win for shareholders, who are typically wiped out in bankruptcy proceedings.Representatives for Knighthead, Certares and Warburg Pincus declined to comment, while Hertz, Dundon and Centerbridge didn’t immediately provide comment.The Knighthead-Certares group’s win brings the pandemic’s biggest Chapter 11 case nearer to a close, with Hertz seeking to exit court protection in June. Judge Mary Walrath must approve the final plan in Delaware bankruptcy court.Investment firms have been dueling over ownership of Hertz for weeks, with both groups seeking to top the other with multiple rounds of proposals. A previous Knighthead proposal valued Hertz’s equity at around $2.25 a share, Bloomberg reported.The competition came amid surging demand for rentals and summer travel that has let many car renters raise prices while still leaving them without enough vehicles for customers to drive off the lot. Rival Avis Budget Group Inc. has seen its shares more than double this year.Final proposals from both groups offered lenders and bondholders full repayment along with the share recovery, a relative rarity in bankruptcy proceedings. Hertz initially chose an iteration of the Centerbridge group’s plan, and Walrath last month approved a so-called breakup fee for those funds if they were later outbid.Hertz sought bankruptcy protection in May 2020 when the near-total shutdown of the global travel industry sent its rental revenues plunging. Equity holders initially appeared to be wiped out, while junior bondholders were slated to take a haircut. Still, Hertz became a popular stock among day traders, who sent shares rocketing on optimism that they could defy the norms of bankruptcy court and win a payout. The stock frenzy even briefly helped the company fund its bankruptcy by selling new equity.The case is Hertz Corp. 20-11218, U.S. Bankruptcy Court, District of Delaware (Wilmington).(Updates with share recovery, stock price from second 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. Howell date : 210511 21h28m00s U.S. Bloomberg 210511 21h11m Colonial Faces Deadline to Decide on Hacked Pipeline Restart (Bloomberg) -- Colonial Pipeline Co. told federal officials it will know by late Wednesday whether it’s safe to restart gasoline and diesel flows that have been on hold since criminal hackers targeted the company last week.Beyond that deadline, given to U.S. Energy Secretary Jennifer Granholm by Colonial Chief Executive Officer Joe Blount, details about when the biggest North American fuel pipeline will recover have been scant. It’s been more than 24 hours since Colonial issued a statement pledging to be back online by the weekend, and the growing frustration among political leaders is palpable as gas stations across the East and South run dry.Granholm’s boss, President Joe Biden, is also facing increasing pressure to marshal federal resources to blunt the growing crisis that threatens to hobble the post-pandemic economic recovery. The administration, which took several measures Tuesday to ease shortages, will give a House briefing on the cyberattack at 6 p.m. Washington time on Wednesday.“This is something that demands really serious federal attention,” Florida Governor Ron DeSantis said on Tuesday, prior to declaring a state of emergency. “The U.S. government needs to be involved, they need to help mitigate this. My fear is, you have these gas shortages, it’s going to cause a lot of problems for people.”Fuel shortages that first emerged in South Carolina have metastasized across a wide swath of the South and East, shutting pumps at convenience stores and truck stops from Tennessee to Tallahassee. Granholm told a media briefing that even if Colonial decides to restart on Wednesday, it’ll take days longer to fully restore shipments.The situation across the southeastern states is “rapidly deteriorating,” Brad Jenkins, a senior vice president at truck-stop owner Pilot, said in an email.The White House relaxed some environmental rules across 12 states and Washington D.C. to help bring in more fuel, even as some Gulf Coast refiners were forced to curtail output to cope with logjams of fuel they can’t ship to eastern markets. The Department of Transportation also announced initial steps that could permit foreign tankers to transport gasoline and diesel to East Coast ports.The Colonial pipeline is the most important conduit for distributing gasoline, diesel and jet fuel in the U.S., connecting Gulf Coast refineries to population centers from Atlanta to New York and beyond. Each day, it ships about 2.5 million barrels (105 million gallons), an amount that exceeds the entire oil consumption of Germany.The vital economic lifeline has been shut since late Friday, prompting a run on filling stations by panicked motorists in several states. Even when the pipeline is restored to full service, it’ll take about two weeks for gasoline stored in Houston to reach East Coast filling stations, according to the most recent schedule sent to shippers. For diesel and jet fuel, the transit time is even longer -- about 19 days -- because they are heavier and move more slowly.End Of DayGranholm said she’s been in regular contact with the Colonial CEO in recent days to track the company’s progress in neutralizing the ransomware attack.“By the end of business tomorrow, Colonial will be in a position to make the full restart decision,” she said. “But even after that decision is made, it will take a few days to ramp up operations.”Colonial issued a statement hours later confirming the energy secretary’s account.Meanwhile, fuel shortages continued to worsen. In Atlanta, 20% of filling stations were dry by Tuesday afternoon, according to retail-fuel tracker GasBuddy.School BusesOne Washington D.C.-area fuel distributor warned that “catastrophic” shortages are imminent and called on government officials to order school buses to stay off the roads. More than four days into the crisis, Colonial has only managed to restart a small segment of the pipeline as a stopgap measure.“We have been providing daily and sometimes twice daily updates to our shippers, and have been in close contact with law enforcement and federal agencies to relay information on our restoration efforts,” Colonial’s media relations office said earlier in the day. “We will continue to keep all of our stakeholders informed and appreciate the outpouring of support we have received throughout the industry.”U.S. average retail gasoline prices have risen to their highest since late 2014 due to the disruption, almost touching $3 a gallon. That could add to broader inflationary pressures as commodity prices from timber to copper also surge. In addition to Florida, Virginia and North Carolina are under states of emergency.Two of the nation’s largest truck-stop owners --- Love’s Travel Stops & Country Stores Inc. and TravelCenters of America Inc. -- confirmed that fuel is scarce is some states. Both companies said they’re taking extraordinary measures to replenish tanks.Trucking MeasuresThe Biden administration issued an order on Sunday extending the amount of time truck drivers can spend behind the wheel when transporting fuel across 17 states and the District of Columbia. On Tuesday evening, the Transportation Department said 10 states could allow heavier-than-normal truck loads of gasoline and other fuels.Federal transportation regulators also took the first step toward waiving the 101-year-old Jones Act that prohibits foreign-flagged and -staffed ships from hauling products from one U.S. port to another.Gasoline isn’t the only oil-derived product under threat. In an effort to bolster jet-fuel inventories, Southwest Airlines Co. has begun flying supplies to Nashville, Tennessee, and other cities. So far, no Southwest flights have been affected by the pipeline closure; rather, the airline said it’s “actively managing” fuel stockpiles.United Airlines Holdings Inc. loaded extra fuel on flights to preserve local supplies in places like Baltimore and Greenville-Spartanburg, South Carolina. Problems are “relatively minor so far,” however, Chief Executive Officer Scott Kirby said at the Resources for the Future Forum.What BloombergNEF Is SayingBloombergNEF expects additional supply this week to come primarily from storage inventories, increased East Coast refinery run, other pipelines and shipments from Canada. Cargoes from Europe could also help alleviate lingering shortages next week.-- Anastacia Dialynas, BNEF analystRead the full report here.The Environmental Protection Agency moved to allow the sale of gasoline that doesn’t satisfy requirements meant to help combat smog in certain areas. An initial order allowed the sale of conventional gasoline in areas where reformulated gasoline is required across Maryland, Pennsylvania, Virginia and the District of Columbia. A second order went further by waiving low-volatility requirements governing conventional and reformulated gasoline in those areas, as well as nine other states.Emergency shipments of gasoline and diesel from Texas are already on the way to Atlanta and other southeastern cities via trucks, and at least two Gulf Coast refineries began trimming output amid expectations that supplies will begin backing up in the nation’s oil-refining nexus.The national average retail gasoline price rose to $2.985 a gallon, the highest since November 2014, according to auto club AAA. The premium for wholesale gasoline in the New York area expanded to its widest in three months.(Updates with expanded government efforts, scheduled briefing beginning in second 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. Business Reuters 210511 20h53m Japanese shares fall on weak Wall Street finish, BOJ's absence Japanese shares fell on Wednesday, following a weak finish on Wall Street and as investors were concerned by the Bank of Japan's absence despite a sharp drop in the previous session. Overnight, Wall Street ended lower amid speculations that surging commodity prices and growing inflationary pressure could lead to earlier-than-expected rate hikes. "Today's market is dragged down by the Dow's decline," said Yoshihiro Takeshige, general manager at investment management department of Asahi Life Asset Management. Business Bloomberg 210511 20h37m TikTok Begins Testing In-App Shopping to Challenge Facebook (Bloomberg) -- ByteDance Ltd.’s TikTok is working with brands including streetwear label Hype to test in-app sales in Europe, a move that will intensify its competition with Facebook Inc. and further blur the line between social media and online shopping.The popular video app is hoping to replicate abroad the success of its Chinese-only cousin Douyin, which racked up $26 billion of e-commerce transactions in just its first year of operation. TikTok has begun working with merchants in markets including the U.K. on ways they can sell products directly to millions of users within the app, people familiar with the matter say.While TikTok has run promotional shopping campaigns in the past, the current trials are a precursor to a broader launch of a global e-commerce service. The prototype so far is only visible to select participants and it remains unknown when the company will kick off the formal launch. A Hype representative confirmed the test without commenting further. The label’s storefront under its TikTok account displays a range of merchandise with product images and prices, according to a screen grab provided to Bloomberg News.Listen to the podcast: Foundering: The TikTok StoryByteDance is moving aggressively into a $1.7 trillion Chinese e-commerce arena in hopes of adding another mega-growth story to its stable ahead of a much-anticipated initial public offering. It aims to handle more than $185 billion of e-commerce annually by 2022, building on the reach of social media wunderkinds TikTok and Douyin. Unlike Chinese rivals Alibaba Group Holding Ltd. or Tencent Holdings Ltd., ByteDance’s apps also enjoy a broad global fan base and co-founder Zhang Yiming wants to use that as a springboard into the game of online commerce.“Chinese internet companies will go and incentivize behaviors they think they need for the next stage of ecosystem behavior,” said Rui Ma, a partner with Synaptic Ventures. “TikTok has a lot of learnings from China and Douyin, but the dynamics and infrastructure in the international market are different so they need to make sure they” adapt.Read more: ByteDance Eyes a New $185 Billion Business Ahead of Mega IPOThe internet giant remains a late entrant to China’s social commerce scene, where influencers tout products to fans like a Gen-Z version of the Home Shopping Network. It’s counting on its artificial intelligence-driven, interest-based recommendations to help its e-commerce business catch up.“TikTok has been testing and learning with e-commerce offerings and partnerships, and we are constantly exploring new ways” to add value, the company said in an emailed statement. “We will provide updates as we explore these important avenues for our community of users, creators and brands.”The move comes as social media titans around the world are scrambling to grab their share of online retail, a segment that will generate $5 trillion in sales this year, according to eMarketer’s projections. Facebook last May introduced new tools to improve shopping experience on its platform as well as photo-sharing app Instagram, and Pinterest has also stepped into ecommerce by channeling buyers to merchants’ websites.TikTok, for its part, had already begun testing the waters in online shopping through promotional tie-ups with Walmart Inc. and Canadian e-commerce firm Shopify Inc. Businesses typically tag their products in TikTok’s social content, with links directing buyers to their own sites, but users still technically stay in the TikTok app. Facebook and Instagram let merchants either set up their in-app storefronts or channel users to third-party services.Read more: Leaked ByteDance Memo Shows Blockbuster Revenue ProjectionsNow TikTok aims to lock users inside its ecosystem to a greater degree. Brands like Hype will run dedicated stores on the video platform, taking orders from and interacting directly with shoppers. While the Chinese company won’t handle sales or merchandise itself, it hopes to sell more ads to merchants, boost traffic and take a cut of business.Back in December, Zhang told global employees that e-commerce, when combined with live-streaming and short videos, offers an even bigger opportunity outside China, according to attendees who asked not to be identified. The company has also been quietly building a team of engineers in Singapore to grow TikTok’s nascent e-commerce operations.It’s unclear how TikTok intends to proceed, but its Chinese twin offers clues. In a splashy coming-out party for Douyin’s one-year-old business last month, executives explained that the company intends to replicate its success with AI-recommended videos in online shopping. By scrolling an endless stream of content linked with physical goods, the startup aims to hook shoppers the same way lip-synching videos enthralled a generation of American and European teens.(Updates with VC’s comment in the fifth 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. Business Business Business World Howell date : 210511 19h27m23s Business Reuters 210511 19h00m RPT-COLUMN-Signs of investor vertigo as copper hits record highs -Andy Home Copper continues to rewrite the record books. London Metal Exchange (LME) three-month metal punched through its previous record high of $10,190 a tonne, set in 2011, to touch $10,747.50 on Monday. Copper sits at the epicentre of the broader rally unfolding across the commodities space, which super-bulls such as Goldman Sachs say is the start of a supercycle analogous to that of the 2000s. Business Bloomberg 210511 18h57m U.S. Equity Futures, Asia Stocks Slip; Dollar Up: Markets Wrap (Bloomberg) -- Asian stocks and U.S. equity futures fell Wednesday after a drop on Wall Street amid concern that faster inflation and the surge in commodities could test the recovery from the pandemic.Stocks slid in Japan, South Korea and Australia. U.S. contracts retreated after the S&P 500 declined for a second day following a record high Friday. Dip buyers helped the tech-heavy Nasdaq 100 erase a loss of almost 2% to finish little changed.Treasury yields were steady and the dollar edged higher from around the lowest levels of this year. Investors are awaiting an inflation report and government debt sales in the U.S. -- events that could trigger another bond selloff. Consumer price inflation is set to accelerate, with the year-on-year comparison amplified by the shock of economic shutdowns in 2020.Australia’s 10-year bond yield jumped after the government unveiled a big-spending budget to spur the country’s rebounding economy.Debate continues over whether price pressures will be persistent enough to force the Federal Reserve to tighten policy sooner than current guidance suggests. A chorus of Fed officials said the U.S. economy is on the road to recovery but still faces risks, and reiterated that it’s premature to discuss pulling back monetary support.“It’s all about inflation expectations,” Priya Misra, TD Securities global head of rates strategy, said on Bloomberg Television, adding that if the U.S. CPI report signals “inflation is likely to be higher for a while, I think the taper discussion will come back into the forefront and then we can get a bigger interest rate move.”The weaker dollar boosted oil, helping to offset the effects of rising inventories in the U.S. Gulf Coast in response to the Colonial Pipeline shutdown.Copper traded near a record, and the Bloomberg Commodity Spot Index hovered around the highest levels in almost a decade. A commodity exchange in China raised trading limits and margin requirements as authorities try to temper prices after a scorching rally in industrial commodities.Here are some key events to watch this week:U.S. CPI report Wednesday is forecast to show prices continued to increase in AprilBank of England Governor Andrew Bailey speaks WednesdayThese are some of the main moves in markets:StocksS&P 500 futures fell 0.4% as of 9:47 a.m. in Tokyo. The S&P 500 index fell 0.9%.Nasdaq 100 contracts lost 0.5%. The index was little changed.Japan’s Topix index shed 1%.Australia’s S&P/ASX 200 index was down 0.6%.South Korea’s Kospi index fell 0.8%CurrenciesThe yen fell 0.1% to 108.75 per dollarThe offshore yuan was at 6.4283 per dollarThe Bloomberg Dollar Spot Index added 0.1%The euro traded at $1.2141BondsThe yield on 10-year Treasuries held at 1.62%Australia’s 10-year bond yield climbed more than five basis points to 1.78%CommoditiesWest Texas Intermediate crude rose 0.2% to $65.43 a barrelGold was at $1,835.19 an ounceFor 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. Business Reuters 210511 18h50m Asia shares wallow near one-month lows on inflation anxiety Asian shares languished near one-month lows on Wednesday as investors speculated surging commodity prices and growing inflationary pressure in the United States could lead to earlier rate hikes and higher bond yields globally. MSCI's broadest index of Asia-Pacific shares outside Japan eased 0.1%, after tumbling 1.6% on Tuesday for its biggest daily percentage drop since March 24. "There isn't a clear catalyst behind this purge," said Marios Hadjikyriacos, investment analyst for XM. Business Reuters 210511 18h47m UPDATE 2-Australia's CBA cash profit rebounds from COVID slump Commonwealth Bank of Australia's third-quarter cash profit almost doubled as a rapid economic recovery spurred lending and enabled the country's largest bank to reverse bad debt provisions made during the COVID-19 pandemic. Australia's control over the pandemic, near-zero interest rates and government spending has allowed its banks to recover quicker than their global peers and move funds set aside for potential COVID-19 losses back into profits. Last week, peers Westpac, National Australia Bank and Australia and New Zealand Banking Group together reversed nearly A$1 billion ($783.8 million) in bad debt provisions, boosting their half-year profits and dividends. World Reuters 210511 18h41m Brazil buys 100 million more doses of Pfizer's COVID-19 vaccine Brazil's Health Ministry on Tuesday announced it had signed a deal for Pfizer to deliver an additional 100 million doses of its COVID-19 vaccine, doubling the number of shots from the company. The additional shots will be delivered between September and December, the Health Ministry said in a statement. That adds to an agreement earlier in the year for an initial 100 million doses, of which Brazil has only received 1.6 million to date. U.S. Bloomberg 210511 18h37m Colonial Faces Wednesday Deadline to Decide on Pipeline Restart (Bloomberg) -- Colonial Pipeline Co. told federal officials it will know by late Wednesday whether it’s safe to restart gasoline and diesel shipments that have been on hold since criminal hackers targeted the company last week.Beyond that deadline, vouchsafed to U.S. Energy Secretary Jennifer Granholm by Colonial Chief Executive Officer Joe Blount, details about when the biggest North American fuel pipeline will recover have been scant. It’s been more than 24 hours since Colonial issued a statement pledging to be back online by the weekend, and the growing frustration among political leaders is palpable as gas stations across the East and South run dry.Granholm’s boss, President Joe Biden, is also facing increasing pressure to marshal federal resources to blunt the growing crisis that threatens to hobble the post-pandemic economic recovery.“This is something that demands really serious federal attention,” Florida Governor Ron DeSantis said on Tuesday, prior to declaring a state of emergency. “The U.S. government needs to be involved, they need to help mitigate this. My fear is, you have these gas shortages, it’s going to cause a lot of problems for people.”Fuel shortages that first emerged in South Carolina have metastasized across a wide swath of the South and East, shutting pumps at convenience stores and truck stops from Tennessee to Tallahassee. Granholm told a media briefing that even if Colonial decides to restart on Wednesday, it’ll take days longer to fully restore shipments.The situation across the southeastern states is “rapidly deteriorating,” Brad Jenkins, a senior vice president at truck-stop owner Pilot, said in an email.The White House relaxed some environmental rules to allow gasoline to flow in from other regions even as some Gulf Coast refiners were forced to curtail output to cope with logjams of fuel they can’t ship to eastern markets.The Colonial pipeline is the most important conduit for distributing gasoline, diesel and jet fuel in the U.S., connecting Gulf Coast refineries to population centers from Atlanta to New York and beyond. Each day, it ships about 2.5 million barrels (105 million gallons), an amount that exceeds the entire oil consumption of Germany.The vital economic lifeline has been shut since late Friday, prompting a run on filling stations by panicked motorists in several states. Even when the pipeline is restored to full service, it’ll take about two weeks for gasoline stored in Houston to reach East Coast filling stations, according to the most recent schedule sent to shippers.For diesel and jet fuel, the transit time is even longer -- about 19 days -- because they are heavier and move more slowly.End Of DayGranholm said she’s been in regular contact with the Colonial CEO in recent days to track the company’s progress in neutralizing the ransomware attack.“By the end of business tomorrow, Colonial will be in a position to make the full restart decision,”’ she said. “But even after that decision is made, it will take a few days to ramp up operations. This pipeline has never been shut down before.”Colonial issued a statement hours later confirming the energy secretary’s account.Meanwhile, fuel shortages continued to worsen. In Atlanta, 20% of filling stations were dry by Tuesday afternoon, according to retail-fuel tracker GasBuddy.School BusesOne Washington D.C.-area fuel distributor warned that “catastrophic” shortages are imminent and called on government officials to order school buses to stay off the roads. More than our days into the crisis, Colonial has only managed to restart a small segment of the pipeline as a stopgap measure.“We have been providing daily and sometimes twice daily updates to our shippers, and have been in close contact with law enforcement and federal agencies to relay information on our restoration efforts,” Colonial’s media relations office said earlier in the day. “We will continue to keep all of our stakeholders informed and appreciate the outpouring of support we have received throughout the industry.”The company’s corporate website went down twice on Tuesday because of issues unrelated to the hack.U.S. average retail gasoline prices have risen to their highest since late 2014 due to the disruption, almost touching $3 a gallon. That could add to broader inflationary pressures as commodity prices from timber to copper also surge. Virginia and North Carolina are under states of emergency.Two of the nation’s largest truck-stop owners --- Love’s Travel Stops & Country Stores Inc. and TravelCenters of America Inc. -- confirmed that fuel is scarce is some states. Both companies said they’re taking extraordinary measures to replenish tanks.Airlines“It’s going to be catastrophic,” said John Patrick, chief operating officer of Liberty Petroleum LLC. “Governors should declare a state of emergency and ask people chasing tanker trucks to gas stations to stay home. School buses stay put.”As part of the Biden administration’s effort to ease the burden on consumers, federal transportation regulators took the first step toward waiving rules that prohibit foreign-flagged and -staffed ships from hauling products from one U.S. port to another.Gasoline isn’t the only oil-derived product under threat. In an effort to bolster jet-fuel inventories, Southwest Airlines Co. has begun flying supplies to Nashville, Tennessee, and other cities. So far, no Southwest flights have been affected by the pipeline closure; rather, the airline said it’s “actively managing” fuel stockpiles.United Airlines Holdings Inc. loaded extra fuel on flights to preserve local supplies in places like Baltimore and Greenville-Spartanburg, South Carolina. Problems are “relatively minor so far,” however, Chief Executive Officer Scott Kirby said at the Resources for the Future Forum.What BloombergNEF Is SayingBloombergNEF expects additional supply this week to come primarily from storage inventories, increased East Coast refinery run, other pipelines and shipments from Canada. Cargoes from Europe could also help alleviate lingering shortages next week.-- Anastacia Dialynas, BNEF analystRead the full report here.Federal environmental regulators are waiving rules that bar the sale of conventional gasoline in areas where reformulated fuel is required. They also will permit the sale of gasoline that doesn’t satisfy requirements meant to help combat smog. The waivers apply to Maryland, Virginia, Pennsylvania and Washington, D.C., through May 18.Emergency shipments of gasoline and diesel from Texas are already on the way to Atlanta and other southeastern cities via trucks, and at least two Gulf Coast refineries began trimming output amid expectations that supplies will begin backing up in the nation’s oil-refining nexus.The national average retail gasoline price rose to $2.985 a gallon, the highest since November 2014, according to auto club AAA. The premium for wholesale gasoline in the New York area expanded to its widest in three months.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. Howell date : 210511 18h26m46s Business Reuters 210511 18h05m UPDATE 1-Samsung BioLogics denies report on Pfizer vaccine production Samsung BioLogics Co Ltd on Wednesday said a report it was in talks with Pfizer Inc to begin production of the U.S. drugmaker's COVID-19 vaccine in South Korea as early as in August was "not factual." The Korea Economic Daily reported earlier that the biotech arm of Samsung Group had been revamping production lines at its plant in Songdo to produce the Pfizer vaccine, which was jointly developed by BioNTech. Samsung BioLogics said in a one-line filing to the stock exchange that the report was "not factual". World Reuters 210511 18h00m AmCham survey flags potential expatriate exodus from Hong Kong More than 40% of the members of the American Chamber of Commerce in Hong Kong plan to or are considering leaving the financial hub, with most citing discomfort with a sweeping national security law as one reason, a survey showed on Wednesday. The AmCham survey, to which 325, or 24% of the business organisation's members responded between May 5 and May 9, showed 42% of them had considered leaving or planned to leave Hong Kong. About 62% of those looking to leave ticked "the national security law makes me uncomfortable" as one of the reasons. Business Reuters 210511 17h39m Missouri, Tennessee join U.S. states cutting pandemic payments The governors of Missouri and Tennessee are joining five other Republican-led states in ending all federally funded pandemic-related unemployment benefits this summer, saying the extra money is keeping those out of work from rejoining the labor force and making it hard for employers to fill jobs. "While these benefits provided supplementary financial assistance during the height of COVID-19, they were intended to be temporary, and their continuation has instead worsened the workforce issues we are facing," Missouri Gov. Mike Parson said in announcing the decision on Tuesday. It's a contention widely shared by businesses and was behind the U.S. Chamber of Commerce's call Friday to end the aid nationally after a government report showed employers hired only 266,000 in April, about a quarter of what had been expected. World World Politics Business Howell date : 210511 17h26m10s Politics Reuters 210511 17h10m UPDATE 1-U.S. Senate votes to repeal 'true lender' banking rule issued under Trump The U.S. Senate voted on Tuesday to repeal a regulation introduced during former President Donald Trump's administration that Democrats say allows predatory lenders to skirt state consumer protections. Lawmakers voted 52-47 to repeal the "true lender" rule, marking the first time Democrats have rolled back a Trump-era financial rule using the Congressional Review Act, a 1996 law that gives Congress the ability to rescind recently enacted regulations. The White House said in a statement it supported the resolution repealing the rule, which now heads to the Democratic-led House, where it is also expected to pass. Business Reuters 210511 16h58m ConocoPhillips shareholders back proposal to set Scope 3 targets A majority of shareholders at U.S. oil and gas producer ConocoPhillips on Tuesday voted in favor of setting emissions reduction targets that include the use of the company's fuels. ConocoPhillips is among those that so far has outlined net-zero 2050 goals for Scope 1 emissions, which include its own operations, and Scope 2 emissions, which take into account the power generation to run its facilities. "Conoco cannot ignore this request from its shareholders," said Mark van Baal, founder of shareholder advocacy group Follow This, which submitted the proposal. U.S. Bloomberg 210511 16h57m Treasury Rescue Won’t Bail Out Chicago, New Jersey From Debt (Bloomberg) -- The U.S. Treasury Department is sending a message to states and cities that the billions in aid from the American Rescue Plan should provide relief to residents, not their governments’ debt burdens.The department on Monday released guidance on how state and local governments can use $350 billion in funding from President Joe Biden’s $1.9 trillion rescue package. The funds are intended to help states and local governments make up for lost revenue, curb the pandemic, bolster economic recoveries, and support industries hit by Covid-19 restrictions. In a surprise to some, these funds can’t be used for debt payments, a potential complication for fiscally stressed governments that had already etched out plans to pay off loans.“It does mean some state and local governments will have to rethink,” Eric Kim, an analyst for Fitch Ratings, said in an interview on Tuesday. While “$350 billion is a lot of money,” some of the restrictions “were maybe not anticipated.”Biden’s rescue package seeks to shore up the finances of states and municipalities that have been on the front lines of the government response to the outbreak. While municipal tax collections initially plunged at the start of the pandemic, the majority of U.S. states have seen revenue recover to pre-pandemic levels. That’s left governors and mayors grappling with how to best spend the aid. Several officials, including leaders in Illinois, Chicago and New Jersey, had considered using the funds to pay back loans, but this week’s guidance muddles those plans.“Expenses related to financing, including servicing or redeeming notes, would not address the needs of pandemic response or its negative economic impacts,” according to a document from the Treasury. “Such expenses would also not be considered provision of government services, as these financing expenses do not directly provide services or aid to citizens.”Illinois Governor J.B. Pritzker had suggested using some of the state’s $8.1 billion in aid to repay the outstanding $3.2 billion in debt from the Federal Reserve’s emergency lending facility and to reduce unpaid bills. Illinois was the only state to borrow from the Fed last year, tapping it twice. On Tuesday, Jordan Abudayyeh, a Pritzker spokesperson, said the administration is “seeking clarification” from the Treasury on whether Illinois can use the aid to pay back the loan from the Fed.“We need to act responsibly with these dollars,” Pritzker said during a press conference Tuesday. “I believe this is an important step toward putting our state’s fiscal house in order.”Before the release of the guidance, Chicago Chief Financial Officer Jennie Huang Bennett had proposed using some of the city’s nearly $1.9 billion from the rescue package to pay off debt taken to close its 2020 deficit. The “guidance represents interim rules that have been put out for comment,” and the city plans to seek clarification and offer comment, according to an emailed statement from the city’s budget office.“These regulations, if not a surprise, certainly make it more difficult for the state of Illinois and city of Chicago to pay down the borrowing,” said Laurence Msall, president of the Civic Federation, a local watchdog group.The rule could also affect New Jersey, which sold nearly $3.7 billion of bonds last year to cover its shortfall during the pandemic. Assembly Republican Leader Jon Bramnick, a Republican, in April had called for Governor Phil Murphy, a Democrat, to use some of the federal aid to pay down the state’s debt.“The guidance is interim and not yet final, and we will continue to evaluate the allowable uses of ARP funds in conjunction with State needs,” said Melinda Caliendo, a spokesperson for the state treasury.The Treasury rules also restrict using the aid to replenish reserves or rainy day funds. Industry groups are taking a close look and planning to give feedback to the Treasury on its guidance and the department is asking for comments on its 151-page document on the interim rules for the funds.“It’s a living, breathing document,” said Irma Esparza Diggs, director of federal advocacy at the National League of Cities, who said the group is looking at those restrictions and will be talking to its members throughout the coming weeks.For states such as Illinois that want to use the money for debt repayment, the large amount of federal aid still gives them “ample” opportunity to do what investors want to improve creditworthiness, said Ty Schoback, a senior municipal research analyst for Columbia Threadneedle Investments.“We know that within state and local budgets, sources and uses are fairly fungible,” Schoback said. Relieving budget pressure in one area with federal aid can open up resources for other items while remaining fully compliant for the intended use, he said. “I don’t think they will have any trouble.”(Adds Chicago spokesperson’s comment in eighth 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. Business Bloomberg 210511 16h48m U.S. Equity Futures Dip, Asia Set for Weak Open: Markets Wrap (Bloomberg) -- U.S. equity futures slipped Wednesday and Asian stocks were set for a weak open after a drop on Wall Street amid concern that the recovery from the pandemic faces a test from faster inflation as commodities rally.Equity contracts fell in Japan and Australia, but rose earlier in Hong Kong. S&P 500 and Nasdaq 100 futures opened in the red. The S&P 500 dropped for a second day following a record high Friday. Dip buyers helped the tech-heavy Nasdaq 100 erase a loss of almost 2% to finish little changed.Treasury yields advanced and the dollar traded near the lowest levels of this year. Investors are awaiting an inflation report and government debt sales in the U.S. -- events that could trigger another bond selloff. Consumer price inflation is set to accelerate, with the year-on-year comparison amplified by the pandemic shock in 2020.Debate continues over whether price pressures will be persistent enough to force the Federal Reserve to tighten policy sooner than current guidance suggests. A chorus of Fed officials said the U.S. economy is on the road to recovery but still faces risks, and reiterated that it’s premature to discuss pulling back monetary support.“In general there’s this thought that inflation may rear its ugly head,” said JJ Kinahan, chief market strategist at TD Ameritrade. “We see a little bit higher rates -- not significantly -- but a bit higher rates. And I think this struggle between value and growth also continues.”The weaker dollar boosted oil, helping to offset the effects of rising inventories in the U.S. Gulf Coast in response to the Colonial Pipeline shutdown. Copper traded near a record, and the Bloomberg Commodity Spot Index hovered around the highest levels in almost a decade.Here are some key events to watch this week:U.S. CPI report Wednesday is forecast to show prices continued to increase in AprilBank of England Governor Andrew Bailey speaks WednesdayThese are some of the main moves in markets:StocksS&P 500 futures dipped 0.1% as of 7:30 a.m. in Tokyo. The S&P 500 index fell 0.9%.Nasdaq 100 contracts fell 0.1%. The index was little changed.Nikkei 225 futures fell 0.5%Australia’s S&P/ASX 200 Index futures fell 0.6%Hong Kong’s Hang Seng Index futures rose 0.4% earlierCurrenciesThe yen was at 108.63 per dollarThe offshore yuan was at 6.4285 per dollarThe Bloomberg Dollar Spot Index was little changedThe euro traded at $1.2147BondsThe yield on 10-year Treasuries advanced two basis points to 1.62%CommoditiesWest Texas Intermediate crude rose 0.3% to $65.45 a barrelGold was at $1,836.60 an ounceFor 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. Business Bloomberg 210511 16h41m Butterfly Equity Explores Options for Protein Powder Maker Orgain (Bloomberg) -- Food-focused buyout firm Butterfly Equity is exploring options for its protein powder maker Orgain, according to people with knowledge of the matter.The Los Angeles-based private equity firm is working with Goldman Sachs Group Inc. and Bank of America Corp. on a potential sale or an initial public offering, the people said, asking not to be identified because the information is private.Orgain, which makes protein products including powder, drinks and snack bars, is worth about $2 billion, the people said. The company has about $400 million in annual revenue, one of the people said.Butterfly could decide this year on which option to pursue, the people said. Deliberations are ongoing and may not lead to a deal, they added.Representatives for Butterfly, Orgain, Goldman Sachs and Bank of America declined to comment.The food industry’s shift toward healthier products and wellness, already underway before the coronavirus pandemic, has accelerated in the past year.As part of its transition to a better-for-you portfolio, Nestle SA agreed in April to buy the nutritional supplement company Bountiful Co. for $5.75 billion. On Monday, it said it was acquiring hydration tablet maker Nuun & Co., without disclosing terms.Irvine, California-based Orgain was founded in 2009 by physician and cancer survivor Andrew Abraham, according to its website.Butterfly acquired a majority stake in Orgain in a 2019 deal in which the terms weren’t disclosed, according to a statement at the time. Ontario Teachers’ Pension Plan, a limited partner of Butterfly, joined in that transaction as a minority stakeholder.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. U.S. Bloomberg 210511 16h34m NRA’s Bankruptcy Filing Tossed, Putting Gun Group in Peril (Bloomberg) -- The National Rifle Association’s bankruptcy filing was rejected by a Texas judge, leaving it vulnerable to a New York attorney general who is seeking to dissolve the powerful gun group.After a weekslong trial, U.S. Bankruptcy Judge Harlin “Cooter” Hale on Tuesday dismissed the Chapter 11 case and halted a proposal to reincorporate the New York-based association in Texas. New York officials claimed the filing was a bad-faith effort to use the protections of bankruptcy to avoid its lawsuit.The decision means that New York Attorney General Letitia James should have an easier time seizing the NRA’s assets if she wins her court case. James claims that NRA head Wayne LaPierre and others so badly mismanaged the group that it should be shut down.The NRA’s case foundered in part because the gun lobby acknowledged that it wasn’t having financial difficulty. The judge wrote that he agreed with the New York attorney general that “the NRA is using this bankruptcy case to address a regulatory enforcement problem, not a financial one.”James, a Democrat, rejected the NRA’s claim that she targeted the organization for “nefarious” political purposes, including her stance on stricter gun control.“Despite the personal attacks, this has nothing to do with the Second Amendment,” she said on a call with reporters. “This is about accountability.”The NRA remains committed to its members and its plan for the future, LaPierre said in a statement, following the ruling. He said the group was disappointed in some aspects of the decision.“We remain an independent organization that can chart its own course, even as we remain in New York to confront our adversaries,” LaPierre said. “The NRA will keep fighting, as we’ve done for 150 years.”The ruling raises the prospect that the NRA may be severely hobbled or completely disappear from the U.S. political landscape, where it has held enormous sway for years, beating back repeated attempts at stricter federal gun laws after mass shootings and building a fervent following closely tied to the Republican Party. It has spent millions of dollars to back candidates for president and Congress and on Supreme Court confirmation fights, and was the largest financial backer of Donald Trump’s successful 2016 campaign.”Given the broad publicity, and specifically what appears to be total disregard for corporate governance in filing for bankruptcy, including not giving notice to its own board of directors, all this is going to come back to haunt current management and the organization,” said Robbin Itkin, a partner at Sklar Kirsh LLP, who wasn’t involved in the case.The NRA filed for bankruptcy in January, several months after James sued in state court seeking to dissolve the organization for the alleged misuse by senior executives of tens of millions of dollars that belonged to the nonprofit.Before he ruled, Hale had offered few clues to how he was leaning. One came after testimony ended, when he posed a question: Can a financially healthy organization file for bankruptcy to protect itself from the risk that another court will find its dissolution “in the best interest of the public?”He answered his own question in his order.“The NRA is a solvent and growing organization using this bankruptcy as a tool to win its dissolution lawsuit, and that is not an appropriate use of bankruptcy,” he wrote.The case now moves back to New York where the state and the NRA will exchange evidence, a process that will last through next year, James said on the call with reporters. She added that the NRA will not be able to incorporate in another state without her approval.Hale issued the ruling after listening to testimony for more than two weeks, which included palace intrigues, shredded notes and excessive personal spending at the NRA. One of the groups allied with New York is the gun lobby’s former ad agency, Ackerman McQueen Inc., which claimed the bankruptcy filing was made in bad faith and should be dismissed.The argument over its financial viability became a central point in the debate over whether the case was properly filed, since bankruptcy is typically reserved for people, companies and other entities that can’t pay their bills. Even the U.S. office that monitors bankruptcies said at the end of the trial that the NRA doesn’t belong in Hale’s court.“At various times in this case, the NRA has provided the Court with several -- and at times slightly different -- reasons for why this bankruptcy case was filed,” the judge wrote. The group’s treasurer and its chief financial officer only learned about the bankruptcy after it was filed.LaPierre acknowledged in video testimony recent lapses in oversight of payments to himself and other insiders. But he also said that a “course correction” he launched in 2017 had fixed many governance problems.The judge didn’t buy that.“Some of the conduct that gives the court concern is still ongoing,” Hale wrote. “Mr. LaPierre is still making additional financial disclosures. There are also lingering issues of secrecy and a lack of transparency.”The case is National Rifle Association of America, 21-bk-30085, U.S. Bankruptcy Court, Northern District of Texas (Dallas).(Michael R. Bloomberg, founder of Bloomberg News parent Bloomberg LP, is a donor to candidates and groups that support gun control, including Everytown for Gun Safety.)Read MoreNRA Seeks to Escape N.Y. Pressure by Filing Bankruptcy in TexasNRA Must Face New York Fraud Lawsuit Seeking to Dissolve ItNRA’s LaPierre Voiced Fear of Prison Time, Ad Exec Testifies(Updates with James’s comments in fifth 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. Business Bloomberg 210511 16h31m Electronic Arts’ Post-Lockdown Slump Not as Severe as Feared (Bloomberg) -- Electronic Arts Inc.’s sales are holding up better than predicted as the video-game giant navigates a slowdown caused by the end of pandemic lockdowns.Though sales are expected to decrease to $1.25 billion in the fiscal first quarter, excluding some items, that’s above the $1.14 billion analysts projected. The forecast for profit was short of estimates, but the company’s full-year guidance was slightly ahead of what Wall Street predicted.The outlook was upbeat enough to reassure investors. After the stock initially slid in late trading, it recovered to a gain of as much as 3%.Electronic Arts -- and the video-game industry overall -- is hoping for a soft landing after a Covid-fueled sales surge last year. The company’s results come a day after Roblox Corp. said its gaming platform had stayed more robust than expected in April, sending its shares soaring on Tuesday.“Remember, last year’s Q1 was astronomical,” Electronic Arts Chief Financial Officer Blake Jorgensen said in an interview. “It was a huge quarter because of everyone staying at home.”The first-quarter earnings miss is also partly due to costs related to recent acquisitions, such as Glu Mobile, Jorgensen said.Meanwhile, the company has managed to establish social networks within its games, Chief Executive Officer Andrew Wilson said during a conference call. That should help maintain sales even as gamers head back to in-person schools and offices.“We don’t think anything goes back to what it was before -- we think the growth continues,” he said.Apex Legends helped fuel results in the just-completed quarter, which exceeded estimates for sales and profit. The battle-royale game has attracted more than 100 million players to date on consoles and personal computers. And a new version of Battlefield, another key franchise, is slated for release around the holidays -- with promotional trailers coming in June.“Historically they have been conservative around expenses and generally end up outperforming their margin targets,” said Matthew Kanterman, an analyst at Bloomberg Intelligence. “So overall there’s a lot of encouraging factors.Electronic Arts may continue to be acquisitive. “We are always looking for great mobile properties, great talent that could help us extend our skills in things like sports,” Jorgensen said.In May, EA bought baseball-game studio Metalhead Software, and in April it closed its acquisition of Glu Mobile, the mobile-gaming company. In February, Electronic Arts completed its purchase of Codemasters, known for its racing games.The shares climbed as high as $145.63 in extended trading. They had been down 1.6% to $141.36 this year through Tuesday’s close.(Updates share reaction starting 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. Howell date : 210511 16h25m33s Business Yahoo Finance 210511 16h01m Here's why this trader is shorting Apple stock and buying gold Breaking down a short opportunity in the Nasdaq and its biggest component Apple. Business Yahoo Finance Video 210511 15h51m Biz2Credit CEO explains the best cities to start a small business Biz2Credit CEO Rohit Arora joined Yahoo Finance to break down which cities saw the most small business success in 2020. Business Yahoo Finance Video 210511 15h42m Why corn is the latest commodity to boom Sal Gilbertie Teucrium funds Chief Executive Officer and President, joined Yahoo Finance to discuss the commodities boom. U.S. Bloomberg 210511 15h41m Treasury Rescue Won’t Bail Out Chicago, New Jersey From Debt (Bloomberg) -- The U.S. Treasury Department is sending a message to states and cities that the billions in aid from the American Rescue Plan should provide relief to residents, not their governments’ debt burdens.The department on Monday released guidance on how state and local governments can use $350 billion in funding from President Joe Biden’s $1.9 trillion rescue package. The funds are intended to help states and local governments make up for lost revenue, curb the pandemic, bolster economic recoveries, and support industries hit by Covid-19 restrictions. In a surprise to some, these funds can’t be used for debt payments, a potential complication for fiscally stressed governments that had already etched out plans to pay off loans.“It does mean some state and local governments will have to rethink,” Eric Kim, an analyst for Fitch Ratings, said in an interview on Tuesday. While “$350 billion is a lot of money,” some of the restrictions “were maybe not anticipated.”Biden’s rescue package seeks to shore up the finances of states and municipalities that have been on the front lines of the government response to the outbreak. While municipal tax collections initially plunged at the start of the pandemic, the majority of U.S. states have seen revenue recover to pre-pandemic levels. That’s left governors and mayors grappling with how to best spend the aid. Several officials, including leaders in Illinois, Chicago and New Jersey, had considered using the funds to pay back loans, but this week’s guidance muddles those plans.“Expenses related to financing, including servicing or redeeming notes, would not address the needs of pandemic response or its negative economic impacts,” according to a document from the Treasury. “Such expenses would also not be considered provision of government services, as these financing expenses do not directly provide services or aid to citizens.”Illinois Governor J.B. Pritzker had suggested using some of the state’s $8.1 billion in aid to repay the outstanding $3.2 billion in debt from the Federal Reserve’s emergency lending facility and to reduce unpaid bills. Illinois was the only state to borrow from the Fed last year, tapping it twice. On Tuesday, Jordan Abudayyeh, a Pritzker spokesperson, said the administration is “seeking clarification” from the Treasury on whether Illinois can use the aid to pay back the loan from the Fed.“We need to act responsibly with these dollars,” Pritzker said during a press conference Tuesday. “I believe this is an important step toward putting our state’s fiscal house in order.”Before the release of the guidance, Chicago Chief Financial Officer Jennie Huang Bennett had proposed using some of the city’s nearly $1.9 billion from the rescue package to pay off debt taken to close its 2020 deficit. A Chicago spokesperson didn’t have an immediate response to the Treasury’s guidance.“These regulations, if not a surprise, certainly make it more difficult for the state of Illinois and city of Chicago to pay down the borrowing,” said Laurence Msall, president of the Civic Federation, a local watchdog group.The rule could also affect New Jersey, which sold nearly $3.7 billion of bonds last year to cover its shortfall during the pandemic. Assembly Republican Leader Jon Bramnick, a Republican, in April had called for Governor Phil Murphy, a Democrat, to use some of the federal aid to pay down the state’s debt.“The guidance is interim and not yet final, and we will continue to evaluate the allowable uses of ARP funds in conjunction with State needs,” said Melinda Caliendo, a spokesperson for the state treasury.The Treasury rules also restrict using the aid to replenish reserves or rainy day funds. Industry groups are taking a close look and planning to give feedback to the Treasury on its guidance and the department is asking for comments on its 151-page document on the interim rules for the funds.“It’s a living, breathing document,” said Irma Esparza Diggs, director of federal advocacy at the National League of Cities, who said the group is looking at those restrictions and will be talking to its members throughout the coming weeks.For states such as Illinois that want to use the money for debt repayment, the large amount of federal aid still gives them “ample” opportunity to do what investors want to improve creditworthiness, said Ty Schoback, a senior municipal research analyst for Columbia Threadneedle Investments.“We know that within state and local budgets, sources and uses are fairly fungible,” Schoback said. Relieving budget pressure in one area with federal aid can open up resources for other items while remaining fully compliant for the intended use, he said. “I don’t think they will have any trouble.”(Adds New Jersey spokesperson comment in 11th 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. Business Yahoo Finance Video 210511 15h33m Electronic Arts beats Q1 earnings projections Yahoo Finance's Jared Blikre breaks down Electronic Arts' earnings which were relased after the bell on Tuesday. Howell date : 210511 15h24m56s U.S. Bloomberg 210511 15h13m NRA’s Bankruptcy Filing Tossed, Putting Gun Group in Peril (Bloomberg) -- The National Rifle Association’s bankruptcy filing was rejected by a Texas judge, leaving it vulnerable to a New York attorney general who is threatening to dissolve the powerful gun group.After a weeks-long trial, U.S. Bankruptcy Judge Harlin “Cooter” Hale on Tuesday dismissed the Chapter 11 case, which also included a proposal to reincorporate the New York-based association in Texas. New York officials claimed the filing was a bad-faith effort to use the protections of bankruptcy to avoid its lawsuit.The decision means that New York Attorney General Letitia James should have an easier time seizing the NRA’s assets if she wins her court case. James contends that NRA head Wayne LaPierre and others so badly mismanaged the group that it should be shut down.The NRA’s case foundered in part because the gun lobby acknowledged that it wasn’t having financial difficulty. The judge wrote that he agreed with the New York attorney general that “the NRA is using this bankruptcy case to address a regulatory enforcement problem, not a financial one.”James, a Democrat, tweeted that the ruling shows “No one is above the law,” and she said she will continue to work to hold the group accountable. The NRA and its law firm didn’t respond to emails and calls seeking comment.The ruling raises the prospect that the NRA may be severely hobbled or completely disappear from the U.S. political landscape, where it has held enormous sway for years, beating back repeated attempts at stricter federal gun laws after mass shootings and building a fervent following closely tied to the Republican Party. It has spent millions of dollars to back candidates for president and Congress and on Supreme Court confirmation fights, and was the largest financial backer of Donald Trump’s successful 2016 campaign.The NRA filed for bankruptcy in January, several months after James sued in state court seeking to dissolve the organization for the alleged misuse by senior executives of tens of millions of dollars that belonged to the nonprofit.Before he ruled, Hale had offered few clues to how he was leaning. One came after testimony ended, when he posed a question: Can a financially healthy organization file for bankruptcy to protect itself from the risk that another court will find its dissolution “in the best interest of the public?”He answered his own question in his order.“The NRA is a solvent and growing organization using this bankruptcy as a tool to win its dissolution lawsuit, and that is not an appropriate use of bankruptcy,” he wrote.Expense QuestionsFor more than two weeks, Hale listened to testimony about palace intrigues, shredded notes and excessive personal spending at the NRA. One of the groups allied with New York is the gun lobby’s former ad agency, Ackerman McQueen Inc., which claimed the bankruptcy filing was made in bad faith and should be dismissed.The argument over its financial viability became a central point in the debate over whether the case was properly filed, since bankruptcy is typically reserved for people, companies and other entities that can’t pay their bills. Even the U.S. office that monitors bankruptcies said at the end of the trial that the NRA doesn’t belong in Hale’s court.“At various times in this case, the NRA has provided the Court with several -- and at times slightly different -- reasons for why this bankruptcy case was filed,” the judge wrote. The group’s treasurer and its chief financial officer only learned about the bankruptcy after it was filed.LaPierre said in video testimony he launched a “course correction” of the nonprofit’s financial controls in 2017, but also acknowledged there were lapses afterward in the oversight of payments to himself and other insiders.While one possible outcome of the New York lawsuit is dissolution of the NRA, the gun group still has defenses there, the judge said.“The question the court is faced with is whether the existential threat facing the NRA is the type of threat that the Bankruptcy Code is meant to protect against,” Hale wrote in his opinion. “The court believes it is not.”The case is National Rifle Association of America, 21-bk-30085, U.S. Bankruptcy Court, Northern District of Texas (Dallas).(Michael R. Bloomberg, founder of Bloomberg News parent Bloomberg LP, is a donor to candidates and groups that support gun control, including Everytown for Gun Safety.)Read MoreNRA Seeks to Escape N.Y. Pressure by Filing Bankruptcy in TexasNRA Must Face New York Fraud Lawsuit Seeking to Dissolve ItNRA’s LaPierre Voiced Fear of Prison Time, Ad Exec Testifies(Updates with James’s reaction 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. Business Yahoo Finance Video 210511 15h11m Frida CEO on consumer behaviors during COVID-19 Chelsea Hirschhorn, Frida CEO, joined Yahoo Finance Live to discuss how business has been during COVID-19 and her business outlook for the rest of the year. U.S. Reuters 210511 15h08m UPDATE 1-Former UAW president sentenced to 21 months in corruption probe A former president of the United Auto Workers, Dennis Williams, was sentenced to 21 months in prison and fined $10,000 on Tuesday for conspiring to embezzle union funds as part of a larger federal probe of corruption in the union. Williams, 68, is one of 16 people convicted in a wide-ranging probe conducted by the office for the U.S. attorney for the Eastern District of Michigan, which last December reached a deal with the union for independent oversight. “The court’s sentence for former UAW President Williams demonstrates that the very highest level of leadership of the UAW has been held accountable for betraying the trust of the UAW’s membership,” said Acting United States Attorney Saima Mohsin. Business Reuters 210511 15h03m UPDATE 1-U.S. senator asks firms about sales of hard disk drives to Huawei A senior Republican U.S. senator on Tuesday asked the chief executives of Toshiba America Electronic Components, Seagate Technology, and Western Digital Corp if the companies are improperly supplying Huawei with foreign-produced hard disk drives. Senator Roger Wicker, the ranking member of the Commerce Committee, said a 2020 U.S. Commerce Department regulation sought to "tighten Huawei's ability to procure items that are the direct product of specified U.S. technology or software, such as hard disk drives." World Reuters 210511 15h02m Bolivia signs J&J vaccine deal with a twist: someone else would make it Bolivia's government said on Tuesday it had signed a deal for a potential 15 million Johnson & Johnson COVID-19 vaccines but with a twist: another manufacture would make the shots and the country would need the World Trade Organization to waive the drug's patent. The South American country, scrabbling for vaccines like many in the region, said it had applied to the WTO to green-light a vaccine waiver so Canadian company Biolyse Pharma Corp could make the doses. Bolivian trade official Benjamin Blanco told a news conference the move could help the impoverished Andean nation speed up a slow vaccination process. Howell date : 210511 14h24m18s Business Reuters 210511 14h18m UPDATE 1-Chesapeake Energy reports quarterly profit after bankruptcy exit Chesapeake Energy Corp on Tuesday reported a quarterly profit of $295 million in its first earnings after emerging from bankruptcy in February. Once the second-largest U.S. natural gas producer, Chesapeake filed for court protection last June, saddled with more than $9 billion debt from overspending on assets and a sudden decline in oil prices and demand from the pandemic. Politics Yahoo Finance 210511 14h17m Honest taxpayers 'should want more enforcement': Congress debates how to close the tax gap A major piece of President Biden's $1.8 trillion American Families Plan is directing $80 billion to the IRS over the next decade to beef up enforcement and fight tax evasion by corporations and the wealthiest Americans. Health Yahoo Finance 210511 14h10m Scores of Americans are ‘languishing’ at work, says BetterUP CEO The pandemic is causing scores of Americans to "languish" at work, says CEO of the leadership coaching firm BetterUP. Business Bloomberg 210511 14h10m Stocks Slide for Second Day; Treasury Yields Rise: Markets Wrap (Bloomberg) -- Energy, financial and industrials shares led U.S. stocks lower as the pullback centered in the technology sector widened while investors remained on edge over the threat of inflation.The tech-heavy Nasdaq 100 erased a loss of almost 2% to finish little changed as some dip buyers emerged. The benchmark S&P 500 dropped for a second day after setting a record high on Friday. Treasury yields edged up and the dollar traded near the lowest levels of this year.Debate rages over whether the expected jump in price pressures will be enduring enough to force the Federal Reserve into tightening policy sooner than current guidance suggests. Fed Governor Lael Brainard said policy makers must show continued patience as distortions in the post-pandemic boom sort themselves out while the economy is still far from the central bank’s objectives.“I just think that in general there’s this thought that inflation may rear its ugly head,” said JJ Kinahan, chief market strategist at TD Ameritrade. “We see a little bit higher rates, not significantly, but a bit higher rates. And I think this struggle between value and growth also continues at the same time.”Among the biggest pandemic winners, tech stocks whose valuations often depend on earnings prospects far into the future are now at the center of the inflation debate. That was epitomized in Cathie Wood’s Ark Innovation ETF, which has tumbled about 15% so far this year after surging almost 150% in 2020.Read more: Global Tech Rout Deepens as Sector Slides Further From PeaksEven after the declines, the Nasdaq Composite trades at 26 times the 12-month projected profits, while the gauge of European technology shares enjoys a valuation of 29 times.Wednesday’s U.S. inflation report along with a series of U.S. government bond auctions this week are seen as the next factors to deepen or arrest the slide. The latest reading is expected to show an accelerated pace of consumer-price increases, with the year-on-year comparison made starker by the pandemic shock in 2020.“What’s interesting about tech and the selloff is that it comes in the face of stable yields, a Fed that is likely on hold for a while and some very strong earnings,” said Michael Arone, chief investment strategist for the U.S. SPDR exchange-traded fund business at State Street Global Advisors. “Markets seem to be anticipating some time of move in rates and inflation that could potentially be problematic for the tech and growth trade.”Copper prices traded near a record, while iron also rallied. Oil rose as fuel shortages are expanding across several U.S. states in the East Coast and South as filling stations run dry amid the unprecedented pipeline disruption caused by a criminal hack.See here the ML IV Question of the Day: How Far Can Reflation Trades Go?Here are some key events to watch this week:U.S. CPI report Wednesday is forecast to show prices continued to increase in AprilBank of England Governor Andrew Bailey speaks WednesdayThese are some of the main moves in markets:StocksThe S&P 500 fell 0.9% to the lowest since April 22 as of 4 p.m. New York timeThe Nasdaq 100 fell 0.1% to the lowest since April 1The Dow Jones Industrial Average fell 1.4%, more than any closing loss since Feb. 26The MSCI World index fell 1.2%, more than any closing loss since March 4CurrenciesThe Bloomberg Dollar Spot Index was little changed The euro rose 0.2% to $1.2149The British pound rose 0.2% to the highest in about three yearsThe Japanese yen rose 0.1% to 108.66 per dollarBondsThe yield on 10-year Treasuries advanced two basis points, climbing for the fourth straight day, the longest winning streak since March 19Germany’s 10-year yield advanced five basis points, more than any closing gain since March 3Britain’s 10-year yield advanced five basis points, more than any closing gain since March 18CommoditiesWest Texas Intermediate crude rose 0.7% to $65 a barrelGold futures rose 0.1%, climbing for the fifth straight day, the longest winning streak since Jan. 5For 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. Business Yahoo Finance 210511 14h06m Stock market news live updates: Stocks post back-to-back sessions of declines, Dow drops by the most since February Stocks fell Tuesday, with the major indexes adding to Monday's losses as inflation concerns rose. Business Reuters 210511 14h03m FOREX-Dollar holds near 10-week low ahead of inflation report The U.S. dollar hit a 2-1/2-month low early in the New York session, then stabilized around those levels on Tuesday afternoon, the eve of U.S. consumer price data, as investors bet that rising inflation could erode the currency's value. In recent years, rising inflation expectations have helped the dollar because investors assumed the Federal Reserve would hike interest rates in response to higher prices. Howell date : 210511 13h53m42s U.S. Reuters 210511 13h35m U.S. judge dismisses NRA bankruptcy in victory for New York U.S. Bankruptcy Judge Harlin Hale's decision, following a trial over the legitimacy of the NRA's January bankruptcy filing, means the group will remain incorporated in New York. Letitia James, New York's attorney general, had last August filed a lawsuit seeking the dissolution of the NRA, which she accused of corruption and misspending. "The question the court is faced with is whether the existential threat facing the NRA is the type of threat that the Bankruptcy Code is meant to protect against," Hale wrote. Business Bloomberg 210511 13h35m Americans Pay Up for Pricey Steaks Even as Cattle Abound (Bloomberg) -- It turns out a pandemic can do wonders for the economics of beef, and meat companies like Tyson Foods Inc. are reaping the benefits.Currently, there’s plenty of cattle in the U.S. Last year Covid-19 caused meat plants to shut down, and farmers had nowhere to send animals. Ranchers simply left their herds to graze on pasture and multiply.Now add high beef prices to that. Pandemic restrictions are easing, restaurants are reopening, and the meat is in high demand. So far Americans have been willing to pay up for more expensive steaks and burgers.All of that is good news for America’s biggest meat company, who’s in a sweet spot between the cheap cattle and pricey beef. Tyson Foods Inc. on Monday reported record margins of 11% for the meat in its second quarter, up from 3.1% last year. The company’s shares have risen 23% this year, compared with 11% for the S&P 500 Index.Beef could remain a moneymaker for some time. Plants are still operating under capacity because of labor shortages, so ample supplies of cattle will persist into 2022, the company said.“Beef is so strong right now,” JPMorgan Chase & Co. analysts Ken Goldman and Anoori Naughton said in a note. “The spread between beef and cattle remains extremely high.”The favorable backdrop in cattle will help Tyson as it faces thinner returns in chicken and pork. Ranchers fared relatively well during the supply chain disruptions of the pandemic, but hog farmers were forced to cull thousands of animals, poultry producers destroyed eggs and dairy farmers dumped milk. That’s resulted in tighter pork and chicken supplies.Meanwhile, cattle farmers are getting left out of the beef profits, and more headwinds are coming, namely high grain prices. Hog herds have been expanding in China as professional farms replace backyard operations. That’s boosting demand for feed grains because smallholders tended to feed pigs table scraps, while the farms use corn and soy meal. As China makes massive grain purchases off world markets, prices are soaring to eight-year highs.“Looking ahead, we are increasingly concerned about the cattle industry reducing supply, particularly now that corn is approaching $8 a bushel and pasture conditions are the worst in years.,” Goldman and Naughton said. “For the time being, however, cattle remain plentiful, particularly with packers struggling to find labor to run at full capacity.”(Updates with year-to-date growth numbers 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. Business Bloomberg 210511 13h32m NRA Texas Relocation Rejected by Judge Who Dismisses Bankruptcy (Bloomberg) -- The National Rifle Association can’t use bankruptcy to reincorporate to gun-friendly Texas from New York, where it faces a governmental fraud lawsuit, a judge in Dallas ruled.U.S. Bankruptcy Judge Harlin “Cooter” Hale dismissed the NRA’s Chapter 11 case after a weeks-long trial in which New York officials claimed the filing was a bad-faith effort to dodge oversight.The decision means that New York Attorney General Letitia James should have an easier time seizing the NRA’s assets if she wins her lawsuit in New York. In that suit, James argues that NRA head Wayne LaPierre and others so badly mismanaged the group that it should be dissolved. Had the Chapter 11 proceedings continued, Hale could have used his authority as a federal judge to limit what James could do with any NRA property she won control of.(Michael R. Bloomberg, founder of Bloomberg News parent Bloomberg LP, is a donor to candidates and groups that support gun control, including Everytown for Gun Safety.)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. Business Reuters 210511 13h28m Ark's Cathie Wood predicts 'serious correction' in commodities The sell-off in high-growth stocks since the beginning of the year does not signal the end to the tech rally that began during the coronavirus pandemic in 2020, said Ark Invest's Cathie Wood, whose ARK Innovation ETF was the top-performing U.S. equity fund last year. Wood, whose flagship fund suffered its largest outflows on record last week, said in a webinar Tuesday that she sees spiking commodity prices as a sign that businesses are double or triple ordering supplies as they try to restart their global supply lines. Fears of inflation have weighed heavily on growth stocks since the start of the year and helped bolster value stocks, which tend to benefit from rising commodities and higher interest rates. Business Reuters 210511 13h26m TREASURIES-U.S. yields rise as inflation worry simmers Yields on longer-dated Treasuries were up for a third straight day, with the yield on 10-year Treasury note up 2.1 basis points at 1.624%. Investors awaited Wednesday's April consumer price index data to see if the U.S. Federal Reserve will begin to alter its stance on inflation. The Fed has repeatedly maintained that any inflation would be transitory in nature. Business Bloomberg 210511 13h25m Amazon, Most Punished Tech Stocks Stage Rebound After Slump (Bloomberg) -- Amazon.com Inc. and other technology stocks staged a comeback on Tuesday that sent the Nasdaq 100 Stock Index briefly into the green after an ugly start to the trading session driven by growing inflation fears.Software companies with lofty valuations were among the biggest advancers after weeks of losses caused by rising Treasury yields. Splunk Inc., Atlassian Corp. and Zoom Video Communications Inc. were the top gainers in the benchmark, which rallied back from an early 2% decline to trade little changed at 3:23 p.m. in New York.Amazon led the way among the megacaps. The e-commerce giant, which has been the worst performing of the five biggest U.S. technology stocks this month, rose as much as 1.5%. Amazon issued $18.5 billion of bonds on Monday to refinance debt and repurchase stock in its biggest debt sale ever. Facebook Inc. also advanced, rising 0.2% after falling as much as 2.1%.Growing concerns about inflation and rising interest rates have hit stocks with higher valuation multiples particularly hard. The Nasdaq 100 has fallen 5% from a record high nearly a month ago. Tesla Inc. and DocuSign Inc. have lost more than 15% over that span. Both stocks have price-to-annual sales multiples in excess of 15, compared with an average of 5% for the Nasdaq 100.The rebound appeared to signal that investors were heeding recent advice from some Wall Street analysts to take advantage of cheaper prices to add to positions in technology companies that in general have reported strong financial results this earnings season.“This painful selloff in tech has created the opportunity for investors to own the secular tech winners for the next 3-5 years,” Wedbush analyst Dan Ives wrote in a research note on Monday, when the Nasdaq 100 sank 2.6%. “This is not the time that we are throwing in the white towel.”(Updates share moves throughout.)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. World Reuters 210511 13h24m Argentina to get 4 mln AstraZeneca COVID-19 vaccines in May after delays Argentina is set to receive 4 million doses of AstraZeneca Plc's coronavirus vaccine in May, the government said on Tuesday, after long delays to a deal struck late last year stoked tensions in the South American nation. "This will change the course of the second wave of the pandemic in Argentina," Health Minister Carla Vizzotti said in a statement shared by the government. The vaccines are part of a deal Argentina struck last November for some 22.4 million doses of the vaccine developed by AstraZeneca and the University of Oxford. Howell date : 210511 13h23m05s Business Bloomberg 210511 13h08m Gold Set For First Loss in Five Days With Yields Gaining (Bloomberg) -- Gold erased gains, heading for its first loss in five days as bond yields inched up and the dollar pared losses.The yield on the 10-year Treasuries pushed higher as investors remained on edge over the threat of inflation. Rising yields hurt demand for non-interest-bearing bullion. Ebbing losses in the dollar reduced the appeal of bullion as an alternative asset.The drop comes as bullion has been recouping early 2021 losses, posting its biggest weekly gain since November last week after a surprise slowdown in U.S. job growth supported the case for continued economic stimulus and low interest rates. While rising inflation expectations could eventually boost demand for gold as a hedge, the rebound in yields is damping investor interest for now, analysts said.“We’ve seen some profit-taking and a sudden dearth of buyers” after yields rose, said Tai Wong, head of metals derivatives trading at BMO Capital Markets.Spot gold fell as much as 1% before paring losses to trade at $1,834.80 an ounce by 2:22 p.m. in New York, after reaching $1,845.51 on Monday, the highest since Feb. 11. Futures for June delivery on the Comex fell 0.1% to settle at $1,836.10 an ounce. Spot silver advanced, while platinum and palladium slipped.Treasuries faced selling pressure during the U.S. morning as dealers prepared to underwrite first of three auctions this week.“I do think we hold this level around $1,820 for the moment, with $1,800 the real bulwark, and wouldn’t expect a significant test of that area unless tomorrow’s 10-year auction is poor.”April’s disappointing employment report doesn’t change the upbeat outlook for the U.S. labor market amid strong consumer demand, Federal Reserve officials said.Chicago Fed President Charles Evans said the U.S. central bank will need to remain accommodative “until we really get nervous that inflation is just in excess of averaging 2% over time.”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. U.S. Reuters 210511 13h00m FEATURE-'Want the COVID-19 vaccine? Have a U.S. visa?' Latinos travel north for the shot Have a U.S. visa? From Mexico to far-flung Argentina, thousands of Latin Americans are booking flights to the United States to take advantage of one of the world's most successful vaccination campaigns, as rollouts in their own countries sputter. Latin America is one of the regions worst affected by the coronavirus pandemic, with the death toll set to pass 1 million this month, and many do not want to wait any longer for their turn to get vaccinated. Business Reuters 210511 12h54m Mattel turning old Barbies, Matchbox cars and MEGA Bloks into new toys Toymaker Mattel is encouraging kids to return Barbies, Matchbox cars and MEGA Bloks they no longer play with to the company for recycling into new toys. The goal of the company's new 'Playback' program is to recover and reuse materials across all products and packaging by 2030, Mattel said as it announced the program this week. "Mattel's Playback program is a great step," said Jim Silver, CEO of TTPM, a toy industry research firm. Business Bloomberg 210511 12h53m U.S. Sees Less Oil Supply Through 2022 Despite Rising Prices (Bloomberg) -- The U.S reduced its forecast for oil output through 2022 as drillers across the prolific shale patch pledge austerity over the allure of increasing prices.Oil explorers throughout the country will produce 20,000 barrels a day less than previous forecasts for this year, at 11.02 million barrels. Supply next year is set to reach 11.84 million barrels day, down from prior estimate of nearly 11.9 million, the Energy Information Administration said in a report Tuesday. This marks the second straight downward revision for 2021 and 2022 forecasts.The agency’s reduced forecasts come even as U.S. crude futures prices have risen more than 30% this year. In fact, the EIA raised its price projections for West Texas Intermediate oil next year by 25 cents a barrel.Still, pressure from Wall Street investors has put a lid on any potential supply growth, forcing drillers to increase cash flow and dividends to shareholders. In their quarterly earnings calls last month, the largest U.S. drillers, Chevron Corp. and Exxon Mobil Corp., indicated they are holding firm to austerity measures adopted during last year’s pandemic-fueled crisis, easing concerns that recent price recovery would spur another round of runaway production growth.With the U.S. unlikely to return to previous peak output, the Organization of Petroleum Exporting Countries and its allies have moved to roll back part of their supply cuts starting in May. OPEC itself boosted estimates for the call on its output this year by a modest 230,000 barrels a day as supply from the group’s biggest rival declines again.Nonetheless, the EIA expects producers to add new wells while oil prices stay above $55 a barrel, but only enough to offset natural declines from existing wells. Oil supply will also benefit from the new projects in the U.S. Gulf of Mexico, the agency said in its Short-Term Energy Outlook. It added that the nation has fully recovered from February’s cold snap-related supply outages, with volumes rebounding more than 1 million barrels a day to nearly 11 million barrels a day in April.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. Business Yahoo Finance Video 210511 12h51m ‘The U.S. economy much like the global economy has fully recovered’: Strategist Jeffrey Kleintop, Chief Global Investment Strategist at Charles Schwab, joins Yahoo Finance Live to discuss inflation concerns and outlook on the tech sector. Business Bloomberg 210511 12h50m Stocks Slide for Second Day; Treasury Yields Rise: Markets Wrap (Bloomberg) -- Energy and industrials shares led U.S. stocks lower as the pullback that originated in the technology sector widened while investors remained on edge over the threat of inflation.The tech-heavy Nasdaq 100 briefly erased a loss of almost 2% as some dip buyers emerged. The benchmark S&P 500 was still lower for a second day after closing at a record high on Friday. Treasury yields edged up and the dollar traded near the lowest levels of this year.Debate rages over whether the expected jump in price pressures will be enduring enough to force the Federal Reserve into tightening policy sooner than current guidance suggests. Fed Governor Lael Brainard said policy makers must show continued patience as distortions in the post-pandemic boom sort themselves out while the economy is still far from the central bank’s objectives.“I just think that in general there’s this thought that inflation may rear its ugly head,” said JJ Kinahan, chief market strategist at TD Ameritrade. “We see a little bit higher rates, not significantly, but a bit higher rates. And I think this struggle between value and growth also continues at the same time.”Among the biggest pandemic winners, tech stocks whose valuations often depend on earnings prospects far into the future are now at the center of the inflation debate. That was epitomized in Cathie Wood’s Ark Innovation ETF, which has tumbled about 15% so far this year after surging almost 150% in 2020.Read more: Global Tech Rout Deepens as Sector Slides Further From PeaksEven after the declines, the Nasdaq Composite trades at 26 times the 12-month projected profits, while the gauge of European technology shares enjoys a valuation of 29 times.Wednesday’s U.S. inflation report along with a series of U.S. government bond auctions this week are seen as the next factors to deepen or arrest the slide. The latest reading is expected to show an accelerated pace of consumer-price increases, with the year-on-year comparison made starker by the pandemic shock in 2020.“What’s interesting about tech and the selloff is that it comes in the face of stable yields, a Fed that is likely on hold for a while and some very strong earnings,” said Michael Arone, chief investment strategist for the U.S. SPDR exchange-traded fund business at State Street Global Advisors. “Markets seem to be anticipating some time of move in rates and inflation that could potentially be problematic for the tech and growth trade.”Copper prices traded near a record, while iron also rallied. Oil rose as fuel shortages are expanding across several U.S. states in the East Coast and South as filling stations run dry amid the unprecedented pipeline disruption caused by a criminal hack.See here the ML IV Question of the Day: How Far Can Reflation Trades Go?Here are some key events to watch this week:U.S. CPI report Wednesday is forecast to show prices continued to increase in AprilBank of England Governor Andrew Bailey speaks WednesdayThese are some of the main moves in markets:StocksThe S&P 500 fell 1% to the lowest since April 22 as of 2:42 p.m. New York timeThe Nasdaq 100 fell 0.2% to the lowest since March 31The Dow Jones Industrial Average fell 1.5%, more than any closing loss since Feb. 25The MSCI World index fell 1.3%, more than any closing loss since March 4CurrenciesThe Bloomberg Dollar Spot Index was little changedThe euro rose 0.2% to $1.2151The British pound rose 0.2% to the highest in about three yearsThe Japanese yen rose 0.2% to 108.64 per dollarBondsThe yield on 10-year Treasuries advanced two basis points, climbing for the fourth straight day, the longest winning streak since March 19Germany’s 10-year yield advanced five basis points, more than any closing gain since March 3Britain’s 10-year yield advanced five basis points, more than any closing gain since March 18CommoditiesWest Texas Intermediate crude rose 0.5% to $65 a barrelGold futures fell 0.1% to $1,835 an ounce, ending a four-day winning streakFor 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. Howell date : 210511 12h52m28s Business Reuters 210511 12h36m UPDATE 1-Canada taps U.S. dollar global bond market for first time since pandemic Canada has tapped an international bond market for the first time since before the coronavirus crisis, selling $3.5 billion of a 5-year U.S. dollar global bond, a term sheet showed on Tuesday. The bond was priced at 6 basis points over the U.S. Treasury benchmark, matching the spread achieved for Canada's last global bond issue in January 2020. The bond pays a coupon of 0.750% and matures on May 19, 2026. U.S. Bloomberg 210511 12h33m Gas Grows Hard to Find in U.S. South as Pipeline Hack Bites (Bloomberg) -- Fuel shortages are expanding across several U.S. states in the East Coast and South as filling stations run dry amid the unprecedented pipeline disruption caused by a criminal hack.From Tennessee to Florida, convenience stores and corner gas stations are turning away customers as tanks tap out amid panic buying. Even as the White House relaxed some environmental rules to allow gasoline to flow in from other regions, refiners in Texas and Louisiana are curtailing output to cope with logjams of fuel they can’t ship to eastern markets.Although the shortages have not reached the New York metro area, the premiums demanded for wholesale gasoline and diesel in that market jumped to a two-month high, according to data compiled by Bloomberg.One Washington D.C.-area fuel distributor warned that “catastrophic” shortages are imminent and called on government officials to order school buses to stay off the roads. Four days into the crisis, Colonial Pipeline Co. has only managed to restart a small segment of the pipeline as a stopgap measure and doesn’t expect to be able to substantially restore service before the weekend.Beyond that, Colonial has said very little about its next steps, leaving oil refiners and distributors in the dark about what may happen over the next 48 hours. Companies that rely on the pipeline are increasingly frustrated about the lack of transparency, according to a shipper who asked not to be named discussing commercial conversations.“We have been providing daily and sometimes twice daily updates to our shippers, and have been in close contact with law enforcement and federal agencies to relay information on our restoration efforts,” Colonial’s media relations office said in an email. “We will continue to keep all of our stakeholders informed and appreciate the outpouring of support we have received throughout the industry.”U.S. average retail gasoline prices have risen to their highest since late 2014 due to the disruption, almost touching $3 a gallon. That could add to broader inflationary pressures as commodity prices from timber to copper also surge.Two of the nation’s largest truck-stop owners --- Love’s Travel Stops & Country Stores Inc. and TravelCenters of America Inc. -- confirmed that fuel is scarce is some states. Both companies said they’re taking extraordinary measures to replenish tanks. “It’s going to be catastrophic,” said John Patrick, chief operating officer of Liberty Petroleum LLC. “Governors should declare a state of emergency and ask people chasing tanker trucks to gas stations to stay home. School buses stay put.”Meanwhile, federal transportation regulators took the first step toward waiving rules that prohibit foreign-flagged and -staffed ships from hauling products from one U.S. port to another.Total SE and Citgo Petroleum Corp. are among refiners that have reduced fuel production in response to the pipeline shutdown. Others -- including Valero Energy Corp., Phillips 66 and Marathon Petroleum Corp. -- are renting tankers in the Gulf of Mexico to hold excess gasoline and diesel for as long as 40 days, according to people familiar with the matter.Barges, TrucksGasoline isn’t the only oil-derived product under threat. In an effort to bolster jet-fuel inventories, Southwest Airlines Co. has begun flying supplies to Nashville, Tennessee, and other cities. So far, no Southwest flights have been affected by the pipeline closure; rather the airline said it’s “actively managing” fuel stockpiles.The Colonial pipeline is the most important conduit for distributing gasoline, diesel and jet fuel in the U.S., connecting refineries along the Gulf Coast to population centers from Atlanta to New York and beyond. Each day, it ships about 2.5 million barrels (105 million barrels), an amount that exceeds the entire oil consumption of Germany.Five Hours in Line: Gasoline Shortages Expand Across U.S. SouthThe vital economic lifeline has been shut since late Friday. Without the Colonial system, many cities and airports are forced to seek alternative supplies imported by tanker ships, barges or trucks. Even when the pipeline is restored to full service, it’ll take about two weeks for gasoline stored in Houston to reach East Coast filling stations, according to the most recent schedule sent to shippers.For diesel and jet fuel, the transit time is even longer -- about 19 days -- because they are heavier and move more slowly.What BloombergNEF Is SayingBloombergNEF expects additional supply this week to come primarily from storage inventories, increased East Coast refinery run, other pipelines and shipments from Canada. Cargoes from Europe could also help alleviate lingering shortages next week.-- Anastacia Dialynas, BNEF analystRead the full report here.On Monday, the Federal Bureau of Investigation pointed the finger at a ransomware gang known as DarkSide. While cyberattacks are increasingly used around the world as a weapon against geopolitical rivals, there was no indication that the current crisis could boil over internationally. President Joe Biden stopped short of blaming the Kremlin for the attack, despite some evidence that the hackers or the software they used are “in Russia.”Russia has no connection to the cyberattack, Kremlin spokesman Dmitry Peskov told reporters on Tuesday.Dwindling SuppliesFederal environmental regulators are waiving rules that bar the sale of conventional gasoline in areas where reformulated fuel is required. They also will permit the sale of gasoline that doesn’t satisfy requirements meant to help combat smog. The waivers apply to Maryland, Virginia, Pennsylvania and Washington, D.C., through May 18.In New Jersey, closely held Bolkema Fuel Company began topping off its stockpiles as soon as word spread of the Colonial outage.“There is a panic going out, you know, when you hear something like this,” said Vice President John Bolkema. ”I called in an extra driver and said, just run a few extra loads. Let’s pump up the inventory and wait this out.”His supplier increased prices at least three times on Monday as other businesses sought to stock up, and Bolkema’s commercial clients are asking for extra deliveries to avoid running low.Colonial Chief Executive Officer Joe Blount and a top lieutenant assured Deputy Energy Secretary David Turk and state-level officials on Monday that the company has complete operational control of the pipeline and won’t restart shipments until the ransomware has been neutralized.Website DownOn Tuesday, Colonial’s website was down because of an issue unrelated to the hack, a spokesman said.Fuel supplies are dwindling just as the nation’s energy industry was gearing up to meet stronger demand from summer travel. Americans are once again commuting to the office and booking flights after a year of Covid-19 restrictions. Citigroup Inc. said the East Coast is at risk of a “temporary, but major shortage” of fuels due to the Colonial closure.In the first sign of the potential disruption to air travel, American Airlines Group Inc. said it was adjusting two long-haul routes that originate in Charlotte, North Caroline, to add fuel stops. Flights to Hawaii will call in at Dallas-Forth Worth airport, while London-bound aircraft will make a stop in Boston.The U.S. East Coast is losing around 1.2 million barrels a day of gasoline supply due to the disruption, according to a note from industry consultant FGE.Lining UpIn Asheville, North Carolina, Aubrey Clements, a clerk at an Exxon Mobil Corp. station answered the phone with “Hello, I’m currently out of gas.” The Marathon gas station in Elizabethtown had roughly two dozen cars waiting to fuel up, an employee said.Drivers pulling into a station with a sign offering unleaded gasoline for $2.649 per gallon in Manning, South Carolina, were met with pumps covered in yellow and red “out of service” bags.Emergency shipments of gasoline and diesel from Texas are already on the way to Atlanta and other southeastern cities via trucks, and at least two Gulf Coast refineries began trimming output amid expectations that supplies will begin backing up in the nation’s oil-refining nexus.The national average retail gasoline price rose to $2.985 a gallon, the highest since November 2014, according to the American Automobile Association. The premium for wholesale gasoline in the New York area expanded to its widest in three months.The event is just the latest example of critical infrastructure being targeted by ransomware. Hackers are increasingly attempting to infiltrate essential services such as electric grids and hospitals.Ransomware cases involve hackers seeding networks with malicious software that encrypts the data and leaves the machines locked until the victims pay the extortion fee. This would be the biggest attack of its kind on a U.S. fuel pipeline.Learn more about how emergency powers can counter fuel-supply disruptions.The Northeast can secure gasoline shipments from Europe but it will come at an increasing cost the longer the pipeline stays shut.Landlocked cities face the greatest danger of fuel shortages compared with those with access to water-borne deliveries, said Steve Boyd, senior managing director at Houston-based distributor Sun Coast Resources Inc. If the pipeline remains down for many more days, he’s anticipating a “massive surge” in orders.(Adds truck-stop fuel shortages in eighth 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. Business Reuters 210511 12h30m Private-equity backed Atlantic Nickel hires banks to explore options - sources Atlantic Nickel, a Brazilian miner backed by London private equity mining fund Appian Capital Advisory has hired investment banks to explore sale options, capitalising on the increasing demand for metals used in electric batteries, three sources said. Its sale process with Citi and Standard Chartered is the most advanced, with potential buyers currently working on first-round bids, the sources added. The company's meetings with Canadian banks RBC Capital Markets and Bank of Montreal (BOM) focused on exploring a listing, possibly in Toronto, while Goldman Sachs is working on the option of going public by merging with a special-purpose acquisition company (SPAC), the sources also said. Business Reuters 210511 12h26m REFILE-US STOCKS-Wall Street slips as inflation jitters spark broad sell-off Wall Street lost ground on Tuesday as rising commodity prices and labor shortages fueled fears that, despite reassurances from the U.S. Federal Reserve, near-term price spikes could translate into longer-term inflation. Economic data released on Tuesday from the Labor Department showed job openings at U.S. companies jumped to a record high in March, further evidence of the labor shortage hinted by Friday's disappointing employment report. Burrito chain Chipotle Mexican Grill announced it would hike the average hourly wage of its workers to $15, a further sign that the worker shortage in the face of a demand revival could add fuel to the inflation surge. U.S. Bloomberg 210511 12h15m Five Hours in Line: Gasoline Shortages Expand Across U.S. South (Bloomberg) -- The southeastern U.S. is suffering expanding gasoline shortages as nervous motorists race to fill up amid fears that the ongoing shutdown of North America’s largest petroleum pipeline could leave the region stranded without fuel for days.RaceTrac Petroleum Inc. warned motorists that some of its filling stations across the U.S. South are out of fuel as a result of the Colonial Pipeline Co. hack.The shortages are impacting retail outlets in Louisiana, Georgia, Tennessee and Alabama, RaceTrac spokeswoman Megan Shannon said in an email. Fuel outages are spreading from Florida to North Carolina as the shutdown of Colonial’s 2.5 million barrels (105 million gallons) of daily deliveries drags into a fourth day.GasBuddy analyst Patrick DeHaan said that retail gasoline sales rose sharply Monday in Virginia, North Carolina, Georgia, Florida and South Carolina. Nationally demand jumped 20%.Multiple service stations in the Atlanta-area began reporting that they were running out of fuel or would be out later Tuesday.The Marathon station on Riverstone Parkway in Canton, Georgia, 40 miles (64.4 kilometers) north of Atlanta has been out of gas since noon local time Tuesday. Typically, the station sells 1,500 gallons a day, according to clerk Mayank Patel.“We sold 5,000 gallons yesterday, and this morning, we had a little over 3000 gallons left, and I’m out of that, too,” Patel said in a phone interview. A delivery scheduled for last night hasn’t come yet.Sammy Sarothia, the manager of a Chevron Corp. station on Ponce De Leon Avenue in Atlanta said his station will likely be dry this evening.“I’m really low, and I don’t know if deliveries are coming tomorrow,” he said. “I don’t know what I’m going to do. After evening, I’ll have to put a sign: out of gas.”In Virginia and Maryland near Washington D.C., drivers are waiting as long as five hours to fill up their tanks and some motorists are topping off even when its three-quarters full, Liberty Petroleum Corp. Chief Operating Officer John Patrick said in an email.The national average retail price for gasoline rose to $2.985 a gallon on Tuesday, the highest since 2014 and 2.5% above the week-ago level, according to auto club AAA.So far, pump shortages appear to be limited primarily to the Southeast. Sprague Resources LP, a large fuel distributor in the Northeast, isn’t expecting any service interruptions as a result of the Colonial shutdown, spokesperson Shana Hoch said in an email.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. Business Bloomberg 210511 12h50m Stocks Slide for Second Day; Treasury Yields Rise: Markets Wrap (Bloomberg) -- Energy and industrials shares led U.S. stocks lower as the pullback that originated in the technology sector widened while investors remained on edge over the threat of inflation.The tech-heavy Nasdaq 100 briefly erased a loss of almost 2% as some dip buyers emerged. The benchmark S&P 500 was still lower for a second day after closing at a record high on Friday. Treasury yields edged up and the dollar traded near the lowest levels of this year.Debate rages over whether the expected jump in price pressures will be enduring enough to force the Federal Reserve into tightening policy sooner than current guidance suggests. Fed Governor Lael Brainard said policy makers must show continued patience as distortions in the post-pandemic boom sort themselves out while the economy is still far from the central bank’s objectives.“I just think that in general there’s this thought that inflation may rear its ugly head,” said JJ Kinahan, chief market strategist at TD Ameritrade. “We see a little bit higher rates, not significantly, but a bit higher rates. And I think this struggle between value and growth also continues at the same time.”Among the biggest pandemic winners, tech stocks whose valuations often depend on earnings prospects far into the future are now at the center of the inflation debate. That was epitomized in Cathie Wood’s Ark Innovation ETF, which has tumbled about 15% so far this year after surging almost 150% in 2020.Read more: Global Tech Rout Deepens as Sector Slides Further From PeaksEven after the declines, the Nasdaq Composite trades at 26 times the 12-month projected profits, while the gauge of European technology shares enjoys a valuation of 29 times.Wednesday’s U.S. inflation report along with a series of U.S. government bond auctions this week are seen as the next factors to deepen or arrest the slide. The latest reading is expected to show an accelerated pace of consumer-price increases, with the year-on-year comparison made starker by the pandemic shock in 2020.“What’s interesting about tech and the selloff is that it comes in the face of stable yields, a Fed that is likely on hold for a while and some very strong earnings,” said Michael Arone, chief investment strategist for the U.S. SPDR exchange-traded fund business at State Street Global Advisors. “Markets seem to be anticipating some time of move in rates and inflation that could potentially be problematic for the tech and growth trade.”Copper prices traded near a record, while iron also rallied. Oil rose as fuel shortages are expanding across several U.S. states in the East Coast and South as filling stations run dry amid the unprecedented pipeline disruption caused by a criminal hack.See here the ML IV Question of the Day: How Far Can Reflation Trades Go?Here are some key events to watch this week:U.S. CPI report Wednesday is forecast to show prices continued to increase in AprilBank of England Governor Andrew Bailey speaks WednesdayThese are some of the main moves in markets:StocksThe S&P 500 fell 1% to the lowest since April 22 as of 2:42 p.m. New York timeThe Nasdaq 100 fell 0.2% to the lowest since March 31The Dow Jones Industrial Average fell 1.5%, more than any closing loss since Feb. 25The MSCI World index fell 1.3%, more than any closing loss since March 4CurrenciesThe Bloomberg Dollar Spot Index was little changedThe euro rose 0.2% to $1.2151The British pound rose 0.2% to the highest in about three yearsThe Japanese yen rose 0.2% to 108.64 per dollarBondsThe yield on 10-year Treasuries advanced two basis points, climbing for the fourth straight day, the longest winning streak since March 19Germany’s 10-year yield advanced five basis points, more than any closing gain since March 3Britain’s 10-year yield advanced five basis points, more than any closing gain since March 18CommoditiesWest Texas Intermediate crude rose 0.5% to $65 a barrelGold futures fell 0.1% to $1,835 an ounce, ending a four-day winning streakFor 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. Howell date : 210511 12h21m51s Business Bloomberg 210511 12h14m U.S. Stock Selloff Broadens While Tech Fluctuates: Markets Wrap (Bloomberg) -- Energy and industrials shares led U.S. stocks lower as the pullback that originated in the technology sector widened while investors remained on edge over the threat of inflation.The tech-heavy Nasdaq 100 briefly erased a loss of almost 2% as some dip buyers emerged. The benchmark S&P 500 was still lower for a second day after closing at a record high on Friday. Treasury yields edged up and the dollar traded near the lowest levels of this year.Debate rages over whether the expected jump in price pressures will be enduring enough to force the Federal Reserve into tightening policy sooner than current guidance suggests. Fed Governor Lael Brainard said policy makers must show continued patience as distortions in the post-pandemic boom sort themselves out while the economy is still far from the central bank’s objectives.“I just think that in general there’s this thought that inflation may rear its ugly head,” said JJ Kinahan, chief market strategist at TD Ameritrade. “We see a little bit higher rates, not significantly, but a bit higher rates. And I think this struggle between value and growth also continues at the same time.”Among the biggest pandemic winners, tech stocks whose valuations often depend on earnings prospects far into the future are now at the center of the inflation debate. That was epitomized in Cathie Wood’s Ark Innovation ETF, which has tumbled about 15% so far this year after surging almost 150% in 2020.Read more: Global Tech Rout Deepens as Sector Slides Further From PeaksEven after the declines, the Nasdaq Composite trades at 26 times the 12-month projected profits, while the gauge of European technology shares enjoys a valuation of 29 times.Wednesday’s U.S. inflation report along with a series of U.S. government bond auctions this week are seen as the next factors to deepen or arrest the slide. The latest reading is expected to show an accelerated pace of consumer-price increases, with the year-on-year comparison made starker by the pandemic shock in 2020.“What’s interesting about tech and the selloff is that it comes in the face of stable yields, a Fed that is likely on hold for a while and some very strong earnings,” said Michael Arone, chief investment strategist for the U.S. SPDR exchange-traded fund business at State Street Global Advisors. “Markets seem to be anticipating some time of move in rates and inflation that could potentially be problematic for the tech and growth trade.”Copper prices traded near a record, while iron also rallied. Oil rose as fuel shortages are expanding across several U.S. states in the East Coast and South as filling stations run dry amid the unprecedented pipeline disruption caused by a criminal hack.See here the ML IV Question of the Day: How Far Can Reflation Trades Go?Here are some key events to watch this week:U.S. CPI report Wednesday is forecast to show prices continued to increase in AprilBank of England Governor Andrew Bailey speaks WednesdayThese are some of the main moves in markets:StocksThe S&P 500 fell 1% to the lowest since April 22 as of 2:12 p.m. New York timeThe Nasdaq 100 fell 0.3% to the lowest since March 31The Dow Jones Industrial Average fell 1.5%, more than any closing loss since Feb. 25The MSCI World index fell 1.3%, more than any closing loss since March 4CurrenciesThe Bloomberg Dollar Spot Index rose 0%, more than any closing gain since May 4The euro rose 0.2% to $1.2152The British pound rose 0.2% to the highest in about three yearsThe Japanese yen rose 0.1% to 108.65 per dollarBondsThe yield on 10-year Treasuries advanced two basis points, climbing for the fourth straight day, the longest winning streak since March 19Germany’s 10-year yield advanced five basis points, more than any closing gain since March 3Britain’s 10-year yield advanced five basis points, more than any closing gain since March 18CommoditiesWest Texas Intermediate crude rose 0.5% to $65 a barrelGold futures fell 0.2% to $1,834 an ounce, ending a four-day winning streakFor 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. Health Yahoo Finance Video 210511 12h09m COVID-19 booster shot is likely and ‘it’s okay’: Doctor Dr. Andre Campbell, Professor of Surgery of UCSF & ICU Physician and Trauma Surgeon at Zuckerberg San Francisco General Hospital, joins Yahoo Finance’s Kristin Myers and Alexis Christoforous to discuss the latest on the coronavirus pandemic. Business Reuters 210511 12h08m Ubisoft invests in free-to-play games, signals profits might fall French video games company Ubisoft warned operating profit might fall this financial year as the maker of "Assassin's Creed" invests in new titles and laps a surge in gaming at the start of coronavirus lockdowns. However, the company said on Tuesday a strong back catalogue and new releases should help net bookings grow by a "single digit" percentage, after a 46% leap in the year ended March 31. "It is now time to come up with high quality free-to-play games across all our biggest franchises, across all platforms but of course it will take time," Chief Executive Yves Guillemot said on a call with analysts. Politics Yahoo Finance 210511 12h07m Obamacare enrollment jump 'is both good news and bad news' Over 1 million Americans signed up for Obamacare through the Affordable Care Act (ACA) marketplace so far in 2021 amid a special enrollment period (SEP), the Biden administration announced on Tuesday. Business Bloomberg 210511 12h07m Biden Eases Gasoline-Sale Rules as Pressure Mounts After Hacking (Bloomberg) -- The Biden administration moved Tuesday to ease gasoline shortages caused by a ransomware attack on the nation’s largest pipeline network, as concerns grew that spiking fuel prices and supply disruptions could hinder summer travel as the nation recovers from the Covid pandemic.The Environmental Protection Agency waived gasoline volatility requirements in three Mid-Atlantic states and Washington, D.C., to bring more fuel to an area normally well supplied by North America’s largest petroleum pipeline. Hours later, the Department of Transportation took legally required steps before any move to waive the 101-year-old Jones Act to permit foreign tankers to transport gasoline and diesel to East Coast ports.The actions come as filling stations across the East Coast were reporting outages and as Colonial Pipeline Co. had operations disrupted for the fourth day since hackers stole data and locked the company’s computers. They are among several steps President Joe Biden can take to blunt the potential political fallout from fuel shortages and rising prices at the pump just as he’s trying to jump start the economy after the worst pandemic in a century.“We are monitoring supply shortages in parts of the Southeast and are evaluating every action the administration can take to mitigate the impact as much as possible,” White House Press Secretary Jen Psaki said in a statement late Monday. “The president has directed agencies across the federal government to bring their resources to bear to help alleviate shortages where they may occur.”The Biden administration already issued an order Sunday extending the amount of time truck drivers can spend behind the wheel when transporting fuel across 17 states and the District of Columbia.The staggered response so far reflects expectations, said Height Capital Markets analyst Benjamin Salisbury. Fuel waivers are “a fairly standard response to supply disruptions with a lot of precedent.”From Virginia to Florida and Alabama, gas stations are beginning to run out of gasoline, as supplies dwindle and panic buying sets in. North Carolina’s governor declared a state of emergency Monday as tanks ran dry. Airlines and airports were also alternating plans to manage jet fuel stockpiles.The fuel and trucking waivers help illustrate the Biden administration is addressing the shortages, even if the government has limited power to immediately fix them.“It is hard for elected officials to do nothing when pump prices are rising,” said Kevin Book, managing director of ClearView Energy Partners. “The White House looks to be treading lightly.”Colonial Pipeline has said its system will be substantially back in operation by the end of the week. But an extended pipeline disruption could have far-reaching implications for East Coast states dependent on the pipeline, prompting bigger government interventions.Tuesday’s order from the EPA temporarily allows the sale of conventional gasoline in areas where reformulated gasoline is required. It also allows the sale of gasoline that doesn’t satisfy requirements meant to help combat smog in certain areas. The order applies to terminal operators and owners, as well as the distributors and carriers of fuel.After the waiver lapses May 18, fuel manufacturers would be barred again from producing or importing gasoline that doesn’t meet current volatility standards, though fuel in the distribution system can still be sold until it is depleted, the EPA said.The move gives retailers the flexibility to market gasoline that might be available despite the Colonial Pipeline shutdown.“I have determined that an ‘extreme and unusual fuel supply circumstance’ exists that will prevent the distribution of an adequate supply of compliant gasoline to consumers,” EPA Administrator Michael Regan said in a letter to local leaders describing the move.Fuel waivers, commonly used to stem supply disruptions after hurricanes and other disasters, could encourage refiners to produce cheaper, more volatile gasoline that normally is blocked from sale in summertime months. It’s unclear, however, how much help they would be now, without a major pipeline to ferry the fuels to markets up and down the Atlantic Seaboard. Energy analysts say another benefit could come after the Colonial Pipeline restarts, by allowing refiners and blenders to market more varieties of fuel for regions short on gasoline.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. Business Bloomberg 210511 12h02m Canada Sells Its Largest U.S. Dollar Bond Since 2015 (Bloomberg) -- Canada sold $3.5 billion of bonds in its largest sale in the U.S. dollar debt market in more than six years.The North American country priced five-year bonds to yield 6 basis points over U.S. Treasuries, in line with its most recent sale in January 2020, according to people with knowledge of the matter. The transaction received more than $7 billion of orders, said the people, who asked not to be identified because the details are private.The “bond provides funds to supplement and diversify Canada’s liquid foreign reserves,” the Department of Finance said in an statement Monday before the terms of the deal were set.The country, which retains top investment-grade ratings from two out of the three largest credit rating companies, is returning to the international debt markets for the first time since the start of the pandemic as its central bank adopts a relatively hawkish tone. Bank of Canada reduced the pace of its government bond purchases last month, and plans even less intervention later this year, according to projections by market analysts.The central bank cut its federal government bond purchases by C$1 billion to C$3 billion per week in April, and may slow to C$2 billion at its July monetary policy meeting and C$1 billion in September, Laurentian Bank Securities’ economists Sebastien Lavoie and Dominique Lapointe said in a note to investors Tuesday.Canada’s economy is expected to grow 6.1% this year, up from a 5.4% decline in 2020, according to analysts’ consensus compiled by Bloomberg. The survey sees the U.S. economy, Canada’s largest trade and investment partner, expanding by 6.3% in 2021 after a 3.5% contraction in 2020. Even as the economy recovers, Canada’s labor market hit a snag in April as a third wave of lockdowns and Covid-19 restrictions led to job losses.Canada’s bond deal is also the first transaction in the U.S. dollar currency since Fitch Ratings downgraded it to its second highest investment-grade level, citing higher public debt ratios. Canada sold $3.5 billion of 3-year bonds in March 2015.BMO Capital Markets, BofA Securities, J.P. Morgan Chase & Co., Scotiabank and TD Securities arranged today’s deal.(Updates to say the deal is priced.)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. Howell date : 210511 11h51m13s World Reuters 210511 11h40m UPDATE 1-UK calls on EU to show pragmatism over N.Ireland trade Britain called on Tuesday for the European Union to show pragmatism over the issue of Northern Irish trade, which has been disrupted by rules imposed since a Brexit deal agreed between London and Brussels at the end of last year. "We’re committed to working through the issues with the EU urgently and in good faith," British negotiator and junior minister David Frost said in a statement. "I hope they will take a common sense, risk-based approach that enables us to agree a pragmatic way forward that substantially eases the burdens on Northern Ireland." Business Yahoo Finance 210511 11h38m Biden’s unexpected jobs problem There's more evidence jobless workers are earning more through government than they would returning to work. Business Bloomberg 210511 11h35m Oil Edges Higher With Weak Dollar Offsetting Refiner Run Cuts (Bloomberg) -- Oil rose as a weaker dollar lent support and offset a burgeoning pile up of crude in the U.S. Gulf Coast as refineries there cut runs in response to the Colonial Pipeline shutdown.Crude futures in New York rose less than 1% in choppy trade after earlier falling to the lowest intraday level in a week. The dollar has traded steadily weaker Tuesday, which makes commodities priced in the currency more attractive.Colonial Pipeline Co. is working to restart its oil-products system, the largest in the U.S., after a cyberattack shuttered operations. While gasoline stations from Alabama to Virgina report shortages, refiners in the U.S. Gulf are reducing output to avoid a glut in the absence of the pipeline. Some refiners have already chartered ships to store refined products offshore.“The dollar index trading lower explains the slight increase in oil prices,” said Bob Yawger, head of the futures division at Mizuho Securities. The weak dollar may have saved the day for crude oil, which was facing pressure from refiners being forced to store barrels they can’t feed into the pipeline, he said.U.S. crude oil prices are up a modest 1.1% so far this month with coronavirus-induced demand concerns, particularly in India, limiting rallies. Still, the Organization of Petroleum Exporting Countries on Tuesday lifted its forecast for the amount of crude it will need to produce and the group now sees a small decline in U.S. supplies this year, mostly due to the Texas freeze in February.Traders are expecting “a gradual resolution to the Colonial Pipeline shutdown,” according to Louise Dickson, an analyst at consultant Rystad Energy. “The market is again looking to Asia, Covid-19 cases, and the next signals for oil demand outlook.”Meanwhile, the knock on impact of the Colonial disruption is rippling through to everything from refining to shipping. Among processors, Total SE scaled back activity in a key unit at its Port Arthur, Texas, refinery, and Citgo Petroleum Corp. also cut rates at its Lake Charles, Louisiana, plant. There’s been a rush to book oil tankers as traders seek to redress the supply imbalance caused by the stoppage.“We are far from out of the out of the woods with the Colonial situation,” said Kilduff. “A scare among consumers is increasingly likely, where a run on gas stations may develop more broadly, especially if there is no resolution by the end of the week.”The U.S. East Coast has lost about 3.6 million barrels of gasoline supply due to the Colonial Pipeline disruption, with the region losing an additional 1.2 million barrels each day the outage continues, according to FGE.See also: India’s Oil Demand Spared 2020’s Collapse Despite CrisisIn the U.S., crude supplies are expected to have dropped last week, according to a Bloomberg survey. The industry-funded American Petroleum Institute will report its supply tally later Tuesday, while government data will be released on Wednesday.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. World Reuters 210511 11h34m UPDATE 1-Red Cross urges all sides in Gaza conflict to step back The International Committee of the Red Cross (ICRC) called on all sides in the conflict between Israel and Hamas-run Gaza on Tuesday to de-escalate the violence that has killed at least 30 people and reminded them of the rules of war. Israel intensified its air strikes on Gaza as rocket barrages hit Israeli towns for a second day in a deepening conflict in which at least 28 people in the Palestinian enclave and two in Israel have been killed. “The recent rockets in Israel and air strikes in Gaza represent a dangerous escalation of the tensions and violence witnessed over the past days in Jerusalem, including its Old City," Fabrizio Carboni, ICRC regional director for the Middle East, said in a statement. Business Bloomberg 210511 11h31m Enbridge Vows to Keep Oil Moving as Michigan Deadline Nears (Bloomberg) -- Michigan Governor Gretchen Whitmer says Enbridge Inc. has until Wednesday to shut a huge crude pipeline that crosses the Great Lakes. The Canadian company says it’s got the law on its side, and the oil will keep flowing.This week’s standoff is the latest milepost in the increasingly tense dispute over Line 5, a 540,000 barrel-a-day line that supplies half of the oil and propane used by parts of the U.S. Midwest and Ontario.Whitmer argues the pipeline is too exposed to potential accidents where it crosses at the Straits of Mackinac in the northern part of the state. But the two sides are in a court-ordered mediation, and Enbridge plans to keep the line running while that plays out.The stakes are significant. Shutting the pipeline would require tens of thousands of trucks and hundreds of rail cars to transport oil and fuel by road, Enbridge has warned. Homeowners that rely on propane to warm their homes in Michigan could see prices increase. Airports in Detroit and Toronto receive jet fuel from local refineries supplied by Line 5.As the cyberattack on the Colonial Pipeline has shown, the loss of a major pipeline, even temporarily, can roil markets for crude and refined products. Whitmer, who faces a potentially difficult re-election fight next year, is trying to shut the Enbridge line years before a replacement can be built.Canada submitted an amicus brief to a U.S. federal court in Michigan on Tuesday in an effort to boost Enbridge’s case. The document “coveys Canada’s belief that the U.S. federal court is the proper jurisdiction to hear the case between Michigan and Enbridge,” Natural Resources Minister Seamus O’Regan said in an emailed statement.“We intend to continue to operate the line and certainly we’re in compliance with the easement and the law,” Al Monaco, Enbridge’s chief executive officer, said on an earnings call Friday. “Courts are reviewing the state’s challenge to the pipeline and that’s going to take a while. So no decisions, in our view, are imminent.”Read more: Gas Stations Run Dry as Pipeline Races to Recover From HackingThe dispute has soured relations between the U.S. and Canada three months after President Joe Biden, a Whitmer ally, angered Canadians by revoking a permit to the build cross-border Keystone XL pipeline. While the Keystone decision was disappointing, the continued operation of Line 5 is “nonnegotiable,” O’Regan said in an interview last month.Pipelines have become a major battlefront in the fight between the fossil fuel industry and environmentalists concerned about climate change and the impact of oil spills on waterways and indigenous communities. If Whitmer eventually gets her way, a Line 5 shutdown could mark the first time a major in-service oil pipeline is forced to shutter because of environmental concerns.A U.S. judge isn’t expected to rule on whether the case belongs in state or federal court until later this year, so don’t expect the pipeline to stop operating any time soon, Matthew Taylor, an analyst at Tudor Pickering & Holt, said in a note. “We view a near-term shutdown unlikely,” he said.Enbridge plans to address concern about Line 5, originally built in 1953, by building a tunnel under the straits to house a new pipeline. Should the existing one be shut, the company has some capacity on an alternate line that bypasses the Great Lakes “but it’s not going to make a difference,” Monaco said.The governor’s order is unenforcible without a separate order by a judge and there is “no way that’s going to happen” by the May 12 deadline, Joe Comartin, Canada’s consul-general in Detroit, said by phone. What’s more, the case is already before a federal court; any decision supporting the governor’s move would would be appealed in a process that would take years.On Wednesday, pro- and anti-Line 5 protesters are expected to gather in Michigan and there will probably be an exchange of harsh words between Enbridge and Whitmer, but nothing more, Comartin said. Even if the governor’s order were eventually upheld, Canada could invoke a 1970s-era treaty with the U.S. that prevents either government from blocking petroleum flows, he said.(Updates with amicus curiae briefing from Canada, O’Regan statement 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. Business Reuters 210511 11h28m Exclusive: Chevron Phillips Chemical failed to disclose years of U.S. benzene imports - document A Chevron Corp and Phillips 66 petrochemical joint venture imported significant quantities of the toxic chemical benzene into the United States for several years without reporting it to regulators as required by law, according to a company document seen by Reuters. Benzene is a known carcinogen that is used in the production of pesticides, detergents, plastics, and other synthetic materials, and companies must report imports of 25,000 pounds (11,340 kg) or more to help regulators track potential exposure. Chevron Phillips Chemical Company LLC imported "reportable quantities" of the chemical between 2013 and 2020 that it did not immediately disclose to regulators, according to the document, a letter from the company's attorney to non-profit watchdog group Center For Environmental Health dated April 21. Howell date : 210511 11h20m36s Business Reuters 210511 11h08m GLOBAL MARKETS-Inflation woes hobble US stocks, dollar cling to lows U.S. stocks fell on Tuesday as speculation that rising inflation pressure could prompt interest rate hikes sooner rather than later dragged on shares and hobbled the dollar, which struggled at a 2-1/2-month low. Technology stocks were among the biggest losers, mirroring a sell-off in other technology stocks overnight in China, where talk of tighter regulation sent shares skidding. By midday, however, shares had significantly pared losses, with the tech-focused Nasdaq Composite reversing the bulk of its earlier declines after dropping as much as 2% earlier in the session. U.S. Bloomberg 210511 11h05m Gas Pumps Run Dry in U.S. South as Pipeline Shutdown Bites (Bloomberg) -- Motorists across a broad swath of the U.S. East Coast and South are struggling to find gasoline and diesel as filling stations run dry amid the unprecedented pipeline disruption caused by a criminal hack.From Virginia to Louisiana, convenience stores and corner gas stations are turning away customers as tanks tap out amid panic buying. The White House relaxed some environmental rules in a bid to allow gasoline to flow in from other parts of the country.One Washington D.C.-area fuel distributor warned that “catastrophic” shortages are imminent and called on government officials to order school buses to stay off the roads. Four days into the crisis, Colonial Pipeline Co. has only managed to restart a small segment of the pipeline as a stopgap measure and doesn’t expect to be able to substantially restore service before the weekend.Beyond that, Colonial has said very little about its next steps, leaving oil refiners and distributors in the dark about what may happen over the next 48 hours. Companies that rely on the pipeline are increasingly frustrated about the lack of transparency, according to a shipper who asked not to be named discussing commercial conversations.“We have been providing daily and sometimes twice daily updates to our shippers, and have been in close contact with law enforcement and federal agencies to relay information on our restoration efforts,” Colonial’s media relations office said in an email. “We will continue to keep all of our stakeholders informed and appreciate the outpouring of support we have received throughout the industry.”U.S. average retail gasoline prices have risen to their highest since late 2014 due to the disruption, almost touching $3 a gallon. That could add to broader inflationary pressures as commodity prices from timber to copper also surge.“It’s going to be catastrophic,” said John Patrick, chief operating officer of Liberty Petroleum LLC. “Governors should declare a state of emergency and ask people chasing tanker trucks to gas stations to stay home. School buses stay put.”Gasoline isn’t the only oil-derived product under threat. In an effort to bolster jet-fuel inventories, Southwest Airlines Co. has begun flying supplies to Nashville, Tennessee, and other cities. So far, no Southwest flights have been affected by the pipeline closure; rather the airline said it’s “actively managing” fuel stockpiles.The Colonial pipeline is the most important conduit for distributing gasoline, diesel and jet fuel in the U.S., connecting refineries along the Gulf Coast to population centers from Atlanta to New York and beyond. Each day, it ships about 2.5 million barrels (105 million barrels), an amount that exceeds the entire oil consumption of Germany.Five Hours in Line: Gasoline Shortages Expand Across U.S. SouthThe vital economic lifeline has been shut since late Friday. Without the Colonial system, many cities and airports are forced to seek alternative supplies imported by tanker ships, barges or trucks. Even when the pipeline is restored to full service, it’ll take about two weeks for gasoline stored in Houston to reach East Coast filling stations, according to the most recent schedule sent to shippers.For diesel and jet fuel, the transit time is even longer -- about 19 days -- because they are heavier and move more slowly.What BloombergNEF Is SayingBloombergNEF expects additional supply this week to come primarily from storage inventories, increased East Coast refinery run, other pipelines and shipments from Canada. Cargoes from Europe could also help alleviate lingering shortages next week.-- Anastacia Dialynas, BNEF analystRead the full report here.On Monday, the Federal Bureau of Investigation pointed the finger at a ransomware gang known as DarkSide. While cyberattacks are increasingly used around the world as a weapon against geopolitical rivals, there was no indication that the current crisis could boil over internationally. President Joe Biden stopped short of blaming the Kremlin for the attack, despite some evidence that the hackers or the software they used are “in Russia.”Russia has no connection to the cyberattack, Kremlin spokesman Dmitry Peskov told reporters on Tuesday.Dwindling SuppliesFederal environmental regulators are waiving rules that bar the sale of conventional gasoline in areas where reformulated fuel is required. They also will permit the sale of gasoline that doesn’t satisfy requirements meant to help combat smog. The waivers apply to Maryland, Virginia, Pennsylvania and Washington, D.C., through May 18.In New Jersey, closely held Bolkema Fuel Company began topping off its stockpiles as soon as word spread of the Colonial outage.“There is a panic going out, you know, when you hear something like this,” said Vice President John Bolkema. ”I called in an extra driver and said, just run a few extra loads. Let’s pump up the inventory and wait this out.”His supplier increased prices at least three times on Monday as other businesses sought to stock up, and Bolkema’s commercial clients are asking for extra deliveries to avoid running low.Colonial Chief Executive Officer Joe Blount and a top lieutenant assured Deputy Energy Secretary David Turk and state-level officials on Monday that the company has complete operational control of the pipeline and won’t restart shipments until the ransomware has been neutralized.Website DownOn Tuesday, Colonial’s website was down because of an issue unrelated to the hack, a spokesman said.Fuel supplies are dwindling just as the nation’s energy industry was gearing up to meet stronger demand from summer travel. Americans are once again commuting to the office and booking flights after a year of Covid-19 restrictions. Citigroup Inc. said the East Coast is at risk of a “temporary, but major shortage” of fuels due to the Colonial closure.In the first sign of the potential disruption to air travel, American Airlines Group Inc. said it was adjusting two long-haul routes that originate in Charlotte, North Caroline, to add fuel stops. Flights to Hawaii will call in at Dallas-Forth Worth airport, while London-bound aircraft will make a stop in Boston.The U.S. East Coast is losing around 1.2 million barrels a day of gasoline supply due to the disruption, according to a note from industry consultant FGE.Lining UpIn Asheville, North Carolina, Aubrey Clements, a clerk at an Exxon Mobil Corp. station answered the phone with “Hello, I’m currently out of gas.” The Marathon gas station in Elizabethtown had roughly two dozen cars waiting to fuel up, an employee said.Drivers pulling into a station with a sign offering unleaded gasoline for $2.649 per gallon in Manning, South Carolina, were met with pumps covered in yellow and red “out of service” bags. An estimated 7% of gas stations in the state of Virginia were out of fuel as of late Monday, according to GasBuddy analyst Patrick DeHaan.In an 18-minute virtual meeting, Blount said Colonial is working with refiners, marketers and retailers to prevent shortages, according to a person involved with the meeting who wasn’t authorized to speak publicly about the discussion. The pipeline serves 90 U.S. military installations and 26 oil refineries, the person said.Emergency shipments of gasoline and diesel from Texas are already on the way to Atlanta and other southeastern cities via trucks, and at least two Gulf Coast refineries began trimming output amid expectations that supplies will begin backing up in the nation’s oil-refining nexus.The national average retail gasoline price rose to $2.985 a gallon, the highest since November 2014, according to the American Automobile Association. The premium for wholesale gasoline in the New York area expanded to its widest in three months.The event is just the latest example of critical infrastructure being targeted by ransomware. Hackers are increasingly attempting to infiltrate essential services such as electric grids and hospitals. The escalating threats prompted the White House to respond last month with a plan to increase security at utilities and their suppliers. Pipelines are a specific concern because of the central role they play in the U.S. economy.Ransomware cases involve hackers seeding networks with malicious software that encrypts the data and leaves the machines locked until the victims pay the extortion fee. This would be the biggest attack of its kind on a U.S. fuel pipeline.Learn more about how emergency powers can counter fuel-supply disruptions.The Northeast can secure gasoline shipments from Europe but it will come at an increasing cost the longer the pipeline stays shut. In the meantime, fuel producers including Marathon Petroleum Corp. are weighing alternatives for how to ship their products to the Northeast.Landlocked cities face the greatest danger of fuel shortages compared with those with access to water-borne deliveries, said Steve Boyd, senior managing director at Houston-based distributor Sun Coast Resources Inc. If the pipeline remains down for many more days, he’s anticipating a “massive surge” in orders.(Updates with timeline for refilling dry tanks once pipeline is online in 10th 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. Business Bloomberg 210511 10h51m SPAC Mania Gives Way to ‘Meh’ as ETFs Drop Toward All-Time Lows (Bloomberg) -- The once red-hot SPAC market has gone cold.Two of the biggest exchange-traded funds tracking the hundreds of special purpose acquisition companies that popped up over the past year, as the oddball financial structures went from bit player to center stage, are trading at or near all-time lows.The Defiance Next Gen SPAC Derived ETF (SPAK) plunged as much as 4.1% on Tuesday, extending its year-to-date losses at one point to about 20%. Its peer, the Morgan Creek-Exos SPAC Originated ETF (SPXZ), was down 30% since its January launch. The losses shrank as tech dip buyers emerged, but SPACs and other speculative parts of the market still trail the broader indexes.These declines highlight a waning appetite for SPACs amid two key inflection points. A rotation out of growth companies, including likely targets for blank-check firms. And a dissipation of retail dollars -- which many SPACs were tailor-made for -- from the market.“The things that are getting the most pain are the ones that were the most risky to begin with -- they have a ways to go with profitability, valuations were stretched,” said Michael Arone, chief investment strategist for the U.S. SPDR exchange-traded fund business at State Street Global Advisors. “Those are the areas of the market that are likely to sell off more aggressively.”The IPOX SPAC Index (SPAC), which tracks the performance of a broad group of special purpose acquisition companies, has fallen eight out of the last nine sessions and is down more than 20% since a mid-February peak.Included in the selloff have been the blank-check companies tied to the face of the SPAC boom: investor Chamath Palihapitiya.Social Capital Hedosophia Holdings Corp. IV and Social Capital Hedosophia Holdings Corp. VI were at all-time lows Tuesday and close to dipping below the initial $10 unit price. Clover Health Investments Corp., which has already completed a merger, currently trades at about $8 -- below the $10 threshold. Virgin Galactic Holdings Inc., a space tourism business that merged with one of Palihapitiya’s SPACs, is down 27% year to date. And Opendoor Technologies Inc., another SPAC associated with Palihapitiya, has dropped more than 25% this year.Only Social Capital Hedosophia Holdings Corp. V remains positive on the year with a more than 20% return.“Clearly the market was flooded with too many SPACs, and understand that every SPAC is a blank check that now needs to go find a good deal. It needs to find a company that’s worthy of buying,” said Arthur Hogan, chief market strategist at National Securities. “There are over 400 SPACs, publicly traded, that still haven’t announced what deal they’re going to do and that has investors worried that the good private companies that otherwise would have come public in the SPAC process are running thin.”To be sure, the fallout for speculative assets isn’t confined to just SPACs.The Renaissance IPO ETF, which tracks newly public companies, is also under pressure -- the fund fell 1.6% Monday and as much as 3.9% Tuesday morning to reach its lowest level since November.“It’s just simple DCF,” said Max Gokhman, head of asset allocation at Pacific Life Fund Advisors, referring to discounted cash flow. “If your valuation is more dependent on future cash flows, then as yields go up, so does your discount rate, and that means your valuation can drop quite a lot.”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. Business Reuters 210511 10h51m UPDATE 1-Biden to visit Ford EV facility in Michigan next Tuesday U.S. President Joe Biden plans to visit a Ford Motor electric vehicle manufacturing facility in Michigan next week as he makes a push for a $174 billion government boost for electric vehicles and charging stations. The following day, Ford is set to unveil its electric F-150 pickup dubbed the F-150 Lightning at an event. Ford spokeswoman Melissa Miller said the second-largest U.S. automaker was honored to host Biden at its Ford Rouge complex in Dearborn on May 18. Business Reuters 210511 10h50m UPDATE 1-U.S. natgas output, demand to fall for second year in 2021 -EIA U.S. natural gas production and demand will drop for a second year in a row in 2021, the U.S. Energy Information Administration (EIA) said in its Short Term Energy Outlook (STEO) on Tuesday. The EIA projected dry gas production will drop to 91.06 billion cubic feet per day (bcfd) in 2021 from 91.35 bcfd in 2020 before rising to 93.12 bcfd in 2022. Howell date : 210511 10h49m59s Business Yahoo Finance 210511 10h41m Stock market news live updates: Stocks fall as tech rout deepens, Nasdaq extends losses Stocks fell Tuesday morning, with the Nasdaq adding to Monday's losses as technology stocks came under increasing selling pressure as inflation concerns rose. Business Bloomberg 210511 10h32m Oil Wavers With Weak Dollar Offsetting Refiner Run Cuts (Bloomberg) -- Oil flip-flopped as a weaker dollar lent support and offset a burgeoning pile up of crude in the U.S. Gulf Coast as refineries there cut runs in response to the Colonial Pipeline shutdown.Crude futures in New York clung close to $65-a-barrel in choppy trade after earlier falling to the lowest intraday level in a week. The dollar has traded steadily weaker Tuesday, which makes commodities priced in the currency more attractive.Colonial Pipeline Co. is working to restart its oil-products system, the largest in the U.S., after a cyberattack shuttered operations. While gasoline stations from Alabama to Virgina report shortages, refiners in the U.S. Gulf are reducing output to avoid a glut in the absence of the pipeline. Some refiners have already chartered ships to store refined products offshore.“The dollar index trading lower explains the slight increase in oil prices,” said Bob Yawger, head of the futures division at Mizuho Securities. The weak dollar may have saved the day for crude oil, which was facing pressure from refiners being forced to store barrels they can’t feed into the pipeline, he said.U.S. crude oil prices are up a modest 1.1% so far this month with coronavirus-induced demand concerns, particularly in India, limiting rallies. Still, the Organization of Petroleum Exporting Countries on Tuesday lifted its forecast for the amount of crude it will need to produce and the group now sees a small decline in U.S. supplies this year, mostly due to the Texas freeze in February.Traders are expecting “a gradual resolution to the Colonial Pipeline shutdown,” according to Louise Dickson, an analyst at consultant Rystad Energy. “The market is again looking to Asia, Covid-19 cases, and the next signals for oil demand outlook.”Meanwhile, the knock on impact of the Colonial disruption is rippling through to everything from refining to shipping. Among processors, Total SE scaled back activity in a key unit at its Port Arthur, Texas, refinery, and Citgo Petroleum Corp. also cut rates at its Lake Charles, Louisiana, plant. There’s been a rush to book oil tankers as traders seek to redress the supply imbalance caused by the stoppage.“We are far from out of the out of the woods with the Colonial situation,” said Kilduff. “A scare among consumers is increasingly likely, where a run on gas stations may develop more broadly, especially if there is no resolution by the end of the week.”The U.S. East Coast has lost about 3.6 million barrels of gasoline supply due to the Colonial Pipeline disruption, with the region losing an additional 1.2 million barrels each day the outage continues, according to FGE.See also: India’s Oil Demand Spared 2020’s Collapse Despite CrisisIn the U.S., crude supplies are expected to have dropped last week, according to a Bloomberg survey. The industry-funded American Petroleum Institute will report its supply tally later Tuesday, while government data will be released on Wednesday.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. Business Reuters 210511 10h28m Daimler CEO: 'We need an honest conversation" about EVs and jobs If the European Union wants to push a faster shift to zero-emissions cars then Daimler AG is ready, but there needs to be an open debate on the impact electrification will have on auto jobs, the carmaker's top executive said on Tuesday. "It's an ambition that we say yes to," Chief Executive Ola Källenius said during an interview at a Financial Times conference on the future of the car. The EU last month raised its target for cuts in net greenhouse gas emissions to 55% by 2030 from 1990 levels instead of 40% and Europe's automakers will find out in July what their contribution on CO2 emissions is expected to be. U.S. Bloomberg 210511 10h22m Gas Pumps Run Dry in U.S. South as Pipeline Shutdown Bites (Bloomberg) -- Motorists across a broad swath of the U.S. East Coast and South are struggling to find gasoline and diesel as filling stations run dry amid the unprecedented pipeline disruption caused by a criminal hack.From Virginia to Louisiana, convenience stores and corner gas stations are turning away customers as tanks tap out amid panic buying. The White House relaxed some environmental rules in a bid to allow gasoline to flow in from other parts of the country.One Washington D.C.-area fuel distributor warned that “catastrophic” shortages are imminent and called on government officials to order school buses to stay off the roads. Four days into the crisis, Colonial Pipeline Co. has only managed to restart a small segment of the pipeline as a stopgap measure and doesn’t expect to be able to substantially restore service before the weekend.Beyond that, Colonial has said very little about its next steps, leaving oil refiners and distributors in the dark about what may happen over the next 48 hours. Companies that rely on the pipeline are increasingly frustrated about the lack of transparency, according to a shipper who asked not to be named discussing commercial conversations. “We have been providing daily and sometimes twice daily updates to our shippers, and have been in close contact with law enforcement and federal agencies to relay information on our restoration efforts,” Colonial’s media relations office said in an email. “We will continue to keep all of our stakeholders informed and appreciate the outpouring of support we have received throughout the industry.”U.S. average retail gasoline prices have risen to their highest since late 2014 due to the disruption, almost touching $3 a gallon. That could add to broader inflationary pressures as commodity prices from timber to copper also surge.“It’s going to be catastrophic,” said John Patrick, chief operating officer of Liberty Petroleum LLC. “Governors should declare a state of emergency and ask people chasing tanker trucks to gas stations to stay home. School buses stay put.”Gasoline isn’t the only oil-derived product under threat. In an effort to bolster jet-fuel inventories, Southwest Airlines Co. has begun flying supplies to Nashville, Tennessee, and other cities. So far, no Southwest flights have been affected by the pipeline closure; rather the airline said it’s “actively managing” fuel stockpiles.The Colonial pipeline is the most important conduit for distributing gasoline, diesel and jet fuel in the U.S., connecting refineries along the Gulf Coast to population centers from Atlanta to New York and beyond. Each day, it ships about 2.5 million barrels (105 million barrels), an amount that exceeds the entire oil consumption of Germany.Five Hours in Line: Gasoline Shortages Expand Across U.S. SouthThe vital economic lifeline has been shut since late Friday. Without the Colonial system, many cities and airports are forced to seek alternative supplies imported by tanker ships, barges or trucks.What BloombergNEF Is SayingBloombergNEF expects additional supply this week to come primarily from storage inventories, increased East Coast refinery run, other pipelines and shipments from Canada. Cargoes from Europe could also help alleviate lingering shortages next week.-- Anastacia Dialynas, BNEF analystRead the full report here.On Monday, the Federal Bureau of Investigation pointed the finger at a ransomware gang known as DarkSide. While cyberattacks are increasingly used around the world as a weapon against geopolitical rivals, there was no indication that the current crisis could boil over internationally. President Joe Biden stopped short of blaming the Kremlin for the attack, despite some evidence that the hackers or the software they used are “in Russia.”Russia has no connection to the cyberattack, Kremlin spokesman Dmitry Peskov told reporters on Tuesday.Dwindling SuppliesFederal environmental regulators are waiving rules that bar the sale of conventional gasoline in areas where reformulated fuel is required. They also will permit the sale of gasoline that doesn’t satisfy requirements meant to help combat smog. The waivers apply to Maryland, Virginia, Pennsylvania and Washington, D.C., through May 18.In New Jersey, closely held Bolkema Fuel Company began topping off its stockpiles as soon as word spread of the Colonial outage.“There is a panic going out, you know, when you hear something like this,” said Vice President John Bolkema. ”I called in an extra driver and said, just run a few extra loads. Let’s pump up the inventory and wait this out.”His supplier increased prices at least three times on Monday as other businesses sought to stock up, and Bolkema’s commercial clients are asking for extra deliveries to avoid running low.Colonial Chief Executive Officer Joe Blount and a top lieutenant assured Deputy Energy Secretary David Turk and state-level officials on Monday that the company has complete operational control of the pipeline and won’t restart shipments until the ransomware has been neutralized.Website DownOn Tuesday, Colonial’s website was down because of an issue unrelated to the hack, a spokesman said.Fuel supplies are dwindling just as the nation’s energy industry was gearing up to meet stronger demand from summer travel. Americans are once again commuting to the office and booking flights after a year of Covid-19 restrictions. Citigroup Inc. said the East Coast is at risk of a “temporary, but major shortage” of fuels due to the Colonial closure.In the first sign of the potential disruption to air travel, American Airlines Group Inc. said it was adjusting two long-haul routes that originate in Charlotte, North Caroline, to add fuel stops. Flights to Hawaii will call in at Dallas-Forth Worth airport, while London-bound aircraft will make a stop in Boston.The U.S. East Coast is losing around 1.2 million barrels a day of gasoline supply due to the disruption, according to a note from industry consultant FGE.Lining UpIn Asheville, North Carolina, Aubrey Clements, a clerk at an Exxon Mobil Corp. station answered the phone with “Hello, I’m currently out of gas.” The Marathon gas station in Elizabethtown had roughly two dozen cars waiting to fuel up, an employee said.Drivers pulling into a station with a sign offering unleaded gasoline for $2.649 per gallon in Manning, South Carolina, were met with pumps covered in yellow and red “out of service” bags. An estimated 7% of gas stations in the state of Virginia were out of fuel as of late Monday, according to GasBuddy analyst Patrick DeHaan.In an 18-minute virtual meeting, Blount said Colonial is working with refiners, marketers and retailers to prevent shortages, according to a person involved with the meeting who wasn’t authorized to speak publicly about the discussion. The pipeline serves 90 U.S. military installations and 26 oil refineries, the person said.Emergency shipments of gasoline and diesel from Texas are already on the way to Atlanta and other southeastern cities via trucks, and at least two Gulf Coast refineries began trimming output amid expectations that supplies will begin backing up in the nation’s oil-refining nexus.The national average retail gasoline price rose to $2.985 a gallon, the highest since November 2014, according to the American Automobile Association. The premium for wholesale gasoline in the New York area expanded to its widest in three months.The event is just the latest example of critical infrastructure being targeted by ransomware. Hackers are increasingly attempting to infiltrate essential services such as electric grids and hospitals. The escalating threats prompted the White House to respond last month with a plan to increase security at utilities and their suppliers. Pipelines are a specific concern because of the central role they play in the U.S. economy.Ransomware cases involve hackers seeding networks with malicious software that encrypts the data and leaves the machines locked until the victims pay the extortion fee. This would be the biggest attack of its kind on a U.S. fuel pipeline.Learn more about how emergency powers can counter fuel-supply disruptions.The Northeast can secure gasoline shipments from Europe but it will come at an increasing cost the longer the pipeline stays shut. In the meantime, fuel producers including Marathon Petroleum Corp. are weighing alternatives for how to ship their products to the Northeast.Landlocked cities face the greatest danger of fuel shortages compared with those with access to water-borne deliveries, said Steve Boyd, senior managing director at Houston-based distributor Sun Coast Resources Inc. If the pipeline remains down for many more days, he’s anticipating a “massive surge” in orders.(Updates with Colonial’s response to frustrated customer in fifth 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. Business Bloomberg 210511 10h20m Oatly Sees Valuation Possibly Over $10 Billion as U.S. IPO Nears (Bloomberg) -- Oatly Group AB expects to raise as much as $1.65 billion for itself and its investors in an initial public offering, potentially giving the maker of plant-based food and drink products a total valuation of over $10 billion.The Malmo, Sweden-based company is offering 64.7 million American depositary shares and expects an IPO price of $15 to $17 per ADS, with net proceeds to the company of $976.6 million at the middle of that range, according an amended filing Tuesday. The document adds details to Oatly’s original IPO filing last month.Scottish asset-management firm Baillie Gifford has indicated interest in buying as much as $500 million of the ADSs in the offering, Oatly said.Oatly was started by brothers Rickard and Bjorn Oste. Using technology based on research from Sweden’s Lund University, the company turns fiber-rich oats into liquid food.Oat milk, which was essentially nonexistent in the U.S. before Oatly’s entrance, saw a 151% jump in sales in dollar terms at retail outlets during the 52-week period ended March 13, according to NielsenIQ. The plant-based dairy category as a whole rose 20% during the same period. By sales, oat milk is the second-most popular option after almond milk.In July, Oatly secured $200 million in new capital from investors led by Blackstone Group Inc. The group also included celebrities such as Oprah Winfrey and Jay-Z, as well as Starbucks Corp. founder Howard Schultz. The company was valued at about $2 billion in the round.Oatly said Tuesday that it would use $188.3 million of the IPO proceeds to repay a “sustainability linked loan” agreement with a host of European banks, $10.8 million for a portion of its bridge financing, and the rest for working capital to fund growth.Oatly Chief Executive Officer Toni Petersson’s stake in the company would be worth $137.7 million at the $16 midpoint of the IPO range, according to the filing, and Chief Financial Officer Christian Hanke’s shares would be valued at $13.4 million.Morgan Stanley, JPMorgan Chase & Co. and Credit Suisse Group AG are leading the offering. Oatly plans to list its shares on Nasdaq Global Select Market under the symbol OTLY.(Updates with executives’ stakes in eighth paragraph. An earlier version of this story corrected a reference to Baillie Gifford’s investment status.)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. Business Reuters 210511 10h20m UPDATE 1-Worst-paying blue chip employers bolstered CEO pay in pandemic, report says More than half of 100 companies with the lowest median employee wages in the S&P 500 Index boosted CEO pay by changing the rules for assessing executive performance during the COVID-19 pandemic, according to a report by a left-leaning policy group published on Tuesday. The report from the Institute for Policy Studies found that 51 of these 100 companies, including beverage and snack maker Coca-Cola Co, cruise ship operator Carnival Corp and fast food corporation Yum Brands Inc, reduced median worker pay by 2% to $28,187 on average in 2020 compared to 2019, even as the median compensation for their CEOs rose 29% to $15.3 million. More companies are facing shareholder backlash against their CEO pay this year than last, Reuters has reported. Howell date : 210511 10h19m22s Business Reuters 210511 10h05m YouTube to launch $100 million creator fund for Shorts video feature Alphabet Inc's YouTube on Tuesday announced a $100 million fund to pay content creators who make hit videos on its new short-form video feature Shorts, as YouTube aims to court more influencers. The fund will launch in the coming months and pay creators this year and 2022, YouTube said. Viral app TikTok jump-started the trend of short-form video clips and was quickly copied by other apps such as Facebook-owned Instagram's Reels, Snapchat Spotlight and YouTube Shorts. World Reuters 210511 10h01m UPDATE 1-Myanmar marks 100 days of junta rule with protests, strikes Protesters rallied in towns and cities around Myanmar on Tuesday to denounce its military rulers, 100 days after the generals' overthrow of an elected government pitched the country into its biggest crisis in decades. Demonstrators took part in marches, motorcycle convoys and flash protests to evade security forces, some making three-finger gestures of defiance as anti-coup groups renewed calls for the toppling of a junta that has been condemned around the world for killing hundreds of civilians. Business Bloomberg 210511 09h59m Oil Pares Losses With Weak Dollar Offsetting Refiner Run Cuts (Bloomberg) -- Oil trimmed losses as a weaker dollar lent support and offset a burgeoning pile up of crude in the U.S. Gulf Coast as refineries there cut runs in response to the Colonial Pipeline shutdown.Crude futures in New York flipped flopped between weak gains and losses after earlier falling to the lowest intraday level in a week. The dollar has traded steadily weaker Tuesday, which makes commodities priced in the currency more attractive.Colonial Pipeline Co. is working to restart its oil-products system, the largest in the U.S., after a cyberattack shuttered operations. While gasoline stations from Alabama to Virgina report shortages, refiners in the U.S. Gulf are reducing output to avoid a glut in the absence of the pipeline. Some refiners have already chartered ships to store refined products offshore.“The dollar index trading lower explains the slight increase in oil prices,” said Bob Yawger, head of the futures division at Mizuho Securities. The weak dollar may have saved the day for crude oil, which was facing pressure from refiners being forced to store barrels they can’t feed into the pipeline, he said.U.S. crude oil prices are up a modest 1.1% so far this month with coronavirus-induced demand concerns, particularly in India, limiting rallies. Still, the Organization of Petroleum Exporting Countries on Tuesday lifted its forecast for the amount of crude it will need to produce and the group now sees a small decline in U.S. supplies this year, mostly due to the Texas freeze in February.Traders are expecting “a gradual resolution to the Colonial Pipeline shutdown,” according to Louise Dickson, an analyst at consultant Rystad Energy. “The market is again looking to Asia, Covid-19 cases, and the next signals for oil demand outlook.”Meanwhile, the knock on impact of the Colonial disruption is rippling through to everything from refining to shipping. Among processors, Total SE scaled back activity in a key unit at its Port Arthur, Texas, refinery, and Citgo Petroleum Corp. also cut rates at its Lake Charles, Louisiana, plant. There’s been a rush to book oil tankers as traders seek to redress the supply imbalance caused by the stoppage.“We are far from out of the out of the woods with the Colonial situation,” said Kilduff. “A scare among consumers is increasingly likely, where a run on gas stations may develop more broadly, especially if there is no resolution by the end of the week.”The U.S. East Coast has lost about 3.6 million barrels of gasoline supply due to the Colonial Pipeline disruption, with the region losing an additional 1.2 million barrels each day the outage continues, according to FGE.See also: India’s Oil Demand Spared 2020’s Collapse Despite CrisisIn the U.S., crude supplies are expected to have dropped last week, according to a Bloomberg survey. The industry-funded American Petroleum Institute will report its supply tally later Tuesday, while government data will be released on Wednesday.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. Business Bloomberg 210511 09h58m Oatly Sees Valuation Possibly Over $10 Billion as U.S. IPO Nears (Bloomberg) -- Oatly Group AB expects to raise as much as $1.65 billion for itself and its investors in an initial public offering, potentially giving the maker of plant-based food and drink products a total valuation of over $10 billion.The Malmo, Sweden-based company is offering 64.7 million American depositary shares and expects an IPO price of $15 to $17 per ADS, with net proceeds to the company of $976.6 million at the middle of that range, according an amended filing Tuesday. The document adds details to Oatly’s original IPO filing last month.Scottish asset-management firm Baillie Gifford has indicated interest in buying as much as $500 million of the ADSs in the offering, Oatly said.Oatly was started by brothers Rickard and Bjorn Oste. Using technology based on research from Sweden’s Lund University, the company turns fiber-rich oats into liquid food.Oat milk, which was essentially nonexistent in the U.S. before Oatly’s entrance, saw a 151% jump in sales in dollar terms at retail outlets during the 52-week period ended March 13, according to NielsenIQ. The plant-based dairy category as a whole rose 20% during the same period. By sales, oat milk is the second-most popular option after almond milk.In July, Oatly secured $200 million in new capital from investors led by Blackstone Group Inc. The group also included celebrities such as Oprah Winfrey and Jay-Z, as well as Starbucks Corp. founder Howard Schultz. The company was valued at about $2 billion in the round.Oatly said Tuesday that it would use $188.3 million of the IPO proceeds to repay a “sustainability linked loan” agreement with a host of European banks, $10.8 million for a portion of its bridge financing, and the rest for working capital to fund growth.Morgan Stanley, JPMorgan Chase & Co. and Credit Suisse Group AG are leading the offering. Oatly plans to list its shares on Nasdaq Global Select Market under the symbol OTLY.(Corrects reference to Baillie Gifford’s investment status 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. U.S. Bloomberg 210511 09h54m Five Hours in Line: Gasoline Shortages Expand Across U.S. South (Bloomberg) -- The southeastern U.S. is suffering expanding gasoline shortages as nervous motorists race to fill up amid fears that ongoing shutdown of North America’s largest petroleum pipeline could leave the region stranded without fuel for days.RaceTrac Petroleum Inc. warned motorists that some of its filling stations across the U.S. South are out of fuel as a result of the Colonial Pipeline Co. hack.The shortages are impacting retail outlets in Louisiana, Georgia, Tennessee and Alabama, RaceTrac spokeswoman Megan Shannon said in an email. Fuel outages are spreading from Florida to North Carolina as the shutdown of Colonial’s 2.5 million barrels (105 million gallons) of daily deliveries drags into a fourth day.GasBuddy analyst Patrick DeHaan said that retail gasoline sales rose sharply Monday in Virginia, North Carolina, Georgia, Florida and South Carolina. Nationally demand jumped 20%.In Virginia and Maryland near Washington D.C., drivers are waiting as much as five hours to fill up their tanks and some motorists are topping off even when its three-quarters full, Liberty Petroleum Corp. Chief Operating Officer John Patrick said in an email.The national average retail priced for gasoline rose to $2.985 a gallon on Tuesday, the highest since 2014 and 2.5% above the week-ago level, according to auto club AAA.So far, pump shortages appear to be limited primarily to the Southeast U.S. Sprague Resources LP, a large fuel distributor in the U.S. Northeast, isn’t expecting any service interruptions as a result of the Colonial shutdown, spokesperson Shana Hoch said in an email. 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. Howell date : 210511 09h48m45s Business Reuters 210511 09h38m FOREX-Dollar hits fresh 10-week lows ahead of inflation report The U.S. dollar dropped to a fresh 2-1/2-month low on Tuesday as investors bet that rising inflation could erode the currency's value, ahead of Wednesday's release of closely watched consumer price data. In recent years, rising inflation expectations have helped the dollar because investors have assumed interest rates would be increased in response to higher prices. A disappointing employment report last week triggered a widespread sell-off in the greenback, and though surging commodity prices have raised concerns of higher inflation in coming months, markets believe the U.S. Federal Reserve will keep rates low and continue purchasing assets. Business Yahoo Finance 210511 09h37m Cleveland Fed President Loretta Mester speaks with Yahoo Finance [Transcript] A full transcript of Cleveland Fed President Loretta Mester's interview with Yahoo Finance on May 11. Business Reuters 210511 09h37m EBay taps into NFT frenzy, allows sale on platform Ebay Inc on Tuesday allowed the sale of non-fungible tokens for digital collectibles like trading cards, images or video clips on its platform, the first e-commerce company to tap into the recent frenzy around NFTs. NFTs, virtual assets that exist on a blockchain ledger, have exploded in popularity this year, as enthusiasts spend enormous sums of money on artwork and other items that exist only online, with some selling for tens of millions of dollars recently at auction houses Christie's and Sotheby's. While multi-million dollar deals, including the $69 million sale of a digital artwork by Beeple in March, have created ripples in the art world, a market for digital collectibles such as NFT trading cards, images or video clips have also thrived alongside. Business Reuters 210511 09h34m U.S. job openings vault to record high in March The Labor Department's monthly Job Openings and Labor Turnover Survey, or JOLTS report, on Tuesday also showed layoffs dropping to record lows in March. The report could put pressure on the White House to review the government-funded unemployment benefits program, including a $300 weekly supplement, which pays more than most minimum-wage jobs. The benefits were extended until early September as part of President Joe Biden's $1.9 trillion COVID-19 pandemic relief package approved in March. Business Yahoo Finance Video 210511 09h30m Russell Investments ‘focused on resilience’: chairman and CEO Michelle Seitz Russell Investment chairman and CEO Michelle Seitz discusses her firm’s recent strategic partnership with Hamilton Lane to accelerate private markets capabilities, as well as current market conditions and her outlook. Howell date : 210511 09h18m08s Business Bloomberg 210511 09h14m Jessica Alba’s Honest Co. Loses Post-IPO Gain in Stock Slide (Bloomberg) -- Honest Co.’s stock slump deepened as the consumer-goods company started by actress Jessica Alba fell below the price set in an initial public offering just last week.The shares tumbled as much as 10% to $15 Tuesday morning in New York, dipping for the first time below the $16 IPO price on May 4. After gaining 44% in the first day of trading, the stock has lost about a third of its value.The slump is an inauspicious start for a company looking to capitalize on elevated demand for packaged-goods and cleaning supplies during the pandemic. Alba, who co-founded the direct-to-consumer brand in 2011 and now serves as chief creative officer, brought some Hollywood glamour to the IPO last week with multiple media appearances.There have been hints that the pandemic boom is starting to fade for packaged goods, with some companies in the space reporting higher costs and uneven demand trends recently. Data and research company New Constructs called Honest “overvalued” in a recent report and said the stock is “worth no more than $7” a share.Honest didn’t immediately respond to a request for comment.Honest specializes in baby products such as diapers and wipes, which accounted for 63% of last year’s sales, as well as household cleaning supplies and personal care items. The Los Angeles-based company, which competes with the likes of Procter & Gamble Co. and Kimberly-Clark Corp., sells through online channels as well as retailers such as Target Corp.Honest generated sales last year of about $301 million, a 28% increase over 2019. It lost $14.5 million in 2020.The company and its stockholders raised $413 million in last week’s share sale. Honest offered 6.5 million shares, with more than 19 million shares sold by investors including private equity firm L Catterton, Institutional Venture Partners, Lightspeed Venture Partners and General Catalyst.(Updates with chart, additional details beginning 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. Business Reuters 210511 09h14m U.S. companies issuing bonds in foreign markets again after pandemic drop - Goldman U.S. companies are starting to issue corporate bonds again in the international market after a drop-off last year due to the pandemic, as firms seek to widen their investor base, Goldman Sachs said in a research note on Tuesday. So far in 2021, foreign markets have captured 12% of bond issuance from U.S.-based companies, up from 7% last year. In 2019, 17% of U.S. corporate date was issued overseas. World Reuters 210511 09h13m UPDATE 1-Austria snubs EU plea to accept Lampedusa migrants Austria on Tuesday rejected a plea for other European Union countries to accept migrants from Italy, following a surge in arrivals on Lampedusa that seems likely to expose deep-seated divisions across the bloc over migration. More than 2,000 mostly African migrants have reached the tiny island off Italy's southern coast by boat since Sunday, overwhelming its reception centre. On Monday, the EU's home affairs commissioner Ylva Johansson called on member states to show solidarity with Italy and support their relocation. U.S. Bloomberg 210511 09h08m Gas Pumps Run Dry in U.S. South as Pipeline Shutdown Bites (Bloomberg) -- Motorists across a broad swath of the U.S. East Coast and South are struggling to find gasoline and diesel as filling stations run dry amid the unprecedented pipeline disruption caused by a criminal hack.From Virginia to Louisiana, convenience stores and corner gas stations are turning away customers as tanks tap out amid panic buying. The White House relaxed some environmental rules in a bid to allow gasoline to flow in from other parts of the country.One Washington D.C.-area fuel distributor warned that “catastrophic” shortages are imminent and called on government officials to order school buses to stay off the roads. Four days into the crisis, Colonial Pipeline Co. has only managed to restart a small segment of the pipeline as a stopgap measure and doesn’t expect to be able to substantially restore service before the weekend.“It’s going to be catastrophic,” said John Patrick, chief operating officer of Liberty Petroleum LLC in Chester, Maryland. “Governors should declare a state of emergency and ask people chasing tanker trucks to gas stations to stay home. School buses stay put.”U.S. average retail gasoline prices have risen to their highest since late 2014 due to the disruption, almost touching $3 a gallon. That could add to broader inflationary pressures as commodity prices from timber to copper also surge.Gasoline isn’t the only oil-derived product under threat. In an effort to bolster jet-fuel inventories, Southwest Airlines Co. has begun flying supplies to Nashville, Tennessee, and other cities. So far, no Southwest flights have been affected by the pipeline closure; rather the airline said it’s “actively managing” fuel stockpiles. The Colonial pipeline is the most important conduit for distributing gasoline, diesel and jet fuel in the U.S., connecting refineries along the Gulf Coast to population centers from Atlanta to New York and beyond. Each day, it ships about 2.5 million barrels (105 million barrels), an amount that exceeds the entire oil consumption of Germany.Five Hours in Line: Gasoline Shortages Expand Across U.S. SouthThe vital economic lifeline has been shut since late Friday. Without the Colonial system, many cities and airports are forced to seek alternative supplies imported by tanker ships, barges or trucks.On Monday, the Federal Bureau of Investigation pointed the finger at a ransomware gang known as DarkSide. While cyberattacks are increasingly used around the world as a weapon against geopolitical rivals, there was no indication that the current crisis could boil over internationally. President Joe Biden stopped short of blaming the Kremlin for the attack, despite some evidence that the hackers or the software they used are “in Russia.”Russia has no connection to the cyberattack, Kremlin spokesman Dmitry Peskov told reporters on Tuesday.Dwindling SuppliesIn New Jersey, closely held Bolkema Fuel Company began topping off its stockpiles as soon as word spread of the Colonial outage.“There is a panic going out, you know, when you hear something like this,” said Vice President John Bolkema. ”I called in an extra driver and said, just run a few extra loads. Let’s pump up the inventory and wait this out.”His supplier increased prices at least three times on Monday as other businesses sought to stock up, and Bolkema’s commercial clients are asking for extra deliveries to avoid running low.Colonial Chief Executive Officer Joe Blount and a top lieutenant assured Deputy Energy Secretary David Turk and state-level officials on Monday that the company has complete operational control of the pipeline and won’t restart shipments until the ransomware has been neutralized.Website DownOn Tuesday, Colonial’s website was down because of an issue unrelated to the hack, a spokesman said.Fuel supplies are dwindling just as the nation’s energy industry was gearing up to meet stronger demand from summer travel. Americans are once again commuting to the office and booking flights after a year of Covid-19 restrictions. Citigroup Inc. said the East Coast is at risk of a “temporary, but major shortage” of fuels due to the Colonial closure.In the first sign of the potential disruption to air travel, American Airlines Group Inc. said it was adjusting two long-haul routes that originate in Charlotte, North Caroline, to add fuel stops. Flights to Hawaii will call in at Dallas-Forth Worth airport, while London-bound aircraft will make a stop in Boston.The U.S. East Coast is losing around 1.2 million barrels a day of gasoline supply due to the disruption, according to a note from industry consultant FGE.Lining UpIn Asheville, North Carolina, Aubrey Clements, a clerk at an Exxon Mobil Corp. station answered the phone with “Hello, I’m currently out of gas.” The Marathon gas station in Elizabethtown had roughly two dozen cars waiting to fuel up, an employee said.Drivers pulling into a station with a sign offering unleaded gasoline for $2.649 per gallon in Manning, South Carolina, were met with pumps covered in yellow and red “out of service” bags. An estimated 7% of gas stations in the state of Virginia were out of fuel as of late Monday, according to GasBuddy analyst Patrick DeHaan.In an 18-minute virtual meeting, Blount said Colonial is working with refiners, marketers and retailers to prevent shortages, according to a person involved with the meeting who wasn’t authorized to speak publicly about the discussion. The pipeline serves 90 U.S. military installations and 26 oil refineries, the person said.Emergency shipments of gasoline and diesel from Texas are already on the way to Atlanta and other southeastern cities via trucks, and at least two Gulf Coast refineries began trimming output amid expectations that supplies will begin backing up in the nation’s oil-refining nexus.The national average retail gasoline price rose to $2.985 a gallon, the highest since November 2014, according to the American Automobile Association. The premium for wholesale gasoline in the New York area expanded to its widest in three months.The event is just the latest example of critical infrastructure being targeted by ransomware. Hackers are increasingly attempting to infiltrate essential services such as electric grids and hospitals. The escalating threats prompted the White House to respond last month with a plan to increase security at utilities and their suppliers. Pipelines are a specific concern because of the central role they play in the U.S. economy.Ransomware cases involve hackers seeding networks with malicious software that encrypts the data and leaves the machines locked until the victims pay the extortion fee. This would be the biggest attack of its kind on a U.S. fuel pipeline.Learn more about how emergency powers can counter fuel-supply disruptions.The Northeast can secure gasoline shipments from Europe but it will come at an increasing cost the longer the pipeline stays shut. In the meantime, fuel producers including Marathon Petroleum Corp. are weighing alternatives for how to ship their products to the Northeast.Landlocked cities face the greatest danger of fuel shortages compared with those with access to water-borne deliveries, said Steve Boyd, senior managing director at Houston-based distributor Sun Coast Resources Inc. If the pipeline remains down for many more days, he’s anticipating a “massive surge” in orders.(Updates with Southwest Airlines’ jet-fuel deliveries 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. Business Reuters 210511 09h03m Boeing 737 MAX deliveries shrink to four planes in April due to electrical issue Boeing Co said on Tuesday 737 MAX jet deliveries fell to just four airplanes in April from 19 in the previous month, as the U.S. planemaker's best-selling aircraft struggles with an electrical problem that has re-grounded part of the fleet. Boeing said last month it was halting deliveries of the jet again due to the electrical problem. The planemaker started delivering the 737 MAX to airlines in December nearly two years after the jet returned to service following a lengthy safety ban. Business Yahoo Finance 210511 09h02m Stock market news live updates: Stocks fall as tech rout deepens, Nasdaq extends losses Stocks fell Tuesday morning, with the Nasdaq adding to Monday's losses as technology stocks came under increasing selling pressure as inflation concerns rose. Howell date : 210511 08h47m32s Business Reuters 210511 08h39m Airlines see sustained cargo boost supporting recovery Robust air cargo demand should remain a bright spot for the airline industry as international travel gradually recovers from the coronavirus crisis, industry body IATA said on Tuesday. International Air Transport Association Director General Willie Walsh said strong freight revenues had been "the difference between life and death for some airlines" as COVID-19 lockdowns brought passenger traffic to a standstill. The mass grounding of passenger planes that normally carry half the world's air freight in their holds has driven cargo prices and revenue higher. Business Yahoo Finance 210511 08h37m Stock market news live updates: Stocks fall as tech rout deepens, Nasdaq extends losses Stocks fell Tuesday morning, with the Nasdaq adding to Monday's losses as technology stocks came under increasing selling pressure as inflation concerns rose. Business Reuters 210511 08h35m UPDATE 1-Airlines see sustained cargo boost supporting recovery Robust air cargo demand should remain a bright spot for the airline industry as international travel gradually recovers from the coronavirus crisis, industry body IATA said on Tuesday. International Air Transport Association Director General Willie Walsh said strong freight revenues had been "the difference between life and death for some airlines" as COVID-19 lockdowns brought passenger traffic to a standstill. The mass grounding of passenger planes that normally carry half the world's air freight in their holds has driven cargo prices and revenue higher. Business Reuters 210511 08h31m British Airways owner IAG boosts liquidity with 825 million euro convertible bond British Airways-owner IAG said on Tuesday it would raise 825 million euros ($1 billion) from a convertible bond, the group's latest move to strengthen its balance sheet as travel remains at very low levels during the pandemic. IAG, which also owns Aer Lingus, Iberia and Vueling, has a weekly cash burn rate of 175 million euros while most of its fleet is grounded due to restrictions, meaning its focus over the past year has been on raising funds. On Tuesday, it said its convertible bond issue would boost its liquidity by around 825 million euros. Business Bloomberg 210511 08h28m Job Openings in U.S. Surge to a Record High 8.12 Million (Bloomberg) -- U.S. job openings surged in March to a record high, underscoring a rapid increase in labor demand as vaccinations accelerate and states reopen their economies.The number of available positions increased to 8.12 million during the month, the highest in data back to 2000, from an upwardly revised 7.53 million in February, the Labor Department’s Job Openings and Labor Turnover Survey, or JOLTS, showed Tuesday. The median estimate in a Bloomberg survey of economists called for 7.5 million openings.The number of vacancies exceeded hires by more than 2 million, the largest gap on record and evidence of current hiring challenges. Many employers say they are unable to fill positions because of ongoing fears of catching the coronavirus, child-care responsibilities and generous unemployment benefits.The number of vacancies is consistent with accelerating demand as the economy reopens, with many companies trying to fill positions lost during the pandemic.In another sign the economy is strengthening, the median single-family home price rose by the most on record in the first quarter.The number of people who voluntarily left their jobs increased to 3.51 million, while the quits rate held at 2.4%. Separations, which include both layoffs and quits, decreased to 5.32 million from 5.43 million as dismissals declined.Restaurant VacanciesThe increase in openings was fairly broad, including more available positions in accommodation and food services, manufacturing and construction. Openings in accommodation and food services approached 1 million in March, the second-most in data to 2000.Hires increased to 6 million in March, while the hires rate rose to 4.2%.The April employment report from the Labor Department last week showed that the U.S. added 266,000 jobs, far below economists estimates for a 1 million gain. The weaker-than-expected payroll increase against the backdrop of record-high job openings indicates that labor supply, rather than demand for workers, is holding back employment growth.Job openings increased in all regions, led by bigger monthly gains in the Midwest and Northeast.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. Howell date : 210511 08h16m54s Business Reuters 210511 08h07m America's mask makers face post-pandemic meltdown The small U.S. manufacturers that rushed to produce face masks over the past year are now stuck with hundreds of millions of unsold face coverings because China is flooding the market with below-cost masks, and most may not survive the end of the pandemic. That's the thrust of a letter to President Joe Biden released Tuesday by a trade group representing 26 small manufacturers that set up production of the badly needed safety items as the health crisis took hold last year. The manufacturers said over half their production would be forced offline in 60 days if they don't get immediate federal aid, costing thousands of jobs. Business Reuters 210511 08h06m Samsung sees pandemic-led appliances boom extending run to rest of year A pandemic-driven boom in home appliance sales will last longer than previously anticipated and extend into the second half of the year, Samsung Electronics Co Ltd's head of the business said. Lee Jae-seung, president of the South Korean company's digital appliances business, told Reuters in an interview that he had originally expected the boom to subside after the first quarter of this year. A buoyant demand outlook from one of the prominent global home appliances makers brings supply-chain issues to the fore, specifically a shortage of semiconductors that has hurt many industries, particularly the automobile sector. Business Yahoo Finance 210511 08h04m Stock market news live updates: Stocks fall as tech rout deepens, Nasdaq extends losses Stocks fell Tuesday morning, with the Nasdaq adding to Monday's losses as technology stocks came under increasing selling pressure as inflation concerns rose. Business Bloomberg 210511 08h02m Ginkgo Agrees to $17.5 Billion Merger With Harry Sloan SPAC (Bloomberg) -- Ginkgo Bioworks Inc., which calls itself an “organism design” company, has agreed to go public in a $17.5 billion merger with a blank-check firm backed by former Hollywood executive Harry Sloan.The Boston-based company, which uses technology to program cells for a potentially wide variety of uses, will combine with Soaring Eagle Acquisition Corp., according to a regulatory statement Tuesday that confirmed an earlier Bloomberg News report.The transaction includes a $775 million private placement led by Baillie Gifford, Putnam Investments and Morgan Stanley Investment Management’s Counterpoint Global arm. Cathie Wood’s Ark Investment Management LLC, Bain Capital’s public equity arm, Bill Gates’s Cascade Investment LLC and T. Rowe Price Associates Inc. are also participating in the fundraising, the statement shows.The deal values Ginkgo at $15 billion, before adding the proceeds raised by the special purpose acquisition company and other investors, according to the statement. The SPAC raised $1.73 billion including so-called greenshoe shares in an initial public offering in February.Soaring Eagle fell 1.3% to $10.18 at 9:33 a.m. in New York Tuesday, giving the company a market value of about $2.1 billion.Programmable BiologyThe underlying principle of Ginkgo’s business is that biology is programmable in a way analogous to computers -- just using the four basic chemical building blocks of DNA sequencing instead of zeros and ones. The company can design mammal, bacteria and yeast cells to serve specific purposes.“The magic of biology is that cells run on digital code similar to a computer, except that instead of 0s and 1s it’s As, Ts, Cs, and Gs,” Jason Kelly, co-founder and chief executive officer of Ginkgo, said in a statement. “Ginkgo’s platform makes it easier to program this code, and we are making this platform available to organizations working to solve our most pressing problems.During the past year, Ginkgo repurposed its technology to read and modify living cells to help address the shortfall of diagnostic testing.Arie Belldegrun, who started Kite Pharma Inc. and Allogene Therapeutics Inc., is co-sponsoring the merger with Soaring Eagle and had bought equity in the SPAC and participated in the private placement. Belldegrun and Sloan, Metro-Goldwyn-Mayer’s former chairman, will join Ginkgo’s board as part of the agreement.“We live in an era of evolution in biology and in life science,” Belldegrun, who was trained as an oncologist, said in an interview. “I believe that the greatest future opportunity of synthetic biology is in the area of biotech -- drug development and drug manufacturing.”Ginkgo was founded by a group of Massachusetts Institute of Technology graduate students and then-professor Tom Knight. Led by Kelly, its investors have included funds and accounts advised by T. Rowe Price, Viking Global Investors and General Atlantic.“If you find a company like Ginkgo, which we call a category of one -- meaning it’s not only the leader in the field but it created the field itself -- those companies make great sense as a SPAC,” Sloan said in an interview.(Updates trading in fifth paragraph; adds CEO comment 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. World Bloomberg 210511 08h00m Australia Ratchets Up Spending in Drive for Maximum Employment (Bloomberg) -- Australia unveiled a big-spending budget that aims to run the economy red hot, joining the U.S. and Europe with a fiscal-monetary tandem that seeks to drive unemployment down to levels rarely seen in the past 50 years.Treasurer Josh Frydenberg’s 2021-2022 fiscal blueprint aligns both economic orthodoxy with the political needs of a government facing an election in the next year. While the budget deficit in the 12 months through June 2022 is wider than expected at 5% of GDP, it leaves the opposition Labor party struggling for a narrative when the conservative incumbent is spending so freely.“By prioritizing economic repair over budget repair, the federal government has made the correct choice,” said Callam Pickering, an economist at global jobs website Indeed Inc. who previously worked at the central bank. “For a decade we’ve had successive federal governments undermine Australia’s economy through inadequate fiscal policy.”Frydenberg is joining international peers such as U.S. Treasury Secretary Janet Yellen in a spending bonanza designed to drive the economy to maximum employment. His program is being buttressed by the Reserve Bank of Australia’s record-low interest rates, yield target and bond-buying program that aim to break a prolonged run of weak inflation.The government is spending heavily on infrastructure, aged care and tax breaks for households and businesses. But it has given itself some wriggle room for later upgrades to the budget position by taking very conservative iron ore and jobless rate forecasts.Iron Ore, JobsTreasury estimates iron ore will fall back to $55 a ton by the end of March 2022, from more than $200 a ton at present. It also sees 4.75% unemployment in June 2023, a quarter percentage point higher than the RBA’s latest estimate.The budget acknowledges “upside risks” for commodities as industry liaison suggests iron ore could remain elevated for an extended period. “Meanwhile, a stronger recovery in steel production outside of China could also provide further support for iron ore and metallurgical coal prices,” it said.The conservative government’s reorientation to big spender is a dramatic turnaround from just 18 months ago when it was driving toward the first budget surplus in a decade. At the time, Prime Minister Scott Morrison was dismissing calls for additional fiscal measures to support a relatively weak economy.In that spirit, the government has set aside concern about debt for now, reflecting low borrowing costs and a better starting position than global peers.Net debt is expected to be at 34.2% of GDP in June next year and peak just shy of A$1 trillion in June 2025, or 40.9% of GDP. That’s about half the U.S. and U.K. levels and about one-third of Japan’s, according to the Australian government.Yet the road to an election by next May is clouded by a sluggish vaccination rollout. The budget assumes overseas borders will remain closed until the middle of next year, suggesting Morrison will be campaigning for another term while the rollout is still unfolding.Another year of hardship for tourism and education is reflected in the budget allocating A$2.1 billion in support for aviation, tourism, the arts and international education providers.“These incentives alone won’t be enough to secure our economic success,” the Australian Chamber of Commerce and Industry said after the budget’s release. “We are a middle-sized country and rely on open borders -- we need to address our international border restrictions by gradually reopening international travel.”Among other key spending items in Frydenberg’s fiscal blueprint are:A$7.8 billion to extend tax relief to low- and middle-income earning AustraliansA$20.7 billion for the extension of a temporary program for expensing and loss carry-back for assets bought by firms that has already supported a rebound of machinery and equipment investmentA$15.2 billion in new commitments for road and railway projects across Australia$17.7 billion for the employment-intensive aged care sector; andA$1.9 billion for the Covid-19 vaccination strategyThe fiscal recovery outlined in Australia’s budget is occurring as expected, but downside risks remain, underpinning our negative outlook on Australia, S&P Global Ratings said today.“The negative outlook on Australia reflects a substantial deterioration of fiscal headroom at the ‘AAA’ rating level and our view that risks remain tilted toward the downside,” it said in a statement.China RiskAustralia’s success in navigating the economy through the pandemic is clouded by a downward spiral in ties with its largest trading partner, China. Last week China announced it was suspending a ministerial economic dialog, while Australia is reviewing whether to force a Chinese company to sell a lease to a strategically significant port used by the Australian and U.S. militaries.The budget papers acknowledged the threat in a thinly-veiled reference. “Ongoing global trade tensions and the potential for further trade actions continue to pose risks to the outlook for Australian exports,” they said.The government also faces increased pressure to step up efforts to cut greenhouse gas emissions as a consensus emerges among developed nations led by President Joe Biden.The budget response is limited. It sets out A$1.6 billion for priority clean energy technologies.Still, the domestic economy is set to roar and the Australian electorate historically reward governments that demonstrate strong economic management. Treasury forecasts GDP will rise 5.25% this calendar year, before cooling to 2.75% in 2022.“The outlook remains positive, though considerable risks remain,” the budget said. “Australia’s success in containing the health crisis to date has underpinned the economic recovery, but continued growth will rely on the effective containment of any Covid-19 outbreaks in Australia, including those that may arise from any new strains of the virus.”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. World Bloomberg 210511 07h59m New Outbreaks Prompt Return to Restrictions in Taiwan, Singapore (Bloomberg) -- Taiwan announced limits on crowds, following Singapore’s move to restrict foreign workers, in a wave of new restrictions in Asian countries trying to stamp out small outbreaks after months of keeping Covid-19 contained.The new curbs prompted fears that economic growth could stall out, leading to stock sell-offs in both countries this week. Low vaccination rates in both countries are contributing to concerns that their populations could be vulnerable if faster-spreading variants take hold.In Taiwan, indoor gatherings will be limited to fewer than 100 people and outdoor events capped at 500 for the next four weeks, Taiwan’s Centers for Disease Control said in a statement Tuesday. It’s the first time the island has tightened anti-Covid measures since it began easing curbs mid-last year, and comes after the government reported seven new cases in the community and four in travelers from overseas.Singapore -- the city-state that is ranked the best place to be in the coronavirus era by Bloomberg’s Covid Resilience Ranking -- has also been tightening up restrictions amid a sudden recurrence of local infections, limiting social gatherings and upping border curbs. The co-chair of Singapore’s virus task force, Lawrence Wong, said Tuesday that companies looking to bring in foreign workers from higher-risk nations could face delays of more than six months because of the greater vigilance. The country has also begun mass testing all hospital staff in an attempt to fence off infections, after a cluster of cases emerged at a medical center.The two places are among the handful in the world that have virtually eliminated Covid domestically, among them Australia, New Zealand and China -- where cases of the new coronavirus first emerged more than a year ago. The return to tighter curbs risks disrupting what has been months of largely normal social activity in Taiwan and Singapore should the outbreaks persist.Taiwan has been so successful at keeping Covid-19 in check that it’s struggling to persuade its population to get vaccinated, with less than 1% inoculated thus far. Singapore has done better, at 19%, according to the Bloomberg Vaccine Tracker. Higher rates would let both countries confidently open up to international travelers.Zero ToleranceWhile having a zero tolerance approach to infections has meant very few deaths in these places, they’re now lagging countries like the U.S. and Israel on vaccination, which could put them at a disadvantage as parts of the world start to open up to international travel.Read more: Singapore Goes on Defensive as Virus Success Status at RiskAfter an initial outbreak of cases very early in the pandemic, Taiwan has managed to basically keep the virus out, even going more than eight months without a single domestic infection between April and December. The island has had just over 1,200 cases and 12 deaths in total since Covid-19 first emerged.Taiwan’s success has meant it never imposed stringent restrictions internally, like lockdowns. Businesses, government offices and schools have remained open throughout much of the pandemic, although municipal authorities canceled their usual large-scale Lunar New Year holiday celebrations in February as a precaution.Malaysia ResurgenceIn recent weeks, health authorities in Taiwan have been battling a steady rise in infections centered around a hotel used to quarantine pilots for local carrier China Airlines returning from overseas. Investors showed their concern by selling Taiwanese shares, with the benchmark Taiex index falling almost 3.8% Tuesday, the biggest decline among Asian markets. The Taiwan dollar weakened by the most since March 26.Elsewhere in Asia, cases are also coming back, with India now the epicenter of the global crisis, recording more than 329,000 new cases Tuesday. Malaysia is tightening curbs on people’s movements across the country after daily cases exceeded 3,000 this month for the first time since February.The detection of the one case with Indian Covid-19 variant has added to the risk, and Malaysia is struggling with the pace of vaccinations. Less than 3% of the population had completed their vaccination series as of May 9, data compiled by Bloomberg show. That tally trails Indonesia and Singapore, and puts Malaysia at risk of falling short of its vaccination target for the year.Read more: Malaysia Stocks, Currency Decline After Nationwide Virus CurbsThe absence of widespread infections and an export-driven economy meant Taiwan avoided the impact seen in most of the rest of the world from the pandemic. The economy grew 3.1% last year, driven by a surge in demand for Taiwan’s computer chips but also supported by a rebound in consumer spending. The government has hinted in recent weeks it may raise its 2021 gross domestic product forecast to above 5% from its current estimate of 4.6%.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. Business Reuters 210511 07h53m UPDATE 1-Investor Legal & General backs activist in Exxon proxy battle Britain's biggest asset manager, Legal & General, on Tuesday said it will vote for an activist hedge fund's board slate at Exxon Mobil's shareholder meeting later this month, fueling a pitched fight over the oil major's future. Top U.S. oil producer Exxon is battling hedge fund Engine No. 1 over four seats on its 12-member board and the direction of the company. The fund has criticized Exxon's poor returns, spending on fossil fuels and lack of clear plans for the energy transition. Howell date : 210511 07h46m16s U.S. Yahoo Finance 210511 07h39m JPMorgan, CVS, GM, Walgreens join corporate fight against laws targeting transgender kids Corporate America is beginning to speak out against laws targeting transgender people, just as it did with laws curbing voting rights. Business Bloomberg 210511 07h36m Tech-Fueled Selloff Goes Global on Inflation Fears: Markets Wrap (Bloomberg) -- A technology-led selloff that started on Wall Street reverberated across the world as worries over inflation pushed investors to dump expensive stocks. Treasury yields edged higher and the dollar linger near the weakest levels of this year.The tech-heavy Nasdaq 100 Index fell almost 2% at the start of regular trading, while the benchmark S&P 500 slumped for a second day after closing at a record high on Friday. The benchmark for European stocks tumbled the most this year, after its Asian peer posted the biggest drop since March.Debate rages over whether the expected jump in price pressures will be enduring enough to force the Federal Reserve into tightening policy sooner than current guidance suggests. A measure of U.S. inflation expectations reached the highest level since 2006.“What’s interesting about tech and the selloff is that it comes in the face of stable yields, a Fed that is likely on hold for a while and some very strong earnings,” said Michael Arone, chief investment strategist for the U.S. SPDR exchange-traded fund business at State Street Global Advisors. “Markets seem to be anticipating some time of move in rates and inflation that could potentially be problematic for the tech and growth trade.”Among the biggest pandemic winners, tech stocks whose valuations often depend on earnings prospects far into the future are now at the center of the inflation-fueled selloff. That was epitomized in Cathie Wood’s Ark Innovation ETF, which has tumbled almost 20% so far this year after surging almost 150% in 2020.Read more: Global Tech Rout Deepens as Sector Slides Further From PeaksEven after the declines, the Nasdaq trades at 26 times the 12-month projected profits, while the gauge of European technology shares enjoys a valuation of 29 times.Wednesday’s U.S. inflation report along with a series of U.S. government bond auctions this week are seen as the next factors to deepen or arrest the slide. The latest reading is expected to show an accelerated pace of consumer-price increases, with the year-on-year comparison made starker by the pandemic shock in 2020.Copper prices traded near a record, while iron also rallied. Oil dipped as traders monitored progress on reopening the largest U.S. oil-products pipeline, which was paralyzed by a cyberattack, and is expected to be mostly back online by the weekend.See here the MLIV Question of the Day: How Far Can Reflation Trades Go?Here are some key events to watch this week:A range of Fed speakers are due this week, including Governor Lael Brainard on TuesdayOPEC monthly Oil Market Report is published with global demand forecasts and production estimates TuesdayU.S. CPI report Wednesday is forecast to show prices continued to increase in AprilBank of England Governor Andrew Bailey speaks WednesdayThese are some of the main moves in markets:StocksThe S&P 500 fell 1.2%, more than any closing loss since March 18 as of 9:32 a.m. New York timeThe Nasdaq 100 fell 1.7% to the lowest since March 31The Dow Jones Industrial Average fell 0.8%, more than any closing loss since April 22The Stoxx Europe 600 fell 2.3%, more than any closing loss since Dec. 21The MSCI World index fell 1.6%, more than any closing loss since Jan. 29CurrenciesThe Bloomberg Dollar Spot Index fell 0%, falling for the fifth straight day, the longest losing streak since April 19The euro rose 0.2% to $1.2156The British pound rose 0.1% to the highest since Feb. 24The Japanese yen rose 0.2% to 108.54 per dollarBondsThe yield on 10-year Treasuries advanced two basis points, climbing for the fourth straight day, the longest winning streak since March 19Germany’s 10-year yield advanced six basis points, more than any closing gain since March 3Britain’s 10-year yield advanced five basis points, more than any closing gain since March 12CommoditiesWest Texas Intermediate crude fell 1.1% to $64 a barrelGold futures fell 1% to $1,819 an ounce, ending a four-day winning streakFor 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. Business Yahoo Finance 210511 07h34m Stock market news live updates: Stocks fall as tech rout deepens, Nasdaq extends losses Stocks fell Tuesday morning, with the Nasdaq adding to Monday's losses as technology stocks came under increasing selling pressure as inflation concerns rose. World Reuters 210511 07h28m UPDATE 1-Turkish firm tells Lebanon to fix debts, end legal action or face power cut Turkey's Karadeniz, which supplies electricity to Lebanon from power barges, said on Tuesday Beirut must halt legal action to seize its vessels and sort out arrears or it will shutdown supplies to the country that is mired in a financial crisis. The firm denies the charges and said at the weekend it had not been paid for 18 months, a period coinciding with Lebanon's financial crunch. A spokesperson for Karpowership, a unit of Karadeniz that operates the floating plants, issued the demands after Lebanon's Finance Ministry cited a lawmaker saying the country could face "total darkness" if the company shut down supplies. Business Reuters 210511 07h26m UPDATE 1-AstraZeneca investors narrowly approve CEO's 2021 pay package AstraZeneca investors on Tuesday approved Chief Executive Pascal Soriot's pay package proposal by a narrow margin after advisory groups said the rewards were excessive. At an annual meeting of shareholders, 60.19% of votes were cast by shareholders in favour of approving Soriot's pay proposal, which takes his maximum annual bonus for 2021 to 2.5 times his base salary, up from twice his salary, and makes him eligible for long-term share awards worth as much as 6.5 times his salary, up from 5.5 times. The development comes as the London-listed company faces a second legal action from the European Union over delayed deliveries of its COVID-19 vaccine and concerns over the risk of rare blood clots possibly linked to the jab. Business Reuters 210511 07h18m UPDATE 1-U.S. regulators should demand banks to hold more cash for climate risks -think tank The U.S. Federal Reserve and other bank regulators should force banks to hold more cash to guard against potential losses due to climate change and possible steps to fight it, one of Washington's top liberal think tanks said on Tuesday. The plan https://www.americanprogress.org/?p=498976, published by the Center for American Progress and seen first by Reuters, is likely to inform a looming debate about exactly how far bank regulators should go in policing climate change as the Biden administration looks to tackle the issue on all fronts. The paper argues that regulators could move quickly to bolster banks' capital cushions by establishing several new safeguards, including a new capital surcharge directly tied to how much pollution banks directly finance and heightened stress tests of big banks that incorporate climate risks. Business Reuters 210511 07h15m Exclusive-Toshiba board to appoint UBS as adviser for strategic review -sources Toshiba Corp's board is set to appoint UBS as financial adviser to work on a strategic review for the Japanese conglomerate facing a possible private equity bidding war, people familiar with the matter said. Last month, Toshiba became the target of a potential takeover bid, raising the possibility of a deal that would have far-reaching implications for Japan Inc and its bankers. Investment banks have since pitched to Toshiba's independent directors for an advisory role, the people, who could not be named as the information has not yet been made public, told Reuters. Howell date : 210511 06h45m39s Business Reuters 210511 06h35m UPDATE 1-Brazil cenbank minutes show 75 bps June hike likely, but pause looms Brazil's central bank expects to raise interest rates by another 75 basis points in June to keep inflation in check, meeting minutes showed on Tuesday, while suggesting it is unlikely to make an uninterrupted cycle of hikes to a 'neutral' level. The minutes of the May 4-5 policy meeting, at which the bank's rate-setting committee known as Copom raised rates by 75 basis points to 3.50%, struck a slightly more dovish tone than the policy statement last week, analysts said. Policymakers reaffirmed their view that another 75 basis point hike is the "appropriate" next step "unless inflation determinants change," given recent inflation pressures and short-term fiscal risks. Business Reuters 210511 06h31m CME says more than 100,000 micro bitcoin futures traded in first six days NEW YORK (Reuters) -Exchange operator CME Group Inc said on Tuesday more than 100,000 micro bitcoin futures were traded in the first six days after the contract's launch. The micro contract is aimed at smaller, sophisticated, active traders, and represents 1/10th of a bitcoin, versus the more pricey regular contract, which represents 5 bitcoins. "Together with our existing, full-sized Bitcoin futures, this new, smaller contract further strengthens our ability to help a broad array of clients, from institutions to sophisticated, active traders, to manage their bitcoin price risk," said Tim McCourt, CME's Global Head of Equity Index and Alternative Investment Products. Business Yahoo Finance 210511 06h29m Stock market news live updates: Stock futures fall as tech rout deepens Stock futures sank Tuesday morning, with the Nasdaq looking to add to losses as technology stocks came under increasing selling pressure as inflation concerns rose. Business Bloomberg 210511 06h28m World’s Debt Managers Return to China After U.S. Rates Stall (Bloomberg) -- Chinese debt is back in favor with overseas investors.After the nation’s government bonds suffered their first outflow in two years in March, foreigners added 52 billion yuan ($8.1 billion) to their holdings in April, bringing the total to a record 2.1 trillion yuan, data compiled by ChinaBond show.In a game-changing shift -- compared by some to the birth of the euro -- yuan-denominated debt has emerged as a refuge during this year’s global bond rout. Investors looking for diversification have piled in, seeking its relatively high yields and low correlation to other markets. While that partially reversed in March, as rising U.S. yields dimmed Chinese bonds’ appeal, the quick turnaround has underscored the resilience of demand and China’s growing clout since opening its fixed-income market.“The underlying case for Chinese bonds is still very, very strong,” said Pramol Dhawan, head of emerging markets portfolio management at Pacific Investment Management Company LLC. “Because of its low correlation to global rates, its high nominal yields and high real yields form a very important part of portfolio construction.”Foreign investment in China’s interbank fixed-income market, as compiled by ChinaBond, rose 65 billion yuan in April to an all-time high of 3.2 trillion yuan, the data showed. Those holdings more than doubled over the past two years as Chinese bonds were included in global benchmarks compiled by Bloomberg Barclays and JPMorgan Chase & Co. Still, foreign investors only account for 4.3% of the total debt in China’s interbank market.“We are increasing our exposure to the Chinese bonds,” said Kheng Siang Ng, Asia Pacific head of fixed income at State Street Global Advisors. “It’s hard for the markets to ignore.”Read More: China’s Bonds Only One to Gain Among Biggest Markets in RoutEven as foreign investors returned, the April numbers suggest the momentum of inflows has slowed from the breathtaking pace earlier this year. Last month’s inflow was less than half the amount seen in January.The yield premium of China’s benchmark 10-year bond over Treasuries narrowed by around 1 percentage point to about 154 basis points from a record in November. On top of that, FTSE Russell said in March that it will take three years to add Chinese debt into its global index, instead of the 12 months initially envisioned. That disappointed some investors who expected a faster inclusion.Defensive BuyersNick Maroutsos, head of global bonds at Janus Henderson Investors, is among those who aren’t yet ready to buy Chinese bonds.“We get asked this a lot, and my answer to whether we own or will own Chinese bonds is, ‘Not right now,’” said Maroutsos, whose firm managed more than $414 billion as of March.“Ultimately, we are defensive buyers, and I have a hard time looking at emerging markets as a safe haven for investors,” he said. “Chinese government bonds aren’t going to protect you and won’t behave in a manner similar to Treasuries.”China’s bonds have been dancing to their own tune, in part because they are less owned by foreign investors, and China’s independent economic and policy cycles set them apart from the rest of the world.Over the past 10 years, their correlation with the U.S. Treasuries was less than 0.2, according to a Bloomberg analysis. Yields on 10-year Chinese bonds were little changed this year, while equivalent Treasury yields surged 69 basis points.Read More: Carry Trades in China, Korea Are Best in Low-Yield Covid EraWhile the yield spread has narrowed, at 3.1%, China’s 10-year yield is almost double that of Treasuries. Even if U.S. yields rise further, Chinese bonds remain appealing because of their low correlation to global markets, which helps investors lower volatility in their portfolio, said Lucy Qiu, a strategist at UBS Global Wealth Management.“Investors still need to look for uncorrelated sources of returns, as negative bond-equity correlations may be challenged during a rapid rise in yield,” Qiu said.(Updates with performance data in third-from-last 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. Business Bloomberg 210511 06h25m Oatly Sees Valuation Possibly Over $10 Billion as U.S. IPO Nears (Bloomberg) -- Oatly Group AB expects to raise as much as $1.65 billion for itself and its investors in an initial public offering, potentially giving the maker of plant-based food and drink products a total valuation of over $10 billion.The Malmo, Sweden-based company is offering 64.7 million American depositary shares and expects an IPO price of $15 to $17 per ADS, with net proceeds to the company of $976.6 million at the middle of that range, according an amended filing Tuesday. The document adds details to Oatly’s original IPO filing last month.Scottish asset-management firm Baillie Gifford, an Oatly investor since 2016, has indicated interest in buying as much as $500 million of the ADSs in the offering, Oatly said.Oatly was started by brothers Rickard and Bjorn Oste. Using technology based on research from Sweden’s Lund University, the company turns fiber-rich oats into liquid food.Oat milk, which was essentially nonexistent in the U.S. before Oatly’s entrance, saw a 151% jump in sales in dollar terms at retail outlets during the 52-week period ended March 13, according to NielsenIQ. The plant-based dairy category as a whole rose 20% during the same period. By sales, oat milk is the second-most popular option after almond milk.In July, Oatly secured $200 million in new capital from investors led by Blackstone Group Inc. The group also included celebrities such as Oprah Winfrey and Jay-Z, as well as Starbucks Corp. founder Howard Schultz. The company was valued at about $2 billion in the round.Oatly said Tuesday that it would use $188.3 million of the IPO proceeds to repay a “sustainability linked loan” agreement with a host of European banks, $10.8 million for a portion of its bridge financing, and the rest for working capital to fund growth.Morgan Stanley, JPMorgan Chase & Co. and Credit Suisse Group AG are leading the offering. Oatly plans to list its shares on Nasdaq Global Select Market under the symbol OTLY.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. Business Reuters 210511 06h22m German regulator bans Facebook from processing WhatsApp user data Germany's lead data protection regulator for Facebook is banning the social network from processing personal data from WhatsApp users because it views the messaging app's new terms of use as illegal, it said on Tuesday. The decision follows emergency proceedings opened by the regulator in the city-state of Hamburg last month after WhatsApp required users to consent to new terms or stop using the service. "This order seeks to secure the rights and freedoms of the many millions of users who give their consent to the terms of use throughout Germany," Hamburg's data protection officer Johannes Caspar said. Howell date : 210511 04h45m02s Business Reuters 210511 04h37m Nasdaq futures fall over 1% on inflation worries Futures tracking the Nasdaq dropped more than 1% on Tuesday, pointing to an another day of losses for technology-related stocks with lofty valuations on worries over inflation. Shares of Apple, Facebook Inc, Amazon.com Inc, Netflix Inc and Google-parent Alphabet Inc dropped between 1% and 2% in premarket trading, while Tesla Inc fell nearly 4%. The yield on benchmark U.S. 10-year Treasury note ticked up to 1.604% ahead of consumer price index report on Wednesday, with investors fearing that a strong reading could prompt the Federal Reserve to alter its ultra loose monetary policy. Business Reuters 210511 04h25m France's Orange considers buying back its TDF unit - report France's Orange is reviewing a possible acquisition of its former unit TDF, a telecoms infrastructure operator, L'Express magazine reported on Tuesday. Orange, the leading telecoms operator in France, sold TDF almost 20 years ago to reduce its debt. But, according to L'Express, Orange is mulling combining TDF with it recently launched European masts company TOTEM, as infrastructure valuations recently surged following the interest from investors such as U.S. private equity firm KKR and Spain's Cellnex. Business Reuters 210511 04h21m Meituan shares slump as fallout from CEO's poem post festers Shares of Chinese food delivery giant Meituan slumped further on Tuesday in a sell-off precipated by the social media posting by its chairman of an ancient poem that was perceived by some as criticising the government and President Xi Jinping. The company, which recently raised $10 billion, has lost $30 billion in market value over two days amid a broader drop in Chinese tech shares as investors remain jittery over a regulatory clampdown that last month ensnared Meituan. The poem, posted on May 6 by Chairman and CEO Wang Xing on a small social media site that he founded, criticises the emperor of the Qin dynasty, who burnt books to suppress intellectual dissidents, only for it to be overthrown by illiterates. Business Reuters 210511 04h17m Renault, Nissan looking for more savings on batteries - De Meo French carmaker Renault and its Japanese alliance partner Nissan are in talks to collaborate more and improve the savings they can derive from using the same battery technology, Renault Chief Executive Luca de Meo said on Tuesday. For Renault and Nissan, it has also long been one of the weaker points of a partnership stretching back over 20 years, with each sourcing batteries in different ways, including from South Korea's LG for the French firm. "If we manage to come up with a very synergetic approach on batteries, the alliance will probably be one of the first to cross the threshold of a million cars sold on the same battery module," De Meo told a Financial Times car conference. Business Bloomberg 210511 04h16m Tesla Falls as China Sales Dip, Musk Polls Followers on Dogecoin (Bloomberg) -- Tesla Inc. shares slumped in early trading as fresh signs of trouble emerged for its China business while Elon Musk polled Twitter followers on whether the carmaker should accept Dogecoin.China’s Passenger Car Association said Tuesday that Tesla sold 25,845 locally made vehicles in April, a 27% drop from March. Reuters reported separately that the Model 3 maker decided against acquiring more land next to its Shanghai plant, as U.S.-China trade tensions undercut plans to turn the site into an export hub.While Musk has been playing damage control during what has been a turbulent few months in China, he’s also been preoccupied with Dogecoin, the cryptocurrency started years ago as a joke that has gained value in part thanks to the billionaire’s attention. The token spiked to about 54 cents from 46 cents after Musk asked his almost 54 million followers whether Tesla should accept it as the company has with Bitcoin.Shares of Tesla -- which recently warned investors the digital assets it’s acquiring could be subject to volatile prices and risk of losses -- slumped as much as 4.4% before the start of regular trading.China TroublesTesla’s issues in China started in March when its EVs were prohibited from some military complexes and housing compounds because of concerns about sensitive data being collected by cameras and sensors in its vehicles. Shortly after the ban became public, Musk said during a virtual appearance at a conference in China that the automaker would never use technology in its vehicles for spying and would be closed down if it did.In April, a highly public protest by a customer during the Shanghai auto show went viral, prompting deeper investigation by a local market regulator and heated criticism of Tesla’s customer service. The company initially played down the incident but quickly struck a more conciliatory tone after criticism mounted.Reuters said that because 25% tariffs put on electric vehicles under former President Donald Trump are still in place, Tesla now intends to limit China’s portion of its global production, citing unidentified people familiar with the matter. The company had earlier considered expanding China-made Model 3 exports to more markets including the U.S., the news organization said.Musk, who’s been a vocal supporter of Dogecoin, drew more than 750,000 respondents within 30 minutes to his Twitter poll on whether Tesla should start taking the Shiba Inu-themed token.The fourth-largest cryptocurrency has been volatile since the CEO appeared on “Saturday Night Live” and called it “a hustle” during one segment. Its market capitalization has fallen from as high as $95 billion to about $67 billion.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. Business Reuters 210511 04h11m How much did Marvel heroes help lift Disney+? Answer due Thursday With Walt Disney Co theme park operations limited due to the coronavirus pandemic, investors watching the company report earnings on Thursday are expected to zero in on its fast growth into streaming TV. During the January to March quarter, the Disney+ streaming service was aided by box office heavyweight Marvel Studios. The animated Disney movie "Raya and the Last Dragon" was offered to Disney+ customers in March for $30, at the same time it was shown in theaters, which are struggling to rebound from the global health crisis. U.S. Bloomberg 210511 04h09m Gas Stations Run Dry as Pipeline Hacking Will Take Days to Fix (Bloomberg) -- Gas stations along the U.S. East Coast are starting to run out of fuel as North America’s biggest petroleum pipeline fights to recover from a cyberattack that has paralyzed it for days.From Virginia to Florida and Alabama, fuel stations are reporting that they’ve sold out of gasoline as supplies in the region dwindle and panic buying sets in. The White House said it was aware of shortages in the Southeast of the country and was trying to alleviate the problem.Four days into the crisis, Colonial Pipeline Co. has only managed to manually operate a small segment of the pipeline -- as a stopgap measure -- and doesn’t expect to be able to substantially restore service before the weekend. The risk is that by that point drivers or airlines may already be suffering severe fuel shortages, while refineries on the Gulf coast could be forced to idle operations because they have nowhere to put their product.U.S. average retail gasoline prices have risen to their highest since late 2014 due to the disruption, almost touching $3 per gallon. That could add to broader inflationary pressures as commodity prices from timber to copper also surge.The Colonial pipeline is the most important conduit to distribute gasoline, diesel and jet-fuel in the U.S., moving the products from the refiners based on the Gulf coast into urban areas from Atlanta to New York and beyond. Each day, it ships about 2.5 million barrels -- more than the entire oil consumption of Germany -- connecting more than 20 refineries with about 200 distribution centers.The vital conduit has been shut down since late Friday. Without the Colonial pipeline, many cities and airports must seek alternative supplies, either fuel imported by tanker or, if landlocked, relying on trucks.On Monday, the Federal Bureau of Investigation pointed the finger at a ransomware gang known as DarkSide. While cyberattacks are increasingly used around the world as a weapon against geopolitical rivals, there was no indication that the current crisis could boil over internationally. President Joe Biden stopped short of blaming the Kremlin for the attack, despite some evidence that the hackers or the software they used are “in Russia.”Russia has no connection to the cyberattack, Kremlin spokesman Dmitry Peskov told reporters on Tuesday.Dwindling SuppliesColonial Chief Executive Officer Joe Blount and a top lieutenant assured Deputy Energy Secretary David Turk and state-level officials that the company has complete operational control of the pipeline and won’t restart shipments until the ransomware has been neutralized.Government officials haven’t advised Colonial on whether it ought to pay the ransom, Deputy National Security Adviser for Cyber and Emerging Technologies Anne Neuberger said during a briefing.In the meantime, fuel supplies are dwindling just as the nation’s energy industry was gearing up to meet stronger fuel demand from summer travel. Americans are once again commuting to the office and booking flights after a year of Covid-19 restrictions.In the first sign of the potential disruption to air travel, American Airlines Group Inc. said it was adjusting two long-haul routes that originate in Charlotte, North Caroline, to add fuel stops. Flights to Hawaii will call in at Dallas-Forth Worth airport, while London-bound aircraft will make a stop in Boston.Airlines flying out of Philadelphia International Airport are burning through jet-fuel reserves and the airport has enough to last “a couple of weeks,’ a spokeswoman said.The U.S. East Coast is losing around 1.2 million barrels a day of gasoline supply due to the disruption, according to a note from industry consultant FGE.In Asheville, North Carolina, Aubrey Clements, a clerk at an Exxon Mobil Corp. station answered the phone with “Hello, I’m currently out of gas.” The Marathon gas station in Elizabethtown, North Carolina, had roughly two dozen cars waiting to fuel up, said an employee there.Drivers pulling into a station with a sign offering unleaded gasoline for $2.649 per gallon in Manning, South Carolina, were met with pumps covered in yellow and red “out of service” bags. An estimated 7% of gas stations in the state of Virginia were out of fuel as of late Monday, according to GasBuddy analyst Patrick DeHaan.In an 18-minute virtual meeting, Blount said Colonial is working with refiners, marketers and retailers to prevent shortages, according to a person involved with the meeting who wasn’t authorized to speak publicly about the discussion. The pipeline serves 90 U.S. military installations and 26 oil refineries, the person said.The shutdown has prompted frenzied moves by traders and retailers to secure alternative supplies. Oil tanker charter rates skyrocketed in the U.S. with refiners scrambling for ships to store fuel that has nowhere to go.Emergency shipments of gasoline and diesel from Texas are already on the way to Atlanta and other southeastern cities via trucks, and at least two Gulf Coast refineries began trimming output amid expectations that supplies will begin backing up in the nation’s oil-refining nexus.The national average retail gasoline price rose to $2.985 a gallon, the highest since November 2014, according to the American Automobile Association. The premium for wholesale gasoline in the New York area expanded to its widest in three months.The event is just the latest example of critical infrastructure being targeted by ransomware. Hackers are increasingly attempting to infiltrate essential services such as electric grids and hospitals. The escalating threats prompted the White House to respond last month with a plan to increase security at utilities and their suppliers. Pipelines are a specific concern because of the central role they play in the U.S. economy.Ransomware cases involve hackers seeding networks with malicious software that encrypts the data and leaves the machines locked until the victims pay the extortion fee. This would be the biggest attack of its kind on a U.S. fuel pipeline.DarkSide said in a post on the dark web that it wasn’t to blame and hinted that an affiliate group may have been behind the attack. The group promised to do a better job of screening customers that buy its malware.Learn more about how emergency powers can counter fuel-supply disruptions.“It’s an all-hands-on-deck effort right now,” said U.S. Commerce Secretary Gina Raimondo. “We are working closely with the company, state and local officials to make sure that they get back up to normal operations as quickly as possible and there aren’t disruptions in supply.”The White House pulled together an inter-agency task force to address the breach, including exploring options for lessening its impact, according to an official. Biden can invoke an array of emergency powers to ensure supplies keep flowing to big cities and airports along the East Coast.Some rules curbing domestic transportation of fuel have been eased to help deal with any shortages. That doesn’t extend to waiving the Jones Act, a measure that would allow foreign tankers to help shuffle more petroleum products between U.S. ports.The Northeast can secure gasoline shipments from Europe but it will come at an increasing cost the longer the pipeline stays shut. In the meantime, fuel producers including Marathon Petroleum Corp. are weighing alternatives for how to ship their products to the Northeast.Landlocked cities face the greatest danger of fuel shortages compared with those with access to water-borne deliveries, said Steve Boyd, senior managing director at Houston-based distributor Sun Coast Resources Inc. If the pipeline remains down for many more days, he’s anticipating a “massive surge” in orders.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. Howell date : 210510 19h10m35s Business Bloomberg 210510 18h43m Top India Stock Fund Warns of Correction as Virus Runs Amok (Bloomberg) -- Investors in India’s $2.8 trillion equity market are underestimating the economic impact from the world’s worst coronavirus outbreak, which will delay any recovery and could trigger a “correction” in stocks, according to the country’s top-performing fund manager.The benchmark S&P BSE Sensex has climbed for two straight weeks, a period during which the nation’s tally of daily virus infections as well as related deaths have hit records. Domestic institutional investors, including mutual funds and insurers, poured a net $1.5 billion into stocks in April, helping offset a similar outflow from foreign funds. That trend has continued so far in May.The market “is completely ignoring the present situation,” said Samir Rachh, who oversees 130 billion rupees ($1.8 billion) of assets at Nippon India Mutual Fund in Mumbai. Recent gains have been “driven by a huge amount of liquidity,” he said.India has imposed numerous restrictions on people and businesses, many on a state-by-state basis. But as the outbreak widens, Prime Minister Narendra Modi is under pressure to tighten rules nationwide, which would slow an economy that, according to several forecasts, is poised for double-digit growth this year.While the country is rolling out vaccines, the virus has spread to places that “do not have adequate facilities or the medical infrastructure to handle it,” Rachh said. “If we don’t see it peaking, as estimated, and given how the stocks have gained from last year, there could be a market correction,” he said.The Nippon India Small Cap Fund managed by Rachh has returned 27% so far this year, the top performance among funds that manage at least $500 million, data compiled by Bloomberg show.Small CapsThe Sensex rose 0.6% on Monday, a fourth day of gains, to close at its highest level since April 29. The gauge has surged about 91% from its March 2020 low, boosted by foreign inflows of $23.3 billion last year and optimism that stimulus measures will help engineer a strong economic revival.Even as businesses were disrupted most of the year, small-cap shares were among the biggest winners, rallying faster than the broader market. That outperformance has widened further in 2021, helping Nippon’s small-cap fund shine.The fund, which allocated 11.3% of its assets to the chemicals sector at the end of April -- the largest for any industry -- has returned about 110% over the past 12 months. Consumer non-durables and software are the other top sector holdings.“Picking up the right small-cap company is like searching for the ideal son-in-law,” Rachh said. “There is a lot of effort and due diligence,” including frequent visits to companies and their dealers and vendors -- which have been made more difficult by the Covid-19 protocols, he said.“If an investor is coming into the [small-cap] category looking at last year’s gains, the returns this year will be nowhere near it,” he said. “Still, the long-term view is that the economy will see a faster recovery once we have dealt with the pandemic.”(Adds Sensex’s latest move in the 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. Business Bloomberg 210510 18h33m Asia Stocks Track U.S. Slide on Inflation Angst: Markets Wrap (Bloomberg) -- Stocks dropped at the open in Asia on Tuesday after a slide in U.S. equities as surging commodity prices stoked concern about inflation. Treasury yields held a climb.Shares fell in Japan, Australia and South Korea. U.S. contracts fluctuated after the Nasdaq 100 Index tumbled 2.6% amid the growing anxiety over inflation, which can threaten longer-horizon revenues typical of the technology sector. The benchmark S&P 500 Index fell from an all-time high, while the Dow Jones Industrial Average briefly topped 35,000 for the first time.West Texas Intermediate crude fluctuated after a cyberattack forced the closure of a key U.S. pipeline, which operators hope to reopen by the end of the week. The spotlight remains on commodities and the economic and market implications of recent jumps in materials like copper and iron ore.Concerns about knock-on price pressures boosted a gauge of inflation expectations to the highest level since 2006. That lifted Treasury yields slightly, taking the benchmark 10-year to 1.60%. The dollar held a decline.The run-up in raw materials is intensifying debate ahead of a U.S. CPI report Wednesday that is forecast to show a strong gain in April. The year-on-year reading will be amplified by the pandemic shock a year earlier, but it plays into a broader market concern that the Federal Reserve may be forced to raise interest rates sooner than current guidance suggest to contain inflation.“We’re going to see volatility definitely over the next couple of months” given uncertainty over the path of growth, Kristen Bitterly, head of capital markets in the Americas for Citi Private Bank, said on Bloomberg TV. “Cash and duration are punitive so you need to make sure that where you have that yield is non-rates sensitive parts of the market.”The Australian dollar was steady ahead of the federal budget. The government is expected to unveil a narrowing budget gap and more spending.See here the MLIV Question of the Day: How Far Can Reflation Trades Go?Here are some key events to watch this week:A range of Fed speakers are due this week, including Governor Lael Brainard on Tuesday, among othersChinese inflation data are due TuesdayOPEC monthly Oil Market Report is published with global demand forecasts and production estimates TuesdayU.S. CPI report Wednesday is forecast to show prices continued to increase in AprilBank of England Governor Andrew Bailey speaks WednesdayThese are some of the main moves in markets:StocksS&P 500 futures dipped 0.1% as of 9:28 a.m. in Tokyo. The S&P 500 Index shed 1%Nasdaq 100 contracts lost 0.3%. The Nasdaq 100 fell 2.6%Japan’s Topix index dropped 1%Australia’s S&P/ASX 200 Index fell 0.6%South Korea’s Kospi index lost 1%Hong Kong’s Hang Seng Index futures fell 0.6% earlierCurrenciesThe yen was at 108.87 per dollarThe Bloomberg Dollar Spot Index was little changedThe euro was at $1.2134BondsThe yield on 10-year Treasuries dipped about one basis point to 1.59%Australia’s 10-year bond yield held at 1.71%CommoditiesWest Texas Intermediate crude was at $64.77 a barrel, declining 0.3%Gold fell 0.1% to $1,834.25 an ounceFor 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. Business Reuters 210510 18h31m FOREX-Commodity currencies hold advantage as dollar waits for inflation and Fed * Graphic: World FX rates https://tmsnrt.rs/2RBWI5E * Commodity price gains lift exporters' currencies * Dollar bides time before U.S. CPI and Fed speakers * Sterling continues stellar run as coronavirus risks fade By Stanley White TOKYO, May 11 (Reuters) - The dollar nursed losses against the currencies of major commodity exporters which enjoyed support from expectations for further gains in the price of oil, copper, steel, and other metals. Treasuries and the dollar have swung back and forth as investors adjust their expectations for when the U.S. Federal Reserve will start tapering bond purchases and raising interest rates as the U.S. economy gains momentum. A host of Fed speakers this week are likely to leave investors with plenty to consider as they try to forecast how policymakers will react to receding risks posed by the coronavirus in some major economies. World Reuters 210510 18h25m China reports 14 new COVID-19 cases vs 11 a day earlier China reported 14 new COVID-19 cases on May 10, up from 11 a day earlier, the national health authority said on Tuesday. The National Health Commission, in a statement, said all of the new cases were imported infections originating from overseas. The number of new asymptomatic cases, which China does not classify as confirmed cases, rose to 25 from 18 cases a day earlier. Business Reuters 210510 18h19m UPDATE 1-Aussie regulator says Woolworths to address competition concerns from PFD deal Australian grocer Woolworths Group Ltd has offered draft commitments to ensure its deal to buy two-thirds of PFD Food Services will not hurt competition in the food sector, the country's competition regulator said on Tuesday. Woolworths and PFD have offered to maintain "a degree of separation and independence" for three years after the deal, unless some early termination clauses are triggered, the Australian Competition and Consumer Commission (ACCC) said. The companies indicated that the move would "preserve the current market dynamics and enable market participants, such as independent suppliers, to continue to do business with Woolworths and PFD independently," ACCC Chairman Rod Sims said. Business Reuters 210510 18h17m Nio Lidar supplier Innovusion raises $64 million in funding Lidar sensor maker Innovusion said on Monday it had raised $64 million in funding to ramp up production to supply Chinese electric vehicle (EV) maker Nio Inc's ET7 sedan, which is scheduled to start deliveries in early 2022. Some existing investors also participated, including Nio Capital, Nio's investment arm. With the latest funding, Innovusion has raised more than $100 million. Howell date : 210510 18h09m58s Business Reuters 210510 18h00m Nio Lidar supplier Innovusion raises $64 mln in funding Lidar sensor maker Innovusion said on Monday it had raised $64 million in funding to ramp up production to supply Chinese electric vehicle (EV) maker Nio Inc's ET7 sedan, which is scheduled to start deliveries in early 2022. The funding includes new investments from Singapore state investor Temasek and venture capital firm Joy Capital. Some existing investors also participated, including Nio Capital, Nio's investment arm. Business Bloomberg 210510 17h50m Gas Stations Running Dry as Hacked Pipeline Still Down (Bloomberg) -- North America’s biggest petroleum pipeline is in a race against time to overcome a paralyzing cyberattacks as gas station supplies dwindled and North Carolina declared a state of emergency with cars lining up for fuel.Colonial Pipeline said it’s manually operating a segment of the pipeline running from North Carolina to Maryland and expects to substantially restore all service by the weekend. The pledge may not come fast enough to avert immediate shortages in the southeast, where gas station employees are already reporting lines for fuel.Stations in Asheville, North Carolina, are out of fuel and lines are forming at outlets that still have supplies. David Marcos, an employee at a Royal Dutch Shell Plc-owner station in the city said they ran out of gasoline and diesel earlier on MondayThe Marathon gas station in Elizabethtown, North Carolina, had roughly two dozen cars waiting to fuel up, said Chanss Arnett, an employee there. The stations in town are all packed, Arnett said over the phone, where the door bell chimes from people entering could be heard every other minute.The conduit has been shut down since late Friday, prompting frenzied moves by traders and retailers to secure alternative supplies. On Monday, the Federal Bureau of Investigation pointed the finger at a ransomware gang known as DarkSide. The pipeline hasn’t suffered any physical damage and no fuel shortages have been detected, a White House official said.Colonial Chief Executive Officer Joe Blount and a top lieutenant assured Deputy Energy Secretary David Turk and state-level officials on Monday that the company has complete operational control of the pipeline and won’t restart shipments until the ransomware has been neutralized.Bases, RefineriesIn an 18-minute virtual meeting, Blount said shortages may develop in some markets but said Colonial is working with refiners, marketers and retailers to prevent those, according to a person involved with the meeting who wasn’t authorized to speak publicly about the discussion.The pipeline serves 90 U.S. military installations and 26 oil refineries, the person said. Meanwhile, President Joe Biden said Russia has “some responsibility” to address the attack.Emergency shipments of gasoline and diesel from Texas already are on the way to Atlanta and other southeast cities via trucks, and at least two Gulf Coast refineries began trimming output amid expectations that supplies will begin backing up in the nation’s oil-refining nexus. Airlines flying out of Philadelphia International Airport are burning through jet-fuel reserves and will need to locate new supplies “soon,” a spokeswoman said.READ: How a Key U.S. Pipeline Got Knocked Out by Hackers: QuickTakeGovernment officials haven’t advised Colonial on whether it ought to pay the ransom, Deputy National Security Adviser for Cyber and Emerging Technologies Anne Neuberger said during a briefing.New York PricesThe national average retail gasoline price rose to $2.967 a gallon on Monday, a 2.4% increase from Friday, according to AAA. The premium for wholesale gasoline in the New York area expanded to its widest in three months.The attack came just as the nation’s energy industry was preparing to meet stronger fuel demand from summer travel. Americans are once again commuting to the office and booking flights after a year in lockdown. Depending on the duration of the disruption, retail prices could spike, further stoking fears of inflation as commodity prices rally worldwide.DarkSide said in a post on the dark web that it wasn’t to blame and hinted that an affiliate group may have been behind the attack. The group promised to do a better job of screening customers that buy its malware.Gasoline futures that initially surged as much as 4.2% in overnight trading surrendered most of those gains on Monday.Learn more about how emergency powers can counter fuel-supply disruptions.Convenience-store chains in places like Atlanta and Savannah, Georgia, began clamoring for emergency fuel deliveries on Friday afternoon, said Steve Boyd, senior managing director at Houston-based distributor Sun Coast Resources Inc.Water-Borne SuppliesLandlocked cities face the greatest danger of fuel shortages compared with those with access to water-borne deliveries, Boyd said. If the pipeline remains down for many more days, he’s anticipating a “massive surge” in orders. Sun Coast, which operates about 900 trucks, has delivered emergency supplies during 75 major storms over the past 15 years, including during hurricanes Harvey and Irma in 2017.Gasoline for June delivery settled little changed at $2.1334 a gallon in New York. Futures prices have gained more than 50% this year, helped by the recovery from the worst effects of the pandemic.Tankers BookedPrior to Colonial’s Monday statement, traders were seeking vessels to deliver fuel to coastal terminals. Four vessels were provisionally chartered to send diesel or gasoline from Europe to the U.S. Atlantic Coast, according to Danish oil-product tanker company Torm A/S.Some tankers are also being secured to temporarily store gasoline along the Gulf Coast, according to market participants who asked not to be identified because the information isn’t public. Meanwhile, Total SE scaled back activity in a key unit at its Port Arthur, Texas, refinery because of the Colonial shutdown, according to a person familiar with operations. Citgo Petroleum Corp. took similar measures at its Lake Charles, La., plant.Increased SecurityColonial halted all operations on its system late Friday after suffering a ransomware attack that affected some of its IT systems.The event is just the latest example of critical infrastructure being targeted by ransomware. Hackers are increasingly attempting to infiltrate essential services such as electric grids and hospitals. The escalating threats prompted the White House to respond last month with a plan to increase security at utilities and their suppliers. Pipelines are a specific concern because of the central role they play in the U.S. economy.“It’s an all-hands-on-deck effort right now,” said U.S. Commerce Secretary Gina Raimondo. “We are working closely with the company, state and local officials to make sure that they get back up to normal operations as quickly as possible and there aren’t disruptions in supply.”The White House pulled together an inter-agency task force to address the breach, including exploring options for lessening its impact, according to an official. Biden can invoke an array of emergency powers to ensure supplies keep flowing to big cities and airports along the East Coast.Rules EasedSome rules curbing domestic transportation of fuel have been eased to help deal with any shortages. That doesn’t extend to waiving Jones Act, a measure that would allow foreign tankers to help shuffle more petroleum products between U.S. ports.Colonial has the capacity to send about 2.5 million barrels (105 million gallons) a day from Houston as far as North Carolina, and another 900,000 barrels a day to New York.Extortion FeeRansomware cases involve hackers seeding networks with malicious software that encrypts the data and leaves the machines locked until the victims pay the extortion fee. This would be the biggest attack of its kind on a U.S. fuel pipeline.With gasoline inventories ample, pump prices weren’t expected to tick much higher until Memorial Day at the end of May, which is traditionally viewed as the start of the U.S. summer driving season. If the pipeline doesn’t restart soon it will accelerate the move higher.“Atlanta will be one of the earlier sore spots, along with eastern Tennessee, and perhaps the Carolinas,” said Patrick DeHaan, head of petroleum analysis at GasBuddy.The Northeast can secure gasoline shipments from Europe but it will come at an increasing cost the longer the pipeline stays shut. The fuel’s premium to crude in northwest Europe had jumped by more than 5% in intra-day trading earlier on Monday but was still down week-on-week.In the meantime, fuel producers including Marathon Petroleum Corp. are weighing alternatives for how to ship their products to the Northeast.One potential route is the Kinder Morgan-operated Plantation Pipeline, even though it only extends as far north Washington D.C. and has a capacity of 720,000 barrels a day, far short of Colonial’s. Kinder said Sunday it’s working with customers to accommodate additional barrels during Colonial’s outage, and that Plantation is deferring where possible any non-essential maintenance that might otherwise reduce flow rates.While all of the major segments of Colonial’s system remain offline, some smaller so-called laterals connecting specific fuel terminals to delivery points are in service, the company said earlier.Inventories offer minimal cover, ClearView Energy Partners said in a research note. Tankers leaving Rotterdam could take up to 14 days to make the trip to the New York Harbor. The Midwest could theoretically send some of its supplies to the East Coast via rail and barge, but the region’s inventories are tighter than in previous years, ClearView said.“The Colonial outage comes at a critical juncture for the recovering U.S. economy: the start of the summer driving season,” ClearView said. “We therefore think lawmakers could begin a ‘blame game’ immediately, and a sustained disruption that leads to a significant pump price spike could increase prospects of domestic policy interventions.”(Corrects spelling of first name 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. Business Bloomberg 210510 17h37m Novavax Plunges Amid Dismay Over Timeline for Covid-19 Shot (Bloomberg) -- Novavax Inc. shares extended declines after the close of trading Monday following first-quarter results in which the company said it doesn’t plan to file for authorization for its Covid-19 vaccine in the U.S. and Europe until the third quarter.The firm’s stock fell more than 11% post-market following an 8.8% decline during the session that came on the heels of a Washington Post report that said the biotech’s plans to seek emergency use authorization for its closely-watched Covid-19 vaccine would be delayed.The drug developer will not publish results from a highly-anticipated study of the vaccine until the end of the month, according to the report, which is weeks later than many on Wall Street anticipated. Investors fear there may be issues beyond just a simple delay in the vaccine’s results that may be preventing it from filing for emergency use. The company also needs to reach an agreement with U.S. regulators over issues for an assay, which helps check the quality of its vaccines, the report said.“As we continue our dialogue with regulatory authorities for authorization, we remain committed to promptly delivering our vaccine globally,” Novavax Chief Executive Officer Stanley Erck said in the earnings statement.While Novavax and vaccine developing peers were hit last week by concerns surrounding a U.S.-backed effort to waive patent protection for Covid-19 vaccines, Monday’s news flow was less cut and dry. As Novavax had its lowest close in two months, peer BioNTech SE rallied 10% after raising its Covid-19 vaccine sales forecast to $15.1 billion for this year.“These are growing pains and I would remind investors this will be a three horse race basically between Moderna, BioNTech-Pfizer and Novavax,” said B. Riley analyst Mayank Mamtani, who rates Novavax a buy and has a Street-high price target of $365. “This is a great entry point for investors.”The company’s shares closed Monday at $160.50.Novavax earlier published positive results from a combination trial of its Covid-19 vaccine candidate and its seasonal flu vaccine in hamsters.(Adds post-market trading, first quarter results beginning in headline, first 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. Business Reuters 210510 17h13m UK shoppers buy clothes for outdoor social life, holidays at home British shoppers bought warm clothes to meet friends and family outdoors - part of a broader rise in retail spending last month as many shops re-opened - and people booked more summer holidays in the United Kingdom, surveys showed on Tuesday. The British Retail Consortium said total sales were 7.3% higher in April than in the same month two years ago. The BRC said comparisons with April 2019 gave a better sense of trends in the sector than its usual year-on-year sales measure which showed a jump of more than 50%, reflecting how the retail sector was largely shut in April 2020. Business Business World Business Howell date : 210510 17h09m20s Business Reuters 210510 16h41m UPDATE 1-U.S. State Department eases travel advisories for UK, Israel The U.S. State Department said on Monday it has eased travel advisory ratings for the United Kingdom and Israel after raising both countries to its highest warning level last month amid COVID-19 concerns. The State Department lowered the UK to a "Level 3: Reconsider Travel" rating and lowered Israel to "Level 2 – Exercise Increased Caution." It was the second reduction in Israel's rating in recent weeks. Business Bloomberg 210510 16h32m Asia Stocks to Track U.S. Slide on Inflation Angst: Markets Wrap (Bloomberg) -- Stocks look set to drop at the open in Asia Tuesday after a slide in U.S. equities as surging commodity prices stoked concern about inflation. Treasury yields rose.Futures dipped in Japan, Australia and Hong Kong. U.S. contracts slipped after the Nasdaq 100 Index tumbled 2.6% amid the growing anxiety over inflation, which can threaten longer-horizon revenues typical of the technology sector. Tesla Inc. and Apple Inc. were among the biggest decliners. The benchmark S&P 500 Index fell from an all-time high, while the Dow Jones Industrial Average briefly topped 35,000 for the first time.Copper jumped to a record while iron ore futures surged more than 10%. West Texas Intermediate crude fluctuated after a cyberattack forced the closure of a key U.S. pipeline, which operators hope to reopen by the end of the week.Concerns about knock-on price pressures boosted a gauge of inflation expectations to the highest level since 2006. That lifted Treasury yields slightly, taking the benchmark 10-year to 1.60%. The dollar held a decline.The run-up in raw materials is intensifying debate ahead of a U.S. CPI report Wednesday that is forecast to show a strong gain in April. The year-on-year reading will be amplified by the pandemic shock a year earlier, but it plays into a broader market concern that the Federal Reserve may be forced to raise interest rates sooner than current guidance suggest to contain inflation.“We’re going to see volatility definitely over the next couple of months” given uncertainty over the path of growth, Kristen Bitterly, head of capital markets in the Americas for Citi Private Bank, said on Bloomberg TV. “Cash and duration are punitive so you need to make sure that where you have that yield is non-rates sensitive parts of the market.”Here are some key events to watch this week:A range of Fed speakers are due this week, including Governor Lael Brainard on Tuesday, among othersChinese inflation data are due TuesdayOPEC monthly Oil Market Report is published with global demand forecasts and production estimates TuesdayU.S. CPI report Wednesday is forecast to show prices continued to increase in AprilBank of England Governor Andrew Bailey speaks WednesdayThese are some of the main moves in markets:StocksS&P 500 futures fell 0.1% as of 7:26 a.m. in Tokyo. The S&P 500 Index shed 1%Nasdaq 100 contracts lost 0.3%. The Nasdaq 100 fell 2.6%Nikkei 225 futures dropped 1%Australia’s S&P/ASX 200 Index futures fell 0.7%Hong Kong’s Hang Seng Index futures fell 0.6% earlierCurrenciesThe yen was at 108.80 per dollarThe Bloomberg Dollar Spot Index was little changedThe euro was at $1.2137The British pound was at $1.4126BondsThe yield on 10-year Treasuries advanced two basis points to 1.6%. The 30-year yield rose five basis points to 2.33%CommoditiesWest Texas Intermediate crude was at $64.88 a barrelGold was steady at $1,835.42 an ounceFor 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. U.S. Bloomberg 210510 16h26m Cyber Sleuths Blunted Pipeline Hack, Choked Data Flow to Russia (Bloomberg) -- A small group of private-sector companies, with help from several U.S. agencies, disrupted ongoing cyber-attacks against Colonial Pipeline Co. and more than two dozen other victims, according to people with knowledge of the matter.Colonial was able to recover some stolen data because of the intervention, which stopped the flow of stolen data headed to Russia -- believed to be the ultimate destination, according to three people involved with or briefed about the investigation into the breach.The takedown, which occurred on May 8, was enacted by companies that included operators of U.S.-based servers used by the hackers, the people said. The intervention involved the White House, Federal Bureau of Investigation, Cybersecurity and Infrastructure Security Agency and National Security Agency, and shut off key servers used by the hackers, said the people, who requested anonymity because they weren’t authorized to discuss the ongoing investigation.Colonial was the victim of a ransomware attack last week in which the hackers stole nearly 100 gigabytes of data, a breach that caused the company to shut down operations of the biggest fuel pipeline in the U.S. The hackers were using the servers that were disabled as a repository for storing information before relaying it to computers in Russia, the people said.But Colonial’s data hadn’t yet been sent, which allowed investigators to retrieve it, the people said.On Monday, President Joe Biden stopped short of blaming the Kremlin but said “there’s evidence” the hackers or the software they used are “in Russia.”“They have some responsibility to deal with this,” he told reporters at the White House, after announcing that “my administration will be pursuing a global effort of ransomware attacks.”Representatives from the White House, FBI, NSA and the Department of Homeland Security, which overseas the Cybersecurity and Infrastructure Security Agency, didn’t immediately respond to a request for comment, nor did the Russian Embassy in Washington. The takedown represents an unusually swift response to a cyber-attack that’s had an uncommonly large impact, throttling gasoline supplies across the eastern U.S. and threatening a spike in prices.Besides Colonial, the more than two dozen other victims of the ransomware attacks were across a range of industries, two of the people said. They wouldn’t identify the other victims of the attacks. Reuters previously reported that investigators managed to thwart some of the data theft by taking a cloud server offline and that the server carried data from other ransomware attacks under way.The White House had pulled together an inter-agency task force to address the breach, including exploring options for lessening the damage, according to an official. Biden can invoke an array of emergency powers to ensure supplies keep flowing to big cities and airports along the East Coast. Alpharetta, Georgia-based Colonial said Monday that it is bringing the Texas-to-New Jersey pipeline back online in stages and intends to have it fully operational by the end of the week.The FBI confirmed that the attackers used DarkSide ransomware in the attack; others have linked the attack to a ransomware group using the same name. Among the evidence linking the group to Russia is its use of the Russian language and its exclusion of Russian companies as hacking targets, according to cybersecurity experts.They stole nearly 100 gigabytes of data from Colonial’s network on Thursday before locking up computers with ransomware and demanding payment, Bloomberg reported. Colonial shut down its computer network and the pipeline’s operations while it assessed the damage.In the aftermath of the takedown, DarkSide issued a statement on the dark web Monday hinting at contrition. “We are apolitical. We do not participate in geopolitics,” the message says. “Our goal is to make money and not creating problems for society. From today, we introduce moderation and check each company that our partners want to encrypt to avoid social consequences in the future.”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. Business Bloomberg 210510 16h24m Largest U.S. Fuel Pipeline Vows to Overcome Hack by Weekend (Bloomberg) -- North America’s biggest petroleum pipeline is in a race against time to overcome a paralyzing cyberattack before regional fuel reserves run dry.Colonial Pipeline said segments of its Texas-to-New Jersey line are being brought back online in steps, and substantially all service should be restored by the weekend. The pledge eased some of the most immediate concerns about fuel shortages in major population centers up and down the U.S. East Coast. The question now is whether regional inventories held in storage tanks are enough to satisfy demand while Colonial works on resuming operations.The conduit has been shut down since late Friday, prompting frenzied moves by traders and retailers to secure alternative supplies. On Monday, the Federal Bureau of Investigation pointed the finger at a ransomware gang known as DarkSide. The pipeline hasn’t suffered any physical damage and no fuel shortages have been detected, a White House official said.Colonial Chief Executive Officer Joe Blount and a top lieutenant assured Deputy Energy Secretary David Turk and state-level officials on Monday that the company has complete operational control of the pipeline and won’t restart shipments until the ransomware has been neutralized.Bases, RefineriesIn an 18-minute virtual meeting, Blount said shortages may develop in some markets but said Colonial is working with refiners, marketers and retailers to prevent those, according to a person involved with the meeting who wasn’t authorized to speak publicly about the discussion.The pipeline serves 90 U.S. military installations and 26 oil refineries, the person said. Meanwhile, President Joe Biden said Russia has “some responsibility” to address the attack.Emergency shipments of gasoline and diesel from Texas already are on the way to Atlanta and other southeast cities via trucks, and at least two Gulf Coast refineries began trimming output amid expectations that supplies will begin backing up in the nation’s oil-refining nexus. Airlines flying out of Philadelphia International Airport are burning through jet-fuel reserves and will need to locate new supplies “soon,” a spokeswoman said.READ: How a Key U.S. Pipeline Got Knocked Out by Hackers: QuickTakeGovernment officials haven’t advised Colonial on whether it ought to pay the ransom, Deputy National Security Adviser for Cyber and Emerging Technologies Anne Neuberger said during a briefing.New York PricesThe national average retail gasoline price rose to $2.967 a gallon on Monday, a 2.4% increase from Friday, according to AAA. The premium for wholesale gasoline in the New York area expanded to its widest in three months.The attack came just as the nation’s energy industry was preparing to meet stronger fuel demand from summer travel. Americans are once again commuting to the office and booking flights after a year in lockdown. Depending on the duration of the disruption, retail prices could spike, further stoking fears of inflation as commodity prices rally worldwide.DarkSide said in a post on the dark web that it wasn’t to blame and hinted that an affiliate group may have been behind the attack. The group promised to do a better job of screening customers that buy its malware.Gasoline futures that initially surged as much as 4.2% in overnight trading surrendered most of those gains on Monday.Learn more about how emergency powers can counter fuel-supply disruptions.Convenience-store chains in places like Atlanta and Savannah, Georgia, began clamoring for emergency fuel deliveries on Friday afternoon, said Steve Boyd, senior managing director at Houston-based distributor Sun Coast Resources Inc.Water-Borne SuppliesLandlocked cities face the greatest danger of fuel shortages compared with those with access to water-borne deliveries, Boyd said. If the pipeline remains down for many more days, he’s anticipating a “massive surge” in orders. Sun Coast, which operates about 900 trucks, has delivered emergency supplies during 75 major storms over the past 15 years, including during hurricanes Harvey and Irma in 2017.Gasoline for June delivery settled little changed at $2.1334 a gallon in New York. Futures prices have gained more than 50% this year, helped by the recovery from the worst effects of the pandemic.Tankers BookedPrior to Colonial’s Monday statement, traders were seeking vessels to deliver fuel to coastal terminals. Four vessels were provisionally chartered to send diesel or gasoline from Europe to the U.S. Atlantic Coast, according to Danish oil-product tanker company Torm A/S.Some tankers are also being secured to temporarily store gasoline along the Gulf Coast, according to market participants who asked not to be identified because the information isn’t public. Meanwhile, Total SE scaled back activity in a key unit at its Port Arthur, Texas, refinery because of the Colonial shutdown, according to a person familiar with operations. Citgo Petroleum Corp. took similar measures at its Lake Charles, La., plant.Increased SecurityColonial halted all operations on its system late Friday after suffering a ransomware attack that affected some of its IT systems.The event is just the latest example of critical infrastructure being targeted by ransomware. Hackers are increasingly attempting to infiltrate essential services such as electric grids and hospitals. The escalating threats prompted the White House to respond last month with a plan to increase security at utilities and their suppliers. Pipelines are a specific concern because of the central role they play in the U.S. economy.“It’s an all-hands-on-deck effort right now,” said U.S. Commerce Secretary Gina Raimondo. “We are working closely with the company, state and local officials to make sure that they get back up to normal operations as quickly as possible and there aren’t disruptions in supply.”The White House pulled together an inter-agency task force to address the breach, including exploring options for lessening its impact, according to an official. Biden can invoke an array of emergency powers to ensure supplies keep flowing to big cities and airports along the East Coast.Rules EasedSome rules curbing domestic transportation of fuel have been eased to help deal with any shortages. That doesn’t extend to waiving Jones Act, a measure that would allow foreign tankers to help shuffle more petroleum products between U.S. ports.Colonial has the capacity to send about 2.5 million barrels (105 million gallons) a day from Houston as far as North Carolina, and another 900,000 barrels a day to New York.Extortion FeeRansomware cases involve hackers seeding networks with malicious software that encrypts the data and leaves the machines locked until the victims pay the extortion fee. This would be the biggest attack of its kind on a U.S. fuel pipeline.With gasoline inventories ample, pump prices weren’t expected to tick much higher until Memorial Day at the end of May, which is traditionally viewed as the start of the U.S. summer driving season. If the pipeline doesn’t restart soon it will accelerate the move higher.“Atlanta will be one of the earlier sore spots, along with eastern Tennessee, and perhaps the Carolinas,” said Patrick DeHaan, head of petroleum analysis at GasBuddy.The Northeast can secure gasoline shipments from Europe but it will come at an increasing cost the longer the pipeline stays shut. The fuel’s premium to crude in northwest Europe had jumped by more than 5% in intra-day trading earlier on Monday but was still down week-on-week.In the meantime, fuel producers including Marathon Petroleum Corp. are weighing alternatives for how to ship their products to the Northeast.One potential route is the Kinder Morgan-operated Plantation Pipeline, even though it only extends as far north Washington D.C. and has a capacity of 720,000 barrels a day, far short of Colonial’s. Kinder said Sunday it’s working with customers to accommodate additional barrels during Colonial’s outage, and that Plantation is deferring where possible any non-essential maintenance that might otherwise reduce flow rates.While all of the major segments of Colonial’s system remain offline, some smaller so-called laterals connecting specific fuel terminals to delivery points are in service, the company said earlier.Inventories offer minimal cover, ClearView Energy Partners said in a research note. Tankers leaving Rotterdam could take up to 14 days to make the trip to the New York Harbor. The Midwest could theoretically send some of its supplies to the East Coast via rail and barge, but the region’s inventories are tighter than in previous years, ClearView said.“The Colonial outage comes at a critical juncture for the recovering U.S. economy: the start of the summer driving season,” ClearView said. “We therefore think lawmakers could begin a ‘blame game’ immediately, and a sustained disruption that leads to a significant pump price spike could increase prospects of domestic policy interventions.”(Adds Citgo curtailment in seventh, 19th 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. Business Yahoo Finance 210510 16h19m Stock market news live updates: Stock futures open mixed after Nasdaq's worst day since March Stock futures began the overnight session mixed Monday evening, with contracts on the Nasdaq extending declines. Business Howell date : 210510 16h08m43s Business Reuters 210510 15h58m Startup mortgage lender Better to go public in SPAC merger - WSJ Startup mortgage lender Better plans to go public by merging with a special-purpose acquisition company, the Wall Street Journal reported on Monday citing people familiar with the matter. A SPAC is a company with no regular business operations but with a pool of capital raised through an IPO that it uses to take a private firm public. Business Bloomberg 210510 15h53m Largest U.S. Fuel Pipeline Vows to Overcome Hack by Weekend (Bloomberg) -- North America’s biggest petroleum pipeline is in a race against time to overcome a paralyzing cyberattack before regional fuel reserves run dry.Colonial Pipeline said segments of its Texas-to-New Jersey line are being brought back online in steps, and substantially all service should be restored by the weekend. The pledge eased some of the most immediate concerns about fuel shortages in major population centers up and down the U.S. East Coast. The question now is whether regional inventories held in storage tanks are enough to satisfy demand while Colonial works on resuming operations.The conduit has been shut down since late Friday, prompting frenzied moves by traders and retailers to secure alternative supplies. On Monday, the Federal Bureau of Investigation pointed the finger at a ransomware gang known as DarkSide. The pipeline hasn’t suffered any physical damage and no fuel shortages have been detected, a White House official said.Colonial Chief Executive Officer Joe Blount and a top lieutenant assured Deputy Energy Secretary David Turk and state-level officials on Monday that the company has complete operational control of the pipeline and won’t restart shipments until the ransomware has been neutralized.Bases, RefineriesIn an 18-minute virtual meeting, Blount said shortages may develop in some markets but said Colonial is working with refiners, marketers and retailers to prevent those, according to a person involved with the meeting who wasn’t authorized to speak publicly about the discussion.The pipeline serves 90 U.S. military installations and 26 oil refineries, the person said. Meanwhile, President Joe Biden said there’s no apparent signs that Russia played any role in the hack.Emergency shipments of gasoline and diesel from Texas already are on the way to Atlanta and other southeast cities via trucks, and at least one Gulf Coast refinery began trimming output amid expectations that supplies will begin backing up in the nation’s oil-refining nexus. Airlines flying out of Philadelphia International Airport are burning through jet-fuel reserves and will need to locate new supplies “soon,” a spokeswoman said.READ: How a Key U.S. Pipeline Got Knocked Out by Hackers: QuickTakeGovernment officials haven’t advised Colonial on whether it ought to pay the ransom, Deputy National Security Adviser for Cyber and Emerging Technologies Anne Neuberger said during a briefing.New York PricesThe national average retail gasoline price rose to $2.967 a gallon on Monday, a 2.4% increase from Friday, according to AAA. The premium for wholesale gasoline in the New York area expanded to its widest in three months.The attack came just as the nation’s energy industry was preparing to meet stronger fuel demand from summer travel. Americans are once again commuting to the office and booking flights after a year in lockdown. Depending on the duration of the disruption, retail prices could spike, further stoking fears of inflation as commodity prices rally worldwide.DarkSide said in a post on the dark web that it wasn’t to blame and hinted that an affiliate group may have been behind the attack. The group promised to do a better job of screening customers that buy its malware.Gasoline futures that initially surged as much as 4.2% in overnight trading surrendered most of those gains on Monday.Learn more about how emergency powers can counter fuel-supply disruptions.Convenience-store chains in places like Atlanta and Savannah, Georgia, began clamoring for emergency fuel deliveries on Friday afternoon, said Steve Boyd, senior managing director at Houston-based distributor Sun Coast Resources Inc.Water-Borne SuppliesLandlocked cities face the greatest danger of fuel shortages compared with those with access to water-borne deliveries, Boyd said. If the pipeline remains down for many more days, he’s anticipating a “massive surge” in orders. Sun Coast, which operates about 900 trucks, has delivered emergency supplies during 75 major storms over the past 15 years, including during hurricanes Harvey and Irma in 2017.Gasoline for June delivery settled little changed at $2.1334 a gallon in New York. Futures prices have gained more than 50% this year, helped by the recovery from the worst effects of the pandemic.Tankers BookedPrior to Colonial’s Monday statement, traders were seeking vessels to deliver fuel to coastal terminals. Four vessels were provisionally chartered to send diesel or gasoline from Europe to the U.S. Atlantic Coast, according to Danish oil-product tanker company Torm A/S.Some tankers are also being secured to temporarily store gasoline along the Gulf Coast, according to market participants who asked not to be identified because the information isn’t public. Meanwhile, Total SE scaled back activity in a key unit at its Port Arthur, Texas, refinery because of the Colonial shutdown, according to a person familiar with operations.Increased SecurityColonial halted all operations on its system late Friday after suffering a ransomware attack that affected some of its IT systems.The event is just the latest example of critical infrastructure being targeted by ransomware. Hackers are increasingly attempting to infiltrate essential services such as electric grids and hospitals. The escalating threats prompted the White House to respond last month with a plan to increase security at utilities and their suppliers. Pipelines are a specific concern because of the central role they play in the U.S. economy.“It’s an all-hands-on-deck effort right now,” said U.S. Commerce Secretary Gina Raimondo. “We are working closely with the company, state and local officials to make sure that they get back up to normal operations as quickly as possible and there aren’t disruptions in supply.”The White House pulled together an inter-agency task force to address the breach, including exploring options for lessening its impact, according to an official. Biden can invoke an array of emergency powers to ensure supplies keep flowing to big cities and airports along the East Coast.Rules EasedSome rules curbing domestic transportation of fuel have been eased to help deal with any shortages. That doesn’t extend to waiving Jones Act, a measure that would allow foreign tankers to help shuffle more petroleum products between U.S. ports.Colonial has the capacity to send about 2.5 million barrels (105 million gallons) a day from Houston as far as North Carolina, and another 900,000 barrels a day to New York.Extortion FeeRansomware cases involve hackers seeding networks with malicious software that encrypts the data and leaves the machines locked until the victims pay the extortion fee. This would be the biggest attack of its kind on a U.S. fuel pipeline.With gasoline inventories ample, pump prices weren’t expected to tick much higher until Memorial Day at the end of May, which is traditionally viewed as the start of the U.S. summer driving season. If the pipeline doesn’t restart soon it will accelerate the move higher.“Atlanta will be one of the earlier sore spots, along with eastern Tennessee, and perhaps the Carolinas,” said Patrick DeHaan, head of petroleum analysis at GasBuddy.The Northeast can secure gasoline shipments from Europe but it will come at an increasing cost the longer the pipeline stays shut. The fuel’s premium to crude in northwest Europe had jumped by more than 5% in intra-day trading earlier on Monday but was still down week-on-week.In the meantime, fuel producers including Marathon Petroleum Corp. are weighing alternatives for how to ship their products to the Northeast.One potential route is the Kinder Morgan-operated Plantation Pipeline, even though it only extends as far north Washington D.C. and has a capacity of 720,000 barrels a day, far short of Colonial’s. Kinder said Sunday it’s working with customers to accommodate additional barrels during Colonial’s outage, and that Plantation is deferring where possible any non-essential maintenance that might otherwise reduce flow rates.While all of the major segments of Colonial’s system remain offline, some smaller so-called laterals connecting specific fuel terminals to delivery points are in service, the company said earlier.Inventories offer minimal cover, ClearView Energy Partners said in a research note. Tankers leaving Rotterdam could take up to 14 days to make the trip to the New York Harbor. The Midwest could theoretically send some of its supplies to the East Coast via rail and barge, but the region’s inventories are tighter than in previous years, ClearView said.“The Colonial outage comes at a critical juncture for the recovering U.S. economy: the start of the summer driving season,” ClearView said. “We therefore think lawmakers could begin a ‘blame game’ immediately, and a sustained disruption that leads to a significant pump price spike could increase prospects of domestic policy interventions.”(Adds pipeline executive’s 18-minute conference call with federal officials in fourth, fifth 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. Politics Reuters 210510 15h51m U.S. State Dept approves potential sale of AEGIS Combat System to Canada -Pentagon The U.S. State Department has approved the potential sale to Canada of 4 AEGIS Combat Systems made by Lockheed Martin in a deal valued at up to $1.7 billion, the Pentagon said on Monday. The Pentagon said the sale of the powerful missile and radar systems to the NATO ally would "significantly improve" network-centric warfare capabilities for U.S. forces operating globally alongside Canada's. The package would include four shipsets worth of the AEGIS Combat System and three shipsets of the MK 41 Vertical Launch System as well as support equipment, spares and technical support, the Pentagon said. Business Reuters 210510 15h44m UPDATE 1-IMF approves financing plan of debt relief to Sudan The International Monetary Fund (IMF) executive board approved on Monday a financing plan to help mobilize resources needed for the fund to cover its share of debt relief to Sudan. The financing plan relies on a broad effort of IMF member countries, including cash grants and contributions derived from the fund's internal resources, IMF Managing Director Kristalina Georgieva said in a statement. "This marks a critical step in helping Sudan advance the process of normalizing relations with the international community and make progress towards achieving debt relief under the Heavily-Indebted Poor Country (HIPC) Initiative," she added. Business Reuters 210510 15h35m GLOBAL MARKETS-U.S. stocks retreat from record high, dollar near 10-week low U.S. stocks fell on Monday and the Dow Jones Industrial Average snapped back from a record high, as worries about accelerating inflation dragged on shares and hobbled the dollar, which struggled at a 10-week low. U.S. equities' losses deepened as the breakeven rates for U.S. Treasury Inflation-Protected Securities, or TIPS, scaled multi-year highs, underscoring rising inflation expectations. Howell date : 210510 15h08m06s Business Yahoo Finance Video 210510 14h59m 305 Fitness reopens all studios Sadie Kurzban, Founder & CEO of 305 Fitness, joined Yahoo Finance Live to discuss the reopening of all the company's studios and her outlook for the fitness industry. Business Yahoo Finance Video 210510 14h57m Mining companies begin to ramp up staffing efforts Lindsey Schultz, MRC Recruiting CEO, joined Yahoo Finance Live to discuss mining companies ramping up staffing efforts. U.S. Reuters 210510 14h49m U.S. State Department eases travel advisories for UK, Israel The U.S. State Department said on Monday it has eased travel advisory ratings for the United Kingdom and Israel after having raised both countries to its highest warning level last month. The State Department lowered the UK to a "Level 3: Reconsider Travel" rating and lowered Israel to "Level 2 – Exercise Increased Caution." It was the second time the State Department had it reduced its advisory rating on level on Israel in recent weeks. World Bloomberg 210510 14h48m India Variant a Global Worry; NY College Vaccines: Virus Update (Bloomberg) -- India’s capital of New Delhi extended its lockdown for another week as it battled a wave of infections and warned about a potentially deadly fungal infection in Covid-19 patients. Meanwhile, the World Health Organization sees the highly contagious variant spreading in India as a global concern.The number of new cases in U.S. rose last week at the slowest pace since the pandemic began, as more Americans are vaccinated and the nation recovers from a winter spike fueled by holiday travel. The total number of new infections was the lowest since September.In New York, public college and university students will require to be vaccinated before returning to class in person in September. Free subway and train rides are being offered to those who get shots at city mass-transit terminals.Key DevelopmentsGlobal Tracker: Cases reach 158.5 million; deaths exceed 3.3 millionVaccine Tracker: More than 1.29 billion doses have been givenCDC stirs concern by paring studies of post-vaccine casesUnused shots pile up as mistrust blights Hong Kong vaccine driveMumbai’s daily vaccine roulette offers dark humor in IndiaTokyo gives a taste of what Covid era Olympic games will be likeSubscribe to a daily update on the virus from Bloomberg’s Prognosis team here. Click CVID on the terminal for global data on cases and deaths.NY College Students Need Vaccines for Class (4:35 p.m. NY)Students attending public colleges and universities in New York state will be required to be fully vaccinated to attend in person, Governor Andrew Cuomo said.“No excuses,” Cuomo said at a virus briefing, urging state and city university system students to get vaccinated now instead of waiting until September.The state can’t legally mandate the vaccination requirement unless the federal government fully approves the vaccine for permanent use beyond the current emergency use authorization, Cuomo said. “We believe that they will do that in the near future.”NY Offers Free MTA Rides for Shots (12:10 p.m. NY)New York is setting up vaccination sites at Grand Central, Penn Station and other mass transit stops, and will offer free Metropolitan Transportation Authority rides for everyone who gets a shot.“We want to see more and more customers return to the system,” MTA Chairman Patrick Foye said at a press briefing with Governor Andrew Cuomo.Riders will be given the one-dose Johnson & Johnson shot. On Friday, the subway and the Long Island Rail Road both had the most riders since the pandemic began.WHO Says India Variant a Global Concern (12:08 p.m. NY)The World Health Organization considers a highly contagious Covid variant spreading in India as a “variant of concern” at the global level, according to Maria Van Kerkhove, the group’s technical lead for Covid-19.The WHO will provide more details in a report Tuesday, Van Kerkhove said in a news briefing Monday. She called for more targeted sequencing to be done to track the variant.“There is some available information to suggest increased transmissibility,” according to Van Kerhove. She said a paper that hasn’t yet been peer-reviewed studied a limited number of patients and found a suggestion of some reduced neutralization as well.Illinois to Open Clinics in Office Buildings (11:27 a.m. NY)Illinois will begin offering vaccine clinics at major commercial office buildings, Governor J.B. Pritzker said. The clinics will reach workers in Chicago sites such as the Merchandise Mart and Wrigley Building as well as several suburban office buildings, with slots available during shift changes, Pritzker said during a press conference.“More vaccinations will mean more of a return to normal for everyone,” said Pritzker, who last week announced that his state is on track to reopen as soon as June 11.Chicago’s reopening, which is planned for July 4, also partly depends on vaccination rates, and the city is working to increase uptake in young Black residents as well as in communities including the South side, Mayor Lori Lightfoot said during the event.NYC Offers Free Tickets to Get Vaccinated (11:20 a.m. NY)New York City will give away free tickets to Lincoln Center, Brooklyn Cyclones baseball, botanical gardens and other venues as incentives to get a Covid-19 vaccine in a bid to increase protection in the most populous U.S. city.De Blasio said the city has administered more than 7 million shots but that the rate has dropped precipitously since April, when it doled out as many as 115,000 vaccinations in a single day. On Friday, fewer than 60,000 shots were distributed, and fewer than 16,000 were given to residents on Sunday, which was the Mothers Day holiday.Most Vaccinated Nation Sees Case Surge (10:45 a.m. NY)Seychelles, which has vaccinated the largest proportion of its population of any country against Covid-19, said active cases of the disease more than doubled in the week to May 7. The health ministry of the archipelago off Africa’s east coast said in a statement on Monday that 2,486 people currently have Covid-19 and of those, 37% have received two doses of vaccine. The number of active cases rose from 1,068 a week earlier. Of those in the country who have taken two doses, 57% were inoculated with Sinopharm shots and the rest with Covishield, a vaccine made in India under license from AstraZeneca Plc.U.S. New Cases Continue to Slow (10:15 a.m. NY)The number of new coronavirus cases in U.S. rose last week at the slowest pace since the pandemic began, as more Americans are vaccinated and the nation recovers from a winter spike fueled by holiday travel.There were 286,107 new infections in the week ended Sunday, a 0.9% increase from the prior week and the lowest total since the seven days ended Sept. 20, according to data compiled by Johns Hopkins University and Bloomberg. The total on Sunday of 21,767 new cases was the lowest single-day tally since June 14, also a Sunday.Deaths, which typically lag behind new cases by several weeks, also rose at the slowest rate of the pandemic, 0.82%. The 4,709 new fatalities were the least since the week ended July 5.Spain Hopes for Immunity in 100 Days (9:38 a.m. NY)Spanish Prime Minister Pedro Sanchez said during a visit to Greece that Spain was about 100 days from reaching herd immunity with 70% of the population vaccinated.That’s in line with a previous government prediction that immunity would be achieved at the end of August. Spain has so far administered about 19 million vaccine doses, with nearly 6 million people receiving two doses.Lockdown Easing in Austria Given Green Light (8:26 a.m. NY)Austria will reopen restaurants, hotels and allow sport and music events from May 19 as part of a planned easing of lockdown restrictions. Schools will also return to regular teaching next week after the nation registered 820 new coronavirus cases on Monday, the least since October.Attending social events will require a negative virus test, or proof of vaccination or immunity, Chancellor Sebastian Kurz told reporters on Monday. Family gatherings will still be limited to four adults and their children indoors, and 10 adults outdoors, until a further decline in infections.Gabon Gets 300,000 Sinopharm Doses (8:04 a.m. NY)The Central African nation got its second batch of Sinopharm shots on May 9 following a first shipment of 100,000 doses in March, the health ministry said. Gabon has relied largely on the Chinese-manufactured shot for its inoculation program. A total of 8,035 people were vaccinated by April 30, according to the health ministry.China ‘Quarantine Rope’ for Everest Summit (8 a.m. NY)China pledged to deploy a “quarantine rope” on the summit of Mount Everest to prevent the close contact of climbers on the world’s highest peak. The rope is a bid to prevent climbers who reach the summit from the Nepal and China approaches from spreading infection, according to Nyima Tsering, the head of the Tibet Sports Bureau.Bali Eyes Tourism After Vaccinations (7:45 am NY)The Indonesian island of Bali expects to have vaccinated 70% of its population against Covid-19, by July, potentially enough to achieve “herd immunity” and allow it to begin reopening to foreigners, said Governor Wayan Koster in a statement. The local government has secured enough doses to do so, with more than 1.3 million having received at least their first shots.Malaysia Tightens Curbs as Cases Rise (7:12 a.m.)Malaysia has tightened restrictions on movements across the country to contain a rise in infections, Prime Minister Muhyiddin Yassin said.The restrictions, in place from May 12 to June 7, mean that schools are to close, social gatherings are banned and no social visits are allowed during the coming Eid festival. Travel between districts and states will also be banned.U.K. Lowers Covid Alert Level (7:10 a.m. NY)Chief medical officers from around the U.K. agreed to lower the Covid-19 alert status from Level 4 to Level 3, citing falling case numbers and deaths after months of restrictions and a fast-paced vaccination effort.The move comes after Prime Minister Boris Johnson confirmed that indoor mixing and overnight stays with friends or family would be allowed from May 17.Vaccine Demand Boosts BioNTech Forecast (7 a.m. NY)BioNTech raised its Covid-19 vaccine sales estimate to 12.4 billion euros ($15.1 billion) for this year, issuing a new target for the shot it sells with Pfizer Inc. BioNTech had previously predicted 9.8 billion euros in 2021 revenue from the shot, its first marketed product.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. Business Bloomberg 210510 14h38m SEC Awards Joint Whistle-Blowers $22 Million for Enforcement Tip (Bloomberg) -- The U.S. Securities and Exchange Commission will pay about $22 million to two whistle-blowers who provided information on securities violations tied to a financial services firm.The first whistle-blower, whose tips sparked the SEC’s investigation, received $18 million, the agency said in a Monday statement. The second whistle-blower received $4 million after providing the SEC information much later when the regulator’s probe was already underway.“The reporting of credible information by these whistle-blowers and their subsequent cooperation with the staff’s investigation allowed the Commission to better understand complex transactions,” Emily Pasquinelli, acting head of the SEC’s whistle-blower office, said in the statement.The SEC has paid about $838 million to 156 tipsters since the program started in 2012. Individuals are eligible for awards ranging from 10% to 30% of the amount of fines collected in enforcement cases where penalties exceed $1 million. Funds used to pay tipsters don’t come out of disgorgement, which is the portion of a sanction that is supposed to be returned to harmed investors.Neither the whistle-blowers nor the firm accused of misconduct were named by the SEC, in keeping with the federal government’s policy of withholding information that could reveal a tipster’s identity.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. Business Bloomberg 210510 14h37m Alphabet, Facebook Drop as Citi Warns of Ad Growth Slowdown (Bloomberg) -- Alphabet Inc. and Facebook Inc. tumbled on Monday, leading a broad move lower in internet stocks after Citigroup Inc. warned about the outlook for digital advertising, a key source of revenue for the sector.The firm downgraded both names to neutral from buy, writing that “caution is in order” for companies that derive revenue from digital advertising. While ad budgets are expected to continue shifting online, growth is likely to decelerate, and “historically, that usually isn’t bullish for multiples,” analyst Jason Bazinet wrote.Shares of Facebook closed down 4.1% on Monday, their biggest one-day percentage loss since November. Google-parent Alphabet ended down 2.6% in its worst session since March. The S&P 500 Communications Services index fell 1.9% while the Nasdaq 100 Index dropped 2.6%; both indexes also had their biggest one-day drops since March. Tech shares were broadly pressured on Monday by inflation concerns.Alphabet shares are trading at almost eight times revenue, near their highest in more than a decade, according to data compiled by Bloomberg. Facebook’s price-to-sales multiple is nine, well above the 5.2 ratio for companies in the Nasdaq 100 Stock Index.Even with the recent decline, the pair are the best performers among the five biggest U.S. technology companies this year. Alphabet is up more than 30%, while Facebook has risen 12%, exceeding Microsoft’s 11% gain. Both Apple and Amazon.com are negative for 2021.Both reported first-quarter revenue that dwarfed analyst estimates when they reported two weeks ago. Alphabet’s results were supported by a recovery in business categories that had struggled during the pandemic, such as travel and retail. Chief Financial Officer Ruth Porat said the results “reflect elevated consumer activity online and broad-based growth in advertiser revenue,” though the durability of these trends will depend on the pace of the global recovery from Covid-19.Facebook’s report showed strong demand from retailers and other advertisers, but it reiterated its view that growth could stall in the second half of the year.Digital ads have seen robust growth over the past two quarters as the pandemic accelerated a shift toward online spending. However, “the sell side has extrapolated the recent strength for the next five years,” a view that seems too optimistic, Citi wrote. The firm expects growth will decelerate in coming quarters, posing a risk to stock multiples.Read more: Tech Giants Reap Huge Ad Revenue Growth in First QuarterAmong other names in the group, Citi reiterated neutral ratings on both Pinterest Inc. and Twitter Inc, along with a sell rating on Snap Inc. The only digital-ad stock Citi recommends buying is Roku Inc., as “the connected TV market is still nascent.” Shares of Twitter, Snap, and Pinterest all fell on Monday.With the downgrade, Citi is now the only firm tracked by Bloomberg that doesn’t recommend buying Alphabet. Forty-two firms still have a bullish view on the shares. For Facebook, there are now 49 buy ratings, six holds, and three firms with a negative view on the stock. The average analyst price target points to potential gains of more than 20% for Alphabet, and more than 25% for Facebook.Last week, Bloomberg Intelligence wrote that ad pricing would remain a tailwind for Facebook this year “due to demand for its ad inventory, while ad-impressions growth could taper slightly amid reopenings.” It added that the social-media company was well-positioned to achieve 30%-plus growth in its core mobile-ad business despite tougher comparisons in the second half of the year.(Updates to market close and adds detail about Monday’s weakness.)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. Business Reuters 210510 14h33m Occidental Petroleum loss narrows as crude prices rebound The company, like many of its peers, has benefited from a rebound in oil prices, up about 23% in the first quarter, as global fuel demand recovered after being decimated in 2020 by lockdowns to curb the spread of COVID-19. The average price for Occidental's worldwide crude oil rose to $55.65 per barrel in the first three months of the year, from $40.76 per barrel in the prior quarter. However, total production from continuing operations fell to 1.12 million barrels of oil equivalent per day (boepd), from fourth quarter's 1.14 million boepd. Howell date : 210510 14h07m28s Business Bloomberg 210510 13h48m Triple Flag Aims to Raise $250 Million From IPO (Bloomberg) -- Triple Flag Precious Metals Corp. is seeking to raise about $250 million by selling shares through an initial public offering in Canada.The Canadian gold-focused streaming and royalty company plans to sell about 19.2 million shares for between $11.50 and $14.50 each in its IPO, according to a May 10 regulatory filing. The sale is being led by Bank of America Securities, Credit Suisse Group and Bank of Nova Scotia.Triple Flag was founded in 2016 by Shaun Usmar, a former chief financial officer of Barrick Gold Corp., with the firm offering “bespoke financing solutions to the metals and mining industry.”“Our mission is to be a sought after, long term funding partner to mining companies throughout the commodity cycle, while generating attractive returns for our investors,” the Toronto-based company said in its filing.The company aims to list on the Toronto Stock Exchange under the symbol TFPM. Sale proceeds will be used to repay debt.(Corrects to note shares will list only in Canada)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. Business Bloomberg 210510 14h05m Tech Sends Stocks Down With Inflation Angst Rising: Markets Wrap (Bloomberg) -- Technology shares led U.S. stocks lower as surging commodity prices stoked concern about whether inflation will derail a growth rebound in the world’s largest economy and spoil a record stock rally.The tech-heavy Nasdaq 100 Index tumbled 2.6% amid the growing anxiety over inflation, which can threaten longer-horizon revenues typical of the sector. Tesla and Apple were among the biggest decliners. The ARK Innovation ETF resumed its slide. The Dow Jones Industrial Average briefly topped 35,000 for the first time. The benchmark S&P 500 fell from an all-time high. Treasury yields edged higher as traders brace for a busy week of auctions.“Amid these new highs remember that the market doesn’t move only in one direction,” said Chris Larkin, managing director of trading and investing product at E*Trade Financial. “While a full economic recovery may already be priced into the market, the weak employment data could have temporarily eased worries about too-hot inflation and the necessity of interest rate hikes to combat it.” Copper jumped to a record while iron ore futures surged more than 10%, adding to concern about inflation. West Texas Intermediate fluctuated after a cyberattack forced the closure of a key U.S. pipeline, which operators hope to reopen by the end of the week.Meanwhile, the pound climbed to its highest level since February after U.K. elections denied Scotland’s main independence party an outright majority and strengthened the grip of the Conservatives.The run-up in raw materials is intensifying debate ahead of a U.S. CPI report Wednesday that is forecast to show price pressures increased in April. The data will be closely watched by policy makers at the Federal Reserve trying to gauge the speed of the recovery after job growth significantly undershot forecasts.“People have been gravitating to value -- now you can find growth outside of tech,” said Keith Lerner, chief market strategist at Truist Advisory Services. “As inflation expectations continue to move higher, that’s more beneficial for the value side of the trade.”Read more: Inflation Debate Hits Emerging Markets as Pimco Stands Firm The MLIV Question of the Day: How Could Highest CPI in Decade Hit Assets?Here are some key events to watch this week:A range of Fed speakers are due this week, including Governor Lael Brainard on Tuesday, among othersChinese inflation data are due TuesdayOPEC monthly Oil Market Report is published with global demand forecasts and production estimates TuesdayU.S. CPI report Wednesday is forecast to show prices continued to increase in AprilBank of England Governor Andrew Bailey speaks WednesdayThese are some of the main moves in markets:StocksThe S&P 500 fell 1%, more than any closing loss since March 18 as of 4:01 p.m. New York timeThe Nasdaq 100 fell 2.6%, more than any closing loss since March 18The Dow Jones Industrial Average fell 0.1%, more than any closing loss since April 30The MSCI World index fell 0.6%, more than any closing loss since May 4CurrenciesThe Bloomberg Dollar Spot Index fell 0%, falling for the fourth straight day, the longest losing streak since April 19The euro fell 0.2% to $1.2142The British pound surged 1.1%, more than any closing gain since April 19The Japanese yen fell 0.1% to 108.76 per dollarBondsThe yield on 10-year Treasuries advanced two basis points, more than any closing gain since April 29Germany’s 10-year yield advanced zero basis points, climbing for the fourth straight day, the longest winning streak since April 29Britain’s 10-year yield advanced one basis point to 0.79%CommoditiesWest Texas Intermediate crude fell 0.1% to $65 a barrelGold futures rose 0.4%, climbing for the fourth straight day, the longest winning streak since Feb. 10For 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. Business Bloomberg 210510 13h36m Software Firm Procore Targets $616 Million for IPO Raise (Bloomberg) -- Procore Technologies Inc., a cloud-based construction software company, is seeking to raise as much as $616 million in an initial public offering.Procore, which is restarting its IPO plans after they were delayed by the coronavirus pandemic, said in a filing Monday that it plans to sell 9.47 million shares for $60 to $65 each.At the top of that range, the company would have a market value of $8.3 billion based on the outstanding shares listed in its filings with the U.S. Securities and Exchange Commission. Diluted to include employee stock options and restricted stock units, that value increases to at least $9.4 billion.Procore, based in Carpinteria, California, first filed in early 2020 to go public but postponed the transaction during the coronavirus pandemic. After the delay, it raised more than $150 million in a funding round from investors including Dan Sundheim’s D1 Capital Partners at a $5 billion valuation, Bloomberg News reported.The company continued to attract new users during the pandemic, growing its customer base by 19% in 2020. With more than 40% of construction firms reporting higher costs and slower project completion due to labor shortages, the digitization of the industry has accelerated during the past year, the company said.For the first quarter, Procore had a net loss of $14 million on revenue of $114 million, compared with a $19 million loss on revenue of $92 million for the same period a year ago, according to its filings.Procore’s top backers are Iconiq Strategic Partners, which will own almost 37% of the shares after the IPO, and Bessemer Venture Partners, which will have a 13% stake. Tiger Global Management is also an investor.The offering is being led by Goldman Sachs Group Inc., JPMorgan Chase & Co., Barclays Plc and Jefferies Financial Group Inc.e. Procore plans to list on the New York Stock Exchange under the symbol PCOR.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. Business Reuters 210510 13h30m CANADA FX DEBT-C$ climbs to more than 3-1/2-year peak vs. U.S. dollar * Copper prices hit all-time high * Canadian 10-year yield up slightly (Adds analyst comment, updates prices) By Gertrude Chavez-Dreyfuss NEW YORK, May 10 (Reuters) - The Canadian dollar rose on Monday to its highest level since mid-September 2017 against a broadly weak U.S. currency, boosted overall by firmer commodity prices and the Bank of Canada beginning to tighten its monetary policy. Analysts said those two factors had helped shield the Canadian dollar from the negative impact of the economy's worse-than-expected jobs report last Friday. Canada's economy lost 207,100 jobs in April, more than analysts' estimates of 175,000 job losses, with declines driven by coronavirus restrictions in populous Ontario, Quebec and British Columbia, data showed. Business Bloomberg 210510 13h25m Iron Ore Turns ‘Very Hot’ as 10% Surge Adds to Commodities Boom (Bloomberg) -- Iron ore futures surged more than 10% and copper extended its record run amid increasing bets they’ll be among the biggest winners from a commodities boom that’s stoking concerns about inflation around the world.While analysts struggled to pinpoint a trigger for Monday’s gains in iron ore, they cited several trends including optimism that central banks will retain supportive policies even as the global economy recovers. Expectations China will tighten environmental rules have added to the bull case for copper -- seen as vital to the green energy transition -- and fueled speculation that steelmakers may front-load iron ore purchases before new curbs kick in.The gains add to a more than yearlong surge in raw-materials prices that’s shifted into overdrive in recent weeks, with the Bloomberg Commodity Spot Index rising for 14 of the past 15 days to the highest level in almost a decade. Metals including copper pared advances later in Monday’s session as dollar losses ebbed and U.S. Treasury yields advanced.A “Goldilocks scenario” may be forming as strengthening global growth combines with restrained wage pressures and a dovish Federal Reserve, Goldman Sachs Group Inc. commodities analysts said in a May 7 report, the same day weak U.S. jobs figures added to the case for more stimulus. The risk for bulls -- and anyone betting on buoyant returns from stocks and bonds -- is that the surge in raw materials feeds through to broader measures of inflation and eventually forces central banks to tighten.For copper, the long-term outlook is also being bolstered by a likely surge in demand as governments target huge investments in renewables and electric-vehicle infrastructure. While copper’s last march to record highs in 2011 was driven by China’s economic boom, analysts expect this rally to be supported by a much broader rise in metals usage.”We’re in a new world,” Jeffrey Currie, global head of commodities research at Goldman Sachs, said in a Bloomberg TV interview. “We’re seeing a much more balanced growth between the U.S, Europe and China.”The iron ore sector “is very, very hot,” Vivek Dhar, commodities analyst at Commonwealth Bank of Australia, said in Bloomberg Television interview. “Supply is still not able to meet that strong demand.”Iron ore futures in Singapore jumped to a record above $226 a ton. Contracts in Dalian rose by the daily limit when the market opened.Copper, often viewed as a barometer of the global economy’s health, rose as much as 3.2% to a record $10,747.50 a ton on the London Metal Exchange, before erasing gains and settling 0.3% lower at $10,382. Aluminum slipped 0.4% after climbed as much as 2.5%.“Looks like there’s some profit-taking going on in copper and other metals after the big surge,” said Wenyu Yao, senior commodities strategist at ING Bank.Still, “there’s still quite a lot of room to go,” Evy Hambro, global head of thematic investing at BlackRock Inc., said on Bloomberg Television. “What we’re really doing is we’re testing the upper ranges of commodity markets to work out what the new price range is going to be.”There were fresh jitters on the supply side as China’s major copper smelters vowed to reduce purchases of mined concentrate this year as the country seeks to curb carbon emissions. While that could ease strains on mine supply, the smelters will need to boost scrap purchases to avoid a slump in production of refined metal.“It’s notable that the smelters don’t imply a cut to output,” Morgan Stanley analysts Susan Bates and Marius van Straaten said in an emailed note. “They appear comfortable that they can make up the reduction in concentrate purchases with a lift in the use of copper in other forms.”The iron-ore boom comes as China’s steelmakers keep output rates above 1 billion tons a year, despite a swath of production curbs aimed at reducing carbon emissions and reining in supply. Those measures have boosted steel prices and profitability at mills, allowing them to better accommodate higher iron ore costs and potentially front-load output ahead of more environmental restrictions.Steelmakers in the rest of the world, such as ArcelorMittal SA, are also enjoying a boom as demand bounces back from pandemic lows.“There is a chance that ex-China demand can come back to such an extent that we still see steel demand pick up globally and that will see iron ore demand remain at these elevated levels,” CBA’s Dhar said.Traders will be watching closely for how China responds. Shipmakers and household-goods manufacturers will eventually be unable to withstand elevated steel prices, the country’s state-run Xinhua News Agency reported on Sunday, citing analysis from the China Iron & Steel Association. The report said it would be difficult for steel to continue rallying.The government has scheduled nationwide inspections on steel-capacity cuts, with the National Development and Reform Commission calling on the state asset regulator and provincial level working groups to complete self-checks by May 15. Authorities will conduct on-site inspections in June and July, according to a statement Monday.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. Howell date : 210510 13h36m51s Business Yahoo Finance Video 210510 13h27m Colonial pipeline shutdown to keep volatility across the commodity space: Prosper Trading Academy CEO Scott Bauer, Prosper Trading Academy CEO, joins Yahoo Finance Live to discuss impacts from one of America's largest pipelines shutting down after being hit by a cyber attack. Business Bloomberg 210510 13h24m Iron Ore Turns ‘Very Hot’ as 10% Surge Adds to Commodities Boom (Bloomberg) -- Iron ore futures surged more than 10% and copper extended its record run amid increasing bets they’ll be among the biggest winners from a commodities boom that’s stoking concerns about inflation around the world.While analysts struggled to pinpoint a trigger for Monday’s gains in iron ore, they cited several trends including optimism that central banks will retain supportive policies even as the global economy recovers. Expectations China will tighten environmental rules have added to the bull case for copper -- seen as vital to the green energy transition -- and fueled speculation that steelmakers may front-load iron ore purchases before new curbs kick in.The gains add to a more than yearlong surge in raw-materials prices that’s shifted into overdrive in recent weeks, with the Bloomberg Commodity Spot Index rising for 14 of the past 15 days to the highest level in almost a decade. Metals including copper pared advances later in Monday’s session as dollar losses ebbed and U.S. Treasury yields advanced.A “Goldilocks scenario” may be forming as strengthening global growth combines with restrained wage pressures and a dovish Federal Reserve, Goldman Sachs Group Inc. commodities analysts said in a May 7 report, the same day weak U.S. jobs figures added to the case for more stimulus. The risk for bulls -- and anyone betting on buoyant returns from stocks and bonds -- is that the surge in raw materials feeds through to broader measures of inflation and eventually forces central banks to tighten.For copper, the long-term outlook is also being bolstered by a likely surge in demand as governments target huge investments in renewables and electric-vehicle infrastructure. While copper’s last march to record highs in 2011 was driven by China’s economic boom, analysts expect this rally to be supported by a much broader rise in metals usage.”We’re in a new world,” Jeffrey Currie, global head of commodities research at Goldman Sachs, said in a Bloomberg TV interview. “We’re seeing a much more balanced growth between the U.S, Europe and China.”The iron ore sector “is very, very hot,” Vivek Dhar, commodities analyst at Commonwealth Bank of Australia, said in Bloomberg Television interview. “Supply is still not able to meet that strong demand.”Iron ore futures in Singapore jumped to a record above $226 a ton. Contracts in Dalian rose by the daily limit when the market opened.Copper, often viewed as a barometer of the global economy’s health, rose as much as 3.2% to a record $10,747.50 a ton on the London Metal Exchange, before erasing gains and settling 0.3% lower at $10,382. Aluminum slipped 0.4% after climbed as much as 2.5%.“Looks like there’s some profit-taking going on in copper and other metals after the big surge,” said Wenyu Yao, senior commodities strategist at ING Bank.Still, “there’s still quite a lot of room to go,” Evy Hambro, global head of thematic investing at BlackRock Inc., said on Bloomberg Television. “What we’re really doing is we’re testing the upper ranges of commodity markets to work out what the new price range is going to be.”There were fresh jitters on the supply side as China’s major copper smelters vowed to reduce purchases of mined concentrate this year as the country seeks to curb carbon emissions. While that could ease strains on mine supply, the smelters will need to boost scrap purchases to avoid a slump in production of refined metal.“It’s notable that the smelters don’t imply a cut to output,” Morgan Stanley analysts Susan Bates and Marius van Straaten said in an emailed note. “They appear comfortable that they can make up the reduction in concentrate purchases with a lift in the use of copper in other forms.”The iron-ore boom comes as China’s steelmakers keep output rates above 1 billion tons a year, despite a swath of production curbs aimed at reducing carbon emissions and reining in supply. Those measures have boosted steel prices and profitability at mills, allowing them to better accommodate higher iron ore costs and potentially front-load output ahead of more environmental restrictions.Steelmakers in the rest of the world, such as ArcelorMittal SA, are also enjoying a boom as demand bounces back from pandemic lows.“There is a chance that ex-China demand can come back to such an extent that we still see steel demand pick up globally and that will see iron ore demand remain at these elevated levels,” CBA’s Dhar said.Traders will be watching closely for how China responds. Shipmakers and household-goods manufacturers will eventually be unable to withstand elevated steel prices, the country’s state-run Xinhua News Agency reported on Sunday, citing analysis from the China Iron & Steel Association. The report said it would be difficult for steel to continue rallying.The government has scheduled nationwide inspections on steel-capacity cuts, with the National Development and Reform Commission calling on the state asset regulator and provincial level working groups to complete self-checks by May 15. Authorities will conduct on-site inspections in June and July, according to a statement Monday.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. Business Reuters 210510 13h20m UPDATE 1-U.S. pump prices head for highest since 2014 as hacked fuel pipeline shut U.S. gasoline prices at the pump jumped 6 cents in the latest week and could soon be headed for the highest level since 2014 due to the supply disruption caused by a cyber attack on the country's biggest fuel pipeline system. The ransomware attack forced Colonial Pipeline to shut down its system on Friday. The network ships more than 2.5 million barrels per day (bpd) of gasoline, diesel and jet fuel from the Gulf Coast to populous southeastern and northeastern states. Business Bloomberg 210510 13h18m Gasoline Rally Fizzles as Colonial Sees Pipeline Back Up in Days (Bloomberg) -- Gasoline’s rally dissipated after the operator of the largest U.S. oil-products pipeline system said it’s restarting portions of the line following a cyberattack.Colonial Pipeline Co., a key supplier of fuels to the eastern U.S., was forced to halt operations late Friday and now sees service mostly restored by the end of this week. Gasoline futures erased practically all of its earlier gains of as much as 4.2% on Monday, and oil also ended the session little changed.The impact of the shutdown across the U.S. will vary by region and is likely to cause fuel pile-ups, as well as shortages in the short-term, along different parts of the extended supply chain. With the conduit linking U.S. Gulf Coast refineries to the East Coast down for at least another several days, emergency shipments of gasoline and diesel from Texas are already headed for Atlanta and other southeast cities via trucks. At least one refiner is reducing processing rates in response to the pipeline outage.“The price action has been somewhat muted so far, given the expectation that it might not last too, too long,” Citigroup Inc.’s Eric Lee said in a virtual webinar on the pipeline outage. “Bottom line, it’s bullish for East Coast gasoline and diesel and bullish for European gasoline,” while “the opposite is true for U.S. Gulf Coast prices.”The Colonial network is the main source of gasoline, diesel and jet fuel for the East Coast, with capacity of about 2.5 million barrels a day on its system from Houston to as far as North Carolina, and another 900,000 barrels to New York.While the pipeline disruption has so far not made huge waves in futures markets, it proves ill-timed as the summer travel rush approaches in the world’s largest oil-consuming country. Over the weekend, traders were said to be securing barges and tankers to send barrels from the U.S. Gulf to the East Coast, and even seeking ships to temporarily store products in the Gulf if the shut down does last longer than expected. Meanwhile, Total SA’s Port Arthur plant in Texas is already scaling back operations at its fuel-making unit.Despite the muted price action in headline futures, more pronounced movements have cropped up in spot prices and regional differentials. U.S. Gulf Coast spot gasoline prices slipped on Monday to the biggest discount to futures in roughly a year. The premium for New York gasoline against Gulf Coast widened to the largest gap since mid-February.There’s particular concern for southeastern cities where total regional stockpiles of gasoline were already at their lowest in ten years before the ransomware attack, according to U.S. government data. Convenience-store chains in places like Atlanta and Savannah, Georgia, began clamoring for emergency fuel deliveries on Friday afternoon, said Steve Boyd, senior managing director at Houston-based distributor Sun Coast Resources Inc. Rack gasoline prices in Atlanta rose on Monday to the highest in two months.U.S. President Joe Biden’s administration has already extended the time delivery drivers can spend behind the wheel when transporting fuel, and has the option of waiving the Jones Act, which requires ships to be built and flagged in the U.S. and crewed by American workers to transport goods between U.S. ports.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. Business Yahoo Finance 210510 13h17m Roblox set to report first earnings as a public company Video game maker Roblox will release its first earnings report as a public company after the bell Monday. Business Reuters 210510 13h17m Venezuela needs $58 billion to restore crude output to 1998 levels - document Venezuelan state oil company PDVSA would need $58 billion in investment to revive its crude production to the levels of 1998 before ex-President Hugo Chavez came to power, equivalent to 3.4 million barrels per day (bpd), a document seen by Reuters shows. In the February 2021 document entitled "Investment Opportunities," Petroleos de Venezuela's planning and engineering division said it was seeking capital investment from Venezuelan and foreign partners, mostly to recover and upgrade oil production infrastructure "under new business models". Business Yahoo Finance 210510 13h17m Stock market news live updates: Stocks trade mixed with tech stocks under pressure, Dow sets record high Stocks traded mixed on Monday, with technology stocks under more pressure as investors weighed the risks that higher inflation during the pandemic recovery might weigh on high-growth names. Howell date : 210510 13h06m13s Politics Bloomberg 210510 12h55m U.S. Offers States $350 Billion in Aid, With Conditions (Bloomberg) -- The U.S. Treasury Department on Monday began accepting applications from states and municipalities for $350 billion in relief funds, laying out rules to ensure the money quickly flows toward Covid-19 relief and other programs that will support the economy.The step will trigger the release of money to governments potentially within days, with the funds being a key part of the $1.9 trillion American Rescue Plan law signed by President Joe Biden in March. Generally, the funds are intended to help states and local governments combat the pandemic and stoke their economic recoveries.Treasury’s guidelines spell out the range of potential uses by governments -- such as rehiring workers or supporting industries that were hit hard by Covid-19 -- as well as prohibited uses. States and territories can’t use the funds to pay for tax cuts, a provision of the law that has sparked lawsuits from Republican state officials. Recipients are also barred from using aid to fund debt payments, legal settlements, or deposits to rainy-day funds or financial reserves, according to a Treasury fact sheet.Despite the legal challenges, administration officials who spoke with reporters on a conference call repeatedly characterized the restrictions tied to the use of the funds as common among federal spending measures that involve distribution of money to states. The officials also emphasized that the guidance prepared by the Treasury was designed to fit with Congress’s intent to limit the funds to specific eligible uses.“Today is a milestone in our country’s recovery from the pandemic and its adjacent economic crisis,” Treasury Secretary Janet Yellen said in a statement accompanying the release. “With this funding, communities hit hard by COVID-19 will able to return to a semblance of normalcy; they’ll be able to rehire teachers, firefighters and other essential workers -- and to help small businesses reopen safely.”Biden RemarksTreasury’s announcement came less than an hour before Biden spoke at the White House on the economy. He highlighted the release of the state aid funds, among other federal efforts to help Americans return to work, three days after a surprisingly weak April jobs report stoked criticism that excess government benefits are persuading some people to stay at home.The scale of the state and local aid is so vast that it will in many cases more than make up for any lost revenue, providing governors, mayors and other officials with an opportunity to jolt their economies and avoid a repeat of the years-long austerity that gripped the nation’s statehouses after the housing market crash and global financial crisis during the 2000s.State tax revenue has come in much better than initially anticipated, which may free up governors to use the aid to provide relief to their residents and businesses. On Monday, California Governor Gavin Newsom said the state is now expecting an unprecedented $75 billion operating budget surplus thanks to the surging economy and capital-gains taxes. Newsom is planning to give nearly $12 billion in direct payments to Californians. The rescue package will give California about $27 billion, according to the Treasury. Ahead of the guidance’s release, state officials have been releasing their plans for the funds over the past two months.Read more: California Governor Proposes $100 Billion Recovery PackageGovernments can use the American Rescue Plan money to cover revenue declines during the pandemic. That provision allowed Republicans -- who opposed the bill -- to characterize the money as a bailout for poorly-run states. Democrats argued that propping up local government spending and services would help the broader economic recovery.Local governments will receive the funds in two tranches beginning in May, and the second will be provided 12 months later. States that have seen their unemployment rate rise more than 2 percentage points since February 2020 will receive the funds in a full payment.Treasury said in the fact sheet that governments will have “broad latitude to use this funding to support government services, up to this amount of lost revenue.”Tax CutsTreasury’s fact sheet reiterated a provision in the legislation that bars states from using the money to pay for tax cuts, which has triggered legal challenges by Republican officials in states like Ohio.If a state or territory cuts taxes, it must demonstrate how it paid for the tax cut from other sources, such as “by enacting policies to raise other sources of revenue, by cutting spending, or through higher revenue due to economic growth,” the Treasury fact sheet said.States can’t put the funds toward tax cuts until the end of the fiscal year during which the aid money is spent, Treasury said. If the money is used to pay for tax cuts, the state will have to repay that money to the Treasury.Related: Ohio Sues Biden Administration Over Stimulus Tax RestrictionMontana Governor Greg Gianforte, a Republican, announced last week his state would use some of the federal aid to give a $1,200 payment to people who give up unemployment benefits and work for four weeks in order to combat a labor shortage there. Connecticut Governor Ned Lamont, a Democrat, in April proposed using some of the state’s estimated $2.6 billion of federal aid for workforce development programs.County governments, especially those planning for the aid, will likely move quickly to use the funds, Teryn Zmuda, chief economist for the National Association of Counties, said in an interview Friday ahead of the Treasury release.“This is a historic investment in local government,” she said.(Updates with details on Biden remarks, chart on spending uses)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. Business Bloomberg 210510 12h53m Amazon Borrowing $18.5 Billion It Doesn’t Need in New Debt Sale (Bloomberg) -- Amazon.com Inc. is selling bonds to refinance debt and buy back stock, as cheap borrowing costs prove too tempting to resist even for a company with tens of billions of dollars in cash.The online retail giant is issuing $18.5 billion of debt in eight parts, according to people with knowledge of the matter. The longest portion, a 40-year security, will yield 95 basis points over Treasuries, after initially discussing around 115 basis points, said the people, who asked not to be identified because the details are private.Companies have been taking advantage of wide-open bond markets and spreads at three-year lows to score cheap borrowing, even if they don’t need it. With the economy rebounding from the pandemic, U.S. investment-grade firms are increasingly tempted to spend their cash cushions on acquisitions and dividend hikes, or borrow even more.Read more: Corporate Cash Grab Flashes Warning for Bonds: Lisa AbramowiczAt $18.5 billion, it’s Amazon’s biggest bond sale ever, and the second-largest this year behind Verizon Communication Inc.’s $25 billion offering in March. The company was said to originally be targeting $15 billion.Amazon is coming off of a record earnings quarter and it provided a sales forecast for the current period that was stronger than analysts’ estimates. Cash, cash equivalents and marketable securities stood at $73 billion at the end of March, near an all-time high.“They can grow into this leverage,” Matt Brill, head of North America investment grade at Invesco Ltd., said on Bloomberg TV Monday. “If you’re able to borrow for reasonably cheap, and then you’re able to get the operating leverage to go with it, it results in a lot of earnings.”A representative for Amazon did not immediately respond to requests for comment.What Bloomberg Intelligence Says“The size of Amazon.com’s balance sheet may grow meaningfully as its weighted-average-cost of debt capital hovers near zero. With abundant cash and growing free cash flow, borrowing may not be needed. Yet the ability to fund organic growth and potentially initiate a large shareholder-return program at historically low costs suggests additional debt over time.”-- Robert Schiffman, senior credit analyst. Click here to read the researchAmazon has been a fairly infrequent issuer, but it comes in big on those rare occasions. It last tapped the bond market in June 2020, borrowing $10 billion for general corporate purposes. Prior to that, it sold $16 billion of bonds in 2017 to help finance its acquisition of Whole Foods Market Inc.The proceeds of Monday’s offering will be for general corporate purposes, which may also include acquisitions and working capital. The two-year bond will be allocated for eligible green or social projects, which may include clean transportation, renewable energy and sustainable buildings, according to bond documents.Moody’s Investors Service upgraded Amazon one notch to A1, its fifth-highest investment-grade rating, with a stable outlook. While the new debt sale temporarily increases leverage, proceeds are expected to be deployed over time for capital expenditures that fuel growth, which is a long-term positive for the credit, said Moody’s analyst Charles O’Shea.Amazon has been on a spending spree since the pandemic began, building new warehouses and cloud-computing data centers across the world to meet surging demand from online shoppers and businesses turning to remote work. Purchases of property and equipment totaled $45 billion in the 12 months ended in March, up from $20 billion during the prior period.The company’s board of directors authorized $5 billion in share buybacks in 2016, but it has never made purchases under that authority.Citigroup Inc., JPMorgan Chase & Co., Morgan Stanley and Wells Fargo & Co. are managing the sale.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. Politics Bloomberg 210510 12h50m California Governor Proposes $100 Billion Recovery Package (Bloomberg) -- California Governor Gavin Newsom said he plans to use a massive tax-collection windfall to help finance a massive $100 billion economic recovery package, with the centerpiece a proposal to give $11.9 billion of direct cash payments to most Californians.The plan would build on a previous program distributing $600 checks to qualifying low-income residents by expanding eligibility to the middle class. Two out of three Californians would receive a check of at least $600, with families with children receiving an additional $500. It would create the biggest state tax rebate on record, Newsom said Monday at a press conference in Oakland.“We believe people are better suited than we are to make determinations for themselves on how best to use these dollars,” Newsom said.The Democratic governor is seizing on an unprecedented $75 billion operating budget surplus, fueled by a surging economy and capital-gains taxes, to greatly expand the state’s role in the recovery just as he is facing a potential recall election later this year. The windfall leaves Newsom and lawmakers with $38 billion extra to spend as they see fit, since some of the money is already earmarked.The state will get an estimated $27 billion from President Joe Biden’s stimulus plan, according to latest Treasury figures.Newsom’s plan would also spend $5.2 billion on what he said would be the largest renter assistance package in the country and would allow low-income residents to cover their back-rent and their rent for several months into the future. It also spends $2 billion to cover overdue water and utility bills.Excess RevenueNewsom will spend the week highlighting parts of a package he billed the “California Comeback Plan.” He’s required to present a revised budget for the next fiscal year by the May 14 deadline.The announcement underscores the improved financial picture of the most-populous U.S. state, which last May girded for deficits because of the pandemic-spurred recession. But the state, with a progressive tax system that rakes in more revenue when the income of the highest earners rises, has collected more than it expected from its wealthiest residents. That group has reaped the benefits of rising stock prices and stable employment even as lower-income workers lost their jobs in the pandemic.The checks may satisfy a requirement being triggered for the first time since 1986 that excess revenue be returned to taxpayers. The voter-approved state appropriations limit is meant to keep inflation-adjusted per-person government spending under the 1979 level. Lawmakers are required to split excess revenue between taxpayer rebates and education funding.Newsom said the rebate mandate isn’t driving his proposal, but the $11.9 billion in cash payments to taxpayers earning less than $75,000 a year is more than is required to fulfill it.“The state is awash in cash,” John Ceffalio, senior municipal research analyst at CreditSights Inc, said before the announcement. “California came into the pandemic in good fiscal shape and it’s probably leaving it in even better fiscal shape.(Updates with surplus 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. Business Bloomberg 210510 12h48m Largest U.S. Fuel Pipeline Vows to Recover From Hack in Days (Bloomberg) -- North America’s biggest petroleum pipeline may take several more days to recover from a cyberattack that forced it to halt shipments of gasoline and other fuels, raising the specter for shortages if local reserves run out.Colonial Pipeline said segments of its Texas-to-New Jersey line are being brought back online in steps, easing some of the most immediate concerns that pumps in major population centers up and down the U.S. East Coast could run dry. The question now is whether regional inventories held in storage tanks are enough to satisfy demand while Colonial works on resuming operations.The conduit has been shut down since late Friday, prompting frenzied moves by traders and retailers to secure alternative supplies. On Monday, the Federal Bureau of Investigation pointed the finger at a ransomware gang known as DarkSide. The pipeline hasn’t suffered any physical damage and no fuel shortages have been detected, a White House official said.President Joe Biden said there’s no apparent signs that Russia played any role in the hack.Emergency shipments of gasoline and diesel from Texas already are on the way to Atlanta and other southeast cities via trucks, and at least one Gulf Coast refinery began trimming output amid expectations that supplies will begin backing up in the nation’s oil-refining nexus. Airlines flying out of Philadelphia International Airport are burning through jet-fuel reserves and will need to locate new supplies “soon,” a spokeswoman said.Government officials haven’t advised Colonial on whether it ought to pay the ransom, Deputy National Security Adviser for Cyber and Emerging Technologies Anne Neuberger said during a briefing.The national average retail gasoline price rose to $2.967 a gallon on Monday, a 2.4% increase from Friday, according to AAA. The premium for wholesale gasoline in the New York area expanded to its widest in three months.The attack came just as the nation’s energy industry was preparing to meet stronger fuel demand from summer travel. Americans are once again commuting to the office and booking flights after a year in lockdown. Depending on the duration of the disruption, retail prices could spike, further stoking fears of inflation as commodity prices rally worldwide.DarkSide said in a post on the dark web that it wasn’t to blame and hinted that an affiliate group may have been behind the attack. The group promised to do a better job of screening customers that buy its malware.Gasoline futures that initially surged as much as 4.2% in overnight trading surrendered most of those gains on Monday.Convenience-store chains in places like Atlanta and Savannah, Georgia, began clamoring for emergency fuel deliveries on Friday afternoon, said Steve Boyd, senior managing director at Houston-based distributor Sun Coast Resources Inc.Landlocked cities face the greates danger of fuel shortages compared with those with access to water-borne deliveries, Boyd said. If the pipeline remains down for many more days, he’s anticipating a “massive surge” in orders. Sun Coast, which operates about 900 trucks, has delivered emergency supplies during 75 major storms over the past 15 years, including during hurricanes Harvey and Irma in 2017.Although the attack on the Colonial system is “unprecedented,” the conduit ought to be back in service in three to five days, Amrita Sen, co-founder of consultant Energy Aspects Ltd., told Bloomberg TV just hours before the pipeline company announced it’s end-of-week target.Gasoline for June delivery settled up 0.3% at $2.1334 a gallon in New York. Futures prices have gained more than 50% this year, helped by the recovery from the worst effects of the pandemic.Tankers BookedPrior to Colonial’s Monday statement, traders were seeking vessels to deliver fuel to coastal terminals. Four vessels were provisionally chartered to send diesel or gasoline from Europe to the U.S. Atlantic Coast, according to Danish oil-product tanker company Torm A/S.Some tankers are also being secured to temporarily store gasoline along the Gulf Coast, according to market participants who asked not to be identified because the information isn’t public. Meanwhile, Total SE scaled back activity in a key unit at its Port Arthur, Texas, refinery because of the Colonial shutown, according to a person familiar with operations.Increased SecurityColonial halted all operations on its system late Friday after suffering a ransomware attack that affected some of its IT systems.The event is just the latest example of critical infrastructure being targeted by ransomware. Hackers are increasingly attempting to infiltrate essential services such as electric grids and hospitals. The escalating threats prompted the White House to respond last month with a plan to increase security at utilities and their suppliers. Pipelines are a specific concern because of the central role they play in the U.S. economy.“It’s an all-hands-on-deck effort right now,” said U.S. Commerce Secretary Gina Raimondo. “We are working closely with the company, state and local officials to make sure that they get back up to normal operations as quickly as possible and there aren’t disruptions in supply.”The White House pulled together an inter-agency task force to address the breach, including exploring options for lessening its impact, according to an official. Biden can invoke an array of emergency powers to ensure supplies keep flowing to big cities and airports along the East Coast.Rules EasedSome rules curbing domestic transportation of fuel have been eased to help deal with any shortages. That doesn’t extend to waiving Jones Act, a measure that would allow foreign tankers to help shuffle more petroleum products between U.S. ports.“There are ways to get around this,” said Jeff Currie, global head of commodities at Goldman Sachs Group Inc. “Importantly, the Department of Transportation has lifted any restrictions around trucking and boat transportation, which means you can use other avenues of transportation to deal with this.”Colonial has the capacity to send about 2.5 million barrels (105 million gallons) a day from Houston as far as North Carolina, and another 900,000 barrels a day to New York.Extortion FeeRansomware cases involve hackers seeding networks with malicious software that encrypts the data and leaves the machines locked until the victims pay the extortion fee. This would be the biggest attack of its kind on a U.S. fuel pipeline.With gasoline inventories ample, pump prices weren’t expected to tick much higher until Memorial Day at the end of May, which is traditionally viewed as the start of the U.S. summer driving season. If the pipeline doesn’t restart soon it will accelerate the move higher.“Atlanta will be one of the earlier sore spots, along with eastern Tennessee, and perhaps the Carolinas,” said Patrick DeHaan, head of petroleum analysis at GasBuddy.The Northeast can secure gasoline shipments from Europe but it will come at an increasing cost the longer the pipeline stays shut. The fuel’s premium to crude in northwest Europe had jumped by more than 5% in intra-day trading earlier on Monday but was still down week-on-week.In the meantime, fuel producers including Marathon Petroleum Corp. are weighing alternatives for how to ship their products to the Northeast.One potential route is the Kinder Morgan-operated Plantation Pipeline, even though it only extends as far north Washington D.C. and has a capacity of 720,000 barrels a day, far short of Colonial’s. Kinder said Sunday it’s working with customers to accommodate additional barrels during Colonial’s outage, and that Plantation is deferring where possible any non-essential maintenance that might otherwise reduce flow rates.While all of the major segments of Colonial’s system remain offline, some smaller so-called laterals connecting specific fuel terminals to delivery points are in service, the company said earlier.Inventories offer minimal cover, ClearView Energy Partners said in a research note. Tankers leaving Rotterdam could take up to 14 days to make the trip to the New York Harbor. The Midwest could theoretically send some of its supplies to the East Coast via rail and barge, but the region’s inventories are tighter than in previous years, ClearView said.“The Colonial outage comes at a critical juncture for the recovering U.S. economy: the start of the summer driving season,” ClearView said. “We therefore think lawmakers could begin a ‘blame game’ immediately, and a sustained disruption that leads to a significant pump price spike could increase prospects of domestic policy interventions.”(Adds Biden’s comment on no apparent Russian link 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. Business Reuters 210510 12h39m US STOCKS-Dow reaches all-time high on commodity surge; S&P, Nasdaq drop Tech shares reversed Friday's gains, pulling the S&P 500 and the Nasdaq into negative territory, while industrial and healthcare shares set the blue-chip Dow on course for its fourth consecutive all-time closing high. "You continue to see this rotation between tech-plus and cyclicals, and certainly the spike in inflation of input costs benefits cyclicals in terms of pricing," said Tim Ghriskey, chief investment strategist at Inverness Counsel in New York. The break-even rate on five-year and 10-year U.S. Treasury Inflation-Protected Securities (TIPS) touched their highest levels since 2011 and 2013, respectively. Business Bloomberg 210510 13h00m Wall Street Uses Old Tricks in $2.4 Trillion Crypto Jungle (Bloomberg) -- Wall Street traders like Trey Griggs are finding a new lease on life in the $2.4 trillion crypto Wild West.After two decades in energy trading, the 51-year-old was lured by a former Goldman Sachs Group Inc. colleague this February into a new world of market-making in digital currencies.Now he’s in fighting spirits -- unleashing old-school finance tricks to exploit the industry’s rampant inefficiencies, volatility and downright weirdness.“All the fun that used to be had 30 years ago in the commodity markets and is no longer fun -- that fun is now in crypto,” says the U.S. chief executive officer at GSR Markets in Houston.Griggs is among crypto newcomers deploying systematic strategies that are tried-and-tested in conventional asset classes -- price arbitrage, futures trading, options writing -- in a booming new corner of finance. As more mainstream investors get behind Bitcoin, boutique firms are joining the likes of Mike Novogratz in an ever-broadening crypto rally that keeps breaking records.For those who can stomach the price swings, the threat of exchange hacks and the byzantine market structure, complex fast-money trades are offering an alternative way to ride the digital mania.At GSR, the firm’s bread and butter is market-making, where traders pocket the spread between buy and sell orders.In stocks, that’s a nearly oligarchic business where the likes of Citadel Securities and Virtu Financial operate at lightning speed. In virtual currencies, where hundreds of exchanges offer free access at a slower pace, GSR can capitalize on the big volumes without splurging millions on high-frequency infrastructure.“Part of the tech we have is just to tell us did we actually trade or not, is this trade good or bad,” says GSR co-founder and former Goldman trader Richard Rosenblum. “We don’t want to be slower than our competitors, but it’s just not quite as much of the driver.”For every strategy in stocks, bonds or currencies rendered boring by low rates, regulation or market crowding, there’s a lucrative trade in a token lying across the hundreds of exchanges out there. Or so the thinking goes.Read More: Veterans of FX’s Wilder Days Are Loving Bitcoin’s VolatilityWhile crypto die-hards have made merry like this for years, the relentless rallies across the tokensphere this year are drawing more Wall Street converts seeking riches and new thrills.Take Mark Treinkman. After a career mostly at proprietary stock-trading shops like Chimera Securities, digital money is renewing his passion for quant trading.“I’ve been going through some of my old strategies and things that wouldn’t have worked in equities in decades have an edge in crypto still,” he says.A market-neutral strategy run by his $60 million firm BKCoin Capital gained 71% last year using investing styles that often include arbitraging different prices across exchanges and the gap between the spot and futures market.For a few minutes during trading on Wednesday, for example, the price of Ethereum Classic jumped well above $100 on the Coinbase exchange. The digital token was trading at less than $80 at other venues, offering an obvious opportunity for investors to make money simply by buying in one place and selling in another.It’s one of the best-known -- albeit diminishing -- discrepancies exploited by the likes of Alameda Research, a crypto trading firm filled with former traders from high-frequency shops. A famous example is the kimchi premium, the tendency for Bitcoin to trade higher in South Korea thanks to strong demand and the difficulty of moving money around to profit from the gap.With no one-stop prime broker to centralize trading books and offer clients leverage across venues, traders like Treinkman face plenty of challenges in their bid to arbitrage price gaps, but say the rewards are commensurate.And the opportunities pop up everywhere. For instance, when longer-dated futures in pretty much any asset class trade higher than the spot price -- known as contango -- the former almost always converges to the latter as the contracts mature.That’s popularized the crypto basis trade, where an investor goes long the spot rate and shorts the futures.When Bitcoin last peaked in mid-April, the December contracts were nearly 4% higher than August which were in turn about 2% higher than the spot reference rate, as speculators unleashed bets on rising prices. By contrast, the December oil contracts were trading beneath August’s on the same day, according to the data compiled by Bloomberg.“The crypto market is still dominated by retail investors who use excessive leverage and bid the premiums for futures,” said Nikita Fadeev, a fund manager at $60 million crypto unit at quant firm Fasanara Capital.Trades common in the industry also include short-term momentum and a form of statistical arbitrage, which bets on gaps between various tokens eventually closing like when Ethereum is surging but Bitcoin isn’t, Fadeev says.As assets grew, the fund recently appointed Laurent Marquis, the former co-head of derivatives at Citadel Securities, as chief risk officer, and Steve Mobbs, co-founder of quant fund Oxford Asset Management, as senior adviser.Over in Zug, Switzerland, St. Gotthard Fund Management has transformed from an old-school family office writing options on Swiss shares to a digital evangelist in its income strategy aiming to yield 8% a year. Just like in stocks, the investing style sells derivatives to take advantage of big demand to hedge price swings -- which causes the volatility priced into options to be higher than what’s likely to come to pass.For option writers like St. Gotthard, that means the premiums are much juicier, though they also come with a higher risk of having to actually pay out, like an insurer during an earthquake.“The major difference at the end of the day is how much premium retail investors are willing to pay,” says chief investment officer Daniel Egger. “On the other hand of course we’ve written calls we wished we hadn’t in those moves up.”In fact, going long crypto over the past year has proved the easiest and most profitable way to tap into the boom. And for those choosing the systematic route, competition is rising.For example, in order to get an edge in its market-making strategy, BKCoin has recently installed servers at Asian crypto exchanges, a move known as co-location in the high-frequency world of stocks. It’s a sign the industry is growing up fast.“In any emerging market we’ve seen these inefficiencies decrease over time,” said George Zarya, founder of Bequant, a crypto prime brokerage that caters to systematic traders. “There are more professional players that come in.”(Updates first chart and market value in first paragraph. An earlier version corrected the seventh paragraph under the second chart to show Fasanara does not engage in momentum and stat-arb trades but says they are common in industry.)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. U.S. Reuters 210510 12h31m Autopilot could not have been functioning in Tesla Texas crash, NTSB says WASHINGTON (Reuters) -The National Transportation Safety Board (NTSB) said testing showed Autopilot could not have been functioning in an April 17 Tesla Model S fatal crash near Houston, Texas because a key feature could not have been in use, according to a preliminary report released Monday. Local police have said they believed the crash occurred with no one in the driver's seat, raising questions about Tesla's driver assistance systems. The NTSB said the vehicle was equipped with "Autopilot" – Tesla’s advanced driver assistance system - and the system requires both Traffic Aware Cruise Control and Autosteer systems to be engaged. Howell date : 210510 12h35m36s U.S. Reuters 210510 12h24m U.S. state attorneys general ask Congress for funding for antitrust work Dozens of state attorneys general wrote to U.S. lawmakers on Monday to urge Congress to fund their antitrust probes, which have resulted in big lawsuits filed against Alphabet Inc's Google and Facebook Inc. Attorneys general from 45 states and territories cited calls from Republicans and Democrats for a "more robust antitrust enforcement across a multitude of markets." "An appropriation of federal funding for state antitrust enforcement, particularly with respect to Big Tech litigation, will inure to the benefit of the economy and consumers throughout the United States," they wrote in a letter to Senators Amy Klobuchar and Mike Lee, the chair and top Republican on the Senate Judiciary Committee's antitrust panel. Business Bloomberg 210510 12h22m Nasdaq 100 Extends Drop to 2% Amid Inflation Angst: Markets Wrap (Bloomberg) -- Technology shares fell as surging commodity prices stoked concern about whether inflation will derail a growth rebound in the world’s largest economy and spoil a record stock rally.The tech-heavy Nasdaq 100 Index more than 2% amid the growing anxiety over inflation, which can threaten longer-horizon revenues typical of the sector. Alphabet and Facebook were downgraded to neutral at Citigroup. The ARK Innovation ETF resumed its slide. The Dow Jones Industrial Average rose to a record, topping 35,000 for the first time. The benchmark S&P 500 was little changed. Treasury yields edged higher as traders brace for a busy week of auctions.“People have been gravitating to value -- now you can find growth outside of tech,” said Keith Lerner, chief market strategist at Truist Advisory Services. “As inflation expectations continue to move higher, that’s more beneficial for the value side of the trade.”Copper jumped to a record while iron ore futures surged more than 10%, adding to concern about inflation. West Texas Intermediate fluctuated after a cyberattack forced the closure of a key U.S. pipeline, which operators hope to reopen by the end of the week.Meanwhile, the pound climbed to its highest level since February after U.K. elections denied Scotland’s main independence party an outright majority and strengthened the grip of the Conservatives.The run-up in raw materials is intensifying debate ahead of a U.S. CPI report Wednesday that is forecast to show price pressures increased in April. The data will be closely watched by policy makers at the Federal Reserve trying to gauge the speed of the recovery after job growth significantly undershot forecasts.“The strong inflation figures that are expected this week could change the market narrative and raise concerns about the risk that inflation pressures are picking up significantly, even if the real economic recovery will remain far from complete for some time,” according to Credit Agricole SA strategists led by Jean-Francois Paren. “If this is the case, it could weigh on risk appetite in the coming days and weeks.”Read more: Inflation Debate Hits Emerging Markets as Pimco Stands Firm The MLIV Question of the Day: How Could Highest CPI in Decade Hit Assets?Here are some key events to watch this week:A range of Fed speakers are due this week, including Chicago Fed President Charles Evans on the economic outlook Monday and U.S. Fed Governor Lael Brainard on Tuesday, among othersChinese inflation data are due TuesdayOPEC monthly Oil Market Report is published with global demand forecasts and production estimates TuesdayU.S. CPI report Wednesday is forecast to show prices continued to increase in AprilBank of England Governor Andrew Bailey speaks WednesdayThese are some of the main moves in markets: StocksThe S&P 500 fell 0.4%, more than any closing loss since May 4 as of 2:17 p.m. New York timeThe Nasdaq 100 fell 2.1%, more than any closing loss since March 18The Dow Jones Industrial Average rose 0.5% to a record highThe MSCI World index fell 0.2%, more than any closing loss since May 4CurrenciesThe Bloomberg Dollar Spot Index fell 0.1%, falling for the fourth straight day, the longest losing streak since April 19The euro was little changed at $1.2155The British pound rose 1.2% to the highest in about three yearsThe Japanese yen fell 0.2% to 108.81 per dollarBondsThe yield on 10-year Treasuries advanced two basis points, more than any closing gain since April 29Germany’s 10-year yield advanced zero basis points, climbing for the fourth straight day, the longest winning streak since April 29Britain’s 10-year yield advanced one basis point to 0.79%CommoditiesWest Texas Intermediate crude fell 0.2% to $65 a barrelGold futures rose 0.4%, climbing for the fourth straight day, the longest winning streak since Feb. 10For 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. Business Yahoo Finance Video 210510 12h12m Identifying three big drivers of the tax gap: Expert Caroline Bruckner, American University Kogod School of Business Tax Professor & Kogod Tax Policy Center Managing Director, joins Yahoo Finance’s Kristin Myers and Alexis Christoforous to discuss tackling the tax gap. Business Bloomberg 210510 12h08m Alphabet, Facebook Drop as Citi Warns of Ad Growth Slowdown (Bloomberg) -- Alphabet Inc. and Facebook Inc. tumbled on Monday, leading a broad move lower in internet stocks after Citigroup Inc. warned about the outlook for digital advertising, a key source of revenue for the sector.The firm downgraded both names to neutral from buy, writing that “caution is in order” for companies that derive revenue from digital advertising. While ad budgets are expected to continue shifting online, growth is likely to decelerate, and “historically, that usually isn’t bullish for multiples,” analyst Jason Bazinet wrote.Shares of Facebook fell as much as 4.3% on Monday in its biggest one-day percentage loss since January. Google-parent Alphabet was down as much as 2.9%. The S&P 500 Communications Services index fell 1.6%.Alphabet shares are trading at eight times revenue, the highest in more than a decade, according to data compiled by Bloomberg. Facebook’s price-to-sales multiple is nine, nearly twice the average for companies in the Nasdaq 100 Stock Index.Even with the recent decline, the pair are the best performers among the five biggest U.S. technology companies this year. Alphabet is up more than 30%, while Facebook has risen 12%, matching Microsoft’s performance. Both Apple and Amazon.com are negative for 2021.Both reported first-quarter revenue that dwarfed analyst estimates when they reported two weeks ago. Alphabet’s results were supported by a recovery in business categories that had struggled during the pandemic, such as travel and retail. Chief Financial Officer Ruth Porat said the results “reflect elevated consumer activity online and broad-based growth in advertiser revenue,” though the durability of these trends will depend on the pace of the global recovery from Covid-19.Facebook’s report showed strong demand from retailers and other advertisers, but it reiterated its view that growth could stall in the second half of the year.Digital ads have seen robust growth over the past two quarters as the pandemic accelerated a shift toward online spending. However, “the sell side has extrapolated the recent strength for the next five years,” a view that seems too optimistic, Citi wrote. The firm expects growth will decelerate in coming quarters, posing a risk to stock multiples.Read more: Tech Giants Reap Huge Ad Revenue Growth in First QuarterAmong other names in the group, Citi reiterated neutral ratings on both Pinterest Inc. and Twitter Inc, along with a sell rating on Snap Inc. The only digital-ad stock Citi recommends buying is Roku Inc., as “the connected TV market is still nascent.” Shares of Twitter, Snap, and Pinterest all fell on Monday.With the downgrade, Citi is now the only firm tracked by Bloomberg that doesn’t recommend buying Alphabet. Forty-two firms still have a bullish view on the shares. For Facebook, there are now 49 buy ratings, six holds, and three firms with a negative view on the stock. The average analyst price target points to potential gains of more than 20% for Alphabet, and about 25% for Facebook.Last week, Bloomberg Intelligence wrote that ad pricing would remain a tailwind for Facebook this year “due to demand for its ad inventory, while ad-impressions growth could taper slightly amid reopenings.” It added that the social-media company was well-positioned to achieve 30%-plus growth in its core mobile-ad business despite tougher comparisons in the second half of the year.(Updates with afternoon trading in third paragraph, quarterly results details in sixth and seventh.)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. Business Bloomberg 210510 12h07m Bitcoin ETF Approval Odds Grow Longer After Gensler Critique (Bloomberg) -- At least nine new U.S. crypto ETF filings stoked optimism regulatory approval was close. Wall Street’s top cop all but doused it with a string of comments last week.Freshly sworn-in Securities and Exchange Commission Chairman Gary Gensler told Congress that the cryptocurrency market “could benefit from greater investor protection,” signaling that a long-stated prerequisite for SEC oversight of the industry has not been met. He also urged lawmakers give the agency regulatory authority over trading venues, a stance he reiterated in a CNBC interview Friday.Gensler’s comments were likely an unwelcome reality check for crypto and ETF enthusiasts alike. Bitcoin ETF approval was being touted by many industry boosters as a nearly sure-thing in 2021, amid new SEC leadership, Wall Street’s growing crypto embrace and the launch of similar funds in Canada. However, Gensler’s skeptical remarks and a hefty regulatory to-do list has some experts pushing out the potential time line.“The SEC has made their priorities clear, and vetting crypto ETFs is not one of them,” said Ben Johnson, Morningstar Inc.’s global director of ETF research. “Given that the SEC has bigger fish to fry, and taking Gensler’s recent remarks regarding crypto ETFs into account, I think the odds we’ll see a Bitcoin ETF approved in 2021 are very low.”Efforts have been underway for nearly a decade to get a Bitcoin ETF launched stateside. U.S. regulators have rejected every application since the first was filed in 2013, citing concerns about manipulation and criminal activity.Nevertheless, a raft of crypto ETF applications have been filed this year. Advocates predicted Gensler would prove more open-minded toward the structure than his predecessor Jay Clayton, given that he once taught a class at MIT’s Sloan School of Management called “Blockchain and Money.”However, the SEC under Gensler’s leadership has punted its deadline to make a decision once already, and the chair’s scrutiny of crypto exchanges suggests the agency is proceeding cautiously. Trading disruptions are relatively run-of-the-mill in the crypto sphere, where trading hubs are lightly regulated relative to traditional exchanges.“SEC concerns over fraud and manipulation in the Bitcoin spot market have been the primary roadblock for a Bitcoin ETF approval,” said Nate Geraci, president of the ETF Store, an advisory firm. “If Gensler isn’t yet fully comfortable with crypto exchanges, it’s highly unlikely he would bless a Bitcoin ETF.”The SEC didn’t immediately respond to a request for comment.Bitcoin, the world’s largest cryptocurrency, has doubled so far in 2021 after climbing over 300% last year. A recent rally in so-called alt-coins have put those gains to shame -- Ether is roughly 460% higher year-to-date, while Dogecoin, the joke cryptocurrency that’s found new life as an internet meme, has surged more than 16,000% in the past year, according to CoinGecko.Three Bitcoin ETF filings have been acknowledged by the SEC, meaning it has a limited amount of time to either approve or reject the proposals. However, with Gensler’s recent remarks in mind, it’s unlikely that any of those filings will be given the green light in their current form, according to Dave Nadig, the chief investment officer at data provider ETF Trends.“There’s zero chance any existing filing goes through with no modifications whatsoever. I’m still thinking this year, but honestly, who knows,” said Nadig. “It could be tomorrow or never.”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. Business Yahoo Finance 210510 12h05m Adidas faces supply chain and China headwinds: S&P Global Despite strong first-quarter earnings, sportswear giant Adidas may have supply chain and China headwinds to deal with for the remainder of 2021. Business Bloomberg 210510 12h00m Ark’s Cathie Wood Backs European Crypto Platform, Joins Board (Bloomberg) -- Cathie Wood, founder and chief executive officer of Ark Investment Management LLC, joined the board of cryptocurrency platform Amun Holdings Ltd. after personally investing in the operator of 21Shares AG, which specializes in exchange-traded products.“21Shares is forging a new path for crypto ETPs by leading with research and a keen understanding of this developing asset class,” Wood said in an emailed statement. “I am thrilled to support its efforts.”Zurich-based Amun’s assets under management have climbed to about $2 billion from $27 million in March 2020, CEO Hany Rashwan said in an interview. It’s profitable, with $40 million to $50 million in annual revenue generated from both retail and institutional investors such as family offices, he said.“We built the company to make crypto as accessible as stocks and have seen tremendous demand for our products,” Rashwan said.One of the firm’s offerings, 21Shares Short Bitcoin ETP, allows investors to bet against Bitcoin. The 21Shares Crypto Basket Index tracks the top five cryptocurrencies by market value.Amun and 21shares instruments are listed on Swiss, Austrian and German national exchanges, among other locations. The company plans to list its first non-European product in coming months and to expand ETP offerings by as many as 30 products this year in eight countries, Rashwan said.Wood met Amun co-founder and president Ophelia Snyder at a conference in 2019, before the pandemic. “We sat next to each other at a lunch and got to talking about the industry structure and the potential for new technology applications in the space,” Snyder said.“Cathie’s counsel on critical business strategy, product development and distribution will be critical as 21Shares expands our global footprint,” she added.The company’s backers include Morgan Creek Digital, Collaborative Ventures, Quiet Capital, Boost VC and Graham Tuckwell, founder of ETF Securities.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. Howell date : 210510 12h04m58s Business Bloomberg 210510 11h54m Largest U.S. Fuel Pipeline Vows to Recover From Hack in Days (Bloomberg) -- North America’s biggest petroleum pipeline may take several more days to recover from a cyberattack that forced it to halt shipments of gasoline and other fuels, raising the specter for shortages if local reserves run out.Colonial Pipeline said segments of its Texas-to-New Jersey line are being brought back online in steps, easing some of the most immediate concerns that pumps in major population centers up and down the U.S. East Coast could run dry. The question now is whether regional inventories held in storage tanks are enough to satisfy demand while Colonial works on resuming operations.The conduit has been shut down since late Friday, prompting frenzied moves by traders and retailers to secure alternative supplies. On Monday, the Federal Bureau of Investigation pointed the finger at a ransomware gang known as DarkSide. The pipeline hasn’t suffered any physical damage and no fuel shortages have been detected, a White House official said.Emergency shipments of gasoline and diesel from Texas already are on the way to Atlanta and other southeast cities via trucks, and at least one Gulf Coast refinery began trimming output amid expectations that supplies will begin backing up in the nation’s oil-refining nexus. Airlines flying out of Philadelphia International Airport are burning through jet-fuel reserves and will need to locate new supplies “soon,” a spokeswoman said.Government officials haven’t advised Colonial on whether it ought to pay the ransom, Deputy National Security Adviser for Cyber and Emerging Technologies Anne Neuberger said during a briefing.The national average retail gasoline price rose to $2.967 a gallon on Monday, a 2.4% increase from Friday, according to AAA. The premium for wholesale gasoline in the New York area expanded to its widest in three months.The attack came just as the nation’s energy industry was preparing to meet stronger fuel demand from summer travel. Americans are once again commuting to the office and booking flights after a year in lockdown. Depending on the duration of the disruption, retail prices could spike, further stoking fears of inflation as commodity prices rally worldwide.DarkSide said in a post on the dark web that it wasn’t to blame and hinted that an affiliate group may have been behind the attack. The group promised to do a better job of screening customers that buy its malware.Gasoline futures that initially surged as much as 4.2% in overnight trading surrendered most of those gains on Monday.Convenience-store chains in places like Atlanta and Savannah, Georgia, began clamoring for emergency fuel deliveries on Friday afternoon, said Steve Boyd, senior managing director at Houston-based distributor Sun Coast Resources Inc.Landlocked cities face the greates danger of fuel shortages compared with those with access to water-borne deliveries, Boyd said. If the pipeline remains down for many more days, he’s anticipating a “massive surge” in orders. Sun Coast, which operates about 900 trucks, has delivered emergency supplies during 75 major storms over the past 15 years, including during hurricanes Harvey and Irma in 2017.Although the attack on the Colonial system is “unprecedented,” the conduit ought to be back in service in three to five days, Amrita Sen, co-founder of consultant Energy Aspects Ltd., told Bloomberg TV just hours before the pipeline company announced it’s end-of-week target.Gasoline for June delivery rose 0.3% to $2.133 a gallon at 1:52 p.m. in New York. Futures prices have gained more than 50% this year, helped by the recovery from the worst effects of the pandemic.Tankers BookedPrior to Colonial’s Monday statement, traders were seeking vessels to deliver fuel to coastal terminals. Four vessels were provisionally chartered to send diesel or gasoline from Europe to the U.S. Atlantic Coast, according to Danish oil-product tanker company Torm A/S.Some tankers are also being secured to temporarily store gasoline along the Gulf Coast, according to market participants who asked not to be identified because the information isn’t public. Meanwhile, Total SE scaled back activity in a key unit at its Port Arthur, Texas, refinery because of the Colonial shutown, according to a person familiar with operations.Increased SecurityColonial halted all operations on its system late Friday after suffering a ransomware attack that affected some of its IT systems.The event is just the latest example of critical infrastructure being targeted by ransomware. Hackers are increasingly attempting to infiltrate essential services such as electric grids and hospitals. The escalating threats prompted the White House to respond last month with a plan to increase security at utilities and their suppliers. Pipelines are a specific concern because of the central role they play in the U.S. economy.“It’s an all-hands-on-deck effort right now,” said U.S. Commerce Secretary Gina Raimondo. “We are working closely with the company, state and local officials to make sure that they get back up to normal operations as quickly as possible and there aren’t disruptions in supply.”The White House pulled together an inter-agency task force to address the breach, including exploring options for lessening its impact, according to an official. President Joe Biden can invoke an array of emergency powers to ensure supplies keep flowing to big cities and airports along the East Coast.Rules EasedSome rules curbing domestic transportation of fuel have been eased to help deal with any shortages. That doesn’t extend to waiving Jones Act, a measure that would allow foreign tankers to help shuffle more petroleum products between U.S. ports.“There are ways to get around this,” said Jeff Currie, global head of commodities at Goldman Sachs Group Inc. “Importantly, the Department of Transportation has lifted any restrictions around trucking and boat transportation, which means you can use other avenues of transportation to deal with this.”Colonial has the capacity to send about 2.5 million barrels (105 million gallons) a day from Houston as far as North Carolina, and another 900,000 barrels a day to New York.Extortion FeeRansomware cases involve hackers seeding networks with malicious software that encrypts the data and leaves the machines locked until the victims pay the extortion fee. This would be the biggest attack of its kind on a U.S. fuel pipeline.With gasoline inventories ample, pump prices weren’t expected to tick much higher until Memorial Day at the end of May, which is traditionally viewed as the start of the U.S. summer driving season. If the pipeline doesn’t restart soon it will accelerate the move higher.“Atlanta will be one of the earlier sore spots, along with eastern Tennessee, and perhaps the Carolinas,” said Patrick DeHaan, head of petroleum analysis at GasBuddy.The Northeast can secure gasoline shipments from Europe but it will come at an increasing cost the longer the pipeline stays shut. The fuel’s premium to crude in northwest Europe had jumped by more than 5% in intra-day trading earlier on Monday but was still down week-on-week.In the meantime, fuel producers including Marathon Petroleum Corp. are weighing alternatives for how to ship their products to the Northeast.One potential route is the Kinder Morgan-operated Plantation Pipeline, even though it only extends as far north Washington D.C. and has a capacity of 720,000 barrels a day, far short of Colonial’s. Kinder said Sunday it’s working with customers to accommodate additional barrels during Colonial’s outage, and that Plantation is deferring where possible any non-essential maintenance that might otherwise reduce flow rates.While all of the major segments of Colonial’s system remain offline, some smaller so-called laterals connecting specific fuel terminals to delivery points are in service, the company said earlier.Inventories offer minimal cover, ClearView Energy Partners said in a research note. Tankers leaving Rotterdam could take up to 14 days to make the trip to the New York Harbor. The Midwest could theoretically send some of its supplies to the East Coast via rail and barge, but the region’s inventories are tighter than in previous years, ClearView said.“The Colonial outage comes at a critical juncture for the recovering U.S. economy: the start of the summer driving season,” ClearView said. “We therefore think lawmakers could begin a ‘blame game’ immediately, and a sustained disruption that leads to a significant pump price spike could increase prospects of domestic policy interventions.”(Adds White House comments in third, fifth 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. U.S. Reuters 210510 11h51m GRAPHIC-New U.S. COVID weekly cases fall to lowest since September New cases of COVID-19 in the United States fell for a fourth week in a row, dropping 17% last week to just under 290,000, the lowest weekly total since September, according to a Reuters analysis of state and county data. More than a third of the country's population has been fully vaccinated as of Sunday, and 46% has received at least one dose of a COVID-19 vaccine, according to the U.S. Centers for Disease Control and Prevention. Only seven out of 50 states reported week-over-week increases in new cases, mostly rising by less than 10%. Business Bloomberg 210510 11h38m Biden Energy Chief Says U.S. ‘Utterly Vulnerable’ to Hackers (Bloomberg) -- The closing of the nation’s biggest fuel pipeline system at the hands of hackers illustrates how at risk the infrastructure is to cyberattacks, Energy Secretary Jennifer Granholm said Monday.“It tells you how utterly vulnerable we are,” Granholm said during an interview on Bloomberg Television’s “Balance of Power” program. “We’re seeing all of these examples of ransomware attacks coming -- whether it’s telecommunications or this critical infrastructure. And obviously in my lane I’m very worried about the energy infrastructure.”Granholm referenced the recent SolarWinds Corp. hack which affected hundreds of businesses and several federal agencies, referring to it as an attack on the transmission grid.Alpharetta, Georgia-based Colonial Pipeline Co. Friday halted all operations on the 5,500-mile pipeline system, a critical supply of gasoline and other refined products to New York and other cities along the east coast, after it fell victim to a ransomware attack by hackers.Colonial says it transports about 45% of all fuel consumed on the East Coast, providing refined products to more than 50 million Americans.The company said it expects to have service substantially restored by week’s end.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. Business Bloomberg 210510 11h32m Two Shadow Lenders, Two Accounting Bombshells, One Bond Collapse (Bloomberg) -- On the surface, the situations are shockingly similar. Two Mexican non-bank lenders, within days of each other, report inconsistencies in their loan books that required them to amend their financials.Yet the reaction of bond investors could hardly be more different.Securities issued by Alpha Holding -- known as AlphaCredit -- plunged instantaneously to deeply distressed levels, and creditors have since hired lawyers to prepare for a potential default. Credito Real’s bonds, on the other hand, posted a more modest initial decline and have subsequently pared losses to trade around 90 cents on the dollar.The reason for the stark divergence is that the losses at AlphaCredit -- which has generally been seen as the riskier of the two firms -- appear to represent a much greater slice of its overall assets than those at Credito Real. Still, in an industry famous for its opaque accounting and limited regulation, the late-April disclosures sent shock waves through the bond market, where foreign investors had eagerly loaded up on dollar- and euro-denominated notes in an effort to capitalize on booming demand for credit among Mexico’s lower-income consumers.The losses sparked fears of a wider crisis spreading through the industry, which by certain measures has eclipsed the formal banking sector in terms of lending. But the subsequent bond price action shows that, at least for some, these are two very different stories.“Credito Real has had some challenges but they will be able to manage them,” said Manuel Zegbe, an analyst at Signum Research. The firm “now is going to be more conservative with the loan portfolio. I’m not expecting growth in the loan portfolio, to keep solvency and liquidity at a healthy level.”Of course, not everyone agrees. In fact, a number of analysts say Credito Real’s bonds may be headed for a significant selloff themselves.“We would recommend taking advantage and selling into the rebound of the Credito Real curve,” Stifel analyst Alexis Panton wrote in a May 4 note. “The recent spell of heightened market volatility might just be round one of a longer bout. Headline risk looks set to increase, especially now the company is under more intense scrutiny.”At the heart of the issue is whether AlphaCredit and Credito Real’s loan books and financial reports are really as they appear.AlphaCredit said on April 20 that it will need to restate multiple recent year-end results, leading to the impairment of as much as 4.1 billion pesos ($206 million) of previously reported assets and accounts receivable.The company’s board of managers hired Skadden Arps Slate Meagher & Flom LLP as part of an investigation into its accounting practices, and appointed an expert in white collar crime to chair the special committee running the investigation. Creditors owning more than half the firm’s $700 million of notes due 2022 and 2025 organized with Cleary Gottlieb Steen & Hamilton LLP.“When Alpha came out with its accounting changes, that really spooked investors in the sector,” said Ray Zucaro, chief investment officer of RVX Asset Management. “The problem with non-bank financial institutions is that investors have very little insight into what the assets are.”Representatives for AlphaCredit and the creditors declined to comment.Credito Real rattled the market just days later with a filing that nearly doubled the size of its bad loan portfolio versus the end of last year, to 3.3% from an initially reported 1.8%, without an explanation. After the NPL ratio rose to 3.9% in its first quarter results less than a week later, management sought to convince the market that it wasn’t a systemic issue.But investor concerns were clear on an April 29 earnings call that stretched for more than two hours. Attendees pressed management after the company disclosed that a single bad loan was primarily responsible for pushing the company’s NPL ratio to just under 4%, the maximum allowed under the terms of certain debt.Several analysts grilled executives on the diversification of the company’s small- and medium-sized business loan portfolio. Yet another questioned whether balance-sheet adjustments disguised a “true” NPL that in fact breached the 4% covenant.Credito Real didn’t respond to requests from Bloomberg seeking comment.When managers were unable to answer questions, particularly about the size of the portfolio’s 10 largest loans, they sought to provide the information in a follow-up report circulated on May 4, which put the figure at 17.4% of the portfolio. The move seemed designed to reassure investors not just about the company’s risk profile, but its willingness to communicate with the market.“The specific corporate exposure did not deserve such a strong market reaction,” JPMorgan Chase & Co. credit analyst Natalia Corfield wrote in a May 3 note titled “Credito Real: Much Ado about Nothing?”Alpha WoesDespite a “weak” first quarter, liquidity stress testing indicates not only that “the single corporate exposure is not that material, but that more losses in the SME book could also be manageable,” she wrote.That stands in contrast to AlphaCredit, which is in dire need of more equity or another solution to its balance sheet, according to Mizuho Financial Group Inc. analyst John Haugh.Its 2022 and 2025 bonds can be expected to trade around their estimate recovery levels until management gives a better sense of what options it might have, such as a capitalization, sale of a credit portfolio, or restructuring, he wrote in a report last month. He estimates that unsecured creditor recoveries are in the mid-30-cent to 40s range, versus current prices around 25 cents on the dollar.“The capital position will be very weak and that will lead to more difficulties in terms of obtaining financing and access to funding,” said Marcelo De Gruttola of Moody’s Investors Service, which recently downgraded the company two levels to Caa2.Even with the relatively better performance of its debt, Credito Real hasn’t been able to stop questions about the integrity of its business either, and roughly $1.8 billion of dollar and euro-denominated bonds started to dip again last week. The company’s 9.5% dollar notes due 2026 halted their slide Monday, gaining 2.25 cents to 97.75 cents, while its 8% securities due 2028 were little changed at around 90 cents, according to Trace.Credito Real’s liquidity is in decent shape, but upcoming maturities could soak much of that up should capital markets prove inaccessible, said Imperial Capital LLC’s Amer Tiwana.“We are also closely watching the results, which have been disappointing, and if the trend continues, that could lead to trouble,” he said.(Updates bond prices in third-to-last 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. Howell date : 210510 11h34m20s Business Reuters 210510 11h30m U.S. pump prices head for highest since 2014 as hacked fuel pipeline shut U.S. gasoline prices at the pump jumped 6 cents in the latest week and could soon be headed for the highest level since 2014 due to the supply disruption caused by a cyber attack on the country's biggest fuel pipeline system. The ransomware attack forced Colonial Pipeline to shut down its entire system on Friday. The network ships more than 2.5 million barrels per day (bpd) of gasoline, diesel and jet fuel from the Gulf Coast to populous southeast and northeast states. Business Bloomberg 210510 11h27m California Governor Proposes $100 Billion Recovery Package (Bloomberg) -- California Governor Gavin Newsom plans a $100 billion economic recovery package, with the centerpiece a proposal to give $11.9 billion of direct cash payments to Californians, as the state expects a $38 billion surplus for the next fiscal year.The plan would expand on a previous program distributing $600 checks to qualifying low-income residents by extending eligibility to the middle class. Two out of three Californians would receive a check of at least $600, and families with kids will get an additional $500, according to a release from the Democrat’s press office. It would create the biggest state tax rebate on record, the release said.Newsom, who’s facing a likely recall election later this year, will spend the week highlighting parts of his package, which is billed the “California Comeback Plan.” He’s required to present a revised budget for the next fiscal year by the May 14 deadline.The announcement underscores the improved financial picture of the most-populous U.S. state, which last May girded for deficits because of the pandemic-spurred recession. But the state, with a progressive tax system that rakes in more revenue when the income of the highest earners rises, has collected more than it expected from its wealthiest residents. That group has reaped the benefits of rising stock prices and stable employment even as lower-income workers lost their jobs in the pandemic.In January, the state was expecting a $15 billion surplus, and that was before the federal stimulus package passed that gives it $26 billion. The windfall stands at $38 billion, according to the state finance department Monday. Tax collections for the first nine months of the fiscal year are running about 14% ahead of projections.“The state is awash in cash,” John Ceffalio, senior municipal research analyst at CreditSights Inc, said before the announcement. “California came into the pandemic in good fiscal shape and it’s probably leaving it in even better fiscal shape.(Updates with surplus in first 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. World Bloomberg 210510 11h20m U.S. Cases Hit 8-Month Low; U.K. Eases Alert Level: Virus Update (Bloomberg) -- The number of new cases in U.S. rose last week at the slowest pace since the pandemic began, as more Americans are vaccinated and the nation recovers from a winter spike fueled by holiday travel. The total number of new infections was the lowest since September.In New York, free subway and train rides are being offered to those who get shots at city mass-transit terminals.In Europe, the U.K. lowered its alert level and confirmed plans to allow indoor mixing from May 17, while the Czech Republic opened all shops, museums and galleries. BioNTech SE raised its Covid-19 vaccine sales estimate for 2021 to 12.4 billion euros ($15.1 billion) as countries ramp up their inoculation campaigns. Earlier, the company selected Singapore as its Southeast Asia headquarters.India’s capital of New Delhi extended its lockdown for another week as it battled a wave of infections and warned about a potentially deadly fungal infection in Covid-19 patients. Meanwhile, the World Health Organization sees the highly contagious variant spreading in India as a global concern.Key DevelopmentsGlobal Tracker: Cases reach 158.4 million; deaths exceed 3.29 millionVaccine Tracker: More than 1.29 billion doses have been givenCDC stirs concern by paring studies of post-vaccine casesUnused shots pile up as mistrust blights Hong Kong vaccine driveMumbai’s daily vaccine roulette offers dark humor in IndiaTokyo gives a taste of what Covid era Olympic games will be likeSubscribe to a daily update on the virus from Bloomberg’s Prognosis team here. Click CVID on the terminal for global data on cases and deaths.NY Offers Free MTA Rides for Shots (12:10 p.m. NY)New York is setting up vaccination sites at Grand Central, Penn Station and other mass transit stops, and will offer free Metropolitan Transportation Authority rides for everyone who gets a shot.“We want to see more and more customers return to the system,” MTA Chairman Patrick Foye said at a press briefing with Governor Andrew Cuomo.Riders will be given the one-dose Johnson & Johnson shot. On Friday, the subway and the Long Island Rail Road both had the most riders since the pandemic began.WHO Says India Variant a Global Concern (12:08 p.m. NY)The World Health Organization considers a highly contagious Covid variant spreading in India as a “variant of concern” at the global level, according to Maria Van Kerkhove, the group’s technical lead for Covid-19.The WHO will provide more details in a report Tuesday, Van Kerkhove said in a news briefing Monday. She called for more targeted sequencing to be done to track the variant.“There is some available information to suggest increased transmissibility,” according to Van Kerhove. She said a paper that hasn’t yet been peer-reviewed studied a limited number of patients and found a suggestion of some reduced neutralization as well.Illinois to Open Clinics in Office Buildings (11:27 a.m. NY)Illinois will begin offering vaccine clinics at major commercial office buildings, Governor J.B. Pritzker said. The clinics will reach workers in Chicago sites such as the Merchandise Mart and Wrigley Building as well as several suburban office buildings, with slots available during shift changes, Pritzker said during a press conference.“More vaccinations will mean more of a return to normal for everyone,” said Pritzker, who last week announced that his state is on track to reopen as soon as June 11.Chicago’s reopening, which is planned for July 4, also partly depends on vaccination rates, and the city is working to increase uptake in young Black residents as well as in communities including the South side, Mayor Lori Lightfoot said during the event.NYC Offers Free Tickets to Get Vaccinated (11:20 a.m. NY)New York City will give away free tickets to Lincoln Center, Brooklyn Cyclones baseball, botanical gardens and other venues as incentives to get a Covid-19 vaccine in a bid to increase protection in the most populous U.S. city.De Blasio said the city has administered more than 7 million shots but that the rate has dropped precipitously since April, when it doled out as many as 115,000 vaccinations in a single day. On Friday, fewer than 60,000 shots were distributed, and fewer than 16,000 were given to residents on Sunday, which was the Mothers Day holiday.Most Vaccinated Nation Sees Case Surge (10:45 a.m. NY)Seychelles, which has vaccinated the largest proportion of its population of any country against Covid-19, said active cases of the disease more than doubled in the week to May 7. The health ministry of the archipelago off Africa’s east coast said in a statement on Monday that 2,486 people currently have Covid-19 and of those, 37% have received two doses of vaccine. The number of active cases rose from 1,068 a week earlier. Of those in the country who have taken two doses, 57% were inoculated with Sinopharm shots and the rest with Covishield, a vaccine made in India under license from AstraZeneca Plc.U.S. New Cases Continue to Slow (10:15 a.m. NY)The number of new coronavirus cases in U.S. rose last week at the slowest pace since the pandemic began, as more Americans are vaccinated and the nation recovers from a winter spike fueled by holiday travel.There were 286,107 new infections in the week ended Sunday, a 0.9% increase from the prior week and the lowest total since the seven days ended Sept. 20, according to data compiled by Johns Hopkins University and Bloomberg. The total on Sunday of 21,767 new cases was the lowest single-day tally since June 14, also a Sunday.Deaths, which typically lag behind new cases by several weeks, also rose at the slowest rate of the pandemic, 0.82%. The 4,709 new fatalities were the least since the week ended July 5.Spain Hopes for Immunity in 100 Days (9:38 a.m. NY)Spanish Prime Minister Pedro Sanchez said during a visit to Greece that Spain was about 100 days from reaching herd immunity with 70% of the population vaccinated.That’s in line with a previous government prediction that immunity would be achieved at the end of August. Spain has so far administered about 19 million vaccine doses, with nearly 6 million people receiving two doses.Lockdown Easing in Austria Given Green Light (8:26 a.m. NY)Austria will reopen restaurants, hotels and allow sport and music events from May 19 as part of a planned easing of lockdown restrictions. Schools will also return to regular teaching next week after the nation registered 820 new coronavirus cases on Monday, the least since October.Attending social events will require a negative virus test, or proof of vaccination or immunity, Chancellor Sebastian Kurz told reporters on Monday. Family gatherings will still be limited to four adults and their children indoors, and 10 adults outdoors, until a further decline in infections.Gabon Gets 300,000 Sinopharm Doses (8:04 a.m. NY)The Central African nation got its second batch of Sinopharm shots on May 9 following a first shipment of 100,000 doses in March, the health ministry said. Gabon has relied largely on the Chinese-manufactured shot for its inoculation program. A total of 8,035 people were vaccinated by April 30, according to the health ministry.China ‘Quarantine Rope’ for Everest Summit (8 a.m. NY)China pledged to deploy a “quarantine rope” on the summit of Mount Everest to prevent the close contact of climbers on the world’s highest peak. The rope is a bid to prevent climbers who reach the summit from the Nepal and China approaches from spreading infection, according to Nyima Tsering, the head of the Tibet Sports Bureau.Bali Eyes Tourism After Vaccinations (7:45 am NY)The Indonesian island of Bali expects to have vaccinated 70% of its population against Covid-19, by July, potentially enough to achieve “herd immunity” and allow it to begin reopening to foreigners, said Governor Wayan Koster in a statement. The local government has secured enough doses to do so, with more than 1.3 million having received at least their first shots.Malaysia Tightens Curbs as Cases Rise (7:12 a.m.)Malaysia has tightened restrictions on movements across the country to contain a rise in infections, Prime Minister Muhyiddin Yassin said.The restrictions, in place from May 12 to June 7, mean that schools are to close, social gatherings are banned and no social visits are allowed during the coming Eid festival. Travel between districts and states will also be banned.U.K. Lowers Covid Alert Level (7:10 a.m. NY)Chief medical officers from around the U.K. agreed to lower the Covid-19 alert status from Level 4 to Level 3, citing falling case numbers and deaths after months of restrictions and a fast-paced vaccination effort.The move comes after Prime Minister Boris Johnson confirmed that indoor mixing and overnight stays with friends or family would be allowed from May 17.Vaccine Demand Boosts BioNTech Forecast (7 a.m. NY)BioNTech raised its Covid-19 vaccine sales estimate to 12.4 billion euros ($15.1 billion) for this year, issuing a new target for the shot it sells with Pfizer Inc. BioNTech had previously predicted 9.8 billion euros in 2021 revenue from the shot, its first marketed product.Deadly Fungus Infection Found in India (6:57 p.m. HK)India’s health authorities warned about a fungal infection seen in some Covid-19 patients which can disfigure facial features and even kill.Mucormycosis, also called the “black fungus” infection, can damage the sinuses or lungs when the spores are inhaled, the Indian Council of Medical Research said in a health advisory issued Sunday.Patients who have been on medication for some time or had prolonged stays in the intensive-care unit are particularly susceptible, the ICMR said. The rare but deadly infection can kill and maim patients, with some Covid sufferers losing their upper jaws and eyes after contracting it, according to local media reports.Denmark, Poland Update Vaccine Policies (6:22 p.m. HK)Denmark, which dropped AstraZeneca from its national vaccination program last month, is close to setting up a voluntary system through which people can apply to get the company’s shot, Health Minister Magnus Heunicke says.Separately, Poland will shorten the gap between doses of the Pfizer/BioNTech and AstraZeneca vaccines, the country’s leading vaccination official said.UAE Suspends Flights From Four Asian Nations (5:19 p.m. HK)The United Arab Emirates barred the entry of travelers from Bangladesh, Pakistan, Nepal and Sri Lanka. Cargo flights will continue to operate. The Gulf nation, home to Dubai-based Emirates and Abu Dhabi-based Etihad Airways, last week extended the suspension of flights from India.Norway Won’t Use Astra, J&J Vaccines (4:32 p.m. HK)A Norwegian expert committee recommended that AstraZeneca’s and Johnson & Johnson’s vaccines shouldn’t be included in the country’s inoculation program, but were open to making them available on a voluntary basis.The government last month ordered the committee to examine the consequences of not including the vaccines after the Norwegian Institute of Public Health said Astra’s shot shouldn’t be used due to its connection to “rare and serious incidents of low platelets, blood clots and bleeding.”The NIPH on Monday advised against adding the J&J vaccine to the program as the situation stands now. That will delay the first dose by up to two weeks in the 18 to 44 age group, it 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. Business Yahoo Finance 210510 11h20m Stock market news live updates: Stocks trade mixed with tech stocks under pressure, Dow sets record high Stocks traded mixed on Monday, with technology stocks under more pressure as investors weighed the risks that higher inflation during the pandemic recovery might weigh on high-growth names. Business Yahoo Finance 210510 11h19m Unusually 'generous' unemployment benefits weighing on job market rebound: Goldman Sachs Goldman Sachs says the extra unemployment insurance people are receiving may be hurting the job market recovery. Business Bloomberg 210510 11h17m Largest U.S. Fuel Pipeline Vows to Recover From Hack in Days (Bloomberg) -- North America’s biggest petroleum pipeline may take several more days to recover from a cyberattack that forced it to halt shipments of gasoline and other fuels, raising the specter for shortages if local reserves run out.Colonial Pipeline said segments of its Texas-to-New Jersey line are being brought back online in steps, easing some of the most immediate concerns that pumps in major population centers up and down the U.S. East Coast could run dry. The question now is whether regional inventories held in storage tanks are enough to satisfy demand while Colonial works on resuming operations.The conduit has been shut down since late Friday, prompting frenzied moves by traders and retailers to secure alternative supplies. On Monday, the Federal Bureau of Investigation pointed the finger at a ransomware gang known as DarkSide.Emergency shipments of gasoline and diesel from Texas already are on the way to Atlanta and other southeast cities via trucks, and at least one Gulf Coast refinery began trimming output amid expectations that supplies will begin backing up in the nation’s oil-refining nexus. Airlines flying out of Philadelphia International Airport are burning through jet-fuel reserves and will need to locate new supplies “soon,” a spokeswoman said. The national average retail gasoline price rose to $2.967 a gallon on Monday, a 2.4% increase from Friday, according to AAA. The premium for wholesale gasoline in the New York area expanded to its widest in three months.The attack came just as the nation’s energy industry was preparing to meet stronger fuel demand from summer travel. Americans are once again commuting to the office and booking flights after a year in lockdown. Depending on the duration of the disruption, retail prices could spike, further stoking fears of inflation as commodity prices rally worldwide.DarkSide said in a post on the dark web that it wasn’t to blame and hinted that an affiliate group may have been behind the attack. The group promised to do a better job of screening customers that buy its malware.Gasoline futures that initially surged as much as 4.2% in overnight trading surrendered most of those gains on Monday.Convenience-store chains in places like Atlanta and Savannah, Georgia, began clamoring for emergency fuel deliveries on Friday afternoon, said Steve Boyd, senior managing director at Houston-based distributor Sun Coast Resources Inc.Landlocked cities face the greates danger of fuel shortages compared with those with access to water-borne deliveries, Boyd said. If the pipeline remains down for many more days, he’s anticipating a “massive surge” in orders. Sun Coast, which operates about 900 trucks, has delivered emergency supplies during 75 major storms over the past 15 years, including during hurricanes Harvey and Irma in 2017.Although the attack on the Colonial system is “unprecedented,” the conduit ought to be back in service in three to five days, Amrita Sen, co-founder of consultant Energy Aspects Ltd., told Bloomberg TV just hours before the pipeline company announced it’s end-of-week target.Gasoline for June delivery was 0.1% higher at $2.1295 a gallon at 12:45 p.m. in New York. Futures prices have gained 40% this year, helped by the recovery from the worst effects of the pandemic.Tankers BookedPrior to Colonial’s Monday statement, traders were seeking vessels to deliver fuel to coastal terminals. Four vessels were provisionally chartered to send diesel or gasoline from Europe to the U.S. Atlantic Coast, according to Danish oil-product tanker company Torm A/S.Some tankers are also being secured to temporarily store gasoline along the Gulf Coast, according to market participants who asked not to be identified because the information isn’t public. Meanwhile, Total SE scaled back activity in a key unit at its Port Arthur, Texas, refinery because of the Colonial shutown, according to a person familiar with operations.Increased SecurityColonial halted all operations on its system late Friday after suffering a ransomware attack that affected some of its IT systems.The event is just the latest example of critical infrastructure being targeted by ransomware. Hackers are increasingly attempting to infiltrate essential services such as electric grids and hospitals. The escalating threats prompted the White House to respond last month with a plan to increase security at utilities and their suppliers. Pipelines are a specific concern because of the central role they play in the U.S. economy.“It’s an all-hands-on-deck effort right now,” said U.S. Commerce Secretary Gina Raimondo. “We are working closely with the company, state and local officials to make sure that they get back up to normal operations as quickly as possible and there aren’t disruptions in supply.”The White House pulled together an inter-agency task force to address the breach, including exploring options for lessening its impact, according to an official. President Joe Biden can invoke an array of emergency powers to ensure supplies keep flowing to big cities and airports along the East Coast.Rules EasedSome rules curbing domestic transportation of fuel have been eased to help deal with any shortages. That doesn’t extend to waiving Jones Act, a measure that would allow foreign tankers to help shuffle more petroleum products between U.S. ports.“There are ways to get around this,” said Jeff Currie, global head of commodities at Goldman Sachs Group Inc. “Importantly, the Department of Transportation has lifted any restrictions around trucking and boat transportation, which means you can use other avenues of transportation to deal with this.”Colonial has the capacity to send about 2.5 million barrels (105 million gallons) a day from Houston as far as North Carolina, and another 900,000 barrels a day to New York.Extortion FeeRansomware cases involve hackers seeding networks with malicious software that encrypts the data and leaves the machines locked until the victims pay the extortion fee. This would be the biggest attack of its kind on a U.S. fuel pipeline.With gasoline inventories ample, pump prices weren’t expected to tick much higher until Memorial Day at the end of May, which is traditionally viewed as the start of the U.S. summer driving season. If the pipeline doesn’t restart soon it will accelerate the move higher.“Atlanta will be one of the earlier sore spots, along with eastern Tennessee, and perhaps the Carolinas,” said Patrick DeHaan, head of petroleum analysis at GasBuddy.The Northeast can secure gasoline shipments from Europe but it will come at an increasing cost the longer the pipeline stays shut. The fuel’s premium to crude in northwest Europe had jumped by more than 5% in intra-day trading earlier on Monday but was still down week-on-week.In the meantime, fuel producers including Marathon Petroleum Corp. are weighing alternatives for how to ship their products to the Northeast.One potential route is the Kinder Morgan-operated Plantation Pipeline, even though it only extends as far north Washington D.C. and has a capacity of 720,000 barrels a day, far short of Colonial’s. Kinder said Sunday it’s working with customers to accommodate additional barrels during Colonial’s outage, and that Plantation is deferring where possible any non-essential maintenance that might otherwise reduce flow rates.While all of the major segments of Colonial’s system remain offline, some smaller so-called laterals connecting specific fuel terminals to delivery points are in service, the company said earlier.Inventories offer minimal cover, ClearView Energy Partners said in a research note. Tankers leaving Rotterdam could take up to 14 days to make the trip to the New York Harbor. The Midwest could theoretically send some of its supplies to the East Coast via rail and barge, but the region’s inventories are tighter than in previous years, ClearView said.“The Colonial outage comes at a critical juncture for the recovering U.S. economy: the start of the summer driving season,” ClearView said. “We therefore think lawmakers could begin a ‘blame game’ immediately, and a sustained disruption that leads to a significant pump price spike could increase prospects of domestic policy interventions.”(Adds Philadephia airport’s reliance on fuel reserves in fourth paragraph, ransomware group’s comments 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. Business Bloomberg 210510 11h02m Tech Shares Decline With Inflation Angst Rising: Markets Wrap (Bloomberg) -- Technology shares fell as surging commodity prices stoked concern about whether inflation will derail a growth rebound in the world’s largest economy and spoil a record stock rally.The tech-heavy Nasdaq 100 Index declined for the first time in three sessions amid the growing anxiety over inflation, which can threaten longer-horizon revenues typical of the sector. Alphabet and Facebook were downgraded to neutral at Citigroup. The ARK Innovation ETF resumed its slide. The Dow Jones Industrial Average rose to a record, topping 35,000 for the first time. The benchmark S&P 500 was little changed. Treasury yields steadied as traders brace for a busy week of auctions.“People have been gravitating to value -- now you can find growth outside of tech,” said Keith Lerner, chief market strategist at Truist Advisory Services. “As inflation expectations continue to move higher, that’s more beneficial for the value side of the trade.”Copper jumped to a record while iron ore futures surged more than 10%, adding to concern about inflation. West Texas Intermediate fluctuated after a cyberattack forced the closure of a key U.S. pipeline, which operators hope to reopen by the end of the week. Meanwhile, the pound climbed to its highest level since February after U.K. elections denied Scotland’s main independence party an outright majority and strengthened the grip of the Conservatives.The run-up in raw materials is intensifying debate ahead of a U.S. CPI report Wednesday that is forecast to show price pressures increased in April. The data will be closely watched by policy makers at the Federal Reserve trying to gauge the speed of the recovery after job growth significantly undershot forecasts.“The strong inflation figures that are expected this week could change the market narrative and raise concerns about the risk that inflation pressures are picking up significantly, even if the real economic recovery will remain far from complete for some time,” according to Credit Agricole SA strategists led by Jean-Francois Paren. “If this is the case, it could weigh on risk appetite in the coming days and weeks.”Read more: Inflation Debate Hits Emerging Markets as Pimco Stands Firm The MLIV Question of the Day: How Could Highest CPI in Decade Hit Assets?Here are some key events to watch this week:A range of Fed speakers are due this week, including Chicago Fed President Charles Evans on the economic outlook Monday and U.S. Fed Governor Lael Brainard on Tuesday, among othersChinese inflation data are due TuesdayOPEC monthly Oil Market Report is published with global demand forecasts and production estimates TuesdayU.S. CPI report Wednesday is forecast to show prices continued to increase in AprilBank of England Governor Andrew Bailey speaks WednesdayThese are some of the main moves in markets: StocksThe S&P 500 fell 0.1% as of 1:01 p.m. New York timeThe Nasdaq 100 fell 1.5%, more than any closing loss since May 4The Dow Jones Industrial Average rose 0.7% to a record highThe MSCI World index rose 0% to a record highCurrenciesThe Bloomberg Dollar Spot Index fell 0.1%, falling for the fourth straight day, the longest losing streak since April 19The euro was little changed at $1.2159The British pound rose 1.1% to the highest in about three yearsThe Japanese yen fell 0.2% to 108.81 per dollarBondsThe yield on 10-year Treasuries advanced one basis point, more than any closing gain since April 29Germany’s 10-year yield advanced zero basis points, climbing for the fourth straight day, the longest winning streak since April 29Britain’s 10-year yield advanced one basis point to 0.79%CommoditiesWest Texas Intermediate crude was little changedGold futures rose 0.4%, climbing for the fourth straight day, the longest winning streak since Feb. 10For 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. Howell date : 210510 11h03m44s Business Bloomberg 210510 10h58m Colonial Hacker Group Seeks to Shift Blame for Ransomware (Bloomberg) -- The Federal Bureau of Investigation attributed the massive Colonial Pipeline breach to ransomware created by a relatively new gang called DarkSide on Monday as new details emerged about the group accused of carrying out the attack.“The FBI confirms that the DarkSide ransomware is responsible for the compromise of the Colonial Pipeline networks,” the agency wrote in a Monday statement.In its own statement, the DarkSide group hinted that an affiliate may have been behind the attack and that it never intended to cause such upheaval. Like some other ransomware groups, DarkSide offers to sell its malware to others in what is known as “ransomware-as-a-service,” according to the cybersecurity firm Cybereason.In a message posted on the dark web, where DarkSide maintains a site, the group suggested one of its customers was behind the attack and promised to do a better job vetting them going forward.“We are apolitical. We do not participate in geopolitics,” the message says. “Our goal is to make money and not creating problems for society. From today, we introduce moderation and check each company that our partners want to encrypt to avoid social consequences in the future.”Rob Lee, chief executive officer of the industrial security firm Dragos Inc., said that the distinction between DarkSide and affiliates doesn’t shift blame. “Whether they passed off the keyboard or not I don’t know,” he said. “But they’re responsible either way.” He added that the group may avoid targets that draw federal law enforcement attention in the future, but that most ransomware targets have implications for society.Colonial Pipeline halted all operations on its systems May 7 when it was hit with ransomware and is working to restore operations as investigators assess the damage. On Monday, Colonial pledged to restore deliveries of gasoline and other fuels to the eastern U.S. by the end of the week.The group’s message came after the White House announced over the weekend that it had pulled together an inter-agency task force to tackle the problem. The task force worked through the weekend to address the breach, including exploring options for lessening its impact on the energy supply, according to a White House official.While the inquiry remains in its early stages, some evidence has emerged linking DarkSide to Russia or elsewhere in Eastern Europe.The attackers are known by cybersecurity experts as a “Russian-speaking group that popped up last summer,” according to Dmitri Alperovitch, the chairman of Silverado Policy Accelerator and former chief technology officer of the cybersecurity firm Crowdstrike Holdings Inc.“Like many Russian cyber crime operations they specifically exclude Russian companies from being targeted by their malware,” he added in a statement.RansomsLee said his teams at Dragos have responded to a few incidents involving DarkSide ransomware in recent months, including a U.S. power company that he declined to name. In those cases -- which involve companies smaller than Colonial Pipeline -- DarkSide ransoms were typically in the single-digit millions of dollars, Lee said.Dragos investigators didn’t pinpoint the group’s location. But Lee said that IP and email addresses found in the investigations were based in Russia. In addition, he said, DarkSide doesn’t typically work on systems operating in Russian and other Eastern European languages.The Russian Embassy in Washington didn’t immediately respond to a request for comment. The Kremlin has previously denied responsibility for hacking attacks.The hackers stole almost 100 gigabytes of data from Colonial Pipeline’s networks in just two hours on Thursday, before locking its computers with ransomware and demanding payment, according to two people familiar with the investigation.DarkSide has been identified as the suspected hacking group by two people familiar with the investigation and by Allan Liska, a senior threat analyst at the cybersecurity firm Recorded Future. The group first surfaced in August 2020, according to a blog post by the cybersecurity firm Cybereason.Pipeline SecurityOn Sunday, Colonial Pipeline said it was still developing a plan for restarting the pipeline, which is critical for supplies along the East Coast.The Transportation Security Administration, which is responsible for working to enhance pipeline security, said in a statement it has been in contact with Colonial Pipeline.Senator Angus King, independent from Maine, and Representative Mike Gallagher, Republican from Wisconsin, who are co-chairs of the CyberSpace Solarium Commission, said in a statement the Colonial Pipeline attack underscores the need for more robust cybersecurity measures.“We are disappointed, though unsurprised, to learn of the cyber-attack that shut down 5,500 miles of pipeline,” they said. “This interruption of the distribution of refined gasoline and jet fuel underscores the vulnerability of our national critical infrastructure in cyberspace and the need for effective cybersecurity defenses.”(Updates with Colonial vowing to restore service by end of week in seventh paragraph. A previous version of the story spelled Allan Liska’s name incorrectly.)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. Business Yahoo Finance 210510 10h52m San Francisco Fed President Mary Daly speaks with Yahoo Finance [Transcript] A full transcript of San Francisco Fed President Mary Daly's interview with Yahoo Finance on May 10. Business Bloomberg 210510 10h51m Hacked Fuel Pipeline Vows to Restore Service by End of Week (Bloomberg) -- North America’s biggest petroleum pipeline pledged to restore deliveries of gasoline and other fuels to the eastern U.S. by the end of the week after a cyberattack halted shipments.Colonial Pipeline said segments of its Texas-to-New Jersey line are being brought back online in steps, easing some concerns that fuel shortages could threaten major population centers up and down the U.S. East Coast. The question now is whether regional inventories held in storage tanks are enough to satisfy demand while Colonial works on resuming operations.The conduit has been shut down since late Friday, prompting frenzied moves by traders and retailers to secure alternative supplies. On Monday, the Federal Bureau of Investigation said it’s looking into the disruption.Emergency shipments of gasoline and diesel from Texas already are on the way to Atlanta and other southeast cities via trucks, and at least one Gulf Coast refinery began trimming output amid expectations that supplies will begin backing up in the nation’s oil-refining nexus.The national average pump price rose to $2.967 a gallon on Monday, a 2.4% increase from Friday, according to AAA. The premium for wholesale gasoline in the New York area expanded to its widest in three months.The attack came just as the nation’s energy industry was preparing to meet stronger fuel demand from summer travel. Americans are once again commuting to the office and booking flights after a year in lockdown. Depending on the duration of the disruption, retail prices could spike, further stoking fears of inflation as commodity prices rally worldwide.Gasoline futures that initially surged as much as 4.2% in overnight trading surrendered most of those gains on Monday.Convenience-store chains in places like Atlanta and Savannah, Georgia, began clamoring for emergency fuel deliveries on Friday afternoon, said Steve Boyd, senior managing director at Houston-based distributor Sun Coast Resources Inc.Landlocked cities face the greates danger of fuel shortages compared with those with access to water-borne deliveries, Boyd said. If the pipeline remains down for many more days, he’s anticipating a “massive surge” in orders. Sun Coast, which operates about 900 trucks, has delivered emergency supplies during 75 major storms over the past 15 years, including during hurricanes Harvey and Irma in 2017.Although the attack on the Colonial system is “unprecedented,” the conduit ought to be back in service in three to five days, Amrita Sen, co-founder of consultant Energy Aspects Ltd., told Bloomberg TV just hours before the pipeline company announced it’s end-of-week target.Gasoline for June delivery was 0.1% higher at $2.1295 a gallon at 12:45 p.m. in New York. Futures prices have gained 40% this year, helped by the recovery from the worst effects of the pandemic.Tankers BookedPrior to Colonial’s Monday statement, traders were seeking vessels to deliver fuel to coastal terminals. Four vessels were provisionally chartered to send diesel or gasoline from Europe to the U.S. Atlantic Coast, according to Danish oil-product tanker company Torm A/S.Some tankers are also being secured to temporarily store gasoline along the Gulf Coast, according to market participants who asked not to be identified because the information isn’t public. Meanwhile, Total SE scaled back activity in a key unit at its Port Arthur, Texas, refinery because of the Colonial shutown, according to a person familiar with operations.Increased SecurityColonial halted all operations on its system late Friday after suffering a ransomware attack that affected some of its IT systems.The event is just the latest example of critical infrastructure being targeted by ransomware. Hackers are increasingly attempting to infiltrate essential services such as electric grids and hospitals. The escalating threats prompted the White House to respond last month with a plan to increase security at utilities and their suppliers. Pipelines are a specific concern because of the central role they play in the U.S. economy.“It’s an all-hands-on-deck effort right now,” said U.S. Commerce Secretary Gina Raimondo. “We are working closely with the company, state and local officials to make sure that they get back up to normal operations as quickly as possible and there aren’t disruptions in supply.”The White House pulled together an inter-agency task force to address the breach, including exploring options for lessening its impact, according to an official. President Joe Biden can invoke an array of emergency powers to ensure supplies keep flowing to big cities and airports along the East Coast.Rules EasedSome rules curbing domestic transportation of fuel have been eased to help deal with any shortages. That doesn’t extend to waiving Jones Act, a measure that would allow foreign tankers to help shuffle more petroleum products between U.S. ports.“There are ways to get around this,” said Jeff Currie, global head of commodities at Goldman Sachs Group Inc. “Importantly, the Department of Transportation has lifted any restrictions around trucking and boat transportation, which means you can use other avenues of transportation to deal with this.”Colonial has the capacity to send about 2.5 million barrels (105 million gallons) a day from Houston as far as North Carolina, and another 900,000 barrels a day to New York.The attack appeared to use a ransomware group called DarkSide, according to Allan Liska, senior threat analyst at cybersecurity firm Recorded Future. The cybersecurity firm FireEye Inc. said its Mandiant incident response division was assisting with the investigation.Extortion FeeRansomware cases involve hackers seeding networks with malicious software that encrypts the data and leaves the machines locked until the victims pay the extortion fee. This would be the biggest attack of its kind on a U.S. fuel pipeline.With gasoline inventories ample, pump prices weren’t expected to tick much higher until Memorial Day at the end of May, which is traditionally viewed as the start of the U.S. summer driving season. If the pipeline doesn’t restart soon it will accelerate the move higher.“Atlanta will be one of the earlier sore spots, along with eastern Tennessee, and perhaps the Carolinas,” said Patrick DeHaan, head of petroleum analysis at GasBuddy.The Northeast can secure gasoline shipments from Europe but it will come at an increasing cost the longer the pipeline stays shut. The fuel’s premium to crude in northwest Europe had jumped by more than 5% in intra-day trading earlier on Monday but was still down week-on-week.In the meantime, fuel producers including Marathon Petroleum Corp. are weighing alternatives for how to ship their products to the Northeast.One potential route is the Kinder Morgan-operated Plantation Pipeline, even though it only extends as far north Washington D.C. and has a capacity of 720,000 barrels a day, far short of Colonial’s. Kinder said Sunday it’s working with customers to accommodate additional barrels during Colonial’s outage, and that Plantation is deferring where possible any non-essential maintenance that might otherwise reduce flow rates.While all of the major segments of Colonial’s system remain offline, some smaller so-called laterals connecting specific fuel terminals to delivery points are in service, the company said earlier.Inventories offer minimal cover, ClearView Energy Partners said in a research note. Tankers leaving Rotterdam could take up to 14 days to make the trip to the New York Harbor. The Midwest could theoretically send some of its supplies to the East Coast via rail and barge, but the region’s inventories are tighter than in previous years, ClearView said.“The Colonial outage comes at a critical juncture for the recovering U.S. economy: the start of the summer driving season,” ClearView said. “We therefore think lawmakers could begin a ‘blame game’ immediately, and a sustained disruption that leads to a significant pump price spike could increase prospects of domestic policy interventions.”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. Business Reuters 210510 10h46m Colonial says it expects to 'substantially' restore operational service by end of week NEW YORK (Reuters) -Colonial Pipeline, the largest fuel pipeline in the United States, expects to "substantially" restore operational service by the end of the week, the company said on Monday. Colonial last week fell victim to a cyber attack that shut its entire network. The ransomware attack is one of the most disruptive digital ransom schemes reported and the resulting shutdown has disrupted fuel supply across the eastern United States, triggering isolated sales restrictions at retail pumps and pushing benchmark gasoline prices to a three-year high. World Reuters 210510 10h45m UPDATE 1-WTO chief says hopes COVID patent issue will be settled by December The head of the World Trade Organisation said on Monday she hoped that by December the body's members will have reached a "pragmatic" solution over whether to waive COVID-19 vaccine patents. Ngozi Okonjo-Iweala said she saw "movement on both sides" - referring to proponents of a waiver and those who have objections - and was hopeful of a framework agreement on the waiver issue, technological transfers and better access to vaccines for developing countries. December was "an outer limit," for such a deal, the WTO director-general said at a briefing with journalists during a visit to Italy, which this year chairs the Group of 20 rich nations. Business Bloomberg 210510 10h43m Gasoline’s Rally Eases With Colonial Restarting Part of Pipeline (Bloomberg) -- Gasoline futures pared a rally after the operator of the largest U.S. oil-products pipeline system said it’s restarting some sections of its pipeline following a cyberattack. Crude futures were unchanged.Colonial Pipeline Co., a key supplier of fuels to the eastern U.S., was forced to halt operations late Friday and now sees service mostly restored by the end of this week. Gasoline futures earlier surged as much as 4.2% to the highest since May 2018 on Monday.The impact of the shutdown across the U.S. will vary by region and is likely to cause fuel pile-ups, as well as shortages in the short-term, along different parts of the extended supply chain. Barrels are trapped on the U.S. Gulf Coast and at least one refiner is reducing processing rates in response, weakening demand for crude. But on the East Coast, refiners may need to crank up operations temporarily to meet demand.While the pipeline disruption is so far not making huge waves in futures markets, it proves ill-timed as the summer travel rush approaches in the world’s largest oil-consuming country. Over the weekend, traders were said to be securing barges and tankers to send barrels from the U.S. Gulf to the East Coast, and even seeking ships to temporarily store products in the Gulf if the shut down does last longer than expected.U.S. Gulf Coast spot gasoline prices slipped on Monday to the biggest discount to Nymex futures in more than a year. The premium for New York gasoline against Gulf Coast widened to the largest gap since mid-February.The Colonial network is the main source of gasoline, diesel and jet fuel for the East Coast, with capacity of about 2.5 million barrels a day on its system from Houston to as far as North Carolina, and another 900,000 barrels to New York. Meanwhile, Total SA’s Port Arthur plant in Texas is already scaling back operations at its fuel-making unit.“The reality, the real math, is that if refiners are forced to pull back on their refinery utilization rate, they will be making less gasoline and thus will be using less crude oil,” said Bob Yawger, head of the futures division at Mizuho Securities.Ttraders and shippers are seeking vessels to deliver gasoline that would have otherwise gone via the Colonial system, according to people familiar with the matter. Others are securing tankers to store gasoline in the Gulf, they said. At least one gasoline-hauling tanker has already halted outside the U.S. Gulf, as traders assess where the fuel will be needed most.Amid the disruption, there could also be calls to suspend the Jones Act, according to John Kilduff, founding partner at Again Capital LLC. The law requires goods shipped between U.S. ports to be moved on vessels built, owned, and operated by the nation’s citizens or permanent residents.Even before Colonial’s system was forced offline, gasoline had rebounded strongly this year on rising demand from motorists. U.S. refiners were ramping up output ahead of the key summer driving season, with the biggest spike expected at the start of the Memorial Day holiday on May 31, a three-day weekend for most Americans.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. Howell date : 210510 10h33m07s Business Reuters 210510 10h24m US STOCKS-Dow hits record high on boost from economy-linked stocks; Nasdaq drops The Dow Jones Industrial Average hit a record high on Monday on hopes that interest rates would remain lower for longer, while the S&P 500 was subdued as a slide in technology shares offset a surge in commodity-linked energy and material stocks. The Nasdaq, on the contrary, dropped 1.5% as some of the market leaders of 2020 - Apple Inc, Amazon.com Inc , Facebook Inc and Tesla Inc - fell between 1.4% and 4%. The energy index jumped to its highest in more than one year after a cyber attack on top U.S. pipeline operator Colonial Pipeline shuttered a fuel network that transports nearly half of the East Coast's supplies. Business Bloomberg 210510 10h23m Hedge Funds Facing Biden Tax Threat Grab Puerto Rico Toehold (Bloomberg) -- With Democrats pushing for higher taxes on the richest Americans to fund President Joe Biden’s infrastructure and climate initiatives, hedge fund managers are taking refuge in Puerto Rico.ExodusPoint Capital Management and Millennium Management have established subsidiaries on the island, according to local records. That could help portfolio managers at the firms relocate to Puerto Rico to obtain huge tax breaks -- an increasingly popular option now that the pandemic has made working remotely mainstream.Michael Gelband’s ExodusPoint created a money-management unit on the island on behalf of co-founder Hyung Soon Lee, who moved there last year, and other investment talent in the region. Izzy Englander’s Millennium set up its own Puerto Rico arm weeks after Biden’s election.The existence of the subsidiaries, which hasn’t been reported previously, holds greater significance now that Biden has proposed a series of tax increases on top earners. While some Wall Street denizens have been moving to locales with no state income taxes, such as Florida, those who venture to Puerto Rico may be able to avoid federal levies as well.“You have a lot of people looking to relocate because they no longer have to be in close proximity to where they work,” said Peter Schiff, who moved the asset-management arm of his Westport, Connecticut-based brokerage, Euro Pacific Capital, to San Juan in 2013. “The higher the taxes are” in the U.S., Schiff said, “the greater the appeal of coming here.”Dan Morehead’s Pantera Advisors, based in Menlo Park, California, set up a money-management unit last month in the town of Guaynabo, according to a filing.Billionaire John Paulson, who made a fortune betting against the housing market ahead of the 2008 financial crisis, began scouting for real estate on the island in 2013. Paulson, who said in recent years that he intended to move to Puerto Rico, now has no plans to do so, according to a spokesman.Read more: Paulson’s Puerto Rico Paradise Lures Rich Fleeing U.S. TaxesThe lure for would-be tax-savers is a pair of laws Puerto Rico enacted in 2012 to attract wealthy mainlanders: the Export Services Act and the Individual Investors Act. The latter is of particular interest to hedge fund managers because it exempts capital-gains taxes, including those levied on the performance fees that comprise the bulk of their compensation. In New York, such income currently would be subject to aggregate federal, state and local taxes approaching 50%.Puerto Rico received almost 3,500 applications for the tax incentives during fiscal 2019 and 2020, exceeding the combined total for the previous seven years, according to the commonwealth’s Department of Economic Development and Commerce. More than 1,000 applications were filed during the six months through March, an agency spokeswoman said.The tax breaks are generally available to new residents and services businesses that generate revenue outside Puerto Rico. Applications are confidential until approved, and the government offices that vet the requests are grappling with a backlog of at least seven months that has been exacerbated by the pandemic and surging demand.As of the end of March, ExodusPoint and Millennium were the only large money managers with affiliates in Puerto Rico, Securities and Exchange Commission records show. So far, Lee hasn’t received an exemption under the Individual Investors Act, and neither of the firms’ subsidiaries have been granted incentives under the Export Services Act, according to the government spokeswoman.Representatives for ExodusPoint and Millennium declined to comment. Millennium is also planning to open two more offices next year in Florida, including its second location in Miami and another in West Palm Beach, a person familiar with the matter said.Read more: Millennium Set to Open Two More Offices in Tax-Friendly FloridaIn Dorado, about 20 miles (32 kilometers) west of the capital San Juan, real estate prices have soared. The area is considered family-friendly, has high-end housing and is one of the few places with the infrastructure finance professionals need to tap into their employers’ computer networks on the mainland.“There has been exceptional interest, in part because Dorado has access to fiber broadband,” said Jared Dubin, who recently set up Troluce Capital Advisors there to manage money for ExodusPoint. “The Dorado real estate market has been pretty wild.”Millennium incorporated a San Juan-based company, MPG PR Management, on Nov. 23, according to records maintained by Puerto Rico’s Department of State. The subsidiary had four money managers working there at year-end, SEC records show.In June, ExodusPoint incorporated its subsidiary in Dorado, where Lee, 52, now lives. He owns 50% of that entity, ExodusPoint Capital Management Puerto Rico, and shares ownership of the rest with Gelband through another affiliate, according to a regulatory filing.Lee, whose Facebook page shows him seated at the controls of a private plane, has a commercial pilot rating and is certified to fly small jets, Federal Aviation Administration records show.In September, ExodusPoint revised its SEC filings to say that Lee’s business trips on a plane he had recently purchased would be partially covered by the firm’s expense policy. It allows Lee and Gelband to seek reimbursement from ExodusPoint hedge funds for private flights, with repayment limited to the equivalent cost of first-class commercial airfare.Shared HistoryMillennium and ExodusPoint have a shared history -- Lee and Gelband were top executives at Englander’s firm before leaving to form ExodusPoint –- and a similar business model. Both allocate capital in their main hedge funds to independent teams of traders known as pods, some of which work in-house and others that organize themselves as separate money-management firms, such as Dubin did with Troluce.Even before the pandemic, Millennium had set up dozens of remote offices, including outposts in Laguna Beach, California, and Sugar Land, Texas, for portfolio managers who didn’t want to live in New York. ExodusPoint adopted the practice as well.More managers may soon be joining them in the Caribbean.“If people are interested in drastic life changes in order to pay less tax, then I have one item on my list,” said Stewart Patton, a Belize-based attorney who helps U.S. expatriates optimize their tax situations. “Move to Puerto Rico.”(Updates with Millennium’s Florida plans in 12th 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. Business Reuters 210510 10h17m Exclusive: Lufthansa aims for 3 billion euro capital increase to repay bailout - sources Lufthansa is working with Deutsche Bank and Bank of America to sound out investors about a capital increase worth roughly 3 billion euros ($3.7 billion), possibly as soon as June, people close to the matter said. The final size and timing of the rights issue to repay state aid Lufthansa received during the pandemic will be subject to market conditions and the German airline is expected to opt for a June/July or September/October window, the people said. Lufthansa and the banks, the lead advisers on the deal, declined to comment. Business Reuters 210510 10h13m UPDATE 1-AstraZeneca reaches vaccine shipping milestone as EU sues again AstraZeneca Plc has delivered 50 million doses of its COVID-19 vaccine to European Union countries, according to EU supply data, a milestone the company had originally been expected to hit in January. The volumes delivered make up just one-sixth of total commitments so far, and the European Commission is set to launch on Tuesday a second legal case against AstraZeneca over delayed deliveries, a spokesman for the EU executive said on Monday. Repeated cuts to supplies, which contributed to delays in the EU's vaccination drive, pushed the EU Commission to sue the Anglo-Swedish drugmaker in late April in a bid to get more doses by mid-year. Business Reuters 210510 10h11m Exclusive: Iraq formally asks to buy $350 million Exxon oilfield share Iraq has formally asked to buy U.S. energy giant ExxonMobil's share in one of Iraq's biggest oilfields, West Qurna 1, the head of the state-run oil operating company said on Monday. Iraq said last month that Exxon was seeking to sell its 32.7% stake in West Qurna 1, and that the oil ministry had started discussions over a possible purchase. "A decision has been made and we sent a formal letter to ExxonMobil asking to buy its share," Basra Oil Company director Khalid Hamza told Reuters in an interview, adding the oil and finance ministries will follow up with procedures to secure the finance. Business Bloomberg 210510 10h07m Facebook Should Halt Instagram Youth, Attorneys General Say (Bloomberg) -- Forty-four attorneys general are urging Facebook Inc. Chief Executive Officer Mark Zuckerberg to abandon plans to build a new version of photo-sharing network Instagram for young children, arguing the new app could harm kids’ mental health and compromise their privacy.“Use of social media can be detrimental to the health and well-being of children, who are not equipped to navigate the challenges of having a social media account,” the bipartisan group of state attorneys general wrote in a letter dated Monday. “Facebook has historically failed to protect the welfare of children on its platforms.”Facebook said in a statement it will prioritize safety, privacy and working with regulators and experts as it builds out the service. The company also committed not to show any advertisements on the youth platform.“We agree that any experience we develop must prioritize their safety and privacy, and we will consult with experts in child development, child safety and mental health, and privacy advocates to inform it,” the company said.The letter adds to the public opposition to the social media giant’s plan to build an Instagram for kids younger than 13, who are currently barred from using the company’s regular platforms. During a March congressional hearing, U.S. lawmakers questioned Zuckerberg about the project and pressed him to make sure his company does more to protect children. Child welfare and privacy advocates have said the new app could contribute to depression, loneliness and anxiety in young users.Facebook is still in the early stages of building out the app. Executives have said the company is aiming to give preteens access to most of the same features now offered on Instagram but with parental control and visibility. The Menlo Park, California-based company argues that many kids younger than 13 already use Instagram, and executives say the service will give them an alternative to lying about their age.Facebook has yet to offer a timeline or finalize features of what has internally been called Instagram Youth. Previously, Facebook launched Messenger Kids, which is a version of the company’s messaging app that gives parents the power to monitor their children’s communications and connections and to set time limits.(Updates with comments from Facebook in the 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. Howell date : 210510 10h02m30s Politics Reuters 210510 09h51m UPDATE 1-Biden to announce efforts to boost hiring -official U.S. President Joe Biden on Monday will announce efforts to make it easier for employers to hire workers and to help more people take jobs, a White House official said, after Republican criticism amid disappointing jobs numbers last week. Biden will also discuss the rules of unemployment insurance, according to the official. The New York Times reported on Biden's expected announcement earlier on Monday, saying the efforts would be related to the continued implementation of his coronavirus relief plan. Business Yahoo Finance 210510 09h50m Marriott CEO: We are seeing a really strong rebound in leisure and business travel Travel is on the mend, Marriott CEO Tony Capuano said on Yahoo Finance Live. Business Bloomberg 210510 06h02m Nasdaq Futures Dip as Commodities Boom Gives Pause: Markets Wrap (Bloomberg) -- Nasdaq futures fell as surging commodity prices stoked concern about whether inflation will derail a growth rebound in the world’s largest economy and spoil a record stock rally.The tech-heavy index has been whipsawed by the prospect of inflation which can threaten longer-horizon revenues typical of the industry. Contracts on the S&P 500 Index posted a modest gain. Treasury yields steadied as traders brace for a busy week of auctions.Copper jumped to a record while iron ore futures surged more than 10%, adding to concern about inflation. West Texas Intermediate and Brent both rose as gasoline surged as much as 4.2% to the highest since May 2018 after a cyberattack forced the closure of a key U.S. pipeline. In pre-market trading, shares of copper producer Freeport-McMoRan Inc. jumped 3%.Meanwhile, the pound climbed to its highest level since February after U.K. elections denied Scotland’s main independence party an outright majority and strengthened the grip of the Conservatives.The run-up in raw materials is intensifying debate ahead of a U.S. CPI report Wednesday that is forecast to show price pressures increased in April. The data will be closely watched by policy makers at the Federal Reserve trying to gauge the speed of the recovery after job growth significantly undershot forecasts.“The strong inflation figures that are expected this week could change the market narrative and raise concerns about the risk that inflation pressures are picking up significantly, even if the real economic recovery will remain far from complete for some time,” according to Credit Agricole SA strategists led by Jean-Francois Paren. “If this is the case, it could weigh on risk appetite in the coming days and weeks.”Read more: Inflation Debate Hits Emerging Markets as Pimco Stands Firm European stocks were little changed, with significant gains in miners offset by a slump in travel shares after the U.K. opened tourist travel to fewer destinations than hoped.The MLIV Question of the Day: How Could Highest CPI in Decade Hit Assets?Here are some key events to watch this week:A range of Fed speakers are due this week, including Chicago Fed President Charles Evans on the economic outlook Monday and U.S. Fed Governor Lael Brainard on Tuesday, among othersChinese inflation data are due TuesdayOPEC monthly Oil Market Report is published with global demand forecasts and production estimates TuesdayU.S. CPI report Wednesday is forecast to show prices continued to increase in AprilBank of England Governor Andrew Bailey speaks WednesdayThese are some of the main moves in markets:StocksFutures on the S&P 500 Index increased 0.1% as of 8:20 a.m. New York time.The Stoxx Europe 600 Index climbed 0.1%.The MSCI Asia Pacific Index advanced 0.7%.The MSCI Emerging Market Index gained 0.4%.CurrenciesThe Bloomberg Dollar Spot Index fell 0.1%.The euro was little changed at $1.2168.The British pound advanced 1% to $1.4119.The onshore yuan strengthened 0.3% to 6.414 per dollar.The Japanese yen weakened 0.1% to 108.72 per dollar.BondsThe yield on 10-year Treasuries climbed less than one basis point to 1.58%.The yield on two-year Treasuries declined less than one basis point to 0.14%.Germany’s 10-year yield advanced one basis point to -0.21%.Japan’s 10-year yield dipped less than one basis point to 0.087%.Britain’s 10-year yield jumped two basis points to 0.794%.CommoditiesWest Texas Intermediate crude increased 0.9% to $65.48 a barrel.Brent crude gained 1% to $68.96 a barrel.Gold strengthened 0.5% to $1,840.02 an ounce.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. Business Reuters 210510 09h45m U.S. insurance actuary group backtracks on decision to drop protection language Facing mounting opposition, a major insurance actuary organization has backtracked on a decision to drop long-standing principles on how car and home policy premiums should be set. The Casualty Actuarial Society (CAS) said on Friday it had reinstated principles in use since 1988 that required rates for such coverage to reflect the costs. The decision came a week after the Consumer Federation of America (CFA) said it had asked regulators to toughen their oversight to avoid unfair or discriminatory prices in the absence of the guiding principles. Business Bloomberg 210510 09h44m Colonial Hacker Group Seeks to Shift Blame for Ransomware (Bloomberg) -- The ransomware gang suspected of the massive Colonial Pipeline breach suggested that an affiliate may have been behind the attack and that it never intended to cause such upheaval.The attack has been tied to a relatively new ransomware group called DarkSide. Like some other ransomware groups, DarkSide offers to sell its malware to others in what is known as “ransomware-as-a-service,” according to the cybersecurity firm Cybereason.In a message posted on the dark web, where DarkSide maintains a site, the group hinted that one of its customers was behind the attack and promised to do a better job vetting them going forward.“We are apolitical. We do not participate in geopolitics,” the message says. “Our goal is to make money and not creating problems for society. From today, we introduce moderation and check each company that our partners want to encrypt to avoid social consequences in the future.”Rob Lee, chief executive officer of the industrial security firm Dragos Inc., said that the distinction between DarkSide and affiliates doesn’t shift blame. “Whether they passed off the keyboard or not I don’t know,” he said. “But they’re responsible either way.” He added that the group may avoid targets that draw federal law enforcement attention in the future, but that most ransomware targets have implications for society.Colonial Pipeline halted all operations on its systems May 7 when it was hit with ransomware and is working to restore operations as investigators assess the damage.The group’s message came after the White House announced over the weekend that it had pulled together an inter-agency task force to tackle the problem. The task force worked through the weekend to address the breach, including exploring options for lessening its impact on the energy supply, according to a White House official.While the inquiry remains in its early stages, some evidence has emerged linking DarkSide to Russia or elsewhere in Eastern Europe.The attackers are known by cybersecurity experts as a “Russian-speaking group that popped up last summer,” according to Dmitri Alperovitch, the chairman of Silverado Policy Accelerator and former chief technology officer of the cybersecurity firm Crowdstrike Holdings Inc.“Like many Russian cyber crime operations they specifically exclude Russian companies from being targeted by their malware,” he added in a statement.RansomsLee said his teams at Dragos have responded to a few incidents involving DarkSide ransomware in recent months, including a U.S. power company that he declined to name. In those cases -- which involve companies smaller than Colonial Pipeline -- DarkSide ransoms were typically in the single-digit millions of dollars, Lee said.Dragos investigators didn’t pinpoint the group’s location. But Lee said that IP and email addresses found in the investigations were based in Russia. In addition, he said, DarkSide doesn’t typically work on systems operating in Russian and other Eastern European languages.The Russian Embassy in Washington didn’t immediately respond to a request for comment. The Kremlin has previously denied responsibility for hacking attacks.The hackers stole almost 100 gigabytes of data from Colonial Pipeline’s networks in just two hours on Thursday, before locking its computers with ransomware and demanding payment, according to two people familiar with the investigation.DarkSide has been identified as the suspected hacking group by two people familiar with the investigation and by Allan Liska, a senior threat analyst at the cybersecurity firm Recorded Future. The group first surfaced in August 2020, according to a blog post by the cybersecurity firm Cybereason.Pipeline SecurityOn Sunday, Colonial Pipeline said it was still developing a plan for restarting the pipeline, which is critical for supplies along the East Coast.The Transportation Security Administration, which is responsible for working to enhance pipeline security, said in a statement it has been in contact with Colonial Pipeline.Senator Angus King, independent from Maine, and Representative Mike Gallagher, Republican from Wisconsin, who are co-chairs of the CyberSpace Solarium Commission, said in a statement the Colonial Pipeline attack underscores the need for more robust cybersecurity measures.“We are disappointed, though unsurprised, to learn of the cyber-attack that shut down 5,500 miles of pipeline,” they said. “This interruption of the distribution of refined gasoline and jet fuel underscores the vulnerability of our national critical infrastructure in cyberspace and the need for effective cybersecurity defenses.”(Writes through previous versions of story. A previous version of the story spelled Allan Liska’s name incorrectly.)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. Business Bloomberg 210510 09h43m Amazon Tees Up Jumbo Bond Sale for More Cash It Doesn’t Need (Bloomberg) -- Amazon.com Inc. is selling bonds to refinance debt and buy back stock, as cheap borrowing costs prove too tempting to resist even for a company with tens of billions of dollars in cash.The online retail giant is issuing debt that may total around $15 billion in as many as eight parts, according to people with knowledge of the matter. The longest portion, a 40-year security, may yield around 115 basis points over Treasuries, said the people, who asked not to be identified because the details are private.Companies have been taking advantage of wide-open bond markets and spreads at three-year lows to score cheap borrowing, even if they don’t need it. With the economy rebounding from the pandemic, U.S. investment-grade firms are increasingly tempted to spend their cash cushions on acquisitions and dividend hikes, or borrow even more.Read more: Corporate Cash Grab Flashes Warning for Bonds: Lisa AbramowiczAmazon is coming off of a record earnings quarter and it provided a sales forecast for the current period that was stronger than analysts’ estimates. Cash, cash equivalents and marketable securities stood at $73 billion at the end of March, near an all-time high.“They can grow into this leverage,” Matt Brill, head of North America investment grade at Invesco Ltd., said on Bloomberg TV Monday. “If you’re able to borrow for reasonably cheap, and then you’re able to get the operating leverage to go with it, it results in a lot of earnings.”A representative for Amazon did not immediately respond to requests for comment.What Bloomberg Intelligence Says“The size of Amazon.com’s balance sheet may grow meaningfully as its weighted-average-cost of debt capital hovers near zero. With abundant cash and growing free cash flow, borrowing may not be needed. Yet the ability to fund organic growth and potentially initiate a large shareholder-return program at historically low costs suggests additional debt over time.”-- Robert Schiffman, senior credit analyst-- Click here to read the researchAmazon has been a fairly infrequent issuer, but it comes in big on those rare occasions. It last tapped the bond market in June 2020, borrowing $10 billion for general corporate purposes. Prior to that, it sold $16 billion of bonds in 2017 to help finance its acquisition of Whole Foods Market Inc.The proceeds of Monday’s offering will be for general corporate purposes, which may also include acquisitions and working capital. The two-year bond will be allocated for eligible green or social projects, which may include clean transportation, renewable energy and sustainable buildings, according to bond documents.Moody’s Investors Service upgraded Amazon one notch to A1, its fifth-highest investment-grade rating, with a stable outlook. While the new debt sale temporarily increases leverage, proceeds are expected to be deployed over time for capital expenditures that fuel growth, which is a long-term positive for credit, said Moody’s analyst Charles O’Shea.Amazon has been on a spending spree since the pandemic began, building new warehouses and cloud-computing data centers across the world to meet surging demand from online shoppers and businesses turning to remote work. Purchases of property and equipment totaled $45 billion in the 12 months ended in March, up from $20 billion during the prior period.The company’s board of directors authorized $5 billion in share buybacks in 2016, but it has never made purchases under that authority.Citigroup Inc., JPMorgan Chase & Co., Morgan Stanley and Wells Fargo & Co. are managing the sale.(Updates with expected deal size in the second paragraph, Moody’s upgrade in the ninth)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. Howell date : 210510 09h31m52s Business Reuters 210510 09h20m ADM to build new soy crushing facility to meet rising food, fuel demand U.S. agricultural commodities trader ADM said on Monday it planned to build a soy-crushing facility and refinery in North Dakota to meet increasing demand for food and renewable fuel. Companies are counting on rising demand for food as restaurants and the travel sector emerge from the COVID-19 pandemic, and for feedstocks to produce biofuels, including renewable diesel. A renewable diesel boom could also have a profound impact on the agricultural sector by increasing demand for oilseeds such as soybeans and canola. World Reuters 210510 09h17m EU's Borell says Iran nuclear talks moving to crucial stage Negotiations in Vienna between world powers and Iran are moving into a crucial stage and the next few weeks will be critical to saving the 2015 nuclear deal, the EU's top diplomat said on Monday. "I am optimistic, there is a window of opportunity that will stay open for a couple of weeks, (until) end of the month," EU foreign affairs chief Josep Borrell, who is chairing the talks in Vienna, told a news conference. "But a lot of work is needed, time is limited and I hope that the negotiations will enter in a phase of nonstop (talks) in Vienna," he said following a meeting of EU foreign ministers. Business Reuters 210510 09h13m Workhorse shares skid as electric truck maker cuts production target A global semiconductor chip shortage has caused delays in manufacturing activity, and major automakers including Ford Motor, Honda Motor, General Motors and Volkswagen were forced to hold back production even as car demand picked up during the COVID-19 pandemic. "Bottlenecks within the global supply chain and offshore shipping delays of commodity raw materials and components as well as our initial stages of production limited our capacity to produce during the first quarter," Workhorse Chief Executive Officer Duane Hughes said. It reported quarterly revenue of $521,000, missing analysts' estimates of $2.6 million by a wide margin, according to Refinitiv IBES. Business Reuters 210510 09h11m U.S. consumers expect near-term inflation bump, medium-term outlook steady Consumers surveyed in April said they expect inflation to rise by a median of 3.4% over the next year - the highest level since September 2013. Expectations for inflation over the next three years were unchanged at 3.1%. Fed officials, including Fed Chair Jerome Powell, say they expect near-term pricing pressures to diminish as supply bottlenecks are resolved and distortions related to sharp price declines at the start of the pandemic last year fade from inflation calculations. Howell date : 210510 09h01m16s Business Reuters 210510 08h41m State AGs urge Facebook to cancel Instagram for younger kids "Use of social media can be detrimental to the health and well-being of children, who are not equipped to navigate the challenges of having a social media account," the officials said in a letter that was also signed by the attorneys general of the District of Columbia and three U.S. territories. "Further, Facebook has historically failed to protect the welfare of children on its platforms." Facebook did not immediately comment. Business Reuters 210510 08h32m Banks told to 'hit the accelerator' in ditching Libor rate Britain's finance watchdog wants banks to speed up a shift to new interest rate benchmarks that replace the Libor rate which is being scrapped after December. The London Interbank Offered Rate or Libor, once dubbed the world's most important number, will be replaced at the end of December with "risk free" rates compiled by central banks. "Across the board I see transition as getting close to completion or a very strong growth trend to getting that done," Edwin Schooling Latter, director of markets at Britain's Financial Conduct Authority, told an ISDA derivatives industry conference. Business Bloomberg 210510 08h26m Inflation Brews for U.S. Producers While Services Wages Pick Up (Bloomberg) -- Inflation continues to brew in America’s industrial heartland as growing materials shortages cascade into record-long delivery times and leave manufacturers struggling to keep pace with an energized economy.As producers attempt to navigate supply-chain pitfalls for the commodities necessary to produce their wares, wage growth is beginning to percolate. A recent Labor Department report showed the largest quarterly increase in worker pay at companies since 2003.This combination of higher labor and materials costs will probably lead to a bigger pickup in consumer inflation at a time when monetary and fiscal policies are conducive to faster economic growth. Colgate-Palmolive Co., food and beverage maker Mondelez International Inc. and Kimberly-Clark Corp. are among a growing number of companies raising prices.While Federal Reserve Chair Jerome Powell says the central bank views the shortages in materials and supply-chain challenges as temporary, companies are saying the constraints will linger, possibly into 2022.The Labor Department releases April inflation data on Wednesday.The following charts highlight the latest developments in materials shortages, delivery times and wages:Longer lead times are one of the clearest indications of the supply-chain challenges that producers face. Wait times of factories for production materials grew to 79 days in April, the longest in records dating back to 1987, according to the latest Institute for Supply Management data. The average delivery time of supplies for maintenance, repair and operations was also the longest in ISM data.Such delays have inflated order backlogs to record levels and kept a lid on a breakout in production growth.The ISM’s monthly reports also provide a clear indication of a growing number of commodities in short supply. In November, purchasing managers listed just 8 materials companies were struggling to get their hands on. Five months later and it’s expanded to 24.While some things like personal protective equipment and gloves have been in short supply for months, others like aluminum, wood pallets and rubber-based products are new additions to the list.Read more:Bond Traders Lift 5-Year Inflation Outlook to Highest Since 2006Inflation Risk Intensifies With Supply Shortages MultiplyingGlobal Inflation Debate Is Heating Up: New Economy DailyShipping Delays, Shortages to Dog Firms All Year: Supply LinesCommodities Jump to Highest Since 2011 on Rebound From VirusMeantime, companies largest cost -- labor -- is accelerating as the lifting of coronavirus restrictions leads to a broader pickup in economic activity.The government’s latest employment cost index, a quarterly measure of compensation, showed wages in the private sector climbed in the first quarter by the most in 18 years.Most economists prefer the ECI because, unlike average hourly earnings in the monthly jobs reports, the worker-pay data aren’t distorted by the compositional changes in employment that have been particularly severe amid the pandemic. The overall ECI, including government workers, registered the biggest increase since 2007.Despite an elevated unemployment rate, many firms have cited troubles finding qualified workers. As a result, some are offering incentives like signing bonuses and boosting wages to attract applicants. Some 28% of small businesses reported raising compensation in a March survey by the National Federation of Independent Business.Increasing vaccinations have also allowed more Americans to head back to their favorite restaurants or begin traveling again. For service providers, that means hiring more workers. That will only increase amid projections for a wave of pent-up demand.But it’s been challenging to attract workers, which may reflect lingering child care obligations and enhanced unemployment benefits. The more generous jobless insurance and two latest rounds of pandemic-relief checks have given some workers the opportunity to be more selective about which job they take.These factors may help explain a big increase in first-quarter wages for service providers. The 1.3% gain was the largest quarterly gain in two decades of record keeping.(Adds link to story on bond market and inflation outlook in Read More section)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. World Reuters 210510 08h25m EU executive says member states should help Italy with migrant relocation European countries need to show solidarity towards Italy after the arrival by boat of hundreds of migrants on the country's southern island of Lampedusa at the weekend, the EU's home affairs commissioner said on Monday. "When we see ... a huge amount of people coming in a very short time there is a need for solidarity towards Italy, and I call on other member states to support with relocation," Ylva Johansson told a news conference. "I know it's more difficult in the pandemic time but I think it's possible to manage and now it's time ... to show solidarity towards Italy and to help in the situation," she said alongside Filippo Grandi, Commissioner of the United Nations High Commissioner for Refugees. Business Yahoo Finance 210510 08h25m Robinhood deserves 'close look' from SEC: Elizabeth Warren Progressive Senator Elizabeth Warren (D-MA) said she supports new SEC rules that would apply to Robinhood. Such regulations should impose disclosure requirements regarding its use of customer data and trades, as well as address the heart of "what business models ought to be permissible" to ensure stabile and transparent markets, Warren said. World Reuters 210510 08h15m Lawyer who sued Chevron over Ecuador pollution faces N.Y. contempt trial A disbarred American lawyer who spent more than two decades battling Chevron Corp over pollution in the Ecuadorian rainforest is set to go on trial on Monday in federal court in Manhattan on criminal contempt charges stemming from a lawsuit against him by the energy company. Opening statements are scheduled in the trial of Steven Donziger on contempt charges for failing to turn over his computer, phones and other electronic devices and refusing to surrender his passport in the civil case brought by Chevron. U.S. District Judge Loretta Preska is presiding over the case, with no jury. Howell date : 210510 08h30m38s Business Yahoo Finance 210510 08h24m Robinhood deserves 'close look' from SEC: Elizabeth Warren Progressive Senator Elizabeth Warren (D-MA) said she supports new SEC rules that would apply to Robinhood. Such regulations should impose disclosure requirements regarding its use of customer data and trades, as well as address the heart of "what business models ought to be permissible" to ensure stabile and transparent markets, Warren said. World Reuters 210510 08h15m Lawyer who sued Chevron over Ecuador pollution faces N.Y. contempt trial A disbarred American lawyer who spent more than two decades battling Chevron Corp over pollution in the Ecuadorian rainforest is set to go on trial on Monday in federal court in Manhattan on criminal contempt charges stemming from a lawsuit against him by the energy company. Opening statements are scheduled in the trial of Steven Donziger on contempt charges for failing to turn over his computer, phones and other electronic devices and refusing to surrender his passport in the civil case brought by Chevron. U.S. District Judge Loretta Preska is presiding over the case, with no jury. Business Bloomberg 210510 08h12m Tech Sends Stocks Down With Inflation Angst Rising: Markets Wrap (Bloomberg) -- Technology shares led U.S. stocks mostly lower as surging commodity prices stoked concern about whether inflation will derail a growth rebound in the world’s largest economy and spoil a record stock rally.The tech-heavy Nasdaq Composite Index declined for the first time in three sessions amid the growing anxiety over inflation, which can threaten longer-horizon revenues typical of the sector. Alphabet and Facebook were downgraded to neutral from buy at Citigroup. The Dow Jones Industrial Average rose to a record high, while the benchmark S&P 500 was little changed. Treasury yields steadied as traders brace for a busy week of auctions.“People have been gravitating to value -- now you can find growth outside of tech,” said Keith Lerner, chief market strategist at Truist Advisory Services. “As inflation expectations continue to move higher, that’s more beneficial for the value side of the trade.”Copper jumped to a record while iron ore futures surged more than 10%, adding to concern about inflation. West Texas Intermediate and Brent both rose as gasoline surged as much as 4.2% to the highest since May 2018 after a cyberattack forced the closure of a key U.S. pipeline. Shares of copper producer Freeport-McMoRan Inc. rose.Meanwhile, the pound climbed to its highest level since February after U.K. elections denied Scotland’s main independence party an outright majority and strengthened the grip of the Conservatives.The run-up in raw materials is intensifying debate ahead of a U.S. CPI report Wednesday that is forecast to show price pressures increased in April. The data will be closely watched by policy makers at the Federal Reserve trying to gauge the speed of the recovery after job growth significantly undershot forecasts.“The strong inflation figures that are expected this week could change the market narrative and raise concerns about the risk that inflation pressures are picking up significantly, even if the real economic recovery will remain far from complete for some time,” according to Credit Agricole SA strategists led by Jean-Francois Paren. “If this is the case, it could weigh on risk appetite in the coming days and weeks.”Read more: Inflation Debate Hits Emerging Markets as Pimco Stands Firm European stocks were little changed, with significant gains in miners offset by a slump in travel shares after the U.K. opened tourist travel to fewer destinations than hoped.The MLIV Question of the Day: How Could Highest CPI in Decade Hit Assets?Here are some key events to watch this week:A range of Fed speakers are due this week, including Chicago Fed President Charles Evans on the economic outlook Monday and U.S. Fed Governor Lael Brainard on Tuesday, among othersChinese inflation data are due TuesdayOPEC monthly Oil Market Report is published with global demand forecasts and production estimates TuesdayU.S. CPI report Wednesday is forecast to show prices continued to increase in AprilBank of England Governor Andrew Bailey speaks WednesdayThese are some of the main moves in markets:StocksThe S&P 500 fell 0.1%, more than any closing loss since May 4 as of 10:07 a.m. New York timeThe Nasdaq 100 fell 1.5%, more than any closing loss since May 4The Dow Jones Industrial Average rose 0.6% to a record highThe Stoxx Europe 600 was little changedThe MSCI World index fell 0%, more than any closing loss since May 4CurrenciesThe Bloomberg Dollar Spot Index fell 0.1%, falling for the fourth straight day, the longest losing streak since April 19The euro was little changed at $1.2163The British pound surged 1%, more than any closing gain since April 19The Japanese yen fell 0.1% to 108.76 per dollarBondsThe yield on 10-year Treasuries declined one basis point to 1.56%Germany’s 10-year yield advanced zero basis points, climbing for the fourth straight day, the longest winning streak since April 29Britain’s 10-year yield advanced two basis points to 0.79%CommoditiesWest Texas Intermediate crude fell 0.6% to $64 a barrelGold futures rose 0.4%, climbing for the fourth straight day, the longest winning streak since Feb. 10For 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. Business Yahoo Finance 210510 08h09m Stock market news live updates: Stocks trade mixed with tech stocks under pressure, Dow sets record high Stocks traded mixed on Monday, with technology stocks under more pressure as investors weighed the risks that higher inflation during the pandemic recovery might weigh on high-growth names. Business Yahoo Finance Video 210510 08h02m Self-driving truck developer Plus to go public via SPAC merger Autonomous trucking company Plus is set to go public with Hennessy Capital via SPAC merger. David Liu, Plus Co-Founder & CEO, joins Yahoo Finance Live to discuss. Business Bloomberg 210510 08h01m Bond Traders Lift 5-Year Inflation Outlook to Highest Since 2006 (Bloomberg) -- Bond market expectations for the expected pace of consumer price inflation over the coming half decade surged on Monday to the highest level since 2006.The five-year breakeven rate, a measure based on the yield gap between inflation-linked debt and non-inflation securities, climbed as much as 3.4 basis points to 2.7327%, eclipsing a high from 2008. The rate on five-year nominal securities was around one basis point lower near 0.76%.Monday’s jump in breakeven rates comes amid a surge in prices for oil products after a cyber attack shut down the largest U.S. fuel pipeline. It adds to a longer-term uptick in inflation expectations that’s been fueled by improving prospects for growth, plans for infrastructure spending and pandemic-related stimulus measures.Gasoline futures traded at a nearly three-year high, bolstering expected inflation accruals for Treasury securities that are tied to the consumer-price index. Shorter-dated Treasury Inflation Protected Securities also got support from the Federal Reserve’s purchase schedule, which Tuesday targets $2.425 billion of TIPS maturing in 1 to 7.5 years.Breakevens got a boost Friday in the wake of a weaker-than-expected U.S. jobs report, with some market observers speculating that the labor-market situation could fuel wage inflation.(Updates throughout.)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. Howell date : 210510 08h00m01s World Reuters 210510 07h45m EU Recovery Fund success could the pave way for a repeat -EU Commission The European Union's huge post-pandemic recovery fund could become a more permanent feature if it is successful in firing up growth and fostering a greener and more digital economy, the European Commission's top economic officials said on Monday. The 27 EU nations made an unprecedented agreement last year to jointly borrow 750 billion euros for a fund to help fight the economic slump caused by COVID-19 and address the challenges of climate change. But many economists seen it as a foot in the door for more regular joint debt issuance by the AAA-rated EU in future and top Commission officials echoed that view before the European Parliament's economic and monetary affairs committee. World Reuters 210510 07h39m Egypt's Eva Pharma to export COVID-19 drug remdesivir to India Egypt's Eva Pharma on Monday signed an agreement to provide India with 300,000 doses of remdesivir, used in the treatment of COVID-19, the company said in a statement. The agreement, which was signed at the Indian embassy in Cairo, is aimed at helping India combat a surge in infections which has overwhelmed the health system and held close to record daily highs on Monday. Eva Pharma, a generic drugmaker established in 1997, said in June 2020 it had received a licence from Gilead Sciences Inc to make remdesivir in Egypt and distribute it in 127 countries. Business Bloomberg 210510 07h35m White House Creates Task Force to Deal With Pipeline Breach (Bloomberg) -- The investigation into a major cyber-attack on the biggest U.S. pipeline continued on Sunday as the White House pulled together an inter-agency task force to tackle the problem.The task force has been working through the weekend to address the breach, including exploring options for lessening its impact on the energy supply, according to a White House official.The victim, Colonial Pipeline, halted all operations on its systems when it was hit with ransomware late Friday and is working to restore operations as investigators assess the damage.Meanwhile, new details emerged about the probable culprit behind the attack, a relatively new ransomware group known as DarkSide. The group posted a message on its dark web page suggesting an affiliate was behind the attack and that it would vet customers in the future to “avoid social consequences.”“We are apolitical. We do not participate in geopolitics,” the message says. “Our goal is to make money and not creating problems for society. From today, we introduce moderation and check each company that our partners want to encrypt to avoid social consequences in the future.”Some ransomware groups, including DarkSide, sell versions of the malware with instructions and customer service, in what is known as “ransomware as a service.”While the inquiry remains in its early stages, some evidence has emerged linking DarkSide to Russia or elsewhere in Eastern Europe.The attackers are known by cybersecurity experts as a “Russian-speaking group that popped up last summer,” according to Dmitri Alperovitch, the chairman of Silverado Policy Accelerator and former chief technology officer of the cybersecurity firm Crowdstrike Holdings Inc.“Like many Russian cyber crime operations they specifically exclude Russian companies from being targeted by their malware,” he added in a statement.RansomsRob Lee, chief executive officer of the industrial security firm Dragos Inc., said his teams have responded to a few incidents involving DarkSide ransomware in recent months, including a U.S. power company that he declined to name. In those cases -- which involve companies smaller than Colonial Pipeline -- DarkSide ransoms were typically in the single-digit millions of dollars, Lee said.Dragos investigators didn’t pinpoint the group’s location. But Lee said that IP and email addresses found in the investigations were based in Russia. In addition, he said, DarkSide doesn’t typically work on systems operating in Russian and other Eastern European languages.The hackers stole almost 100 gigabytes of data from Colonial Pipeline’s networks in just two hours on Thursday, before locking its computers with ransomware and demanding payment, according to two people familiar with the investigation.DarkSide has been identified as the suspected hacking group by two people familiar with the investigation and by Allen Liska, a senior threat analyst at the cybersecurity firm Recorded Future. The group first surfaced in August 2020, according to a blog post by the cybersecurity firm Cybereason.Pipeline SecurityOn Sunday, Colonial Pipeline said it was still developing a plan for restarting the pipeline, which is critical for supplies along the East Coast.The Transportation Security Administration, which is responsible for working to enhance pipeline security, said in a statement it has been in contact with Colonial Pipeline.Senator Angus King, independent from Maine, and Representative Mike Gallagher, Republican from Wisconsin, who are co-chairs of the CyberSpace Solarium Commission, said in a statement the Colonial Pipeline attack underscores the need for more robust cybersecurity measures.“We are disappointed, though unsurprised, to learn of the cyber-attack that shut down 5,500 miles of pipeline,” they said. “This interruption of the distribution of refined gasoline and jet fuel underscores the vulnerability of our national critical infrastructure in cyberspace and the need for effective cybersecurity defenses.”(Updates with new details about hacker group starting 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. Business Bloomberg 210510 07h35m Stocks Are Mixed as Commodities Boom Gives Pause: Markets Wrap (Bloomberg) -- U.S. stocks were mixed as surging commodity prices stoked concern about whether inflation will derail a growth rebound in the world’s largest economy and spoil a record stock rally.The tech-heavy Nasdaq Composite Index declined amid the prospect of inflation, which can threaten longer-horizon revenues typical of the sector. The Dow Jones Industrial Average posted a modest gain, with the benchmark S&P 500 was little changed. Treasury yields steadied as traders brace for a busy week of auctions.Copper jumped to a record while iron ore futures surged more than 10%, adding to concern about inflation. West Texas Intermediate and Brent both rose as gasoline surged as much as 4.2% to the highest since May 2018 after a cyberattack forced the closure of a key U.S. pipeline. Shares of copper producer Freeport-McMoRan Inc. rose.Meanwhile, the pound climbed to its highest level since February after U.K. elections denied Scotland’s main independence party an outright majority and strengthened the grip of the Conservatives.The run-up in raw materials is intensifying debate ahead of a U.S. CPI report Wednesday that is forecast to show price pressures increased in April. The data will be closely watched by policy makers at the Federal Reserve trying to gauge the speed of the recovery after job growth significantly undershot forecasts.“The strong inflation figures that are expected this week could change the market narrative and raise concerns about the risk that inflation pressures are picking up significantly, even if the real economic recovery will remain far from complete for some time,” according to Credit Agricole SA strategists led by Jean-Francois Paren. “If this is the case, it could weigh on risk appetite in the coming days and weeks.”Read more: Inflation Debate Hits Emerging Markets as Pimco Stands Firm European stocks were little changed, with significant gains in miners offset by a slump in travel shares after the U.K. opened tourist travel to fewer destinations than hoped.The MLIV Question of the Day: How Could Highest CPI in Decade Hit Assets?Here are some key events to watch this week:A range of Fed speakers are due this week, including Chicago Fed President Charles Evans on the economic outlook Monday and U.S. Fed Governor Lael Brainard on Tuesday, among othersChinese inflation data are due TuesdayOPEC monthly Oil Market Report is published with global demand forecasts and production estimates TuesdayU.S. CPI report Wednesday is forecast to show prices continued to increase in AprilBank of England Governor Andrew Bailey speaks WednesdayThese are some of the main moves in markets:StocksThe S&P 500 rose 0% to a record high as of 9:30 a.m. New York timeThe Nasdaq 100 fell 0.6%, more than any closing loss since May 4The Dow Jones Industrial Average rose 0.4% to a record highThe Stoxx Europe 600 rose 0% to a record highThe MSCI World index rose 0.2% to a record highCurrenciesThe Bloomberg Dollar Spot Index fell 0.2%, falling for the fourth straight day, the longest losing streak since April 19The euro rose 0.1% to the highest since Feb. 25The British pound surged 1.1%, more than any closing gain since April 19The Japanese yen was little changed at 108.69 per dollarBondsThe yield on 10-year Treasuries was little changed at 1.57%Germany’s 10-year yield advanced zero basis points, climbing for the fourth straight day, the longest winning streak since April 29Britain’s 10-year yield advanced two basis points to 0.79%CommoditiesWest Texas Intermediate crude rose 0.8% to $65 a barrelGold futures rose 0.8%, climbing for the fourth straight day, the longest winning streak since Feb. 10For 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. Business Yahoo Finance Video 210510 07h34m Why investors are showing 'a bit more caution' as states reopen Yahoo Finance’s Julie Hyman, Myles Udland, and Brian Sozzi speak with TD Ameritrade Chief Market Strategist JJ Kinahan about the Colonial Pipeline outage, recent economic data, and market outlook as the world begins to reopen. Business Yahoo Finance 210510 07h33m Stock market news live updates: Stocks trade mixed with tech stocks under pressure, Dow sets record high Stocks traded mixed on Monday, with technology stocks under more pressure as investors weighed the risks that higher inflation during the pandemic recovery might weigh on high-growth names. Business Yahoo Finance 210510 07h33m Celebrity chef Andrew Zimmern: $28.6B restaurant relief will get ‘eaten up’ right away Andrew Zimmern, a James Beard award-winning chef, says that $28.6 billion is not sufficient to help the ailing restaurant industry recover. Howell date : 210509 21h05m52s Business Reuters 210509 21h01m Australia's Star makes $7 billion play for Crown, taking on private equity giants Australian casino operator Star Entertainment Group on Monday proposed an all-stock buyout of larger rival Crown Resorts Ltd that it valued at A$9 billion ($7 billion), vying with two private equity giants for control of the troubled target. No. 2 casino player Star said it was proposing to give 2.68 of its shares for each share of Crown, and estimated Star shares would be worth A$5 each if the deal went ahead - up from A$3.91 at their last close - implying a A$9 billion sale price. Just minutes earlier, buyout specialist Blackstone Group upped an all-cash indicative offer to A$8.4 billion, Crown said. Business Bloomberg 210509 20h57m Oil Rises With Gasoline as Cyberattack Knocks Out U.S. Pipeline (Bloomberg) -- Crude oil and gasoline rose at the start of the week after a cyberattack put the largest oil-products pipeline in the U.S. out of action.West Texas Intermediate and Brent both advanced, while gasoline in New York surged as much as 4.2% to the highest since May 2018, before paring gains. Colonial Pipeline Co., a supplier of gasoline, diesel and jet fuel to the eastern U.S., was forced to halt operations on late Friday, and said Sunday that it is still working toward a restart of operations along the key artery.A rush for replacement fuels could emerge on the East Coast, leading traders to source cargoes from Europe or even Asia. In a reflection of the incident’s gravity, the White House has formed a task force to probe the pipeline breach.“For now, the market is giving the company the benefit of the doubt that this will be resolved in short order,” said John Kilduff, founding partner at Again Capital LLC. Still, “the pain at the pump will go national, if New York Harbor and other East Coast supply points see supplies dwindle,” he warned.Oil’s value has gained by a about a third this year as the rapid roll-out of coronavirus vaccines across the U.S. and Europe prompted the lifting of social-distancing measures and travel restrictions. Consumption of fuels including gasoline and jet fuel has been on the mend as millions of people return to work, boosting personal mobility and the use of cars.The Colonial network is the main source of gasoline, diesel and jet fuel for the East Coast, with capacity of about 2.5 million barrels a day on its system from Houston as far as North Carolina, and another 900,000 barrels to New York. Gasoline stockpiles have hovered near a four-month low since March, while diesel inventories are just above the five-year average for this time of year.The shutdown is likely to cause fuel pile-ups, as well as shortages, along different parts of the extended supply chain, and there’s concern that some refineries may be forced to reduce processing rates.“If it is prolonged you would expect that refiners would need to start reducing run rates,” said Warren Patterson, head of commodities strategy at ING Group. “Gasoline stocks on a national level are fairly low, but if you look at the U.S. Gulf Coast, they are above the five-year average.”Traders and shippers are seeking vessels to deliver gasoline that would have otherwise gone via the Colonial system, according to people familiar with the matter. Others are securing tankers to store gasoline in the Gulf, they said.Amid the disruption, there could also be calls to suspend Jones Act, according to Again Capital’s Kilduff. The law requires goods shipped between U.S. ports to be moved on vessels built, owned, and operated by the nation’s citizens or permanent residents.Even before Colonial’s system was forced offline, gasoline had rebounded strongly this year on rising demand from motorists. U.S. refiners were ramping up output for summer demand, with the biggest spike expected at the start of the Memorial Day holiday on May 31, a three-day weekend for most Americans.The hackers who caused Colonial Pipeline to shut down began their blitz last Thursday, stealing a large amount of data before locking computers with ransomware and demanding payment, people familiar with the matter said. The attack appeared to use a ransomware group called DarkSide, according to Allan Liska, senior threat analyst at cybersecurity firm Recorded Future.Companies behind pipelines are vulnerable to cyberattacks due to the use of more so-called smart applications. Moving away from manual controls raises the connectedness of networks, but leaves them susceptible to assault.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. World Bloomberg 210509 20h53m Delhi Extends Lockdown; BioNTech’s China Venture: Virus Update (Bloomberg) -- India’s capital New Delhi extended its lockdown for another week and adopted stricter controls. The country recorded more than 4,000 coronavirus deaths for a second consecutive day Sunday.Shanghai Fosun Pharmaceutical Group Co. will set up a joint venture with BioNTech SE to produce the latter’s mRNA Covid-19 vaccine in China, a sign that the highly effective inoculation is moving closer to getting approved for general use in the country.U.S. deaths from Covid-19 have been undercounted, President Joe Biden’s top medical adviser said, with the nationwide toll approaching 582,000. New cases in the U.S. dropped over the past week to the slowest pace since the end of September. Hospitalizations dipped to a seven-month low.Key DevelopmentsGlobal Tracker: Cases total 157.9 million; deaths exceed 3.28 millionVaccine Tracker: More than 1.29 billion doses have been givenCDC limits reviews of vaccinated but infected, spurring concernsUnused shots pile up as mistrust blights Hong Kong vaccine driveTens of millions plunge into poverty in Covid-ravaged IndiaTokyo gives a taste of what Covid era Olympic games will be likeSubscribe to a daily update on the virus from Bloomberg’s Prognosis team here. Click CVID on the terminal for global data on cases and deaths.IOC President to Visit Japan (10:47 a.m. HK)The International Olympic Committee is making arrangements for President Thomas Bach to travel to Japan in June, FNN reported, without saying where it got the information. Bach’s visit scheduled for May 17 has been canceled as a result of the extension of a state emergency covering Tokyo and other areas where the coronavirus outbreak is spreading.BioNTech’s China Venture (9:01 a.m. HK)Shanghai Fosun said on Sunday it will set up a 50:50 joint venture with BioNTech to produce mRNA Covid-19 vaccine in China. Both companies have committed up to $100 million investment through cash, production facilities and technologies. Fosun will set up a production facility capable of making 1 billion doses of the vaccine, according to the company’s filing to the Shanghai Stock Exchange.The Shanghai-based drug company struck a deal in March 2020 to license and develop the Covid shot in the Greater China region that includes Hong Kong, Macau and Taiwan, while Pfizer Inc. later agreed to co-develop and commercialize it in the rest of the world. The vaccine is now being reviewed by Chinese drug regulator. Fosun Pharmaceutical shares rose as much as 23% in Hong Kong.Vietnam PM Issues Warning (8:58 a.m. HK)Vietnam’s Prime Minister Pham Minh Chinh warned the nation could face political instability if the current coronavirus outbreak spreads nationwide, according to a post on the government’s website. Vietnam reported 78 new domestic virus patients this morning, and 411 since the latest outbreak began April 27. Hanoi and Ho Chi Minh City have shut most schools. In both the capital and Ho Chi Minh City, cinemas, gyms and spas have been shuttered. Other areas of the nation have put in place similar restrictions.China Airlines to Reduce Cargo Flights (8:15 a.m. HK)The Taiwanese carrier will temporarily reduce cargo flights to deal with pilot shortage after one-sixth of its pilots got sidelined due to quarantine measures, the Central News Agency reported. The airline will cut its cargo flights globally and half of its cargo flight services to the U.S., Apple Daily reported on Saturday, without saying where it got the information. Around 200 pilots are unable to fly as a precaution after 12 pilots were confirmed to have Covid-19 since April 20.Virus Causing Spread of Fungal Infection (8:05 a.m. HK)Coronavirus is causing the spread of a deadly fungal infection called mucormycosis across the western state of Maharashtra, the Times of India reported. Hospitals in Mumbai, which are treating dozens of such patients, are facing a shortage of anti-fungal medicines. The infection can also lead to blindness. The fungal infection usually sets in two to three weeks after treatment for covid and was mostly found in patients who already suffer from diabetes and then got affected by Covid-19.Bolsonaro Leads Mother’s Day Parade Maskless (7:02 a.m. HK)A maskless President Jair Bolsonaro led a Mother’s Day motorcycle parade on Sunday as Brazil added almost 39,000 Covid-19 cases. Deaths increased by 1,024 to 422,340 in the latest daily count, according to Health Ministry data.The ministry will begin distributing 1.12 million doses of the Pfizer/BioNTech vaccine Monday. The latest batch brings Brazil’s distribution to about 75.4 million doses and more than 46.8 million shots administered.England Set to Allow Indoor Mixing (5:56 p.m. NY)Prime Minister Boris Johnson confirmed that the next stage of lockdown easing in England will go ahead on May 17 as planned, as the Covid-19 infection rate reaches its lowest level since September.People will be allowed to stay overnight with friends or relations, and indoor hospitality will be reopened. The government said last week limited international travel will also resume then.U.S. Hospitalizations Reach Seven-Month Low (3:15 p.m. NY)The share of U.S. hospital beds occupied by Covid-19 patients fell to 5.37%, the lowest since Oct. 5, according to the U.S. Department of Health & Human Services.Michigan had the biggest percentage of beds occupied by Covid patients at 13.3% followed by Maryland at 10.8%, according to the latest HHS data, which reflect the situation on Thursday. Florida had 3,504 hospitalized Covid patients, the most of any state, followed by Texas with 3,080.L.A. to Offer Appointment-Free Vaccinations (2:30 p.m. NY)Los Angeles will offer appointment-free vaccinations at all sites starting Monday, Mayor Eric Garcetti said, in an effort to “knock down barriers to vaccine access.” The city is expecting to administer more than a quarter million shots for a second straight week.Iran Sets Vaccination Goal (12:57 p.m. NY)President Hassan Rouhani said some 13 million people in Iran, about 15% of the population, will be vaccinated against the coronavirus by July 22, as the country tries to combat the Middle East’s worst outbreak.Rouhani said he expects all people in high-risk groups to receive at least their first dose by that date, the state-run Islamic Republic News Agency reported, adding that two domestically developed shots will be ready for mass use by June.Third of U.K. Adults Fully Vaccinated (12:34 p.m.)More than a third of the United Kingdom’s adult population is now fully vaccinated against Covid-19, and two-thirds of adults have received a first shot. The U.K. has now administered more than 53 million doses of coronavirus vaccines. The success of the vaccine rollout, coupled with strict lockdown measures that are now being eased, has led to a plunge in new cases and deaths. Health authorities on Sunday reported just two daily deaths from the virus in all of the U.K.Spain Celebrates (11:03 a.m. NY)Spaniards broke out in spontaneous celebration at midnight, after a national state of emergency that included curfews from 11 p.m. to 6 a.m. in most of Spain ended at midnight. In the capital of Madrid alone, the police intervened in more than 450 incidents, the Associated Press reported, as hundreds of people, mostly youth, took to the main plazas and streets in several large cities.“Freedom doesn’t involve holding booze parties in the street because street drinking is not allowed in the city of Madrid,” Mayor José Luis Martínez-Almeida said Sunday.Restrictions were eased on restaurants, travel between regions, and on social gatherings.Fauci Says U.S. Deaths Undercounted (10 a.m. NY)There’s “no doubt” the U.S. has undercounted its number of deaths from Covid-19, which now stand at over 581,000, President Joe Biden’s top medical adviser said.But Anthony Fauci, director of the National Institute of Allergy and Infectious Diseases, said on NBC’s “Meet the Press” that a University of Washington analysis published May 6 that the true toll is probably over 900,000 is “a bit more than I would have thought.”U.S. Adds Fewer Than 35,000 Cases (8 a.m. NY)The U.S. added fewer than 35,000 cases on Saturday, sending the seven-day rolling average of new infections to the lowest since the end of September. While reporting often lags on weekends, the data collected by Johns Hopkins University and Bloomberg is the latest sign that the pandemic in America is easing.Another 625 people nationwide died of Covid-19, bringing the toll to more than 581,000 since the outbreak began. Detroit and New York City had the most deaths per capita among major metro areas in the week through Wednesday, according to a Centers for Disease Control and Prevention report dated May 6.EU Hasn’t Renewed Astra Contract (7:15 a.m. NY)The European Union hasn’t renewed its contract for vaccines from AstraZeneca Plc, Industry Commissioner Thierry Breton said Sunday on France Inter radio.The bloc started legal proceedings against the company over shortfalls last month. Breton also said the region is pushing for the establishment of vaccine factories in Africa, which is just as important as the question of intellectual property protections covering the technology.India Death Toll Stays Above 4,000 (4:20 p.m. HK)India reported more than 4,000 Covid-19 deaths for a second day, as the nation battled the world’s worst outbreak of the virus. The country on Sunday recorded 4,092 fatalities and found 403,736 new cases, with the capital New Delhi and other big cities continuing to report surging infections.The lockdown in India’s capital will be extended until May 17, New Delhi Chief Minister Arvind Kejriwal said.The restrictions had been set to end Monday after being extended several times already.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. Business Bloomberg 210509 20h41m Crown Bidding War Intensifies as Star Proposes Casino Merger (Bloomberg) -- A bidding war erupted for Crown Resorts Ltd. with rival casino operator Star Entertainment Group Ltd. proposing an all-stock merger and Blackstone Group Inc. sweetening its cash takeover bid.Star said its offer would create an Australian gaming and hospitality giant with a market value of A$12 billion ($9.4 billion) as it unveiled plans to cut costs, as well as sell and lease back property, at the enlarged group. Minutes earlier, U.S. private-equity firm Blackstone raised its offer for Crown by 4% to A$8.36 billion.Crown said it’s assessing both proposals.Bidders are circling Crown while it’s cornered by regulatory investigations. A damning inquiry in February found the company was unfit to run its new Sydney casino following years of money laundering at properties in Perth and Melbourne, which are now the subject of fresh probes.The competing proposals now offer Crown’s largest shareholder, billionaire James Packer, differing paths forward after he failed at least twice to sell his stake.Packer, whose influence on Crown was criticized in the regulatory report in February, has increasingly stepped back from corporate life to fight a mental health battle. The Blackstone bid would give him a potential clean break. Star’s proposal offers the billionaire the chance to swap at least some of his Crown stake for a smaller share in the merged entity.Stock GainsShares of Star leaped 8.2% to A$4.23 at 12:11 p.m. in Sydney. Crown jumped 7.3% to A$13, valuing the Melbourne-based company at A$8.8 billion.Crown Holders Spoilt For Choice After Wild Monday: M&A SnapshotThe board of Crown, with the outcome of the Perth and Melbourne inquiries hanging over the company, must now weigh up the instant reward of Blackstone’s cash offer with the potential long-term benefits of a union with Star.Star’s proposal “creates a long-term opportunity for the capital market which would not exist if Crown gets bought by an American private equity firm,” Star Chief Executive Officer Matt Bekier said in an interview after the proposal was announced. “We have a management team that is in good standing with all the regulators in all our jurisdictions so we think we can pull this off with relatively low risk.”Zero PremiumStar announced a nil-premium offer of 2.68 of its shares for each Crown share -- the equivalent of A$10.48 a share based on Star’s closing price Friday. Star’s bid also includes a cash alternative of A$12.50 per share for as much as 25% of Crown’s issued shares. Assuming the cash component is fully taken up, the offer equates to a value of A$7.44 billion, according to Bloomberg calculations.That’s way below Crown’s market value. But once savings and benefits from the merger are included, Star said its proposal implies a potential value of A$14 per Crown share.Star said it can deliver between A$150 million and A$200 million in annual cost savings from areas such as head office, marketing and technology, that would have a combined net value of A$2 billion.The company also plans a sale and leaseback of the enlarged group’s property portfolio. According to a Star presentation detailing the company’s proposal, the combined group’s key casino properties could sit in an unlisted fund that’s half owned by institutional wholesale investors.(Updates with comments Star’s CEO in the ninth 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. Business Bloomberg 210509 20h33m Archegos Rout Helps China Hedge Fund to 120% Gain This Year (Bloomberg) -- A China-focused hedge fund led by a 30-year-old who started trading as a teenager returned 120% in the first quarter, thanks in part to the unraveling of Bill Hwang’s Archegos Capital Management.Bullish bets on a pair of Chinese fintech consumer lending platforms accounted for more than half of the quarterly return for Henry Liang’s Seahawk China Dynamic Fund, he said in a telephone interview. Additional gains came from wagers against a “bubble basket” of over-hyped new-economy companies, including GSX Techedu Inc., the Chinese after-school online tutoring firm later caught up in the Archegos-induced selloff.The profits more than doubled the fund’s assets to nearly $700 million. Liang has given back $120 million to investors this year to manage the pace of asset growth and maintain performance. A Bloomberg index tracking hedge funds of all strategies advanced 4.6% in the first quarter. A gauge of hedge funds focused on Greater China rose 1.5%, according to Eurekahedge Pte.Unburdened by the scrutiny of more risk-averse institutional investors, Seahawk was able to make concentrated bets for its ultra-rich mainland Chinese and Hong Kong clients, including Liang’s long-time followers since his university days. His approach highlights how foreign asset managers with lower risk appetites have been struggling to woo wealthy Chinese customers, who are willing to stomach short-term losses for outsized gains.Read more on the struggles of global asset managers in ChinaSeahawk began to buy shares in FinVolution Group in the third quarter of 2019 and 360 DigiTech Inc. in the first quarter of 2020, adding more throughout the year when their stock prices were languishing.Liang is betting that the Shanghai-based duo has an edge in risk management that will help them emerge as winners from the multi-year Chinese crackdown on internet lending.The regulatory tightening has resulted in the demise of online peer-to-peer lending platforms that once numbered 5,000, according to data from the China Banking and Insurance Regulatory Commission. FinVolution and 360 DigiTech operate in a different space, using technology to connect borrowers and financial institutions.Their share prices have at least doubled this year. Seahawk is now among FinVolution’s largest shareholders with a 13.5% stake at the end of February, according to data compiled by Bloomberg.Bubble ‘Stretched’In February, Seahawk dramatically boosted bearish bets against the “bubble basket,” including electric vehicle makers Tesla Inc. and Nio Inc., GSX Techedu, fintech firm OneConnect Financial Technology Co., toymaker Pop Mart International Group Ltd. and short-video platform operator Kuaishou Technology, Liang said.The “new-economy bubble has been stretched to an unprecedented level, where valuation of quite a few internet and consumer stocks can hardly be justified even with the wildest 10-year assumptions,” he wrote in his first-quarter newsletter.The collapse of Archegos led its prime brokers to dump shares including GSX Techedu. That contributed to the stock’s more than 80% tumble from this year’s peak, accelerating gains for Liang.Seahawk has largely covered the new-economy shorts while barely trimming its bullish wagers on FinVolution and 360 DigiTech, even when the two fintech firms have fallen at least 30% from this year’s peaks in mid-March.The Chinese antitrust clampdowns could benefit smaller players, especially fintech giant Ant Group Co.’s strongest second-tier rivals that aren’t part of larger platforms, Liang said.His optimism isn’t shared by everyone. Jefferies Financial Group Inc. analysts expect growth of second-tier fintech platforms to slow now that China’s policy makers are seeking to curb household leverage rather than encourage consumer borrowing. China now also requires platforms to obtain licenses to collect data for personal credit reports that they provide to banks for higher fees, and new rules limit behavioral data collection, the analysts wrote in a note.Pocket MoneyA Guangzhou native who is now based in Hong Kong, Liang began to trade stocks at 13, with pocket money from his parents. In his final year in high school, he began to manage assets for clients who found him through word of mouth. By the time he shut those accounts to join a Goldman Sachs Group Inc. long-short equity hedge fund as an analyst, he was overseeing $9 million with a nearly 25% annualized return over six years, he said.He started Seahawk in October 2017. Marketed as a macro fund, it has the flexibility to invest in all asset classes ranging from stocks and credit to currencies and derivatives. Liang sees the vanishing breed of bold investors including George Soros, Stanley Druckenmiller and Julian Robertson as his role models. When investors dumped the high-yield dollar-denominated bonds of Chinese property companies during the March 2020 market correction, he swooped in to buy, pocketing a gain of almost 20% that month.It hasn’t all been smooth sailing. The fund lost 11% in 2019, according to a newsletter.“We are naturally very contrarian,” Liang said. “We are embracing volatility.”(Updates with performance of China-focused hedge funds 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. Business Bloomberg 210509 20h27m China’s Much-Hyped Digital Yuan Fails to Impress Early Users (Bloomberg) -- As China moves closer to rolling out the world’s first major sovereign digital currency, speculation over the global implications has reached a fever pitch.Historian Niall Ferguson is calling the digital yuan a “potentially fatal challenge” to decades of American financial hegemony. Franklin Templeton’s Michael Hasenstab says it could undermine the dollar’s role as the world’s reserve currency. Joe Biden’s White House is studying the potential threat to U.S. interests.Yet talk to people who’ve actually used the digital yuan in China, and you’re more likely to get a different response: shrugs of indifference.In Shenzhen, the high-tech metropolis that just extended China’s largest digital yuan trial, participants interviewed by Bloomberg showed little interest in switching from mobile payment systems run by Ant Group Co. and Tencent Holdings Ltd. that have already replaced cash in much of the country. Some balked at the possibility a digital yuan might give authorities easier access to real-time data on their financial lives.“I’m not at all excited,” said Patricia Chen, a 36-year-old who works in the telecom industry and was one of the more than 500,000 people in Shenzhen eligible to take part in the trial.While none of the seven participants who spoke to Bloomberg professed insight into the digital yuan’s future role in global foreign exchange markets, their lukewarm response underscores the challenge facing President Xi Jinping’s government as it lays the groundwork for adoption at home and abroad.Even if authorities ultimately convince -- or compel -- citizens to embrace the digital yuan, it’s far from clear they can do the same with international consumers and businesses already wary of China’s capital controls, Communist Party-dominated legal system and state surveillance apparatus.Those are just some of the concerns that have capped the yuan’s share of global payments at around 3%, well below levels commensurate with China’s contribution to world trade and economic output. A digital version of the currency is unlikely to boost its share by much more than 1 percentage point, according to Zennon Kapron, managing director of Singapore-based consulting firm Kapronasia.“The global impact will be very small” barring structural changes to China’s economy and financial system, said Kapron, author of “Chomping at the Bitcoin: The Past, Present and Future of Bitcoin in China.”Many China watchers suspect Xi has high hopes for international use of the digital yuan as he tries to lessen his country’s reliance on the U.S.-led global financial system. But so far at least, Chinese policy makers have given mixed signals about their ambitions in public.Zhu Jun, head of the central bank’s international department, said in an article last month that China faces an “important window” to promote global use of yuan as U.S.-China decoupling threatens to spread to finance from trade, technology and investment. She said China “should take advantage of the early progress” in the digital yuan’s development to explore potential areas for internationalization.Meanwhile, People’s Bank of China Deputy Governor Li Bo told the Boao forum last month that the digital yuan, also known as the e-CNY, is aimed at domestic use and isn’t meant to replace the dollar.The project was started in 2014 by then-PBOC chief Zhou Xiaochuan, a longtime proponent of creating a new international reserve currency as an alternate to the dollar. Zhou saw the e-CNY as one way to fend off potential threats from digital currencies like Bitcoin or Facebook’s Diem (formerly called Libra). Chinese regulators, who banned cryptocurrency exchanges in 2017, have also said the digital yuan will help combat money laundering and increase financial inclusion.Other use cases are more controversial. The reams of data produced by digital yuan transactions could give China’s central bank valuable real-time insights into the world’s second-largest economy; they might also be used by security services to monitor political dissidents or international businesses that compete with state-owned Chinese enterprises.A programmable version of the currency allowing for expiration dates on stimulus payments could encourage spending during economic downturns -- or enable regulators to instantly turn off the e-wallet of anyone who runs afoul of Beijing. While global adoption of e-CNY could make cross-border payments cheaper and faster, it might also help the Communist Party weaken the impact of international sanctions. The PBOC has so far offered few details about how the e-CNY might be used overseas, other than to say it’s conducting cross-border tests with Hong Kong’s de-facto central bank.The domestic trial that began in Shenzhen last month was by far China’s most ambitious to date. Participants who downloaded the government’s e-wallet app on their phones and linked it to their bank accounts could transfer as much as 10,000 yuan ($1,548) into e-CNY at a one-for-one rate. Similar to Ant’s Alipay and Tencent’s WeChat Pay, transfers using digital yuan take place almost instantly via QR code. They can also be conducted with near-field communication technology in the absence of an internet connection.Using the digital yuan was easy enough for Vera Lin, a 25-year-old who works at a financial company in Shenzhen. At the same time, she said, incentives for making a permanent shift to e-CNY are lacking given China’s existing digital payment options are reliable and work seamlessly with other app-based services from social media to e-commerce platforms.Even discounts of as much as 10% from merchants participating in the digital yuan trial weren’t enough to win Lin over. Platforms operated by companies like Ant routinely offer discounts on everything from ride-hailing services to grocery delivery.Privacy concerns were among the turnoffs for Jan Chen, a 33-year-old civil servant. It’s “a little scary” that authorities might be able to trace every payment, she said. In a country where compliance with tax laws is often patchy, some merchants may also be wary of their transactions flowing directly into a government database.The PBOC has tried to quell those concerns by making the digital yuan free to use for merchants –- which currently pay service fees of around 0.6% for transactions on Alipay and WePay -- and by pledging that most payments will remain anonymous.The central bank won’t directly know the identity of users, though the government would be able to get that information from financial institutions in cases of suspected illegal activity, Mu Changchun, director of the central bank’s Digital Currency Research Institute, said in March.If the digital yuan fails to gain traction over the long term, China’s government might turn to coercion, according to Kapron. It has already started taking steps to assert more control over the data gathered by financial and tech companies including Ant and Tencent. “At the end of the day, I think it’s going to have to be the government saying: ‘You have to use this,’” Kapron said.Even if policy makers don’t go that far, they may ask merchants and Internet platform operators to add the digital yuan to their suite of payment options, according to Francis Chan, a senior analyst with Bloomberg Intelligence. Ant-backed MYbank was listed as an option on the e-CNY app as of Monday, though it was unclear if users could link their Alipay wallets. Tencent-backed WeBank was also listed as an option but was grayed out and unavailable.Chan and fellow BI analyst Sharnie Wong predict the digital yuan will be in use nationwide before the Beijing Olympics in 2022 and comprise 9% of China’s domestic digital payments by 2025. That’s no small change, but still a long way from challenging the dominance of Alipay and WePay, which are estimated to have a combined market share of more than 90%.Persuading the world to embrace the digital yuan will be even harder. “The e-CNY addresses just one layer of it, the payment infrastructure part,” said Michael Ho, principal of financial services at Oliver Wyman. “But just tacking on this one layer will not solve the entire puzzle.”(Adds PBOC official’s comments in 11th paragraph and MYbank linking to e-CNY app in 23rd 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. World Bloomberg 210509 20h22m Pound Rises After SNP Misses Out on Outright Majority in Polls (Bloomberg) -- The pound rose after Prime Minister Boris Johnson emerged stronger from local U.K. elections, while the main party pushing for independence in Scotland failed to win an outright majority.Sterling gained as much as 0.4% to 1.4044 against the dollar during Asia trading Monday, as investors covered short positions and Japanese banks bought the currency, traders said.The U.K. prime minister had gone into the elections on the back foot, but emerged stronger after his party tightened their grip in northern England. While the Scottish National Party wants to press for another referendum on independence, it fell one seat short of an outright majority after the election.“Calls for an independence referendum certainly won’t go away, but the FX market doesn’t seem to be reading the election outcome as heralding fresh immediate political risks for the pound,” said Richard Franulovich, head of foreign-exchange strategy at Westpac Banking Corp. in Sydney.The U.K. government has so far refused to grant Scotland permission to have a repeat of the 2014 referendum, throwing Johnson and SNP leader Nicola Sturgeon into what could be a vicious and lengthy showdown over whether a new vote should be held.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. Howell date : 210509 19h05m15s Business Bloomberg 210509 18h43m Rupee Gains Under Siege as Health Crisis Fuels Lockdown Fears (Bloomberg) -- The Indian rupee’s recent gains could be short-lived as pressure grows on Prime Minister Narendra Modi’s administration to announce a nationwide lockdown to curb a deadly wave of coronavirus infections.The prospect of stricter curbs is reviving memories of last year when similar measures dragged India’s economy into its worst contraction in four decades. It’s also threatening to weaken the rupee, which is among Asia’s top three performers this month, thanks to heavy foreign inflows for initial public offerings, a dovish Federal Reserve and a glut of dollars at state-run banks.“The recovery in the rupee in recent weeks reflects the softer dollar and weaker import demand as restrictions were imposed,” Khoon Goh, head of Asia research at Australia & New Zealand Banking Group Ltd. “If a nationwide lockdown were to be implemented, we could see some near-termweakness in the rupee.”A technical gauge is also signaling that the rupee’s advance maybe losing momentum. The dollar-rupee’s slow stochastics, a momentum indicator, shows that the currency pair is in oversold territory. The rupee rose 0.8% last week to 73.51 per dollar.Goh forecasts the rupee to fall to 76 per dollar in the second quarter but expects further declines to be limited by a reduction in imports.India’s capital extended its lockdown for another week while the nation reported 403,736 new virus cases on Sunday, and more than 4,000 Covid-19 deaths for a second day. Modi’s political allies, top business leaders and even U.S. President Joe Biden’s chief medical adviser have said lockdowns could be the only way to stem the world’s worst virus outbreak.Analysts have already trimmed India’s growth forecasts as individual states tightened restrictions, but a nationwide curb could deal a much larger blow to the economy. The Reserve Bank of India stepped in last week to provide loan relief and pledged to inject 500 billion rupees ($6.8 billion) of liquidity to support growth.Inflation data on Wednesday is expected to provide more economic cues. Consumer prices are forecast to have climbed 4.1% in April from a year earlier, the slowest pace since January, to stay within the RBI’s 2%-6% target range, which would provide room for more support measures. However, signs of more quantitative easing would be bad news for the rupee.The currency could remain supported as expectations of a surge in IPOs this year keeps inflows coming, although its near-term trend points to a downside as virus cases show no sign of slowing.Below are the key Asian economic data and events due this week:Monday, May 10: Australia business confidence and retail salesTuesday, May 11: New Zealand retail card spending, Japan household spending, China CPI and PPI, Philippine 1Q GDP, Malaysia 1Q GDP and BoP current account balanceWednesday, May 12: India CPI and industrial productionThursday, May 13: Japan BoP current account balance, BSP rate decisionFriday, May 14: New Zealand businessNZ manufacturing PMIFor 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. Business Bloomberg 210509 18h40m Dogecoin Goes on Wild Ride as Musk Calls It a ‘Hustle’ (Bloomberg) -- Dogecoin investors had a wild ride this weekend.After hitting a record on Saturday ahead of Elon Musk’s appearance on “Saturday Night Live,” the digital currency began to fall hours before the show began and continued to drop as he delivered his opening monologue.A SpaceX deal Sunday gave the digital currency a short-lived boost. It traded at 55.5 cents as of 8:30 p.m. in New York, down 15% over a 24-hour period, according to CoinGecko, with a trading range of 43.2 cents to 66.7 cents in the past one day.In the agreement, Musk’s commercial rocket company will launch a mission to the Moon in 2022 with a so-called cubesat -- a mini satellite used for space research -- from Geometric Energy Corp. that’s been paid for entirely in Dogecoin.The trading swings began on Saturday as Dogecoin traders around the world were organizing watch parties for the broadcast featuring its most prominent supporter. Following an initial slump, the digital currency bounced back briefly toward the end of the show, after the billionaire called it a “hustle” in the “Weekend Update” segment.In the skit, Musk jumped into the character of a bow-tied, bespectacled financial expert and was repeatedly quizzed about Dogecoin. After delivering textbook answers, he was asked whether the currency was just a hoax, to which he responded, “Yeah, it’s a hustle.”He ended the skit howling, “to the moon!” -- a reference he repeated in his tweet about the SpaceX announcement on Sunday.Dogecoin, a cryptocurrency that started as an internet meme in 2013, has surged more than 21,000% in the past year, according to CoinGecko.Musk, 49, has been among its biggest boosters, along with Mark Cuban, Snoop Dogg and Gene Simmons. Still, crypto volatility has prompted urgent warnings from central bankers -- as recently as Thursday -- that people buying in should be prepared to lose all of their money.Musk’s Tesla Inc. announced in February that it had bought $1.5 billion of Bitcoin, and the head of the electric-car giant himself has spoken of the digital asset in favorable terms. He has a $183.9 billion fortune, according to the Bloomberg Billionaires Index.(Updates percentage gain.)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. Business Bloomberg 210509 18h40m Stocks, Futures Up After U.S. High; Gasoline Jumps: Markets Wrap (Bloomberg) -- Asian stocks and U.S. equity futures gained Monday after the S&P 500 hit a record on weak jobs data that added to the case for ongoing stimulus. Gasoline and crude oil rose after a key pipeline was closed.Shares advanced in Japan, Australia and South Korea. Gasoline jumped as much as 4.2% before paring some of the increase, with U.S. operator Colonial Pipeline providing no timeline for a restart following a shutdown late Friday due to a ransomware attack.Iron ore futures in Singapore surged on strong demand from China. A “goldilocks scenario” seems to be forming for commodities amid the economic recovery from the pandemic, according to Goldman Sachs Group Inc. The dollar held losses after tumbling Friday, while the pound was the top performer among the Group of 10 currencies. Treasury yields edged up to about 1.60%, and traders are braced for a busy week of auctions.The energy price surge is adding to the inflation debate ahead of a U.S. CPI report this week which is forecast to show prices continued to increase in April. Investors will also parse appearances by a parade of Federal Reserve policy makers as they try to gauge the central bank’s thinking.“At the moment the view is very much that inflation is transitory,” Mo Apabhai, head of Asia trading strategy at Citigroup Global Markets, said on Bloomberg Television. “The Fed having experimented for the last 10 years is trying to keep on running it hot, but at the end of the day the disinflationary forces are still very strong in the economy.”U.S. jobs rose by 266,000 in April, trailing the projected 1 million jump, and suggesting the Fed will stick to its accommodative stance. Treasury Secretary Janet Yellen said the report “underscores the long-haul climb back to recovery,” while retaining her expectations of a return to full employment next year.The MLIV Question of the Day: How Could Highest CPI in Decade Hit Assets?Here are some key events to watch this week:A range of Fed speakers are due this week, including Chicago Fed President Charles Evans on the economic outlook Monday and U.S. Fed Governor Lael Brainard on Tuesday, among othersChinese inflation data are due TuesdayOPEC monthly Oil Market Report is published with global demand forecasts and production estimates TuesdayU.S. CPI report Wednesday is forecast to show prices continued to increase in AprilBank of England Governor Andrew Bailey speaks WednesdayThese are some of the main moves in markets:StocksS&P 500 futures rose 0.3% as of 9:32 a.m. in Tokyo. The S&P 500 rose 0.7%Nasdaq 100 futures rose 0.2%. The Nasdaq 100 rose 0.8%Japan’s Topix index rose 1%Australia’s S&P/ASX 200 Index rose 0.8%South Korea’s Kospi index added 0.5%CurrenciesThe Japanese yen was at 108.78 per dollarThe offshore yuan traded at 6.4218 per dollarThe Bloomberg Dollar Spot Index was steady after falling 0.7% FridayThe euro was at $1.2163The pound rose 0.4% to $1.4037BondsThe yield on 10-year Treasuries rose two basis points 1.60%Australia’s 10-year bond yield rose four two basis points to 1.72%CommoditiesWest Texas Intermediate crude rose 1% to $65.54 a barrelGold was at $1,831.80 an ounceGasoline futures rose 1.9%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. Business Bloomberg 210509 18h32m Gasoline Jumps With Oil as Cyberattack Knocks Out U.S. Pipeline (Bloomberg) -- Crude oil and U.S. gasoline rallied after a cyberattack put the nation’s largest oil-products pipeline out of action.West Texas Intermediate in New York rose 1.1%, while gasoline rallied as much as 4.2% to the highest since May 2018, before paring gains. Colonial Pipeline Co., a key supplier of gasoline, diesel and jet fuel to the eastern half of the U.S., halted operations late on Friday, and said Sunday it is still developing a plan for restarting the key artery. A rush for replacement fuels could emerge in the East, leading traders to source cargoes from Europe and Asia.Oil prices have gained more than 30% this year as the rapid roll-out of vaccines across the U.S. and Europe prompts the lifting of social-distancing measures and travel restrictions. Consumption of fuels such as gasoline and jet fuel has been on the mend as millions of people return to work, boosting personal mobility and the use of cars and supporting domestic and international travel.“For now, the market is giving the company the benefit of the doubt that this will be resolved in short order,” said John Kilduff, founding partner at Again Capital LLC. Still, “the pain at the pump will go national, if New York Harbor and other East Coast supply points see supplies dwindle,” he warned.The Colonial network is the main source of gasoline, diesel and jet fuel for the East Coast, with capacity of about 2.5 million barrels a day on its system from Houston as far as North Carolina, and another 900,000 barrels to New York. Gasoline stockpiles have hovered near a four-month low since March, while diesel inventories are just above the five-year average for this time of year.The shutdown is likely to cause fuel pile-ups, as well as shortages, along different parts of the extended supply chain, and there’s concern that some refineries may be forced to reduce their run rates.Traders and shippers are seeking vessels to deliver gasoline that would have otherwise gone via the Colonial system, according to people familiar with the matter. Others are securing tankers to store gasoline in the Gulf, they said.Even before Colonial’s system was forced offline, gasoline had rebounded strongly this year on rising demand from motorists. U.S. refiners were ramping up output for summer demand, with the biggest spike expected at the start of the Memorial Day holiday on May 31, a three-day weekend for most Americans.The hackers who caused Colonial Pipeline to shut down began their blitz last Thursday, stealing a large amount of data before locking computers with ransomware and demanding payment, people familiar with the matter said. The attack appeared to use a ransomware group called DarkSide, according to Allan Liska, senior threat analyst at cybersecurity firm Recorded Future.Companies behind pipeline and power grids are vulnerable to cyber attacks due to digitalization and the use of more so-called smart applications. Moving from manual to automatic controls increases the connectedness of public and private networks, but leaves them susceptible to attacks.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. World Reuters 210509 18h32m China reports 11 new COVID-19 cases vs 12 a day earlier China reported 11 new COVID-19 cases on May 9, down from 12 cases a day earlier, the national health authority said on Monday. The National Health Commission, in a statement, said all of the new cases were imported infections originating from overseas. The number of new asymptomatic cases, which China does not classify as confirmed cases, rose to 18 from 10 cases a day earlier. Business Bloomberg 210509 18h30m ByteDance Hires Thousands to Challenge E-Commerce King Alibaba (Bloomberg) -- Zhang Yiming built ByteDance Ltd. into the world’s most valuable private company via a string of blockbuster apps like TikTok that challenged Facebook and other incumbents on their own turf. His latest target: Alibaba.The 38-year-old AI coding genius, searching for ByteDance’s next big act, has set his sights on China’s $1.7 trillion e-commerce arena. The co-founder has hired thousands of staff and roped in big-name sponsors like Xiaomi Corp. impresario Lei Jun to drive what he calls his next “major breakthrough” into global business -- selling stuff to consumers via its addictive short videos and livestreams. That endeavor will test not just Zhang’s magic touch with app creation and ByteDance’s AI wizardry, but also investor reception ahead of one of the tech world’s most hotly anticipated IPOs.His startup is already starting to make waves in an industry long controlled by Jack Ma’s Alibaba Group Holding Ltd. and JD.com Inc. It sold about $26 billion worth of make-up, clothing and other merchandise in 2020, achieving in its maiden year what Alibaba’s Taobao took six years to accomplish. It’s shooting for more than $185 billion by 2022. Douyin, TikTok’s Chinese twin, is expected to contribute more than half of the firm’s $40 billion domestic ad sales this year, driven in part by e-commerce.“Short video platforms have so much traffic that they can basically do any business,” said Shawn Yang, managing director of Blue Lotus Capital Advisors. “Douyin is not only in ads, but also live-streaming, e-commerce, local life services and search. This has a lot of room for imagination.”A burgeoning e-commerce business could help the firm surpass its $250 billion valuation when it goes public, countering concerns around Beijing’s crackdown on the country’s internet behemoths. Preparations are said to be underway for a listing that would be one of the world’s most anticipated debuts. The startup is working with advisers on the offering and is choosing between Hong Kong and U.S. as the listing venue, people familiar with the matter have said. While ByteDance won’t handle sales or merchandise itself, it hopes to sell more ads to merchants, boost traffic and take a cut of business.Read more: ByteDance Is Said to Kick Off IPO Preparations for China AssetsThe internet giant is a late entrant to China’s social commerce scene, where influencers tout products to fans like a Gen-Z version of the Home Shopping Network. The format, pioneered by Alibaba as a marketing tool in 2016, developed a life of its own last year when Covid-19 spurred demand for at-home entertainment. Last year, Alibaba’s Taobao Live generated over 400 billion yuan ($62 billion) of gross merchandise value and Kuaishou Technology’s social platforms hosted 381 billion yuan of transactions, more than double Douyin’s.ByteDance is counting on its artificial intelligence-driven, interest-based recommendations to help its e-commerce business catch up. In a splashy coming-out party for the one-year-old business last month, executives explained that the company intends to replicate its success with using AI algorithms to feed users content in online shopping. By scrolling an endless stream of social content, now connected with physical goods more than ever, Douyin users won’t be able to resist their impulse to buy, they said.It’s “sort of similar to shopping on the street,” Bob Kang, Douyin’s 35-year-old e-commerce chief, told an audience of hundreds at the Guangzhou event. “As people get richer, they don’t go to shopping malls or boutique stores with specific things in mind, they just buy if they see something they like.”Kang, a former Baidu Inc. engineer who was poached by ByteDance in 2017, is one of a slew of fast-rising young lieutenants tasked by Zhang to break new ground for the company. He was previously the tech lead for ByteDance’s Helo app, one of India’s most-used social platforms for sharing content like videos -- until the South Asian nation shut it down along with dozens of Chinese apps last June on national security grounds.Since Kang took over as e-commerce head, Douyin has banned live-streamers from selling items listed on third-party sites and invited them to open their own in-app stores, preventing rivals like Alibaba and JD.com Inc. from profiting off its traffic. He grew a team of customer support staff from just one hundred to about 1,900 to fight counterfeits and is hiring for more than 900 other positions to support the business. ByteDance also has an online matchmaking system that helps connect merchants with influencers and their agencies, and it’s set up physical bases to house live streamers and merchandise, similar to what Alibaba does.The initiative gained traction from celebrity endorsers like Lei, the Xiaomi founder who has hosted livestreams promoting his Mi TVs and smartphones. Luo Yonghao, a once high-flying entrepreneur who had sought to challenge Apple Inc. with his smartphone business, is another top influencer, shifting more than $17 million of merchandise in his first-ever livestream on the platform.Smaller merchants are following their lead, like Zhou Huang, who set up a Douyin storefront for her jewelry business in October, bypassing conventional platforms like Alibaba’s Taobao. Instead of stumping up hefty fees to platform operators for traffic, she’s managed to amass a fan base of about 20,000 by creating videos that offer practical tips like how to choose the right size when buying a bracelet online.“It’s challenging for brand new merchants like me to attract customers on Taobao,” says Huang, whose Douyin store broke even after just three months. “Sometimes, people come to our store not for shopping, but for entertainment. But once we have enough visitors, we can make a sale.”ByteDance is lending a hand. In Foshan, Huang and 200 other jewelry sellers are coached on everything from registering a store and marketing to shooting quality videos. Around-the-clock technical assistance is available: Huang says that whenever her livestream channel goes down, ByteDance technicians immediately come to the rescue.Huang is one of about 1 million creators who have generated e-commerce sales on Douyin as of January, drawn to the platform’s 600 million-plus daily users. The platform -- which brings in commission fees from merchants as a new revenue stream -- aims to have more than a thousand brands this year join the likes of Suning.com Co. in setting up stores on Douyin, and that number could increase fivefold by 2022, the company predicted in an internal memo. GMV may grow to as much as 600 billion yuan this year before doubling to 1.2 trillion yuan in 2022.Read more: Leaked ByteDance Memo Shows Blockbuster Revenue Projections ByteDance’s ambitions aren’t limited to Alibaba. The firm has also started to let users book hotels and restaurants through Douyin, offering lifestyle services similar to super-apps like Meituan and Tencent’s WeChat.Douyin’s e-commerce foray in China may offer a roadmap for TikTok, which has begun testing the waters in online shopping through tie-ups with WalMart Inc. and Canadian e-commerce firm Shopify Inc. Back in December, Zhang told global employees that e-commerce, when combined with live-streaming and short videos, offers an even bigger opportunity outside China, according to attendees who asked not to be identified. The company has also been quietly building a team of engineers in Singapore to grow TikTok’s nascent e-commerce operations.ByteDance’s push into online shopping comes as its other businesses face headwinds. To grow video gaming, ByteDance has been buying development studios but churning out blockbuster hits like Tencent Holdings Ltd.’s Honor of Kings could take years and China has previously cracked down on the industry in fits and starts. In online tutoring, regulators have sought to rein in excess marketing and competition is fierce against a slew of deep-pocketed startups like Alibaba-backed Zuoyebang.In April, Zhang’s firm was one of 34 corporations ordered by the antitrust watchdog to conduct internal investigations and rectify excesses. And though its payment service has only just gotten off the ground, ByteDance and its peers were slapped with wide-ranging restrictions on their fast-growing financial operations following a meeting with regulators including the central bank last month.But the same scrutiny could help the TikTok owner make inroads into China e-commerce, the largest online marketplace in the world. Alibaba has held off rivals JD.com and Pinduoduo Inc. over the past decade allegedly through practices like forcing merchants into exclusive arrangements. Regulators have since levied a record $2.8 billion fine on Jack Ma’s flagship firm and made eradicating “pick one from two” one of the main goals of its antitrust campaign, creating room for up-and-comers like ByteDance.For now, the biggest and most immediate boost from ByteDance’s expansion into e-commerce is in advertising revenue, which still accounts for the bulk of its earnings. As the number of merchants on Douyin increases, so has their marketing spending within the platform. The firm projects that e-commerce may surpass gaming to become the biggest contributor to ad sales. At rival Kuaishou, merchants contributed about 20%, the company said in March.“It’s more about getting greater share of advertising spending from brands that would otherwise be spending money on platforms like Alibaba,” said Michael Norris, a senior analyst with Shanghai-based market research firm AgencyChina. “This is where the threat to Alibaba comes from.(Adds details on potential listing venue in fifth 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. Business Reuters 210509 18h10m Stocks look to gain on payrolls miss, oil up after cyber attack Stocks rose on Monday amid speculation that interest rates will remain low for an extended period due to the receding risk of a rapid acceleration in inflation, while oil prices jumped after a cyber attack on a U.S. pipeline operator unnerved markets. U.S. stock futures rose 0.12%. U.S. nonfarm payrolls data on Friday showed jobs growth unexpectedly slowed in April, which gave equities a lift but put downward pressure on the dollar and U.S. Treasury yields. Howell date : 210509 17h04m37s Business Reuters 210509 16h54m UPDATE 1-Australia's Star Entertainment makes $7.44 bln bid for rival Crown Australian casino operator Star Entertainment Group said on Monday it had proposed to buy rival Crown Resorts Ltd in a deal valued at more than A$9.48 billion ($7.44 billion). The country's No. 2 casino group offered 2.68 of its shares for each Crown share, implying a potential value of over A$14 a share based on its estimate that its share price would be worth more than A$5, said Star, whose shares last closed at A$3.91. Star's approach includes a cash alternative of A$12.50 per share for up to 25% of Crown. Business Bloomberg 210509 16h45m U.S. Stock Futures Up After Record; Gasoline Jumps: Markets Wrap (Bloomberg) -- U.S. equity futures edged up and Asian stocks were set for a steady start after the S&P 500 hit a record on weak jobs data that added to the case for ongoing stimulus. Gasoline and oil rose after a pipeline was closed.Nasdaq 100 contracts outperformed though the gains were limited. Stock futures were modestly higher in Japan, dipped in Australia and climbed in Hong Kong. Gasoline jumped as much as 4.2% before paring gains, with the country’s top pipeline operator Colonial Pipeline providing no timeline for a restart following a shutdown late Friday due to a ransomware attack.The dollar traded in tight ranges against some major peers after tumbling on Friday. The pound was the top performer among the Group of 10 currencies.The energy price surge is adding to the inflation debate ahead of a U.S. CPI report this week which is forecast to show prices continued to increase in April. Investors will also parse appearances by a parade of Federal Reserve policy makers as they try to gauge the central bank’s thinking.U.S. jobs rose by 266,000 in April, trailing the projected 1 million jump, and suggesting the Fed will stick to its accommodative stance. Treasury Secretary Janet Yellen said the report “underscores the long-haul climb back to recovery,” while retaining her expectations of a return to full employment next year.Despite the weak employment report, “the U.S. recovery still remains intact and Wall Street should still expect growth exceptionalism over the coming months, which in the end should lead to much higher Treasury yields,” Edward Moya, senior market analyst at Oanda, said in a note.Here are some key events to watch this week:Chicago Fed President Charles Evans discusses the economic outlook at a virtual event MondayU.S. Fed Governor Lael Brainard takes part in a Q&A. San Francisco Fed President Mary Daly and New York Fed President John Williams also speak TuesdayOPEC monthly Oil Market Report is published with global demand forecasts and production estimates TuesdayFed Vice Chair Richard Clarida gives a virtual speech WednesdayU.S. CPI report is forecast to show prices continued to increase in April, likely fueling further debate about the path of inflation. Out WednesdaySt. Louis Fed President James Bullard discusses the U.S. economic and policy outlook during a virtual event ThursdayDallas Fed President Robert Kaplan takes part in a moderated discussion FridayThese are some of the main moves in markets:StocksS&P 500 futures rose 0.1% as of 7:36 a.m. in Tokyo. The S&P 500 rose 0.7%Nasdaq 100 futures rose 0.2%. The Nasdaq 100 rose 0.8%Nikkei 225 futures were added about 0.2%Australia’s S&P/ASX 200 Index futures dipped 0.1%Hang Seng Index futures rose 0.4% earlierCurrenciesThe Japanese yen was at 108.58 per dollarThe offshore yuan traded at 6.4189 per dollarThe Bloomberg Dollar Spot Index was steady after falling 0.7% FridayThe euro was at $1.2163The pound rose 0.3% to $1.4027BondsThe yield on 10-year Treasuries was at 1.58% FridayAustralia’s 10-year bond yield rose more than one basis point to 1.70%CommoditiesWest Texas Intermediate crude rose 0.7% to $65.33 a barrelGold rose 0.1% to $1,832.35 an ounceGasoline futures rose 1.7%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. Business Reuters 210509 16h32m Knowns and unknowns about the hack at Colonial Pipeline Ransom-seeking hackers have broken into Colonial Pipeline, prompting the company to shut one of America's major arteries for fuel delivery. Alpharetta, Georgia-based Colonial Pipeline and the U.S. government have both blamed ransomware for the massive outage, pointing the finger at cybercriminal gangs who routinely hold data and computer networks hostage in exchange for digital currency payments. Ransomware can deal catastrophic damage to an organization's network by locking away critical data or even wrecking computers beyond repair. Business Yahoo Finance 210509 16h31m Disney, Airbnb earnings, Retail sales: What to know this week Though first-quarter earnings season is winding down, a handful of major companies will still be reporting results this week, including some of the newly public names like Airbnb, Roblox and Bumble. The Commerce Department's retail sales report is also set for release, offering another update on the strength of consumer spending during the economic recovery. Business Bloomberg 210509 16h30m Half of Shell’s Energy Mix to Be Clean Next Decade, CEO Says (Bloomberg) -- Royal Dutch Shell Plc’s head expects clean energy to make up half of the company’s energy mix “somewhere in the next decade.”“If we do not make that type of process by the middle of next decade, we have a problem not just as a company but as a society,” Chief Executive Officer Ben van Beurden said in an interview with AXIOS on HBO.Like its European peers, the Anglo-Dutch major has set itself an “ambition” to become a net-zero emissions energy company by the middle of this century. The feat involves producing less oil, more gas and renewables, as well as using technologies still in their infancy like hydrogen and carbon sequestration. Not everyone is convinced, with the energy giant set to clash with some shareholders on the matter at its annual general meeting later this month.“If you want to get rid of hydrocarbons in the mix, you have to do something about the use of it, not the production of it,” van Beurden said. Speaking on the challenges of the transition, the 63-year-old Dutchman also said that people want to see results straightaway, but “don’t expect that tomorrow we will stop selling diesel to trucks.”While Van Beurden welcomed the U.S. rejoining the Paris Climate Agreement, which seeks to limit global warming temperature increases to less than 2 degrees Celsius from pre-industrial levels, he questioned other policies. “What I also see is that the government is flirting with popular ideas that are clear, simple, and wrong, which is, ‘Let’s ban the production of oil and gas in our country.’”Van Beurden has previously criticized U.S. President Joe Biden’s policy to ban drilling on federal land, saying such restrictions will simply result in boosting oil imports. “Popular demand may well push you in the direction, but it is not smart policy.”“We will focus on the demand side, and then the supply side is a resultant of that,” 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. Business Bloomberg 210509 16h24m No End in Sight to U.S. Fuel Pipeline Shutdown After Cyberattack (Bloomberg) -- Fuel suppliers are growing increasingly nervous about the possibility of gasoline and diesel shortages across the eastern U.S. almost two days after a cyberattack knocked out a massive pipeline.Colonial Pipeline said Sunday that it was still developing a plan for restarting the nation’s largest fuel pipeline -- a critical source of supply for the New York region -- and would only bring it back when “safe to do so, and in full compliance with the approval of all federal regulations.” Gasoline futures surged by as much as 4.2% in early electronic trading on Sunday.The attack comes just as the nation’s energy industry is preparing to meet stronger fuel demand from summer travel. Americans are once again commuting to the office, planning major travel for the first time and booking flights. A prolonged disruption along the pipeline system threatens to send average U.S. gasoline prices above $3 a gallon for the first time since October 2014, further stoking fears of inflation as commodity prices rally worldwide.With little to no clarity over when the system will return, traders are seeking vessels to deliver gasoline that would have otherwise been shipped on the Colonial system, according to market participants who asked not to be identified because the information isn’t public. Some tankers are being secured to temporarily store gasoline in the U.S. Gulf in the event of a prolonged shutdown, they said.Colonial halted all operations on its system late Friday after suffering a ransomware attack that affected some of its IT systems.Colonial is just the latest example of critical infrastructure being targeted by ransomware. Hackers are increasingly attempting to infiltrate essential services such as electric grids and hospitals. The escalating threats prompted the White House to respond last month with a plan to increase security at utilities and their suppliers. Pipelines are a specific concern because of the central role they play in the U.S. economy.“It’s an all-hands-on-deck effort right now,” U.S. Commerce Secretary Gina Raimondo said of federal government actions as the shutdown drags on. “We are working closely with the company, state and local officials to make sure that they get back up to normal operations as quickly as possible and there aren’t disruptions in supply.”Colonial is a major source of gasoline, diesel and jet fuel to the East Coast from the nation’s refining belt along the U.S. Gulf Coast. It has the capacity to send about 2.5 million barrels a day on its system from Houston as far as North Carolina, and another 900,000 barrels a day to New York.The attack appeared to use a ransomware group called DarkSide, according to Allan Liska, senior threat analyst at cybersecurity firm Recorded Future. The cybersecurity firm FireEye Inc. said its Mandiant incident response division was assisting with the investigation.Extortion FeeRansomware cases involve hackers seeding networks with malicious software that encrypts the data and leaves the machines locked until the victims pay the extortion fee. This would be the biggest attack of its kind on a U.S. fuel pipeline.The national gasoline average stood at $2.96 a gallon Friday, according to auto club AAA. With gasoline inventories ample, the pump price wasn’t expected to tick much higher until Memorial Day at the end of May, which is traditionally viewed as the start of the U.S. summer driving season. If the pipeline doesn’t restart soon it will accelerate the move higher.“I think we’re at strong odds for it by Memorial Day given current trends,” said Patrick De Haan, head of petroleum analysis at Gas Buddy.A key concern at present is meeting product demand in the U.S. Southeast, which is especially dependent on the Colonial system, people familiar with the situation said. Drivers in landlocked and car-dependent Atlanta may be the first to feel the pinch at the pump.“Atlanta will be one of the earlier sore spots, along with eastern Tennessee, and perhaps the Carolinas,” De Haan said.The Northeast can secure gasoline shipments from Europe but it will come at an increasing cost the longer the pipeline stays shut.“The longer it lasts, the more bullish it will be for refined products on the East Coast,” said Warren Patterson, head of commodities strategy at ING Groep NV. “This will likely also drag European product prices higher, as we see more waterborne cargoes needing to go into the U.S. East Coast to meet the shortfall.”Airports on the East Coast, which continue to have some of the steepest drops in air traffic due to the pandemic, have been operating smoothly Sunday, according to the flight-tracking website FlightAware.com.In the meantime, fuel producers including Marathon Petroleum Corp. are weighing alternatives for how to ship their products to the Northeast.One potential route is the Kinder Morgan-operated Plantation Pipeline, even though it only extends as far north Washington D.C. and has a capacity of 720,000 barrels a day, far short of Colonial’s. Kinder said Sunday it’s working with customers to accommodate additional barrels during Colonial’s outage, and that Plantation is deferring where possible any non-essential maintenance that might otherwise reduce flow rates.While all of the major segments of Colonial’s system remain offline, some smaller so-called laterals connecting specific fuel terminals to delivery points are in service, the company said. That laterals gave some traders hope that the full network may be back online within a week. “Hopefully it is a sign that they have made progress either negotiating with those responsible for the attack or have found ways to operate around it, said Debnil Chowdhury, head of Americas refining at IHS Markit. “However to avoid product shortages, all efforts should be made to avoid a 5+ day outage of the main lines.”Inventories offer minimal cover, ClearView Energy Partners said in a research note. Tankers leaving Rotterdam could take up to 14 days to make the trip to the New York Harbor. The Midwest could theoretically send some of its supplies to the East Coast via rail and barge, but the region’s inventories are tighter than in previous years, ClearView said.“The Colonial outage comes at a critical juncture for the recovering U.S. economy: the start of the summer driving season,” ClearView said. “We therefore think lawmakers could begin a ‘blame game’ immediately, and a sustained disruption that leads to a significant pump price spike could increase prospects of domestic policy interventions.”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. Business Reuters 210509 16h19m RPT-U.S. Southeast braces for fuel price rises after pipeline shutdown The southeastern United States will be the first to see price rises at the pumps due to the supply disruption caused by the shutdown of the country's top fuel pipeline network - and demand has already picked up as drivers fill their tanks, industry experts said on Sunday. The attack forced Colonial Pipeline to shut down its entire system on Friday. The network ships more than 2.5 million barrels per day (bpd) of gasoline, diesel and jet fuel from the Gulf Coast to populous southeast and northeast states. Howell date : 210509 15h04m00s World Business Bloomberg 210509 13h04m Colonial Pipeline’s Silence Has Got U.S. Energy Traders Nervous (Bloomberg) -- Traders and shippers are increasingly nervous about the possibility of a shortage of fuel in the eastern U.S. almost two days after the shutdown of a major pipeline following a cyberattack.The lack of any update from Colonial Pipeline in more than 24 hours has become a particular source of concern in the market for oil products, which includes gasoline, diesel and jet fuel, according to people familiar the matter. Electronic trading of gasoline futures is set to resume at 6 p.m. in New York on Sunday.Traders are already seeking vessels to deliver gasoline that would have otherwise been shipped on the Colonial system, according to other market participants, who asked not to be identified because the information isn’t public. Some tankers are being secured to temporarily store gasoline in the U.S. Gulf in the event of a prolonged shutdown, they said.Colonial, the nation’s biggest fuel pipeline, halted all operations on its system late Friday after suffering a cyberattack that affected some of its IT systems. The company has said it’s working to restore operations but has given no timeline for a restart.The attack comes just as the nation’s energy industry is preparing to meet stronger fuel demand from summer travel and could raise more concerns about inflation as commodity prices from oil to corn rally in a post-pandemic rebound. Americans are once again commuting to the office, planning major travel for the first time and booking flights. A prolonged disruption along the pipeline system threatens to send the national average gasoline price above $3 a gallon for the first time since October 2014, a threshold that often piques concern from federal lawmakers that worry about the impact on consumers.“It’s an all-hands-on-deck effort right now,” U.S. Commerce Secretary Gina Raimondo said of federal government actions as the shutdown drags on. “We are working closely with the company, state and local officials to make sure that they get back up to normal operations as quickly as possible and there aren’t disruptions in supply.”Colonial is just the latest example of critical infrastructure being targeted by ransomware. Hackers are increasingly attempting to infiltrate essential services such as electric grids and hospitals. The escalating threats prompted the White House to respond last month with a plan to increase security at utilities and their suppliers. Pipelines are a specific concern because of the central role they play in the U.S. economy.Colonial is a critical source of gasoline, diesel and jet fuel to the East Coast from the nation’s refining belt along the U.S. Gulf Coast. It has the capacity to send about 2.5 million barrels a day on its system from Houston as far as North Carolina, and another 900,000 barrels a day to New York.The attack appeared to use a ransomware group called DarkSide, according to Allan Liska, senior threat analyst at cybersecurity firm Recorded Future. The cybersecurity firm FireEye Inc. said its Mandiant incident response division was assisting with the investigation.Ransomware cases involve hackers seeding networks with malicious software that encrypts the data and leaves the machines locked until the victims pay the extortion fee. This would be the biggest attack of its kind on a U.S. fuel pipeline.The national gasoline average stood at $2.96 a gallon Friday, according to auto club AAA. With gasoline inventories ample, the pump price wasn’t expected to tick much higher until Memorial Day at the end of May, which is traditionally viewed as the start of the U.S. summer driving season. If the pipeline doesn’t restart soon it will accelerate the move higher.“I think we’re at strong odds for it by Memorial Day given current trends,” said Patrick De Haan, head of petroleum analysis at Gas Buddy.A key concern at present is meeting product demand in the U.S. Southeast, which is especially dependent on the Colonial system, people familiar with the situation said. Drivers in landlocked and car-dependent Atlanta may be the first to feel the pinch at the pump.“Atlanta will be one of the earlier sore spots, along with eastern Tennessee, and perhaps the Carolinas,” De Haan said.The Northeast can secure gasoline shipments from Europe but it will come at an increasing cost the longer the pipeline stays shut.“The longer it lasts, the more bullish it will be for refined products on the East Coast,” said Warren Patterson, head of commodities strategy at ING Groep NV. “This will likely also drag European product prices higher, as we see more waterborne cargoes needing to go into the U.S. East Coast to meet the shortfall.”Airports on the East Coast, which continue to have some of the steepest drops in air traffic due to the pandemic, have been operating smoothly Sunday, according to the flight-tracking website FlightAware.com.In the meantime, fuel producers including Marathon Petroleum Corp. are weighing alternatives for how to ship their products to the Northeast.One potential route is the Kinder Morgan-operated Plantation Pipeline, even though it only extends as far north Washington D.C. and has a capacity of 720,000 barrels a day, far short of Colonial’s. Kinder said Sunday it’s working with customers to accommodate additional barrels during Colonial’s outage, and that Plantation is deferring where possible any non-essential maintenance that might otherwise reduce flow rates.Inventories offer minimal cover, ClearView Energy Partners said in a research note. Tankers leaving Rotterdam could take up to 14 days to make the trip to the New York Harbor. The Midwest could theoretically send some of its supplies to the East Coast via rail and barge, but the region’s inventories are tighter than in previous years, ClearView said.“The Colonial outage comes at a critical juncture for the recovering U.S. economy: the start of the summer driving season,” ClearView said. “We therefore think lawmakers could begin a ‘blame game’ immediately, and a sustained disruption that leads to a significant pump price spike could increase prospects of domestic policy interventions.”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. World Reuters 210509 13h04m Dutch govt grants $2.4 billion in subsidies to huge carbon storage project AMSTERDAM (Reuters) -The Dutch government has granted a consortium that includes oil majors Royal Dutch Shell and ExxonMobil around 2 billion euros ($2.4 billion) in subsidies for what is set to become one of the largest carbon capture and storage (CCS) projects in the world, the Port of Rotterdam said on Sunday. Shell and Exxon requested the subsidies in January together with industrial gas suppliers Air Liquide and Air Products for a project which aims to capture CO2 emitted by factories and refineries in the Rotterdam port area and store it in empty Dutch gas fields in the North Sea. Business Reuters 210509 13h04m SpaceX accepts dogecoin as payment to launch a lunar mission next year Geometric Energy Corporation announced the dogecoin-funded mission on Sunday, with the statement not disclosing the mission's financial value. "We're excited to launch DOGE-1 to the Moon!", SpaceX Vice President of Commercial Sales Tom Ochinero was quoted as saying in the statement released by Geometric Energy. U.S. Reuters 210509 13h04m UPDATE 1-Ford recalls 661,000 Explorer SUVs in North America Ford Motor Co is recalling 661,000 Explorer sport utility vehicles in North America at the request of U.S. regulators because retention pins could loosen and allow roof rail covers to detach from the vehicle. Dealers will install push-pins and replace any damaged rail clips and roof rail covers. The second-largest U.S. automaker said in documents https://static.nhtsa.gov/odi/rcl/2021/RMISC-21V316-0418.pdf posted Sunday that the National Highway Traffic Safety Administration first inquired about the issue in early 2020 following 11 reports of roof rail cover detachment. World Bloomberg 210509 11h04m Fernandez Kicks Off Europe Trip as Paris Club Debt Payment Nears (Bloomberg) -- Argentina’s president Alberto Fernandez arrived in Portugal Sunday, kicking off a five-day trip across Europe as he looks to drum up support to delay a $2.4 billion payment to the Paris Club.Fernandez will meet with top authorities in Portugal today before moving on to Spain, France and Italy. Economy Minister Martin Guzman, who completed a European trip of his own in the second week of April, will also participate in the trip.Read More: Argentina’s Economy Buckles After Leader Puts Politics FirstThe country has asked the Paris Club to allow it to delay its payment, due at the end of May, until it has reached an agreement with the International Monetary Fund, and hopes for an answer by May 31, according to a person with direct knowledge of the negotiations. The person, who asked not to be named because talks are private, declined to say what the country’s steps would be if it didn’t receive a favorable response by that day.The payment comes at a difficult time for Argentina. The country is in its third year of recession, with inflation estimated near 40% and double-digit unemployment. While analyst estimates for net reserves vary, some calculations have put them near zero since September of 2020.In addition to the Paris Club payment, Argentina faces $4.8 billion in principal and interest payments to the IMF this year.Meanwhile, the country also is in talks with the IMF for a new program that seeks to delay payments on an existing $45 billion plan. Those talks have stalled.Here’s Fernandez’s expected agenda:May 9: Meeting with Portuguese President Marcelo Rebelo de SouzaMay 10: Lunch with Portuguese Prime Minister Antonio Costa, travel to SpainMay 11: Meeting with Spanish King Rey Felipe VI & with Prime Minister Pedro SanchezMay 12: Meeting businessmen at Argentine Embassy in Paris, then Fernandez will be received by French President Emmanuel Macron; traveling to ItalyMay 13: Meeting with Pope Francis, then lunch with Italian President Sergio Mattarella & meeting with Mario DraghiMay 14: Return to Buenos AiresFor 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. Howell date : 210509 13h03m23s Business Bloomberg 210509 11h03m Oil Traders Work to Avert Shortages From U.S. Pipeline Hack (Bloomberg) -- The shutdown of America’s largest fuel pipeline after a cyberattack is threatening to send gasoline prices to the highest in seven years as suppliers work to stave off shortages from Atlanta to New York with tankers and barges.Traders and fuel shippers are seeking vessels to deliver gasoline that would have otherwise been shipped on the Colonial Pipeline system, according to people familiar with the matter. Others are securing tankers to temporarily store gasoline in the U.S. Gulf in the event of a prolonged shutdown, they said, asking not to be identified because the information isn’t public.Colonial Pipeline halted all operations on its system late Friday after suffering a cyberattack that affected some of its IT systems. The company has said it’s working to restore operations but has given no timeline for a restart.The attack comes just as the nation’s energy industry is preparing to meet stronger fuel demand from summer travel and could raise more concerns about inflation as commodity prices from oil to corn rally in a post-pandemic rebound. Americans are once again commuting to the office, planning major travel for the first time and booking flights. A prolonged disruption along the pipeline system threatens to send the national average gasoline price above $3 a gallon for the first time since October 2014, a threshold that often piques concern from federal lawmakers that worry about the impact on consumers.“It’s an all-hands-on-deck effort right now,” U.S. Commerce Secretary Gina Raimondo said of federal government actions as the shutdown drags on. “We are working closely with the company, state and local officials to make sure that they get back up to normal operations as quickly as possible and there aren’t disruptions in supply.”Colonial is just the latest example of critical infrastructure being targeted by ransomware. Hackers are increasingly attempting to infiltrate essential services such as electric grids and hospitals. The escalating threats prompted the White House to respond last month with a plan to increase security at utilities and their suppliers. Pipelines are a specific concern because of the central role they play in the U.S. economy.Colonial is a critical source of gasoline, diesel and jet fuel to the East Coast from the nation’s refining belt along the U.S. Gulf Coast. It has the capacity to send about 2.5 million barrels a day on its system from Houston as far as North Carolina, and another 900,000 barrels a day to New York.The attack appeared to use a ransomware group called DarkSide, according to Allan Liska, senior threat analyst at cybersecurity firm Recorded Future. The cybersecurity firm FireEye Inc. said its Mandiant incident response division was assisting with the investigation.Ransomware cases involve hackers seeding networks with malicious software that encrypts the data and leaves the machines locked until the victims pay the extortion fee. This would be the biggest attack of its kind on a U.S. fuel pipeline.The national gasoline average stood at $2.96 a gallon Friday, according to auto club AAA. With gasoline inventories ample, the pump price wasn’t expected to tick much higher until Memorial Day at the end of May, which is traditionally viewed as the start of the U.S. summer driving season. If the pipeline doesn’t restart soon it will accelerate the move higher.“I think we’re at strong odds for it by Memorial Day given current trends,” said Patrick De Haan, head of petroleum analysis at Gas Buddy.A key concern at present is meeting product demand in the U.S. Southeast, which is especially dependent on the Colonial system, people familiar with the situation said. Drivers in landlocked and car-dependent Atlanta may be the first to feel the pinch at the pump.“Atlanta will be one of the earlier sore spots, along with eastern Tennessee, and perhaps the Carolinas,” De Haan said.The Northeast can secure gasoline shipments from Europe but it will come at an increasing cost the longer the pipeline stays shut.“The longer it lasts, the more bullish it will be for refined products on the East Coast,” said Warren Patterson, head of commodities strategy at ING Groep NV. “This will likely also drag European product prices higher, as we see more waterborne cargoes needing to go into the U.S. East Coast to meet the shortfall.”In the meantime, fuel producers including Marathon Petroleum Corp. are weighing alternatives for how to ship their products to the Northeast.One potential route is the Kinder Morgan-operated Plantation Pipeline, even though it only extends as far north Washington D.C. and has a capacity of 720,000 barrels a day, far short of Colonial’s. Kinder said Sunday it’s working with customers to accommodate additional barrels during Colonial’s outage, and that Plantation is deferring where possible any non-essential maintenance that might otherwise reduce flow rates.Inventories offer minimal cover, ClearView Energy Partners said in a research note. Tankers leaving Rotterdam could take up to 14 days to make the trip to the New York Harbor. The Midwest could theoretically send some of its supplies to the East Coast via rail and barge, but the region’s inventories are tighter than in previous years, ClearView said.“The Colonial outage comes at a critical juncture for the recovering U.S. economy: the start of the summer driving season,” ClearView said. “We therefore think lawmakers could begin a ‘blame game’ immediately, and a sustained disruption that leads to a significant pump price spike could increase prospects of domestic policy interventions.”(Updates with Commerce Secretary’s comments in fifth paragraph, Kinder Morgan comments in 17th.)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. Business Bloomberg 210509 10h03m Fed’s Kashkari Says U.S. Job Market Still Needs Help to Heal (Bloomberg) -- The U.S. labor market remains in a “deep hole” and needs aggressive support to speed its healing from the Covid-19 pandemic, said Federal Reserve Bank of Minneapolis President Neel Kashkari.“We are still somewhere between 8 and 10 million jobs below where we were before the pandemic,” Kashkari said Sunday on CBS’s “Face the Nation.” He said there was “some truth” to the idea that enhanced jobless benefits create a disincentive to returning to work. U.S. job growth unexpectedly softened in April from the prior month, with payrolls increasing just 266,000. Economists in a Bloomberg News survey had projected a hiring surge of 1 million people in April. The unemployment rate edged up to 6.1%.“We still are in a deep hole and we still need to do everything we can to put those folks back to work more quickly,” Kashkari said. “We at the Federal Reserve are doing everything we can to accelerate that job-market recovery, because it’s good for the economy and it’s good for families all across the country.”Kashkari does not vote on the Fed’s policy-setting committee this year.U.S. central bankers at their April 27-28 meeting held interest rates near zero and repeated they would keep buying $80 billion of Treasuries and $40 billion of mortgage-backed securities each month until the economy had made “substantial further progress” on employment and inflation.Fed Chair Jerome Powell said in a press conference afterward that progress would take “some time.” Officials don’t expect to begin raising the central bank’s benchmark interest rate from its current near-zero level before 2024, according to the median estimate of projections they published in March.Kashkari said there was “some truth” to the criticism from Republican governors and others that enhanced unemployment benefits were creating a disincentive for Americans returning to work, along with lingering fear of the virus and a shortage of affordable childcare while many schools remain closed to in-person learning. “All three of those factors are all going to trend in a better direction in the next few months,” Kashkari said. “As the virus continues to slow down -- schools reopen and people regain their confidence -- things should get better which should lead to strong growth in the second half of the year and a strong labor-market recovery.”The $300-a-week extra in jobless benefits being paid to some Americans as part of coronavirus relief efforts expires in September. Governors in Montana, South Carolina and Arkansas plan to terminate the benefits earlier, citing worker shortages. The U.S. Chamber of Commerce has also called for ending the supplement. Inflation WatchCritics of the central bank’s aggressive monetary support say it’s risking runaway 1970s-style inflation against the backdrop of multi-trillion spending proposals by President Joe Biden.Kashkari said that inflation will “look high” in the next few months due to base effects -- as the very low readings from 12 months ago as the pandemic took hold fall out of the calculation -- as well as supply-chain bottlenecks as the economy reopens.But he was skeptical that this will prove to be persistent while millions of Americans remain out of work.“I do think inflation is going to pop in the near-term but that is likely going to be transitory,” he said. “But if we’re wrong, and if high inflation comes because of a lot of government spending over the next few years, the Federal Reserve has the tools to make sure we do not have a repeat of the 1970s.”(Updates with more Kashkari comments from paragraph nine.)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. Business Reuters 210509 09h03m Clubhouse launches Android app as downloads plummet The app, which spiked in popularity early this year after celebrity billionaire Elon Musk and others appeared in audio chats, has sparked copy cats from startups and larger rivals including Facebook Inc and Twitter Inc. The long anticipated Android launch is expected to reach more new users globally. The Android version will reach other English-speaking markets and then the rest of the globe days and weeks after the U.S. market beta launch. U.S. Reuters 210509 09h03m Raimondo says 'all hands on deck' in U.S. government to avoid supply disruptions after Colonial hack U.S. government officials are working closely with top U.S. fuel pipeline operator Colonial Pipeline to recover from a ransomware cyberattack that forced it to shut down, hoping to avoid a disruption in supply, Commerce Secretary Gina Raimondo said on Sunday. "It's an all hands on deck effort right now," Raimondo said on CBS' "Face the Nation" program. Howell date : 210509 11h02m46s Business Bloomberg 210509 10h13m Fed’s Kashkari Says U.S. Job Market Still Needs Help to Heal (Bloomberg) -- The U.S. labor market remains in a “deep hole” and needs aggressive support to speed its healing from the Covid-19 pandemic, said Federal Reserve Bank of Minneapolis President Neel Kashkari.“We are still somewhere between 8 and 10 million jobs below where we were before the pandemic,” Kashkari said Sunday on CBS’s “Face the Nation.” He said there was “some truth” to the idea that enhanced jobless benefits create a disincentive to returning to work. U.S. job growth unexpectedly softened in April from the prior month, with payrolls increasing just 266,000. Economists in a Bloomberg News survey had projected a hiring surge of 1 million people in April. The unemployment rate edged up to 6.1%.“We still are in a deep hole and we still need to do everything we can to put those folks back to work more quickly,” Kashkari said. “We at the Federal Reserve are doing everything we can to accelerate that job-market recovery, because it’s good for the economy and it’s good for families all across the country.”Kashkari does not vote on the Fed’s policy-setting committee this year.U.S. central bankers at their April 27-28 meeting held interest rates near zero and repeated they would keep buying $80 billion of Treasuries and $40 billion of mortgage-backed securities each month until the economy had made “substantial further progress” on employment and inflation.Fed Chair Jerome Powell said in a press conference afterward that progress would take “some time.” Officials don’t expect to begin raising the central bank’s benchmark interest rate from its current near-zero level before 2024, according to the median estimate of projections they published in March.Kashkari said there was “some truth” to the criticism from Republican governors and others that enhanced unemployment benefits were creating a disincentive for Americans returning to work, along with lingering fear of the virus and a shortage of affordable childcare while many schools remain closed to in-person learning. “All three of those factors are all going to trend in a better direction in the next few months,” Kashkari said. “As the virus continues to slow down -- schools reopen and people regain their confidence -- things should get better which should lead to strong growth in the second half of the year and a strong labor-market recovery.”The $300-a-week extra in jobless benefits being paid to some Americans as part of coronavirus relief efforts expires in September. Governors in Montana, South Carolina and Arkansas plan to terminate the benefits earlier, citing worker shortages. The U.S. Chamber of Commerce has also called for ending the supplement. Inflation WatchCritics of the central bank’s aggressive monetary support say it’s risking runaway 1970s-style inflation against the backdrop of multi-trillion spending proposals by President Joe Biden.Kashkari said that inflation will “look high” in the next few months due to base effects -- as the very low readings from 12 months ago as the pandemic took hold fall out of the calculation -- as well as supply-chain bottlenecks as the economy reopens.But he was skeptical that this will prove to be persistent while millions of Americans remain out of work.“I do think inflation is going to pop in the near-term but that is likely going to be transitory,” he said. “But if we’re wrong, and if high inflation comes because of a lot of government spending over the next few years, the Federal Reserve has the tools to make sure we do not have a repeat of the 1970s.”(Updates with more Kashkari comments from paragraph nine.)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. Business Bloomberg 210509 09h02m Oil Traders Work to Avert Shortages From U.S. Pipeline Hack (Bloomberg) -- The shutdown of America’s largest fuel pipeline after a cyberattack is threatening to send gasoline prices to the highest in seven years as suppliers work to stave off shortages from Atlanta to New York with tankers and barges.Traders and fuel shippers are seeking vessels to deliver gasoline that would have otherwise been shipped on the Colonial Pipeline system, according to people familiar with the matter. Others are securing tankers to temporarily store gasoline in the U.S. Gulf in the event of a prolonged shutdown, they said, asking not to be identified because the information isn’t public.Colonial Pipeline halted all operations on its system late Friday after suffering a cyberattack that affected some of its IT systems. The company has said it’s working to restore operations but has given no timeline for a restart.The attack comes just as the nation’s energy industry is preparing to meet stronger fuel demand from summer travel and could raise more concerns about inflation as commodity prices from oil to corn rally in a post-pandemic rebound. Americans are once again commuting to the office, planning major travel for the first time and booking flights. A prolonged disruption along the pipeline system threatens to send the national average gasoline price above $3 a gallon for the first time since October 2014, a threshold that often piques concern from federal lawmakers that worry about the impact on consumers.Colonial was just the latest example of critical infrastructure being targeted by ransomware. Hackers are increasingly attempting to infiltrate essential services such as electric grids and hospitals. The escalating threats prompted the White House to respond last month with a plan to increase security at utilities and their suppliers. Pipelines are a specific concern because of the central role they play in the U.S. economy.The Colonial pipeline is a critical source of gasoline, diesel and jet fuel to the East Coast from the nation’s refining belt along the U.S. Gulf Coast. It has the capacity to send about 2.5 million barrels a day on its system from Houston as far as North Carolina, and another 900,000 barrels a day to New York.The attack appeared to use a ransomware group called DarkSide, according to Allan Liska, senior threat analyst at cybersecurity firm Recorded Future. The cybersecurity firm FireEye Inc. said its Mandiant incident response division was assisting with the investigation.Ransomware cases involve hackers seeding networks with malicious software that encrypts the data and leaves the machines locked until the victims pay the extortion fee. This would be the biggest attack of its kind on a U.S. fuel pipeline.The national gasoline average stood at $2.96 a gallon Friday, according to auto club AAA. With gasoline inventories ample, the pump price wasn’t expected to tick much higher until Memorial Day at the end of May, which is traditionally viewed as the start of the U.S. summer driving season. If the pipeline doesn’t restart soon it will accelerate the move higher.“I think we’re at strong odds for it by Memorial Day given current trends,” said Patrick De Haan, head of petroleum analysis at Gas Buddy.A key concern at present is meeting product demand in the U.S. Southeast, which is especially dependent on the Colonial system, people familiar with the situation said. Drivers in landlocked and car-dependent Atlanta may be the first to feel the pinch at the pump.“Atlanta will be one of the earlier sore spots, along with eastern Tennessee, and perhaps the Carolinas,” said De Haan.The Northeast can secure gasoline shipments from Europe but it will come at an increasing cost the longer the pipeline stays shut.“The longer it lasts, the more bullish it will be for refined products on the East Coast,” said Warren Patterson, head of commodities strategy at ING Groep NV. “This will likely also drag European product prices higher, as we see more waterborne cargoes needing to go into the U.S. East Coast to meet the shortfall.”Read More: Restarting U.S. Pipeline Hit by Cyberattack May Not Be EasyAn alternative might be to use the Kinder Morgan-operated Plantation Pipeline, though it only extends as far north Washington D.C. Its capacity at 720,000 barrels a day is far short of Colonial’s and already has its own shippers moving supplies.In the meantime, fuel producers including Marathon Petroleum Corp. are weighing alternatives for how to ship their products to the Northeast.Inventories offer minimal cover, ClearView Energy Partners said in a research note. Tankers leaving Rotterdam could take up to 14 days to make the trip to the New York Harbor. The Midwest could theoretically send some of its supplies to the East Coast via rail and barge, but the region’s inventories are tighter than in previous years, ClearView said.“The Colonial outage comes at a critical juncture for the recovering U.S. economy: the start of the summer driving season,” ClearView said. “We therefore think lawmakers could begin a ‘blame game’ immediately, and a sustained disruption that leads to a significant pump price spike could increase prospects of domestic policy interventions.”(Updates with potential impact to retail gasoline prices in first 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. Business Reuters 210509 09h02m Clubhouse launches Android app as downloads plummet The app, which spiked in popularity early this year after celebrity billionaire Elon Musk and others appeared in audio chats, has sparked copy cats from startups and larger rivals including Facebook Inc and Twitter Inc. The long anticipated Android launch is expected to reach more new users globally. The Android version will reach other English-speaking markets and then the rest of the globe days and weeks after the U.S. market beta launch. U.S. Reuters 210509 09h02m Raimondo says 'all hands on deck' in U.S. government to avoid supply disruptions after Colonial hack U.S. government officials are working closely with top U.S. fuel pipeline operator Colonial Pipeline to recover from a ransomware cyberattack that forced it to shut down, hoping to avoid a disruption in supply, Commerce Secretary Gina Raimondo said on Sunday. "It's an all hands on deck effort right now," Raimondo said on CBS' "Face the Nation" program. Business Bloomberg 210509 08h02m Pipeline Hack May Push U.S. Pump Prices to $3 Ahead of Holiday (Bloomberg) -- U.S. gasoline prices may surge to their highest since 2014 even faster than previously expected as a cyberattack disrupts operations on the nation’s biggest oil fuel pipeline.The national average stood at $2.96 a gallon Friday, according to auto club AAA. With national gasoline inventories ample, the pump price wasn’t expected to tick much higher until Memorial Day at the end of May, which is traditionally viewed as the start of the U.S. summer driving season. Gasoline last bested the $3 average in October 2014.Price increases in road fuel may stoke even more worries about inflation as commodities from oil to lumber to corn skyrocket with the world’s major economies emerging from pandemic restrictions. The oil industry was gearing up to meet what is expected to be a surge in fuel demand as newly vaccinated Americans take to the roadways and skies this summer. The downed Colonial Pipeline is a key artery for gasoline, diesel and jet fuel produced by oil refiners on the U.S. Gulf Coast and major metropolitan areas between Atlanta and New York.“It all comes down to the duration of the disruption. If it lasts longer, it’s likely to result in some location dislocations -- shortage of oil products in the East Coast, abundance in the Gulf region. That will support New York product prices and might attract more oil products from abroad,” said Giovanni Staunovo, commodity analyst at UBS Group AG.To be certain, New York was well supplied with fuel ahead of the attack and could weather the upset if missing fuel is replaced or the line restarts quickly. East Coast gasoline stockpiles at the end of April were near five-year seasonal averages.The trade in gasoline and crude futures starting late Sunday and cash-market and rack gasoline Monday will tell more of the tale. The June RBOB contract settled up 0.6% Friday at above $2.12/gallon.Colonial operates Line 1 for gasoline and Line 2 for diesel and jet fuel from Pasadena, Texas -- less than 15 miles from some of the nation’s largest refineries -- to Greensboro, North Carolina, at a combined 2.5 million barrels a day. They merge at Greensboro to feed a line carrying about 900,000 barrels a day into New York Harbor, and other East Coast pipelines.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. Howell date : 210509 09h02m07s Business Reuters 210509 08h54m UPDATE 1-Dogecoin loses third of price after Elon Musk calls it a 'hustle' on 'SNL' Dogecoin lost more than a third of its price on Sunday, after Tesla chief and cryptocurrency supporter Elon Musk called it a 'hustle' during his guest-host spot https://twitter.com/cryptoafricaedu/status/1391373668744372225?s=21 on the "Saturday Night Live" comedy sketch TV show. Dogecoin was quoted as low as $0.416 on crypto exchange Binance https://www.binance.com/en/trade/DOGE_USDT?type=spot, down 36% from levels around $0.65 before the show. The billionaire Tesla Inc chief executive hosted the SNL show at 11:30 p.m. EDT on Saturday (0330 GMT on Sunday). Business Bloomberg 210509 08h12m U.S. Fuel Suppliers Work to Avert Shortages From Pipeline Attack (Bloomberg) -- U.S. gasoline and diesel suppliers are trying to stave off fuel shortages from Atlanta to New York with barges and tankers after a ransomware attack shut down the nation’s biggest fuel pipeline.Traders and fuel shippers are seeking vessels to deliver gasoline that would have otherwise been shipped on the Colonial Pipeline system, according to people familiar with the matter. Others are securing tankers to temporarily store gasoline in the U.S. Gulf in the event of a prolonged shutdown, they said, asking not to be identified because the information isn’t public. Colonial Pipeline halted all operations on its system late Friday after suffering a cyberattack that affected some of its IT systems. The company has said it’s working to restore operations but has given no timeline for a restart. The attack comes just as the nation’s energy industry is preparing to meet stronger fuel demand from summer travel. U.S. gasoline consumption has steadily recovered this year as the nation’s most populous states emerge from lockdowns and ease restrictions. Americans are once again commuting to the office, planning major travel for the first time and booking flights. A prolonged shutdown of system threatens to send gasoline prices skyrocketing and could stall efforts by refiners to return from a pandemic that decimated oil demand last year.Colonial was just the latest example of critical infrastructure being targeted by ransomware. Hackers are increasingly attempting to infiltrate essential services such as electric grids and hospitals. The escalating threats prompted the White House to respond last month with a plan to increase security at utilities and their suppliers. Pipelines are a specific concern because of the central role they play in the U.S. economy.The Colonial pipeline is a critical source of gasoline, diesel and jet fuel to the East Coast from the nation’s refining belt along the U.S. Gulf Coast. It has the capacity to send about 2.5 million barrels a day on its system from Houston as far as North Carolina, and another 900,000 barrels a day to New York.The attack appeared to use a ransomware group called DarkSide, according to Allan Liska, senior threat analyst at cybersecurity firm Recorded Future. The cybersecurity firm FireEye Inc. said its Mandiant incident response division was assisting with the investigation.Ransomware cases involve hackers seeding networks with malicious software that encrypts the data and leaves the machines locked until the victims pay the extortion fee. This would be the biggest attack of its kind on a U.S. fuel pipeline.A key concern at present is meeting product demand in the U.S. Southeast, which is especially dependent on the Colonial system, people familiar with the situation said. The Northeast can secure gasoline shipments from Europe, they said, but it will come at an increasing cost the longer the pipeline stays shut.“The longer it lasts, the more bullish it will be for refined products on the East Coast,” said Warren Patterson, head of commodities strategy at ING Groep NV. “This will likely also drag European product prices higher, as we see more waterborne cargoes needing to go into the U.S. East Coast to meet the shortfall.”Read More: Restarting U.S. Pipeline Hit by Cyberattack May Not Be EasyAn alternative might be to use the Kinder Morgan-operated Plantation Pipeline, though it only extends as far north Washington D.C. Its capacity at 720,000 barrels a day is far short of Colonial’s and already has its own shippers moving supplies. In the meantime, fuel producers including Marathon Petroleum Corp. are weighing alternatives for how to ship their products to the Northeast.Inventories offer minimal cover, ClearView Energy Partners said in a research note. Tankers leaving Rotterdam could take up to 14 days to make the trip to the New York Harbor. The Midwest could theoretically send some of its supplies to the East Coast via rail and barge, but the region’s inventories are tighter than in previous years, ClearView said.“The Colonial outage comes at a critical juncture for the recovering U.S. economy: the start of the summer driving season,” ClearView said. “We therefore think lawmakers could begin a ‘blame game’ immediately, and a sustained disruption that leads to a significant pump price spike could increase prospects of domestic policy interventions.”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. Business U.S. Reuters 210509 07h02m U.S. turning the corner on coronavirus pandemic -White House's Zients The United States is turning the corner on the coronavirus pandemic and U.S. health officials are now focused on getting more Americans vaccinated, the White House COVID-19 response coordinator Jeff Zients said on Sunday. The task now is to continue building confidence in vaccines and get enough Americans vaccinated to mitigate the spread of the virus and its variants, he said. Business Reuters 210509 07h02m India's Hero MotoCorp extends shutdown at its plants due to pandemic India's largest motorbike maker, Hero MotoCorp Ltd , extended a shutdown at its manufacturing facilities across India till May 16, a day after Maruti Suzuki India Ltd announced a similar move, citing the COVID-19 pandemic. Hero's decision was made to ensure safety of its workforce and to break the virus chain, the company said in a statement on Sunday. Hero MotoCorp had suspended its manufacturing operations in April. Business Bloomberg 210509 07h02m Inflation Debate Hits Emerging Markets With Pimco Standing Firm (Bloomberg) -- Investors are about to get a snapshot of any price pressures building across the developing world -- the fallout of the unprecedented stimulus that’s been unleashed to revive the global economy.Heavyweights including Brazil, China and India will report inflation data this week against a backdrop of quickening growth that’s being fueled by months of easy money and fiscal largess. Citigroup Inc.’s inflation-surprise index for emerging markets spiked last month to its highest since 2008, a sign that investors may be underestimating the scale of the resurgence.Long the scourge of debt holders and a threat to currency stability, accelerating inflation has already forced policy makers in Brazil and Russia to raise borrowing costs. The Czech central bank last week signaled it could follow suit in mid-year, while Turkey’s monetary authority has pledged to keep rates elevated until there is a significant slowdown in price gains.“Inflation has reared its head as a key market narrative once again,” said Emily Weis, a Boston-based macro strategist at State Street Global Markets. “This is partly driven by concerns around extreme monetary accommodation, fiscal largess and their combined impact on the green shoots of recovery.”The prospect of tighter monetary conditions in emerging markets still hasn’t changed the overall calculus for many investors, with behemoths including Pacific Investment Management Co. and BlackRock Inc. focusing on the growth story instead. Developing-nation inflation remains near a record low, with the economic rebound making assets look “increasingly interesting,” according to Dan Ivascyn, Pimco’s group chief investment officer in Newport Beach, California.Yet there’s a growing sense that the forces behind the recovery will eventually feed through to higher prices if left unchecked. One harbinger could be the rally in commodities, with a key index of raw materials this month jumping to a five-year high.“If the stimulus continues, at some point it will become inflationary,” said Sanjiv Bhatia, the chief investment officer at Pembroke Emerging Markets in London. “At some point, we believe it will become a problem.”For now, assurances from the Federal Reserve that inflation in the U.S. is unlikely to get out of control have supported the bulls. The Fed appears in no rush to raise interest rates, a move that would siphon capital out of emerging economies currently enjoying the windfall from U.S. stimulus.That major central banks currently view inflation as transitory should boost developing-nation currencies as a whole, according to Henrik Gullberg, a London-based macro strategist at Coex Partners Ltd.MSCI Inc.’s emerging-market currency index has climbed to a record high, while the benchmark equity gauge just posted its biggest two-day rally in almost two weeks amid a rally in energy and technology shares. On Friday, risk assets got further support when U.S. job growth data significantly undershot forecasts.“On the one hand, the valuations of growth stocks look meaningfully less demanding after recent underperformance coupled with earnings upgrades,” said Kate Moore, the head of thematic strategy at BlackRock in New York. “On the other, rising inflationary pressures from the broad economic restart and low inventories should be supportive of cyclicals and commodity producers.”Inflation:Data on Tuesday may show China’s inflation accelerated 1% y/y in April from 0.4% a month prior, according to a Bloomberg surveyThe offshore yuan climbed to its strongest since February last weekIn Brazil, the median estimate in a Bloomberg survey shows inflation probably accelerated to 6.74% y/y in AprilConsumer prices probably rose 4.1% y/y in India in April, slowing from 5.52% the previous monthWhile inflation may have slipped below 4% in April, it’s likely to be transitory as base effects turn unfavorable in May, Citigroup economists led by Johanna Chua wrote in a reportThe rupee is the worst performer in Asia this quarter as the country battles its biggest wave of Covid-19 infectionsArgentina and Israel will also release inflation figures next weekOther Events:The Turkish lira may face renewed pressure should current-account data on Tuesday show the deficit is widening. The gap may have risen to $3.8 billion in March, according to economists surveyed by BloombergRussia, Colombia and Poland will also announce current-account or trade balances next weekThe central banks of Mexico, Chile, the Philippines, Chile, Peru and Uruguay are all expected to leave borrowing costs unchangedMalaysia and the Philippines will probably report Tuesday that their economies remained in contraction during the first quarter, highlighting a growth divergence with Southeast Asian economies lagging behind northern counterparts, according to Bloomberg EconomicsTighter mobility curbs after a surge in coronavirus infections will also weigh on their outlooks this quarterBenchmark stock indexes in both countries have fallen this year and are among the worst performers in AsiaSouth Korea reports its latest unemployment rate on WednesdayIn Colombia, a reading of retail sales for March comes on Thursday and first-quarter gross domestic product is due on FridayThe peso slid the most among emerging-market currencies last week amid days of violent protests, which a central banker warned will hurt the economic recoveryFor 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. Business Bloomberg 210509 07h02m Days of Torrid Dogecoin Gains Erased as Musk ‘SNL’ Episode Airs (Bloomberg) -- Dogecoin, the fifth most valuable cryptocurrency, retreated from an all-time high after billionaire Elon Musk, appearing on “Saturday Night Live,” jokingly called it “a hustle.”The altcoin had surpassed 73 cents on Saturday before dropping to 46.01 cents as of 8:08 a.m. in New York Sunday, a 35% decline in 24 hours, according to pricing from CoinGecko.Dogecoin hadn’t been below 50 cents since May 4, amid a rally in anticipation of the “SNL” episode. The activity may also have affected Robinhood, which said earlier that it was having some issues with crypto trading, citing high volume and volatility.Musk was asked repeatedly during the “Weekend Update” segment to explain what Dogecoin is. After reciting multiple facts about the cryptocurrency in the character of a financial expert, he was asked if Dogecoin was a “hustle.” He responded, “yeah, it’s a hustle.”Musk, 49, is the world’s second-richest person with a net worth of $183.9 billion, according to the Bloomberg Billionaires Index. In his monologue, he said he’s the first person with Asperger’s to host the show; Dan Aykroyd actually was. Musk helped drive Dogecoin to new heights on Friday and Saturday after tweeting a picture of himself and a Shiba Inu, the dog breed that lends its image to the altcoin, on the set of the NBC show.Dogecoin, a cryptocurrency that started as a joke in 2013, has surged more than 16,000% in the past year, according to CoinGecko. Musk has been among its biggest boosters, along with Mark Cuban, Snoop Dogg and Gene Simmons. Dogecoin traders around the world organized watch parties for the “SNL” episode.An earlier Dogecoin reference came during the opening monologue where his mother, Maye Musk, joined him on stage. The author and model said she was excited about her Mother’s Day gift, and she hoped it’s not Dogecoin -- to which he said, “it is.”In the character of the financial expert, Musk also called Dogecoin “the future of currency, it’s an unstoppable financial vehicle that’s going to take over the world.”Meanwhile, DCG Holdco Inc. CEO Barry Silbert posted on Twitter hours before the “SNL” episode that he’d gone short Dogecoin via a leveraged token, and that it was time for people to convert Dogecoin into Bitcoin. He later added that if Dogecoin hits $1 by May 31, $1 million would be donated “to a charitable cause selected by the Dogecoin community.”Bitcoin, the largest cryptocurrency, retreated more than 1% to about $58,000. Musk’s Tesla Inc. announced in February that it had bought $1.5 billion of Bitcoin, and the head of the electric-car giant himself has spoken of the digital asset in favorable terms.Read more: It’s Hard to Take Dogecoin Seriously, But the Doge Doesn’t CareCryptocurrencies are “promising, but please invest with caution,” Musk tweeted on Friday, linking to a video that showed him talking about the merits of crypto, particularly Dogecoin. That followed months of Twitter posts from Musk about the likes of Bitcoin and Dogecoin, almost all favorable.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. Howell date : 210508 20h03m47s Business Bloomberg 210508 19h26m Ransomware Attack Shuts Down Biggest U.S. Gasoline Pipeline (Bloomberg) -- The operator of the biggest gasoline pipeline in the U.S. shut down operations late Friday following a ransomware attack that threatens to roil energy markets and upend the supply of gas and diesel to the East Coast.Colonial Pipeline said in a statement Saturday that it “proactively took certain systems offline to contain the threat, which has temporarily halted all pipeline operations, and affected some of our IT systems.” It’s working to get business back to normal.The cybersecurity firm FireEye Inc. said its Mandiant incident response division is assisting with the investigation. President Joe Biden, who’s spending the weekend at Camp David, was briefed on the incident Saturday morning, the White House said.Colonial is a key artery for the eastern half of the U.S. It’s the main source of gasoline, diesel and jet fuel for the East Coast with capacity of about 2.5 million barrels a day on its system from Houston as far as North Carolina, and another 900,000 barrels a day to New York.The attack appeared to use a ransomware group called DarkSide, according to Allan Liska, senior threat analyst at cybersecurity firm Recorded Future.Hacking threats to critical infrastructure have been growing, prompting the White House to respond last month with a plan to try to increase the security of utilities and their suppliers. Pipelines are a specific concern because they play a central role in so many parts of the U.S. economy.The latest attack comes as the nation’s energy industry gears up for summer travel and stronger fuel demand as pandemic economic restrictions are eased. It’s also an unpleasant reminder of how a cyber-attack brought down the communications systems of several U.S. natural gas pipelines operators in 2018.The federal government is assessing the implications of the incident, including how to avoid disruptions to supply and help the company restore operations as quickly as possible, a White House spokesperson said.The U.S. Department of Energy said it’s “monitoring any potential impacts” to supplies, while the Federal Energy Regulatory Commission said it’s in “communication with other federal agencies, and we are working closely with them to monitor developments” following the cyber-attack. The federal government is also working with state and local authorities on potential additional steps.Travel TimeWhen Colonial is running, fuel travels between three and five miles per hour through it. But a long-term shutdown could leave the Northwest more dependent on supplies delivered by tanker. And it could take those cargoes 10 to 14 days to make the voyage to the New York harbor, according to a research note from ClearView Energy Partners.Other options, such as tapping an emergency federal stockpile of refined products in the Northeast, are “little more than a Band-Aid,” ClearView said. That gasoline supply reserve holds just 1 million barrels of gasoline in New York, Boston and Maine, the analysts noted.Ransomware cases involve hackers seeding networks with malicious software that encrypts the data and leaves the machines locked until the victims pay the extortion fee, which can range from a few hundred dollars to millions of dollars in cryptocurrency.Utilities’ information technology networks, which run email and other routine functions, and operational technology networks, which control the actual functioning of the delivery of electricity or natural gas, are typically kept mostly separate, which is what makes Colonial’s decision to temporarily shut down both so unusual.An April 2 blog by the cybersecurity firm Cybereason said the people behind DarkSide follow the “double extortion” trend in ransomware, meaning they not only encrypt user data but exfiltrate it and make it public if a ransom payment isn’t made.Many companies pay the fees and recover their data. But even when that occurs, they may shut down large parts of their networks as a precaution while they restore essential services and hunt for any signs that the hackers had accessed sensitive systems for other reasons including espionage or further destructive attacks.Wide-Ranging ThreatThe Cybersecurity & Infrastructure Security Agency is “engaged with the company and our interagency partners regarding the situation,” said Eric Goldstein, executive assistant director of CISA’s cybersecurity division. “This underscores the threat that ransomware poses to organizations regardless of size or sector,” he said.Officials at the Federal Bureau of Investigation and the Department of Justice didn’t respond to requests for comment.Senator Edward Markey, a Massachusetts Democrat, said the U.S. had been left vulnerable by “an understaffed, under-prepared Transportation Security Administration.”“We cannot ignore the longstanding inadequacies that allowed for, and enabled, cyber intrusions into our critical infrastructure,” Markey said in a statement.GOP Senator Ben Sasse of Nebraska said the latest intrusion showed that an infrastructure spending package soon to be considered by Congress, should put “the hardening of critical infrastructure” front and center.Technical IssuesColonial gave an indication during Friday trading that it was having network issues, while two people familiar said they were having a hard time submitting refined product batches, updates or changes to batch deliveries and nominations using their Colonial Pipeline website access. The Colonial website went offline whenever the people tried.At the time, Colonial staff informed customers by phone about the technical issues but didn’t say what was causing them.The disruption could roil fuel markets Monday if it’s not fixed. The refining margin for a combined barrel of gasoline and diesel, the so-called 321 crack spread, rose 2% Friday after the Colonial interruption. Nymex gasoline futures rose 1.32 cents to settle at $2.1269 per gallon.The main two Colonial lines out of the Houston refining hub -- Lines 1 and 2 from Pasadena, Texas, to Greensboro, North Carolina -- have not been full for months with U.S. fuel demand falling to its lowest in decades during the pandemic. That means fuel markets served by the line might be spared supply shortages.The Colonial system is managed from suburban Atlanta and is jointly owned by Koch and several other energy and investor interests. East Coast fuel markets also are supplied by the Plantation pipeline jointly owned by Kinder Morgan and Exxon; East Coast refineries; and fuel shipments from Eastern Canada and Europe.(Adds FERC’s comment in ninth 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. Business Bloomberg 210508 18h03m ByteDance Hires Thousands to Challenge E-Commerce King Alibaba (Bloomberg) -- Zhang Yiming built ByteDance Ltd. into the world’s most valuable private company via a string of blockbuster apps like TikTok that challenged Facebook and other incumbents on their own turf. His latest target: Alibaba.The 38-year-old AI coding genius, searching for ByteDance’s next big act, has set his sights on China’s $1.7 trillion e-commerce arena. The co-founder has hired thousands of staff and roped in big-name sponsors like Xiaomi Corp. impresario Lei Jun to drive what he calls his next “major breakthrough” into global business -- selling stuff to consumers via its addictive short videos and livestreams. That endeavor will test not just Zhang’s magic touch with app creation and ByteDance’s AI wizardry, but also investor reception ahead of one of the tech world’s most hotly anticipated IPOs.His startup is already starting to make waves in an industry long controlled by Jack Ma’s Alibaba Group Holding Ltd. and JD.com Inc. It sold about $26 billion worth of make-up, clothing and other merchandise in 2020, achieving in its maiden year what Alibaba’s Taobao took six years to accomplish. It’s shooting for more than $185 billion by 2022. Douyin, TikTok’s Chinese twin, is expected to contribute more than half of the firm’s $40 billion domestic ad sales this year, driven in part by e-commerce.“Short video platforms have so much traffic that they can basically do any business,” said Shawn Yang, managing director of Blue Lotus Capital Advisors. “Douyin is not only in ads, but also live-streaming, e-commerce, local life services and search. This has a lot of room for imagination.”A burgeoning e-commerce business could help the firm surpass its $250 billion valuation when it goes public, countering concerns around Beijing’s crackdown on the country’s internet behemoths. Preparations are said to be underway for a listing that would be one of the world’s most anticipated debuts. While ByteDance won’t handle sales or merchandise itself, it hopes to sell more ads to merchants, boost traffic and take a cut of business.The internet giant is a late entrant to China’s social commerce scene, where influencers tout products to fans like a Gen-Z version of the Home Shopping Network. The format, pioneered by Alibaba as a marketing tool in 2016, developed a life of its own last year when Covid-19 spurred demand for at-home entertainment. Last year, Alibaba’s Taobao Live generated over 400 billion yuan ($62 billion) of gross merchandise value and Kuaishou Technology’s social platforms hosted 381 billion yuan of transactions, more than double Douyin’s.ByteDance is counting on its artificial intelligence-driven, interest-based recommendations to help its e-commerce business catch up. In a splashy coming-out party for the one-year-old business last month, executives explained that the company intends to replicate its success with using AI algorithms to feed users content in online shopping. By scrolling an endless stream of social content, now connected with physical goods more than ever, Douyin users won’t be able to resist their impulse to buy, they said.It’s “sort of similar to shopping on the street,” Bob Kang, Douyin’s 35-year-old e-commerce chief, told an audience of hundreds at the Guangzhou event. “As people get richer, they don’t go to shopping malls or boutique stores with specific things in mind, they just buy if they see something they like.”Kang, a former Baidu Inc. engineer who was poached by ByteDance in 2017, is one of a slew of fast-rising young lieutenants tasked by Zhang to break new ground for the company. He was previously the tech lead for ByteDance’s Helo app, one of India’s most-used social platforms for sharing content like videos -- until the South Asian nation shut it down along with dozens of Chinese apps last June on national security grounds.Since Kang took over as e-commerce head, Douyin has banned live-streamers from selling items listed on third-party sites and invited them to open their own in-app stores, preventing rivals like Alibaba and JD.com Inc. from profiting off its traffic. He grew a team of customer support staff from just one hundred to about 1,900 to fight counterfeits and is hiring for more than 900 other positions to support the business. ByteDance also has an online matchmaking system that helps connect merchants with influencers and their agencies, and it’s set up physical bases to house live streamers and merchandise, similar to what Alibaba does.The initiative gained traction from celebrity endorsers like Lei, the Xiaomi founder who has hosted livestreams promoting his Mi TVs and smartphones. Luo Yonghao, a once high-flying entrepreneur who had sought to challenge Apple Inc. with his smartphone business, is another top influencer, shifting more than $17 million of merchandise in his first-ever livestream on the platform.Smaller merchants are following their lead, like Zhou Huang, who set up a Douyin storefront for her jewelry business in October, bypassing conventional platforms like Alibaba’s Taobao. Instead of stumping up hefty fees to platform operators for traffic, she’s managed to amass a fan base of about 20,000 by creating videos that offer practical tips like how to choose the right size when buying a bracelet online.“It’s challenging for brand new merchants like me to attract customers on Taobao,” says Huang, whose Douyin store broke even after just three months. “Sometimes, people come to our store not for shopping, but for entertainment. But once we have enough visitors, we can make a sale.”ByteDance is lending a hand. In Foshan, Huang and 200 other jewelry sellers are coached on everything from registering a store and marketing to shooting quality videos. Around-the-clock technical assistance is available: Huang says that whenever her livestream channel goes down, ByteDance technicians immediately come to the rescue.Huang is one of about 1 million creators who have generated e-commerce sales on Douyin as of January, drawn to the platform’s 600 million-plus daily users. The platform -- which brings in commission fees from merchants as a new revenue stream -- aims to have more than a thousand brands this year join the likes of Suning.com Co. in setting up stores on Douyin, and that number could increase fivefold by 2022, the company predicted in an internal memo. GMV may grow to as much as 600 billion yuan this year before doubling to 1.2 trillion yuan in 2022.Read more: Leaked ByteDance Memo Shows Blockbuster Revenue Projections ByteDance’s ambitions aren’t limited to Alibaba. The firm has also started to let users book hotels and restaurants through Douyin, offering lifestyle services similar to super-apps like Meituan and Tencent’s WeChat.Douyin’s e-commerce foray in China may offer a roadmap for TikTok, which has begun testing the waters in online shopping through tie-ups with WalMart Inc. and Canandian e-commerce firm Shopify Inc. Back in December, Zhang told global employees that e-commerce, when combined with live-streaming and short videos, offers an even bigger opportunity outside China, according to attendees who asked not to be identified. The company has also been quietly building a team of engineers in Singapore to grow TikTok’s nascent e-commerce operations.ByteDance’s push into online shopping comes as its other businesses face headwinds. To grow video gaming, ByteDance has been buying development studios but churning out blockbuster hits like Tencent Holdings Ltd.’s Honor of Kings could take years and China has previously cracked down on the industry in fits and starts. In online tutoring, regulators have sought to rein in excess marketing and competition is fierce against a slew of deep-pocketed startups like Alibaba-backed Zuoyebang.In April, Zhang’s firm was one of 34 corporations ordered by the antitrust watchdog to conduct internal investigations and rectify excesses. And though its payment service has only just gotten off the ground, ByteDance and its peers were slapped with wide-ranging restrictions on their fast-growing financial operations following a meeting with regulators including the central bank last month.But the same scrutiny could help the TikTok owner make inroads into China e-commerce, the largest online marketplace in the world. Alibaba has held off rivals JD.com and Pinduoduo Inc. over the past decade allegedly through practices like forcing merchants into exclusive arrangements. Regulators have since levied a record $2.8 billion fine on Jack Ma’s flagship firm and made eradicating “pick one from two” one of the main goals of its antitrust campaign, creating room for up-and-comers like ByteDance.For now, the biggest and most immediate boost from ByteDance’s expansion into e-commerce is in advertising revenue, which still accounts for the bulk of its earnings. As the number of merchants on Douyin increases, so has their marketing spending within the platform. The firm projects that e-commerce may surpass gaming to become the biggest contributor to ad sales. At rival Kuaishou, merchants contributed about 20%, the company said in March.“It’s more about getting greater share of advertising spending from brands that would otherwise be spending money on platforms like Alibaba,” said Michael Norris, a senior analyst with Shanghai-based market research firm AgencyChina. “This is where the threat to Alibaba comes from.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. World Reuters 210508 16h03m UPDATE 1-Labour's Sadiq Khan re-elected London mayor Sadiq Khan was re-elected London Mayor on Saturday as had been widely expected, providing some joy to the opposition Labour Party which has suffered a series of disappointing results in other local elections. Khan, who became the first Muslim to head a major Western capital after his victory in 2016, saw off his main challenger, Shaun Bailey, the candidate from Prime Minister Boris Johnson's Conservative Party. He won by 55.2% to Bailey's 44.8% in a result which had been widely predicted, although his winning margin was smaller than his victory five years ago. Business Reuters 210508 16h03m Germany's Remondis says wishes to buy up to 40% of the "New Suez" German recycling group Remondis said on Saturday it offered to take a minority stake of up to 40% in the "new Suez" that will hold water management firm Suez's French water assets and some international pieces after its takeover by bigger peer Veolia. On April 12 Veolia and Suez announced a 13 billion euro ($15.81 billion) merger under which - in part to ease antitrust problems - some of Suez's assets will be spun off into a new entity with around 7 billion euros in revenue. "Remondis wishes to be able to participate in the round table of the new Suez alongside French shareholders Meridiam and Caisse des Depots," the German group said in a statement late on Saturday. World Bloomberg 210508 15h03m Colonial Is Just the Latest Energy Asset Hit by Cyber-Attacks (Bloomberg) -- A cyber-attack has never taken down a U.S. fuel pipeline quite as big as the Colonial Pipeline. It’s the nation’s largest gasoline, diesel and jet fuel system and a critical source of fuel supply for the U.S. Northeast.But this isn’t the first time hackers have hit energy assets in America and beyond in recent years, at times disrupting services and upending operations.Two-Day Gas OutageIn February 2020, the U.S. Department of Homeland Security issued an alert about a ransomware attack that brought down a U.S. natural gas compressor facility for two days.The agency didn’t say which facility was targeted, when the attack occurred or who was behind it. But it did offer some details: Hackers sent emails with a malicious link, known as a phishing attack, to gain control of the facility’s information technology system.It appeared likely that the attacker explored the facility’s network to “identify critical assets” before executing the ransomware attack, Nathan Brubaker, a senior manager at the cybersecurity firm FireEye Inc., said at the time. This tactic, which has become increasingly popular among hackers, makes it “possible for the attacker to disable security processes that would normally be enough to detect known ransomware indicators,” he said.Pemex Systems DownMexico’s oil giant Petroleos Mexicanos reported a cyber-attack in November 2019 that crippled its computer systems. The company’s communication systems were affected for weeks afterwards.For some employees, Internet access was limited, some computer files weren’t accessible and they had difficulty receiving external emails, people in Pemex’s finance, legal and refining departments said at the time. The hacker behind the attack tried to squeeze almost $5 million out of the company. Pemex at the time refused to pay the ransom.Gas Communications TargetedIn April 2018, several U.S. natural gas pipeline operators including Energy Transfer Partners LP and TransCanada Corp. reported that a third-party electronic communications system had been hit with a cyber-attack. Five of the companies confirmed service disruptions from the hacking.Though the cyber-attack didn’t disrupt the supply of gas to U.S. homes and businesses, it showed how even a minor attack can have ripple effects. The attack forced utilities to warn of widespread billing delays and made it difficult for analysts and traders to predict a key government report on gas stockpiles.Ukraine GridIn December 2016, hackers took down almost a quarter of Ukraine’s power grid. Officials blamed Russians at the time for tampering with the utilities’ software and then jamming the power companies’ phone lines to keep customers from alerting anyone.The hack knocked out at least 30 of the country’s 135 power substations for about six hours. Cybersecurity firms working to trace its origins say the attack occurred in two stages. First, hackers used malware to direct utilities’ industrial control computers to disconnect the substations. Then they inserted a wiper virus that made the computers inoperable.Saudi AramcoIn 2012, Saudi Arabia blamed unidentified people based outside the kingdom for a cyber-attack against state-owned Saudi Arabian Oil Co. that aimed to disrupt production from the world’s largest exporter of crude.More than 30,000 computers were compromised or affected by a so-called “spear-phishing” attack, raising concerns about the threat hackers may pose to output at the company also known as Saudi Aramco. A spokesman for the Interior Ministry, declined at the time to identify any of the “several foreign countries” from which the attack originated.Energy companies from electric utilities, to power-grid operators to oil and gas pipeline operators have warned that cyberattacks are becoming more and more prevalent. The largest U.S. power grid operator, PJM Interconnection LLC, has warned regulators that it’s facing increasing attacks. Last May, the U.K.’s grid data system was hacked, although electricity supplies weren’t affected. And in March, an attack against Europe’s association of grid operators, ENTSO-E, affected its internal office systems.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. World Reuters 210508 14h03m U.S. wants COVID vaccine patent waiver to benefit world, not boost China biotech The Biden administration is examining ways to ensure that a waiver of COVID-19 vaccine patents to aid poor countries will not hand sensitive U.S. biopharmaceutical technology to China and Russia, responding to a chorus of concerns, U.S. and industry officials say. President Joe Biden on Wednesday backed the U.S. entering negotiations at the World Trade Organization for the waiver of intellectual property rights as a means to boost vaccine supplies by allowing poorer countries to make their own. Howell date : 210508 18h03m09s World Reuters 210508 16h03m UPDATE 1-Labour's Sadiq Khan re-elected London mayor Sadiq Khan was re-elected London Mayor on Saturday as had been widely expected, providing some joy to the opposition Labour Party which has suffered a series of disappointing results in other local elections. Khan, who became the first Muslim to head a major Western capital after his victory in 2016, saw off his main challenger, Shaun Bailey, the candidate from Prime Minister Boris Johnson's Conservative Party. He won by 55.2% to Bailey's 44.8% in a result which had been widely predicted, although his winning margin was smaller than his victory five years ago. World Bloomberg 210508 15h03m Colonial Is Just the Latest Energy Asset Hit by Cyber-Attacks (Bloomberg) -- A cyber-attack has never taken down a U.S. fuel pipeline quite as big as the Colonial Pipeline. It’s the nation’s largest gasoline, diesel and jet fuel system and a critical source of fuel supply for the U.S. Northeast.But this isn’t the first time hackers have hit energy assets in America and beyond in recent years, at times disrupting services and upending operations.Two-Day Gas OutageIn February 2020, the U.S. Department of Homeland Security issued an alert about a ransomware attack that brought down a U.S. natural gas compressor facility for two days.The agency didn’t say which facility was targeted, when the attack occurred or who was behind it. But it did offer some details: Hackers sent emails with a malicious link, known as a phishing attack, to gain control of the facility’s information technology system.It appeared likely that the attacker explored the facility’s network to “identify critical assets” before executing the ransomware attack, Nathan Brubaker, a senior manager at the cybersecurity firm FireEye Inc., said at the time. This tactic, which has become increasingly popular among hackers, makes it “possible for the attacker to disable security processes that would normally be enough to detect known ransomware indicators,” he said.Pemex Systems DownMexico’s oil giant Petroleos Mexicanos reported a cyber-attack in November 2019 that crippled its computer systems. The company’s communication systems were affected for weeks afterwards.For some employees, Internet access was limited, some computer files weren’t accessible and they had difficulty receiving external emails, people in Pemex’s finance, legal and refining departments said at the time. The hacker behind the attack tried to squeeze almost $5 million out of the company. Pemex at the time refused to pay the ransom.Gas Communications TargetedIn April 2018, several U.S. natural gas pipeline operators including Energy Transfer Partners LP and TransCanada Corp. reported that a third-party electronic communications system had been hit with a cyber-attack. Five of the companies confirmed service disruptions from the hacking.Though the cyber-attack didn’t disrupt the supply of gas to U.S. homes and businesses, it showed how even a minor attack can have ripple effects. The attack forced utilities to warn of widespread billing delays and made it difficult for analysts and traders to predict a key government report on gas stockpiles.Ukraine GridIn December 2016, hackers took down almost a quarter of Ukraine’s power grid. Officials blamed Russians at the time for tampering with the utilities’ software and then jamming the power companies’ phone lines to keep customers from alerting anyone.The hack knocked out at least 30 of the country’s 135 power substations for about six hours. Cybersecurity firms working to trace its origins say the attack occurred in two stages. First, hackers used malware to direct utilities’ industrial control computers to disconnect the substations. Then they inserted a wiper virus that made the computers inoperable.Saudi AramcoIn 2012, Saudi Arabia blamed unidentified people based outside the kingdom for a cyber-attack against state-owned Saudi Arabian Oil Co. that aimed to disrupt production from the world’s largest exporter of crude.More than 30,000 computers were compromised or affected by a so-called “spear-phishing” attack, raising concerns about the threat hackers may pose to output at the company also known as Saudi Aramco. A spokesman for the Interior Ministry, declined at the time to identify any of the “several foreign countries” from which the attack originated.Energy companies from electric utilities, to power-grid operators to oil and gas pipeline operators have warned that cyberattacks are becoming more and more prevalent. The largest U.S. power grid operator, PJM Interconnection LLC, has warned regulators that it’s facing increasing attacks. Last May, the U.K.’s grid data system was hacked, although electricity supplies weren’t affected. And in March, an attack against Europe’s association of grid operators, ENTSO-E, affected its internal office systems.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. Business Bloomberg 210508 15h03m Ransomware Attack Shuts Down Biggest U.S. Gasoline Pipeline (Bloomberg) -- The operator of the biggest gasoline pipeline in the U.S. shut down operations late Friday following a ransomware attack that threatens to roil energy markets and upend the supply of gas and diesel to the East Coast.Colonial Pipeline said in a statement Saturday that it “proactively took certain systems offline to contain the threat, which has temporarily halted all pipeline operations, and affected some of our IT systems.” It’s working to get business back to normal.The cybersecurity firm FireEye Inc. said its Mandiant incident response division is assisting with the investigation. President Joe Biden, who’s spending the weekend at Camp David, was briefed on the incident Saturday morning, the White House said.Colonial is a key artery for the eastern half of the U.S. It’s the main source of gasoline, diesel and jet fuel for the East Coast with capacity of about 2.5 million barrels a day on its system from Houston as far as North Carolina, and another 900,000 barrels a day to New York.The attack appeared to use a ransomware group called DarkSide, according to Allan Liska, senior threat analyst at cybersecurity firm Recorded Future.Hacking threats to critical infrastructure have been growing, prompting the White House to respond last month with a plan to try to increase the security of utilities and their suppliers. Pipelines are a specific concern because they play a central role in so many parts of the U.S. economy.The latest attack comes as the nation’s energy industry gears up for summer travel and stronger fuel demand as pandemic economic restrictions are eased. It’s also an unpleasant reminder of how a cyber-attack brought down the communications systems of several U.S. natural gas pipelines operators in 2018.The federal government is assessing the implications of the incident, including how to avoid disruptions to supply and help the company restore operations as quickly as possible, a White House spokesperson said.The U.S. Department of Energy “is monitoring any potential impacts” to supplies, a spokesperson said in an emailed statement. The federal government is working with state and local authorities on potential additional steps.Travel TimeWhen Colonial is running, fuel travels between three and five miles per hour through it. But a long-term shutdown could leave the Northwest more dependent on supplies delivered by tanker. And it could take those cargoes 10 to 14 days to make the voyage to the New York harbor, according to a research note from ClearView Energy Partners.Other options, such as tapping an emergency federal stockpile of refined products in the Northeast, are “little more than a Band-Aid,” ClearView said. That gasoline supply reserve holds just 1 million barrels of gasoline in New York, Boston and Maine, the analysts noted.Ransomware cases involve hackers seeding networks with malicious software that encrypts the data and leaves the machines locked until the victims pay the extortion fee, which can range from a few hundred dollars to millions of dollars in cryptocurrency.Utilities’ information technology networks, which run email and other routine functions, and operational technology networks, which control the actual functioning of the delivery of electricity or natural gas, are typically kept mostly separate, which is what makes Colonial’s decision to temporarily shut down both so unusual.An April 2 blog by the cybersecurity firm Cybereason said the people behind DarkSide follow the “double extortion” trend in ransomware, meaning they not only encrypt user data but exfiltrate it and make it public if a ransom payment isn’t made.Many companies pay the fees and recover their data. But even when that occurs, they may shut down large parts of their networks as a precaution while they restore essential services and hunt for any signs that the hackers had accessed sensitive systems for other reasons including espionage or further destructive attacks.Wide-Ranging ThreatThe Cybersecurity & Infrastructure Security Agency is “engaged with the company and our interagency partners regarding the situation,” said Eric Goldstein, executive assistant director of CISA’s cybersecurity division. “This underscores the threat that ransomware poses to organizations regardless of size or sector,” he said.Officials at the Federal Bureau of Investigation and the Department of Justice didn’t respond to requests for comment.Senator Edward Markey, a Massachusetts Democrat, said the U.S. had been left vulnerable by “an understaffed, under-prepared Transportation Security Administration.”“We cannot ignore the longstanding inadequacies that allowed for, and enabled, cyber intrusions into our critical infrastructure,” Markey said in a statement.GOP Senator Ben Sasse of Nebraska said the latest intrusion showed that an infrastructure spending package soon to be considered by Congress, should put “the hardening of critical infrastructure” front and center.Technical IssuesColonial gave an indication during Friday trading that it was having network issues, while two people familiar said they were having a hard time submitting refined product batches, updates or changes to batch deliveries and nominations using their Colonial Pipeline website access. The Colonial website went offline whenever the people tried.At the time, Colonial staff informed customers by phone about the technical issues but didn’t say what was causing them.The disruption could roil fuel markets Monday if it’s not fixed. The refining margin for a combined barrel of gasoline and diesel, the so-called 321 crack spread, rose 2% Friday after the Colonial interruption. Nymex gasoline futures rose 1.32 cents to settle at $2.1269 per gallon.The main two Colonial lines out of the Houston refining hub -- Lines 1 and 2 from Pasadena, Texas, to Greensboro, North Carolina -- have not been full for months with U.S. fuel demand falling to its lowest in decades during the pandemic. That means fuel markets served by the line might be spared supply shortages.The Colonial system is managed from suburban Atlanta and is jointly owned by Koch and several other energy and investor interests. East Coast fuel markets also are supplied by the Plantation pipeline jointly owned by Kinder Morgan and Exxon; East Coast refineries; and fuel shipments from Eastern Canada and Europe.(Updates with FireEye, Biden briefed, analysis of impact from 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. World Reuters 210508 14h03m U.S. wants COVID vaccine patent waiver to benefit world, not boost China biotech The Biden administration is examining ways to ensure that a waiver of COVID-19 vaccine patents to aid poor countries will not hand sensitive U.S. biopharmaceutical technology to China and Russia, responding to a chorus of concerns, U.S. and industry officials say. President Joe Biden on Wednesday backed the U.S. entering negotiations at the World Trade Organization for the waiver of intellectual property rights as a means to boost vaccine supplies by allowing poorer countries to make their own. Business Bloomberg 210508 14h03m Bond Traders See a Path to 2% Yields Lurking in U.S. Jobs Miss (Bloomberg) -- The prospect of a rebound to 2% yields on the world’s benchmark bond is alive and well.Treasury-market bears found a deeper message within Friday’s weak employment report that’s emboldened a view that inflationary pressures are on the rise, and could boost rates to levels not seen since 2019. For Mark Holman at TwentyFour Asset Management, the sub-par April labor reading indicated companies will need to lift wages to entice people back into the labor force; he’s expecting a break of 2% on the 10-year this year.That level has come to symbolize a return to pre-pandemic normalcy in both markets and the economy. The wild ride in markets on Friday suggests Holman likely has company in his views. Ten-year yields initially plunged to a more than two-month low of 1.46%, then reversed to end the day at 1.58%. Meanwhile, a key market proxy of inflation expectations surged to a level last seen in 2013.“When you put all of this together, it confirms my slightly nervous view around inflation,” said Holman, TwentyFour Asset’s chief executive officer. “From a bondholder’s perspective, from my perspective, inflation is the bigger risk. We’ll see more bear steepening of the Treasury yield curve,” with long-term rates rising further.Steepening was evident Friday, with 10- and 30-year yields rising more than their shorter-maturity counterparts. Part of that underperformance may be a result of investors looking to next week, when they’ll need to digest a record-matching $126 billion slate of 3-, 10- and 30-year Treasury auctions. There’s also a robust serving of corporate issuance next week, with dealers calling for $40 billion to $45 billion of sales.The week ahead also brings consumer-price data, with a sharp annual acceleration forecast, although traders may dismiss the figure as resulting from a comparison to depressed levels of a year earlier, the so-called base effect.Pressure PercolatingThere were signs in the jobs report that rising demand could already be putting upward pressure on wages. Average hourly earnings rose in April from a year earlier, while a drop was forecast. A separate compensation measure released last week -- the employment cost index -- had its largest quarterly gain since 2007.Ten-year breakeven rates, a proxy for where investors see the annual consumer price inflation rate for the next decade, initially swooned on Friday before going on to surge to the highest since April 2013, at about 2.5%.Overall, the turbulence Friday made clear that the debate over the outlook for the bond market is still raging. Signs of big changes in positioning also seemed to add to the volatility and indicated a diversity of opinions on just how high yields can go.Dimitrios Delis, a managing director at Piper Sandler & Co., points to 30 years of data showing the 10-year yield has continued to drift lower with each passing decade to support his view that yields won’t unmoor.“The bull market for bonds remains intact,” he said. “We can get to 2%, but it won’t be sustainable.”Buying OpportunityEven if next week’s consumer-price report spurs a knee-jerk leap in rates, the move is likely to be brief -- presenting a buying opportunity for investors, he says. Bursts of demand emerged in other recent episodes to cap yields, like when the 10-year rate surged to 1.77% in late March, still its highest level of the past year.Matt Nest, portfolio manager and global head of active fixed income for State Street Global Advisors, agrees with Holman that labor “supply constraints” crimped hiring last month but says he’s purchasing Treasuries on price dips.He’s wary the U.S. is near “peak macro momentum” for the post-pandemic economic recovery and that long-term structural forces including demographics will keep rates low. He’s been “buying Treasuries to increase duration in portfolios.”What to WatchEconomic calendar:May 11: NFIB small business optimism; JOLTS job openingsMay 12: MBA mortgage applications; CPI; real average hourly earnings; monthly budget statementMay 13: PPI; jobless claims; Langer consumer comfortMay 14: Retail sales; import/export prices; Bloomberg May U.S. economic survey; industrial production; business inventories; University of Michigan gaugesFed calendar:May 10: Chicago Fed’s Charles EvansMay 11: New York Fed’s John Williams; Governor Lael Brainard; San Francisco Fed’s Mary Daly; Atlanta Fed’s Raphael Bostic; Philadelphia Fed’s Patrick Harker; Minneapolis Fed’s Neel KashkariMay 12: Vice Chair Richard Clarida; Harker; BosticMay 13: Barkin; Governor Chris Waller; St. Louis Fed’s James BullardMay 14: Dallas Fed’s Robert KaplanAuction schedule:May 10: 13-, 26-week billsMay 11: 42-day cash-management bills; three-year notesMay 12: 10-year notesMay 13: 4-, 8-week bills; 30-year bondsFor 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. Business Bloomberg 210508 14h03m Stock Bull Run Rolls On With JPMorgan Doubling Down on Reflation (Bloomberg) -- It’s all very simple. The economy isn’t strong enough for the Federal Reserve to taper stimulus, therefore stay-at-home tech shares will rally. And any efforts to heal the economy are likely to drive up inflation, meaning banks and airlines will benefit.Such is the can’t-lose logic underpinning American stocks in May 2021, almost 14 months since the pandemic crashed the market and left an 8 million-job hole in the U.S. labor market. To strategists at JPMorgan Chase, now is no time to doubt equities -- as long as Fed Chair Jerome Powell and President Joe Biden are in charge of the recovery.Anyone looking for confirmation need only recall Friday’s reaction to one of the largest downside misses on record for a U.S. employment report. Small caps surged, buoyed after President Biden used Friday’s numbers as justification for his multi-trillion fiscal aid package. The Nasdaq 100 also jumped as investors took April’s jobs whiff to mean that the Fed won’t be turning off the taps anytime soon, keeping rates low and helping to sustain sky-high tech valuations.“It doesn’t hurt equities to know the Fed is still the backdrop with lower rates for longer,” Ryan Detrick, chief market strategist at LPL Financial. “The stay-at-home and the tech names are going to get a little bit of a bid here on worries about the reopening but I think it’s more of a near-term blip and the bigger cyclical names will still take the baton over the coming months.”Federal Reserve Bank of Minneapolis President Neel Kashkari said as much, telling Bloomberg Television that Friday’s print validates the central bank’s new outcome-based approach -- the idea that policy makers won’t change anything based on economic forecasts, but actual data.Every sector in the S&P 500 rallied in the aftermath, with tech vying with cyclical energy and industrial shares for the top spot. The Russell 1000 Value Index and its growth counterpart both ended Friday 0.8% higher, after value outperformed every day this week.Meanwhile, JPMorgan strategists led by Marko Kolanovic are doubling down on the reflation trade. Just days after warning that many money managers need to quickly switch gears from their deflationary playbook or risk an “inflation shock,” Kolanovic recommended clients increase their tilt toward cyclical and value assets. He advised investors to cut holdings in cash and credit, using the money to buy commodities and stocks.“We expect a strong pickup in inflation this year, which the market will likely be slow to recognize and is poorly positioned for,” Kolanovic and his colleagues wrote in a note Friday. “A combination of boomy global growth and significant bottleneck price pressures should keep inflation on an upward trajectory while most central banks remain committed to their very accommodative stances and are looking through the inflation pickups.”And even for all the hand-wringing over inflation, the latest batch of quarterly reports suggests it’s already here and helping corporate America. Faced with rising prices for everything from lumber to oil to labor and computer chips, chief executive officers have cut costs and boosted prices for their products.As a result, first-quarter income from S&P 500 companies is jumping five times as fast as sales, data compiled by Bloomberg Intelligence show. Based on actual results and analyst estimates for those yet to report, profits probably surged to an all-time high of $48.21 a share. That’s 13% above the record set in 2018 of $42.79.The next test for the equity market’s cheer comes in Wednesday’s inflation data, which is expected to show that price pressures jumped by the most on an annual basis since 2011. But given that Fed chief Powell has said that the central bank will need to see a “string” of strong data before shifting their stance, it’s likely that April’s payroll miss was a big enough blow to keep them on the sidelines.“It justifies the Fed, it keeps them from having their tapering discussion or thinking about raising rates,” said Ross Mayfield, investment strategy analyst at Robert W. Baird & Co.. “That by and large is supportive for equity markets.”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. Howell date : 210507 14h06m18s Business Reuters 210507 14h02m US STOCKS-S&P 500, Dow end at record highs as weak jobs data eases rate worries The S&P 500 and the Dow hit record highs on Friday, while megacap growth stocks drove a recovery on Nasdaq after U.S. jobs data eased concerns over prospects for rising rates. U.S. job growth unexpectedly slowed in April, likely restrained by shortages of workers, the Labor Department report on Friday showed. The report alleviated some concerns about rising inflation and potentially higher U.S. interest rates, which some investors worry would hurt growth companies with high valuations. Business Yahoo Finance 210507 14h00m Stock market news live updates: S&P 500, Dow set record highs as tech shares jump after jobs report miss Stocks traded mixed Friday as investors digested a disappointing April jobs report, which showed the U.S. economy added back far fewer jobs than expected last month despite easing stay-in-place restrictions. Politics Reuters 210507 13h54m UPDATE 1-U.S. Senate China bill would create 'chief manufacturing' post in research boost U.S. Senate committee leaders have drafted a compromise $110 billion measure for basic and advanced technology research and science over five years and the creation of a White House chief manufacturing officer in the face of rising competitive pressure from China, according to a copy of the 131-page draft legislation seen on Friday by Reuters. The revised draft bill by Senate Commerce Committee Chair Maria Cantwell and the committee's top Republican Roger Wicker is set to be debated by the committee on Wednesday. The measure, sponsored by Senate Majority Leader Chuck Schumer, a Democrat, Republican Senator Todd Young and others, would also authorize another $10 billion to designate at least 10 regional technology hubs and create a supply chain crisis-response program to address issues like the shortfall in semiconductor chips harming auto production. Business Reuters 210507 13h40m CANADA FX DEBT-Canadian dollar rises for 6th straight week despite jobs decline Canada lost 207,100 jobs in April as fresh restrictions to contain a variant-driven third wave of COVID-19 weighed on employers, Statistics Canada data showed. "You have this unhealthy environment where growth goals are struggling to be met but unfortunately inflation is picking up everywhere," said Avi Hooper, a senior portfolio manager at Invesco. Supportive of the loonie, one cause of inflation has been a surge in the prices of some of the commodities that Canada produces. Business Bloomberg 210507 13h37m VanEck Fires Starting Gun in Race for First U.S. Ether ETF (Bloomberg) -- VanEck Associates Corp. just kicked off a new push for an ETF tracking the cryptocurrency Ether.If approved, the VanEck Ethereum Trust would hold Ether and value its shares daily based off the MVIS CryptoCompare Ethereum benchmark rate, according to a filing with the Securities and Exchange Commission.The application comes after three Ether ETFs debuted in Canada last month, the first in North America to carry such an ETF label. The Canadian market is known for beating the U.S. in new ETF concepts, most recently with the launch of the first Bitcoin ETF.“Canada approving Ethereum ETFs so quickly on the heels of Bitcoin ETFs is part of the reasoning for this filing,” said James Seyffart, ETF analyst for Bloomberg Intelligence. “I don’t see the SEC approving an Ethereum ETF until we have a Bitcoin ETF that has already begun trading. It’s possible that other issuers will follow suit because VanEck has been leading the charge with these filings in the last five months or so.”U.S. regulators have yet to approve a crypto ETF though at least 11 companies are looking to launch one. Nine of them have filed since the end of 2020, according to a tally kept by Bloomberg Intelligence. VanEck renewed the push for a U.S. Bitcoin ETF with a filing in late December; the SEC has delayed a decision on this application until at least June.A red-hot runup in crypto prices has seen Bitcoin, the largest digital asset, double year-to-date and Ether advance more than 350%. Ether rose to a record high of around $3,589 in Friday trading.Its rally this year has pushed the coin, the second-largest behind Bitcoin, into the limelight. The token is used on Ethereum, the world’s most-actively utilized blockchain, the technology that verifies and records transactions.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. Business Bloomberg 210507 14h02m Stocks Notch All-Time High After Weak Jobs Data: Markets Wrap (Bloomberg) -- Stocks climbed to a record after surprisingly weak jobs data eased fears about higher inflation and a cutback in stimulus. The dollar slumped, while Treasuries were little changed.All major groups in the S&P 500 rose, with energy, real-estate and industrial shares leading the charge. Earlier in the day, technology led equity gains as softer economic data drove investors into the perceived safety of pandemic darlings -- megacaps flush with cash and stay-at-home stocks. A gauge of giant growth companies such as Apple Inc. and Amazon.com Inc. pared most of its advance.The long-awaited employment data rattled markets, with payrolls up only 266,000 in April, trailing the projected 1 million surge. For several analysts, the figures may give a boost to President Joe Biden’s $6 trillion economic agenda and another reason for the Federal Reserve to keep its accommodative stance. Treasury Secretary Janet Yellen said the report “underscores the long-haul climb back to recovery,” while retaining her expectation of a return to full employment next year.“Today’s report suggests that the jobs recovery may not be quite as rapid as many had expected,” said Mike Bell, global market strategist at JPMorgan Asset Management. “If this slower pace of job gains persists, then the Fed is likely to start raising rates later than markets had been expecting. While less good for the economy than a booming labor market, a ‘Goldilocks’ jobs recovery that is neither too hot nor too cold could continue to support equity markets.”Federal Reserve Bank of Minneapolis President Neel Kashkari told Bloomberg Television he has “zero sympathy” for critics on Wall Street, who slam the central bank’s aggressive support of the U.S. economy while millions of Americans remain out of work.“We need to rebuild this labor market and put them back to work. Then there will be plenty of time to normalize monetary policy,” he said.These are some of the main moves in markets:StocksThe S&P 500 rose 0.7% as of 4 p.m. New York timeThe Nasdaq 100 rose 0.8%The Dow Jones Industrial Average rose 0.7%The MSCI World index rose 0.9%CurrenciesThe Bloomberg Dollar Spot Index fell 0.7%The euro rose 0.8% to $1.2167The British pound rose 0.8% to $1.4002The Japanese yen rose 0.4% to 108.60 per dollarBondsThe yield on 10-year Treasuries was little changed at 1.57%Germany’s 10-year yield advanced one basis point to -0.22%Britain’s 10-year yield declined two basis points to 0.77%CommoditiesWest Texas Intermediate crude rose 0.2% to $65 a barrelGold futures rose 1% to $1,833 an ounceFor 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. Howell date : 210507 13h35m42s Business Bloomberg 210507 13h19m Oil Posts Weekly Gain on Expectations for Stronger Summer Demand (Bloomberg) -- Oil posted a gain this week as expectations for growing economic activity in nations from the U.S. to Europe fueled optimism around stronger summer demand.Futures in New York advanced 2.1% this week in the first back-to-back weekly increase since early March. Fuel sales in the U.K. rose to the highest since the pandemic again, and in the U.S., refineries are running at their highest rate since the pandemic began as they gear up for the summer driving season.“Traveling by air here in the U.S. and driving -- we expect to continue to see upward strength in the days and weeks ahead,” said Tariq Zahir, managing member of the global macro program at Tyche Capital Advisors LLC. Declining crude inventories and progress in reopenings in the U.S. are boosting oil prices, he said.Crude’s advance this week comes amid strength in the broader commodities sector. The head of UBS Commodities said this week in a Bloomberg Television interview that he expects commodities to rally further, in part due to supply discipline from the Organization of Petroleum Exporting Countries and its allies. While the group is gradually restoring some output, they’re confident the market can absorb the extra production.“The strong recovery of demand in the second half of the year, coupled with continued good production discipline on the part of OPEC+, is likely to tighten supply considerably and lend support to oil prices,” said Eugen Weinberg, head of commodities research at Commerzbank AG.The disappointing jobs report this week supports a weaker dollar in the short term, which will add fuel to the commodity rally, said Ed Moya, senior market analyst at Oanda Corp.With crude prices gaining this week, trading of oil options that could profit from a move up toward $90 and $100 a barrel has surged. The equivalent of more than 30 million barrels of $100 calls have changed hands so far this week.However, there are still lingering concerns around the spreading coronavirus in India, the third-largest oil importer. While a model prepared by advisers to Prime Minister Narendra Modi suggests the outbreak could peak in the coming days, the group’s projections have been changing and were wrong last month.“Despite all the optimism we’re seeing in Europe and in the U.S., you’re going to see prices remain steady,” said Moya. “Eventually, it’ll take off once the demand outlook improves across most of Asia.”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. Business Bloomberg 210507 13h09m U.S. Consumer Borrowing Rose More Than Forecast in March (Bloomberg) -- U.S. consumer credit climbed in March by more than forecast, highlighting an increased willingness to borrow as economic activity resumes.Total credit rose $25.8 billion from the prior month after a $26.1 billion gain in February, Federal Reserve figures showed Friday. On an annualized basis, borrowing rose 7.4% in March. Economists in a Bloomberg survey had called for an $20 billion gain.Revolving credit, which includes credit cards, rose $6.4 billion after an $8 billion increase. Non-revolving credit, which includes auto and school loans, jumped $19.4 billion, the most since June. Demand for cars has been strong, but limited by supply constraints due to a global semiconductor shortage.The broad-based borrowing increases suggest consumers are growing more confident as government stimulus checks circulate, vaccinations become more widespread and states ease or lift restrictions all together.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. Business Reuters 210507 13h02m GLOBAL MARKETS-Stocks at new peaks, commodities jump on U.S. jobs data Commodity prices jumped, the dollar slid to a two-month low and major global equity indexes scaled record peaks on Friday after weak U.S. jobs data for April tamped down fears that a booming economy would spark inflation and higher interest rates. The data eased worries the Federal Reserve would reduce its massive stimulus program anytime soon and was seen as helping President Joe Biden to push through his plans for trillions of dollars in new spending on infrastructure and education. Business Reuters 210507 12h58m Analysis: Cryptocurrency ethereum is flourishing but risks linger Ethereum has outperformed major digital currency rivals this year, bolstered by the surge in decentralized finance (DeFi) and the anticipation of a technical adjustment this summer, but it faces hurdles that could stall its rise. With a jump of more than 350% in its price this year, ethereum has the second-largest market capitalization after bitcoin, but not as much cache and perhaps more operational challenges that could prevent it from eclipsing its major rival. In the crypto world, the terms "ethereum" and "ether" have become synonymous. Howell date : 210507 13h05m05s Business Reuters 210507 12h59m Analysis: Cryptocurrency ethereum is flourishing but risks linger Ethereum has outperformed major digital currency rivals this year, bolstered by the surge in decentralized finance (DeFi) and the anticipation of a technical adjustment this summer, but it faces hurdles that could stall its rise. With a jump of more than 350% in its price this year, ethereum has the second-largest market capitalization after bitcoin, but not as much cache and perhaps more operational challenges that could prevent it from eclipsing its major rival. In the crypto world, the terms "ethereum" and "ether" have become synonymous. Business Reuters 210507 12h56m U.S. auto part makers brace for a bumpy ride as chip shortage to intensify U.S. auto parts suppliers warned of more production cuts at major automakers as a global semiconductor chip shortage worsens before easing in the second half of the year and aiding in a partial recovery of lost sales. The chip shortage came at an inopportune time for automakers as demand rebounded from pandemic lows due to low interest rates and consumers' preference for personal transport amid the health crisis. "We've embedded a 3% reduction in industry production to factor in what we're anticipating and expecting as further announced downtime that hasn't been publicly announced at this point," Lear Corp Chief Financial Officer Jason Cardew said on Friday. Business Reuters 210507 12h54m Amazon, union tussle over identifying witnesses as U.S. labor board starts hearing Amazon.com lost a tussle on Friday over whether it could learn the names of witnesses before they testify at a hearing investigating claims that the company illegally interfered with a vote on unionizing an Alabama facility. The Retail, Wholesale and Department Store Union asked the National Labor Relations Board to set aside the vote because Amazon allegedly interfered by threatening layoffs or closure of the facility if the union won. Harry Johnson, a lawyer who spoke for Amazon at the first day of the hearing on Friday, said it would be a "trial by ambush" if his side did not know who would speak before each session. Business Yahoo Finance 210507 12h51m This week in Bidenomics: Shortages bite Biden is contending with unexpected shortages of goods and workers that give his critics a bit of new ammunition. World Bloomberg 210507 12h45m U.S., U.K. Reveal Code Flaws Abused by SolarWinds Hackers (Bloomberg) -- The U.S. and U.K. released details on Friday about how Russia’s foreign intelligence service operates in cyberspace, the latest effort to try to disrupt future attacks.The report contains technical resources about the group’s tactics, including breaching email in order to find passwords and other information to further infiltrate organizations, in addition to providing software flaws commonly exploited by the hackers. It also offers details about how network administrators can counter the attackers’ tactics.“The group uses a variety of tools and techniques to predominantly target overseas governmental, diplomatic, think-tank, health-care and energy targets globally for intelligence gain,” the two countries wrote in a Friday report authored jointly by the U.K.’s National Cyber Security Centre and three U.S. agencies, the Federal Bureau of Investigation, the Cybersecurity and Infrastructure Security Agency and the National Security Agency.The Russian Embassy in Washington didn’t immediately respond to a request for comment about the report.The report comes a month after President Joe Biden imposed sanctions on Russia following a supply-chain attack that compromised popular software by the Texas-based firm SolarWinds Corp. in order to break into nine government agencies and at least 100 private-sector companies. Biden attributed the attack to the SVR, Russia’s civilian foreign intelligence service. SVR’s hacking group is known by different names, including APT29, Cozy Bear and The Dukes.“The SVR is a technologically sophisticated and highly capable cyber-actor. It has developed capabilities to target organizations globally, including in the U.K., U.S., Europe, NATO member states and Russia’s neighbors,” according to the report.Last year, the two countries accused the same hacking group of targeting organizations involved in developing a vaccine for Covid-19. Cybersecurity analysts have also tied the group to attacks against governments and organizations across the globe, including an infamous attack on the Democratic National Committee’s servers ahead of the U.S. 2016 election.“Like other sophisticated cyber-actors, the SVR is known to rapidly exploit vulnerabilities once publicly known,” said Eric Goldstein, executive assistant director for cybersecurity at the Cybersecurity and Infrastructure Security Agency.“We recommend that critical system owners, including state and local governments and private-sector partners, prioritize this advisory and apply recommended actions to mitigate this ongoing and evolving SVR cyber threat,” he said in an emailed statement.The U.S. released two other advisories focused on SVR hackers in April, which detailed coding flaws they used to breach networks in the U.S. and allied countries as well as tactical trends for which network defenders should prepare.Friday’s report revealed that the group also utilized a vulnerability in Microsoft Corp.’s Exchange software for email, a flaw which was previously exploited by suspected Chinese hackers to target thousands of organizations earlier this year.(Updates with comment from U.S. officials starting in eighth 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. Politics Reuters 210507 12h42m After shock U.S. jobs data, Republicans and Democrats spar over unemployment benefits What did the disappointing U.S. jobs report on Friday say about the state of the world's biggest economy? The Labor Department reported 266,000 new jobs were created in April, a fraction of the nearly 1 million jobs that were expected by a Reuters poll of economists. A drop in temporary help positions put a fresh focus on the generous unemployment benefits that the White House has championed as necessary to keep Americans financially whole as the country recovers from the impact of the coronavirus pandemic. Business Bloomberg 210507 12h33m Geopolitical Clash, Earnings Spark Wild Ride for Vaccine Stocks (Bloomberg) -- A geopolitical tug-of-war and quarterly sales that failed to meet sky-high expectations sent some of the leading Covid-19 vaccine developers tumbling this week.Biotechs including Moderna Inc., BioNTech SE, Novavax Inc., and CureVac NV shed over $30 billion in market value at one point as President Joseph Biden said their patents should be stripped to combat the global pandemic.It was the first losing week for a basket of vaccine makers in over a month, putting them on track for the biggest five-day loss since early March. Extra trouble could come on Monday, when two more of the vaccine makers are set to report earnings.Investors are concerned that billions of dollars in sales will be jeopardized if the world opens the floodgates to manufacturing by added firms. But the stocks regained some ground after Europe’s less-than-unanimous embrace of Biden’s proposal. What’s more, analysts said that even with a waiver, other companies can’t simply start whipping up batches of complex Covid vaccines.“Vaccine manufacturing is analogous to ‘rocket science’ in biological systems, and merely temporarily liberating the patents will have little effect on worldwide manufacturing capacity,” wrote Oppenheimer analyst Hartaj Singh, citing mRNA vaccines like those from Moderna, BioNTech and Pfizer Inc. “What is likely needed is governmental support for current manufacturers to further access raw material supplies, as opposed to fragmenting them.”Politics and logistics present another set of hurdles, wrote Morgan Stanley analyst David Risinger. A waiver would have to be negotiated through the World Trade Organization, which could take months, and then building facilities would add to delays, he said.The political picture remains unsettled, as Germany opposed the waiver and Spain backed the U.S.While investors will be watching for any further headlines from global leaders, there are plenty of empirical catalysts ahead for the group. BioNTech is scheduled to report quarterly results before the U.S. market opens on Monday, followed by Novavax later that evening. Both will get a chance to discuss prospects for patent protection and provide updates on various studies and production of their shots.More data is expected shortly on the Novavax and CureVac vaccines, which could provide additional shots to the world and perhaps a booster for the shares. While investors are itching to see the results, Bloomberg Intelligence analyst Sam Fazeli warned earlier this week that neither of the newer immunizations is likely to be as effective as those already out from Pfizer-BioNTech and Moderna.The swoon for vaccine stocks hasn’t prompted analysts to pound the table and declare a buying opportunity, but it has brought some share prices closer to what Wall Street sees as fair value. The 12-month price target for Moderna now implies a roughly 4% gain from where it’s hovering around $163. By that same gauge, BioNTech ADRs current level of about $180 a share still implies a roughly 25% slide.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. Business Reuters 210507 12h33m U.S. Commerce chief cites auto chips shortage in jobs report U.S. Commerce Secretary Gina Raimondo said on Friday the semiconductor shortage was a factor in April's jobs report that showed hiring unexpectedly slowed. The Bureau of Labor Statistics said the auto sector shed 27,000 jobs in April as automakers were forced to cancel production shifts and furlough workers amid the chips shortage. Howell date : 210507 12h34m28s Business Bloomberg 210507 12h22m Canadian Lumber Producers to Expand U.S. Mills Amid Home Boom (Bloomberg) -- North American lumber companies plan to ramp up production by expanding existing mills as strong home construction fuels the need for more wood.West Fraser Timber Co., the world’s biggest lumber producer, plans to expand capacity at five of its lumber mills in the U.S. South. Interfor Corp. is rebuilding a sawmill in Georgia that is on track for completion by the end of 2021. Both companies expect home-building and renovation demand to continue supporting strong prices for wood products in the near future.Interfor shares soared to a new high Friday after the company reported record quarterly earnings. West Fraser climbed as much as 1.9%.The pandemic-fueled surge in home construction last year took North American sawmills by surprise, sending lumber prices to new records. U.S. futures this week hit $1,600 per 1,000 board feet for the first time, a four-fold increase from a year ago. While production has since ramped up, demand continues to outpace supply.The expansions will be primarily in the southern U.S., where there is an abundance of planted timber available to be harvested. They should help to increase overall inventories in the country and push prices off their record highs over time. But that won’t come fast enough to alleviate supply constraints during the peak building season.“We remain optimistic about the favorable market fundamentals we’re currently seeing supported by the underlying environmental benefits of building with wood, which have never been more clear and more widely accepted,” said West Fraser Chief Executive Raymond Ferris, speaking to analysts Friday.Though 80% of the Vancouver-based company’s operations are now outside of British Columbia, which has historically provided significant amounts of spruce-pine-fir wood that is preferred by many home builders, Ferris noted the log costs in the province are rising.West Fraser plans to invest roughly $150 million at five of its U.S. South lumber mills under its strategic capital program. Already, it’s increasing the number of working shifts at mills where possible, the company said.“These investments will increase our capacity and increase the value of our products while reducing production costs overall,” Ferris told analysts.Increased demand and stable supply have pushed North American lumber inventories to “critical levels,” said Bart Bender, senior vice president of sales and marketing for Interfor, speaking to analysts Friday morning.“Even if there was an opportunity to build inventories, distribution channels would be reluctant at current market prices, he said. “We expect this scenario to exist through 2021 into 2022 and, as such, expect volatility in pricing with little to no buffer in inventories.”A trucking shortage combined with severe winter weather in the first few months of the year slowed deliveries across the continent, where builders scramble to get their hands on building materials. West Fraser said it is attempting to secure additional transportation resources and is already seeing an improvement in shipping early in the second quarter.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. Business Yahoo Finance 210507 12h16m US Labor Secretary Marty Walsh on the future of gig economy workers U.S. Labor Secretary Marty Walsh shares his take on gig economy workers. Business Reuters 210507 12h14m UPDATE 1- Investors back off view that Fed could raise rates in late 2022 U.S. investors who had been betting the Fed would raise rates as early as the end of next year abruptly retreated from those positions on Friday after a disappointing April employment report and now see the earliest the Fed might tighten roughly two years away. The push back in expectations for when the Fed might start raising rates also means any reduction in the pace of its bond buying - which the Fed has said will begin first - may also occur later than some investors had been betting. It would be hard to argue it stands as "substantial further progress" toward maximum employment, the test the Fed has said it must achieve before it begins dialing back its massive support for the economy. U.S. Yahoo Finance 210507 12h11m Why Americans earning $50,000 to $100,000 are pessimistic about homebuying Homebuyer sentiment is plummeting amid America’s housing affordability crisis. Politics Bloomberg 210507 12h06m Yellen Says Debt-Limit Measures Could Be Exhausted in Summer (Bloomberg) -- Treasury Secretary Janet Yellen said the department’s fiscal tools to keep the national debt from breaching its congressionally mandated limit may be exhausted as soon as this summer, which would be earlier than some analysts are expecting.“There are scenarios in which, you know, sometime during the summer the extraordinary measures would run out,” Yellen said Friday during a press briefing at the White House.The current suspension of the U.S. borrowing limit expires July 31, and the Treasury Department on Wednesday cautioned that if Congress fails to act, the administration would have to shift federal funding to make good on debt payments.Yellen’s comment is more specific than Treasury’s warning on Wednesday that the agency was “evaluating a range of potential scenarios, including some in which extraordinary measures could be exhausted much more quickly than in prior debt limit episodes.” It’s also earlier than the October target that some analysts had penciled in.Read more: Yellen Faces U.S. Debt-Limit Dance, With Covid ComplicationsThe latest comments could put additional pressure on lawmakers to raise or suspend the ceiling before it returns following a two-year suspension. While the Treasury has options to keep paying interest on debt for a time -- such as redirecting money from federal retirement funds -- legislative action will be vital.With about $300 billion of so-called extraordinary measures available, strategists from Bank of America, Wrightson ICAP and Barclays estimate the government can remain funded into the fourth quarter. The Bipartisan Policy Center also expects the drop-dead date to arrive in the fall.Tail RiskThe risk that Treasury will exhaust its toolkit sooner rather than later “is pretty far out in the tail, but it’s not inconceivable,” said Lou Crandall, chief economist at Wrightson ICAP. “If the ramp-up of Treasury spending is slower than expected, some of the cash that we expect to go out from late May through July might get pushed back into August, which would chew up the Treasury’s resources very quickly.”“It is far more likely that the Treasury will have enough cash to operate well into the fourth quarter,” Crandall said.The ceiling was suspended under a 2019 agreement between the Trump administration and Congress. It’s been a political football in the past because voting for an increase can invite political attacks over ramping up the debt burden for future generations.Yellen will need Congress to refrain from political brinkmanship and avoid any disruption -- at worst a default or government shutdown -- that would undermine the recovery from the pandemic.Navigating the debt limit debate is also a test of unity within the Democratic Party. With slim majorities in both chambers of Congress, Democrats are widely expected to raise the debt ceiling using a fast-track budget tool enabling them to bypass a Senate Republican filibuster. That would deprive the GOP of being able to use the debt ceiling as leverage in exchange for spending cuts.Yet pushing through a debt-limit increase using that tactic could mean wrapping it together with a raft of spending and tax measures that follow through on Biden’s longer-term economic proposals.That in turn means Democrats would have to unify behind a grand compromise in the weeks after the Aug. 1 end of the debt limit suspension, before Treasury measures run out.(Updates with analyst’s comment 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. Business Bloomberg 210507 11h58m Citi’s Defeat on $500 Million Error Was Wrong, Professors Argue (Bloomberg) -- Investment firms shouldn’t be allowed to keep half a billion dollars Citigroup Inc. accidentally sent them because the payment wasn’t due for three more years, legal experts said in asking a court to overturn the ruling.A group of law professors said in a brief filed Thursday with the federal appeals court in Manhattan that the lower-court ruling, allowing Revlon Inc. lenders to hold on to $504 million the bank wired them last August, misapplied legal precedent and could harm the industry’s standards.“The sheer magnitude of the transfer, constituting nearly 100 times the size of defendants’ scheduled coupon payments, was a giant ‘red flag,’” the professors told the court. They said the prepayment of the 2016 loan, at par and without notice, “constituted another glaring red flag that would have caused a reasonable person to inquire.”The law shouldn’t encourage similar, “serving, self-imposed ignorance in situations where it is nearly costless for a party” to “uncover and remedy the error,” the group said in its brief. The group isn’t a party to the case, but the court can consider its views.$900 Million BlunderThe conflict started after Citigroup inadvertently wired more than $900 million to asset managers for the Revlon lenders and then asked for it back. The bank sued firms, including Brigade Capital Management, HPS Investment Partners and Symphony Asset Management, that wouldn’t return the funds. It unexpectedly lost that battle in February.The embarrassing blunder forced Citigroup to answer to regulators and tighten its internal controls. The ruling was a boon to creditors, which had been locked in a battle with billionaire investor Ronald Perelman’s struggling cosmetics company over previous restructuring maneuvers.Read More: Citi Asks Court to Reverse $500 Million Transfer DecisionCitigroup has asked the appeals court to overturn U.S. District Judge Jesse Furman’s decision, saying it “sent shockwaves through the markets and generated outcry across the financial industry.” Oral argument in the appeal will be held in August or September.In its brief to the court, the group said the funds “were not due until the term loan matured in 2023,” and full repayment required prior written notice from both Revlon and Citibank that never occurred and was never questioned. The payment occurred outside of the contract between the investors, the company and the bank, which was acting as administrative agent on the loan. That should have “put a reasonable lender on notice of Citibank’s mistake,” the group said.‘Manual Touches’The Loan Syndications and Trading Association offered similar arguments in its own brief, saying the mistaken payment has already “significantly disrupted” the drafting and negotiation of credit facilities and the expectations of participants in the market. Mistakes will happen because the often automated transactions require “manual touches,” the trade group said.Furman’s decision letting the investment firms keep the money was based on a 1991 New York state court case, Banque Worms v. BankAmerica International. In that case, New York’s highest court ruled that under a principle called discharge for value, when a third party mistakenly sends money from a debtor to a creditor, the creditor can keep the payment if it didn’t realize it was sent in error and didn’t make any misrepresentations. But the mistaken payment in the Banque Worms case was money due to the creditors at the time it was sent, the group said.Read More: Citi Faces ‘Finders Keepers’ in Fighting $500 Million RulingThe ruling could have “substantial, detrimental effects” on the industry, including adding costs and risks in the leveraged loan market, “discouraging parties from engaging in collaborative contracting and punishing those who do,” and introducing “uncertainty into both new and already existing leveraged loan agreements,” the group said.The group includes Columbia Law School professors Eric Talley, Talia Gillis and Ronald Gilson, University of California at Berkeley professor Robert Bartlett, University of Michigan professor Albert Choi and University of Pennsylvania professor David Hoffman, as well as Edward Morrison, co-director of the Richard Paul Richman Center for Business, Law, and Public Policy at Columbia.The appeal is Citibank NA v. Brigade Capital Management LP, 21-487, U.S. Court of Appeals, Second Circuit (Manhattan). The lower-court case is Citibank NA v. Brigade Capital Management, 20-cv-6539, U.S. District Court, Southern District of New York (Manhattan).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. Howell date : 210507 12h03m52s Business Bloomberg 210507 11h54m Copper Jumps to Record as Growth Bets Supercharge Commodities (Bloomberg) -- Copper soared to a fresh all-time high as optimism about a global rebound from the pandemic boosts commodities markets.The metal -- an economic bellwether -- is front and center in a rally that’s driven raw materials from lumber to iron ore to multiyear highs or records. Stimulus measures and vaccine rollouts are fueling prospects for a resurgence in demand that’s set to strain supply, while copper’s crucial role in the green-energy transition is expected to underpin longer-term gains.At the same time, a lack of mine investment may leave the market short of the supply needed to meet demand. Big banks and others including trader Trafigura Group have rolled out a list of lofty price targets that suggest there’s more room to run, with the latter predicting copper will hit $15,000 a ton in the coming decade.The surge in raw materials is also stoking fears of inflation, and questions are building around the need for a response from central banks. While policy makers from the Federal Reserve on down maintain that cost increases are temporary, some businesses are already announcing they’ll need to raise prices.Futures in London charged past the 2011 record -- set around the peak of the last commodities supercycle -- and kept going, rising to as high as $10,440 a ton, even after a disappointing U.S. jobs report on Friday.“If inflation induces tighter policy it would hurt copper,” said Ryan McKay, an analyst at TD Securities. But “the weaker jobs report this morning highlights the economy is certainly not running too hot right now.”Federal Reserve officials reiterated this week that U.S. inflation is unlikely to get out of control despite the unprecedented government spending that’s been authorized in response to the pandemic.Copper rose 3.2% to settle at $10,417 a ton at 5:51 p.m. in London. Prices are up more than 30% this year and have more than doubled from lows in March of last year.It’s not just copper. Steel prices across Asia and North America are booming, iron ore is at a record above $200 a ton as miners struggle to keep up with the frenzied pace of consumption, and tin topped $30,000 for the first time in a decade. The Bloomberg Commodity Spot Index jumped to its highest since 2011 as growth bets boost demand, while poor weather hurts crop prospects and transportation bottlenecks crimp supplies.China RiskThere are risks to the rally, especially if the current strong period of manufacturing starts to ease. In China, the top consumer, signs are emerging that high copper costs are starting to bite, and authorities have pledged to stabilize raw-material prices.China’s imports of copper ore and concentrate fell in April from the previous month, according to customs data released Friday. Some manufacturers and end-users have been slowing production or pushing back delivery times after costs surged, Shanghai Metals Market said last week, while weaker-than-expected domestic consumption has opened the arbitrage window for exports.With China’s strategic stockpiles, “they could ease price pressures by selling if they needed,” said TD Securities’ McKay. “But I think this hot run in copper will only be short-term, and other forces such as the peaking Chinese credit supply and fiscal drag in the U.S. will weigh on the metal longer term.”Higher prices means substitution could accelerate, Bank of America Corp. analysts including Michael Widmer said in a note this week. That could come by reducing copper content in applications, as well as engineering out of copper in products.Short SupplyReal shortages of raw materials that power the economy are driving current gains in commodities as much as anticipation of future demand, according to Greg Sharenow, who manages a portfolio focused on energy and commodities at Pacific Investment Management Co. The global copper market will flip into a deficit this year as demand jumps 6%, according to Bank of America.Read more: Biggest Copper Supplier Is Giving Bulls Another Reason to CheerThe commodity surge has also sent the miners soaring. Freeport-McMoRan Inc., the biggest publicly traded copper miner, is at the highest in almost a decade, while Rio Tinto Group is trading near a record high, propelled by iron ore and copper prices.Yet, while the biggest miners are universally bullish on the outlook for copper, there are few new projects on the horizon, constraining future supply. Ivan Glasenberg, the billionaire boss of Glencore Plc, said Thursday that prices would have to hit $15,000 a ton to incentivize enough new supply to meet demand.More broadly, capital expenditure on copper mining operations is expected to increase only marginally this year -- to $16.2 billion from $15.2 billion in 2020 -- and remain around that level for the next two years, Australia & New Zealand Banking Group Ltd. forecasts.“The copper market as it currently stands is not prepared for this demand environment,” Goldman Sachs Group Inc. analysts including Nicholas Snowdon wrote in a report last month. The “combination of surging demand and sticky supply has reinforced current deficit conditions and foreshadows large open-ended deficits from mid-decade,” they wrote.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. Business Bloomberg 210507 11h47m Stocks Climb, Dollar Slumps After Jobs Surprise: Markets Wrap (Bloomberg) -- Stocks climbed after surprisingly weak jobs data eased fears about higher inflation and a stimulus cutback. The dollar slumped toward the lowest since February, while Treasuries fluctuated.The long-awaited employment report rattled markets, with payrolls up only 266,000 in April, trailing the projected 1 million surge. For several analysts, the disappointing figures may give a boost to President Joe Biden’s $6 trillion economic agenda and another reason for the Federal Reserve to keep its accommodative stance.Most major groups in the S&P 500 rose, with the gauge on track for a fresh record, while the Nasdaq 100 outperformed major equity benchmarks. Giant growth companies such as Apple Inc. and Google’s parent Alphabet Inc. climbed. Stay-at-home stocks battered all week amid rising concern that inflation was imminent also rallied, with Roku Inc. jumping 12% while Zoom Video Communications Inc. added 1%.“Today’s report suggests that the jobs recovery may not be quite as rapid as many had expected,” said Mike Bell, global market strategist at JPMorgan Asset Management. “If this slower pace of job gains persists, then the Fed is likely to start raising rates later than markets had been expecting. While less good for the economy than a booming labor market, a ‘Goldilocks’ jobs recovery that is neither too hot nor too cold could continue to support equity markets.”Federal Reserve Bank of Minneapolis President Neel Kashkari told Bloomberg Television he has “zero sympathy” for critics on Wall Street, who slam the central bank’s aggressive support of the U.S. economy while millions of Americans remain out of work.“Today’s jobs report underscores the long-haul climb back to recovery,” said Treasury Secretary Janet Yellen, adding she’s confident in a “strong, prosperous economy this year and in 2022.”These are some of the main moves in markets:StocksThe S&P 500 rose 0.6% as of 1:38 p.m. New York timeThe Nasdaq 100 rose 0.7%The Dow Jones Industrial Average rose 0.5%The MSCI World index rose 0.8%CurrenciesThe Bloomberg Dollar Spot Index fell 0.5%The euro rose 0.8% to $1.2156The British pound rose 0.7% to $1.3982The Japanese yen rose 0.4% to 108.69 per dollarBondsThe yield on 10-year Treasuries advanced one basis point to 1.58%Germany’s 10-year yield advanced one basis point to -0.22%Britain’s 10-year yield declined two basis points to 0.77%CommoditiesWest Texas Intermediate crude rose 0.2% to $65 a barrelGold futures rose 0.8% to $1,831 an ounceFor 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. Business Bloomberg 210507 11h44m Goldman, Pimco Detect Irrational Inflation Mania in Bonds (Bloomberg) -- Goldman Sachs Group Inc. and bond titan Pacific Investment Management Co. have a simple message for Treasuries traders fretting over inflation: Relax.The firms estimate that bond traders who are pricing in annual inflation approaching 3% over the next handful of years are overstating the pressures bubbling up as the U.S. economy rebounds from the pandemic.Add to that certain technical distortions in the way market-based inflation expectations are priced, and Goldman Sachs, for one, says the overshoot could be as large as 0.2-to-0.3 percentage point. That gap makes a difference with key market proxies of inflation expectations for the coming few years surging this week to the highest in more than a decade. The 10-year measure, perhaps the most closely followed, eclipsed 2.5% Friday for the first time since 2013, even after unexpectedly weak U.S. jobs data.There’s at least one market metric that backs up the view that the pressures, which have been building for months, aren’t about to get out of hand and may even prove temporary. A swaps instrument that reflects the annual inflation rate for the second half of the next decade has been relatively stable in recent months.The debate over inflation is crucial as policy makers and investors navigate the recovery from the pandemic. The Federal Reserve has been hammering home that it sees any spike in price pressures as likely short-lived, and that it’s willing to let inflation run above target for a period as the economy revives.Now it appears to be catching a break with its campaign. Not only are the likes of Goldman and Pimco laying out the case for a more benign inflation outlook, but traders in recent weeks have also trimmed bets on rate hikes by the end of 2023. “We do not see the sort of inflationary pressures that markets appear to be fearing, and high growth rates will not necessarily translate into a higher inflation rate,” said Praveen Korapaty, Goldman’s chief interest-rate strategist.Market measures known as breakeven rates, which are derived in part from Treasury Inflation-Protected Securities and represent expectations for annual increases in consumer prices, surged anew this week as the reopening of major industrial economies progressed.Commodities LinkInflation worries have been mounting against a backdrop of soaring commodities prices -- copper, for example, set a record high Friday. It’s all happening as lawmakers in Washington debate another massive fiscal-stimulus package.But it’s worth noting that two-year breakevens -- which reached an almost 13-year high close to 2.9% on Wednesday -- are firmly above where traders see inflation expectations in the second half of the coming decade. That shows the market is positioned for price pressures to eventually ebb.Korapaty calls the outlook for inflation “benign.” His view is that the market is overly optimistic with its inflation assumptions, with the greatest mismatch to be found on the three- and five-year horizon. At roughly 2.75% and 2.7%, respectively, those rates are around 20 to 30 basis points higher than they should be, in his estimate.“If we are right and inflation readings come off, we might be tempted to fade Fed pricing and take the view that markets can push back when pricing Fed liftoff,” Korapaty said. In addition, he says, that would be the right time to sell three-year breakevens.New ApproachThe discussions around price pressures come amid unease in markets and in Washington over the extent of fiscal stimulus. On Tuesday, Treasury Secretary Janet Yellen stirred markets by saying interest rates will likely rise as government spending swells and the economy achieves faster growth. She walked back the remarks hours later.The Fed has signaled that it intends to keep policy ultra-loose at least through 2023. In August, it adopted a new approach that lets inflation run above 2% for longer before raising rates. The goal is to get inflation to average 2% over time, to make up for previous shortfalls. The Fed has failed to achieve that level on a consistent basis for much of the past decade.Futures are now pricing in Fed liftoff around the end of the first quarter of 2023, earlier than officials project. Traders have also reduced wagers on additional hikes by the end of that year. They see a total of 65 basis points of tightening by the end of 2023, down about a quarter-point since April 1.Granted, some on Wall Street are more concerned about inflation risks. JPMorgan Chase & Co. chief global markets strategist Marko Kolanovic is warning that some money managers face an “inflation shock” to their portfolios.TIPS CaveatsBreakevens have long carried the caveat that they can’t be taken at face value because of the illiquidity of TIPS and the risk premium that investors demand due to uncertainty over the path of inflation -- both of which lead to higher rates than would otherwise be the case.Fed officials have developed models to account for those variables, and Pimco has followed up with its own. Its conclusion, in a nutshell, is that inflation expectations are even further below the Fed 2% target than officials assume. That means traders may need to pull back on expectations for Fed liftoff from near zero.“We basically argued that inflation expectations are a little below where the Fed sees them” after coming in at around 1.75% as of March, the most recent reading in Pimco’s model, said Tiffany Wilding, an economist.Moreover, she sees the recent rise in five-year, five-year forward breakevens, which strip out short-term noise like fluctuations in oil prices, as partly due to uncertainty around the inflation outlook -- as opposed to just an acceleration of expectations.“Because we think front-end rates are pricing in a more aggressive Fed path than we believe, we do like shorter-dated nominal bonds, and think there’s value there,” she said.(Updates inflation expectations.)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. Business Reuters 210507 11h34m Union offered Exxon six-year deal with no raise first year - sources United Steelworkers union negotiators bargaining for a new contract at an Exxon Mobil Texas refinery offered a six-year deal with no pay raise in the first year, people familiar with the talks said, shortly before 650 workers were locked out of their jobs. The Local 13-243 proposal would match raises in the second through sixth years to those set by national labor negotiations that have yet to be held, the people said. The Beaumont plant's union workers were ushered out after Local 13-243 officials refused Exxon's call for a vote on the company's April 20 labor proposal, details of which have not been disclosed. Business Yahoo Finance Video 210507 11h28m Labor market is seeing issues of people wanting to stay remote: Recruiter.com CEO Evan Sohn, Recruiter.com Chairman and CEO, joins Yahoo Finance’s Kristin Myers and Alexis Christoforous to discuss the outlook on the labor market given April’s jobs report numbers. Howell date : 210507 11h33m15s U.S. Reuters 210507 11h15m Yellen says U.S. debt ceiling could pinch in summer U.S. Treasury Secretary Janet Yellen said on Friday the nation could exhaust its ability to borrow this summer even if Treasury takes "extraordinary actions" to buy more time when the nation's debt ceiling comes back into effect at the end of July. Yellen told reporters at the White House that while the Treasury could extend its ability to borrow by employing special measures if Congress did not act to raise the debt ceiling, those steps might buy only a "very limited" amount of time. "We are concerned that there are scenarios that give (a) very limited amount of additional time to use extraordinary measures," Yellen added. Business Bloomberg 210507 11h14m Yellen Says Debt-Limit Measures Could Be Exhausted in Summer (Bloomberg) -- Treasury Secretary Janet Yellen said the department’s fiscal tools to keep the national debt from breaching its congressionally mandated limit may be exhausted as soon as this summer.“There are scenarios in which, you know, sometime during the summer the extraordinary measures would run out,” Yellen said Friday during a press briefing at the White House.The current suspension of the U.S. borrowing limit expires July 31, and the Treasury Department on Wednesday cautioned that if Congress fails to act, the administration would have to shift federal funding to make good on debt payments.Yellen’s comment is more specific than Treasury’s warning on Wednesday that the agency was “evaluating a range of potential scenarios, including some in which extraordinary measures could be exhausted much more quickly than in prior debt limit episodes.” It’s also earlier than the October target that some analysts had penciled in.Read more: Yellen Faces U.S. Debt-Limit Dance, With Covid ComplicationsThe latest comments could put additional pressure on lawmakers to raise or suspend the ceiling before it returns following a two-year suspension. While the Treasury has options to keep paying interest on debt for a time -- such as redirecting money from federal retirement funds -- legislative action will be vital.With about $300 billion of so-called extraordinary measures available, strategists from Bank of America, Wrightson ICAP and Barclays estimate the government can remain funded into the fourth quarter. The Bipartisan Policy Center also expects the drop-dead date to arrive in the fall.(Updates with expiration of borrowing limit 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. Politics Bloomberg 210507 11h12m U.S. Jobs Report Triggers Tense Partisan Divide Over Benefits (Bloomberg) -- A dramatically weaker-than-expected monthly gain in U.S. jobs triggered a tense partisan exchange in Washington over the role of enhanced unemployment benefits in holding people back from filling job openings.President Joe Biden said there was “nothing measureable” in Friday’s report to back up suggestions that the $300 a week extra in jobless benefits extended in his March pandemic-relief bill was stopping people from returning to work. The April data showed a 266,000 increase in payrolls -- less than half of the weakest forecast in the Bloomberg survey.Republican Senator Marco Rubio reflected the view of many in his caucus, saying he’d heard plenty of businesses saying “they can’t hire people because the government is paying them to not go back to work.” The Chamber of Commerce called for a repeal of the supplemental benefit.The split showcases a deep divide over the role of government in helping the economy recover from the pandemic.The Biden administration argues the March $1.9 trillion relief act will help schools reopen and provide child-care support that will enable Americans -- especially women -- to go back to work. Progressive Democrats called for even more than the $4 trillion in longer-term economic programs Biden has laid out as his follow-on to the rescue plan.But GOP lawmakers underscored their case for a much more streamlined approach. Senator Kevin Cramer of North Dakota said in a statement, “If Congress is going to pass more spending bills to try to stimulate the economy, we should focus on infrastructure efforts which will create jobs and deliver the country a long-term benefit, not one-time handouts for nonproductive activity.”Treasury Secretary Janet Yellen cautioned against over-interpreting the jobs report. One month of data should never be taken as evidence of an underlying trend, she said at the daily White House briefing. Monthly employment reports can also see revisions after the fact, she noted.“This report underscores the long-haul climb back to recovery,” Yellen said, while retaining her expectation of a return to full employment next year.Biden said today’s report “is a rebuttal of the loose talk that Americans just don’t want to work. The data show “that more workers are looking for jobs and many can’t find them,” he said.Yellen also highlighted that the data showed more Americans returning to look for work.No Republican voted for the March pandemic-aid bill, with GOP members criticizing the extend of the supplemental jobless benefits in particular.Other FactorsDemocratic Senator Ron Wyden of Oregon, the original author of the pandemic unemployment bonus last year, said in a statement Friday that “study after study has shown that enhanced jobless benefits have not prevented workers from returning to their jobs, and there are other factors at play here, like lack of child care for millions of women and ongoing concern about the virus.”Biden underscored the need to go ahead with his longer-term economic plans.“Help is here, and more help is on the way. And more help is needed,” the president said at the White House.The fate of Biden’s $4 trillion worth of spending and tax credits laid out in his infrastructure-focused American Jobs Plan and social-program-led American Families Plan rests with the narrowly divided Congress.Republicans in Congress have balked at the scope and size of the proposals. Democrats have been less united on the overall size than they were in approving Biden’s virus aid package. The new spending plans could be debated by Congress well into the fall or even 2022.Biden has opened the door to compromise and hinted he could support a lower increase in the corporate tax rate than he had initially floated. He’s scheduled to meet with the top two Republican and top two Democratic congressional leaders on May 12, for the first time.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. U.S. Reuters 210507 11h03m U.S. CDC panel to vote on using Pfizer COVID-19 shot in adolescents An advisory panel to the U.S. Centers for Disease Control and Prevention (CDC) will meet on Wednesday to review data on the use of Pfizer Inc and partner BioNTech's COVID-19 vaccine in adolescents aged 12 to 15. The vaccine is currently authorized for use in Americans aged 16 and above. The Advisory Committee on Immunization Practices (ACIP) will vote on the expanded use of the vaccine in the lower age group, the health agency's meeting agenda showed on Friday, without specifying the exact voting questions. Politics Reuters 210507 11h00m U.S. stops Trump-era effort to loosen safety rules for Arctic drilling The United States on Friday said it had revoked a last-minute effort by the Trump Administration to loosen safety regulations for the oil industry in the Arctic Ocean off Alaska. The rule, which was proposed in December of last year, would have revised a suite of Obama-era rules crafted to improve safety in the extreme conditions of the Arctic, including eliminating a requirement that oil operators submit detailed operations plans before exploration and demonstrate they can quickly deploy containment equipment in case of spills. "The Arctic exploratory drilling regulations released in 2016 are critical to ensuring adequate safety and environmental protections for this sensitive ecosystem and Alaska Native subsistence activities," the Interior Department said. U.S. Yahoo Finance 210507 10h53m Labor Secretary rejects claims that enhanced unemployment benefits are keeping workers on sidelines U.S. Labor Secretary rejected claims by some businesses and Republicans that enhanced unemployment benefits are keeping Americans from going back to work. Business Reuters 210507 10h51m NYSE to ease floor restrictions for vaccinated traders The New York Stock Exchange will allow more traders to return to its 11 Wall Street trading floor, based on vaccination rates, and ease restrictions for people who have had a shot, its President Stacey Cunningham said on Friday. The NYSE, which is owned by Intercontinental Exchange Inc, said trading firms with 100% of their floor staff vaccinated can increase headcount at their booths, and while vaccinated traders still have to socially distance, they can remove their masks when seated. "Given the fact that so many more people are vaccinated now, we can start to ease off on some of the restrictions that we've had in place since we reopened," Cunningham told CNBC. Business Yahoo Finance 210507 10h46m 'This might be the most disappointing jobs report of all time': Analyst The April jobs report was very disappointing. Here are what economists are saying about its implications and what to expect next. Howell date : 210507 11h02m39s Business Reuters 210507 10h51m NYSE to ease floor restrictions for vaccinated traders The New York Stock Exchange will allow more traders to return to its 11 Wall Street trading floor, based on vaccination rates, and ease restrictions for people who have had a shot, its President Stacey Cunningham said on Friday. The NYSE, which is owned by Intercontinental Exchange Inc, said trading firms with 100% of their floor staff vaccinated can increase headcount at their booths, and while vaccinated traders still have to socially distance, they can remove their masks when seated. "Given the fact that so many more people are vaccinated now, we can start to ease off on some of the restrictions that we've had in place since we reopened," Cunningham told CNBC. Business Yahoo Finance 210507 10h46m 'This might be the most disappointing jobs report of all time': Analyst The April jobs report was very disappointing. Here are what economists are saying about its implications and what to expect next. World Reuters 210507 10h40m UPDATE 1-U.S. President Biden says he's confident he can meet Russia's Putin soon U.S. President Joe Biden said on Friday he expected to be able to meet Russian President Vladimir Putin soon, adding that the time and place for their encounter were still being worked out. Biden told reporters at the White House he wanted to meet Putin despite Russia's build up of military forces near Ukraine. Business Yahoo Finance 210507 10h37m Here comes the stock buyback explosion: Goldman Sachs The stage is set for an explosion in the amount of stock buybacks, says Goldman Sachs. Business Bloomberg 210507 10h37m Oil’s Chemical Profits Show Inflationary Double Whammy (Bloomberg) -- Drive down any highway in the world and you’ll see countless reminders that the price of Big Oil’s primary product is rising. What’s less obvious is how the inflationary pressures from transport fuel are being amplified by another part of this sprawling industry -- chemicals.The cost of the building blocks for everything from plastics to paint has surged over the past year. That’s great for companies like Exxon Mobil Corp. and Royal Dutch Shell Plc, whose petrochemical units just earned their biggest profit in years.But it’s unwelcome news for consumers as commodities from copper to lumber are already testing record highs. The price of materials like PVC and ethylene, staples of construction and manufacturing, have risen to the highest in at least seven years on a combination of pandemic-driven demand, the broader post-Covid recovery and once-in-a generation supply disruptions.“The demand is coming from food, packaging, medical goods, protective equipment,” said Oswald Clint, senior research analysts at Sanford C Bernstein Ltd. “Does it add to inflation? Yes.”Oil has advanced steadily this year, coming within a whisker of $70 a barrel in London this week. Yet even as higher crude prices boosted earnings from the oil majors’ exploration and production units, the performance of their petrochemical businesses really stood out.In the first three months of this year, Exxon made $1.4 billion from chemicals, more than in any quarter since at least 2014, when oil prices were above $100 a barrel. More than a fifth of Shell’s $3.23 billion of adjusted net income for the period came from the division, the highest in four years.Global WinnersIt’s not just the oil majors seeing sales surge. Chemicals was the fastest growing unit at Indian conglomerate Reliance Industries Ltd. in the first three months of 2021, compared with the prior quarter.Other winners from the boom include Brazil’s Braskem SA, Indorama Ventures PCL from Thailand, Celanese Corp., Dow Inc. and LyondellBasell Industries NV in the U.S., and Saudi Basic Industries Corp., according to Jason Miner, Bloomberg Intelligence chemicals analyst.“It’s a story of the strength of the intermediates,” Shell chief financial officer Jessica Uhl told investors on April 29, referring to compounds that are derived from basic petrochemical feedstocks. Demand is growing as the economy recovers, notably in Asia, she said.For example, the price of styrene monomer -- used in medical devices and latex -- surpassed $1,000 a ton in the first quarter, Uhl said. The average price of the chemical at the port of Rotterdam in the Netherlands was about $700 a ton in 2020, according to data compiled by Bloomberg.The global vaccination drive and large stimulus packages are boosting consumer sentiment and demand from health care, packaging, consumer durables, textiles and automobiles, Reliance said in its earnings presentation last week. Demand for polymers and polyesters has been particularly strong in India, it said.Trouble in TexasThis isn’t just a story about strong demand. The chemicals industry is also just coming back from several major supply disruptions.Back-to-back hurricanes on the U.S. Gulf Coast last year were followed by unusually cold weather in February, which knocked out much of the electricity grid in Texas and forced giant petrochemical facilities to shut down. Two months later, many are still not back working at full-capacity.The region has become a dominant player in the world’s plastics trade thanks to natural gas liquids -- a cheap petrochemical feedstock -- coming out of the Texas shale boom. For example, North America is the world’s biggest producer of high-density polyethylene, used in everything from shampoo bottles to snowboards. It’s also the largest exporter of PVC.“The big freeze sent a shockwave through global petrochemical markets,” Vienna-based consultant JBC Energy GmbH said in a note. While almost all of the plants that were disabled by the weather have been brought back online, inventories of many chemicals are still low, keeping prices elevated, it said.The price of ethylene, the chemical building block for everything from plastics to solvents, reached a seven-year high of 59.5 cents a pound in March, according to ICIS, a data and analytics provider. PVC reached a record high of $1,625 a ton that month.Even recycled plastic is in high demand, with the price of polyethylene terephthalate, or PET, used for drinks bottles and packaged food, reaching a 10-year high of 1,250 euros ($1,519) a metric ton in northwest Europe on Wednesday, according to S&P Global Platts.“If you were able to get back up and running quickly after the storm” you found a marketplace desperate for your product that “would almost pay any price to get it,” said Jeremy Pafford, head of North America at ICIS.The tight supply and demand balance for many chemicals looks set to continue in the second quarter, Exxon Chief Executive Officer Darren Woods said on a call with analysts last week. Dow and LyondellBasell have said they are currently selling everything they produce and don’t anticipate being able to restock inventories until the third or fourth quarter.To manufacture enough chemicals to satisfy customer demand and start building up its stockpiles again, the U.S. needs “four dull months” without any further disruption, said Pafford.But hurricane season is just around the corner, and the global economy does not have time on its side.The world is expected to see a surge in spending in the coming months as many countries end their lockdowns and cooped-up consumers dip into their savings or stimulus checks. That could happen alongside the continuation of pandemic-driven trends such as high demand for plastic medical goods as new strains of Covid-19 trigger fresh outbreaks around the world.“Demand for personal protective equipment is unlikely to fade soon,” said Armaan Ashraf, an analyst at consultant FGE. “E-commerce, retail, durable goods demand is also likely to remain strong through the rest of this year as well.”(Corrects price in 17th 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. Business Bloomberg 210507 10h37m St. Modwen Investor Says $1.7 Billion Blackstone Bid Too Low (Bloomberg) -- One of St. Modwen Properties Plc’s biggest investors said Blackstone Group Inc.’s 1.2 billion-pound ($1.7 billion) takeover proposal for the U.K. developer is too low.J O Hambro Capital Management Ltd. likely wouldn’t support a sale of the company at Blackstone’s potential bid level of 542 pence per share, it said in response to Bloomberg queries. The fund manager owns just over 9% of St. Modwen, according to the statement.St. Modwen’s current plans will deliver value “well in excess of the potential offer,” Alex Savvides, a senior fund manager at J O Hambro, said by email.“There are unique strengths to this business and its asset base, built up over many years, that the stock market has in recent years consistently failed to recognize,” said Savvides, who helps run J O Hambro’s UK Dynamic Fund. “Our preference would be to work with the existing board to help support, both strategically and financially, the continuation and acceleration of the existing strategy.”Warehouse DemandSt. Modwen announced earlier Friday it received a non-binding proposal from Blackstone about a potential cash takeover bid. Its board would be willing to unanimously recommend the deal if Blackstone makes a firm offer at the proposed level, St. Modwen said in the statement.The company has one of the largest logistics property development pipelines in the U.K., totaling 19 million square feet (1.8 million square meters), according to Savvides. Brexit and the pandemic have accelerated demand for warehouses, he said.“Controlling such a large estate of well-located land in key transport hubs, and with the balance sheet to build out the developments, is therefore a key attraction and competitive advantage for St. Modwen,” Savvides said.The company’s high-growth residential business is an asset which could be sold or spun off at a valuation higher than its current implied value, he said.St. Modwen has an “irreplaceable pipeline of further growth opportunities,” Peel Hunt wrote in a note to clients Friday. While the offer’s 24% premium to net asset value seems attractive, it represents only three years of growth, analysts including James Carswell wrote.Blackstone has until June 4 to make a binding offer for the company, under the U.K.’s takeover rules. Representatives for Blackstone and St. Modwen declined to comment.(Updates with deal background, further J O Hambro comments from fifth 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. Howell date : 210507 10h32m02s Business Bloomberg 210507 10h25m Biden Says Employment Data Show Need for His Economic Plans (Bloomberg) -- President Joe Biden said April’s job gains that were far short of expectations show the need for his plans to boost the economy, rejecting the idea that enhanced unemployment-insurance benefits are keeping Americans from filling millions of vacancies.“It’s clear we have a long way to go,” Biden said at the White House on Friday. “We’re still digging out of an economic collapse that cost us 22 million jobs.”He said money is still being distributed from a $1.9 trillion coronavirus rescue plan he signed in March. “Today’s report just underscores my view of how vital the actions we’re taking are,” he said.The weak data may give a boost to Biden’s $6 trillion economic agenda by blunting arguments that the stimulus legislation he signed in March, combined with his proposed expenditures for infrastructure and social programs, would spur crippling inflation.The fate of Biden’s economic plans rests with the narrowly divided Congress. Passing his proposed $4 trillion worth of long-term spending increases and tax credits, spanning infrastructure to social programs including child care and education, will depend on where lawmakers can find compromise.The jobs report gives Biden a new argument as he seeks support from voters and lawmakers. Employers added 266,000 jobs last month and the jobless rate edged up to 6.1%, the Labor Department said, compared with forecasts for a 1 million increase in payrolls and a drop in unemployment.Spending PlansRepublicans in Congress have balked at the scope and size of the proposals. Democrats have been less united on the overall size of the proposals than they were in approving Biden’s virus aid package. The new spending plans could be debated by Congress well into the fall or even 2022.Republicans and companies seized on the jobs numbers to blame the extra $300 weekly unemployment benefits extended in March -- which run through September -- as keeping workers from filling job openings. Biden said there has been “nothing measurable” from the benefits’ impact on job growth.“Today’s report is a rebuttal of the loose talk that Americans just don’t want to work,” Biden said. “The data shows that more workers are looking for jobs and many can’t find them.”While he acknowledged that “I know some employers are having trouble filling jobs,” he said most middle-class and working-class Americans that he knows feel that “a job is a lot more than a paycheck” and value the dignity of work.Corporate TaxBiden has opened the door to compromise and hinted he could support a lower increase in the corporate tax rate than he had initially floated.Labor Secretary Marty Walsh told Bloomberg Television in an interview that under normal circumstances, Friday’s jobs numbers would have indicated a “great month.” But he conceded: “We still have a steep climb, we still have a ways to go.”Some economists have raised concern that Biden’s proposals could overheat the economy.Businesses have also criticized the enhanced unemployment-insurance benefits in the relief bill as keeping workers at home and making it tougher for firms to fill vacant positions. It’s an argument Republicans have embraced, though economists have questioned how strong that dynamic is.“The evidence that large numbers of Americans are choosing to stay at home because unemployment benefits are enough for them is substantially overstated,” said Carl Tannenbaum, chief economist at Northern Trust in Chicago. He pointed out that many states end their support after 27 weeks.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. Business Bloomberg 210507 10h24m Stocks Climb as Jobs Surprise Curbs Rotation Trade: Markets Wrap (Bloomberg) -- Stocks climbed after weaker-than-estimated U.S. jobs data stunned investors, easing fears about higher inflation and a stimulus cutback. The dollar slumped, while Treasuries fluctuated.The long-awaited employment report rattled markets, with payrolls up only 266,000 in April, trailing the projected 1 million surge. With the softer figures signaling challenges to the economic recovery, investors piled back into the perceived safety of pandemic darlings -- megacap companies flush with cash. Tech shares led gains in the S&P 500, while financial, industrial and commodity stocks lagged behind. The Nasdaq 100 outperformed major equity benchmarks.A gauge of giant growth companies such as Facebook Inc., Apple Inc., Amazon.com Inc., Netflix Inc., and Alphabet Inc.’s Google climbed. Stay-at-home stocks battered all week amid rising concern that inflation was imminent also rallied, with Roku Inc. jumping 11% while Zoom Video Communications Inc. added 2%.“It’s a big surprise,” said Matt Maley, chief market strategist at Miller Tabak & Co. “It’s going to throw a big wrench in the works of the big rotation trade we’ve seen recently. The decline in U.S. 10-year yield is going to hurt the banks and help the techs. It should also cause some problems for commodities which have been rallying very strongly in expectations of higher inflation.”Read: Faang Rout Is Reconsidered After Jobs Data: Wall Street ReactsInflation worries have been mounting against a backdrop of soaring commodities prices. Federal Reserve Bank of Minneapolis President Neel Kashkari told Bloomberg Television that he has “zero sympathy” for critics on Wall Street, who slam the central bank’s aggressive support of the U.S. economy while millions of Americans remain out of work.“We need to rebuild this labor market and put them back to work. Then there will be plenty of time to normalize monetary policy,” he said.These are some of the main moves in markets:StocksThe S&P 500 rose 0.7% as of 12:23 p.m. New York timeThe Nasdaq 100 rose 1.2%The Dow Jones Industrial Average rose 0.4%The MSCI World index rose 0.9%CurrenciesThe Bloomberg Dollar Spot Index fell 0.6%The euro rose 0.7% to $1.2155The British pound rose 0.7% to $1.3988The Japanese yen rose 0.5% to 108.59 per dollarBondsThe yield on 10-year Treasuries was little changed at 1.57%Germany’s 10-year yield advanced one basis point to -0.22%Britain’s 10-year yield declined two basis points to 0.77%CommoditiesWest Texas Intermediate crude rose 0.3% to $65 a barrelGold futures rose 0.9% to $1,832 an ounceFor 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. Business Yahoo Finance 210507 10h22m A third of Americans believe US has made progress in addressing racism last year: Report A third of Americans think the U.S. has made progress in addressing racism over the last year, according to global communications firm Edelman, which recently released its Trust Barometer on racism in America. Business Reuters 210507 10h19m UPDATE 1-Tencent-backed Waterdrop slumps in NYSE debut Shares of Chinese gaming giant Tencent-backed online insurance technology firm Waterdrop Inc tumbled 14.5% in their New York debut on Friday. American depositary shares of the company opened at $10.25, before recovering to $11.50. Waterdrop's founder and chief executive, in an interview with Reuters earlier in the day, said the company would focus more on user growth than on profit in the short term. Business Reuters 210507 10h11m New York hedge fund founder Kamensky sentenced to prison in Neiman Marcus fraud NEW YORK (Reuters) -The New York hedge fund founder who predicted he might "go to jail" for corrupting the sale of some assets during the bankruptcy of Neiman Marcus was sentenced on Friday to six months in prison. Daniel Kamensky, 48, had pleaded guilty in February to bankruptcy fraud for pressuring Jefferies Financial Group not to bid for securities belonging to the luxury retailer's creditors so his now-closed Marble Ridge Capital LP could buy them at a lower price. U.S. District Judge Denise Cote, who imposed the sentence, said she found Kamensky "deeply remorseful" but that he "came undone" from the pressures of running Marble Ridge. Howell date : 210507 10h01m25s Business Bloomberg 210507 09h41m Copper Jumps to Record as Growth Bets Supercharge Commodities (Bloomberg) -- Copper soared to a fresh all-time high as optimism about a global rebound from the pandemic boosts commodities markets.The metal -- an economic bellwether -- is front and center in a rally that’s driven raw materials from lumber to iron ore to multiyear highs or records. Stimulus measures and vaccine rollouts are fueling prospects for a resurgence in demand that’s set to strain supply, while copper’s crucial role in the green-energy transition is expected to underpin longer-term gains.At the same time, a lack of mine investment may leave the market short of the supply needed to meet demand. Big banks and others including trader Trafigura Group have rolled out a list of lofty price targets that suggest there’s more room to run, with the latter predicting copper will hit $15,000 a ton in the coming decade.The surge in raw materials is also stoking fears of inflation, and questions are building around the need for a response from central banks. While policy makers from the Federal Reserve on down maintain that cost increases are temporary, some businesses are already announcing they’ll need to raise prices.Futures in London charged past the 2011 record -- set around the peak of the last commodities supercycle -- and kept going, rising as high as $10,398 a ton, even after a disappointing U.S. jobs report on Friday.“If inflation induces tighter policy it would hurt copper,” said Ryan McKay, an analyst at TD Securities. But “the weaker jobs report this morning highlights the economy is certainly not running too hot right now.”Federal Reserve officials reiterated this week that U.S. inflation is unlikely to get out of control despite the unprecedented government spending that’s been authorized in response to the pandemic.Copper rose as much as 3% before trading at $10,378.50 by 3:18 p.m. in London. Prices are up more than 30% this year and have more than doubled from lows in March of last year.It’s not just copper. Steel prices across Asia and North America are booming, iron ore is at a record above $200 a ton as miners struggle to keep up with the frenzied pace of consumption, and tin topped $30,000 for the first time in a decade. The Bloomberg Commodity Spot Index jumped to its highest since 2011 as growth bets boost demand, while poor weather hurts crop prospects and transportation bottlenecks crimp supplies.China RiskThere are risks to the rally, especially if the current strong period of manufacturing starts to ease. In China, the top consumer, signs are emerging that high copper prices are starting to bite, and authorities have pledged to stabilize raw material prices.China’s imports of copper ore and concentrate fell in April from the previous month, according to customs data released Friday. Some manufacturers and end-users have been slowing production or pushing back delivery times after costs surged, Shanghai Metals Market said last week, while weaker-than-expected domestic consumption has opened the arbitrage window for exports.With China’s strategic stockpiles, “they could ease price pressures by selling if they needed,” said TD Securities’ McKay. “But I think this hot run in copper will only be short-term, and other forces such as the peaking Chinese credit supply and fiscal drag in the U.S. will weigh on the metal longer term.”Higher prices means substitution could accelerate, Bank of America Corp. analysts including Michael Widmer said in a note this week. That could come by reducing copper content in applications, as well as engineering out of copper in products.Short SupplyReal shortages of raw materials that power the economy are driving current gains in commodities as much as anticipation of future demand, according to Greg Sharenow, who manages a portfolio focused on energy and commodities at Pacific Investment Management Co. The global copper market will flip into a deficit this year as demand jumps 6%, according to Bank of America.Read more: Biggest Copper Supplier Is Giving Bulls Another Reason to CheerThe commodity surge has also sent the miners soaring. Freeport-McMoRan Inc., the biggest publicly traded copper miner, is at the highest in almost a decade, while Rio Tinto Group is trading near a record high, propelled by iron ore and copper prices.Yet, while the biggest miners are universally bullish on the outlook for copper, there are few new projects on the horizon, constraining future supply. Ivan Glasenberg, the billionaire boss of Glencore Plc, said Thursday that prices would have to hit $15,000 a ton to incentivize enough new supply to meet demand.More broadly, capital expenditure on copper mining operations is expected to increase only marginally this year -- to $16.2 billion from $15.2 billion in 2020 -- and remain around that level for the next two years, Australia & New Zealand Banking Group Ltd. forecasts.“The copper market as it currently stands is not prepared for this demand environment,” Goldman Sachs Group Inc. analysts including Nicholas Snowdon wrote in a report last month. The “combination of surging demand and sticky supply has reinforced current deficit conditions and foreshadows large open-ended deficits from mid-decade,” they wrote.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. Business Yahoo Finance Video 210507 09h35m El Pollo Loco CEO: We're fortunate we haven't had any hiring challenges Bernard Acoca, El Pollo Loco’s President and CEO, joins Yahoo Finance Live to break down the company's Q1 earnings, weigh in on the chicken shortage and outlook on the U.S. labor shortage amid the pandemic. Business Bloomberg 210507 09h29m Stocks Climb as Jobs Shocker Curbs Rotation Trade: Markets Wrap (Bloomberg) -- Stocks climbed after weaker-than-estimated U.S. jobs data stunned investors, easing fears about higher inflation and a stimulus cutback. The dollar slumped, while Treasuries rose.The long-awaited employment report rattled global markets, with payrolls up only 266,000 in April, trailing the projected 1 million surge. With the softer figures signaling challenges to the economic recovery, investors piled back into the perceived safety of pandemic darlings -- megacap companies flush with cash.Tech shares led gains in the S&P 500, while financial, industrial and commodity stocks lagged behind. The Nasdaq 100 outperformed major equity benchmarks. Stay-at-home stocks battered all week amid rising concern that inflation was imminent staged a comeback -- with Roku Inc. jumping 14% while Zoom Video Communications Inc. added 3.5%. Peloton Interactive Inc. climbed 5%.“It’s a big surprise,” said Matt Maley, chief market strategist at Miller Tabak & Co. “It’s going to throw a big wrench in the works of the big rotation trade we’ve seen recently. The decline in U.S. 10-year yield is going to hurt the banks and help the techs. It should also cause some problems for commodities which have been rallying very strongly in expectations of higher inflation.”Read: Faang Rout Is Reconsidered After Jobs Data: Wall Street ReactsInflation worries have been mounting against a backdrop of soaring commodities prices. Federal Reserve Bank of Minneapolis President Neel Kashkari told Bloomberg Television that he has “zero sympathy” for critics on Wall Street, who slam the central bank’s aggressive support of the U.S. economy while millions of Americans remain out of work.“We need to rebuild this labor market and put them back to work. Then there will be plenty of time to normalize monetary policy,” he said.These are some of the main moves in markets:StocksThe S&P 500 rose 0.8% as of 11:27 a.m. New York timeThe Nasdaq 100 rose 1.3%The Dow Jones Industrial Average rose 0.4%The Stoxx Europe 600 rose 0.8%The MSCI World index rose 1%CurrenciesThe Bloomberg Dollar Spot Index fell 0.6%The euro rose 0.7% to $1.2154The British pound rose 0.7% to $1.3992The Japanese yen rose 0.5% to 108.51 per dollarBondsThe yield on 10-year Treasuries declined two basis points to 1.55%Germany’s 10-year yield was little changed at -0.22%Britain’s 10-year yield declined two basis points to 0.77%CommoditiesWest Texas Intermediate crude was little changedGold futures rose 1.1% to $1,836 an ounceFor 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. Business Yahoo Finance Video 210507 09h24m Qurate Retail CEO on Q1 earnings, future of retail Mike George, Qurate Retail, Inc. President & CEO, joins Yahoo Finance Live to discuss the company’s strong Q1 earnings and assess the outlook for retail amid the pandemic. Howell date : 210507 09h30m49s Business Reuters 210507 09h21m Fed's super-easy policy likely to stick after weak jobs report WASHINGTON (Reuters) -The 266,000 jobs that U.S. firms added in April were "nowhere near" what was expected, a Federal Reserve official said Friday, adding little to the "substantial further progress" officials want to see before considering changes to monetary policy. "I hoped to see a stronger report today," Richmond Federal Reserve president Thomas Barkin said in webcast comments to a West Virginia business group. Still, it gives Fed policymakers little reason to do anything but keep the monetary policy tap wide open until it is clear the economy is on a path back to full employment. Business Bloomberg 210507 09h20m Uruguay Sidesteps Regional Tax Frenzy in Bid to Trim Deficit (Bloomberg) -- Uruguay is committed to trimming its deficit and getting the economy on track without resorting to the big private sector tax hikes that other South American countries are seeking to pay for the pandemic, Finance Minister Azucena Arbeleche said.Instead, President Luis Lacalle Pou slapped a temporary income tax on a small group of civil servants and redirected $660 million in unnecessary spending to fight the pandemic.“We aren’t contemplating an increase in taxes right now -- the road to improving fiscal accounts is through greater efficiency in structural spending,” Arbeleche, one of the few female finance chiefs in the Americas, said in an interview. “The population isn’t footing the bill.”Raising taxes, especially on businesses and the rich, to fund stimulus programs and narrow deficits has gained support across the Americas in recent months. Argentina said its new wealth tax netted $2.4 billion, while Chilean lawmakers want to raise taxes on the rich and mining companies. A poorly communicated tax bill in Colombia that would have affected the middle class and poor triggered days of rioting and bloodshed.Unrest Roiling Colombia May Hit Economy, Central Banker SaysMore efficient spending and an expected increase in tax revenue as the economy recovers will help fund $900 million in pandemic aid and lower the public sector deficit, which hit 6% of gross domestic product in 2020, to around 4.3% this year, Arbeleche said.“Fiscal improvements can’t be postponed,“ she said.The Finance Ministry lifted its 2021 bond funding needs by $210 million to $3.86 billion to pay the deficit and maturing debt.“Uruguay’s spreads are at good levels. The vaccination process is very advanced with a clear plan, which makes us think that Uruguay is in a good moment for international market issuances,” she said.Low GrowthAfter managing to contain the pandemic during most of 2020, Uruguay now has one of the highest levels of infections and deaths per 1 million people in the world due to complacency by its citizens, the spread of Brazil’s P1 variant and the government’s decision to forgo a hard lockdown. A vaccination program that has delivered two shots to more than a fifth of the country’s 3.5 million people is still weeks away from lowering infections.The worsening of the pandemic has dimmed Uruguay’s near term growth outlook with the most recent central bank survey of analysts putting growth at 2.7% in 2021. GDP will probably expand 3% to 3.5% this year, Arbeleche said.Uruguay was struggling even before the pandemic triggered its first recession in 17 years with annual growth averaging just 0.9% between 2015 and 2019. The construction of a $3 billion pulp mill and related infrastructure by Finland’s UPM has thrown a badly needed lifeline to an economy that shrank 5.9% last year, but few see a return to the economic boom the country enjoyed a decade ago.Credit rating companies have flagged low growth and high deficits as a risk to the country’s investment grade rating.The Lacalle Pou administration temporarily waived some business taxes and expanded investment tax breaks to revive the economy. Investors have responded by pitching projects for more than $2.3 billion, Arbeleche said.“It’s necessary to recover investment and achieve greater dynamism in the economy to create jobs,” she said.(Updates with details, comments on Uruguay’s bond funding plans in seventh, eighth 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. Business Bloomberg 210507 09h17m Nikola Beats Estimates, Details Additional SEC Probe Inquiry (Bloomberg) -- Nikola Corp. posted a narrower-than-expected loss for its latest quarter as the troubled electric-vehicle startup ramped up testing of its debut battery-electric semi trucks and made progress on building factories in the U.S. and Germany.The clean-energy big rig maker reported an adjusted loss Friday of 14 cents a share in the first three months of the year, which was better than analysts’ consensus estimate for a 28 cents loss. Nikola said in a statement it’s nearing completion of a second batch of battery-powered prototypes and has begun the assembly of a fuel-cell test vehicle at its headquarters in Arizona.The Phoenix-based company has yet to build a vehicle for sale but wants to establish itself as a competitor in the emerging clean-energy commercial truck market. It has been dogged by allegations it misled investors, something an internal probe partially confirmed. Nikola said in a separate filing Friday that securities regulators investigating the company issued an additional subpoena in March.Nikola was one of the first of many EV startups targeted by special purpose acquisition companies and at one time saw its valuation surpass the market capitalization surpass of established automakers such as Ford Motor Co. But its shares have plunged in recent months.The stock rose 12% to $11.37 as of 11:06 a.m. in New York. It had fallen about 33% this year as of the close on Thursday.“It’s a relief rally after no major negative news, although the chip shortage remains a headwind for Nikola and others,” Wedbush analyst Daniel Ives said in an email. He has a neutral rating on the stock. “The Street was fearing some elephant in the room to come out on the call.” New SEC SubpoenaNikola said the new subpoena issued by the U.S. Securities and Exchange Commission on March 24 relates to its projected 2021 cash flow and how it plans to use funds from capital raises this year. The company, which had previously disclosed investigations by the SEC and the Department of Justice, said it’s committed to complying with all investigation.The company also disclosed that it paid $3 million in legal fees in the first quarter for Trevor Milton, its founder and former executive chairman, who resigned in September. The payments were made under the terms of an indemnification agreement.“We believe the details given were relatively positive,” said Evercore ISI analyst Chris McNally, who has a hold equivalent rating on the stock, in a note to clients. “SEC and DOJ investigations also remain with unclear timeline resolution.”While not yet revenue-generating, Nikola plans to launch its first hydrogen-powered fuel cell truck in 2023. It also plans to start production of battery-electric trucks this year in Germany in a joint venture with CNH Industrial NV’s Iveco unit and start deliveries in the fourth quarter. And the company has said it’s on track to complete the first phase of a factory under construction in Arizona by year-end, with trial production starting in July.“We have had continued success in commissioning and validating the Nikola Tre BEVs, and are nearing completion of both our Ulm, Germany and Coolidge, Arizona manufacturing facilities,” Nikola’s Chief Executive Officer Mark Russell said in a statement.Nikola is one of several players seeking to commercialize hydrogen-fuel cell powertrains for long-distance transportation. Others include larger rivals such as Toyota Motor Corp., Hyundai Motor Co. and General Motors Co. GM, which scaled back its once-ambitious plans to partner with Nikola, still plans to supply the startup with its proprietary fuel cell technology.Hydrogen Fueling StationsProduction of short- and long-range fuel cell trucks is expected to start at the Arizona plant in the second half of 2023 and 2024, respectively. Nikola also plans to develop as many as 700 hydrogen stations in the U.S. to power the trucks and originally promised to find a co-development partner in 2020.Nikola hopes to test a prototype fuel-cell truck in a joint beer delivery pilot with Anheuser-Busch InBev this year, Russell said during a call with analysts.Last month the company signed a deal to build hydrogen fueling stations with TravelCenters of America Inc. The deal was a small sign of progress on its business plan after several blown deadlines for announcing a partner. Nikola announced a letter of intent Thursday to supply Total Transportation Services with 100 trucks -- 30 battery-electric and 70 fuel-cell big rigs -- by 2023.Nikola said it still aims to find additional hydrogen infrastructure partners this year, as well as more fleet customers to test its vehicles. On the earnings call, Chief Financial Officer Kim Brady said the company could install as many as 10 fueling stations by the end of 2023 to support their targeted production of fuel-cell trucks.Battery cell supply constraints are hampering Nikola’s ability to produce BEV trucks. The company says it will produce between 50 and 100 units this year. Russell said the company’s cell suppliers are not taking orders for 2022 battery cell supply and he does not expect agreements to be reached until the summer.The aspiring truckmaker said it aims to deliver 1,200 BEV trucks next year and 3,500 in 2023. In February, Nikola lowered its target for delivering battery-electric Tre semis to customers this year to 100 vehicles, down from a previous target of 600. It lost a major order in December when Republic Services Inc. canceled a non-binding contract for 2,500 battery-electric garbage trucks.(Updates with analysts comments in the sixth and eigth paragraphs, details from the earnings call throughout; Updates shares.)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. Business Bloomberg 210507 09h15m Science 37 Is Going Public Via LifeSci II SPAC Merger (Bloomberg) -- Science 37 Inc., a digital operating system that facilitates clinical trials, has agreed to go public through a reverse merger with a blank-check company.The Los Angeles-based firm will merge with special purpose acquisition company LifeSci Acquisition II Corp., according to an announcement Friday, which confirmed a Bloomberg News report. The deal values Science 37 at $1.05 billion, including debt.The transaction will include a $200 million private placement from investors including BlackRock Inc., Lux Capital, Mubadala Investment Co., PPD Inc. and the SPAC sponsor’s affiliate, LifeSci Venture Partners, the statement showed.Science 37, whose name references the normal human body temperature in Celsius, allows patients to participate in trials of new drugs and medical equipment from their homes.Researchers use its platform to conduct telehealth check-ins, as well as for administrative tasks such as securing patient consent agreements, according to its website. The company lists Amgen Inc. and Genentech Inc. among its investors and partners.Having to go to a specific site for these trials can often deter patients, Science 37 Chief Executive Officer David Coman said in an interview.“One of the other big issues for traditional site-based models is that they’re typically in neighborhoods that don’t get the under-served patient population,” he said. “An average trial will have a third less diversity in it than the standard population.”LifeSci Acquisition II, backed by boutique investment bank LifeSci Capital, raised $80.1 million in November in an initial public offering. It said in its listing documents that it was seeking targets in the biopharma, medical technology, digital health and health-care services sectors.The vehicle only offered shares and no warrants, which are a common feature in SPACs.Its stock rose 6.5% to $10.75 at 11:04 a.m. in New York on Friday.“The SPAC marketplace ebbs and flows, ups and downs,” said Andrew McDonald, chief executive officer of LifeSci Acquisition II. “We recognize that it was going to be a competitive environment for SPACs and that we would have to differentiate ourselves.”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. Business Yahoo Finance Video 210507 09h14m Crypto is a ‘speculative asset’: strategist Craig Fehr, principal and investment strategist at Edward Jones, weighs in on the April jobs report, discusses his stock market outlook, and shares his thoughts on the state of crypto. Business Reuters 210507 09h08m JPMorgan names two new CIOs for tech units JPMorgan Chase has appointed James Reid as chief information officer for a new unit focused on developing and modernising technology used by the bank's 250,000 employees, an internal memo sent on Friday and seen by Reuters showed. JPMorgan, the largest U.S. bank by assets, has also appointed company-wide chief data officer Melissa Goldman as chief information officer for the renamed Finance, Risk, Data and Controls technology unit, the memo said. In her role, Goldman will continue to lead a team developing technology for risk, compliance, finance, liquidity, controls and data functions. Howell date : 210507 09h00m11s Business Reuters 210507 08h42m Data shows waning COVID impact on U.S. jobs searches, White House's Boushey says Data in the U.S. Labor Department's April jobs report shows people are out looking for work, with fewer citing COVID-19 as keeping them from their searches, White House economic adviser Heather Boushey said on Friday. "There are indications throughout this report that people are increasingly searching, increasingly ready to get back to work, not saying that COVID is preventing them from getting a job, and I think that is all movement in the right direction," she said. Business Reuters 210507 08h38m UPDATE 1-Data shows waning COVID impact on U.S. jobs searches, White House's Boushey says Data in the U.S. Labor Department's April jobs report shows people are out looking for work, with fewer citing COVID-19 as keeping them from their searches, White House economic adviser Heather Boushey said on Friday. "There are indications throughout this report that people are increasingly searching, increasingly ready to get back to work, not saying that COVID is preventing them from getting a job, and I think that is all movement in the right direction," she said. Business Bloomberg 210507 08h38m U.S. Job Growth Disappoints in Challenge to Economic Recovery (Bloomberg) -- Discover what’s driving the global economy and what it means for policy makers, businesses, investors and you with The New Economy Daily. Sign up here.U.S. job growth significantly undershot forecasts in April, suggesting that difficulty attracting workers is slowing momentum in the labor market and challenging the economic recovery.Payrolls rose 266,000 from a month earlier, according to a Labor Department report Friday that represented one of the largest downside misses on record. Economists in a Bloomberg survey projected a 1 million hiring surge in April.The unemployment rate edged up to 6.1%, though the labor-force participation rate also increased.The report stunned investors as Treasury yields plunged and the dollar turned sharply lower. U.S. stocks rose on expectations that monetary policy will remain conducive to economic growth for a sustained period. The eurodollar market pushed back its pricing for a Federal Reserve rate increase to mid-2023.Follow reaction in real-time here on Bloomberg’s TOPLive blogThe disappointing payrolls print leaves overall employment more than 8 million short of its pre-pandemic level and is consistent with recent comments from company officials highlighting challenges in filling open positions.“It’s a lot faster to lay off workers than it is to hire them back,” said Sarah House, senior economist at Wells Fargo & Co. “While we are seeing some workers come back into the labor force it just isn’t fast enough.”While job gains accelerated in leisure and hospitality, employment at temporary-help agencies and transportation and warehousing declined sharply.Fed Chair Jerome Powell said last week the dichotomy between a large number of unfilled positions and millions of unemployed likely reflects a combination of a skills gap, child care obligations and lingering virus fears.What Bloomberg Economics Says...“April payrolls fell dramatically short of expectations, as a clumsy reopening of the economy appears rife with frictions, such as skills-mismatches, parents unable to return to the workforce amid a significant share of schools not yet open, and far from complete vaccination efforts.”-- Carl Riccadonna, Yelena Shulyatyeva, Andrew Husby and Eliza Winger, economistsFor the full note, click hereMassive fiscal stimulus including the latest $1.9 trillion package passed by President Joe Biden in March may also be impacting the pace of job growth. Some firms indicate enhanced unemployment benefits and the latest round of pandemic-relief checks are discouraging a return to work even as job openings approach a record.A sustained period of tepid job gains could support calls for further government spending. In an interview with Bloomberg Television, Minneapolis Fed President Neel Kashkari said the data justified why the Fed is continuing to deliver its own stimulus. “Today’s jobs report is just an example of we have a long way to go and let’s not prematurely declare victory,” he said.On an unadjusted basis, payrolls rose by more than 1 million last month. Seasonal adjustments usually call for a large hiring gain in April, which may in part explain why the headline number fell short of forecasts.Another reason for the more moderate employment gain is problems in the nation’s supply chains. For instance, motor vehicle production has been severely hampered by shortages of semiconductors. The jobs report showed manufacturing payrolls declined 18,000 in April, driven by a sharp fall in jobs at automakers.Average hourly earnings rose 0.7% in April from a month earlier, to $30.17, the jobs report showed. The wage data for April suggest that the rising demand for labor associated with the recovery from the pandemic may have put upward pressure on wages, the Labor Department said in a statement.A separate measure of compensation that isn’t subjected to shifts in industry employment -- the employment cost index -- rose 0.9% in the first quarter. That was the largest quarterly gain since 2007, according to the Labor Department’s data last week.“While the jobs numbers themselves were certainly disappointing, I think there are a few nuggets in here that are positive development,” House said.Participation RateLabor force participation, a measure of the percentage of Americans either working or looking for work, rose to 61.7% in April from 61.5%, likely supported by increased vaccinations that helped fuel the reopenings of many retail establishments, restaurants and leisure-facing businesses.Average weekly hours increased to match the highest in records dating back to 2006. The gain in the workweek, increased pay and the improvement in hiring helped boost aggregate weekly payrolls 1.2% in April after a 1.3% gain a month earlier.Workforce participation for men age 25 to 54 increased last month, while edging lower for women.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. Business Reuters 210507 08h36m UPDATE 1-MSCI EM currency index hits record high on skidding dollar, perky yuan The developing markets currency benchmark, which is dominated by Asian currencies such as China's yuan , jumped as much as 0.6% to 1,737.80. Major banks are divided over the outlook for emerging market currencies after a year-end euphoria saw investors pile in thick and fast. Meanwhile BlackRock recently upgraded local currency bonds to overweight, saying underperformance year-to-date had made valuations more appealing, especially against a backdrop of Treasury yields and the dollar stabilising. Business Reuters 210507 08h35m EMERGING MARKETS-Latam FX set for best week this year as real nears four-month high * Brazil's retail sales drops in March, far less than expected * Mexican inflation jumps to highest since December 2017 * U.S. jobs growth slows in April; Dollar falls By Shashank Nayar May 7 (Reuters) - Latin American currencies gained on Friday and were set for large weekly gains as weak payrolls data pushed the dollar to a more-than two-month low, while Brazil's real jumped to a near four-month high after retail sales fell less than expected. MSCI's index of Latin American currencies rose 0.9% to a near four-month high and was set for its best week since November, while stocks firmed 1.5%. Brazil's real rose 0.7% after retail sales volumes fell 0.6% in March from February, far less than the 7.0% decline forecast by a Reuters poll of economists. Howell date : 210507 08h29m34s Business Yahoo Finance Video 210507 08h14m Top jobs in America: LinkedIn ranks the 50 best workplaces LinkedIn recently launched their 2021 Top Companies list, which deep dives into the 50 best workplaces to grow your career in America. Laura Lorenzetti, LinkedIn Senior Managing Editor joins Yahoo Finance Live to weigh in. Business Reuters 210507 08h08m Fed's super-easy policy likely to stick after weak jobs report The 266,000 jobs that U.S. firms added in April give Federal Reserve policymakers little reason to do anything but keep the monetary policy tap wide open until it is clear the economy is on a path back to full employment. The unemployment rate rose to 6.1% and remains well above the 3.5% it reached in the months before the pandemic, the Friday report showed. The numbers are sure to disappoint Atlanta Federal Reserve president Raphael Bostic, who on Thursday said he was anticipating "a really strong number" in excess of a million new positions. Business Bloomberg 210507 08h05m Tech Leads Gains in Stocks After U.S. Jobs Shocker: Markets Wrap (Bloomberg) -- Tech companies led gains in stocks after weak U.S. jobs data stunned investors, easing fears about higher inflation and a stimulus cutback. The dollar fell, while Treasuries climbed.The long-awaited employment report rattled global markets, with payrolls up only 266,000 in April, largely trailing the projected 1 million surge. With the softer figures signaling challenges to the economic recovery, investors piled back into the perceived safety of pandemic darlings -- megacap companies flush with cash. Tech shares in the S&P 500 rallied, while financial and industrial stocks lagged behind. The Nasdaq 100 outperformed major equity benchmarks.“It’s a big surprise,” said Matt Maley, chief market strategist at Miller Tabak & Co. “It’s going to throw a big wrench in the works of the big rotation trade we’ve seen recently. The decline in U.S. 10-year yield is going to hurt the banks and help the techs. It should also cause some problems for commodities which have been rallying very strongly in expectations of higher inflation.”Read: Faang Rout Is Reconsidered After Jobs Data: Wall Street ReactsInflation worries have been mounting against a backdrop of soaring commodities prices -- copper, for example, set a record high Friday. Federal Reserve Bank of Minneapolis President Neel Kashkari told Bloomberg Television that he has “zero sympathy” for critics on Wall Street, who slam the central bank’s aggressive support of the U.S. economy while millions of Americans remain out of work.“We need to rebuild this labor market and put them back to work. Then there will be plenty of time to normalize monetary policy,” he said.These are some of the main moves in markets:StocksThe S&P 500 rose 0.6% as of 10:05 a.m. New York timeThe Nasdaq 100 rose 0.9%The Dow Jones Industrial Average rose 0.4%The Stoxx Europe 600 rose 0.8%The MSCI World index rose 0.8%CurrenciesThe Bloomberg Dollar Spot Index fell 0.4%The euro rose 0.5% to $1.2123The British pound rose 0.4% to $1.3947The Japanese yen rose 0.4% to 108.70 per dollarBondsThe yield on 10-year Treasuries declined three basis points to 1.54%Germany’s 10-year yield was little changed at -0.23%Britain’s 10-year yield declined three basis points to 0.76%CommoditiesWest Texas Intermediate crude rose 0.4% to $65 a barrelGold futures rose 1.2% to $1,838 an ounceFor 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. Business Reuters 210507 08h05m FOREX-Dollar slides to more than two-month low after big U.S. jobs miss The dollar fell to its lowest in more than two months on Friday after U.S. jobs data for April came in well below expectations, putting a damper on hopes that a roaring economic recovery would lead to higher rates any time soon. "The dollar is really getting spanked this morning," said Boris Schlossberg, managing director of FX strategy at BK Asset Management. It also means U.S. interest rates will stay at ultra-low levels for quite a while and that is going to keep the pressure on the dollar, Schlossberg added. Business Reuters 210507 08h01m Europe's consumers face rising prices but the ECB is unfazed LONDON (Reuters) -Europe's consumers will feel the hit from price rises this year as companies seek to recoup revenues and cover pandemic-related costs. Over the past year, the fallout from COVID-19 has contorted both the demand and supply sides of the global economy, creating bottlenecks in supply chains, havoc in freight markets and a rally in raw materials from corn to copper. Lockdowns, meanwhile, have deprived well-off consumers in Europe and elsewhere of the opportunities to spend their cash, creating record levels of savings and a window of opportunity for companies to push through price increases. Howell date : 210507 07h58m56s Business Reuters 210507 07h56m UPDATE 1-Banco do Brasil CEO says Bolsonaro demanded higher profitability Banco do Brasil SA's new chief executive on Friday denied any political interference at the bank, saying President Jair Bolsonaro had only asked him to work on improving the state-controlled lender's profitability. Fausto Ribeiro took the helm in April, replacing Andre Brandao, who quit in March after a tussle with Bolsonaro over a cost-cutting plan that included the closure of several branches and an employee buyout program. Business Yahoo Finance 210507 07h53m Shopify exec explains why entrepreneurship isn't 'anywhere close to peak' It's never been easier to start a business. That's according to Loren Padelford, vice president and general manager of revenue at Shopify, which powers digital storefronts for over 1.7 million businesses across 175 countries. Business Bloomberg 210507 07h51m Tech Leads Gains in Stocks After U.S. Jobs Shocker: Markets Wrap (Bloomberg) -- Tech companies led gains in stocks after weak U.S. jobs data stunned investors, easing fears about higher inflation and a stimulus cutback. The dollar fell, while Treasuries climbed.The long-awaited employment report rattled markets, with payrolls up only 266,000 in April, largely trailing the projected 1 million surge. With the softer figures signaling challenges to the economic recovery, investors piled back into the perceived safety of pandemic darlings -- megacap companies flush with cash. Tech led gains in the S&P 500, while financial and industrial shares lagged behind. The Nasdaq 100 outperformed major equity benchmarks.“It’s a big surprise,” said Matt Maley, chief market strategist at Miller Tabak & Co. “It’s going to throw a big wrench in the works of the big rotation trade we’ve seen recently. The decline in U.S. 10-year yield is going to hurt the banks and help the techs. It should also cause some problems for commodities which have been rallying very strongly in expectations of higher inflation.”Read: Faang Rout Is Reconsidered After Jobs Data: Wall Street ReactsIn an interview with Bloomberg Television, Minneapolis Federal Reserve President Neel Kashkari said the data justified why the central bank is continuing to deliver stimulus. “Today’s jobs report is just an example of we have a long way to go and let’s not prematurely declare victory,” he said.These are some of the main moves in markets:StocksThe S&P 500 rose 0.5% as of 9:50 a.m. New York timeThe Nasdaq 100 rose 1%The Dow Jones Industrial Average rose 0.3%The Stoxx Europe 600 rose 0.7%The MSCI World index rose 0.7%CurrenciesThe Bloomberg Dollar Spot Index fell 0.4%The euro rose 0.5% to $1.2121The British pound rose 0.4% to $1.3941The Japanese yen rose 0.3% to 108.75 per dollarBondsThe yield on 10-year Treasuries declined two basis points to 1.55%Germany’s 10-year yield was little changed at -0.22%Britain’s 10-year yield declined two basis points to 0.77%CommoditiesWest Texas Intermediate crude rose 0.5% to $65 a barrelGold futures rose 1.1% to $1,836 an ounceFor 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. Business Yahoo Finance 210507 07h48m Stock market news live updates: Stocks rise, S&P 500 hits record high as tech shares jump after jobs report miss Stocks traded mixed Friday as investors digested a disappointing April jobs report, which showed the U.S. economy added back far fewer jobs than expected last month despite easing stay-in-place restrictions. World Reuters 210507 07h42m UPDATE 1-Pfizer-BioNTech files for U.S. approval of COVID-19 vaccine Pfizer Inc and German partner BioNTech SA have filed for a full approval for their COVID-19 vaccine, which is now authorized only for emergency use, the drugmakers said on Friday. A nod by the U.S. Food and Drug Administration will make it the first approved COVID-19 shot and likely help ease hesitancy by raising confidence in the vaccine as an approval will be backed by longer-term data. The Pfizer-BioNTech vaccine was the first to be authorized in the United States for emergency use in December based on two months of safety data for a 44,000-person clinical trial. U.S. Bloomberg 210507 07h41m New Jersey Governor Considering Cash as a Vaccine Incentive (Bloomberg) -- New Jersey Governor Phil Murphy said he is considering cash incentives to lure people to get vaccinated.“All things are on the table,” Murphy said Friday of a potential cash lure during an interview on Fox’s “Good Day New York.” The state already is running a “Shot and a Beer” program, with free beverages at New Jersey breweries for people who can show proof of their first vaccine through May 31.Governors and mayors are getting creative with incentives as the pace of vaccinations slow in the U.S. Maryland Governor Larry Hogan on Monday announced that state workers who get a shot will be given $100. In West Virginia, Governor Jim Justice is offering $100 savings bonds for every 16- to 35-year-old who gets vaccinated. New York Yankees and Mets fans who get a shot at the stadium will get a free ticket to another game. In a survey by the University of California at Los Angeles, one-third of unvaccinated people said cash payments of as much as $100 would make them willing to get a shot.Read more here: Economic Incentives to Sway the Vaccine-Hesitant Could BackfireIn New Jersey, the state has fully inoculated 3.3 million residents, about one-third of its population.Starting today, the state is allowing patrons to sit at indoor bars, eat at buffets and dance at weddings, proms and other celebrations. Murphy also increased the outdoor gathering limit to 500 from 200, and raised the indoor events capacity to 50% from 35%. Masking and social-distancing requirements remain in place.All capacity restrictions for indoor and outdoor businesses in New Jersey will be lifted on May 19 as part of a coordinated effort with New York and Connecticut, as hospitalizations for Covid-19 decrease and vaccinations increase.(Adds incentives offered by other governors 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. Politics Yahoo Finance 210507 07h32m Elizabeth Warren on why she battles corporate America: ‘Markets without rules are theft’ Progressive Senator Elizabeth Warren (D-MA) acknowledged that corporations have chosen her side in the fight for voting access, but said it doesn't change her position that corporations wield too much political influence that yields them favorable laws. Howell date : 210506 20h22m33s Business Bloomberg 210506 19h59m China Vaccine Stocks Rebound as Merkel Opposes Patent Waiver (Bloomberg) -- Shares of Covid-19 vaccine developers in Asia got some relief after the German Chancellor rejected a U.S. proposal to waive patent protections for coronavirus shots.Chinese vaccine makers rebounded after slumping on Thursday following the initial news that the U.S. would support discussions for a waiver of the rights to develop vaccines. The Biden administration’s plan would create “severe complications” for the production of vaccines, a German government spokeswoman said Thursday in an email.Shanghai Fosun Pharmaceutical Group Co., which has the rights to develop and market BioNTech SE’s shot in China, advanced as much as 7% in Hong Kong after sinking 14% the previous day. Walvax Biotechnology Co. gained 3.7% in Shanghai, one of the best performers in the benchmark CSI 300 Index.In the U.S., Pfizer Inc., BioNTech SE, Novavax Inc. and CureVac NV all pared an earlier slump.Some analysts had urged for caution to the news prior to Merkel’s announcement. The Biden administration’s plans will only open up a negotiation at the WTO and other countries and members remain unwilling, said Barclays analyst Carter Gould in a note.For Evercore ISI analyst Umer Raffat, U.S. support didn’t mean it was a “100% done deal” as other countries are also opposed. It “remains to be seen if U.S. leadership’s position sways others,” Raffat wrote in a note.With many countries struggling with a resurgence of the virus, U.S. Trade Representative Katherine Tai said Wednesday the Biden administration will take part in negotiations for the text of a waiver of the rights at the World Trade Organization. The European Union said Thursday it was willing to participate.Big BusinessVaccines have been a big business for the firms that make them, with Pfizer, BioNTech’s partner outside of China, raising its forecast for 2021 vaccine sales to $26 billion just this week.Read more: Analysts say investor fears of U.S. vaccine waiver support are overblownThe International Federation of Pharmaceutical Manufacturers & Associations condemned the move as “disappointing.”“A waiver is the simple but the wrong answer to what is a complex problem,” the group said in a statement. “Waiving patents of Covid-19 vaccines will not increase production nor provide practical solutions needed to battle this global health crisis.”(Updates with Asian moves)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. Business Bloomberg 210506 19h58m Asia Stocks Climb After Robust Data Boost U.S.: Markets Wrap (Bloomberg) -- Asian stocks headed higher after rallies in U.S. indexes on positive economic data, and commodities extended their advance. The dollar held losses.Markets opened higher in China and Hong Kong. Shares also rose in Japan, South Korea and Australia. U.S. contracts climbed after renewed gains in U.S. benchmarks overnight, which included a fresh record for the Dow Jones Industrial Average. Copper soared to an all-time high on expectations that rebounding economies will spur a boom in global demand.China’s open shrugged off news overnight that the Biden administration is likely to preserve limits on U.S. investments in certain Chinese companies.U.S. economic reports helped sentiment, as applications for state unemployment insurance fell to a fresh pandemic low, and separate data showed a rebound in productivity. Traders now turn to Friday’s payrolls numbers. Treasuries were steady with yields well below recent highs.“With jobless claims hitting a pandemic-era low, anticipation for the full jobs picture tomorrow mounts,” said Mike Loewengart, managing director of investment strategy at E*Trade Financial. “Today’s read is another proof point that we’re one step closer to full economic recovery. As we see some serious momentum building on the jobs front, all eyes will be on how this plays into action taken by the Fed.”Investors are focusing on strengthening growth in the world’s largest economy, shaking off concerns for now that a faster-than-expected rebound could spur excessive inflation. The Federal Reserve remains committed to near-zero interest rates to bring about a full recovery, though an announcement of a pullback in its heavy monthly bond purchases seems increasingly likely in the second half of this year.Increased attention to stretched valuations could spur more talk of the Fed adjusting policy. The central bank’s semi-annual financial stability report noted rising appetite for risk across a variety of asset markets could exacerbate vulnerabilities in the U.S. financial system.Elsewhere, spot iron ore broke $200 a ton for the first time, while copper approached a record high. Oil climbed.These are some of the main moves in markets:StocksS&P 500 futures were up 0.2% at 10:50 a.m. in Tokyo, after the index rose 0.8%Nasdaq 100 contracts rose 0.4%. The index gained 0.8%.Japan’s Topix Index climbed 0.5%Hong Kong’s Hang Seng Index climbed 0.7%The Shanghai Composite was up 0.1%South Korea’s Kospi was up 0.7%Australia’s S&P/ASX 200 Index rose 0.5%CurrenciesThe Bloomberg Dollar Spot Index was steadyThe euro traded at $1.2067The British pound was $1.3895The Japanese yen was 109.02 per dollarBondsThe yield on 10-year Treasuries was little changed at 1.57%Australia’s 10-year yield rose one basis point to 1.69%CommoditiesWest Texas Intermediate crude traded just below $65 a barrelGold futures traded at $1,815 an ounceFor 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. World Bloomberg 210506 19h39m Australia’s Battered Morrison Bets on Budget to Repair Image (Bloomberg) -- For Australia’s Prime Minister Scott Morrison, Tuesday’s annual budget can’t come soon enough as he tries to put a torrid opening to the year behind him and focus voter attention on the strength of the economic recovery.After having his political judgment questioned, Morrison will attempt to reset the narrative by highlighting his economic stewardship through the pandemic. He’s likely to receive a budget boost as economists see the deficit for the 12 months through June at A$152 billion ($118 billion), about 25% less than Treasury’s December estimate, and unemployment falling to 4.5% in two years.Morrison will be able to showcase his conservative government’s success in stemming business failures and job losses through stimulus programs such as the JobKeeper wage subsidy. He will also be able to point to the authorities successful combating of Covid-19 that kept infections to fewer than 30,000.“Compared to where Australia was a year ago amid a national lockdown that seemed to trigger an economic collapse, most voters are happily surprised about the state of the economy now,” said Helen Pringle, a political researcher at the University of New South Wales. “It’s really a strength of the government and it will be seeking to emphasize that with this budget.”Treasurer Josh Frydenberg pledged that his fiscal blueprint will increase skills, plug workforce shortages and boost aged-care and child-minding services. The government has additional cash to spend from an unexpectedly sharp rise in jobs and a stratospheric iron ore price, providing it with scope to win over voters.The economy’s V-shaped recovery -- with Commonwealth Bank of Australia chief Matt Comyn describing the employment revival as “miraculous” -- comes as Morrison confronts myriad problems. These have clouded what had seemed very strong prospects to win another term at an election due within a year.Morrison’s standing with female voters plunged following an awkward response to allegations of sexism and rape within Parliament House. He also faces an international backlash over his coal-supporting government’s refusal to commit to a hard target to achieve net-zero greenhouse gas emissions.On top of that, a slow vaccine roll-out is likely to mean Australia would remain isolated from much of the world until well into next year. Trade Minister Dan Tehan said Friday the country’s international borders may not completely open until the second half of 2022, a longer-than-anticipated closure that would deal a blow to the airline and tourism industries.While the pandemic forced Morrison and Frydenberg to ditch a pledge to return the books to the black, it does open up an opportunity for additional spending that’s popular with the electorate and solidifies the recovery.In Yellen’s WakeFrydenberg signaled that, like his U.S. counterpart Janet Yellen, Australia’s fiscal program would be geared toward returning the economy to full employment. That will also keep fiscal and monetary policy aligned, improving the chance of achieving that goal.“Against the backdrop of a highly uncertain global economic environment, it is prudent to continue to support the economy and ensure that our recovery is locked in,” Frydenberg said in a pre-budget speech. “The best way to repair the budget is to repair the economy.”Australia’s limited vaccination numbers are potentially a major risk for Morrison’s electoral fortunes. Given the program isn’t expected to be completed until well into 2022, he could find himself in the awkward position of conducting a campaign with the rollout in progress.Still, historically in Australian politics, economic strength tends to trump political mishaps like those that have engulfed his government.“It certainly looks a different environment for Morrison from the start of the year, where it looked like he would waltz to an election win,” said Haydon Manning, an associate professor at Adelaide’s Flinders University.“But as we’ve seen time and again in politics here and abroad, if voters judge that the government has been better at preserving their wealth and will put more money in their hip pocket, it’s usually enough.”(Updates with border reopening delay comments in 8th 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. Business Reuters 210506 19h23m FOREX-Dollar on backfoot ahead of U.S. jobs data The dollar stayed under modest pressure on Friday ahead of a key U.S. jobs report that could cement expectations of a strong economic recovery and fan investor appetite for stocks, higher-yielding currencies and commodities. U.S. payrolls data due at 1230 GMT will likely confirm the economy's solid path to recovery from the pandemic, analysts said. Economists expect 978,000 new U.S. jobs for April, according to a Reuters poll. Howell date : 210506 19h51m56s Business Reuters 210506 19h28m UPDATE 1-Benefitfocus new CEO Levin sued by former employer ADP Automatic Data Processing Inc is suing its former chief strategy officer, Matthew Levin, who was named chief executive of benefit software company Benefitfocus Inc this week, accusing him of misappropriating trade secrets. Benefitfocus said ADP's claims are without merit and that Levin intends to vigorously defend himself and take up his CEO duties on May 10 as planned. Levin was ADP's chief strategy officer from 2018 through April 2021 and worked closely with ADP CEO Carlos Rodriguez and the company's board members. World Reuters 210506 19h23m Anti-Olympics campaign gains traction online in Japan An online petition calling for the Tokyo Olympics to be cancelled has garnered almost 200,000 signatures in the past few days, as public concerns mount over holding the Games in a pandemic. With less than three months to go before the start of the summer Olympics, already postponed for a year due to the coronavirus, questions still remain over how Tokyo can hold the global event and keep volunteers, athletes, officials and the Japanese public safe from COVID-19. In two days since its launch, an online campaign https://www.change.org/p/cancel-the-tokyo-olympics-to-protect-our-lives-stoptokyoolympic called "Stop Tokyo Olympics" has gathered more than 187,000 signatures, nearing its 200,000 goal and underscoring public concerns over holding the massive sporting event in Japan's capital. Business Bloomberg 210506 19h10m Nintendo Falls After Issuing Chip Warning, Conservative Outlook (Bloomberg) -- Nintendo Co. shares slid as it warned that component shortages could affect production and gave a conservative profit forecast for the year, overshadowing better-than-expected earnings for the past quarter.The Kyoto-based studio forecast a 22% drop in operating profit in the current fiscal year, to 500 billion yen ($4.6 billion), significantly below analysts’ expectations. Nintendo, like many Japanese companies, often begins the year setting expectations low so it has room to upgrade its outlook later.Shares fell as much as 3.1% in Friday trading in Tokyo following the cagey outlook and chip warning, extending a 6.4% decline for the year. “There has been considerable stock market pessimism about Nintendo’s longer-term prospects,” Citigroup analyst Kota Ezawa wrote in a note after the results. “The possibility is emerging of positives finally drying up.”The company is targeting sales of 25.5 million consoles in the year ending March 2022, having sold 28.8 million units in the prior period. Internally, Nintendo’s management is shooting for production of between 28 and 29 million consoles, according to people familiar with the projections who asked not to be named disclosing company targets.Nintendo’s results do suggest that the Covid-era boom in gaming that turned Animal Crossing: New Horizons into a global online town hall has legs. It reported operating income of 119.5 billion yen for the March quarter, trouncing the average forecast of 68.3 billion yen.President Shuntaro Furukawa told reporters on Thursday that Nintendo wasn’t able to produce as many Switch devices as it had hoped due to component shortages. Recent demand has been higher than the company anticipated and the console hasn’t yet reached its peak, he added. Nintendo’s goal is now to surpass its official target of selling 190 million software units this year.The handheld-hybrid Switch maintained momentum in the face of newer gaming machines from Sony Group Corp. and Microsoft Corp., both of which have also suffered from chip shortages limiting production. Buoyed through most of 2020 by Animal Crossing’s runaway success, Nintendo’s signature device rode blockbuster titles including Capcom Co.’s latest Monster Hunter installment and Konami Holdings Corp.’s Momotaro Dentetsu during the most recent quarter.Nintendo’s own product lineup has been relatively quiet in recent months. Bloomberg News has reported that the company plans a big rollout of new titles alongside an upgraded version of the aging Switch -- with a faster Nvidia chip and a Samsung OLED display -- in the latter half of the year. The original console is now more than four years old and was joined by a more affordable Switch Lite variant in late 2019.What Bloomberg Intelligence SaysNintendo needs to drive software sales, live services and mobile games to support earnings growth beyond this fiscal year ending March, in our view, as the Switch platform enters the mature phase of its cycle. Switch hardware sales may peak in 2020 absent a reported but as yet unconfirmed Pro version, putting greater onus on software to drive profit.- Matthew Kanterman and Nathan Naidu, analystsClick here for the research.Read more: Nintendo Is Said to Target Record Year in Switch, Game SalesThe coronavirus outbreak was at first a brake and then an accelerant for Nintendo, choking its supply chain before triggering a demand surge with global lockdowns driving people to seek entertainment and escape. The company’s hardware sales improved by 37% and its software sales also rose 37% to 231 million units over the past fiscal year. It increased its proportion of sales coming from digital downloads to 43% from the previous 34%.(Updates with share price and analyst comment 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. World Reuters 210506 19h09m Military coup puts Telenor's future in Myanmar on the line Since Myanmar's military ordered telecoms operators to shut their networks in an effort to end protests against its February coup, Telenor's business there has been in limbo. As one of the few Western companies to bet on the South East Asian country after it emerged from military dictatorship a decade ago, the return to army rule led to a $783 million write-off this week for Norway's Telenor. The Norwegian state-controlled firm, one of the biggest foreign investors in Myanmar, must now decide whether to ride out the turmoil, or withdraw from a market which last year contributed 7% of its earnings. World Reuters 210506 19h04m PRESS DIGEST-Financial Times - May 7 Scientists advising the UK government are set to recommend that Britons in their 30s be offered an alternative to the Oxford/AstraZeneca coronavirus vaccine, as declining COVID-19 infection rates mean potential risks from the vaccine may outweigh the dangers of the disease. - Angela Merkel has expressed opposition to the Biden administration's proposal to suspend intellectual property rights for COVID-19 vaccines, saying it would have "serious implications" for vaccine production worldwide. - The EU ambassador to the UK has vowed that the bloc will not be "bureaucratic" as it seeks urgent solutions to the Brexit border issue that has stoked political tensions and civic unrest in Northern Ireland. Business Bloomberg 210506 19h03m Peloton Says Financial Hit From Recall Will Be ‘Short Term’ (Bloomberg) -- Peloton Interactive Inc. eased the concerns of investors, saying the financial impact of its treadmill recall would be “short term” and the company had overcome supply issues that had slowed deliveries of its popular stationary bicycles.Fiscal-year revenue will be $4 billion, compared with an earlier forecast of $4.075 billion, the New York-based company said Thursday on a conference call after reporting earnings. The halt to sales of the Tread+ and Tread and the costs of the recall will reduce revenue by about $165 million, Chief Executive Office John Foley said.Investors had been preparing for a larger blow after Peloton, in conjunction with the U.S. Consumer Product and Safety Commission, announced Wednesday the recall of the products. The $4,295 Tread+ was connected to the death of a child and more than 70 incident reports, including adults, children, pets and objects being pulled under the rear of the treadmill. The less-expensive Tread was pulled because the touchscreen was at risk of falling off.Peloton had planned May 27 for an expanded U.S. rollout of the Tread, but Foley said the widespread launch will be delayed while safety improvements are put in place. Among the fixes are hardware changes that must be approved by regulators and a software update for the Tread+, including a passcode requirement, he said.Peloton originally rebuffed safety warnings from regulators, but Foley apologized on Wednesday when the recall was announced. On Thursday, he said the company was working to regain whatever trust had been lost by the incidents involving the treadmills.“We feel like we have some work to do to get back on the right side of trust, safety and to let people know what we stand for,” Folley said on the call. “We are taking some financial pain to keep our brand pristine for the coming decades. This is something we are committed to.The treadmills account for a small percentage of the company’s hardware revenue, which is primarily generated by stationary bicycles, but are seen as key future growth drivers.Peloton sales have soared in the past year as the pandemic shut gyms and forced people to work out from home. However, the company has struggled to keep up with demand for months, leading to long wait times and frustrated customers. Those supply issues droves shares down about 45% so far this year.In a letter Thursday to shareholders, Peloton said average shipping times for its original bike are back to pre-pandemic levels. “While progress has been made, additional work remains to reduce delivery times across the remainder of our product portfolio and regions,” the company said. Bike sales are expected to return to normal seasonality as lockdowns ease, but the company projected it will sell three times as many bikes in the current quarter as it did in the same period in 2019.Peloton said it completed the acquisition of fitness equipment maker Precor on April 1 and integration is “well underway.” The company plans to make a limited number of products at Precor’s North Carolina facility by the end of 2021.Apart from the recall, Peloton’s results showed continued popularity for its products and classes. Sales gained 141% to $1.26 billion in the fiscal third quarter, which ended March 31.Connected fitness subscriptions -- users who pay for classes on Peloton equipment -- jumped 135% to 2.08 million. Paid digital subscriptions, made up of people who take classes on smartphones, tablets and other devices, increased to 891,000. Both numbers topped analysts’ average estimates.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. Business Bloomberg 210506 19h01m China Stocks May Get Bump as Merkel Opposes Patent Waiver (Bloomberg) -- Shares of Covid-19 vaccine developers in Asia may get some relief after the German Chancellor rejected a U.S. proposal to waive patent protections for coronavirus shots.In the U.S., Pfizer Inc., BioNTech SE, Novavax Inc. and CureVac NV all pared an earlier slump after initial news the U.S. supported discussions for a waiver of the rights to develop vaccines. The Biden administration’s plan would create “severe complications” for the production of vaccines, a German government spokeswoman said Thursday in an email.Pfizer reversed a bulk of its decline close 1% lower and BioNTech, which tumbled as much as 15% earlier, ended down 1.6% after Germany’s announcement. Moderna Inc. pared its steepest decline since Feb. 23 to trade 1.4% lower. CureVac erased almost half of its drop and NovaVax reversed its slump to close 0.5% higher.In Thursday’s trading session, stocks linked to vaccine makers fell across Asia.Shanghai Fosun Pharmaceutical Group Co., which has the rights to develop and market BioNTech’s shot in China, plunged 14% in Hong Kong, the most ever. CanSino Biologics Inc., which makes one of China’s domestic vaccines, tanked 15%. In Japan, JCR Pharmaceuticals Co., a local partner for AstraZeneca Plc’s vaccine, slid 1.4%.Some analysts had urged for caution to the news prior to Merkel’s announcement. The Biden administration’s plans will only open up a negotiation at the WTO and other countries and members remain unwilling, said Barclays analyst Carter Gould in a note.For Evercore ISI analyst Umer Raffat, U.S. support didn’t mean it was a “100% done deal” as other countries are also opposed. It “remains to be seen if U.S. leadership’s position sways others,” Raffat wrote in a note.U.S. support for a proposal to waive intellectual-property protections for Covid-19 vaccines might be good news for the global inoculation campaign, but it’s an unwelcome turn for firms whose share prices have been buoyed by profits from coronavirus shots.With many countries struggling with a resurgence of the virus, U.S. Trade Representative Katherine Tai said Wednesday the Biden administration will take part in negotiations for the text of a waiver of the rights at the World Trade Organization. The European Union said Thursday it was willing to participate.Big BusinessVaccines have been a big business for the firms that make them, with Pfizer, BioNTech’s partner outside of China, raising its forecast for 2021 vaccine sales to $26 billion just this week. Shares of many of the U.S.-listed companies had fallen late in Wednesday’s regular trading session after Tai’s comments.Read more: Analysts say investor fears of U.S. vaccine waiver support are overblownThe U.S. move “probably isn’t great news for the vaccine manufacturers who will now face generic copies of their vaccine, but as the mutation of the virus has shown, continued research and innovation will be needed and that should provide those companies with future earnings from newer vaccines so I would expect the impact to be short-lived and possibly limited,” said Olivier d’Assier, head of APAC applied research at Qontigo GmbH.The International Federation of Pharmaceutical Manufacturers & Associations condemned the move as “disappointing.”“A waiver is the simple but the wrong answer to what is a complex problem,” the group said in a statement. “Waiving patents of Covid-19 vaccines will not increase production nor provide practical solutions needed to battle this global health crisis.”(Updates with Asian moves)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. Howell date : 210506 19h21m19s World Reuters 210506 19h09m Military coup puts Telenor's future in Myanmar on the line Since Myanmar's military ordered telecoms operators to shut their networks in an effort to end protests against its February coup, Telenor's business there has been in limbo. As one of the few Western companies to bet on the South East Asian country after it emerged from military dictatorship a decade ago, the return to army rule led to a $783 million write-off this week for Norway's Telenor. The Norwegian state-controlled firm, one of the biggest foreign investors in Myanmar, must now decide whether to ride out the turmoil, or withdraw from a market which last year contributed 7% of its earnings. Business Bloomberg 210506 19h02m China Stocks May Get Bump as Merkel Opposes Patent Waiver (Bloomberg) -- Shares of Covid-19 vaccine developers in Asia may get some relief after the German Chancellor rejected a U.S. proposal to waive patent protections for coronavirus shots.In the U.S., Pfizer Inc., BioNTech SE, Novavax Inc. and CureVac NV all pared an earlier slump after initial news the U.S. supported discussions for a waiver of the rights to develop vaccines. The Biden administration’s plan would create “severe complications” for the production of vaccines, a German government spokeswoman said Thursday in an email.Pfizer reversed a bulk of its decline close 1% lower and BioNTech, which tumbled as much as 15% earlier, ended down 1.6% after Germany’s announcement. Moderna Inc. pared its steepest decline since Feb. 23 to trade 1.4% lower. CureVac erased almost half of its drop and NovaVax reversed its slump to close 0.5% higher.In Thursday’s trading session, stocks linked to vaccine makers fell across Asia.Shanghai Fosun Pharmaceutical Group Co., which has the rights to develop and market BioNTech’s shot in China, plunged 14% in Hong Kong, the most ever. CanSino Biologics Inc., which makes one of China’s domestic vaccines, tanked 15%. In Japan, JCR Pharmaceuticals Co., a local partner for AstraZeneca Plc’s vaccine, slid 1.4%.Some analysts had urged for caution to the news prior to Merkel’s announcement. The Biden administration’s plans will only open up a negotiation at the WTO and other countries and members remain unwilling, said Barclays analyst Carter Gould in a note.For Evercore ISI analyst Umer Raffat, U.S. support didn’t mean it was a “100% done deal” as other countries are also opposed. It “remains to be seen if U.S. leadership’s position sways others,” Raffat wrote in a note.U.S. support for a proposal to waive intellectual-property protections for Covid-19 vaccines might be good news for the global inoculation campaign, but it’s an unwelcome turn for firms whose share prices have been buoyed by profits from coronavirus shots.With many countries struggling with a resurgence of the virus, U.S. Trade Representative Katherine Tai said Wednesday the Biden administration will take part in negotiations for the text of a waiver of the rights at the World Trade Organization. The European Union said Thursday it was willing to participate.Big BusinessVaccines have been a big business for the firms that make them, with Pfizer, BioNTech’s partner outside of China, raising its forecast for 2021 vaccine sales to $26 billion just this week. Shares of many of the U.S.-listed companies had fallen late in Wednesday’s regular trading session after Tai’s comments.Read more: Analysts say investor fears of U.S. vaccine waiver support are overblownThe U.S. move “probably isn’t great news for the vaccine manufacturers who will now face generic copies of their vaccine, but as the mutation of the virus has shown, continued research and innovation will be needed and that should provide those companies with future earnings from newer vaccines so I would expect the impact to be short-lived and possibly limited,” said Olivier d’Assier, head of APAC applied research at Qontigo GmbH.The International Federation of Pharmaceutical Manufacturers & Associations condemned the move as “disappointing.”“A waiver is the simple but the wrong answer to what is a complex problem,” the group said in a statement. “Waiving patents of Covid-19 vaccines will not increase production nor provide practical solutions needed to battle this global health crisis.”(Updates with Asian moves)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. World Reuters 210506 19h00m FOCUS-Military coup puts Telenor's future in Myanmar on the line Since Myanmar's military ordered telecoms operators to shut their networks in an effort to end protests against its February coup, Telenor's business there has been in limbo. As one of the few Western companies to bet on the South East Asian country after it emerged from military dictatorship a decade ago, the return to army rule led to a $783 million write-off this week for Norway's Telenor. The Norwegian state-controlled firm, one of the biggest foreign investors in Myanmar, must now decide whether to ride out the turmoil, or withdraw from a market which last year contributed 7% of its earnings. World Reuters 210506 18h53m PRESS DIGEST-British Business - May 7 The following are the top stories on the business pages of British newspapers. - Boris Johnson and President Macron will try to restore the "brotherly" relationship between Europe's biggest military allies after yesterday's stand-off over fishing rights in Jersey. - Metals magnate Sanjeev Gupta is close to securing a 200 million pounds loan for Liberty Steel UK, which would hand a lifeline to Britain's third largest steel business and help stave off thousands of job losses. Business Bloomberg 210506 18h49m Asia Stocks Edge Up After Robust Data Boost U.S.: Markets Wrap (Bloomberg) -- Asian stocks opened slightly higher after U.S. indexes gained on positive economic data. The dollar held losses.Shares edged up in Japan, South Korea and Australia. U.S. contracts were in the green after rallies in U.S. benchmarks overnight, which included a fresh record for the Dow Jones Industrial Average. Treasuries held steady, with the 10-year yield hovering at 1.57%, well below recent highs.Investors will be watching for weakness at China’s open, after Bloomberg News reported the Biden administration is likely to preserve limits on U.S. investments in certain Chinese companies.U.S. economic reports helped sentiment, as applications for state unemployment insurance fell to a fresh pandemic low, and separate data showed a rebound in productivity. Traders now turn to Friday’s payrolls numbers.“With jobless claims hitting a pandemic-era low, anticipation for the full jobs picture tomorrow mounts,” said Mike Loewengart, managing director of investment strategy at E*Trade Financial. “Today’s read is another proof point that we’re one step closer to full economic recovery. As we see some serious momentum building on the jobs front, all eyes will be on how this plays into action taken by the Fed.”While strengthening growth in the world’s largest economy is supporting markets, investors are concerned that a faster-than-expected rebound on unprecedented government and central bank stimulus could drive excessive inflation. The Federal Reserve remains committed to near-zero interest rates to bring about a full recovery, though an announcement of a pullback in its heavy monthly bond purchases seems increasingly likely in the second half of this year.Concerns about excessive risk taking could spur more talk of the Fed adjusting policy. The central bank’s semi-annual financial stability report noted rising appetite for risk across a variety of asset markets is stretching valuations and creating vulnerabilities in the U.S. financial system. Elsewhere, spot iron ore broke $200 a ton for the first time, while copper approached a record high. Oil climbed.These are some of the main moves in markets:StocksS&P 500 futures were little changed at 9:35 a.m. in Tokyo, after the index rose 0.8%Nasdaq 100 contracts rose 0.3%. The index gained 0.8%.Japan’s Topix Index climbed 0.3%South Korea’s Kospi was up 0.2%Australia’s S&P/ASX 200 Index rose 0.2%Hong Kong’s Hang Seng Index futures slipped 0.4% earlierCurrenciesThe Bloomberg Dollar Spot Index was steadyThe euro traded at $1.2067The British pound was $1.3895The Japanese yen was 109.02 per dollarBondsThe yield on 10-year Treasuries was little changed at 1.57%Australia’s 10-year yield rose one basis point to 1.69%CommoditiesWest Texas Intermediate crude traded just below $65 a barrelGold futures traded at $1,815 an ounceFor 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. World Reuters 210506 18h39m LATAM Airlines says demand for U.S. travel rising on vaccine tourism LATAM Airlines Group, the region's largest carrier, said on Thursday that it is seeing increased demand from South Americans seeking to travel to the United States to get vaccinated against the coronavirus. "The past few weeks we have seen an increase in that demand and in the occupancy of those planes, but we continue with a capacity that is infinitely lower than pre-pandemic," Ramiro Alfonsin, LATAM's chief financial officer, said. Chile-based LATAM on Thursday reported a net loss of $431 million in the first three months of the year, which executives said reflected the crushing second pandemic wave that hit the region. Howell date : 210506 18h50m43s World Reuters 210506 18h39m LATAM Airlines says demand for U.S. travel rising on vaccine tourism LATAM Airlines Group, the region's largest carrier, said on Thursday that it is seeing increased demand from South Americans seeking to travel to the United States to get vaccinated against the coronavirus. "The past few weeks we have seen an increase in that demand and in the occupancy of those planes, but we continue with a capacity that is infinitely lower than pre-pandemic," Ramiro Alfonsin, LATAM's chief financial officer, said. Chile-based LATAM on Thursday reported a net loss of $431 million in the first three months of the year, which executives said reflected the crushing second pandemic wave that hit the region. Business Bloomberg 210506 18h34m A $953 Million Singapore Fund Ensnared by Alleged Fraud (Bloomberg) -- Technology startup investor Vickers Venture Partners has been caught up in the allegedly fraudulent nickel trading scheme of a Singaporean businessman and his Envy Global Trading, prompting a review by the city-state’s monetary authority.Vickers would be the highest-profile investor yet to have fallen victim to the suspected $740 million swindle, which Singaporean authorities have said could be the biggest investment fraud the financial hub has ever seen. The alleged mastermind, Ng Yu Zhi, has been charged with a range of suspected crimes from faking the purchase and sale of nickel to falsifying transfers from Citibank and account statements that showed millions in funds.Licensed fund managers must have policies to manage risks, including proper checks before investments, MAS said in an emailed response to Bloomberg’s queries on Thursday. “We are performing a supervisory review” of Vickers Venture Partners (S) Pte Ltd. to “ascertain that it has met these requirements.”Vickers Venture’s founder Finian Tan said in a reply to Bloomberg’s query that he was a personal investor in the receivable financing funds floated by Envy Global Trading, which authorities believe involved false contracts. Two Vickers funds were also investors in companies with exposure to the same trade, he said, adding that the initial due diligence process did not raise any red flags.Tan also confirmed that Ng is among investors in a company that made a small investment in Vickers and another company that put a small amount in one of its seven funds. A representative for Ng didn’t immediately respond to an emailed query.Vickers has $953 million of assets under management, including co-investments. Its founder and chairman was an early investor in Chinese technology giant Baidu Inc. Vickers said in 2020 it received $200 million in commitments for its sixth fund, which is targeted at $500 million.“We are expecting this year to be the best ever year for both funds even if we have to write off the RFEGT investments to zero,” Tan said in a statement, referring to the receivable financing investment. “As venture capitalists, we swing for the fences. And when mistakes occur, we should of course try to minimize them.”Tan said his fund’s ability to hit a “home-run” by taking risks has allowed it to produce outsized returns in the past. “If we slow down our swing and can no longer hit home-runs, then we are done for.”The fraud allegations against Ng center on his dealings at Envy Asset Management and Envy Global Trading, companies he controlled and where he was a director. Of the more than S$1 billion ($749 million) that was invested in the companies, S$300 million was transferred to Ng’s personal account while an estimated S$200 million remains unaccounted for, prosecutors alleged in court proceedings last month.While investors received payments worth S$700 million, they’re owed another S$1 billion based on the face value of outstanding contracts, prosecutors said.Singapore’s High Court last week approved KPMG LLP as the interim judicial manager of three companies that are linked to the case.(Updates with Vickers fundraising details 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. Business Reuters 210506 18h28m STB approves voting trust for Canadian Pacific's proposed acquisition of Kansas City Southern Canadian Pacific (CP) had earlier agreed in its talks with U.S. railroad Kansas City Southern (KCS) to bear most of the risk of the merger deal not going through. It was going to buy KCS shares and place them in an independent voting trust, insulating the acquisition target from its control until the STB, which oversees freight rail, clears the deal. Business Reuters 210506 18h05m Benefitfocus' new CEO sued by ADP for stealing trade secrets Automatic Data Processing Inc is suing its former chief strategy officer, Matthew Levin, who was named chief executive of benefit software company Benefitfocus Inc this week, accusing him of stealing trade secrets. The human resources management company said in the lawsuit, filed in federal court in Newark, New Jersey, that Levin knew details about ADP's business plans, sales and potential products and would use that information to harm his former employer, a court filing showed. Benefitfocus did not immediately respond to a request for comment. Business Bloomberg 210506 17h54m Energy Transfer Made $2.4 Billion From Texas Winter Storm (Bloomberg) -- Energy Transfer LP, the pipeline giant controlled by billionaire Kelcy Warren, has emerged as the biggest winner so far from the deadly winter storm that paralyzed Texas in February.The company saw a positive earnings impact from the extreme weather of about $2.4 billion, it said Thursday in its first-quarter earnings statement. Energy Transfer raised its full-year earnings guidance to as much as $13.3 billion, from up to $11 billion previously. The stock jumped as much as 4.9% in after-hours trading.The company joins a growing list of gas market players who reaped windfalls totaling almost $5 billion amid the chaos of the storm. Plunging prices and power cuts interrupted the normal flow of gas from many wells. Those with available supplies were able to sell at sky-high spot prices.Speculation over the extent of Energy Transfer’s gains began soon after the storm when Co-Chief Executive Officer Marshall McCrea told investors in a conference call that the company had done “exceptionally well” as a dramatic gas shortage spurred demand for the supplies held in the company’s storage facilities. The fossil-fuel hauler was sued by CPS Energy, a Texas utility, in the immediate aftermath of the crisis for allegedly charging a natural gas price more than 15,000% higher than normal. Energy Transfer rejected the claims.“During the storm, employees manned facilities 24 hours a day, ET’s transmission lines remained fully operational and the Partnership did everything within its control to keep plants running and field compression idling, so that ET would be prepared to deliver natural gas to facilities throughout Texas for residential consumption and power generation,” the company said in the statement.Kinder Morgan Inc., another pipeline operator, said last month the storm had a $1 billion positive impact on its results. BP Plc also reported an “exceptional” quarter in gas trading; while it didn’t break out more detail, one Citigroup Inc. analyst estimated BP’s Texas-related gain easily exceeded $1 billion, Meanwhile Australian investment bank Macquarie Group Ltd. pocketed $210 million.The storm could bring a longer-standing boost to Energy Transfer’s earnings as customers are now demanding for increased storage and transportation capacity under long-term contracts as a way to mitigate their risks, according to McCrea. “Our transportation service and, more importantly, our storage capacity has been undervalued for many years,” McCrea said in a conference call Thursday, adding there’s potential for “much improved margins” around those assets.Energy Transfer operates over 90,000 miles (145,000 kilometers) of pipelines and related infrastructure spanning 38 states and Canada. The company posted a record quarterly net income of $3.29 billion in the first quarter, far exceeding the $820.5 million average of analysts’ estimates compiled by Bloomberg. The company lost $854 million a year earlier. The pipeline operator used extra cash to pay down about $3.7 billion in debt in the first quarter.(Updates with co-CEO comment 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. Business Bloomberg 210506 17h51m Fed Warns of Peril for Asset Prices as Investors Gorge on Risk (Bloomberg) -- A rising appetite for risk across a variety of asset markets is stretching valuations and creating vulnerabilities in the U.S. financial system, the Federal Reserve said in its semi-annual financial stability report.“Vulnerabilities associated with elevated risk appetite are rising,” Fed Governor Lael Brainard, the head of the Board’s financial stability committee, said in a statement accompanying the report released Thursday. “The combination of stretched valuations with very high levels of corporate indebtedness bear watching because of the potential to amplify the effects of a re-pricing event.”In this environment, prices may be vulnerable to “significant declines” should risk appetite fall, the Fed report noted.Brainard and the report mentioned losses at banks stemming from dealings with Archegos Capital Management, and the governor called for “more granular, higher-frequency disclosures.”“The Archegos event illustrates the limited visibility into hedge-fund exposures and serves as a reminder that available measures of hedge-fund leverage may not be capturing important risks,” she said.The Managed Funds Association, which represents hedge funds, took issue with Brainard’s remarks.“It is unfortunate policy makers incorrectly conflate hedge funds with unregulated entities like individuals and family offices,” Association President Bryan Corbett said in a statement. “Hedge funds are well regulated” by the Securities and Exchange Commission.Near-zero interest rates and massive bond purchases, with the Fed buying $40 billion in mortgage-backed securities and $80 billion in Treasuries every month, have fueled a search for returns and helped buoy asset prices including those of risky investments such as speculative stocks, cryptocurrencies and high-yield debt. The Standard and Poor’s 500 stock index has risen 12% this year.“The real story here is the tension -- if not the glaring contradiction -- of the Fed’s pursuit of quantitative easing, the aim of which is to lower long-term rates and encourage reach for yield, and their concern that people are indeed reaching for yield,” said George Selgin, a senior fellow at the Cato Institute in Washington, referring to the bond buying. “The Fed could certainly taper its QE activities to counter this risk-taking as the recovery continues.”Spacs, Meme Stocks“Indicators pointing to elevated risk appetite in equity markets in early 2021 include the episodes of high trading volumes and price volatility for so-called meme stocks -- stocks that increased in trading volume after going viral on social media,” the report said. “Elevated equity issuance through SPACs also suggests a higher-than-typical appetite for risk among equity investors.”Low rates are also impacting the real economy. Home prices are up 12% year over year amid high demand for property and scarce supply, while a boom in home remodeling has helped push lumber futures to record highs. The Bloomberg Commodity Index, which tracks everything from grains to natural gas and nickel, is up 19%.The report said house-price increases have had a positive effect for borrowers by boosting equity. Still, it noted that borrowers in forbearance programs, who are likely to be employed in industries hard hit by the pandemic, could be vulnerable when they exit. “Even so, a large fraction of borrowers have already exited forbearance -- in general, these borrowers have loans that are either current or paid off,” the report said.The report also noted that low interest rates have reduced default expectations, and underwriting standards have weakened. “The share of newly issued loans to large corporations with high leverage -- defined as those with ratios of debt to earnings before interest, taxes, depreciation, and amortization greater than 6 -- has exceeded the historical highs reached in recent years,” it said.Hedge Fund LeverageThe report said that “available data suggest” that hedge funds are highly leveraged, and said there is a need for greater transparency on opaque risk exposures, echoing Brainard’s call for more transparency.“Some hedge funds with substantial short positions sustained losses during the meme stock episode in January 2021, when intense social media activity contributed to fluctuations in the prices of some specific stocks,” the report said, probably a reference to the short squeeze in shares of GameStop Corp., which soared to more than $300 a share from around $20 a share in a matter of days.Jon Caplis, chief executive officer at hedge fund consultant PivotalPath, said after the report’s release that one disclosure in particular could mitigate the risk of a future Archegos-like situation happening again.“Before you try and rewrite all the regulatory statutes, you can make one small change that would be effective,” he said. “If you merely treat total-return swaps in the same way hedge funds are already disclosing equity holdings, you would drastically mitigate an Archegos-like fallout from happening again.”(Updates with hedge fund reaction in sixth and seventh 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. Business Howell date : 210506 18h20m05s World Reuters 210506 18h11m China reports 13 new COVID-19 cases vs 5 a day earlier China reported 13 new mainland COVID-19 cases on May 6, up from five cases a day earlier, the country's national health authority said on Friday. The National Health Commission said in a statement all of the new cases were imported infections originating from overseas. The number of new asymptomatic cases, which China does not classify as confirmed cases, rose to 17 from 7 cases a day earlier. Business Bloomberg 210506 17h54m Energy Transfer Made $2.4 Billion From Texas Winter Storm (Bloomberg) -- Energy Transfer LP, the pipeline giant controlled by billionaire Kelcy Warren, has emerged as the biggest winner so far from the deadly winter storm that paralyzed Texas in February.The company saw a positive earnings impact from the extreme weather of about $2.4 billion, it said Thursday in its first-quarter earnings statement. Energy Transfer raised its full-year earnings guidance to as much as $13.3 billion, from up to $11 billion previously. The stock jumped as much as 4.9% in after-hours trading.The company joins a growing list of gas market players who reaped windfalls totaling almost $5 billion amid the chaos of the storm. Plunging prices and power cuts interrupted the normal flow of gas from many wells. Those with available supplies were able to sell at sky-high spot prices.Speculation over the extent of Energy Transfer’s gains began soon after the storm when Co-Chief Executive Officer Marshall McCrea told investors in a conference call that the company had done “exceptionally well” as a dramatic gas shortage spurred demand for the supplies held in the company’s storage facilities. The fossil-fuel hauler was sued by CPS Energy, a Texas utility, in the immediate aftermath of the crisis for allegedly charging a natural gas price more than 15,000% higher than normal. Energy Transfer rejected the claims.“During the storm, employees manned facilities 24 hours a day, ET’s transmission lines remained fully operational and the Partnership did everything within its control to keep plants running and field compression idling, so that ET would be prepared to deliver natural gas to facilities throughout Texas for residential consumption and power generation,” the company said in the statement.Kinder Morgan Inc., another pipeline operator, said last month the storm had a $1 billion positive impact on its results. BP Plc also reported an “exceptional” quarter in gas trading; while it didn’t break out more detail, one Citigroup Inc. analyst estimated BP’s Texas-related gain easily exceeded $1 billion, Meanwhile Australian investment bank Macquarie Group Ltd. pocketed $210 million.The storm could bring a longer-standing boost to Energy Transfer’s earnings as customers are now demanding for increased storage and transportation capacity under long-term contracts as a way to mitigate their risks, according to McCrea. “Our transportation service and, more importantly, our storage capacity has been undervalued for many years,” McCrea said in a conference call Thursday, adding there’s potential for “much improved margins” around those assets.Energy Transfer operates over 90,000 miles (145,000 kilometers) of pipelines and related infrastructure spanning 38 states and Canada. The company posted a record quarterly net income of $3.29 billion in the first quarter, far exceeding the $820.5 million average of analysts’ estimates compiled by Bloomberg. The company lost $854 million a year earlier. The pipeline operator used extra cash to pay down about $3.7 billion in debt in the first quarter.(Updates with co-CEO comment 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. Business Bloomberg 210506 17h52m Fed Warns of Peril for Asset Prices as Investors Gorge on Risk (Bloomberg) -- A rising appetite for risk across a variety of asset markets is stretching valuations and creating vulnerabilities in the U.S. financial system, the Federal Reserve said in its semi-annual financial stability report.“Vulnerabilities associated with elevated risk appetite are rising,” Fed Governor Lael Brainard, the head of the Board’s financial stability committee, said in a statement accompanying the report released Thursday. “The combination of stretched valuations with very high levels of corporate indebtedness bear watching because of the potential to amplify the effects of a re-pricing event.”In this environment, prices may be vulnerable to “significant declines” should risk appetite fall, the Fed report noted.Brainard and the report mentioned losses at banks stemming from dealings with Archegos Capital Management, and the governor called for “more granular, higher-frequency disclosures.”“The Archegos event illustrates the limited visibility into hedge-fund exposures and serves as a reminder that available measures of hedge-fund leverage may not be capturing important risks,” she said.The Managed Funds Association, which represents hedge funds, took issue with Brainard’s remarks.“It is unfortunate policy makers incorrectly conflate hedge funds with unregulated entities like individuals and family offices,” Association President Bryan Corbett said in a statement. “Hedge funds are well regulated” by the Securities and Exchange Commission.Near-zero interest rates and massive bond purchases, with the Fed buying $40 billion in mortgage-backed securities and $80 billion in Treasuries every month, have fueled a search for returns and helped buoy asset prices including those of risky investments such as speculative stocks, cryptocurrencies and high-yield debt. The Standard and Poor’s 500 stock index has risen 12% this year.“The real story here is the tension -- if not the glaring contradiction -- of the Fed’s pursuit of quantitative easing, the aim of which is to lower long-term rates and encourage reach for yield, and their concern that people are indeed reaching for yield,” said George Selgin, a senior fellow at the Cato Institute in Washington, referring to the bond buying. “The Fed could certainly taper its QE activities to counter this risk-taking as the recovery continues.”Spacs, Meme Stocks“Indicators pointing to elevated risk appetite in equity markets in early 2021 include the episodes of high trading volumes and price volatility for so-called meme stocks -- stocks that increased in trading volume after going viral on social media,” the report said. “Elevated equity issuance through SPACs also suggests a higher-than-typical appetite for risk among equity investors.”Low rates are also impacting the real economy. Home prices are up 12% year over year amid high demand for property and scarce supply, while a boom in home remodeling has helped push lumber futures to record highs. The Bloomberg Commodity Index, which tracks everything from grains to natural gas and nickel, is up 19%.The report said house-price increases have had a positive effect for borrowers by boosting equity. Still, it noted that borrowers in forbearance programs, who are likely to be employed in industries hard hit by the pandemic, could be vulnerable when they exit. “Even so, a large fraction of borrowers have already exited forbearance -- in general, these borrowers have loans that are either current or paid off,” the report said.The report also noted that low interest rates have reduced default expectations, and underwriting standards have weakened. “The share of newly issued loans to large corporations with high leverage -- defined as those with ratios of debt to earnings before interest, taxes, depreciation, and amortization greater than 6 -- has exceeded the historical highs reached in recent years,” it said.Hedge Fund LeverageThe report said that “available data suggest” that hedge funds are highly leveraged, and said there is a need for greater transparency on opaque risk exposures, echoing Brainard’s call for more transparency.“Some hedge funds with substantial short positions sustained losses during the meme stock episode in January 2021, when intense social media activity contributed to fluctuations in the prices of some specific stocks,” the report said, probably a reference to the short squeeze in shares of GameStop Corp., which soared to more than $300 a share from around $20 a share in a matter of days.Jon Caplis, chief executive officer at hedge fund consultant PivotalPath, said after the report’s release that one disclosure in particular could mitigate the risk of a future Archegos-like situation happening again.“Before you try and rewrite all the regulatory statutes, you can make one small change that would be effective,” he said. “If you merely treat total-return swaps in the same way hedge funds are already disclosing equity holdings, you would drastically mitigate an Archegos-like fallout from happening again.”(Updates with hedge fund reaction in sixth and seventh 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. Business Bloomberg 210506 17h26m Peloton Says Recall Will Reduce Revenue by $165 Million (Bloomberg) -- Peloton Interactive Inc. projected revenue of $915 million in the current quarter, saying the recall of its treadmills would reduce sales by about $165 million. Shares gained about 5% in extended trading after investors had prepared for a larger blow.Chief Executive Officer John Foley said the financial impact would be “short term” from the halt to sales and recall of the Tread+ and Tread products. Peloton had planned May 27 for an expanded U.S. rollout of its less-expensive Tread, which has only about 1,050 models on the market, but Foley said Thursday the widespread launch will be delayed while safety improvements are put in place.Peloton, in conjunction with the U.S. Consumer Product and Safety Commission, on Wednesday announced the recall of the treadmills. The $4,295 Tread+ was connected to the death of a child and more than 70 reports of incidents, while the touchscreen of the less-expensive Tread was at risk of falling off. The products account for a small percentage of the company’s hardware revenue, which is primarily generated by stationary bicycles, but are seen as key future growth drivers.Foley said the company is working on new safety measures for the treadmills, including a software update that will include a passcode requirement for the more expensive model. Hardware changes are also being worked on, but must be approved by regulators, and may take six to eight weeks, he said. The company expects about 10% of users to seek refunds for their treadmills.In light of the recall, the company revised its forecasts and said annual revenue would be $4 billion compared with the previous guidance of $4.075 billion. Shares, which had fallen while investors awaited the foreast, jumped to a high of $89.20 in extended trading after closing at $83.78 in New York.Earlier, Peloton said sales gained 141% to $1.26 billion in the fiscal third quarter, which ended March 31. Analysts, on average, projected $1.12 billion, according to data compiled by Bloomberg.Connected fitness subscriptions -- users who pay for classes on Peloton equipment -- jumped 135% to 2.08 million, the New York-based fitness technology company said in a statement. Paid digital subscriptions, made up of people who take classes on smartphones, tablets and other devices, increased to 891,000. Both numbers topped analysts’ average estimates.Peloton sales have soared in the past year as the pandemic shut gyms and forced people to work out from home. However, the company has struggled to keep up with demand for months, leading to long wait times and frustrated customers. Those supply issues droves shares down about 45% in 2021.In a letter to shareholders, Peloton said average shipping times for its original bike are back to pre-pandemic levels. “While progress has been made, additional work remains to reduce delivery times across the remainder of our product portfolio and regions,” the company said.Peloton said it completed its acquisition of fitness equipment maker Precor on April 1 and integration is “well underway.” The company plans to make a limited number of products at Precor’s North Carolina facility by the end of 2021.The company recently said it would expand to Australia later this year, adding in the letter that it sees “significant growth opportunities in a broad range of international markets.” but had no announcements at this time.Peloton said connected fitness subscription workouts increased 239% to 149.5 million in the quarter, an average of 26 monthly per user compared with 17.7 in the same period a year earlier. The monthly churn rate was 0.31%, though 98% of subscribers are on a month-to-month basis.Peloton reported an adjusted profit before interest, taxes, depreciation and amortization of $63.2 million in the fiscal third quarter, topping analysts’ estimates of $18.3 million. Net loss narrowed to $8.6 million, or 3 cents a share, from $55.6 million, or 20 cents, a year earlier.(Updates with estimate of treadmill refunds in the 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. Business Business Business Business Howell date : 210506 17h49m28s Business Bloomberg 210506 17h18m Asia Stocks Set for Muted Start After U.S. Gains: Markets Wrap (Bloomberg) -- Asian stocks looked set for a muted start amid a warning from the Federal Reserve on stretched valuations and gains in U.S. shares on positive economic data. The dollar retreated.Futures pointed to modest gains in Japan and Australia, though Hong Kong contracts slipped. S&P 500 futures opened in the green after rallies in U.S. benchmarks overnight, which included a fresh record for the Dow Jones Industrial Average. China’s shares traded in New York briefly extended losses after Bloomberg News reported the Biden administration is likely to preserve limits on U.S. investments in certain Chinese companies.Treasuries held steady, with the 10-year yield hovering at 1.57%, well below recent highs.A rising appetite for risk across a variety of asset markets is stretching valuations and creating vulnerabilities in the U.S. financial system, the Fed said in its semi-annual financial stability report. Meanwhile, applications for U.S. state unemployment insurance fell to a fresh pandemic low, and separate data highlighted a rebound in productivity. Traders now turn to Friday’s payrolls numbers.“With jobless claims hitting a pandemic-era low, anticipation for the full jobs picture tomorrow mounts,” said Mike Loewengart, managing director of investment strategy at E*Trade Financial. “Today’s read is another proof point that we’re one step closer to full economic recovery. As we see some serious momentum building on the jobs front, all eyes will be on how this plays into action taken by the Fed.”While strengthening growth in the world’s largest economy is supporting markets, investors are concerned that a faster-than-expected rebound on unprecedented government and central bank stimulus could drive excessive inflation. The Federal Reserve remains committed to near-zero interest rates to bring about a full recovery, though an announcement of a pullback in its heavy monthly bond purchases seems increasingly likely in the second half of this year.Elsewhere, spot iron ore broke $200 a ton for the first time, while copper approached a record high. Oil climbed.These are some of the main moves in markets:StocksS&P 500 futures were little changed at 8:05 a.m. in Tokyo, after the index rose 0.8%Nasdaq 100 contracts rose 0.1%. The index gained 0.8%.Nikkei 225 futures edged up 0.1%Australia’s S&P/ASX 200 Index futures rose 0.3%Hong Kong’s Hang Seng Index futures slipped 0.4% earlierCurrenciesThe Bloomberg Dollar Spot Index was steadyThe euro traded at $1.2063The British pound was $1.3894The Japanese yen was 109.05 per dollarBondsThe yield on 10-year Treasuries was little changed at 1.57%CommoditiesWest Texas Intermediate crude traded just below $65 a barrelGold futures traded at $1,815 an ounceFor 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. Business Bloomberg 210506 16h54m Software Firm Monday.com Is Working With Goldman on IPO (Bloomberg) -- Software provider Monday.com is working with Goldman Sachs Group Inc. on a U.S. initial public offering, according to people familiar with the matter.The company has filed confidentially with the U.S. Securities and Exchange Commission for a listing that could come as soon as this quarter, said one of the people, who asked not to be identified because the matter is private.Monday.com’s plans aren’t final and the timing and details of its potential listing could change, the people said.Representatives for Monday.com and Goldman Sachs declined to comment.The startup, which was founded in 2014 in Israel, makes software to help employees work remotely. It was valued at $2.7 billion last year, Bloomberg News previously reported. That was up from the $1.9 billion value it had in a funding round in 2019, according to data provider PitchBook.With the rise of the work-from-home trend during the coronavirus pandemic, demand for the company’s products surged. Monday.com co-founder and Chief Executive Officer Roy Mann said in an interview last May that the company had accelerated plans to double its workforce to 720 employees.Monday.com, with offices in Tel Aviv and New York, has raised $234.1 million from investors such as Hamilton Lane Inc., Sapphire Ventures and Entrée Capital.It’s one of the many technology companies with roots in Israel looking to test the U.S. public market. Another software company that started in Israel, Riskified Ltd., is preparing for a U.S. IPO this year, Bloomberg News reported on Thursday.New listings for enterprise software firms, which make most of their money selling their products to other companies, have been done well in the market. Automation software maker UiPath Inc. has risen 24% from its IPO price last 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. U.S. Business Business Business Business Howell date : 210506 17h18m51s Business Bloomberg 210506 16h54m Software Firm Monday.com Is Working With Goldman on IPO (Bloomberg) -- Software provider Monday.com is working with Goldman Sachs Group Inc. on a U.S. initial public offering, according to people familiar with the matter.The company has filed confidentially with the U.S. Securities and Exchange Commission for a listing that could come as soon as this quarter, said one of the people, who asked not to be identified because the matter is private.Monday.com’s plans aren’t final and the timing and details of its potential listing could change, the people said.Representatives for Monday.com and Goldman Sachs declined to comment.The startup, which was founded in 2014 in Israel, makes software to help employees work remotely. It was valued at $2.7 billion last year, Bloomberg News previously reported. That was up from the $1.9 billion value it had in a funding round in 2019, according to data provider PitchBook.With the rise of the work-from-home trend during the coronavirus pandemic, demand for the company’s products surged. Monday.com co-founder and Chief Executive Officer Roy Mann said in an interview last May that the company had accelerated plans to double its workforce to 720 employees.Monday.com, with offices in Tel Aviv and New York, has raised $234.1 million from investors such as Hamilton Lane Inc., Sapphire Ventures and Entrée Capital.It’s one of the many technology companies with roots in Israel looking to test the U.S. public market. Another software company that started in Israel, Riskified Ltd., is preparing for a U.S. IPO this year, Bloomberg News reported on Thursday.New listings for enterprise software firms, which make most of their money selling their products to other companies, have been done well in the market. Automation software maker UiPath Inc. has risen 24% from its IPO price last 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. U.S. Reuters 210506 16h41m Texas governor backs Exxon Mobil petition in climate case The governor of Texas in an unusual move on Thursday asked the state's Supreme Court to accept an Exxon Mobil Corp petition seeking to reverse a state court decision in a climate change case. California municipal officials sued Exxon and other energy companies in 2017 seeking damages for rising sea levels they blamed on fossil fuel emissions, prompting a countersuit from the oil major in Texas. A Texas appeals court rejected Exxon's effort to depose California officials, leading to the oil company's state Supreme court petition. Business Reuters 210506 16h30m Treasury sell off in February highlights ongoing liquidity risk - Fed A bruising bond market sell-off earlier this year appears to remain high on the minds of Federal Reserve officials, who in a report on Thursday singled out the event as illustrative of continuing liquidity issues in the $21 trillion U.S. Treasury market. The Feb. 25 drubbing followed a historically poor auction of 7-year Treasury notes and sent yields surging as market liquidity evaporated in minutes. The event, coming less than a year after the Fed had to inject $2 trillion into the bond market in the space of about five weeks to keep it from a complete melt down, "highlighted the importance of continued focus on Treasury market resilience," the Fed said in its semi-annual Financial Stability Report. Business Reuters 210506 16h27m Energy Transfer expects $2.4 bln boost from winter storm Energy Transfer LP expects to gain roughly $2.4 billion from Winter Storm Uri, which knocked out power and halted the distribution of natural gas in Texas to homes and businesses, company executives on Thursday said. Dallas-based Energy Transfer, which operates energy pipelines and storage tanks, was able to cash in on soaring prices for natural gas during and after the storm froze in production and crippled energy transportation infrastructure. Most of the windfall expected to be realized in 2021 came from trading and selling natural gas in Energy Transfer's energy storage system. Business Bloomberg 210506 16h25m Expedia Beats Estimates With Travel Demand ‘Roaring Back’ (Bloomberg) -- Expedia Group Inc. blitzed analysts’ estimates for several growth metrics in the first quarter, buoyed by a surge in domestic travel and vacation-rental demand.Gross bookings were down only 14% compared with a year earlier -- a significant improvement from the nearly 70% decline in the previous two quarters and better than analysts had expected. Revenue fell 44% to $1.25 billion, the Seattle-based company said Thursday in a statement, slightly ahead of analysts’ estimates. Shares climbed about 7% in extended trading.Still, the travel industry remains a “study in contrasts,” Chief Executive Officer Peter Kern said, as demand for international and business travel and conventional lodging remain challenged. “Beach and outdoor destinations have shown robust rebounds while major cities remain muted, and some regions have been growing while others remain locked down,” Kern said. “The market has clearly shown that when people feel safe to travel, demand comes roaring back.”After a year of pandemic-related border closures, steep revenue declines and mass layoffs, the travel sector is starting to see the green shoots of recovery. Booking Holdings Inc., the biggest online travel agency, on Wednesday reported a significant jump in the number of room-night reservations made in the beginning of the year. Analysts and industry experts expect the vaccine roll out in the U.S., which makes up more than 50% of Expedia’s revenue, will ignite a 2021 travel boom, driven largely by the alternative accommodation market.Expedia has seen booking trends “well above 2019 levels,” Kern said on a conference call with analysts after the results were released. Gross bookings, net of cancellations, were down about 40% in January. This improved to 20% in March and continued to show signs of growth into April, Kern said.“This is an unpredictable time,” Kern said. “Things could get worse before they get better, but we are optimistic we are seeing a lot of improvement across the globe.” The world will open up as the pace of vaccinations continues to increase, he said.Vrbo, which competes directly with Airbnb Inc., has weathered the pandemic better than its parent as travelers sought out regional staycations and remote work getaways. Expedia doesn’t disclose Vrbo metrics, but analysts expect the unit will lead Expedia’s recovery. Cowen analyst Kevin Kopelman estimated Vrbo accounted for more than 40% of Expedia’s gross bookings value in the quarter, up from about 14% in the same period in 2019.Expedia has “amped up” its marketing investment in order to woo successful hosts from rival platforms, like Airbnb. “We are driving it as fast as we can,” Kern said.Truist Securities analyst Naved Khan predicted Vrbo would see “robust growth,” reflecting consumer interest in home rentals amid rising travel demand. “We estimate that Vrbo’s 2021 revenue could easily be 35% above 2019 levels,” Khan said in an interview before the results were released.Earlier this week, Expedia sold its corporate business travel arm, Egencia, to American Express Global Business Travel. Financial terms of the deal were not disclosed. Expedia will become a shareholder and enter into a long-term commercial agreement with AmEx Global Business Travel as part of the agreement.Expedia reported an adjusted loss before interest, taxes, depreciation and amortization of $58 million. Analysts were expecting a loss of $137.3 million. The adjusted loss per share was $2.02, beating the average analyst estimate of $2.27. Expedia’s shares are up about 25% this year, outperforming Booking and Airbnb, which were both up less than 5%.(Updates with comments from CEO in the fifth 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. Business Business Howell date : 210506 16h48m13s Business Reuters 210506 16h31m Treasury sell off in February highlights ongoing liquidity risk - Fed A bruising bond market sell-off earlier this year appears to remain high on the minds of Federal Reserve officials, who in a report on Thursday singled out the event as illustrative of continuing liquidity issues in the $21 trillion U.S. Treasury market. The Feb. 25 drubbing followed a historically poor auction of 7-year Treasury notes and sent yields surging as market liquidity evaporated in minutes. The event, coming less than a year after the Fed had to inject $2 trillion into the bond market in the space of about five weeks to keep it from a complete melt down, "highlighted the importance of continued focus on Treasury market resilience," the Fed said in its semi-annual Financial Stability Report. Business Bloomberg 210506 16h26m Expedia Beats Estimates With Travel Demand ‘Roaring Back’ (Bloomberg) -- Expedia Group Inc. blitzed analysts’ estimates for several growth metrics in the first quarter, buoyed by a surge in domestic travel and vacation-rental demand.Gross bookings were down only 14% compared with a year earlier -- a significant improvement from the nearly 70% decline in the previous two quarters and better than analysts had expected. Revenue fell 44% to $1.25 billion, the Seattle-based company said Thursday in a statement, slightly ahead of analysts’ estimates. Shares climbed about 7% in extended trading.Still, the travel industry remains a “study in contrasts,” Chief Executive Officer Peter Kern said, as demand for international and business travel and conventional lodging remain challenged. “Beach and outdoor destinations have shown robust rebounds while major cities remain muted, and some regions have been growing while others remain locked down,” Kern said. “The market has clearly shown that when people feel safe to travel, demand comes roaring back.”After a year of pandemic-related border closures, steep revenue declines and mass layoffs, the travel sector is starting to see the green shoots of recovery. Booking Holdings Inc., the biggest online travel agency, on Wednesday reported a significant jump in the number of room-night reservations made in the beginning of the year. Analysts and industry experts expect the vaccine roll out in the U.S., which makes up more than 50% of Expedia’s revenue, will ignite a 2021 travel boom, driven largely by the alternative accommodation market.Expedia has seen booking trends “well above 2019 levels,” Kern said on a conference call with analysts after the results were released. Gross bookings, net of cancellations, were down about 40% in January. This improved to 20% in March and continued to show signs of growth into April, Kern said.“This is an unpredictable time,” Kern said. “Things could get worse before they get better, but we are optimistic we are seeing a lot of improvement across the globe.” The world will open up as the pace of vaccinations continues to increase, he said.Vrbo, which competes directly with Airbnb Inc., has weathered the pandemic better than its parent as travelers sought out regional staycations and remote work getaways. Expedia doesn’t disclose Vrbo metrics, but analysts expect the unit will lead Expedia’s recovery. Cowen analyst Kevin Kopelman estimated Vrbo accounted for more than 40% of Expedia’s gross bookings value in the quarter, up from about 14% in the same period in 2019.Expedia has “amped up” its marketing investment in order to woo successful hosts from rival platforms, like Airbnb. “We are driving it as fast as we can,” Kern said.Truist Securities analyst Naved Khan predicted Vrbo would see “robust growth,” reflecting consumer interest in home rentals amid rising travel demand. “We estimate that Vrbo’s 2021 revenue could easily be 35% above 2019 levels,” Khan said in an interview before the results were released.Earlier this week, Expedia sold its corporate business travel arm, Egencia, to American Express Global Business Travel. Financial terms of the deal were not disclosed. Expedia will become a shareholder and enter into a long-term commercial agreement with AmEx Global Business Travel as part of the agreement.Expedia reported an adjusted loss before interest, taxes, depreciation and amortization of $58 million. Analysts were expecting a loss of $137.3 million. The adjusted loss per share was $2.02, beating the average analyst estimate of $2.27. Expedia’s shares are up about 25% this year, outperforming Booking and Airbnb, which were both up less than 5%.(Updates with comments from CEO in the fifth 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. Business Yahoo Finance 210506 16h18m Stock market news live updates: Stock futures drift ahead of April jobs report Stock futures hugged the flat line Thursday evening as investors awaited a key report on the state of the U.S. economic and labor market recovery out Friday morning. Business Bloomberg 210506 16h08m Banks Are Making It Harder for Hedge Funds to Leverage Their Bets After Archegos (Bloomberg) -- The dust hadn’t yet settled on Archegos Capital Management’s implosion, when hedge funds started shifting their bets toward banks that avoided getting hurt, hoping to keep leveraging up just like before. Good luck with that.For weeks behind the scenes, Wall Street’s giants have been autopsying failures at rivals including Credit Suisse Group AG and Nomura Holdings Inc., identifying risks that they plan to address by more thoroughly vetting hedge funds or imposing more onerous terms on their trades, according to people close to the discussions. No one wants to be the next to tell shareholders and regulators how they failed to heed the lessons of Archegos.Inside Bank of America Corp., which refused to do business with Archegos, Chief Executive Officer Brian Moynihan has been quizzing subordinates on what more is needed to protect the firm. The episode has hardened the resolve of Wells Fargo & Co. executives that low-risk margin lending is wiser, even if less profitable. UBS Group AG CEO Ralph Hamers has signaled that clients will have to hand over more information when borrowing.And in New York, managers of small hedge funds who lack the negotiating clout of trading whales are grousing. For the little guy especially, the saga will make it harder to borrow money from banks to finance bets.While specific measures will vary by bank and client -- and in many cases are still being ironed out -- the talks and tensions point to greater pressure on clients to reveal their biggest wagers, stricter margin limits on those positions, more frequent collateral adjustments and more rigorous audits. The deliberations were described by executives close to prime brokerage desks and money managers.“There will be more calories expended, both in terms of those desks doing due diligence in the market as well as in some cases they may outright ask clients about that,” Mike Edwards, deputy chief investment officer at Weiss Multi-Strategy Advisers, a $3 billion hedge fund. Previously, it was “not a requirement at most places that you would disclose to a swap counterparty that you have the same position on at multiple places.”Such concerns have risen to the top of the regulatory world. Fed Governor Lael Brainard, the head of the Board’s financial stability committee, called for “more granular, higher-frequency disclosures” on Thursday.“The Archegos event illustrates the limited visibility into hedge-fund exposures and serves as a reminder that available measures of hedge-fund leverage may not be capturing important risks,” she said.Two Sigma’s MoveThe thirst from banks to boost business with clients like Bill Hwang’s Archegos allowed him to shop for the most generous terms and amplify his wagers. He was able to parlay over $20 billion of his fortune into total bets that exceeded $100 billion, built on the back of banks tripping over each other to fuel his leveraged empire. Hwang used that to to make aggressive asks, demanding strikingly off-market margin terms -- such as $8.50 in leverage for every $1 he put in -- for building his book in Chinese stocks. Some banks demurred, others played ball.In the wake of his fund’s collapse, it’s less likely that other hedge funds will be able to win such terms. Bank officials declined to be interviewed.No bank got hit harder than Credit Suisse when Archegos was unable to meet margin calls from prime brokers in March. The Swiss bank lost more than $5.5 billion after losing a race with peers to sell off the family office’s unusually concentrated and leveraged bets on stocks, in a portfolio that swelled to more than $100 billion.Not too long after, Two Sigma heard from contacts at Credit Suisse, according to people with knowledge of the exchange: Could the investment firm please trim its exposure and move a few billion dollars somewhere else?It wasn’t a hardship; investment firms as big as the $58 billion quant money manager are used to shifting between brokerages. But it adds to a broader outflow, as Credit Suisse adjusts risk tolerances and practices, slashing lending to hedge funds by a third. Hedge fund manager Marshall Wace, with more than $50 billion in assets, also shifted business from Credit Suisse to some U.S. banks, a person familiar with the matter said last month.Unusual ReviewWithin days of the Archegos blowup in March, Deutsche Bank AG and BNP Paribas SA alone had received more than $10 billion in inflows from a number of clients pulling away from Credit Suisse, according to a person with knowledge of the moves. The investors included D.E. Shaw, Two Sigma and Marshall Wace. Representatives for the firms declined to comment.Additional inflow recipients include Goldman Sachs Group Inc. and Bank of America, according to people with knowledge of their businesses, both of which are working on measures to keep risks in check.Inside Bank of America, executives fielding that money have been conducting an unusual review: Examining what went right in the lender’s decision to refuse Archegos as a client this year. That could help the firm avoid potential headaches. Discussions there have revolved, in part, around boosting collateral for certain types of swaps, depending on the situation.When Archegos came up at the bank’s annual meeting last month, Moynihan lauded senior executives for paying close attention to the amount of risk the board is willing to take.Archegos had around $3 billion at the start of 2020 before it lost roughly half within a few months, according to a bank executive that worked with the investment firm. By March of this year its portfolio had soared to $23 billion -- making it a prized customer at a handful of banks around the world.Warning SignsReviews by prime brokers have pointed to an array of warning signs that not everyone heeded, such as the dramatic month-to-month swings in the value of its portfolio. There also was its heavy preference for swaps -- rather than direct stakes -- that hid its concentration of bets on a handful of companies. And it used an accounting firm not normally associated with money managers commanding so much firepower.As Archegos swelled, the reaction among prime brokerage managers was split: At one bank, they expressed amazement to colleagues, at another executives saw it as radioactive and steered clear. Employees at that firm have since been examining other hedge fund clients for similar patterns and expect to have conversations with some about adjusting the terms of their business.Many big hedge funds set up multiple prime brokerage relationships, sometimes using a few of the industry’s giants -- JPMorgan Chase & Co., Goldman Sachs and Morgan Stanley -- as well as a few others such as Credit Suisse for supplementary leverage on their bets.But managers overseeing smaller mounts of money typically find they don’t have as many options. Though some banks such as Morgan Stanley make a point of serving fledgling funds, smaller money managers say they generally face more-onerous terms on trades.Worsening TermsThe Archegos blowup is going to make that situation all the worse, two veteran managers atop smaller firms said. Deeper due diligence costs prime brokerages time and money. Fewer mid-sized prime brokerages will offer as much margin or the breaks on trading terms that were available just months ago. The money managers worry that they face a more take-it-or-leave-it environment than interest in doing business.The frustrations over Archegos are shared by bigger firms too.In a letter to investors, Marshall Wace co-founder Paul Marshall raged over how Archegos caught prime brokers by surprise using opaque swaps.“The prime brokers have paid the price for extending so much risk,” he wrote last month, chiding them for not asking enough questions. “PBs will improve.”(Updates with comment from Fed’s Brainard.)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. Business Bloomberg 210506 16h07m Peloton Says Recall Will Reduce Revenue by $165 Million (Bloomberg) -- Peloton Interactive Inc. projected revenue of $915 million in the current quarter, saying the recall of its treadmills would reduce sales by about $165 million. Shares gained about 4% in extended trading after investors had prepared for a larger blow.Chief Executive Officer John Foley said the financial impact would be “short term” from the halt to sales and recall of the Tread+ and Tread products. Peloton had planned May 27 for an expanded U.S. rollout of its less-expensive Tread, which has only about 1,050 models on the market, but Foley said Thursday the widespread launch will be delayed while safety improvements are put in place.Peloton, in conjunction with the U.S. Consumer Product and Safety Commission, on Wednesday announced the recall of the treadmills. The $4,295 Tread+ was connected to the death of a child and more than 70 reports of injuries, while the touchscreen of the less-expensive Tread was at risk of falling off. The products account for a small percentage of the company’s hardware revenue, which is primarily generated by stationary bicycles, but are seen as key future growth drivers.Foley said the company is working on new safety measures for the treadmills, including a software update that will include a passcode requirement for the more expensive model. Hardware changes are also being worked on, but must be approved by regulators, and may take six to eight weeks, he said.In light of the recall, the company revised its forecasts and said annual revenue would be $4 billion compared with the previous guidance of $4.075 billion. Shares, which had fallen while investors awaited the foreast, jumped to a high of $89.20 in extended trading after closing at $83.78 in New York.Earlier, Peloton said sales gained 141% to $1.26 billion in the fiscal third quarter, which ended March 31. Analysts, on average, projected $1.12 billion, according to data compiled by Bloomberg.Connected fitness subscriptions -- users who pay for classes on Peloton equipment -- jumped 135% to 2.08 million, the New York-based fitness technology company said in a statement. Paid digital subscriptions, made up of people who take classes on smartphones, tablets and other devices, increased to 891,000. Both numbers topped analysts’ average estimates.Peloton sales have soared in the past year as the pandemic shut gyms and forced people to work out from home. However, the company has struggled to keep up with demand for months, leading to long wait times and frustrated customers. Those supply issues droves shares down about 45% in 2021.In a letter to shareholders, Peloton said average shipping times for its original bike are back to pre-pandemic levels. “While progress has been made, additional work remains to reduce delivery times across the remainder of our product portfolio and regions,” the company said.Peloton said it completed its acquisition of fitness equipment maker Precor on April 1 and integration is “well underway.” The company plans to make a limited number of products at Precor’s North Carolina facility by the end of 2021.The company recently said it would expand to Australia later this year, adding in the letter that it sees “significant growth opportunities in a broad range of international markets.” but had no announcements at this time.Peloton said connected fitness subscription workouts increased 239% to 149.5 million in the quarter, an average of 26 monthly per user compared with 17.7 in the same period a year earlier. The monthly churn rate was 0.31%, though 98% of subscribers are on a month-to-month basis.Peloton reported an adjusted profit before interest, taxes, depreciation and amortization of $63.2 million in the fiscal third quarter, topping analysts’ estimates of $18.3 million. Net loss narrowed to $8.6 million, or 3 cents a share, from $55.6 million, or 20 cents, a year earlier.(Updates with forecast in the first 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. Howell date : 210506 16h17m37s Business Bloomberg 210506 16h07m Peloton Says Recall Will Reduce Revenue by $165 Million (Bloomberg) -- Peloton Interactive Inc. projected revenue of $915 million in the current quarter, saying the recall of its treadmills would reduce sales by about $165 million. Shares gained about 4% in extended trading after investors had prepared for a larger blow.Chief Executive Officer John Foley said the financial impact would be “short term” from the halt to sales and recall of the Tread+ and Tread products. Peloton had planned May 27 for an expanded U.S. rollout of its less-expensive Tread, which has only about 1,050 models on the market, but Foley said Thursday the widespread launch will be delayed while safety improvements are put in place.Peloton, in conjunction with the U.S. Consumer Product and Safety Commission, on Wednesday announced the recall of the treadmills. The $4,295 Tread+ was connected to the death of a child and more than 70 reports of injuries, while the touchscreen of the less-expensive Tread was at risk of falling off. The products account for a small percentage of the company’s hardware revenue, which is primarily generated by stationary bicycles, but are seen as key future growth drivers.Foley said the company is working on new safety measures for the treadmills, including a software update that will include a passcode requirement for the more expensive model. Hardware changes are also being worked on, but must be approved by regulators, and may take six to eight weeks, he said.In light of the recall, the company revised its forecasts and said annual revenue would be $4 billion compared with the previous guidance of $4.075 billion. Shares, which had fallen while investors awaited the foreast, jumped to a high of $89.20 in extended trading after closing at $83.78 in New York.Earlier, Peloton said sales gained 141% to $1.26 billion in the fiscal third quarter, which ended March 31. Analysts, on average, projected $1.12 billion, according to data compiled by Bloomberg.Connected fitness subscriptions -- users who pay for classes on Peloton equipment -- jumped 135% to 2.08 million, the New York-based fitness technology company said in a statement. Paid digital subscriptions, made up of people who take classes on smartphones, tablets and other devices, increased to 891,000. Both numbers topped analysts’ average estimates.Peloton sales have soared in the past year as the pandemic shut gyms and forced people to work out from home. However, the company has struggled to keep up with demand for months, leading to long wait times and frustrated customers. Those supply issues droves shares down about 45% in 2021.In a letter to shareholders, Peloton said average shipping times for its original bike are back to pre-pandemic levels. “While progress has been made, additional work remains to reduce delivery times across the remainder of our product portfolio and regions,” the company said.Peloton said it completed its acquisition of fitness equipment maker Precor on April 1 and integration is “well underway.” The company plans to make a limited number of products at Precor’s North Carolina facility by the end of 2021.The company recently said it would expand to Australia later this year, adding in the letter that it sees “significant growth opportunities in a broad range of international markets.” but had no announcements at this time.Peloton said connected fitness subscription workouts increased 239% to 149.5 million in the quarter, an average of 26 monthly per user compared with 17.7 in the same period a year earlier. The monthly churn rate was 0.31%, though 98% of subscribers are on a month-to-month basis.Peloton reported an adjusted profit before interest, taxes, depreciation and amortization of $63.2 million in the fiscal third quarter, topping analysts’ estimates of $18.3 million. Net loss narrowed to $8.6 million, or 3 cents a share, from $55.6 million, or 20 cents, a year earlier.(Updates with forecast in the first 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. Business Bloomberg 210506 15h54m Amazon Postpones Prime Day Sale in Canada, India Due to Covid-19 (Bloomberg) -- Amazon.com Inc. is pausing plans for its annual sale Prime Day in Canada and India due to concerns about Covid-19, the company confirmed on Thursday. The pause won’t affect Prime Day in the U.S., which is scheduled for an undisclosed day in June, according to an email reviewed by Bloomberg.“Based on the increasing impact of Covid-19 in Canada, and the importance we place on protecting the health and safety of our employees and customers, we will pause plans for Prime Day 2021 in Canada,” said the email, sent to Amazon sellers Thursday. The Seattle-based company, in an email, confirmed Prime Day would also be postponed in India, which was reported earlier by CNBC.Covid-19 cases have risen in Canada in recent months amid a slower-than-expected rollout of vaccinations. Less than 3% of the population is fully vaccinated, according to the Bloomberg Vaccine Tracker, and Ontario, the largest province, has been under an emergency stay-at-home order for weeks. India, which is suffering severe shortages of medical equipment, on Thursday reported 412,262 new virus cases and 3,980 deaths, both daily records.Amazon had to postpone its annual sale worldwide last year due to the pandemic. The event is a way to drum up sales during the summer and attract and retain new Prime subscribers, who pay monthly or annual fees for delivery discounts and other services like video streaming.Read more: Canada’s Vaccine Push Plagued by Confusion, Erratic Supply(Updated with postponement in Inda in first 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. Business Bloomberg 210506 15h40m World’s Top Lumber Firm to Expand U.S. Mill Capacity Amid Boom (Bloomberg) -- West Fraser Timber Co. plans to expand capacity at five of its lumber mills in the U.S. South as a home-building boom fuels lumber demand.The pandemic-fueled surge in home construction last year took North American sawmills by surprise, sending lumber prices to new records. U.S. futures this week hit $1,600 per 1,000 board feet for the first time, a four-fold increase from a year ago. While production has since ramped up, demand continues to outpace supplies as home-buying and renovations continue.“In the lumber segment we expect to invest approximately $150 million at five of our U.S. South lumber mills under the strategic capital program,” the company said Thursday in a statement. “Investments at the target mills will expand their capacity, increase the mix of higher-margin 2x4s and reduce fixed and variable production costs.”Key TakeawaysThe Vancouver-based company acquired Norbord Inc., one of the world’s biggest makers of oriented strand board, in February. West Fraser said it will invest $30 million at two OSB mills to improve productivity.Log costs for the company’s Canadian and engineered wood product operations are expected to remain elevated as long as demand exceeds available log supply in B.C.Higher Canadian stumpage rates and increased costs from extreme weather in the U.S. south, negatively impacted adjusted EBITDA compared to the prior quarter, the company said.Adjusted EBITDA for lumber in the last three months of 2020, when prices were unseasonably high due to strong home building and renovation demand, was $425 million. This jumped to $646 million in the first three months of 2021.West Fraser said it will move forward with roughly $180 million of additional capital projects in the second half of 2021 through 2023, and reiterated its capital expenditure target of roughly $450 million this year.Market ReactionWest Fraser shares are up 28% this year through Thursday’s close, after reaching a record high at C$106.42 last month in Toronto, outperforming the nearly 11% gain of Canada’s benchmark S&P/TSX Composite Index.Get MoreFirst-quarter adjusted EBITDA was $1 billion or $6.96 a share, missing the C$1.18 billion average estimate in a Bloomberg survey.Read more about West Fraser’s quarterly results here.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. Business Yahoo Finance Video 210506 15h40m Sunrun jumps on Q1 revenue beat Tom vonReichbauer, Sunrun CFO joins the Yahoo Finance Live panel with the latest on their Q1 earnings report. U.S. Yahoo Finance 210506 15h33m AFT president 'very bullish' on Biden Admin's school reopening efforts Randi Weingarten, president of the American Federation of Teachers, tells Yahoo Finance Live that in spite of some of the difficulties in reopening schools, she has seen first-hand that many kids feel safe and are happy to be back in school. Howell date : 210506 15h46m59s U.S. Yahoo Finance 210506 15h33m AFT president 'very bullish' on Biden Admin's school reopening efforts Randi Weingarten, president of the American Federation of Teachers, tells Yahoo Finance Live that in spite of some of the difficulties in reopening schools, she has seen first-hand that many kids feel safe and are happy to be back in school. Business Reuters 210506 15h25m UPDATE 1-MP Materials profit beats expectations on rising output, pricing U.S.-based rare earths miner MP Materials Corp posted a higher-than-expected quarterly profit on Thursday due to rising production and prices for the metals used to make electronics. The company, which relies on China to process rare earth oxides from its California mining complex, reported a first-quarter net income of $16.1 million, or 9 cents per share, compared with $1.9 million, or 3 cents per share, in the year-ago quarter, when it was a private company. MP shares rose 4.1% to $30.45 in after-hours trading. Politics Reuters 210506 15h18m Twitter shuts down accounts for attempting to evade Trump ban Twitter Inc suspended several accounts this week that were set up to share statements from a new part of former U.S. President Donald Trump's website, saying they broke its rules against evading an account ban. Trump was banned from Twitter, where he had more than 88 million followers, and multiple other social media platforms following the deadly Jan. 6 siege of the U.S. Capitol by his supporters. On Tuesday, a page was added to Trump's site, dubbed "From the Desk of Donald J. Trump," where he posts messages that can be shared by his audience to both Twitter and Facebook. Business Bloomberg 210506 15h17m Fed Warns of Peril for Asset Prices as Investors Gorge on Risk (Bloomberg) -- A rising appetite for risk across a variety of asset markets is stretching valuations and creating vulnerabilities in the U.S. financial system, the Federal Reserve said in its semi-annual financial stability report.“Vulnerabilities associated with elevated risk appetite are rising,” Fed Governor Lael Brainard, the head of the Board’s financial stability committee, said in a statement accompanying the report released Thursday. “The combination of stretched valuations with very high levels of corporate indebtedness bear watching because of the potential to amplify the effects of a re-pricing event.”In this environment, prices may be vulnerable to “significant declines” should risk appetite fall, the Fed report noted.Brainard and the report mentioned losses at banks stemming from dealings with Archegos Capital Management, and the governor called for “more granular, higher-frequency disclosures.”“The Archegos event illustrates the limited visibility into hedge-fund exposures and serves as a reminder that available measures of hedge-fund leverage may not be capturing important risks,” she said.Near-zero interest rates and massive bond purchases, with the Fed buying $40 billion in mortgage-backed securities and $80 billion in Treasuries every month, have fueled a search for returns and helped buoy asset prices including those of risky investments such as speculative stocks, cryptocurrencies and high-yield debt. The Standard and Poor’s 500 stock index has risen 12% this year.“The real story here is the tension -- if not the glaring contradiction -- of the Fed’s pursuit of quantitative easing, the aim of which is to lower long-term rates and encourage reach for yield, and their concern that people are indeed reaching for yield,” said George Selgin, a senior fellow at the Cato Institute in Washington, referring to the bond buying. “The Fed could certainly taper its QE activities to counter this risk-taking as the recovery continues.”Spacs, Meme Stocks“Indicators pointing to elevated risk appetite in equity markets in early 2021 include the episodes of high trading volumes and price volatility for so-called meme stocks -- stocks that increased in trading volume after going viral on social media,” the report said. “Elevated equity issuance through SPACs also suggests a higher-than-typical appetite for risk among equity investors.”Low rates are also impacting the real economy. Home prices are up 12% year over year amid high demand for property and scarce supply, while a boom in home remodeling has helped push lumber futures to record highs. The Bloomberg Commodity Index, which tracks everything from grains to natural gas and nickel, is up 19%.The report said house-price increases have had a positive effect for borrowers by boosting equity. Still, it noted that borrowers in forbearance programs, who are likely to be employed in industries hard hit by the pandemic, could be vulnerable when they exit. “Even so, a large fraction of borrowers have already exited forbearance -- in general, these borrowers have loans that are either current or paid off,” the report said.The report also noted that low interest rates have reduced default expectations, and underwriting standards have weakened. “The share of newly issued loans to large corporations with high leverage -- defined as those with ratios of debt to earnings before interest, taxes, depreciation, and amortization greater than 6 -- has exceeded the historical highs reached in recent years,” it said.Hedge Fund LeverageThe report said that “available data suggest” that hedge funds are highly leveraged, and said there is a need for greater transparency on opaque risk exposures, echoing Brainard’s call for more transparency.“Some hedge funds with substantial short positions sustained losses during the meme stock episode in January 2021, when intense social media activity contributed to fluctuations in the prices of some specific stocks,” the report said, probably a reference to the short squeeze in shares of GameStop Corp., which soared to more than $300 a share from around $20 a share in a matter of days.Jon Caplis, chief executive officer at hedge fund consultant PivotalPath, said after the report’s release that one disclosure in particular could mitigate the risk of a future Archegos-like situation happening again.“Before you try and rewrite all the regulatory statutes, you can make one small change that would be effective,” he said. “If you merely treat total-return swaps in the same way hedge funds are already disclosing equity holdings, you would drastically mitigate an Archegos-like fallout from happening again.”(Updates with reaction in final two 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. Business Reuters 210506 15h14m Mexico's president criticizes Shell-Pemex joint venture in Texas refinery Mexico's president on Thursday criticized the partnership between state oil company Pemex and Royal Dutch Shell in a Texas refinery, saying it has not yielded any benefits for Mexico. President Andres Manuel Lopez Obrador, an energy nationalist who has sought to revive the fortunes of the deeply-indebted Pemex, said that no profits have been repatriated to Pemex since the partnership with Shell was established in 1993 as they have all been re-invested. "We are addressing this issue," Lopez Obrador said at his daily press conference when he was asked about the Deer Park refining joint venture in Texas, but did not elaborate on the matter. Howell date : 210506 15h16m22s Business Yahoo Finance Video 210506 15h05m Wells Fargo EVP: Optimism on the rise for small businesses Wells Fargo Senior EVP & CEO of Consumer & Small Business Mary Mack joins Yahoo Finance to offer advice for small business owners and analyze 2021 consumer trends. Business Bloomberg 210506 15h04m Facebook’s Trump Verdict Renews Calls to Revoke Legal Shield (Bloomberg) -- The decision by a Facebook Inc. panel to extend for up to six months former President Donald Trump’s banishment from the social media platform has renewed calls to revoke the legal shield that enabled Facebook to grow into one of the richest and most powerful companies in the world.Minutes after the announcement, it was clear that the Facebook ruling hadn’t pleased liberals or conservatives. House Minority Leader Kevin McCarthy tweeted that Republicans would move to “rein in big tech power over our speech” if the GOP takes control of the House after the 2022 midterm elections.“There is no backend accountability for Facebook. There’s no fine,” said Rashad Robinson, president of Color of Change, a civil rights group. “We have to end the immunity that these platforms have.”But legal experts and academics say that curtailing the protection known as Section 230 could result in years of litigation and bedlam for the social media industry.Tech companies fear lawsuits will explode, operating costs will soar and free speech will suffer if they lose their legal immunity. While the long-term effect on market shares is far from certain, in the short term Facebook, Alphabet Inc.’s Google and Twitter Inc. could become even more powerful as smaller networks fold because they can’t absorb the higher costs.For some social media users, eliminating the shield might seem like a tonic: Tech platforms would finally have to answer for their actions in court. But the prospect of large judgment awards could lead networks to clamp down hard on users’ posts, whether those are election falsehoods or #MeToo-style allegations of sex harassment.The upshot: The free-flowing content that has led to the creation of new business models, transformed personal relationships and powered social movements could disappear, along with Section 230.“Section 230 has become this outsized influence on tech policy, said Mary Anne Franks, a professor at the University of Miami School of Law. “It’s undeniable that if it were to be repealed or significantly changed, what would happen is a major disruption to the way that platforms consider their risks and their resources.”Congress gave internet companies Section 230, part of the 1996 Communications Decency Act, as a quid pro quo. In exchange for the freedom to referee content, they aren’t legally liable for whatever they leave up or take down.It’s not hard to imagine who would sue Silicon Valley’s biggest names if they thought they had a shot at winning. Victims of revenge porn, sex harassment, gun violence and privacy breaches could seek restitution. So could restaurant owners looking to stop rivals from posting fake reviews, conservatives claiming social media is censoring them and mothers complaining that their children are being bullied online.The assaults on Section 230 are coming from the highest levels and from across the political spectrum. As a presidential candidate, Joe Biden echoed the views of many Democrats when he said he favored repealing the clause because social networks weren’t doing enough to remove hate speech, conspiracy theories and falsehoods.As president, Trump unsuccessfully tried to revoke it for an altogether different reason: He and other Republicans think the tech companies use the legal shield to remove right-leaning content.Sundar Pichai​​​​​​, chief executive officer of Alphabet, which owns Google and its YouTube unit, painted his nightmare scenario for lawmakers in a March 25 House hearing. If the clause were revoked, he said, tech companies would have no choice but to follow the law that existed before Section 230. “Platforms would either over-filter content or not be able to filter content at all,” said Pichai.He was referring to court opinions from the early 1990s that put internet companies in a bind. If they moderated what some users posted, they would be legally responsible for everything users posted, opening the door to lawsuits. Yet if they took a hands-off approach, they wouldn’t be held liable. So Congress passed Section 230 to protect internet companies if they acted responsibly and removed problematic posts.Facebook has been running a public-relations campaign to pressure Congress to impose more regulation on social media rather than end legal protections altogether. CEO Mark Zuckerberg wants lawmakers to condition the legal shield on large platforms having systems to identify and remove unlawful content, with third parties determining whether the program is adequate. That closely resembles the oversight board process Facebook just used to review its Trump ban. Twitter CEO Jack Dorsey and Pichai expressed openness to the idea at the March House hearing.But with the Trump decision fresh on their minds, lawmakers aren’t likely to find that satisfactory. Facebook removes numerous posts that violate its rules, but that hasn’t stopped objectionable content from proliferating across its platform, or soothed conservatives who think the owners of social media are biased against them.“Your abuses of your privilege are far too numerous to be explained away and far too serious to ignore,” Representative Jeff Duncan, a South Carolina Republican, told the tech CEOs in the March hearing. “So it’s time for your liability shield to be removed.”Lauren Culbertson, Twitter’s head of U.S. policy, said in statement that the company believes in the fundamentals of the legal shield but said lawmakers “should build upon Section 230 to reflect the realities of the modern digital age.” Spokespeople from Facebook and Google declined to comment.Lawmakers have proposed a variety of measures to weaken the legal shield, ranging from forcing tech companies to treat political content neutrally to eliminating hate speech and terrorism, stopping harassment and cyber-stalking, and preventing the sale of counterfeit goods. But Congress is far from agreeing on what it wants the tech companies to do.Lawmakers must tread carefully: The First Amendment prohibits the government from regulating speech, such as by forcing a tech company to leave up or take down certain categories of posts.Simply revoking Section 230 would toss the action into the courts. Judges would have to reinterpret old court rulings meant to address the responsibility that bookstores and newsstands have for what they sell and apply them to social media.Even then, defining the new legal responsibilities for tech companies won’t be easy. People are fooling themselves when they say a few years of litigation would clarify the law on platform liability, said Daphne Keller, who directs Stanford University’s Program on Platform Regulation. “Then there are people like me who are like, ‘are you kidding? The number of different things there are to litigate is infinite.’”Social networks would have to defend themselves against lawsuits that courts now dismiss because of Section 230. An analysis by the Internet Association of more than 500 court decisions involving the clause over two decades found that 43 percent involved allegations of defamation.In the next most common claim, involving about 10% of the lawsuits, users argued their First Amendment rights or other legal protections were violated when companies removed or limited content.The cost to fight a single lawsuit could total hundreds of thousands of dollars without the legal shield, according to Engine, an advocacy organization that has received funding from Google and represents startups.“Without Section 230, you don’t get to assert an affirmative defense that early on,” said Engine Executive Director Kate Tummarello. Instead, a tech company might have to turn over everything “you’ve ever shared internally as a company on content moderation” to comply with the discovery process.Some legal experts believe the possibility of costly damage awards would drive tech companies to tighten their content moderation practices and more strictly enforce terms of service.Maybe that’s not such a bad outcome, said Franks, the law professor. “Industries ought to worry a little bit about whether or not they’re getting sued,” she said.But if the platforms are held liable for everything they miss, and that liability overwhelms the value of their business, “the only answer is to opt out of the game altogether and shut down,” said Eric Goldman, a professor at Santa Clara University School of Law.The fallout could be uneven. Large tech companies can absorb the costs of heightened legal exposure. Yet smaller platforms with fewer resources and greater dependence on user-generated content might buckle. Websites such as Yelp Inc. and Ripoff Report, a website that tracks complaints about businesses, might be forced to take down more content to sidestep lawsuits.“Facebook and Twitter would figure out a way to survive,” Ripoff Report founder Ed Magedson said in a statement. “Smaller platforms like ours would be crippled.”Yelp didn’t respond to a request for comment.Tech companies might ban entire categories of content. For instance, to avoid defamation lawsuits, a platform might bar users from accusing others of sexual harassment or assault. If there were no Section 230, the #MeToo movement might not have gained traction, said Stanford’s Keller.In 2018, after Congress passed a law weakening Section 230 if a company knowingly facilitated sex trafficking, Craigslist, a website for classified ads, closed its personals section altogether.Social media companies have tried to rid their platforms of hate speech, some sexual content, and misinformation on elections and Covid-19. Facebook, YouTube and Twitter often rely on algorithms -- and sometimes human reviewers -– to detect falsehoods on these topics. Google and Twitter have created a variety of tools to fight disinformation, such as applying labels to misleading posts, reducing the spread of conspiracy theories and penalizing users who routinely break the rules.But those efforts have failed to catch a steady stream of posts that violate the companies’ rules, from white supremacy groups that use social media to organize events that might result in violence, to anti-vaxxers who peddle false information about Covid-19 vaccines. Facebook allowed Trump to flout its voter-suppression rules when he questioned the legitimacy of mail-in ballots.Then there are cases like Matthew Herrick’s. He sued Grindr, the LGBT-friendly dating app, alleging his ex-boyfriend created fake profiles of him and led hundreds of men to his home and workplace. His lawsuit argued that Grindr is a defective product and that he was harmed because its platform was easily manipulated.Grinder said in a statement that in Herrick’s case the company “worked closely with law enforcement and took extensive steps to delete and ban fraudulent accounts.”The U.S. Court of Appeals for the Second Circuit ruled against Herrick, citing Section 230. The Supreme Court declined to review the case.“There was no one else in a position” to stop the harassment besides the platform itself, said Carrie Goldberg, Herrick’s lawyer. “But Grindr said that they had no liability to Matthew because of Section 230.”(Updates with Twitter statement in 18th 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. Business Bloomberg 210506 14h57m Energy Transfer Made $2.4 Billion From Texas Winter Storm (Bloomberg) -- Energy Transfer LP, the pipeline giant controlled by billionaire Kelcy Warren, has emerged as the biggest winner so far from the deadly winter storm that paralyzed Texas in February.The company saw a positive earnings impact from the extreme weather of about $2.4 billion, it said Thursday in its first-quarter earnings statement. Energy Transfer raised its full-year earnings guidance to as much as $13.3 billion, from up to $11 billion previously. The stock jumped as much as 3.6% in after-hours trading.The company joins a growing list of gas market players who reaped windfalls totaling almost $5 billion amid the chaos of the storm. Plunging prices and power cuts interrupted the normal flow of gas from many wells. Market players with available supplies were able to sell at sky-high spot prices.Speculation over the extent of Energy Transfer’s gains began soon after the storm when Co-Chief Executive Officer Marshall McCrea told investors in a conference call that the company had done “exceptionally well” as a dramatic gas shortage spurred demand for the supplies held in the company’s storage facilities. The fossil-fuel hauler was sued by CPS Energy, a Texas utility, in the immediate aftermath of the crisis for allegedly charging a natural gas price more than 15,000% higher than normal. Energy Transfer rejected the claims.“During the storm, employees manned facilities 24 hours a day, ET’s transmission lines remained fully operational and the Partnership did everything within its control to keep plants running and field compression idling so that ET would be prepared to deliver natural gas to facilities throughout Texas for residential consumption and power generation,” the company said in the statement.Kinder Morgan Inc., another pipeline operator, said last month the storm had a $1 billion positive impact on its results. BP Plc also reported an “exceptional” quarter in gas trading; while it didn’t break out more detail, one Citigroup Inc. analyst estimated BP’s Texas-related gain easily exceeded $1 billion, Meanwhile Australian investment bank Macquarie Group Ltd. pocketed $210 million.Energy Transfer operates over 90,000 miles (145,000 kilometers) of pipelines and related infrastructure spanning 38 states and Canada. The company posted a record quarterly net income of $3.29 billion in the first quarter, far exceeding the $820.5 million average of analysts’ estimates compiled by Bloomberg. The company lost $854 million a year earlier.(Updates with stock price move in second 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. World Yahoo Finance 210506 14h54m Let drugmakers keep their Covid vaccine profits The cost of vaccines is a mighty bargain compared with the cost of the pandemic. Business Bloomberg 210506 14h44m Glencore CEO Says $15,000 Copper Needed to Drive New Supply (Bloomberg) -- Copper will need to rise 50% further from its current near record high to encourage enough new mined supply to meet rampant demand, according to Ivan Glasenberg, the billionaire chief executive officer of Glencore Plc.Copper topped $10,000 a metric ton last week for the first time in a decade and has been among the best performers in a scorching surge in metals prices. The rally is being fueled by stimulus measures, the global economic recovery from Covid-19 and concerns about long term supply.That means miners will have to go to more difficult jurisdictions such as Russia and parts of the copper belt in central Africa to find new mines, and that will need higher prices to offset the risk, Glasenberg said at the FT’s Global Boardroom summit on Thursday.“We don’t have many shovel-ready projects,” Glasenberg said. “You will need higher prices. You will need the so-called $15,000 copper price to encourage a lot of this more difficult investment.”The largest miners have been universally bullish on copper, holding a long-term view that usage in cities and electric vehicles will expand demand, while new supplies of the metal are constrained. Yet, there are a few major mines in development, and none on the scale required to meet forecasts for future demand.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. Howell date : 210506 14h45m44s Business Reuters 210506 14h38m GLOBAL MARKETS-Stocks gain, commodities rise on inflation worries The dollar fell and a gauge of global equity markets rose on Thursday as surging commodity prices spurred the prospect of rising inflation and led investors into economically-sensitive stocks on the reflation trade. Aluminum prices approached levels last seen in 2018 and copper prices flirted with 10-year peaks. Gold jumped more than 1% as the weaker dollar and easing Treasury yields propelled the precious metal, an inflation hedge, above the key $1,800 an ounce psychological level. Business Yahoo Finance 210506 14h38m Shake Shack Q1 sales jump, but revenues light amid digital push, COVID recovery Here's what Wall Street is expecting from the "roadside" burger chain. Business Bloomberg 210506 14h35m Ark Slammed Again as Riskiest Tech Bets Blow Past Lifelines (Bloomberg) -- The highest-flying tech names are getting no help from one of the sector’s usual lifelines amid a fierce selloff that’s showing few signs of slowing.Plunging U.S. real yields -- which strip out the effects of inflation -- failed to stem a 2.9% fall in Cathie Wood’s ARK Innovation exchange-traded fund (ARKK) Thursday, now in the midst of its worst stretch since 2018. Drops in the likes of Twilio Inc., Zoom Video Communications Inc. and Roku Inc. dragged down the ETF, even as the mega-cap Nasdaq 100 rallied for the first time this week.The break-apart in riskier tech and real rates is a sea change in a relationship that’s held through much of the past year. With bonds offering a negative rate of return after stripping out inflation, speculative tech and growth have flourished as investors hunt for yield. That the decoupling is happening at a time when a standard explanation for weakness in equities is “concern about inflation” shows the challenges of assigning cause and effect to a market where everything from retail day-traders to options-fomented hedging is acting on prices.“Even though the bond market is suggesting that tech should be doing better, commodities are what the equity market is listening to and that is causing less of a bid for technology,” said Matt Miskin, co-chief investment strategist at John Hancock Investment Management. “Commodities are whispering in the ear of the equity market and saying inflation is coming.”A surge in everything from copper to corn prices has pushed the Bloomberg Commodity Spot Index to its highest level in almost a decade. Meanwhile, 2-year breakevens touched the highest level since 2008 on Wednesday. The market’s sensitivity to a potential rise in rates was on display this week, with the Nasdaq 100 careening lower after Treasury Secretary Janet Yellen said interest rates may have to rise moderately to keep the economy from overheating -- a point she later walked back.ARKK has bled about $785 million in outflows over the past six days, according to data compiled by Bloomberg. Amid the carnage, hedge funds sold technology shares for seven straight days, cutting their exposure to the lowest since December, prime broker data compiled by Goldman Sachs Group Inc. show.Retail investors have also absorbed blows after chasing momentum into the high flyers like green energy and electronic-vehicle stocks. Plug Power Inc. tumbled 7.1% Thursday after a 973% surge in 2020. Xpeng Inc., a Chinese maker of electric cars, dropped 5.8% for its eighth decline in nine days.A Goldman Sachs basket of retail favorites has fallen five straight weeks, the longest losing streak in data going back to July 2018. That’s a turnaround from earlier this year, when a Reddit-driven rally in meme stocks like GameStop Corp. handed the retail crowd a win against some short sellers.As growth gets hit, cyclically-oriented sectors -- those with earnings viewed as being more tied to economic swings -- have pulled ahead. The financial and energy sectors have rallied 3.6% and 6.9% so far this week, respectively, putting both on track for their strongest showings since March.“With the data continuing to suggest a faster than expected recovery, the recovery/reflation trade is winning and expensive growth becomes a source of funds,” said Dan Suzuki, Richard Bernstein Advisors LLC’s deputy chief investment officer. “The rising inflation expectations indicate that people’s confidence in the reflation trade is picking up.”(Updates with closing prices throughout.)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. Business Bloomberg 210506 14h30m Epic’s Interrogation of Apple App Store Witness Gets Rocky Start (Bloomberg) -- Epic Games Inc.’s first chance to put Apple Inc. on the defensive about its App Store at a high-stakes trial got off to a rocky start.Epic’s lawyers opened their questioning of App Store chief Matt Fischer by dredging up a five-year-old email that quoted a colleague saying “Matt feels extremely strong about not featuring our competitors on the App Store.” But the quote wasn’t presented in its full context and Fischer quickly dismissed it as a misrepresentation.Then the game maker was excoriated by the judge for blindsiding her about a cache of evidence exhibits that the company released publicly.Fischer is the first Apple employee to take the witness stand as Epic, the creator of Fortnite, tries to prove that the marketplace for apps that run on hundreds of millions of iPhones is operated like a monopoly. Trystan Kosmynka, a senior director at Apple in charge of the app review process, is set to be called to the stand later in the day.The trial in Oakland, California, comes as Apple faces a backlash -- with billions of dollars in revenue on the line -- from global regulators and some app developers who say its standard App Store fee of 30% and others policies are unjust and self-serving.How Apple’s App Store Sparked an Epic Trial: QuickTakeThe fight with Epic blew up in August when the game maker told customers it would replace Apple’s in-app purchase system with its own, circumventing Apple’s commissions from add-ons inside of Fortnite. Apple then removed the game, cutting off access for more than a billion customers.Apple, which vehemently denies abusing its market power, has called Epic’s legal gambit a “fundamental assault” on a business model that is beneficial to both developers and consumers.The statement that Fischer’s colleague made about him in a 2016 email was in relation to featuring Google and Amazon in Apple’s App Store page for accessible apps. The subject of the email was: “Competitor Apps in VoiceOver Collection.” The full sentence from which Epic pulled the quote was: “Although they may be our best and brightest apps, Matt feels extremely strong about not featuring our competitors on the App Store, so Tanya asked us to apply the same filters for this collection.”When Apple’s attorney asked Fischer to clarify the email, he said his colleague was misinformed.“We have promoted apps that are competitive to Apple apps,” Fischer testified. “We do this all the time.” Disney Plus and Hulu are examples of apps Apple has promoted despite having Apple TV+ service, Fischer said.Apple’s lawyer also neutralized Epic’s attempt to pin certain security and privacy problems on Fischer by pointing out that they weren’t part of his duties managing the App Store.Epic also managed to get cross-ways with U.S. District Judge Yvonne Gonzalez Rogers for putting documents online for public viewing without giving her an explanation.“All these things are being published, they’re out there,” Gonzalez Rogers said. “Non lawyers don’t understand the difference between something being admitted for the truth versus being admitted for some other purpose like notice so I want to nail that down.”Some of the documents that were uploaded to a publicly accessible account account disappeared shortly after the judge’s remarks.The courtroom has limited public seating due to pandemic-related restrictions, but the court has set up audio feeds for the public and media.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. Business Yahoo Finance 210506 14h30m Beyond Meat craters after big Q1 earnings loss amid 'slow thaw' from COVID-19 The plant-based meat producer posted downbeat results amid a "slow thaw" rebound from the coronavirus pandemic. Business Bloomberg 210506 14h28m Dow Average Hits Record Before Friday’s Jobs Data: Markets Wrap (Bloomberg) -- Stocks climbed as data showing the world’s largest economy is strengthening overshadowed inflation worries, with investors awaiting Friday’s jobs report. The dollar retreated.The S&P 500 closed near session highs, while the Dow Jones Industrial Average rose to a record. China’s shares traded in New York briefly extended losses after Bloomberg News reported the Biden administration is likely to preserve limits on U.S. investments in certain companies from the Asian nation. In late trading, Beyond Meat Inc. slumped as the maker of plant-based meat substitutes reported disappointing sales, and Peloton Interactive Inc. whipsawed as investors assessed its results.Read: Fed Says Asset Prices May Be Vulnerable If Risk Appetite FallsApplications for U.S. state unemployment insurance fell last week to a fresh pandemic low as labor market conditions continued to improve and the economy reopened more broadly. Separate data highlighted a rebound in productivity as the pace of output exceeded a pickup in hours worked. Economists predict the upcoming employment report will show the U.S. added about 1 million jobs in April.“With jobless claims hitting a pandemic-era low, anticipation for the full jobs picture tomorrow mounts,” said Mike Loewengart, managing director of investment strategy at E*Trade Financial. “Today’s read is another proof point that we’re one step closer to full economic recovery. As we see some serious momentum building on the jobs front, all eyes will be on how this plays into action taken by the Fed.”After closing at a fresh high on Wednesday, the Dow Jones Transportation Average -- considered a barometer of economy activity -- surged 25% above its 200-day moving average. The move could be “perceived as indicative of strength likely to continue in the broader equity market,” said Bloomberg Intelligence’s Gina Martin Adams.These are some of the main moves in markets:StocksThe S&P 500 rose 0.8% as of 4 p.m. New York timeThe Nasdaq 100 rose 0.8%The Dow Jones Industrial Average rose 0.9%The MSCI World index rose 0.7%CurrenciesThe Bloomberg Dollar Spot Index fell 0.5%The euro rose 0.5% to $1.2062The British pound was little changed at $1.3893The Japanese yen rose 0.1% to 109.07 per dollarBondsThe yield on 10-year Treasuries was little changed at 1.57%Germany’s 10-year yield was little changed at -0.23%Britain’s 10-year yield declined three basis points to 0.79%CommoditiesWest Texas Intermediate crude fell 1.2% to $65 a barrelGold futures rose 1.7% to $1,815 an ounceFor 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. Howell date : 210506 14h15m07s Business Yahoo Finance 210506 14h13m Square Q1 sales surge 266% as transactions jump amid economic recovery, bitcoin revenue soars Square is poised to report first-quarter earnings results after market close on Thursday, with the payments company's results likely boosted by ongoing growth in Cash App and its cryptocurrency offerings. Business Bloomberg 210506 14h09m Coinbase Plunges to All-Time Low With IPO ETF in Freefall (Bloomberg) -- Coinbase Global Inc. sank to a record low as investors fled high-flying market newcomers.The operator of the largest U.S. cryptocurrency exchange slumped 6% to $256.76 on Thursday, dropping for a fourth straight day. That left the shares just above the $250 reference price for its April direct listing. An exchange-traded fund that tracks shares of companies that recently went public plunged for an eighth day, the longest slide since 2015. Virgin Galactic Holdings Inc. and Opendoor Technologies Inc., companies that came to market through blank-check offerings, each sank at least 3.8%.“We saw a mini-bubble in SPACs, IPOs, crypto, clean-tech and hyper-growth in late 2020 and early 2021 and many of these asset classes are nursing bad hangovers,” said Mike Bailey, director of research at FBB Capital Partners.Coinbase’s slide comes as investors pour into extremely speculative cryptocurrencies such as Dogecoin and Binance Coin -- tokens that the exchange doesn’t offer. Most of its traffic had come from Bitcoin trades, but the price of the largest crypto coin has been mired in a narrow band for weeks. Coinbase started trading at $381 on April 14 before briefly topping $400. It’s now down 22% from the close on its first day.Nasdaq had set a reference price of $250 a share on April 13 for Coinbase’s direct listing, a number that’s a requirement for the stock to begin trading, but not a direct indicator of the company’s potential market capitalization.“What has really hurt Coinbase, now that their direct listing has taken off, you’re seeing expectations that other exchanges are coming on board,” said Edward Moya, senior market analyst at Oanda. “There’s this belief this could be as good as it gets for Coinbase in the short-term.”The Renaissance IPO ETF dropped 4.2% on Thursday, bringing its year-to-date loss to about 14%.(Updates prices.)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. Business Yahoo Finance 210506 14h07m Stock market news live updates: Stocks trade mixed, Nasdaq heads for fifth day of losses Stocks traded mixed Thursday morning, with the Nasdaq looking to extend its losing streak to a fifth straight session as technology stocks came under more pressure. Business Reuters 210506 14h05m Fed says stock market boom, 'ebullient' investors warrant caution Booming stocks, internet-driven "meme" investments and the black box of hedge fund financing pose increasing risks as the U.S. economy emerges from the coronavirus pandemic and investor appetite soars, the Federal Reserve warned on Thursday in its latest report on financial stability. "With investors ebullient on expectations for a strong rebound, it is important to closely monitor risks to the system and ensure the financial system is resilient," Fed Governor Lael Brainard said in a statement released alongside the U.S. central bank's semi-annual report, which reiterated some longstanding concerns and highlighted new ones. Commercial real estate remains potentially vulnerable, the Fed said, particularly after a pandemic that may dim demand for office space, and businesses and households "remain under considerable strain" due to the impact of the virus. Business Bloomberg 210506 14h03m Dow Average Hits Record Before Friday’s Jobs Data: Markets Wrap (Bloomberg) -- Stocks climbed as data showing the world’s largest economy is strengthening overshadowed inflation worries, with investors awaiting Friday’s jobs report. The dollar retreated.The S&P 500 closed near session highs, while the Dow Jones Industrial Average rose to a record. In a very volatile session, tech stocks finished among the biggest gainers. China’s shares traded in New York briefly extended losses after Bloomberg News reported the Biden administration is likely to preserve limits on U.S. investments in certain companies from the Asian nation.Applications for U.S. state unemployment insurance fell last week to a fresh pandemic low as labor market conditions continued to improve and the economy reopened more broadly. Separate data highlighted a rebound in productivity as the pace of output exceeded a pickup in hours worked. Traders are now awaiting Friday’s employment report, which is expected to show the U.S. added about 1 million jobs in April.“With jobless claims hitting a pandemic-era low, anticipation for the full jobs picture tomorrow mounts,” said Mike Loewengart, managing director of investment strategy at E*Trade Financial. “Today’s read is another proof point that we’re one step closer to full economic recovery. As we see some serious momentum building on the jobs front, all eyes will be on how this plays into action taken by the Fed.”After closing at a fresh high on Wednesday, the Dow Jones Transportation Average -- considered a barometer of economy activity -- surged 25% above its 200-day moving average. The move could be “perceived as indicative of strength likely to continue in the broader equity market,” said Bloomberg Intelligence’s Gina Martin Adams.These are some of the main moves in markets:StocksThe S&P 500 rose 0.8% as of 4 p.m. New York timeThe Nasdaq 100 rose 0.8%The Dow Jones Industrial Average rose 0.9%The MSCI World index rose 0.7%CurrenciesThe Bloomberg Dollar Spot Index fell 0.5%The euro rose 0.5% to $1.2062The British pound was little changed at $1.3897The Japanese yen rose 0.1% to 109.05 per dollarBondsThe yield on 10-year Treasuries was little changed at 1.57%Germany’s 10-year yield was little changed at -0.23%Britain’s 10-year yield declined three basis points to 0.79%CommoditiesWest Texas Intermediate crude fell 1.1% to $65 a barrelGold futures rose 1.7% to $1,815 an ounceFor 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. Business Reuters 210506 14h01m Goldman Sachs offers bitcoin derivatives to investors - Bloomberg News Goldman, the fifth-largest U.S. bank, has opened up trading with non-deliverable forwards that eventually pay out in cash, the report said. The bank will protect itself from the cryptocurrency's volatility by buying and selling Bitcoin futures in block trades on CME Group using Cumberland DRW as its trading partner, according to the report. Goldman declined to comment on the report. Howell date : 210506 13h13m53s Business Reuters 210506 13h07m TREASURIES-U.S. yields fall before non-farm payrolls report * U.S. jobless claims fall, briefly lift yields * Focus on non-farm payrolls for April * U.S. yield curve steepens for 5th day * U.S. 5-year breakeven inflation backs off 10-year high (Adds new analyst comments, updates prices) By Gertrude Chavez-Dreyfuss NEW YORK, May 6 (Reuters) - U.S. Treasury yields weakened on Thursday in a choppy session, moving within narrow ranges, as investors largely shrugged off better-than-expected initial jobless claims data and instead looked ahead to Friday's key non-farm payrolls report. U.S. payrolls will likely confirm the economy's solid path to recovery from the pandemic, analysts said. Economists expect 978,000 new U.S. jobs for April, according to a Reuters poll. Business Bloomberg 210506 13h04m Stocks Mixed in Volatile Session; Dollar Declines: Markets Wrap (Bloomberg) -- Stocks were mixed as data showing the world’s largest economy is strengthening stoked further debate over a pickup in inflation. Gold rallied, while the dollar retreated.China’s shares traded in New York briefly extended losses after Bloomberg News reported the Biden administration is likely to preserve limits on U.S. investments in certain companies from the Asian nation. Most major groups in the S&P 500 rose, the Dow Jones Industrial Average hit an all-time high and the tech-heavy Nasdaq 100 fluctuated.Applications for U.S. state unemployment insurance fell last week to a fresh pandemic low as labor market conditions continued to improve and the economy reopened more broadly. Separate data highlighted a rebound in productivity as the pace of output exceeded a pickup in hours worked. Traders are now awaiting Friday’s employment report, which is expected to show the U.S. added about 1 million jobs in April.“With jobless claims hitting a pandemic-era low, anticipation for the full jobs picture tomorrow mounts,” said Mike Loewengart, managing director of investment strategy at E*Trade Financial. “Today’s read is another proof point that we’re one step closer to full economic recovery. As we see some serious momentum building on the jobs front, all eyes will be on how this plays into action taken by the Fed.”After closing at a fresh high on Wednesday, the Dow Jones Transportation Average -- considered a barometer of economy activity -- surged 25% above its 200-day moving average. The move could be “perceived as indicative of strength likely to continue in the broader equity market,” said Bloomberg Intelligence’s Gina Martin Adams.These are some of the main moves in markets:StocksThe S&P 500 rose 0.1% as of 3 p.m. New York timeThe Nasdaq 100 was little changedThe Dow Jones Industrial Average rose 0.4%The MSCI World index rose 0.2%CurrenciesThe Bloomberg Dollar Spot Index fell 0.4%The euro rose 0.4% to $1.2055The British pound fell 0.1% to $1.3886The Japanese yen rose 0.2% to 109.04 per dollarBondsThe yield on 10-year Treasuries was little changed at 1.56%Germany’s 10-year yield was little changed at -0.23%Britain’s 10-year yield declined three basis points to 0.79%CommoditiesWest Texas Intermediate crude fell 1.3% to $65 a barrelGold futures rose 1.7% to $1,814 an ounceFor 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. Business Bloomberg 210506 12h57m World’s Biggest Copper Industry Nears Giant Chile Tax Hike (Bloomberg) -- Chile’s lower house approved a progressive rate on copper sales in what could become one of the heaviest tax burdens in global mining, potentially stalling investments and boosting prices.Lawmakers, who had already approved a bill to introduce a flat 3% on sales of both copper and lithium, on Thursday voted 78 to 55 to add a mechanism of marginal rates as copper prices rise, with the highest bracket set at 75%.In doing so, the world’s biggest copper industry now moves closer to what the local mining society describes as an “almost expropriatory” system. Its proponents, including Communist Party representative Daniel Nunez, said the new mechanism would reap $7 billion a year at a time when Chile is looking to resolve lingering inequalities. Opposed by the government, the bill now goes to senate.“It’s imperative that we recover economic returns for the people of Chile via mining royalties rather than continuing to gift private transnational companies,” opposition lawmaker Giorgio Jackson said before the vote.Copper futures have rallied to the highest levels since the last supercycle a decade ago, benefiting from a recovering global economy and the clean-energy transformation. Surging prices have prompted politicians in some host nations to seek a bigger share of the windfall to fight poverty. For producers, the blow from steeper taxes may be partly offset by even higher prices as an investment slowdown inhibits their ability to meet future demand.In Chile, the modification adds marginal rates starting at 15% on sales derived from copper prices of between $2 and $2.50 a pound and as much as 75% when prices exceed $4. At current levels, the effective rate would be 21.5%, although miners could discount refining costs. Representatives voted for Albemarle Corp. and Soc. Quimica & Minera de Chile SA to continue paying as much as 40% on lithium sales from the Atacama salt flat.Read More: Barrick: SthAm Politics to Send Copper Investments ElsewhereThe government has estimated that the total tax burden for large miners would exceed 80%. Some opposition lawmakers have said the new system would replace an existing tax, meaning the total burden would be more like 50%. That would still be higher than other major copper-producing countries.Chilean mines run by companies including BHP Group and state-controlled Codelco account for 28% of global copper. But many large operations are mature, requiring heavy investments to maintain output levels.“This would at the very least delay any new capacity, extending the lengthy time-line to bring on a new mine,” said Grant Sporre, an analyst at Bloomberg Intelligence. “Chile’s output could start to fade.”The government has indicated it could seek to block its passage via the Constitutional Court given it was introduced by the opposition. The new system wouldn’t be introduced until 2024 after lawmakers voted to respect companies’ stability agreements that expire in 2023.Both company and government representatives in Chile want the existing sliding tax on profit, rather than sales, to be given a chance to operate at high prices of $4-plus a pound.Read More: Copper and Iron Surge as Chinese Investors Unleash DemandThe initial royalty proposal, introduced in 2018 by opposition lawmakers, has gained momentum amid rallying metal prices and surging profits. It would fund regional development projects, responding to the rising social and environmental standards of investors and supply chains.Countries around the world are also looking at new revenue sources to help citizens recover from the pandemic. In Chile, efforts to feed state coffers are being intensified by a process to draft a new constitution after a spate of protests over social and economic inequalities in the months before the pandemic. Lawmakers have passed bills to allow Chileans to tap part of pension savings and are proposing a levy on the super rich and a minimum wage increase.“This is part of the array of bills intended to create and exacerbate hate among Chileans,” Luciano Cruz-Coke, a government-aligned lawmaker, said before the vote. “We won’t indulge the left by handing over copper to bad public policy and killing the country’s main source of income.”(Adds comment from BI mining analyst in ninth 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. Business Reuters 210506 12h53m UPDATE 1-Massachusetts sues Publicis over ties to Purdue Pharma, opioids Massachusetts sued a unit of French advertising company Publicis Groupe SA on Thursday, accusing it of fueling the U.S. opioid crisis by using unfair and deceptive marketing to help drugmaker Purdue Pharma sell more OxyContin. The state attorney general Maura Healey said Publicis Health created a public nuisance from 2010 to 2019 through its work for drugmakers on campaigns to persuade doctors to prescribe more opioids, including to patients who did not need them. Purdue alone paid Publicis more than $50 million for its work, which continued even after Publicis proposed in 2016 that Purdue shut down its sales force to "fully embrace a deeper-held responsibility" the drugmaker owed the public, Healey said. Business Bloomberg 210506 12h51m Marathon Oil Ditches Corporate Jets While Doubling Debt Cuts (Bloomberg) -- Marathon Oil Corp. is giving up its corporate aircraft as the shale driller escalates cost cuts.Just months after announcing plans to shrink his pay package by 25%, Chief Executive Officer Lee Tillman told analysts on Thursday that the company is ditching its aircraft program. Terminating aircraft leases cost Marathon $13 million during during the first three months of the year.Marathon is fielding offers for a Hawker 850XP at a time of robust demand and a shrinking pool of used corporate aircraft for sale, said Janine Iannarelli, founder of boutique jet broker Par Avion Ltd. Shale explorers are facing unprecedented pressure from investors to slash spending and return more profits to shareholders. To that end, Marathon on Wednesday doubled its 2021 debt-reduction target to at least $1 billion.Crowded PlanesMarathon’s other aircraft is leased, according to company spokeswoman Rebecca Skiba. In the past, Marathon has generally lumped aircraft obligations in with leases for drilling rigs, frack pumps and real estate.“We’re really seeing a run on inventory” of available planes, Iannarelli said. “For most makes, less than 10% of the installed base is for sale.” The pandemic has helped drive demand as commercial airlines scaled back routes and executives sought to avoid crowded spaces, she said.Marathon, the fourth-best performer in the S&P 500 this year, fell 3.6% to $11.285 at 2:39 p.m. in New York.(Updates with jet broker’s comments starting 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. Howell date : 210506 12h43m15s Business Reuters 210506 12h29m Texas federal judge hears arguments for date of Google trial A lawyer for 14 states led by Texas that have accused Alphabet's Google of breaking antitrust law asked a federal judge to schedule a trial for the spring of 2022, while the search and advertising giant has asked for a trial in the fall of 2023. In a pre-trial hearing on Thursday, Mark Lanier, arguing for Texas and the other states, said the burden was on them to prove the case against Google and that they could be ready quickly. "We're able to put focused people on this to make this their reason for living," Lanier told the judge. Business Yahoo Finance Video 210506 12h25m Hayward CEO on national chlorine shortage: ‘We have solutions to this scarcity’ Kevin Holleran, Hayward CEO, joins Yahoo Finance’s Kristin Myers and Alexis Christoforous to discuss Hayward’s earnings and outlook for commercial and residential pools. Business Yahoo Finance 210506 12h16m April jobs report preview: Economists look for 'monster US payroll number' as recovery charges ahead The U.S. economy likely brought back the most jobs since August last month, with payrolls jumping by 1 million and the unemployment rate edging lower as more businesses reopen. Business Bloomberg 210506 12h10m Copper and Iron Ore Surge as Chinese Investors Unleash Demand (Bloomberg) -- Spot iron ore broke $200 a ton for the first time, while copper approached a record high as Chinese investors unleashed fresh demand following a three-day holiday.The reopening of major industrial economies is sparking a surge across commodities markets from corn to lumber, with tin climbing above $30,000 a ton for the first time since 2011 on Thursday. In the wake of mounting evidence of inflation -- fueled by higher raw materials prices -- investors are also increasingly focused on when the U.S. Federal Reserve might start throttling back its emergency support.Many banks say the rally has further to run, particularly for copper, which will benefit from rising investment in new energy sectors. Copper is at the highest in a decade, fueling bets it will rally further to take out the record set in February 2011. Steel demand is surging as economies chart a path back to growth just as the world’s biggest miners have been hampered by operational issues, tightening ore supply.“The long-term prospects for metals prices are ‘too good’ and point to higher prices in the next few years,” said Commerzbank AG analyst Daniel Briesemann. “The decarbonization trends in many countries -- which include switching to electric vehicles and expanding wind and solar power -- are likely to generate additional demand for metals.”Trading house Trafigura Group and several major Wall Street banks including Goldman Sachs Group Inc. and Bank of America Corp. expect copper to extend gains.Copper for three-month delivery rose 1.4% to settle at $10,092 a ton on the London Metal Exchange.Benchmark spot iron ore prices rose to a record, while futures in Singapore and China climbed.The boom comes as China’s steelmakers keep output rates above 1 billion tons a year, despite a swath of production curbs aimed at reducing carbon emissions and reining in supply. Instead, those measures have boosted steel prices and profitability at mills, allowing them to better accommodate higher iron ore costs.Spot iron ore with 62% content hit $201.15 a ton on Thursday, according to Mysteel. Futures in Singapore jumped as much as 5.1% to $196.40 a ton, the highest since contracts were launched in 2013. In Dalian, prices closed 8.8% higher.Read more: Copper’s Surge Toward a Record High Is Hitting Chinese IndustryStill, some analysts including Commerzbank’s Briesemann expect a short-term correction as metals become detached from fundamentals. There’s also a risk that China could engage in policies that may cool demand for iron ore and copper.The metals rally has boosted concerns about short-term Chinese demand. Some manufacturers and end-users have been slowing production or pushing back delivery times after costs surged, while weaker-than-expected domestic consumption has opened the arbitrage window for exports.Tin climbed as much as 2% to $30,280 a ton on the LME, boosted by rising orders for the soldering metal. Tin is at the highest since May 2011, with a 48% gain this year making it the best-performing metal on the LME.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. Business Reuters 210506 12h08m UPDATE 1-With 8 mln Americans out of work, why are more companies not filling jobs? As the economy revs up to meet the rapacious demand of tens of millions of newly vaccinated Americans, employers say they cannot fill their yawning need for labor. Take Alex Washut. In January he mapped out hiring plans for his two breakfast and lunch eateries in western Massachusetts and figured he'd need to hire 20 new cooks, servers, dishwashers and other staff by May. He has doubled wages in some cases but has managed to hire only five; most of the time, he said, job candidates never even show for their interviews. World Bloomberg 210506 12h04m NYC Pitches Vaccine Tourism; India Breaks Records: Virus Update (Bloomberg) -- New York City is in talks to offer free vaccines to tourists as a way to encourage them to visit, Mayor Bill de Blasio said. Pfizer Inc. and BioNTech SE have capacity to make as many as 3 billion doses of their vaccine this year, more than double the amount the partners predicted six months ago.German Chancellor Angela Merkel weighed in against a U.S. proposal to waive patent protections for Covid-19 vaccines, casting doubt on whether the idea has enough international support to become a reality.India reported its highest-ever daily tally of 412,262 new virus cases and also a record 3,980 deaths. The governors of Tokyo and Osaka called for their virus emergencies to be extended, with Japanese Prime Minister Yoshihide Suga set to decide Friday.Key DevelopmentsGlobal Tracker: Cases near 155.4 million; deaths exceed 3.24 millionVaccine Tracker: More than 1.21 billion doses have been givenModerna Covid booster shots prove effective against variants (Video)Vaccines work on this India variant. Experts fret about the nextA new wave of vaccines is coming, and they’re not all also-ransBroken ventilators add momentum to ‘right to repair’ movementSubscribe to a daily update on the virus from Bloomberg’s Prognosis team here. Click CVID on the terminal for global data on cases and deaths.Alcohol Deaths in England, Wales Rise (1:43 p.m. NY)Deaths related to alcohol in England and Wales last year hit their highest level in two decades, according to data from the Office for National Statistics. The number rose by almost 20%, with deaths from alcoholic liver disease and poisoning accelerating after March, when virus lockdowns began.Colorado Reports India Variant (1:33 p.m. NY)Colorado’s highest Covid-19 transmission rate is among junior high school and high school students, ages 11-17, state epidemiologist Rachael Herlihy said Thursday.Colorado has recorded five cases of a B.1617.2 virus variant from India, all in Mesa County in the western part of the state, Herlihy said during an online briefing.Hospitalizations statewide are among the highest since December at 666, she said.Separately, Colorado Governor Jared Polis announced more than 2 million of the 4.7 state’s residents eligible for the vaccine have been fully vaccinated.Merkel Opposes Waiving Patents (11:55 a.m. NY)German Chancellor Angela Merkel weighed in against a U.S. proposal to waive patent protections for Covid-19 vaccines, casting doubt on whether the idea has enough international support to become a reality.The U.S. plan would create “severe complications” for the production of vaccines, a German government spokeswoman said Thursday in an email. Without the incentive of profits from research and development spending, drugmakers might not move as aggressively to make vaccines in the future, the industry has argued.“The limiting factor in the manufacture of vaccines is production capcity and the high quality standards, not the patents,” the spokeswoman said. “Protecting intellectual property is the wellspring of innovation and must remain that way.”NYC Pitches Vaccine Tourism (10:41 a.m. NY)New York Mayor Bill de Blasio said he is working with state officials to offer free vaccines to visitors as a way to encourage them to visit and spur tourism.Mobile vans will bring Johnson & Johnson one-dose shots to Times Square, Brooklyn Bridge Park and other popular locations, de Blasio said Thursday during a virus briefing.“We think this is a positive message to send to tourists,” the mayor said. “Come here and we’re going to take care of you.”The city plans a $30 million marketing blitz to recharge its tourism industry. Capacity restrictions on restaurants, stores and shows will be lifted on May 19 as Covid-19 cases decrease and vaccinations increase, Governor Andrew Cuomo said this week. Broadway tickets for September shows went on sale today.Pfizer Ups Production Target (10:38 a.m. NY)Pfizer Inc. and BioNTech SE have capacity to make as many as 3 billion doses of their Covid-19 vaccine this year, more than double the amount the partners had predicted less than six months ago.The partners will further increase their capacity for 2022 to more than 3 billion doses, BioNTech said in an e-mailed statement.The increase is the latest in a series of production target boosts and comes amid increased demand for messenger RNA Covid vaccines around the world.India Variant Spreads in Africa (10:31 a.m. NY)The coronavirus strain circulating in India has been detected in three African countries, according to the head of the Africa Centres for Disease Control and Prevention.Authorities in Kenya, Uganda and Morocco have reported the presence of the variant known as B.1.617 that is overwhelming the health system in India, Africa CDC’s director, John Nkengasong, said in an online briefing Thursday. Five cases have been found in Kenya and one in Uganda, while the Moroccan government is “investigating some cases there,” he said.Fearing an influx of infections and mindful of B.1.617, Nigeria, Kenya, Uganda and Tanzania are among countries that have temporarily banned flights from India.Rwanda Eyes Vaccine Plant (10:07 a.m. NY)Rwandan President Paul Kagame said his country is in talks to establish the first mRNA vaccine plant in Africa as the continent battles the coronavirus pandemic. He did not give details.Africa has few manufacturing facilities of any kind and most that do exist can only package and distribute the inoculations -- so called fill-finish facilities -- rather than make the ingredients needed for the shots.Vaccines Donated to Olympics (9:30 a.m. NY)Tokyo Olympic athletes and delegations will be able to receive Covid-19 vaccine doses donated by Pfizer Inc. and BioNTech SE as organizers push ahead with preparations for the delayed games.The International Olympic Committee signed an agreement with the companies to donate the doses, with the first delivery expected to begin at the end of this month, according to a statement from the drugmakers on Thursday. The statement did not specify the number of doses.Hungary’s Population Falls (9:15 a.m. NY)Hungary’s 2020 population drop, as measured by deaths exceeding births, was the biggest in more than a century with the eastern European Union one of the world’s worst-hit by the coronavirus pandemic.The plunge of 48,667 was the highest since 1918, when the Spanish flu and World War I were the biggest contributing factors, figures released Wednesday showed.Russia Approves One-Dose Shot (7:59 a.m. NY)Russia approved a single-dose version of the Sputnik V Covid-19 vaccine after it showed almost 80% efficacy, according to the state-run fund that backed its development.The 79.4% efficacy rate of the vaccine, called Sputnik Light, is based on an analysis of real-world data rather than a standard clinical trial, and interim results from final-stage study are expected later this month, according to a statement from the Russian Direct Investment Fund. Early and mid-stage studies showed no serious adverse events, RDIF said.U.S. Patent Shock Roils Pharma (7:21 a.m. NY)The U.S.’s sudden support for a waiver of patent protections for Covid-19 vaccines headed to the World Trade Organization, setting the stage for potentially thorny negotiations over sharing the proprietary know-how needed to boost global supplies of the life-saving shots.“In terms of how soon the WTO can deliver -- that literally depends on the WTO members, collectively, being able to deliver,” U.S. Trade Representative Katherine Tai said in an interview Wednesday. “I am the first one to admit that what we are leaning into is a process that is not going to be easy.”With the European Union and China signaling a willingness to take part in the debate after the Biden administration’s shock announcement, stock prices tumbled worldwide.Moderna Reported Effective for Teens (7:18 a.m. NY)Moderna Inc. said studies of its Covid vaccine in teenagers showed that it was 96% effective and raised its product sales projections for the year as it reported its first-ever profitable quarter.Germany Backs Lockdown Exemptions (7:17 a.m. NY)German residents who have been fully vaccinated against the coronavirus will be exempt from most lockdown rules under legislation approved Thursday in the lower house of parliament.The law, which also covers people who have recovered from Covid-19, is set to be voted on by the upper house on Friday and will likely take effect this weekend. For people considered immune, mandatory tests for trips to the hairdresser and non-essential stores will no longer be required, and the need to comply with curfews and quarantine rules will be waived.EU Defends Vaccination Drive (6:15 a.m. NY)The head of the European Union’s executive arm mounted a spirited defense of the bloc’s Covid-19 vaccination campaign, taking a swipe at countries like the U.S. and the U.K. as she hailed her region as the world’s top vaccines exporter.“It is clear that our European vaccination campaign is a success,” European Commission President Ursula von der Leyen told an online conference. “What counts is the steadily increasing daily delivery of vaccines to our people -- and to the world.”Biden’s Vaccine Path Gets Tougher (6 a.m. NY)President Joe Biden’s government is now giving an average of 2.13 million shots a day, down from 3.37 million about three weeks ago. And on Tuesday, which has the lowest shots of any day of the week, fewer than a million were given for the first time since February.In response, the administration announced this week that it would concentrate more on smaller clinics and mobile sites in rural areas, while planning to wind down mass-vaccination sites.Hungary Touts Pfizer to Buoy Campaign (5:28 p.m. HK)Hungary will make Pfizer and Moderna Covid shots widely available to the public as the nation seeks to keep up the pace of one of the European Union’s fastest vaccination campaigns.Authorities will make available as many as 180,000 vaccines from the two companies each week on an online vaccine registration platform, most of them from Pfizer, Cabinet Minister Gergely Gulyas said at a briefing on Thursday.Australia Clots Tied to Astra (2:25 p.m. HK)Five additional cases of a rare type of blood clot were identified in recipients of AstraZeneca Plc’s Covid-19 vaccine in Australia. All are receiving treatment, the company said in a statement Thursday. More cases of so-called thrombosis with thrombocytopenia are expected as the vaccine is offered to people older than 50 in Australia, said Katie Flanagan, president-elect of the Australasian Society for Infectious Diseases.Tokyo Emergency May Lengthen (2:06 p.m. HK)Japanese Prime Minister Yoshihide Suga said he would decide Friday on extending a state of emergency for Tokyo and three other regions, as he tries to stem a surge in Covid-19 infections ahead of the capital hosting the Olympics from July.Tokyo wants to extend a virus emergency currently in place and will soon seek approval for the move from Prime Minister Yoshihide Suga, in a bid to stem a surge in infections ahead of the capital hosting the Olympics from July.The major metro area of Osaka, where infection numbers have reached record highs in recent days, is also set to seek an extension, with Governor Hirofumi Yoshimura saying he has no other option.Sydney Imposes New Curbs (9:46 a.m. HK)Restrictions on gatherings are being imposed in Sydney and surrounding areas due to two Covid-19 cases detected in Australia’s most-populous city.From 5 p.m. Thursday, the maximum number of people allowed into homes will be 20, while singing and dancing in all indoor venues except those hosting weddings will be banned, New South Wales Premier Gladys Berejiklian told reporters. Masks will be compulsory on public transport and in all public indoor venues, such as retail, theaters, hospitals and aged-care facilities. The restrictions will last until at least the end of the weekend.Hong Kong Vaccinations Pass 1 Million (9:03 a.m. HK)The number of people who have received their first Covid-19 vaccine dose has exceeded 1 million on Wednesday, Hong Kong’s government said. The vaccination program has been running since Feb, 26.Still, only about 13.4% of the Hong Kong population has received at least one dose, according to Bloomberg’s Covid-19 Vaccine Tracker. That’s still well behind rival financial hubs like Singapore, London and New York.(An earlier version of this story corrected the name of the virus)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. Business Yahoo Finance 210506 12h01m Papa John's eats analysts' profit forecasts for lunch thanks to this epic new pizza It pays to be in the stuffed crust pizza game if you are Papa John's. Howell date : 210506 12h12m38s World Bloomberg 210506 12h03m NYC Pitches Vaccine Tourism; India Breaks Records: Virus Update (Bloomberg) -- New York City is in talks to offer free vaccines to tourists as a way to encourage them to visit, Mayor Bill de Blasio said. Pfizer Inc. and BioNTech SE have capacity to make as many as 3 billion doses of their vaccine this year, more than double the amount the partners predicted six months ago.German Chancellor Angela Merkel weighed in against a U.S. proposal to waive patent protections for Covid-19 vaccines, casting doubt on whether the idea has enough international support to become a reality.India reported its highest-ever daily tally of 412,262 new virus cases and also a record 3,980 deaths. The governors of Tokyo and Osaka called for their virus emergencies to be extended, with Japanese Prime Minister Yoshihide Suga set to decide Friday.Key DevelopmentsGlobal Tracker: Cases near 155.4 million; deaths exceed 3.24 millionVaccine Tracker: More than 1.21 billion doses have been givenModerna Covid booster shots prove effective against variants (Video)Vaccines work on this India variant. Experts fret about the nextA new wave of vaccines is coming, and they’re not all also-ransBroken ventilators add momentum to ‘right to repair’ movementSubscribe to a daily update on the virus from Bloomberg’s Prognosis team here. Click CVID on the terminal for global data on cases and deaths.Alcohol Deaths in England, Wales Rise (1:43 p.m. NY)Deaths related to alcohol in England and Wales last year hit their highest level in two decades, according to data from the Office for National Statistics. The number rose by almost 20%, with deaths from alcoholic liver disease and poisoning accelerating after March, when virus lockdowns began.Colorado Reports India Variant (1:33 p.m. NY)Colorado’s highest Covid-19 transmission rate is among junior high school and high school students, ages 11-17, state epidemiologist Rachael Herlihy said Thursday.Colorado has recorded five cases of a B.1617.2 virus variant from India, all in Mesa County in the western part of the state, Herlihy said during an online briefing.Hospitalizations statewide are among the highest since December at 666, she said.Separately, Colorado Governor Jared Polis announced more than 2 million of the 4.7 state’s residents eligible for the vaccine have been fully vaccinated.Merkel Opposes Waiving Patents (11:55 a.m. NY)German Chancellor Angela Merkel weighed in against a U.S. proposal to waive patent protections for Covid-19 vaccines, casting doubt on whether the idea has enough international support to become a reality.The U.S. plan would create “severe complications” for the production of vaccines, a German government spokeswoman said Thursday in an email. Without the incentive of profits from research and development spending, drugmakers might not move as aggressively to make vaccines in the future, the industry has argued.“The limiting factor in the manufacture of vaccines is production capcity and the high quality standards, not the patents,” the spokeswoman said. “Protecting intellectual property is the wellspring of innovation and must remain that way.”NYC Pitches Vaccine Tourism (10:41 a.m. NY)New York Mayor Bill de Blasio said he is working with state officials to offer free vaccines to visitors as a way to encourage them to visit and spur tourism.Mobile vans will bring Johnson & Johnson one-dose shots to Times Square, Brooklyn Bridge Park and other popular locations, de Blasio said Thursday during a virus briefing.“We think this is a positive message to send to tourists,” the mayor said. “Come here and we’re going to take care of you.”The city plans a $30 million marketing blitz to recharge its tourism industry. Capacity restrictions on restaurants, stores and shows will be lifted on May 19 as Covid-19 cases decrease and vaccinations increase, Governor Andrew Cuomo said this week. Broadway tickets for September shows went on sale today.Pfizer Ups Production Target (10:38 a.m. NY)Pfizer Inc. and BioNTech SE have capacity to make as many as 3 billion doses of their Covid-19 vaccine this year, more than double the amount the partners had predicted less than six months ago.The partners will further increase their capacity for 2022 to more than 3 billion doses, BioNTech said in an e-mailed statement.The increase is the latest in a series of production target boosts and comes amid increased demand for messenger RNA Covid vaccines around the world.India Variant Spreads in Africa (10:31 a.m. NY)The coronavirus strain circulating in India has been detected in three African countries, according to the head of the Africa Centres for Disease Control and Prevention.Authorities in Kenya, Uganda and Morocco have reported the presence of the variant known as B.1.617 that is overwhelming the health system in India, Africa CDC’s director, John Nkengasong, said in an online briefing Thursday. Five cases have been found in Kenya and one in Uganda, while the Moroccan government is “investigating some cases there,” he said.Fearing an influx of infections and mindful of B.1.617, Nigeria, Kenya, Uganda and Tanzania are among countries that have temporarily banned flights from India.Rwanda Eyes Vaccine Plant (10:07 a.m. NY)Rwandan President Paul Kagame said his country is in talks to establish the first mRNA vaccine plant in Africa as the continent battles the coronavirus pandemic. He did not give details.Africa has few manufacturing facilities of any kind and most that do exist can only package and distribute the inoculations -- so called fill-finish facilities -- rather than make the ingredients needed for the shots.Vaccines Donated to Olympics (9:30 a.m. NY)Tokyo Olympic athletes and delegations will be able to receive Covid-19 vaccine doses donated by Pfizer Inc. and BioNTech SE as organizers push ahead with preparations for the delayed games.The International Olympic Committee signed an agreement with the companies to donate the doses, with the first delivery expected to begin at the end of this month, according to a statement from the drugmakers on Thursday. The statement did not specify the number of doses.Hungary’s Population Falls (9:15 a.m. NY)Hungary’s 2020 population drop, as measured by deaths exceeding births, was the biggest in more than a century with the eastern European Union one of the world’s worst-hit by the coronavirus pandemic.The plunge of 48,667 was the highest since 1918, when the Spanish flu and World War I were the biggest contributing factors, figures released Wednesday showed.Russia Approves One-Dose Shot (7:59 a.m. NY)Russia approved a single-dose version of the Sputnik V Covid-19 vaccine after it showed almost 80% efficacy, according to the state-run fund that backed its development.The 79.4% efficacy rate of the vaccine, called Sputnik Light, is based on an analysis of real-world data rather than a standard clinical trial, and interim results from final-stage study are expected later this month, according to a statement from the Russian Direct Investment Fund. Early and mid-stage studies showed no serious adverse events, RDIF said.U.S. Patent Shock Roils Pharma (7:21 a.m. NY)The U.S.’s sudden support for a waiver of patent protections for Covid-19 vaccines headed to the World Trade Organization, setting the stage for potentially thorny negotiations over sharing the proprietary know-how needed to boost global supplies of the life-saving shots.“In terms of how soon the WTO can deliver -- that literally depends on the WTO members, collectively, being able to deliver,” U.S. Trade Representative Katherine Tai said in an interview Wednesday. “I am the first one to admit that what we are leaning into is a process that is not going to be easy.”With the European Union and China signaling a willingness to take part in the debate after the Biden administration’s shock announcement, stock prices tumbled worldwide.Moderna Reported Effective for Teens (7:18 a.m. NY)Moderna Inc. said studies of its Covid vaccine in teenagers showed that it was 96% effective and raised its product sales projections for the year as it reported its first-ever profitable quarter.Germany Backs Lockdown Exemptions (7:17 a.m. NY)German residents who have been fully vaccinated against the coronavirus will be exempt from most lockdown rules under legislation approved Thursday in the lower house of parliament.The law, which also covers people who have recovered from Covid-19, is set to be voted on by the upper house on Friday and will likely take effect this weekend. For people considered immune, mandatory tests for trips to the hairdresser and non-essential stores will no longer be required, and the need to comply with curfews and quarantine rules will be waived.EU Defends Vaccination Drive (6:15 a.m. NY)The head of the European Union’s executive arm mounted a spirited defense of the bloc’s Covid-19 vaccination campaign, taking a swipe at countries like the U.S. and the U.K. as she hailed her region as the world’s top vaccines exporter.“It is clear that our European vaccination campaign is a success,” European Commission President Ursula von der Leyen told an online conference. “What counts is the steadily increasing daily delivery of vaccines to our people -- and to the world.”Biden’s Vaccine Path Gets Tougher (6 a.m. NY)President Joe Biden’s government is now giving an average of 2.13 million shots a day, down from 3.37 million about three weeks ago. And on Tuesday, which has the lowest shots of any day of the week, fewer than a million were given for the first time since February.In response, the administration announced this week that it would concentrate more on smaller clinics and mobile sites in rural areas, while planning to wind down mass-vaccination sites.Hungary Touts Pfizer to Buoy Campaign (5:28 p.m. HK)Hungary will make Pfizer and Moderna Covid shots widely available to the public as the nation seeks to keep up the pace of one of the European Union’s fastest vaccination campaigns.Authorities will make available as many as 180,000 vaccines from the two companies each week on an online vaccine registration platform, most of them from Pfizer, Cabinet Minister Gergely Gulyas said at a briefing on Thursday.Australia Clots Tied to Astra (2:25 p.m. HK)Five additional cases of a rare type of blood clot were identified in recipients of AstraZeneca Plc’s Covid-19 vaccine in Australia. All are receiving treatment, the company said in a statement Thursday. More cases of so-called thrombosis with thrombocytopenia are expected as the vaccine is offered to people older than 50 in Australia, said Katie Flanagan, president-elect of the Australasian Society for Infectious Diseases.Tokyo Emergency May Lengthen (2:06 p.m. HK)Japanese Prime Minister Yoshihide Suga said he would decide Friday on extending a state of emergency for Tokyo and three other regions, as he tries to stem a surge in Covid-19 infections ahead of the capital hosting the Olympics from July.Tokyo wants to extend a virus emergency currently in place and will soon seek approval for the move from Prime Minister Yoshihide Suga, in a bid to stem a surge in infections ahead of the capital hosting the Olympics from July.The major metro area of Osaka, where infection numbers have reached record highs in recent days, is also set to seek an extension, with Governor Hirofumi Yoshimura saying he has no other option.Sydney Imposes New Curbs (9:46 a.m. HK)Restrictions on gatherings are being imposed in Sydney and surrounding areas due to two Covid-19 cases detected in Australia’s most-populous city.From 5 p.m. Thursday, the maximum number of people allowed into homes will be 20, while singing and dancing in all indoor venues except those hosting weddings will be banned, New South Wales Premier Gladys Berejiklian told reporters. Masks will be compulsory on public transport and in all public indoor venues, such as retail, theaters, hospitals and aged-care facilities. The restrictions will last until at least the end of the weekend.Hong Kong Vaccinations Pass 1 Million (9:03 a.m. HK)The number of people who have received their first Covid-19 vaccine dose has exceeded 1 million on Wednesday, Hong Kong’s government said. The vaccination program has been running since Feb, 26.Still, only about 13.4% of the Hong Kong population has received at least one dose, according to Bloomberg’s Covid-19 Vaccine Tracker. That’s still well behind rival financial hubs like Singapore, London and New York.(An earlier version of this story corrected the name of the virus)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. Business Yahoo Finance 210506 12h01m Papa John's eats analysts' profit forecasts for lunch thanks to this epic new pizza It pays to be in the stuffed crust pizza game if you are Papa John's. Business Reuters 210506 11h53m Massachusetts sues Publicis over ties to Purdue Pharma, opioids Massachusetts sued a unit of French advertising company Publicis Groupe SA on Thursday, accusing it of fueling the U.S. opioid epidemic by using unfair and deceptive marketing to help the drugmaker Purdue Pharma sell more OxyContin. The state's attorney general, Maura Healey, accused Publicis Health of working with drugmakers from 2010 to 2019 on campaigns to persuade doctors to prescribe more opioids for longer periods of time, including to patients who did not need them. She said Publicis collected more than $50 million from Purdue alone, including for efforts to "humanize" opioids and make doctors prescribe them to a wider pool of patients. Business Bloomberg 210506 11h42m Cable Firms Fear Being Left in Dust in Biden Broadband Quest (Bloomberg) -- The Biden administration’s multitrillion-dollar infrastructure proposal includes $100 billion to bring high-speed broadband to every American, an idea that might be expected to win applause from those who provide the service.But cable companies such as Comcast Corp. and Charter Communications Inc. that connect about two-thirds of U.S. homes that have broadband service fear the plan’s specific call for “future-proof” technology could leave them facing subsidized competitors.That’s because the traditional coaxial lines that cable companies still use to serve most of their subscribers don’t handle the upload speeds that consumer advocates say should be required to receive federal infrastructure aid. Many say subsidies should go only to systems that can download and upload traffic at speeds of at least 100 megabits per second.Cable can download at that speed but averaged only 11 megabits per second for uploads in 2019, according to a January report by the U.S. Federal Communications Commission. Carriers using fiber lines averaged 193.“Why do you want to spend the people’s money on an interim technology?” Tom Wheeler, a former Democratic FCC chairman, said in an interview. “We ought to be building it in a future-proof manner -- which means fiber.”Technology GapsCable systems that incorporate fiber can be part of the solution in coming years, and are to be preferred over technologies such as wireless broadband and satellite-based internet services, Wheeler said.At issue are potentially billions of dollars earmarked for closing the technology gaps revealed by the pandemic, where remote work and schooling were hampered by patchy internet speeds and access. Proposals to require lofty minimum speeds have already sparked a lively debate in Congress where investing in broadband is otherwise one of the less controversial elements of President Joe Biden’s infrastructure plan.The White House hasn’t defined the speed it wants. In announcing its “American Jobs Plan” on March 31 it called for bringing “affordable, reliable, high-speed broadband to every American.” It cited rural areas bereft of broadband, and urban areas where some shun broadband because of high prices. It flatly said: “Americans pay too much for the internet” and pledged to work for reduced prices.Congress will ultimately decide whether to tie aid to the higher speeds. Four U.S. senators, including two Republicans, an independent and Democrat Joe Manchin, of West Virginia, earlier this year wrote to Biden administration officials in support of a 100/100 standard.“There is no reason federal funding to rural areas should not support the type of speeds used by households in typical well-served urban and suburban areas,” the senators said in their March 4 letter.The idea has drawn opposition from Republicans, though, including Ohio Representative Bill Johnson who said it could lead to subsidies in areas that already have broadband, while rural areas wait. “That sounds like the exact opposite of what needs to happen,” he said at a March 22 hearing.The congressional focus on broadband continued on Thursday with a House hearing on unequal access to the technology.‘Digital Divide’“There is a digital divide between races and ethnicities,” Democratic Representative Frank Pallone of New Jersey, chairman of the Energy & Commerce Committee, said at the hearing before his panel. “While 80% of White households have broadband access, that is true of only 70% of Black households and 65% of Hispanic households.”Representative Cathy McMorris Rodgers, a Washington Republican, criticized Democratic proposals that she characterized as creating “arbitrary speed thresholds that favor fiber-only projects with no restrictions to prevent overbuilding in areas where broadband already exists.”Cable providers say it doesn’t make sense to demand very fast uploads, since most home broadband traffic consists of video downloads where their download speeds often exceed 100 megabits. Rather than subsidizing new ultra-fast networks in areas already served by cable systems, the government should focus on areas without broadband, they argue.Federal money should go to places with “no broadband, or very little broadband, or really inadequate broadband,” Michael Powell, president of the trade group NCTA-The Internet & Television Association, said last month on the C-Span network program “The Communicators.” The group’s members include the biggest cable provider, Comcast, and No. 2 Charter.The current broadband benchmark established by the FCC is 25/3 -- 25 megabits per second download, and 3 megabits per second for uploads. About 20 million Americans lack access to such service, according to the FCC.If the 100/100 standard is adopted for determining what areas are eligible for subsidies, federal broadband-construction aid could flow to areas with fast downloads but that lack speedy uploads. Funds could subsidize competition where established cable providers such as Comcast and Charter operate. Under a bill proposed in March by Democrats and that could be the basis for eventual infrastructure legislation, that would happen only after money first flows to areas with no broadband or very poor service.Shares in Comcast and Charter slipped in the days after Biden’s plan was announced but have since recovered that ground and more as each company reported earnings. Comcast said it signed up 461,000 new broadband subscribers in the first quarter, and Charter announced 355,000 new internet subscribers, surpassing analysts’ expectations.Consumer ComplaintsNeither company publicly discloses how many of its customers are served by fiber to their doorstep. About 16% of cable subscribers are connected with fiber optic lines, according to research by Cowen & Co.Jon Peha, an engineering professor at Carnegie Mellon University in Pittsburgh, said complaints about upload speeds soared during the pandemic.“Upstream is critical if you’re working or taking classes from home,” Peha said in an email. “We found that after the pandemic hit, downstream speed stayed about the same but upstream speed was significantly degraded, and consumer complaints about speed tripled.”FCC Commissioner Brendan Carr, a Republican, said the proposed faster standard could have perverse results, with money flowing into already-well-wired cities.“You’re going to seriously dump taxpayer money on top of that?” Carr said in an interview. “When we have many areas with zero connections, that seems like a mistake.”The 100/100 mandate could spur cable providers to offer higher speeds, said Gigi Sohn, a former Democratic FCC aide who’s now a distinguished fellow at the Georgetown Law Institute for Technology Law & Policy.“It incentivizes them to up their game,” Sohn said in an interview. “You’re seeing that with Charter, Comcast and Altice -- the three biggest cable operators.”Cable’s FiberComcast President David Watson told investors April 29 that symmetric service -- the same speeds up and down -- “is a focus” for the company. Charter in February said it would spend $5 billion on a new fiber optic network to serve mostly rural areas as part of an FCC subsidy program. Altice USA Inc. Chief Executive Officer Dexter Goei on April 28 told investors the company, with 4.4 million customers, has surpassed 1 million fiber-to-the-home connections and is building more.“Customers are increasingly appreciating higher upload speeds,” Goei said.The push for higher speeds is coming from a White House with cable critics in key policy roles. National Economic Council Deputy Director Bharat Ramamurti led a team for Democratic Senator Elizabeth Warren that criticized Comcast as a “market-dominant” company. Special assistant Tim Wu has long said cable prices are too high, and he helped New York assemble a lawsuit that accused Charter of ripping off customers with promises of faster internet speeds than the company knew it could deliver. Charter agreed to pay $174 million to settle the claims.Even Vice President Kamala Harris, who Biden has asked to lead the broadband effort, oversaw cases against Comcast when she served as California’s attorney general.“The administration might view the infrastructure bill as a once-in-a-lifetime opportunity to build competition in that market,” Paul Gallant, a Washington-based analyst with Cowen & Co., said in an interview. “Is this a paradigm shift?”(Updates with congressional hearing testimony beginning in 12th 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. Business Yahoo Finance 210506 11h41m Why Froot Loops, Corn Pops and Apple Jacks are in short supply Yahoo Finance chats with Kellogg's CEO Steve Cahillane about the ongoing strong demand for packaged food during the COVID-19 pandemic. Business Reuters 210506 11h39m U.S. listing ban on Luokung lifted after judge's decision Nasdaq Inc has withdrawn a decision to delist the shares of Luokung Technology Corp, the Chinese mapping technology company said on Thursday, after a U.S. judge suspended an imminent investment ban imposed under the Trump administration. Luokung issued a news release on Thursday saying Nasdaq notified the company it has withdrawn its delisting letter and shares would continue to trade on the market, not be suspended on May 7. A Nasdaq spokesman declined to comment. Howell date : 210506 11h42m02s Business Yahoo Finance Video 210506 11h31m ‘Inflation is generally accepted by stock market buyers’: Portfolio Manager George Young, Portfolio Manager with Villere & Co, joins Yahoo Finance’s Kristin Myers and Alexis Christoforous to discuss the outlook on the market amid economic recovery. Business Yahoo Finance 210506 11h24m US job advertisements up in April 60 percent over pre-pandemic levels - hiring outlook strong but finding workers is challenging The number of job advertisements continued to grow throughout April, averaging over 59 percent higher levels compared to pre-pandemic levels in early 2020, according to labor market intelligence firm Greenwich.HR. And while demand for new employees has been at the highest levels since 2018, unemployment claims continue only modest declines, suggesting employers at newly-reopened businesses are finding it tough to attract the workers they need. Business Bloomberg 210506 11h19m Vaccine Stocks Pare Declines as Merkel Opposes Patent Waiver (Bloomberg) -- Shares of Covid-19 vaccine developers pared an earlier slump after German Chancellor Angela Merkel rejected a U.S. proposal to waive patent protections for coronavirus shots.Pfizer Inc., BioNTech SE, Novavax Inc. and CureVac NV fell sharply earlier on news the U.S. supported discussions for a waiver of the rights tp develop vaccines. The Biden administration’s plan would create “severe complications” for the production of vaccines, a German government spokeswoman said Thursday in an email.Pfizer reversed a bulk of its decline to trade 2.7% lower as of 1:12 p.m. in New York and BioNTech, which tumbled as much as 15% earlier, was down 1.6% after Germany’s announcement. Moderna Inc. reversed it’s steepest decline since Feb. 23 to trade 1.3% lower. NovaVax was less than 1% lower and CureVac erased almost half of its drop.Some analysts had urged for caution to the news prior to Merkel’s announcement. The Biden administration’s plans will only open up a negotiation at the WTO and other countries and members remain unwilling, said Barclays analyst Carter Gould in a note.For Evercore ISI analyst Umer Raffat, U.S. support didn’t mean it was a “100% done deal” as other countries are also opposed. It “remains to be seen if U.S. leadership’s position sways others,” Raffat wrote in a note.U.S. support for a proposal to waive intellectual-property protections for Covid-19 vaccines might be good news for the global inoculation campaign, but it’s an unwelcome turn for firms whose share prices have been buoyed by profits from coronavirus shots.With many countries struggling with a resurgence of the virus, U.S. Trade Representative Katherine Tai said Wednesday the Biden administration will take part in negotiations for the text of a waiver of the rights at the World Trade Organization. The European Union said Thursday it was willing to participate.Across Asia, stocks linked to vaccine makers sank in Thursday trading.Shanghai Fosun Pharmaceutical Group Co., which has the rights to develop and market BioNTech’s shot in China, plunged 14% in Hong Kong, the most ever. CanSino Biologics Inc., which makes one of China’s domestic vaccines, tanked 15%. In Japan, JCR Pharmaceuticals Co., a local partner for AstraZeneca Plc’s vaccine, slid 1.4%.Big BusinessVaccines have been a big business for the firms that make them, with Pfizer, BioNTech’s partner outside of China, raising its forecast for 2021 vaccine sales to $26 billion just this week. Shares of many of the U.S.-listed companies had fallen late in Wednesday’s regular trading session after Tai’s comments.Read more: Analysts say investor fears of U.S. vaccine waiver support are overblownThe U.S. move “probably isn’t great news for the vaccine manufacturers who will now face generic copies of their vaccine, but as the mutation of the virus has shown, continued research and innovation will be needed and that should provide those companies with future earnings from newer vaccines so I would expect the impact to be short-lived and possibly limited,” said Olivier d’Assier, head of APAC applied research at Qontigo GmbH.The International Federation of Pharmaceutical Manufacturers & Associations condemned the move as “disappointing.”“A waiver is the simple but the wrong answer to what is a complex problem,” the group said in a statement. “Waiving patents of Covid-19 vaccines will not increase production nor provide practical solutions needed to battle this global health crisis.”(Updates U.S. stock moves in the 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. World Bloomberg 210506 11h16m Italy to Drop Backing of Telecom Italia Single Network (Bloomberg) -- Italian Prime Minister Mario Draghi has abandoned a project backed by his predecessor to create a single national fiber network controlled by Telecom Italia SpA, in a bid to boost competition among carriers and employ a wider set of technologies including 5G services.The government’s project to improve the country’s digital services will be structured around competitive tenders in multiple areas and will be designed to grant wholesale access to third parties, a senior government official said.Italy’s recovery plan earmarks 6.7 billion euros ($8 billion) to boost investment in ultra-wide broadband to achieve universal coverage across the entire country, the official added, asking not be named discussing the plan.Following a European Union request for the government to foster competition as it allocates funds from the bloc’s recovery plan, Rome will no longer support Telecom Italia’s plan to combine its landline assets with networks run by state-owned rival Open Fiber SpA, said several people familiar with the matter. The Telecom Italia proposal would have kept the combined new operator under the ex-monopolist’s control.No ReversalThe Draghi government is intent on halting any project that would reverse two decades of deregulation and in effect allow Telecom Italia to kill off a competitor, albeit one under state control, the people said, asking not to be named discussing confidential deliberations. The government’s plan would represent opposition to a return to a monopoly in the phone industry, the people said.Telecom Italia shares tumbled as much as 9.2%, and traded down 6.3% at 1:52 p.m. in Milan. The government coming out against the network plan would significantly damage hopes for a merger of the company’s FiberCop network with Open Fiber, Berenberg analyst Carl Murdock-Smith wrote in a note.Documentation on the recovery plan sent by Draghi’s government to the EU backs the Italian position, daily la Repubblica reported Thursday.Telecom said in a statement late Thursday that such an interpretation of Italy’s recovery plan is “entirely inappropriate and unsubstantiated,” and it will file a complaint with market regulator Consob. Any deal is “exclusively subject to the will of the companies involved and their shareholders,” the company added.Innovation MinisterInnovation Minister Vittorio Colao, a former chief executive officer at wireless carrier Vodafone Group PLC, also told Repubblica recently the government is committed to assuring “equity of access to fast internet connections and fair and open competition.” The state should be “an arbiter rather than a player” in the process, he said.The government aims to adopt a technology-neutral approach, encompassing fiber deployment as well as fixed wireless access, or FWA, and 5G, the government official said, asking not to be named discussing confidential matters.Italy has also moved to tighten its grip over Open Fiber, originally a joint venture between Enel SpA, the country’s biggest utility, and state-backed lender Cassa Depositi e Prestiti SpA.Cassa Depositi last week gained control of Open Fiber by buying an additional 10% from Enel, and now plans to accelerate its fiber roll-out and inject about 250 million euros ($300 million) into the company through a capital increase, according to people familiar with the matter.Representatives for the government, Telecom Italia and Open Fiber earlier declined to comment for this story.Rural AreasThe revised plan would see Open Fiber accelerate its internet services roll-out in rural areas, with the government encouraging competition for services in urban regions. Rome would also look to foster co-investment projects relying not just on fiber but also on ultra-fast mobile services such as 5G, the people said.The government acknowledged recently that Italy lags behind European peers in “digital adoption and technological innovation,” particularly in rural areas, while the country ranks near the bottom among EU states in adopting new technologies.“To boost the country’s broadband roll-out, the European Commission could leverage on wholesale-only carriers such as Open Fiber or Telecom Italia’s FiberCop, as they provide ultra-broadband services for all players granting equal access,” said Laura Rovizzi, chief executive at Open Gate Italia, a Rome-based strategy and regulation consultant that specializes in telecommunications. A clear commitment to an open playing field for digital services could also ease access to recovery plan funds, she said.Conte PlanTelecom Italia Chief Executive Officer Luigi Gubitosi, with the backing of the previous government led by Giuseppe Conte, had pushed for an Open Fiber deal for months, insisting his company wouldn’t cede control of the proposed merged network.That plan was the result of long negotiations between the Conte government, Telecom Italia and Cassa Depositi, which owns nearly 10% of Telecom Italia and controls Open Fiber. Conte resigned in late January and was replaced by Draghi the following month.Telecom Italia last year agreed to sell 37.5% of its land-line cables running from the street to premises -- the so-called secondary network -- to the infrastructure unit of investment firm KKR & Co. for 1.8 billion euros. Swisscom AG’s Fastweb SpA will hold 4.5% of the new network company, dubbed FiberCop, which will be a direct competitor of Open Fiber.(Updates with Telecom Italia 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. Politics Reuters 210506 11h09m UPDATE 1-Biden decided to support IP waiver for vaccines -White House U.S. President Joe Biden made the decision to back a proposed waiver for COVID-19 vaccine intellectual property rights, the White House said on Thursday, denying that administration officials had been split on the issue. "He made this decision," White House deputy press secretary Karine Jean-Pierre said, told reporters aboard Air Force One. Asked if Commerce Secretary Gina Raimondo and other officials opposed the waiver, which has been widely criticized by U.S. pharmaceutical companies, Jean-Pierre said: "There was no split in this decision." Business Reuters 210506 11h08m Top U.S. fund leader wants voluntary climate disclosure rules A top fund industry leader on Thursday urged U.S. regulators to adopt only voluntary climate-related disclosure standards for public companies rather than the stricter rules sought by some activists and investment firms. Eric Pan, CEO of the Investment Company Institute, which represents asset managers and other big U.S. investors, said the softer approach would give companies time to adjust to new technologies and scientific evidence, according to prepared remarks of a speech he was set to give at his trade group's virtual conference on Thursday. Pan said companies should "not be hampered by prescriptive, 'hard-wired' disclosure requirements - which would be nearly impossible to set today to successfully govern disclosure between now and 2050," the date set by U.S. President Joe Biden for the nation to reach net-zero emissions. Business Bloomberg 210506 11h05m Norwegian Cruise CEO Rules Out July U.S. Start; Shares Drop (Bloomberg) -- Norwegian Cruise Line Holdings Ltd. Chief Executive Officer Frank Del Rio said July sailings from the U.S. are no longer possible, given the time it takes to get a ship ready to sail.“The July U.S. launch, at least for our company, is just not possible,” Del Rio said, speaking on a quarterly call with analysts.He didn’t give a specific timeline, but the industry generally has said that it needs 90 days to prepare a ship.Norwegian shares fell as much as 6.8% to $27.81 in New York trading after the comments. Industry leader Carnival Corp. was down as much as 3.8%, and Royal Caribbean Cruises Ltd. shed as much as 4.8%.Del Rio’s comments come a day after the U.S. Centers for Disease Control and Prevention outlined new rules for returning to the seas.Speculation had been mounting about a July return after President Joe Biden projected the country could resume a semblance of normalcy by Independence Day. On the back of Biden’s announcement in March, the industry started actively lobbying the U.S. government to roll back restrictions on cruising, which the companies say are the most burdensome on any U.S. tourism business.Norwegian and its peers have found halting progress in their efforts.New rules outlined Wednesday create two parallel paths for cruise companies to return to U.S. waters. They can start paying cruises up again with certain limitations, provided 95% of passengers and 98% of crew are vaccinated. If they don’t meet the vaccination requirement, they can run simulated cruises with nonpaying volunteers for each ship in their fleet, essentially proving the safety of their vessels.100% VaccinationDel Rio said Norwegian would be opting for the first option, adding that the cruise company would demand 100% vaccination -- even more than the CDC requirement.But Del Rio said he was disappointed in the rules “at first read” and found them onerous. As an example, Del Rio complained about a guideline that states that while temporary mask removal is acceptable while eating or drinking, facial coverings cannot stay off for “extended meal service or beverage consumption.”“Nobody should order soup, because your mask might get sloppy,” Del Rio said. “So that to me is just preposterous; it’s not in the spirit of where the country is heading.”Cruise companies continued to set sail in the first two weeks of March 2020, even after Covid-19 had begun to strain global hospital systems and batter stock markets, and after the U.S. State Department had warned citizens against traveling on the vessels. The companies suspended U.S. sailings in the middle of that month as the pandemic took hold in earnest.(Updates with CEO’s comments in 10th 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. Howell date : 210506 11h11m24s Business Reuters 210506 11h07m UPDATE 1-Leonardo says still keen to list DRS unit as Q1 core profits jump Italian defence group Leonardo said on Thursday it still plans to list its U.S. unit DRS after reporting a 132% jump in first-quarter core profit. In particular, Leonardo's aerostructures division, which produces parts of aircraft for Boeing and Airbus , recorded a fall in volumes and a consequent failure to absorb fixed costs that led to a decline in results compared to the first quarter of 2020. "Our solid capital structure will be maintained also through disposals and the listing of (the group's U.S. unit) DRS," CEO Alessandro Profumo said in a statement. Business Bloomberg 210506 11h05m Norwegian Cruise CEO Rules Out July U.S. Start; Shares Drop (Bloomberg) -- Norwegian Cruise Line Holdings Ltd. Chief Executive Officer Frank Del Rio said July sailings from the U.S. are no longer possible, given the time it takes to get a ship ready to sail.“The July U.S. launch, at least for our company, is just not possible,” Del Rio said, speaking on a quarterly call with analysts.He didn’t give a specific timeline, but the industry generally has said that it needs 90 days to prepare a ship.Norwegian shares fell as much as 6.8% to $27.81 in New York trading after the comments. Industry leader Carnival Corp. was down as much as 3.8%, and Royal Caribbean Cruises Ltd. shed as much as 4.8%.Del Rio’s comments come a day after the U.S. Centers for Disease Control and Prevention outlined new rules for returning to the seas.Speculation had been mounting about a July return after President Joe Biden projected the country could resume a semblance of normalcy by Independence Day. On the back of Biden’s announcement in March, the industry started actively lobbying the U.S. government to roll back restrictions on cruising, which the companies say are the most burdensome on any U.S. tourism business.Norwegian and its peers have found halting progress in their efforts.New rules outlined Wednesday create two parallel paths for cruise companies to return to U.S. waters. They can start paying cruises up again with certain limitations, provided 95% of passengers and 98% of crew are vaccinated. If they don’t meet the vaccination requirement, they can run simulated cruises with nonpaying volunteers for each ship in their fleet, essentially proving the safety of their vessels.100% VaccinationDel Rio said Norwegian would be opting for the first option, adding that the cruise company would demand 100% vaccination -- even more than the CDC requirement.But Del Rio said he was disappointed in the rules “at first read” and found them onerous. As an example, Del Rio complained about a guideline that states that while temporary mask removal is acceptable while eating or drinking, facial coverings cannot stay off for “extended meal service or beverage consumption.”“Nobody should order soup, because your mask might get sloppy,” Del Rio said. “So that to me is just preposterous; it’s not in the spirit of where the country is heading.”Cruise companies continued to set sail in the first two weeks of March 2020, even after Covid-19 had begun to strain global hospital systems and batter stock markets, and after the U.S. State Department had warned citizens against traveling on the vessels. The companies suspended U.S. sailings in the middle of that month as the pandemic took hold in earnest.(Updates with CEO’s comments in 10th 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. Business Bloomberg 210506 11h00m Brazilian Real Extends Gains After ‘Sharp’ Rate Hike Pledge (Bloomberg) -- Discover what’s driving the global economy and what it means for policy makers, businesses, investors and you with The New Economy Daily. Sign up hereThe Brazilian real advanced after the central bank lifted its benchmark rate by 75 basis points and promised another hike of the same size next month in a renewed push to bring inflation back to target.The currency was up 1.3% to 5.2853 per dollar as of 12:43 p.m. in New York, among the best performers in emerging markets. The real leads gains among major currencies in the past month, up 5.9% amid rising commodity prices, and analysts say the central bank decision opens room for more gains.Officials on Wednesday raised the Selic to 3.5%, in line with estimates from all economists in a Bloomberg survey and the guidance given by policy makers at their prior meeting in March. If it makes good on its promise, the bank will have raised borrowing costs by 225 basis points to 4.25% by June.“This more hawkish statement should bring short-term strength to the BRL,” Rabobank economists Mauricio Une and Gabriel Santos wrote in a note. “We had thought they would not signal the following step hike now.” They expect the central bank to raise rates to 5.5% by the end of the year and to 6.5% in 2022.The bank, led by its President Roberto Campos Neto, is acting to rein in inflation that’s surged above the target ceiling to a four-year high. Food and fuel costs have jumped in recent months, and the government recently restarted emergency aid that will firm up demand. Put together, analysts see consumer prices above target this year and next amid an incipient recovery.What Bloomberg Economics Says“The central bank tried to reach a compromise: it promised another sharp rate hike of 75 basis points in the next meeting, but warned that it is not ready yet to fully normalize monetary policy. Despite acknowledging the decline in underlying inflation and mentioning -- for the first time ever -- its dual mandate, we believe that the overall tone of the statement was somewhat hawkish.”--Adriana Dupita, Latin America economistClick here for the full reportReal Has Scope to Gain After BCB’s Hiking Signal: Inside Brazil“They are continuing the hawkish tilt,” said Sacha Tihanyi, head of emerging market strategy at TD Securities in Toronto. “Hike aggressively sooner, and then create some breathing space for the real.”The central bank also reinforced that a “partial normalization of the policy rate remains appropriate to keep some degree of monetary stimulus during the economic recovery.”That suggests they don’t see the key rate climbing in this cycle to a neutral level that’s commonly pegged around 5.5%-6.5%.“However, the Committee emphasizes that there is no commitment with this plan, and that future steps of monetary policy could be adjusted to assure the achievement of the inflation target,” officials wrote in the statement.The swap rates curve fell 4 to 8 basis points, flattening after a low volatility open. Traders held onto their bets that the central bank will raise rates by another 275 basis points by the end of the year, which would take the benchmark to 6.25%. BNP Paribas on Thursday revised its forecast for the Selic to 6.5% from 5% saying rising inflation will lead officials to raise rates by more than expected.Nearing 8%For the first time, policy makers mentioned their secondary mandate of fostering full employment, introduced in the same law that gave the bank its long-sought formal autonomy earlier this year. Yet they offered a positive outlook, saying recent economic indicators have been better than expected despite the pandemic, and predicting uncertainties over growth to gradually return to normal.Last month, President Jair Bolsonaro’s administration started paying out another round of monthly stipends at a total cost of 44 billion reais ($8.2 billion). Lawmakers have recently indicated they will seek an extension of that aid if the government does not accelerate plans for a new social program as the coronavirus continues to spread through the country.Read More: Brazil’s Budget Foreshadows Another Year of Massive SpendingConsumer prices rose 6.17% in the year through mid-April, and many economists see that reading approaching 8% in May. The central bank targets annual inflation at 3.75% this year, with a tolerance range of plus or minus 1.5 percentage points.In their statement, policy makers wrote various measures of underlying inflation are already at the top of the range compatible with hitting their target. Complicating matters, commodity prices continue to increase, and higher energy costs are pressuring prices in the short-term.“The central bank is signaling it plans to get to a 5% Selic in 75-basis point hikes, though it leaves the space to change its mind,” said David Beker, chief Brazil economist at Bank of America Corp.(Updates asset performance in second and 10th paragraphs, adds analyst comment 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. Business Bloomberg 210506 10h59m Tech Leads Advance in Stocks; Dollar Declines: Markets Wrap (Bloomberg) -- Stocks climbed as data showing the world’s largest economy is strengthening overshadowed inflation worries. Gold and silver rallied, while the dollar retreated.Most major groups in the S&P 500 rose while the Dow Jones Industrial Average hit an all-time high. The tech-heavy Nasdaq 100 outperformed major equity benchmarks. Shares of vaccine makers trimmed declines as German Chancellor Angela Merkel weighed in against a U.S. proposal to waive patent protections for Covid-19 shots. PayPal Holdings Inc. jumped as its results topped estimates.Applications for U.S. state unemployment insurance fell last week to a fresh pandemic low as labor market conditions continued to improve and the economy reopened more broadly. Traders are now awaiting Friday’s employment report, which is expected to show the U.S. added about 1 million jobs in April -- a sign that fewer business restrictions are bringing more Americans back to work.“With jobless claims hitting a pandemic-era low, anticipation for the full jobs picture tomorrow mounts,” said Mike Loewengart, managing director of investment strategy at E*Trade Financial. “Today’s read is another proof point that we’re one step closer to full economic recovery. As we see some serious momentum building on the jobs front, all eyes will be on how this plays into action taken by the Fed.”After closing at a fresh high on Wednesday, the Dow Jones Transportation Average -- considered a barometer of economy activity -- surged 25% above its 200-day moving average. The move could be “perceived as indicative of strength likely to continue in the broader equity market,” said Bloomberg Intelligence’s Gina Martin Adams.These are the main moves in markets:StocksThe S&P 500 rose 0.3% as of 12:58 p.m. New York timeThe Nasdaq 100 rose 0.5%The Dow Jones Industrial Average rose 0.5%The MSCI World index rose 0.4%CurrenciesThe Bloomberg Dollar Spot Index fell 0.3%The euro rose 0.4% to $1.2049The British pound fell 0.1% to $1.3886The Japanese yen was little changed at 109.11 per dollarBondsThe yield on 10-year Treasuries was little changed at 1.57%Germany’s 10-year yield was little changed at -0.23%Britain’s 10-year yield declined three basis points to 0.79%CommoditiesWest Texas Intermediate crude fell 1.1% to $65 a barrelGold futures rose 1.8% to $1,816 an ounceFor 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. Business Yahoo Finance Video 210506 10h58m Sunrun jumps on Q1 revenue beat Tom vonReichbauer, Sunrun CFO joins the Yahoo Finance Live panel with the latest on their Q1 earnings report. World Reuters 210506 10h52m Violence continues at some Colombia protests, capital calmer Protests in Colombia headed into their ninth day on Thursday as local authorities in the small city of Pereira offered a reward for information after three people were shot in connection with overnight demonstrations. The protests were originally called in opposition to a now-canceled tax reform plan, but demonstrators have since broadened their demands to include government action to tackle poverty, police violence and inequality in the health and education systems. Marches around the country have been marred by violence and 24 people have died, mostly demonstrators. Business Bloomberg 210506 10h52m Oil Slips With Uneven Global Rebound in Demand Tempering Rally (Bloomberg) -- Oil declined as the coronavirus crisis in India and the slowing pace of a rebound in U.S. gasoline consumption highlighted the uneven nature of a global demand recovery.Futures in New York fell as much as 1.7% on Thursday after a run-up toward a nearly two-month intraday high during the prior session. While signs of rising oil consumption have put prices on track for a weekly gain, the Covid-19 crisis in major crude importer India is a prominent headwind for further gains. The South Asian country reported its highest daily tally of new virus cases.“What’s keeping the market from going higher are these Covid-19 issues in several countries along with not quite enough of a demand rebound here in the U.S., to juice prices toward that $70-a-barrel mark,” said John Kilduff, founding partner at Again Capital LLC.Despite near-term concerns, oil has rallied more than 30% so far this year as key economies including the U.S. and China rebound from the impact of the pandemic, fanning energy demand. Spain’s Cepsa is restarting a processing unit that was previously idled, while U.S. refineries are running at five-year average levels for the first time since the pandemic began. The strength in crude forms part of a broad advance in raw materials, with the Bloomberg Commodity Spot Index surging to the highest level in almost a decade.“Oil prices failed to break year-to-date highs as a wide array of uncertainty prompted trades to take profits,” TD Securities commodity strategists led by Bart Melek said in a note. “As the world begins to exit from the pandemic, expectations are set to firm for an extraordinary recovery in energy demand on the horizon.”Elsewhere, Japan plans to extend a a state of emergency brought on by Covid until the end of the month, local media reported. The country’s capital, Tokyo, had wanted to extend it in a bid to stem a surge in infections ahead of hosting the Olympics from July.Beyond headline crude prices, the market’s underlying structure has weakened in recent sessions. The backwardation between Brent’s two nearest contracts -- which signals tightening supplies -- has narrowed since the end of last week. The backwardation in WTI’s so-called prompt spread has also softened compared to last Friday.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. Howell date : 210506 10h40m48s Howell date : 210506 10h10m11s Business Reuters 210506 10h04m COLUMN-U.S. petroleum stockpiles normalise after pandemic surge: Kemp U.S. petroleum inventories have returned to normal after ballooning during the Saudi-Russian volume war and first wave of the coronavirus epidemic last year. Total stocks of crude oil and refined products outside the Strategic Petroleum Reserve last week were just 17 million barrels, or 1.4%, above the pre-epidemic five-year average for 2015-2019. Surpluses in crude (75 million barrels) and products (101 million barrels) have shrunk since peaking at the end of June last year (“Weekly petroleum status report”, U.S. Energy Information Administration, May 5). World Bloomberg 210506 10h03m NYC Pitches Vaccine Tourism; India Breaks Records: Virus Update (Bloomberg) -- New York City is in talks to offer free vaccines to tourists as a way to encourage them to visit, Mayor Bill de Blasio said. Pfizer Inc. and BioNTech SE have capacity to make as many as 3 billion doses of their vaccine this year, more than double the amount the partners predicted six months ago.German Chancellor Angela Merkel weighed in against a U.S. proposal to waive patent protections for Covid-19 vaccines, casting doubt on whether the idea has enough international support to become a reality.India reported its highest-ever daily tally of 412,262 new virus cases and also a record 3,980 deaths. The governors of Tokyo and Osaka called for their virus emergencies to be extended, with Japanese Prime Minister Yoshihide Suga set to decide Friday.Key DevelopmentsGlobal Tracker: Cases near 155.3 million; deaths exceed 3.24 millionVaccine Tracker: More than 1.21 billion doses have been givenModerna Covid booster shots prove effective against variants (Video)Vaccines work on this India variant. Experts fret about the nextA new wave of vaccines is coming, and they’re not all also-ransBroken ventilators add momentum to ‘right to repair’ movementSubscribe to a daily update on the virus from Bloomberg’s Prognosis team here. Click CVID on the terminal for global data on cases and deaths.Merkel Opposes Waiving Patents (11:55 a.m. NY)German Chancellor Angela Merkel weighed in against a U.S. proposal to waive patent protections for Covid-19 vaccines, casting doubt on whether the idea has enough international support to become a reality.The U.S. plan would create “severe complications” for the production of vaccines, a German government spokeswoman said Thursday in an email. Without the incentive of profits from research and development spending, drugmakers might not move as aggressively to make vaccines in the future, the industry has argued.NYC Pitches Vaccine Tourism (10:41 a.m. NY)New York Mayor Bill de Blasio said he is working with state officials to offer free vaccines to visitors as a way to encourage them to visit and spur tourism.Mobile vans will bring Johnson & Johnson one-dose shots to Times Square, Brooklyn Bridge Park and other popular locations, de Blasio said Thursday during a virus briefing.“We think this is a positive message to send to tourists,” the mayor said. “Come here and we’re going to take care of you.”The city plans a $30 million marketing blitz to recharge its tourism industry. Capacity restrictions on restaurants, stores and shows will be lifted on May 19 as Covid-19 cases decrease and vaccinations increase, Governor Andrew Cuomo said this week. Broadway tickets for September shows went on sale today.Pfizer Ups Production Target (10:38 a.m. NY)Pfizer Inc. and BioNTech SE have capacity to make as many as 3 billion doses of their Covid-19 vaccine this year, more than double the amount the partners had predicted less than six months ago.The partners will further increase their capacity for 2022 to more than 3 billion doses, BioNTech said in an e-mailed statement.The increase is the latest in a series of production target boosts and comes amid increased demand for messenger RNA Covid vaccines around the world.India Variant Spreads in Africa (10:31 a.m. NY)The coronavirus strain circulating in India has been detected in three African countries, according to the head of the Africa Centres for Disease Control and Prevention.Authorities in Kenya, Uganda and Morocco have reported the presence of the variant known as B.1.617 that is overwhelming the health system in India, Africa CDC’s director, John Nkengasong, said in an online briefing Thursday. Five cases have been found in Kenya and one in Uganda, while the Moroccan government is “investigating some cases there,” he said.Fearing an influx of infections and mindful of B.1.617, Nigeria, Kenya, Uganda and Tanzania are among countries that have temporarily banned flights from India.Rwanda Eyes Vaccine Plant (10:07 a.m. NY)Rwandan President Paul Kagame said his country is in talks to establish the first mRNA vaccine plant in Africa as the continent battles the coronavirus pandemic. He did not give details.Africa has few manufacturing facilities of any kind and most that do exist can only package and distribute the inoculations -- so called fill-finish facilities -- rather than make the ingredients needed for the shots.Vaccines Donated to Olympics (9:30 a.m. NY)Tokyo Olympic athletes and delegations will be able to receive Covid-19 vaccine doses donated by Pfizer Inc. and BioNTech SE as organizers push ahead with preparations for the delayed games.The International Olympic Committee signed an agreement with the companies to donate the doses, with the first delivery expected to begin at the end of this month, according to a statement from the drugmakers on Thursday. The statement did not specify the number of doses.Hungary’s Population Falls (9:15 a.m. NY)Hungary’s 2020 population drop, as measured by deaths exceeding births, was the biggest in more than a century with the eastern European Union one of the world’s worst-hit by the coronavirus pandemic.The plunge of 48,667 was the highest since 1918, when the Spanish flu and World War I were the biggest contributing factors, figures released Wednesday showed.Russia Approves One-Dose Shot (7:59 a.m. NY)Russia approved a single-dose version of the Sputnik V Covid-19 vaccine after it showed almost 80% efficacy, according to the state-run fund that backed its development.The 79.4% efficacy rate of the vaccine, called Sputnik Light, is based on an analysis of real-world data rather than a standard clinical trial, and interim results from final-stage study are expected later this month, according to a statement from the Russian Direct Investment Fund. Early and mid-stage studies showed no serious adverse events, RDIF said.U.S. Patent Shock Roils Pharma (7:21 a.m. NY)The U.S.’s sudden support for a waiver of patent protections for Covid-19 vaccines headed to the World Trade Organization, setting the stage for potentially thorny negotiations over sharing the proprietary know-how needed to boost global supplies of the life-saving shots.“In terms of how soon the WTO can deliver -- that literally depends on the WTO members, collectively, being able to deliver,” U.S. Trade Representative Katherine Tai said in an interview Wednesday. “I am the first one to admit that what we are leaning into is a process that is not going to be easy.”With the European Union and China signaling a willingness to take part in the debate after the Biden administration’s shock announcement, stock prices tumbled worldwide.Moderna Reported Effective for Teens (7:18 a.m. NY)Moderna Inc. said studies of its Covid vaccine in teenagers showed that it was 96% effective and raised its product sales projections for the year as it reported its first-ever profitable quarter.Germany Backs Lockdown Exemptions (7:17 a.m. NY)German residents who have been fully vaccinated against the coronavirus will be exempt from most lockdown rules under legislation approved Thursday in the lower house of parliament.The law, which also covers people who have recovered from Covid-19, is set to be voted on by the upper house on Friday and will likely take effect this weekend. For people considered immune, mandatory tests for trips to the hairdresser and non-essential stores will no longer be required, and the need to comply with curfews and quarantine rules will be waived.EU Defends Vaccination Drive (6:15 a.m. NY)The head of the European Union’s executive arm mounted a spirited defense of the bloc’s Covid-19 vaccination campaign, taking a swipe at countries like the U.S. and the U.K. as she hailed her region as the world’s top vaccines exporter.“It is clear that our European vaccination campaign is a success,” European Commission President Ursula von der Leyen told an online conference. “What counts is the steadily increasing daily delivery of vaccines to our people -- and to the world.”Biden’s Vaccine Path Gets Tougher (6 a.m. NY)President Joe Biden’s government is now giving an average of 2.13 million shots a day, down from 3.37 million about three weeks ago. And on Tuesday, which has the lowest shots of any day of the week, fewer than a million were given for the first time since February.In response, the administration announced this week that it would concentrate more on smaller clinics and mobile sites in rural areas, while planning to wind down mass-vaccination sites.Hungary Touts Pfizer to Buoy Campaign (5:28 p.m. HK)Hungary will make Pfizer and Moderna Covid shots widely available to the public as the nation seeks to keep up the pace of one of the European Union’s fastest vaccination campaigns.Authorities will make available as many as 180,000 vaccines from the two companies each week on an online vaccine registration platform, most of them from Pfizer, Cabinet Minister Gergely Gulyas said at a briefing on Thursday.Australia Clots Tied to Astra (2:25 p.m. HK)Five additional cases of a rare type of blood clot were identified in recipients of AstraZeneca Plc’s Covid-19 vaccine in Australia. All are receiving treatment, the company said in a statement Thursday. More cases of so-called thrombosis with thrombocytopenia are expected as the vaccine is offered to people older than 50 in Australia, said Katie Flanagan, president-elect of the Australasian Society for Infectious Diseases.Tokyo Emergency May Lengthen (2:06 p.m. HK)Japanese Prime Minister Yoshihide Suga said he would decide Friday on extending a state of emergency for Tokyo and three other regions, as he tries to stem a surge in Covid-19 infections ahead of the capital hosting the Olympics from July.Tokyo wants to extend a virus emergency currently in place and will soon seek approval for the move from Prime Minister Yoshihide Suga, in a bid to stem a surge in infections ahead of the capital hosting the Olympics from July.The major metro area of Osaka, where infection numbers have reached record highs in recent days, is also set to seek an extension, with Governor Hirofumi Yoshimura saying he has no other option.Sydney Imposes New Curbs (9:46 a.m. HK)Restrictions on gatherings are being imposed in Sydney and surrounding areas due to two Covid-19 cases detected in Australia’s most-populous city.From 5 p.m. Thursday, the maximum number of people allowed into homes will be 20, while singing and dancing in all indoor venues except those hosting weddings will be banned, New South Wales Premier Gladys Berejiklian told reporters. Masks will be compulsory on public transport and in all public indoor venues, such as retail, theaters, hospitals and aged-care facilities. The restrictions will last until at least the end of the weekend.Hong Kong Vaccinations Pass 1 Million (9:03 a.m. HK)The number of people who have received their first Covid-19 vaccine dose has exceeded 1 million on Wednesday, Hong Kong’s government said. The vaccination program has been running since Feb, 26.Still, only about 13.4% of the Hong Kong population has received at least one dose, according to Bloomberg’s Covid-19 Vaccine Tracker. That’s still well behind rival financial hubs like Singapore, London and New York.(An earlier version of this story corrected the name of the virus)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. Business Bloomberg 210506 10h00m Stocks Rebound With Dow Average Hitting Record: Markets Wrap (Bloomberg) -- Stocks rebounded as data showing the world’s largest economy is strengthening rapidly overshadowed concern over potential inflationary pressures. The dollar retreated.The S&P 500 wiped out earlier losses, with most major groups rising, while the Dow Jones Industrial Average climbed to another record. Shares of vaccine makers trimmed declines as German Chancellor Angela Merkel weighed in against a U.S. proposal to waive patent protections for Covid-19 shots. PayPal Holdings Inc. rallied as its results topped Wall Street estimates. UberTechnologies Inc. slumped after saying spending on recruiting drivers will impact earnings. Applications for U.S. state unemployment insurance fell last week to a fresh pandemic low as labor market conditions continued to improve and the economy reopened more broadly. Traders are now awaiting Friday’s employment report, which is expected to show the U.S. added about 1 million jobs in April -- a sign that fewer business restrictions are bringing more Americans back to work.“With jobless claims hitting a pandemic-era low, anticipation for the full jobs picture tomorrow mounts,” said Mike Loewengart, managing director of investment strategy at E*Trade Financial. “Today’s read is another proof point that we’re one step closer to full economic recovery. As we see some serious momentum building on the jobs front, all eyes will be on how this plays into action taken by the Fed.”After closing at a fresh high on Wednesday, the Dow Jones Transportation Average -- considered a barometer of economy activity -- surged 25% above its 200-day moving average. The move could be “perceived as indicative of strength likely to continue in the broader equity market,” said Bloomberg Intelligence’s Gina Martin Adams.These are the main moves in markets:StocksThe S&P 500 rose 0.3% as of 12 p.m. New York timeThe Nasdaq 100 rose 0.4%The Dow Jones Industrial Average rose 0.5%The Stoxx Europe 600 fell 0.1%The MSCI World index rose 0.4%CurrenciesThe Bloomberg Dollar Spot Index fell 0.3%The euro rose 0.4% to $1.2051The British pound fell 0.2% to $1.3876The Japanese yen was little changed at 109.17 per dollarBondsThe yield on 10-year Treasuries was little changed at 1.57%Germany’s 10-year yield was little changed at -0.22%Britain’s 10-year yield declined three basis points to 0.79%CommoditiesWest Texas Intermediate crude fell 0.6% to $65 a barrelGold futures rose 1.7% to $1,814 an ounceFor 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. World Reuters 210506 09h49m COLUMN-Shifting sands of COVID-19 vaccine supply race give U.S. new advantage In early March, U.S. President Joe Biden and the leaders of India, Japan and Australia – the so-called Quad group - chose to put COVID-19 vaccines at the centre of their strategy to limit China's growing influence in Asia. Their plan to use 1 billion largely Indian-manufactured vaccines as a geopolitical tool was swiftly overtaken by events though U.S. officials have said it is still on track. Having started the year by describing itself as a "vac superpower" and "pharmacy of the world", India has now halted exports and is seeking vaccines from elsewhere as the COVID-19 pandemic overwhelms its hospitals. Howell date : 210506 09h39m34s Business Reuters 210506 09h29m Bunge announces creation of Brazil freight digital tool Brazil's unit of U.S.-based grain trader Bunge announced on Thursday a partnership with logistics and technology provider Target for creation of a company focusing on the hiring of road freight digitally. The company will be called Vector, and the move comes one year after the launch of an application of the same name that was developed for Bunge to hire freight more efficiently. Brazil, the world's largest soybean producer and exporter, still largely relies on trucks to move grains while limited waterway and rail infrastructure put the country at a disadvantage against United States competitors. World Reuters 210506 09h17m Israel's odd couple: rivals who could topple Netanyahu together One is a centre-left avowed secularist who says the Palestinians should get a state. Meet the men from Israel's opposite political poles who could topple Benjamin Netanyahu. If Israel's longest serving prime minister is brought down after four inconclusive elections in two years, it will not be because his opponents rallied the nation behind a new political programme. Business Bloomberg 210506 09h14m Tech Leads Stock Losses After Jobless Claims Data: Markets Wrap (Bloomberg) -- Stocks fell as a decline in jobless claims to a pandemic low added to evidence the economy is strengthening rapidly, stoking further debate about potential inflationary pressures.Most major groups in the S&P 500 retreated, while the Nasdaq 100 underperformed major equity benchmarks. Separate economic data highlighted a rebound in productivity. Traders are now awaiting Friday’s employment report, which is expected to show the U.S. added about 1 million jobs in April -- a sign that fewer business restrictions are bringing more Americans back to work.“With jobless claims hitting a pandemic-era low, anticipation for the full jobs picture tomorrow mounts,” said Mike Loewengart, managing director of investment strategy at E*Trade Financial. “Today’s read is another proof point that we’re one step closer to full economic recovery. As we see some serious momentum building on the jobs front, all eyes will be on how this plays into action taken by the Fed.”U.S. support for a proposal to waive patents for Covid-19 shots might be good news for the global inoculation campaign, but ended up sinking shares of vaccine makers. Pfizer Inc., BioNTech SE, Novavax Inc., Johnson & Johnson and CureVac NV slid, with Moderna Inc. tumbling as its revenues missed estimates. Uber Technologies Inc. slumped after saying spending on recruiting drivers will impact earnings. PayPal Holdings Inc. rallied as its results topped already high expectations.After closing at a fresh high on Wednesday, the Dow Jones Transportation Average -- considered a barometer of economy activity -- surged 25% above its 200-day moving average. The move could be “perceived as indicative of strength likely to continue in the broader equity market,” said Bloomberg Intelligence’s Gina Martin Adams.These are the main moves in markets:StocksThe S&P 500 fell 0.3% as of 11:13 a.m. New York timeThe Nasdaq 100 fell 0.6%The Dow Jones Industrial Average was little changedThe Stoxx Europe 600 fell 0.4%The MSCI World index was little changedCurrenciesThe Bloomberg Dollar Spot Index fell 0.3%The euro rose 0.4% to $1.2054The British pound fell 0.2% to $1.3880The Japanese yen was little changed at 109.13 per dollarBondsThe yield on 10-year Treasuries was little changed at 1.56%Germany’s 10-year yield was little changed at -0.23%Britain’s 10-year yield declined three basis points to 0.79%CommoditiesWest Texas Intermediate crude fell 0.7% to $65 a barrelGold futures rose 1.7% to $1,814 an ounceFor 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. Business Bloomberg 210506 09h08m VW Raises Full-Year Outlook, Warns on Growing Chip Shortage (Bloomberg) -- Volkswagen AG raised its earnings outlook after a strong start to the year, while cautioning that the semiconductor shortage rippling through the industry will become more pronounced in the second quarter.Operating return on sales is forecast at 5.5% to 7% this year, compared with a previous range of 5% to 6.5%, Europe’s largest automaker said Thursday in a statement. VW also raised its projection for net cash flow and net liquidity.“We started the year with great momentum and are on a strong operational course,” Chief Executive Officer Herbert Diess said in the release.While demand has rebounded across the industry, manufacturers are now grappling with an acute chip shortage that’s forcing them to halt production lines and prioritize some vehicles. Diess said the company will feel more pain in the second quarter and that some lines will stop “for a few days, a few weeks,” though the fallout won’t be as pronounced as with some rivals.VW shares reversed initial gains and traded down 2.5% in Frankfurt, valuing the manufacturer at 120.6 billion euros ($145 billion).Daily BattleStellantis NV warned this week that the global semiconductor shortage will deteriorate further from the first three months of the year, while Ford Motor Co. has forecast a $2.5 billion hit to earnings from scarce chip supplies.“We’re fighting day by day,” Diess said in an interview with Bloomberg TV. “We’re doing everything to keep production running.”Still, the fallout from the disruptions might lower VW’s second-quarter return on sales to about 5%, down from 7.7% in the first three months, he said during a call with analysts.VW is at a pivotal moment in getting its electric-car push off the ground and narrow the gap to Tesla Inc. Among the new models this year are the VW ID.4 and the Audi Q4 e-tron, two crossovers about the size of Tesla’s popular Model Y, as part of the industry’s largest rollout of electric cars. Diess said that electric vehicles are actually less affected by the chip shortage, supporting the company’s efforts to tilt production more into that space.Two months after mapping out plans to build six battery factories in Europe VW is still in talks with potential partners and governments over possible partnerships to finance the projects. Decisions could be made “in the next couple of months” and include initial public offerings of “some of the activities,” Diess said. First-quarter operating profit surged to 4.8 billion euros from 900 million euros last year, when the Covid-19 pandemic shuttered showrooms and factory floors. The group’s Audi and Porsche premium brand continued to be largest profit contributors, accounting for just over half of the group’s earnings with 2.58 billion euros combined.The German carmaker targets becoming the global EV leader by 2025 at the latest and is allocating substantial financial and management firepower to boost software expertise under a new unit named Cariad. VW’s shares have soared since Diess wooed investors in March with back-to-back briefings on standardizing key technologies across VW’s 12 brands for scale effects that’ll likely elude both Tesla and established automakers.Steel PricesThe recovery in demand is helping to fuel VW’s costly electric plans. Total deliveries during the first quarter jumped 21% to 2.43 million vehicles, mainly driven by a surge in China. Deliveries of electrified models more than doubled to 133,300 vehicles, of which 59,900 were battery electric vehicle and the remainder plug-in hybrids.The Wolfsburg-based manufacturer has targeted selling roughly 600,000 purely battery-powered cars this year and is “fully on track” to comply with tightening European emission rules, Diess said.Besides the semiconductor shortage, rising prices for raw materials from steel to precious metals are also taking their toll on the car industry, Diess said. “Finding new sources, that’s going to be a challenge for 2021 for sure,” Diess said. “Demand is rising for everyone, and supply is constrained.”(Updates with comments from analyst call 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. Business Bloomberg 210506 09h07m Fintech Bright Spot Africa Catches Up in Bumper Funding Year (Bloomberg) -- Fintech companies in Africa raised more capital despite the Covid-19 pandemic, standing in contrast to their emerging-market peers such as Latin America that saw a decline.The continent saw fintech funding, including mergers and acquisitions, grow to $1.35 billion last year from $1 billion in 2019, according to a report by BFA Global’s Catalyst Fund and Briter Bridges published on Thursday. While Indian and Latin American fintech companies still raised more money than those in Africa, their volumes fell from the previous year as they battled to close later-stage deals.“The numbers of pre-seed and seed deals in Africa are increasing,” the report said. “While Latin America and India are seeing a growing number of mega-deals African markets are only beginning to see a few such late-stage deals.”Africa’s growing population of 1.2 billion people, rising smartphone ownership and a drop in Internet costs are among the factors contributing to the region’s allure. Investors also see opportunity among its large unbanked population of 350 million, which accounts for 17% of the global total.Most investments on the continent flowed to Nigeria, Kenya and South Africa, according to the report, which surveyed 177 startups and 33 impact investors across emerging markets.The region’s fintechs haven’t yet raised funding through an initial public offering but they have enjoyed fast growing merger-and-acquisition activity, with international companies including Visa Inc., Network International Holdings Plc and Stripe Inc. growing their interests in the region.Nigeria has especially benefited from the financial-technology boom that has put much of Africa at the cutting edge of the revolution in mobile money. In 2020, Stripe paid $200 million to acquire Nigerian startup Paystack.Flutterwave, based in Lagos and San Francisco, raised $170 million this year, becoming Nigeria’s second fintech startup with a valuation above $1 billion, after Interswitch.Read more: Pandemic Was a ‘Boon’ for African Wealth Funds Investing LocallyThough total funding for emerging-market fintech companies increased last year, it still accounts for a small portion of global investment. Of the $105 billion received by fintech firms in 2020, $76 billion flowed to the US.In Latin America, Brazil, Mexico, Uruguay and Colombia made up 99% of regional fintech investment, while India, Singapore and Indonesia were the most popular destination for funds in South Asia and Southeast Asia. India netted $3 billion for fintechs alone.“After the initial shock of the pandemic wore off, many investors continued to close deals, albeit remotely,” the report said. Investors preferred to pour cash into payments over other product categories, it said.(Updates with chart after 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. World Reuters 210506 09h04m WTO head welcomes U.S. vaccine move, urges rapid start of negotiations The head of the World Trade Organization welcomed on Thursday the U.S. move to support waiving patent rights for COVID-19 vaccines and urged WTO members to start negotiations as soon as possible. Director-General Ngozi Okonjo-Iweala told member states that she "warmly welcomed" U.S. willingness to engage with the proponents of the temporary waiver to the WTO's TRIPS (Trade-Related Aspects of Intellectual Property Rights) Agreement. "We need to respond urgently to COVID-19 because the world is watching and people are dying," she said in a statement read by a WTO spokesman after the closed-door meeting. Howell date : 210506 09h08m57s Business Yahoo Finance 210506 08h55m Square Q1 earnings set to show pick-up in transactions amid economic recovery, surge in bitcoin revenue Square is poised to report first-quarter earnings results after market close on Thursday, with the payments company's results likely boosted by ongoing growth in Cash App and its cryptocurrency offerings. Business Reuters 210506 08h51m UPDATE 1-Yale chief investment officer Swensen dies of cancer David Swensen, who spent more than three decades managing one of the world's best performing college endowments as Yale University's chief investment officer, has died of cancer, the university said. Over three decades Swensen helped the university's endowment grow to $31.2 billion, making Yale one of the world's richest universities. World Bloomberg 210506 08h50m NYC Pitches Vaccine Tourism; India Breaks Records: Virus Update (Bloomberg) -- New York City is in talks to offer free vaccines to visitors as a way to encourage them to visit, Mayor Bill de Blasio said. U.S. support for a waiver of patent protections for vaccines is heading to the World Trade Organization, with the European Union and China signaling a willingness to take part in the negotiations.Pfizer Inc. and BioNTech SE have capacity to make as many as 3 billion doses of their vaccine this year, more than double the amount the partners predicted six months ago.India reported its highest-ever daily tally of 412,262 new virus cases and also a record 3,980 deaths. The governors of Tokyo and Osaka called for their virus emergencies to be extended, with Japanese Prime Minister Yoshihide Suga set to decide Friday. Key DevelopmentsGlobal Tracker: Cases near 155.3 million; deaths exceed 3.24 millionVaccine Tracker: More than 1.21 billion doses have been givenModerna Covid booster shots prove effective against variants (Video)Vaccines work on this India variant. Experts fret about the nextA new wave of vaccines is coming, and they’re not all also-ransBroken ventilators add momentum to ‘right to repair’ movementSubscribe to a daily update on the virus from Bloomberg’s Prognosis team here. Click CVID on the terminal for global data on cases and deaths.NYC Pitches Vaccine Tourism (10:41 a.m. NY)New York Mayor Bill de Blasio said he is working with state officials to offer free vaccines to visitors as a way to encourage them to visit and spur tourism.Mobile vans will bring Johnson & Johnson one-dose shots to Times Square, Brooklyn Bridge Park and other popular locations, de Blasio said Thursday during a virus briefing.“We think this is a positive message to send to tourists,” the mayor said. “Come here and we’re going to take care of you.”The city plans a $30 million marketing blitz to recharge its tourism industry. Capacity restrictions on restaurants, stores and shows will be lifted on May 19 as Covid-19 cases decrease and vaccinations increase, Governor Andrew Cuomo said this week. Broadway tickets for September shows went on sale today.Pfizer Ups Production Target (10:38 a.m. NY)Pfizer Inc. and BioNTech SE have capacity to make as many as 3 billion doses of their Covid-19 vaccine this year, more than double the amount the partners had predicted less than six months ago.The partners will further increase their capacity for 2022 to more than 3 billion doses, BioNTech said in an e-mailed statement.The increase is the latest in a series of production target boosts and comes amid increased demand for messenger RNA Covid vaccines around the world. India Variant Spreads in Africa (10:31 a.m. NY)The coronavirus strain circulating in India has been detected in three African countries, according to the head of the Africa Centres for Disease Control and Prevention.Authorities in Kenya, Uganda and Morocco have reported the presence of the variant known as B.1.617 that is overwhelming the health system in India, Africa CDC’s director, John Nkengasong, said in an online briefing Thursday. Five cases have been found in Kenya and one in Uganda, while the Moroccan government is “investigating some cases there,” he said.Fearing an influx of infections and mindful of B.1.617, Nigeria, Kenya, Uganda and Tanzania are among countries that have temporarily banned flights from India. The variants first detected in the U.K and South Africa have been reported in 20 and 23 countries in Africa respectively, according to Nkengasong.Rwanda Eyes Vaccine Plant (10:07 a.m. NY)Rwandan President Paul Kagame said his country is in talks to establish the first mRNA vaccine plant in Africa as the continent battles the coronavirus pandemic. He did not give details. Africa has few manufacturing facilities of any kind and most that do exist can only package and distribute the inoculations -- so called fill-finish facilities -- rather than make the ingredients needed for the shots.Vaccines Donated to Olympics (9:30 a.m. NY)Tokyo Olympic athletes and delegations will be able to receive Covid-19 vaccine doses donated by Pfizer Inc. and BioNTech SE as organizers push ahead with preparations for the delayed games.The International Olympic Committee signed an agreement with the companies to donate the doses, with the first delivery expected to begin at the end of this month, according to a statement from the drugmakers on Thursday. The statement did not specify the number of doses.Hungary’s Population Falls (9:15 a.m. NY)Hungary’s 2020 population drop, as measured by deaths exceeding births, was the biggest in more than a century with the eastern European Union one of the world’s worst-hit by the coronavirus pandemic.The plunge of 48,667 was the highest since 1918, when the Spanish flu and World War I were the biggest contributing factors, figures released Wednesday showed.Russia Approves One-Dose Shot (7:59 a.m. NY)Russia approved a single-dose version of the Sputnik V Covid-19 vaccine after it showed almost 80% efficacy, according to the state-run fund that backed its development.The 79.4% efficacy rate of the vaccine, called Sputnik Light, is based on an analysis of real-world data rather than a standard clinical trial, and interim results from final-stage study are expected later this month, according to a statement from the Russian Direct Investment Fund. Early and mid-stage studies showed no serious adverse events, RDIF said.U.S. Patent Shock Roils Pharma (7:21 a.m. NY)The U.S.’s sudden support for a waiver of patent protections for Covid-19 vaccines headed to the World Trade Organization, setting the stage for potentially thorny negotiations over sharing the proprietary know-how needed to boost global supplies of the life-saving shots.“In terms of how soon the WTO can deliver -- that literally depends on the WTO members, collectively, being able to deliver,” U.S. Trade Representative Katherine Tai said in an interview Wednesday. “I am the first one to admit that what we are leaning into is a process that is not going to be easy.”With the European Union and China signaling a willingness to take part in the debate after the Biden administration’s shock announcement, stock prices tumbled worldwide.Moderna Reported Effective for Teens (7:18 a.m. NY)Moderna Inc. said studies of its Covid vaccine in teenagers showed that it was 96% effective and raised its product sales projections for the year as it reported its first-ever profitable quarter.Germany Backs Lockdown Exemptions (7:17 a.m. NY)German residents who have been fully vaccinated against the coronavirus will be exempt from most lockdown rules under legislation approved Thursday in the lower house of parliament.The law, which also covers people who have recovered from Covid-19, is set to be voted on by the upper house on Friday and will likely take effect this weekend. For people considered immune, mandatory tests for trips to the hairdresser and non-essential stores will no longer be required, and the need to comply with curfews and quarantine rules will be waived.EU Defends Vaccination Drive (6:15 a.m. NY)The head of the European Union’s executive arm mounted a spirited defense of the bloc’s Covid-19 vaccination campaign, taking a swipe at countries like the U.S. and the U.K. as she hailed her region as the world’s top vaccines exporter.“It is clear that our European vaccination campaign is a success,” European Commission President Ursula von der Leyen told an online conference. “What counts is the steadily increasing daily delivery of vaccines to our people -- and to the world.”Biden’s Vaccine Path Gets Tougher (6 a.m. NY)President Joe Biden’s government is now giving an average of 2.13 million shots a day, down from 3.37 million about three weeks ago. And on Tuesday, which has the lowest shots of any day of the week, fewer than a million were given for the first time since February.In response, the administration announced this week that it would concentrate more on smaller clinics and mobile sites in rural areas, while planning to wind down mass-vaccination sites.Hungary Touts Pfizer to Buoy Campaign (5:28 p.m. HK)Hungary will make Pfizer and Moderna Covid shots widely available to the public as the nation seeks to keep up the pace of one of the European Union’s fastest vaccination campaigns.Authorities will make available as many as 180,000 vaccines from the two companies each week on an online vaccine registration platform, most of them from Pfizer, Cabinet Minister Gergely Gulyas said at a briefing on Thursday.Australia Clots Tied to Astra (2:25 p.m. HK)Five additional cases of a rare type of blood clot were identified in recipients of AstraZeneca Plc’s Covid-19 vaccine in Australia. All are receiving treatment, the company said in a statement Thursday. More cases of so-called thrombosis with thrombocytopenia are expected as the vaccine is offered to people older than 50 in Australia, said Katie Flanagan, president-elect of the Australasian Society for Infectious Diseases.Tokyo Emergency May Lenghthen (2:06 p.m. HK)Japanese Prime Minister Yoshihide Suga said he would decide Friday on extending a state of emergency for Tokyo and three other regions, as he tries to stem a surge in Covid-19 infections ahead of the capital hosting the Olympics from July.Tokyo wants to extend a virus emergency currently in place and will soon seek approval for the move from Prime Minister Yoshihide Suga, in a bid to stem a surge in infections ahead of the capital hosting the Olympics from July.The major metro area of Osaka, where infection numbers have reached record highs in recent days, is also set to seek an extension, with Governor Hirofumi Yoshimura saying he has no other option.Sydney Imposes New Curbs (9:46 a.m. HK)Restrictions on gatherings are being imposed in Sydney and surrounding areas due to two Covid-19 cases detected in Australia’s most-populous city.From 5 p.m. Thursday, the maximum number of people allowed into homes will be 20, while singing and dancing in all indoor venues except those hosting weddings will be banned, New South Wales Premier Gladys Berejiklian told reporters. Masks will be compulsory on public transport and in all public indoor venues, such as retail, theaters, hospitals and aged-care facilities. The restrictions will last until at least the end of the weekend.Hong Kong Vaccinations Pass 1 Million (9:03 a.m. HK)The number of people who have received their first Covid-19 vaccine dose has exceeded 1 million on Wednesday, Hong Kong’s government said. The vaccination program has been running since Feb, 26.Still, only about 13.4% of the Hong Kong population has received at least one dose, according to Bloomberg’s Covid-19 Vaccine Tracker. That’s still well behind rival financial hubs like Singapore, London and New York.Thailand Steps Up Stimulus Spending (8 a.m. HK)Thailand is planning to spend billions of dollars in providing financial relief to low-income groups to cope with the economic hit from the biggest Covid-19 outbreak sweeping the nation since the pandemic began.The cabinet gave in-principle approval on Wednesday for fiscal stimulus measures at a cost of 85.5 billion baht ($2.8 billion). It also proposed 140 billion baht worth of spending for co-payment and e-voucher programs and more cash handouts to welfare cardholders and special groups, officials said.(An earlier version of this story corrected the name of the virus)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. Business Reuters 210506 08h45m TREASURIES-U.S. yields slide ahead of non-farm payrolls report The yield curve flattened for a fifth session on Thursday, as yields on the long end stalled amid increased investor demand and as the Federal Reserve repeatedly affirmed its dovish stance. "The growth story is leading to inflation, while the Federal Reserve is jawboning, trying to keep expectations down, which I think is the right thing to do." World Bloomberg 210506 08h42m U.S. Vaccine Patent Surprise Roils Pharma as WTO Debate Heats Up (Bloomberg) -- The U.S.’s sudden support for a waiver of patent protections for Covid-19 vaccines is headed for potentially thorny negotiations at the World Trade Organization over sharing the proprietary know-how needed to boost global supplies.“In terms of how soon the WTO can deliver -- that literally depends on the WTO members, collectively, being able to deliver,” U.S. Trade Representative Katherine Tai said in an interview Wednesday. “I am the first one to admit that what we are leaning into is a process that is not going to be easy.”With the European Union and China signaling a willingness to take part in the debate after the Biden administration’s announcement, pharmaceutical executives reacted with anger and their stock prices tumbled worldwide.BioNTech SE’s depository receipts dropped as much as 16% in U.S. trading, while shares of Pfizer Inc. were down 2.8% as of 10:19 a.m. in New York. Together, the companies sell the messenger RNA shot that was one of the first to win regulatory endorsement.“This change in longstanding American policy will not save lives,” said Stephen Ubl, the president and CEO of PhRMA, the biopharma industry’s lobbying group. “This decision does nothing to address the real challenges to getting more shots in arms, including last-mile distribution and limited availability of raw materials.”CureVac NV of Germany, which is developing another mRNA vaccine, fell as much as 13% in U.S. trading. Asian vaccine stocks including Shanghai Fosun Pharmaceutical Group Co. and CanSino Biologics Inc. also slumped.“The EU is ready to discuss any proposal that addresses the crisis in an effective and pragmatic manner,” European Commission President Ursula von der Leyen told a virtual conference in Florence, Italy on Thursday. “And that’s why we are ready to discuss how the U.S. proposal for a waiver on IP protection for Covid vaccines could help achieve that objective.”The U.S. and Europe have been strong supporters of IP protections at the WTO, particularly as a way to enforce problems like Chinese patent infringement. As the pandemic leads to some of the world’s more monumental and lucrative scientific discoveries, defenders of IP rights are warming to some exceptions on ethical grounds even though the drug companies argue it’ll do more harm than good.The WTO’s General Council is meeting on Thursday, though any final waiver of intellectual-property protections may take weeks to hammer out. Tai added that she sees momentum from WTO Director-General Ngozi Okonjo-Iweala “to take this opportunity and see what is the WTO capable of.”In a statement, Okonjo-Iweala called it the “moral and economic issue of our time.”The Biden administration will encourage other countries to join its position, Tai said. “We are for the waiver at the WTO, we are for what the proponents of the waiver are trying to accomplish, which is better access, more manufacturing capability, more shots in arms,” she said.Drugmakers argue that the plan is ineffective and that few countries have the capacity to produce more vaccines even if they knew the formulas. Also, there’s limited global supply of the materials needed, and building new factories with the necessary technology to produce the vaccines could take years, they say.Nathalie Moll, director general of the European Federation of Pharmaceutical Industries and Associations, said the Biden administration’s decision “puts the hard-won progress in fighting this terrible disease in jeopardy.”“While we wholeheartedly agree with the goal of protecting citizens around the world through vaccines, waiving patents will make winning the fight against the coronavirus even harder,” Moll said.EU’s PositionEU officials involved in the discussions caution that any negotiations at the WTO will drag for months or even years and will only result into a partial waiver that does not touch mRNA technology. Von der Leyen said in a tweet that the priority should be the ramping up of production of vaccines, after having earlier appealed to the U.K. and the U.S to lift export restrictions.Officials in Brussels see donations-in-kind of spare vaccines and a lift to export restrictions as a much more effective means to address the risks of mutations, rather than IP rights for vaccines that most countries in the world don’t have the capacity to produce.India and South Africa, two nations struggling to contain fresh outbreaks of Covid-19, have been urging WTO members to temporarily suspend rules on IP rights, arguing that it would be the most efficient and equitable way to address vaccine shortages in poor countries.The U.S. wasn’t the only country with initial reservations. The EU, U.K., Japan, Switzerland, Brazil and Norway have also resisted earlier proposals. However, supporters of the waiver argue that U.S. leadership on the issue could help sway other holdouts. The timing for approval of the waiver depends on how soon member states can find agreement.Norway’s foreign ministry on Thursday praised the U.S.’s decision to “commit itself to finding a solution that is less far-reaching than the proposal that was originally on the table, and on which there was great disagreement. This could be a limited and targeted measure to avoid patents being a possible bottleneck.”WTO chief Okonjo-Iweala said proponents of the waiver were planning to revise a proposal initially submitted in October 2020 and asked for a meeting open to all WTO members in the second half of May, before the next formal gathering on the issue slated for early June.What Bloomberg Intelligence Says:“The U.S. backing for a patent waiver is more form than substance. The complex manufacturing of safe and effective vaccines means very little impact in the next 6-12 months, suggesting countries still need to secure booster shots for 2022. If patent waivers were to raise production, it would diminish the durability of revenue for innovators including BioNTech and Moderna. The resulting lack of incentives will mean slower development of vaccines against emerging variants and future pandemics.”-- Sam Fazeli, BI pharmaceuticals analystClick here to read the research.As the U.S. inoculations advanced and outbreaks diminished in recent weeks, the White House came under pressure from progressive Democrats and public-health advocates to take a stance while India in particular suffers from surging deaths and infections.Tai also met with top executives of vaccine-producing companies and held calls with members of Congress and other stakeholders in civil society and public health. In April, she called on the pharma companies to make sacrifices.“The desperate needs that our people face in the current pandemic provide these companies with an opportunity to be the heroes they claim to be -- and can be,” she said at a virtual conference at the WTO.(Updates markets in fourth paragraph, adds EU stance in 15th)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. Business Reuters 210506 08h29m EMERGING MARKETS-Brazil's real at over 3-month high on hawkish central bank * Colombia to raise 14 trillion pesos with new tax reform * Real gains after central bank hints at another rate hike in June * Dollar falls from two-week high By Shashank Nayar May 6 (Reuters) - Brazil's real surged on Thursday after the central bank made its second consecutive interest rate hike to curb rising inflation, while the Colombian peso recovered from six-month lows on the prospect of a revised tax reform bill. The real rose 1.24% to its highest level since January this year after the central bank hiked its benchmark Selic rate by 75 basis points to 3.5% late on Wednesday. The central bank also hinted at another rate hike in June to help curb rising inflation and support an economy hurt by the COVID-19 pandemic. Howell date : 210506 08h38m19s Business Reuters 210506 08h30m EMERGING MARKETS-Brazil's real at over 3-month high on hawkish central bank * Colombia to raise 14 trillion pesos with new tax reform * Real gains after central bank hints at another rate hike in June * Dollar falls from two-week high By Shashank Nayar May 6 (Reuters) - Brazil's real surged on Thursday after the central bank made its second consecutive interest rate hike to curb rising inflation, while the Colombian peso recovered from six-month lows on the prospect of a revised tax reform bill. The real rose 1.24% to its highest level since January this year after the central bank hiked its benchmark Selic rate by 75 basis points to 3.5% late on Wednesday. The central bank also hinted at another rate hike in June to help curb rising inflation and support an economy hurt by the COVID-19 pandemic. Business Bloomberg 210506 08h29m Oil Slips With Uneven Global Consumption Rebound Tempering Rally (Bloomberg) -- Oil declined as the coronavirus crisis in countries such as India tempered optimism around returning fuel demand elsewhere.Futures in New York fell as much as 1.7% on Thursday after a run-up toward a nearly two-month intraday high during the prior session. While signs of rising oil consumption have put prices on track for a weekly gain, the Covid-19 crisis in major crude importer India has become a prominent headwind for further gains. The South Asian country reported its highest-ever daily tally of new virus cases and a record amount of deaths.“There are still concerns around India setting new death rate records by day and we’re seeing an uneven recovery in petroleum demand around the globe,” said Gary Cunningham, director at Stamford, Connecticut-based Tradition Energy. “That’s holding us back from a further run.”Despite near-term concerns, oil has rallied more than 30% so far this year as key economies including the U.S. and China rebound from the impact of the pandemic, fanning energy demand. Spain’s Cepsa is restarting a processing unit that was previously idled, while U.S. refineries are running at five-year average levels for the first time since the pandemic began. The strength in crude forms part of a broad advance in raw materials, with the Bloomberg Commodity Spot Index surging to the highest level in almost a decade.“Oil prices failed to break year-to-date highs as a wide array of uncertainty prompted trades to take profits,” TD Securities commodity strategists led by Bart Melek said in a note. “As the world begins to exit from the pandemic, expectations are set to firm for an extraordinary recovery in energy demand on the horizon.”Elsewhere, Japan plans to extend a a state of emergency brought on by Covid until the end of the month, local media reported. The country’s capital, Tokyo, had wanted to extend it in a bid to stem a surge in infections ahead of hosting the Olympics from July.Beyond headline crude prices, the market’s underlying structure has weakened in recent sessions. The backwardation between Brent’s two nearest contracts -- which signals tightening supplies -- has narrowed to 36 cents compared to 49 cents at the end of last week. The backwardation in WTI’s so-called prompt spread has also softened this week.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. Business Reuters 210506 08h22m CANADA FX DEBT-Canadian dollar climbs to 3-1/2-year high as greenback slides * Canadian dollar strengthens 0.4% against the greenback * Loonie touches its strongest since September 2017 at 1.2196 * Price of U.S. oil falls 1.1% * Canadian bond yields little changed across the curve TORONTO, May 6 (Reuters) - The Canadian dollar rose on Thursday to its highest level against its U.S. counterpart in more than three and a half years as the greenback broadly fell, ahead of domestic jobs data that could offer clues on the Bank of Canada policy outlook. The loonie was trading 0.4% higher at 1.2210 to the greenback, or 81.90 U.S. cents, having touched its strongest intraday level since September 2017 at 1.2196. The currency has been on a tear since the Bank of Canada last month signaled it could begin hiking interest rates in late 2022 and cut the pace of its bond purchases. Business Reuters 210506 08h20m US STOCKS-Nasdaq, S&P 500 slip as COVID-19 vaccine makers fall The Nasdaq and the S&P 500 slipped on Thursday as vaccine makers fell after President Joe Biden announced plans to back intellectual property waivers on COVID-19 shots, but losses were capped by an upbeat jobless claims report. Shares in Pfizer Inc, Moderna Inc, Johnson & Johnson and Novavax Inc, all involved in the making of COVID-19 vaccines, fell between 0.2% and 9.3%. Business Yahoo Finance 210506 08h20m Klobuchar calls Trump 'the ultimate conveyor of misinformation,’ says Facebook ban not far enough The Facebook oversight board’s decision to uphold an indefinite ban on former President Trump’s account renewed calls for antitrust action against the social media giant Wednesday. Business Bloomberg 210506 08h18m David Swensen, Yale Endowment’s Pioneer Manager, Dies at 67 (Bloomberg) -- David Swensen, the chief investment officer at Yale University who helped revolutionize how college endowments are managed, has died. He was 67.Swensen died May 5 after a long battle with cancer, Yale said Thursday in a statement. He had gone on temporary leave from his job in September 2012 to undergo treatment before returning to his duties at Yale.Swensen managed one of the most-watched and best-performing college endowments for more than three decades. Many of the world’s wealthiest investors sought to replicate his investment model, which favors more illiquid assets such as private equity.“David served our university with distinction,” Yale President Peter Salovey said in the statement. “He was an exceptional colleague, a dear friend and a beloved mentor to many in our community. Future generations will benefit from his dedication, brilliance and generosity.”After arriving from Wall Street in 1985 to manage money for the school in New Haven, Connecticut, Swensen overhauled his alma mater’s endowment, which was largely invested in domestic stocks and bonds. He diversified into private equity, hedge funds and real estate.While the strategy is now widely accepted, at the time it was novel for a college and produced superior returns against both benchmarks and peers while creating a model for other institutions.“David’s ideas reverberated beyond Yale as he revolutionized the landscape of institutional investing,” Salovey wrote. “A natural teacher, he prepared a generation of institutional investors who have gone on to lead investment offices at other colleges and universities.”‘Highest Integrity’His contributions to institutional investing are without parallel, said Richard Levin, the former Yale president who first met Swensen in the 1970s in the Yale economics department, when Swensen was a doctoral student and Levin an assistant professor.“Perhaps more impressive than his contributions was his character,” Levin said in a telephone interview. “Self-confident yet selfless, with the highest integrity. His rectitude was astonishing. He devoted himself to the institution that he loved.”Levin, who worked with Swensen on the investment committee and as a tennis doubles partner, said character was an important part of how he selected outside firms that invested Yale’s money.“He would never invest with a manager who he didn’t believe to be scrupulously honest and fair-minded,” Levin said. “People who skated close to the line repelled him. The integrity of his partners was very important to him.”Swensen invested for the long term. The university has been around for 300 years, and he sought to invest to provide resources for another 300, said Charles Ellis, who knew Swensen for decades and served for 17 years as chairman of Yale’s investment committee.“He arrived in a world that was deeply conventional and no one else could see that conventional way was not right,” Ellis said. “Once you make the commitment to long-term investing, bonds have no place and conventional stocks are OK. Can you do better?”Top ReturnsYale’s investment office generated annualized returns of 10.9% in the decade through June 2020, the best among all eight Ivy League schools, and 9.9% annually over 20 years. Under his tutelage, it became the world’s third-wealthiest university, with a $31.2 billion endowment as of June 2020.While his Wall Street career spanned just six years, Swensen would leave a mark. In 1981, while working for Salomon Brothers, he helped develop a so-called currency swap between International Business Machines Corp. and the World Bank, which would serve as a precursor for the emergence of the derivatives market. The following year he was hired by Lehman Brothers as senior vice president of corporate finance, directing its swap-market subsidiary.It was Nobel laureate James Tobin, his dissertation adviser, who in 1985 persuaded Swensen to return to New Haven to take over Yale’s endowment, and the university to entrust about $1 billion of assets to a 31-year-old alumnus.On his 20th anniversary in 2005, he was given a chart showing the $7.8 billion in additional return the endowment generated using his strategy over two decades, ranking it as the biggest financial donation ever in the history of Yale, which was founded in 1701.Making Mistakes“Successful investment cultures encourage professionals to find new mistakes to make, instead of simply repeating old mistakes,” Swensen wrote in his 2000 book, “Pioneering Portfolio Management: An Unconventional Approach to Institutional Investment.”Swensen was born Jan. 26, 1954, in River Falls, Wisconsin, where his father, Richard Swensen, was a dean and chemistry professor at the local campus of the University of Wisconsin. His grandfather was also a chemistry professor. His mother, Grace, became a Lutheran minister after raising six children, and one of his three sisters also became a minister.Swensen was a fellow of the American Academy of Arts & Sciences and Council on Foreign Relations, and he advised President Barack Obama as a member of the President’s Economic Recovery Advisory Board.He had also served as trustee or adviser to several companies, schools, governments and nonprofits, including the Brookings Institution, Cambridge University, the Chan Zuckerberg Initiative, New York Stock Exchange, as well as the states of Connecticut and Massachusetts, according to the statement.He is survived by his wife, Meghan McMahon, and three children.(Updates with medical leave in second paragraph, Levin comments starting in eighth 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. Howell date : 210506 08h07m42s Howell date : 210505 21h15m00s Howell date : 210505 20h44m22s Howell date : 210505 20h13m44s Business Reuters 210505 19h41m FOREX-Dollar holds near two-week high, U.S. jobs data eyed for Fed clues * Graphic: World FX rates https://tmsnrt.rs/2RBWI5E By Kevin Buckland TOKYO, May 6 (Reuters) - The dollar hovered below a two-week high on Thursday, consolidating ahead of a key U.S. jobs report that may provide clues on when the Federal Reserve will dial back monetary stimulus. The greenback has rebounded from a one-month low over the past week, swung by U.S. economic data that has largely supported the case for a rapid recovery from the pandemic, with traders weighing whether a lift in inflation may force the Fed's hand earlier than policymakers have so far suggested. The dollar index, which measures the U.S. currency against six major peers, was little changed at 91.316 on Thursday, after rising as high as 91.436 in the previous session for the first time since April 19. World Bloomberg 210505 19h32m India Drugmaker Warning; Moderna Booster Effective: Virus Update (Bloomberg) -- Indian drugmakers are warning that halting some cargo flights from China could disrupt the global drug supply chain. China supplies 60% to 70% of the raw materials used by Indian pharmaceutical firms as well as ingredients for finished medicines sent worldwide, according to Mahesh Doshi, national president for the Indian Drug Manufacturers’ Association.Moderna Inc. said mid-stage trials showed its booster shots were effective against virus strains that emerged in Brazil and South Africa. Canada became the first nation to clear the Pfizer-BioNTech vaccine for adolescents. The U.S. will support a proposal to waive intellectual-property protections for Covid-19 vaccines, joining an effort to increase global supply and access to the life-saving shots as the gap between rich and poor nations widens.Southeast Asian nations wary of an Indian-like virus wave are tightening restrictions. Malaysia has imposed a movement control order in Kuala Lumpur through May 20 and Vietnam has ordered stricter border control and quarantine measures. Authorities in Hanoi have also recommended people stay home. In Indonesia, the region’s biggest country, the Jakarta Post newspaper is warning authorities need to be vigilant to prevent a surge in infections.Key DevelopmentsGlobal Tracker: Cases near 154.8 million; deaths exceed 3.23 millionVaccine Tracker: More than 1.21 billion doses have been givenModerna Covid booster shots prove effective against variants (Video)India’s struggle to track new covid variants could worsen crisisVaccines work on this India variant. Experts fret about the nextHere comes the Covid-19 community corps and they want youWhat are vaccine passports and how would they work?: QuickTakeSubscribe to a daily update on the virus from Bloomberg’s Prognosis team here. Click CVID on the terminal for global data on cases and deaths.Hong Kong Vaccinations Pass 1 Million (9:03 a.m. HK)The number of people who have received their first Covid-19 vaccine dose has exceeded 1 million on Wednesday, Hong Kong’s government said. The vaccination program has been running since Feb, 26.Still, only about 13.4% of the Hong Kong population has received at least one dose, according to Bloomberg’s Covid-19 Vaccine Tracker. That’s still well behind rival financial hubs like Singapore, London and New York.Thailand Steps Up Virus Stimulus Spending (8 a.m. HK)Thailand is planning to spend billions of dollars in providing financial relief to low-income groups to cope with the economic hit from the biggest Covid-19 outbreak sweeping the nation since the pandemic began.The cabinet gave in-principle approval on Wednesday for fiscal stimulus measures at a cost of 85.5 billion baht ($2.8 billion). It also proposed 140 billion baht worth of spending for co-payment and e-voucher programs and more cash handouts to welfare cardholders and special groups, officials said.Philippines Could Get 7 Million Doses in May (8 a.m. HK)The Philippines’ coronavirus inoculation drive could leap this month, with the possibility of increasing vaccine supplies to about 7 million shots from 4 million, which could lead to a further reopening of the economy.Kuala Lumpur Tightens Movement Restrictions (8 a.m. HK)Malaysia tightened restrictions on movements in the capital Kuala Lumpur to stem the rise in new Covid-18 infections, a day after imposing similar curbs in Selangor, its richest state.The movement control order, or MCO, will stay in force from May 7 to May 20, Defense Minister Ismail Sabri Yaakob said in a statement on Wednesday, adding the protocols already in place for other areas under MCO will apply.Case Cluster at Hanoi Hospital Grows (7:23 a.m. HK)Vietnam reported eight more infections linked to a cluster in the National Hospital for Tropical Diseases Campus of Dong Anh in Hanoi, taking the tally in the center to 22, the health ministry’s newspaper Suc Khoe Doi Song reported.The nation has reported 3,030 virus infections, including 64 local cases from April 27 when the country confirmed the first domestic patient in a month, and 35 deaths as of May 6 morning, the newspaper reported.Vietnam has ordered a strict border control and mandatory quarantines of three weeks while imposing some movement restrictions as it traces the recent flare up in coronavirus cases to overseas travelers.China Flight Halt May Snarl Supplies (6:50 a.m. HK)Drugmakers in India warn that a halt on some cargo flights from China could imperil an important link in the global pharmaceutical supply chain.The U.S. relies heavily on India to stock its medicine cabinets, and any slowdown in output could leave pharmacies short of drugs used regularly by millions of Americans.On April 26, China’s state-run Sichuan Airlines suspended cargo flights to India for 15 days amid an alarming second Covid-19 outbreak there. If the flights remain on hold, the drug industry fears “cascading effects on its entire supply chain,” Mahesh Doshi, national president for the Indian Drug Manufacturers’ Association, wrote in an April 29 letter to India’s external affairs minister.Argentina Has Record Number of Daily Deaths (6:45 a.m. HK)Argentina reported a record 663 deaths in the last 24 hours for a total of 65,865, according to the country’s evening report.There were 24,079 new Covid-19 cases reported, bringing the total to 3,071,496.Novavax Shows Efficacy Against Variant (5:41 p.m. NY)Novavax said initial primary analysis of Phase 2B results for its vaccine showed efficacy against a South African variant of the coronavirus.Among healthy adults without HIV, the Novavax vaccine showed efficacy of 60% in the initial analysis and 55% in the subsequent complete analysis, the company said. Novavax may have lost the race on vaccinating millions of Americans but a successful trial can still help developing nations like India and Brazil where shots are in high demand.Canada May Mix Vaccines Amid Supply Crunch (4:47 p.m. NY)Canada is considering allowing patients to receive two different types of vaccines as the country deals with shortages of shots from AstraZeneca Plc and Moderna Inc.Federal health officials are closely watching a U.K.-based trial in which participants received two kinds of shots. Results are expected in the next month or so, said Supriya Sharma, chief medical adviser at Health Canada.If adopted, the new protocol would mark another major deviation from original vaccine guidelines. Canada has opted to extend the length of time between mRNA vaccines from the recommended three to four weeks to as long as four months, in order to stretch supplies.Moderna Booster Effective on Variants (4:08 p.m. NY)Moderna Inc.’s booster shots gave positive results against immune system-evading strains that emerged in South Africa and Brazil, according to early results from a mid-stage trial.Two types of booster shots studied spurred higher levels of virus-halting antibodies, Moderna said in a statement. One of the boosters is an additional low-dose shot of its existing vaccine, while the other type is customized against the South Africa strain.“We are encouraged by these new data, which reinforce our confidence that our booster strategy should be protective against these newly detected variants,” Stephane Bancel, Moderna’s chief executive officer, said in a statement. “We will continue to make as many updates to our Covid-19 vaccine as necessary to control the pandemic.”U.S. to Back Waiver of Vaccine IP Protections (3:25 p.m. NY)The U.S. will back a proposal to waive intellectual-property protections for Covid-19 vaccines, joining an effort to increase global supply and access to the life-saving shots as the gap between rich and poor nations widens.“We are for the waiver at the WTO, we are for what the proponents of the waiver are trying to accomplish, which is better access, more manufacturing capability, more shots in arms,” U.S. Trade Representative Katherine Tai said in an interview on Wednesday.The Biden administration will now actively take part in negotiations for the text of the waiver at the World Trade Organization and encourage other countries to back it, Tai said. She acknowledged the talks will take time and “will not be easy,” given the complexity of the issue and the fact that the WTO is a member-driven organization that can only make decisions based on consensus.Biden Touts Relief Funds for Restaurants (3 p.m. NY)President Joe Biden visited a Washington restaurant owned in part by Mexican immigrants on Wednesday to highlight $28.6 billion in federal aid for restaurants that struggled during the pandemic.Under the Covid-19 relief measure Biden signed in March, restaurants can apply for grants ranging from $1,000 to $5 million per location, or $10 million for those with 20 or fewer locations.Pandemic Delays FDA Plant Inspections (2:20 p.m. NY)Pandemic disruptions severely hampered U.S. regulators’ ability to inspect drug and device makers’ manufacturing plants, delaying at least 68 applications for approval to market new products, according to a Food and Drug Administration review.Seven of the delayed applications were mission-critical, meaning they represented a medical advancement, the agency said Wednesday in its report, and six of those were for new drugs. The delayed applications were among 600 where the FDA required a factory inspection before approval decisions.U.S. Cases Could See ‘Sharp Decline’: CDC (11:20 a.m. NY)U.S. Covid-19 cases could see a sharp decline by July if nationwide vaccination efforts continue to be successful, according to the Centers for Disease Control and Prevention.Researchers used scenario modeling techniques to show long-term projections of potential trends in Covid-19 cases, hospitalizations and deaths in data released Wednesday in the agency’s Morbidity and Mortality Weekly Report.Canada Clears Pfizer Shot for Teens (10:39 a.m. NY)Canadian public health officials authorized the use of the Pfizer Inc.-BioNTech SE Covid vaccine for teenagers, making Canada the first nation to do so. Supriya Sharma, chief medical adviser with Health Canada, made the announcement Wednesday at a press conference. The department determined the vaccine was “safe and effective” for the younger age group, Sharma said. The U.S. is considering similar action.G-7 Meeting Goes Ahead in U.K. (7:06 a.m. NY)The U.K. insisted a meeting of top Group of Seven diplomats in London should go ahead after India’s foreign minister Subrahmanyam Jaishankar said he would self-isolate over possible exposure to coronavirus.The news risked derailing a high-profile event that marked the G-7 debut of U.S. Secretary of State Antony Blinken. Britain is hosting the gathering, which began on Tuesday.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. U.S. Business Business Bloomberg 210505 18h13m Novogratz’s Galaxy Buys BitGo in $1.2 Billion Crypto Deal (Bloomberg) -- Mike Novogratz’s Galaxy Digital Holdings agreed to buy crypto custodian BitGo Inc. in a cash and stock transaction valued at about $1.2 billion.Galaxy is paying $265 million in cash and is issuing 33.8 million shares to finance the acquisition. BitGo shareholders will own 10% of the company. The deal broadens Galaxy’s offerings and geographic reach.“The acquisition of BitGo establishes Galaxy Digital as a one-stop-shop for institutions and significantly accelerates our mission to institutionalize digital asset ecosystems and blockchain technology,” Novogratz, Galaxy’s New York-based chief executive officer and founder, said in a statement.Cryptocurrency prime broker BitGo was founded in 2013 by Mike Belshe, an engineer who’s previously worked on Google’s Chrome. He’s joining Galaxy as deputy chief executive officer and will become a member of the company’s board of directors.“Joining Galaxy Digital represents an exciting new chapter for our business, as our current clients gain access to a wide set of financial solutions,” Belshe said in a release.BitGo, with over 400 institutional clients, has more than $40 billion in assets under custody and serves over 150 exchanges, according to a press release. The company processes roughly 30 billion transactions per month and supports the custody of more than 400 coins and tokens.“We’ve built this company where we invested in all things blockchain, we traded and participated on top of the blockchain, and now with the 60-plus blockchain engineers, we actually get to build the infrastructure of the future,” Novogratz said in an interview on Bloomberg Television.It’s the second high-profile acquisition in the crypto space in recent days. Coinbase Global Inc., the newly public crypto firm, at the end of April acquired Skew, a data analytics and trade execution platform focused on cryptocurrency derivatives.The cryptosphere has grown in recent months as institutional and retail investors take a greater interest amid a red-hot rally in digital-asset prices. Bitcoin, the largest digital coin, has gained more than 500% over the past year. The Bloomberg Galaxy Crypto Index, which tracks multiple cryptocurrencies, is up nearly 800% over the same period.(Updates with comments from BTV interview.)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. World Bloomberg 210505 18h13m U.S. Lawmakers Ask for Biden’s Aid on Vietnamese Pork Tariffs (Bloomberg) -- A bipartisan group of U.S. House lawmakers is asking the Biden administration to seek the elimination of Vietnam’s tariffs on American pork and address other restrictions as it engages with the Southeast Asian country over currency and trade practices.U.S. pork producers have failed to gain significant access to pork-loving Vietnam that has seen its domestic pig farms devastated by the African swine fever, increasing the demand for imported pork, according to a letter Wednesday to U.S. Trade Representative Katherine Tai that was signed by 72 members of Congress, both Republicans and Democrats,However, “significant tariff and non-tariff barriers unfortunately prevent U.S. pork from competing in that country, even as it seeks reliable sources of non-domestic pork,” the representatives said in the letter. “Consequently, our competitors in the EU as well as the Comprehensive and Progressive Trans-Pacific Partnership participants are well-positioned to take advantage of this tremendous opportunity given their free trade agreements with Vietnam.”U.S. Trade Chief Raises Concerns on Vietnam Currency Policy (1)Vietnam’s Ministry of Foreign Affairs did not immediately respond to an emailed request for comment made outside regular business hours.Vietnam has culled more than two million domestic pigs and imported hogs in the past two years because of African swine fever. Pork is the meat most Vietnamese rely on for daily protein.The representatives said in the letter to Tai that “the past few years have been extraordinarily difficult for U.S. pork producers due to trade retaliation from top U.S. export destinations” as well as disruptions brought about by the coronavirus pandemic.Vietnam last year temporarily cut its U.S. frozen pork import tariffs to 10% from 15%. This resulted in a doubling of American exports to the country during the second half of 2020 compared with the first six months of the year, the letter said. The temporary duty reduction expired at the end of 2020.U.S. producers also face restrictions to the Vietnamese market caused by “burdensome” administrative procedures, not recognizing the U.S. pork plant inspection and approval system and inconsistent processes for the import of some pork organ meat, said Maria Zieba, assistant vice president of international affairs for the National Pork Producers Council.(Updates with temporary tariff reduction in the 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. Business Bloomberg 210505 18h13m Brazil Pledges Another ‘Sharp’ Rate Hike to Hit Inflation Target (Bloomberg) -- Discover what’s driving the global economy and what it means for policy makers, businesses, investors and you with The New Economy Daily. Sign up hereBrazil’s central bank lifted its benchmark interest rate by 75 basis points and promised another hike of the same size next month in a renewed push to bring inflation back to target.The bank on Wednesday raised the Selic to 3.5%, in line with estimates from all economists in a Bloomberg survey and the guidance given by policy makers at their prior meeting in March. If it makes good on its promise, the bank will have raised borrowing costs by 225 basis points to 4.25% by June.“A partial normalization of the policy rate remains appropriate to keep some degree of monetary stimulus during the economic recovery,” central bank board members in wrote in a statement accompanying their decision. “However, the Committee emphasizes that there is no commitment with this plan, and that future steps of monetary policy could be adjusted to assure the achievement of the inflation target.”The bank, led by its President Roberto Campos Neto, is acting to rein in inflation that’s surged above the target ceiling to a four-year high. Food and fuel costs have jumped in recent months, and the government recently restarted emergency aid that will firm up demand. Put together, analysts see consumer prices above target this year and next despite an incipient recovery.What Bloomberg Economics Says“The central bank tried to reach a compromise: it promised another sharp rate hike of 75 basis points in the next meeting, but warned that it is not ready yet to fully normalize monetary policy. Despite acknowledging the decline in underlying inflation and mentioning -- for the first time ever -- its dual mandate, we believe that the overall tone of the statement was somewhat hawkish.”--Adriana Dupita, Latin America economistClick here for the full reportThe decision makes room for the real to extend recent gains. The Brazilian currency is the best performer among majors in the past month, up 4.4% amid rising commodity prices. A stronger exchange rate helps fight inflation by making imports less expensive.Real Has Scope to Gain After BCB’s Hiking Signal: Inside Brazil“They are continuing the hawkish tilt,” said Sacha Tihanyi, head of emerging market strategy at TD Securities in Toronto. “Hike aggressively sooner, and then create some breathing space for the real.”Nearing 8%For the first time, policy makers mentioned their secondary mandate of fostering full employment, introduced in the same law that gave the bank its long-sought formal autonomy earlier this year. Yet they offered a positive outlook, saying recent economic indicators have been better than expected despite the pandemic, and predicting uncertainties over growth to gradually return to normal.Last month, President Jair Bolsonaro’s administration started paying out another round of monthly stipends at a total cost of 44 billion reais ($8.2 billion). Lawmakers have recently indicated they will seek an extension of that aid if the government does not accelerate plans for a new social program as the coronavirus continues to spread through the country.Read More: Brazil’s Budget Foreshadows Another Year of Massive SpendingConsumer prices rose 6.17% in the year through mid-April, and many economists see that reading approaching 8% in May. The central bank targets annual inflation at 3.75% this year, with a tolerance range of plus or minus 1.5 percentage points.In their statement, policy makers wrote various measures of underlying inflation are already at the top of the range compatible with hitting their target. Complicating matters, commodity prices continue to increase, and higher energy costs are pressuring prices in the short-term.“The central bank is signaling it plans to get to a 5% Selic in 75-basis point hikes, though it leaves the space to change its mind,” said David Beker, chief Brazil economist at Bank of America Corp.(Updates with central bank statement in third paragraph, economist quote in fifth)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. Howell date : 210505 19h43m07s World Reuters 210505 19h09m PRESS DIGEST-British Business - May 6 The following are the top stories on the business pages of British newspapers. - Boris Johnson ordered two Royal Navy patrol vessels to sail to the Channel Islands last night amid fears that French fishing boats were preparing to blockade Jersey's main port. - The Facebook oversight board upheld the site's ban on Donald Trump, giving the company six months to decide whether to readmit or permanently delete the former president's accounts. Business Bloomberg 210505 18h47m Asia Stocks Climb After U.S. Tech Sector Declines: Markets Wrap (Bloomberg) -- Asia stocks rose in early trade Thursday after technology shares weighed on U.S. markets, offsetting optimism over solid corporate earnings and economic reports. Bonds pared overnight gains.Shares opened higher in Australia and Japan, where trading resumes after holidays. Futures pointed higher in Hong Kong and U.S. contracts were little changed after the tech-heavy Nasdaq 100 ended in the red, while the S&P 500 notched a small gain. Boston Federal Reserve President Eric Rosengren suggested that the U.S. mortgage market no longer needs as much support, advancing the debate on when the central bank might start tapering its monthly bond purchases.The benchmark 10-year Treasury yield edged higher in Asia’s morning. The U.S. government said it will sell $126 billion of long-dated bonds in next week’s refunding, unchanged from last quarter, which suggests its financing needs may have peaked.As the world’s largest economy rebounds, investors are increasingly focused on when the central bank might start throttling back its emergency support. Economists surveyed by Bloomberg expect the Fed will announce a reduction in the pace of bond purchases in the fourth quarter. While Chairman Jerome Powell hasn’t yet shifted from his message that it’s too soon to discuss such a move, policy makers have begun to address the issue more directly.“The housing market is quite strong right now and housing prices have been going up,” Rosengren told Bloomberg TV. “So the need for buying mortgage-backed securities at the pace that we have been doing probably is not nearly as needed as it was much earlier in the recovery.”Meanwhile, the surge in commodity prices continues to fuel debate over whether price pressures could get out of hand. The Bloomberg Commodity Spot Index returned to its highest level since 2011 as growth bets boost demand, while poor weather and transportation bottlenecks threaten supply. U.S. lumber futures notched fresh record highs as sawmills try to keep up with rebounding demand. Oil gave up earlier gains as traders assessed an increase in gasoline stockpiles.Here are some key events to watch this week:Bank of England rate decision ThursdayThe April U.S. employment report is released on FridayThese are some of the main moves in markets:StocksS&P 500 futures were steady as of 9:25 a.m. in Tokyo. The index was little changedNasdaq 100 futures rose less than 0.1% after the gauge fell 0.3%Japan’s Topix Index rose 1.5%South Korea’s Kospi edged up 0.1%Australia’s S&P/ASX 200 Index climbed less than 0.1%Hong Kong’s Hang Seng Index futures rose 0.3% earlierCurrenciesThe Bloomberg Dollar Spot Index was steadyThe Japanese yen was at 109.24 per dollarThe offshore yuan was at 6.4845 per dollarThe euro was little changed at $1.2007BondsThe yield on 10-year Treasuries rose two basis points to 1.58% Australia’s 10-year yield slipped three basis points to 1.71%CommoditiesWest Texas Intermediate crude fell 0.8% to $65.13 a barrelGold was down 0.1% at $1,784.66 an ounceFor 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. Business Business World Business World Reuters 210505 17h43m China reports 5 new mainland COVID-19 cases vs 7 a day earlier China reported five new mainland COVID-19 cases on May 5, down from seven cases a day earlier, the country's national health authority said on Thursday. The National Health Commission said in a statement all of the new cases were imported infections originating from overseas. The number of new asymptomatic cases, which China does not classify as confirmed cases, fell to 7 from 10 cases a day earlier. Business Reuters 210505 17h43m As United weighs outsourcing catering, U.S. lawmakers demand new curbs on federal aid A group of U.S. lawmakers is demanding that airlines refrain from outsourcing jobs if they want to be eligible for a third round of federal payroll aid, after learning that United Airlines has sought bids to outsource catering work at five airports. Around two dozen members of U.S. Congress made the request to Treasury Secretary Janet Yellen, according to letters released by Unite Here, the union representing more than 2,500 workers whose jobs are at risk under United's proposal. Chicago-based United has received $7.7 billion in two COVID-19 relief deals, known as payroll support programs (PSP), to help the airline industry weather the pandemic and protect jobs. Howell date : 210505 19h12m31s U.S. Reuters 210505 18h49m California police investigating fatal Tesla crash The highway patrol report did not say whether the Tesla was operating on Autopilot, its semi-autonomous driving system, when the crash occurred at about 2:40 a.m. Wednesday. The 50-year-old truck driver and the 30-year-old motorist who stopped to help him both sustained major injuries, the police report said. The 35-year-old man driving the Tesla was not identified in the report. Business Bloomberg 210505 18h47m Asia Stocks Climb After U.S. Tech Sector Declines: Markets Wrap (Bloomberg) -- Asia stocks rose in early trade Thursday after technology shares weighed on U.S. markets, offsetting optimism over solid corporate earnings and economic reports. Bonds pared overnight gains.Shares opened higher in Australia and Japan, where trading resumes after holidays. Futures pointed higher in Hong Kong and U.S. contracts were little changed after the tech-heavy Nasdaq 100 ended in the red, while the S&P 500 notched a small gain. Boston Federal Reserve President Eric Rosengren suggested that the U.S. mortgage market no longer needs as much support, advancing the debate on when the central bank might start tapering its monthly bond purchases.The benchmark 10-year Treasury yield edged higher in Asia’s morning. The U.S. government said it will sell $126 billion of long-dated bonds in next week’s refunding, unchanged from last quarter, which suggests its financing needs may have peaked.As the world’s largest economy rebounds, investors are increasingly focused on when the central bank might start throttling back its emergency support. Economists surveyed by Bloomberg expect the Fed will announce a reduction in the pace of bond purchases in the fourth quarter. While Chairman Jerome Powell hasn’t yet shifted from his message that it’s too soon to discuss such a move, policy makers have begun to address the issue more directly.“The housing market is quite strong right now and housing prices have been going up,” Rosengren told Bloomberg TV. “So the need for buying mortgage-backed securities at the pace that we have been doing probably is not nearly as needed as it was much earlier in the recovery.”Meanwhile, the surge in commodity prices continues to fuel debate over whether price pressures could get out of hand. The Bloomberg Commodity Spot Index returned to its highest level since 2011 as growth bets boost demand, while poor weather and transportation bottlenecks threaten supply. U.S. lumber futures notched fresh record highs as sawmills try to keep up with rebounding demand. Oil gave up earlier gains as traders assessed an increase in gasoline stockpiles.Here are some key events to watch this week:Bank of England rate decision ThursdayThe April U.S. employment report is released on FridayThese are some of the main moves in markets:StocksS&P 500 futures were steady as of 9:25 a.m. in Tokyo. The index was little changedNasdaq 100 futures rose less than 0.1% after the gauge fell 0.3%Japan’s Topix Index rose 1.5%South Korea’s Kospi edged up 0.1%Australia’s S&P/ASX 200 Index climbed less than 0.1%Hong Kong’s Hang Seng Index futures rose 0.3% earlierCurrenciesThe Bloomberg Dollar Spot Index was steadyThe Japanese yen was at 109.24 per dollarThe offshore yuan was at 6.4845 per dollarThe euro was little changed at $1.2007BondsThe yield on 10-year Treasuries rose two basis points to 1.58% Australia’s 10-year yield slipped three basis points to 1.71%CommoditiesWest Texas Intermediate crude fell 0.8% to $65.13 a barrelGold was down 0.1% at $1,784.66 an ounceFor 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. Business Bloomberg 210505 18h42m Novogratz’s Galaxy Buys BitGo in $1.2 Billion Crypto Deal (Bloomberg) -- Mike Novogratz’s Galaxy Digital Holdings agreed to buy crypto custodian BitGo Inc. in a cash and stock transaction valued at about $1.2 billion.Galaxy is paying $265 million in cash and is issuing 33.8 million shares to finance the acquisition. BitGo shareholders will own 10% of the company. The deal broadens Galaxy’s offerings and geographic reach.“The acquisition of BitGo establishes Galaxy Digital as a one-stop-shop for institutions and significantly accelerates our mission to institutionalize digital asset ecosystems and blockchain technology,” Novogratz, Galaxy’s New York-based chief executive officer and founder, said in a statement.Cryptocurrency prime broker BitGo was founded in 2013 by Mike Belshe, an engineer who’s previously worked on Google’s Chrome. He’s joining Galaxy as deputy chief executive officer and will become a member of the company’s board of directors.“Joining Galaxy Digital represents an exciting new chapter for our business, as our current clients gain access to a wide set of financial solutions,” Belshe said in a release.BitGo, with over 400 institutional clients, has more than $40 billion in assets under custody and serves over 150 exchanges, according to a press release. The company processes roughly 30 billion transactions per month and supports the custody of more than 400 coins and tokens.“We’ve built this company where we invested in all things blockchain, we traded and participated on top of the blockchain, and now with the 60-plus blockchain engineers, we actually get to build the infrastructure of the future,” Novogratz said in an interview on Bloomberg Television.It’s the second high-profile acquisition in the crypto space in recent days. Coinbase Global Inc., the newly public crypto firm, at the end of April acquired Skew, a data analytics and trade execution platform focused on cryptocurrency derivatives.The cryptosphere has grown in recent months as institutional and retail investors take a greater interest amid a red-hot rally in digital-asset prices. Bitcoin, the largest digital coin, has gained more than 500% over the past year. The Bloomberg Galaxy Crypto Index, which tracks multiple cryptocurrencies, is up nearly 800% over the same period.(Updates with comments from BTV interview.)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. Business Bloomberg 210505 18h35m Oil Declines as Traders Assess Uneven Recovery in Global Demand (Bloomberg) -- Oil fell as traders assessed an uneven recovery in demand, with U.S. stockpiles dropping but concern about consumption in virus-hit India.West Texas Intermediate dropped 0.8% in early Asian trading after ending little changed on Wednesday. Major crude importer India is battling a record coronavirus wave that’s sapped economic activity, and against that backdrop Saudi Arabia lowered prices for June shipments to Asian customers. Still, in the U.S., stockpiles declined last week to the lowest level since late February.Oil has rallied in 2021 as key economies including the U.S. and China rebound from the impact of the pandemic, fanning energy demand. The strength in crude forms part of a broad advance in raw materials, with the Bloomberg Commodity Spot Index surging to the highest level in almost a decade. On Wednesday, global benchmark Brent came close to topping $70 a barrel.Still, the outbreak has rapidly worsened in India since the start of April, and the country is now reporting more than 350,000 cases every day. Saudi Arabia’s state energy firm, Saudi Aramco, reduced June pricing to Asia by between 10 and 30 cents per barrel. The key Arab Light grade for the region was cut to $1.70 a barrel above the benchmark, from $1.80 for May.Oil prices are at risk of a correction, according to Bloomberg Intelligence analyst Henik Fung, who cited the threat posed by India’s crisis as well as higher OPEC+ supply. The Organization of Petroleum Exporting Countries and its allies are raising output by about 2 million barrels a day through to July.In the U.S., government data showed crude stockpiles contracted by nearly 8 million barrels last week and exports surged, but gasoline inventories rose for the fifth straight week. Separately, pent-up travel demand in the country is seen spurring a 30% jump in jet fuel use this summer.Brent’s prompt timespread was steady at 41 cents a barrel in backwardation on Thursday, compared with 31 cents a month ago. That’s a bullish pattern, with near-term prices trading above those further out.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. World Bloomberg 210505 18h30m U.S. Lawmakers Ask for Biden’s Aid on Vietnamese Pork Tariffs (Bloomberg) -- A bipartisan group of U.S. House lawmakers is asking the Biden administration to seek the elimination of Vietnam’s tariffs on American pork and address other restrictions as it engages with the Southeast Asian country over currency and trade practices.U.S. pork producers have failed to gain significant access to pork-loving Vietnam that has seen its domestic pig farms devastated by the African swine fever, increasing the demand for imported pork, according to a letter Wednesday to U.S. Trade Representative Katherine Tai that was signed by 72 members of Congress, both Republicans and Democrats,However, “significant tariff and non-tariff barriers unfortunately prevent U.S. pork from competing in that country, even as it seeks reliable sources of non-domestic pork,” the representatives said in the letter. “Consequently, our competitors in the EU as well as the Comprehensive and Progressive Trans-Pacific Partnership participants are well-positioned to take advantage of this tremendous opportunity given their free trade agreements with Vietnam.”U.S. Trade Chief Raises Concerns on Vietnam Currency Policy (1)Vietnam’s Ministry of Foreign Affairs did not immediately respond to an emailed request for comment made outside regular business hours.Vietnam has culled more than two million domestic pigs and imported hogs in the past two years because of African swine fever. Pork is the meat most Vietnamese rely on for daily protein.The representatives said in the letter to Tai that “the past few years have been extraordinarily difficult for U.S. pork producers due to trade retaliation from top U.S. export destinations” as well as disruptions brought about by the coronavirus pandemic.Vietnam last year temporarily cut its U.S. frozen pork import tariffs to 10% from 15%. This resulted in a doubling of American exports to the country during the second half of 2020 compared with the first six months of the year, the letter said. The temporary duty reduction expired at the end of 2020.U.S. producers also face restrictions to the Vietnamese market caused by “burdensome” administrative procedures, not recognizing the U.S. pork plant inspection and approval system and inconsistent processes for the import of some pork organ meat, said Maria Zieba, assistant vice president of international affairs for the National Pork Producers Council.(Updates with temporary tariff reduction in the 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. Health Bloomberg 210505 18h19m India Drugmaker Warning; Moderna Booster Effective: Virus Update (Bloomberg) -- Indian drugmakers are warning that halting some cargo flights from China could disrupt the global drug supply chain. China supplies 60% to 70% of the raw materials used by Indian pharmaceutical firms as well as ingredients for finished medicines sent worldwide, according to Mahesh Doshi, national president for the Indian Drug Manufacturers’ Association.Moderna Inc. said mid-stage trials showed its booster shots were effective against strains of the coronavirus that emerged from Brazil and South Africa. Canada became the first nation to clear the Pfizer-BioNTech coronavirus vaccine for adolescents.The U.K. insisted a meeting of top Group of Seven diplomats in London should go ahead after India’s foreign minister said he would self-isolate over possible exposure to coronavirus. Meanwhile, new research suggests deaths from Covid-19 in India may double from current levels.Key DevelopmentsGlobal Tracker: Cases top 154.6 million; deaths exceed 3.23 millionVaccine Tracker: More than 1.21 billion doses have been givenModerna Covid booster shots prove effective against variants (Video)Vaccines work on this India variant. Experts fret about the nextHere comes the Covid-19 community corps and they want youWhat are vaccine passports and how would they work?: QuickTakeSubscribe to a daily update on the virus from Bloomberg’s Prognosis team here. Click CVID on the terminal for global data on cases and deaths.Thailand Steps Up Virus Stimulus Spending (8 a.m. HK)Thailand is planning to spend billions of dollars in providing financial relief to low-income groups to cope with the economic hit from the biggest Covid-19 outbreak sweeping the nation since the pandemic began.The cabinet gave in-principle approval on Wednesday for fiscal stimulus measures at a cost of 85.5 billion baht ($2.8 billion). It also proposed 140 billion baht worth of spending for co-payment and e-voucher programs and more cash handouts to welfare cardholders and special groups, officials said.Philippines Could Get 7 Million Doses in May (8 a.m. HK)The Philippines’ coronavirus inoculation drive could leap this month, with the possibility of increasing vaccine supplies to about 7 million shots from 4 million, which could lead to a further reopening of the economy.Kuala Lumpur Tightens Movement Restrictions (8 a.m. HK)Malaysia tightened restrictions on movements in the capital Kuala Lumpur to stem the rise in new Covid-18 infections, a day after imposing similar curbs in Selangor, its richest state.The movement control order, or MCO, will stay in force from May 7 to May 20, Defense Minister Ismail Sabri Yaakob said in a statement on Wednesday, adding the protocols already in place for other areas under MCO will apply.Case Cluster at Hanoi Hospital Grows (7:23 a.m. HK)Vietnam reported eight more infections linked to a cluster in the National Hospital for Tropical Diseases Campus of Dong Anh in Hanoi, taking the tally in the center to 22, the health ministry’s newspaper Suc Khoe Doi Song reported.The nation has reported 3,030 virus infections, including 64 local cases from April 27 when the country confirmed the first domestic patient in a month, and 35 deaths as of May 6 morning, the newspaper reported.Vietnam has ordered a strict border control and mandatory quarantines of three weeks while imposing some movement restrictions as it traces the recent flare up in coronavirus cases to overseas travelers.China Flight Halt May Snarl Supplies (6:50 a.m. HK)Drugmakers in India warn that a halt on some cargo flights from China could imperil an important link in the global pharmaceutical supply chain.The U.S. relies heavily on India to stock its medicine cabinets, and any slowdown in output could leave pharmacies short of drugs used regularly by millions of Americans.On April 26, China’s state-run Sichuan Airlines suspended cargo flights to India for 15 days amid an alarming second Covid-19 outbreak there. If the flights remain on hold, the drug industry fears “cascading effects on its entire supply chain,” Mahesh Doshi, national president for the Indian Drug Manufacturers’ Association, wrote in an April 29 letter to India’s external affairs minister.Argentina Has Record Number of Daily Deaths (6:45 a.m. HK)Argentina reported a record 663 deaths in the last 24 hours for a total of 65,865, according to the country’s evening report.There were 24,079 new Covid-19 cases reported, bringing the total to 3,071,496.Novavax Shows Efficacy Against Variant (5:41 p.m. NY)Novavax said initial primary analysis of Phase 2B results for its vaccine showed efficacy against a South African variant of the coronavirus.Among healthy adults without HIV, the Novavax vaccine showed efficacy of 60% in the initial analysis and 55% in the subsequent complete analysis, the company said.Novavax may have lost the race on vaccinating millions of Americans but a successful trial can still help developing nations like India and Brazil where shots are in high demand.Canada May Mix Vaccines Amid Supply Crunch (4:47 p.m. NY)Canada is considering allowing patients to receive two different types of vaccines as the country deals with shortages of shots from AstraZeneca Plc and Moderna Inc.Federal health officials are closely watching a U.K.-based trial in which participants received two kinds of shots. Results are expected in the next month or so, said Supriya Sharma, chief medical adviser at Health Canada.If adopted, the new protocol would mark another major deviation from original vaccine guidelines. Canada has opted to extend the length of time between mRNA vaccines from the recommended three to four weeks to as long as four months, in order to stretch supplies.Colorado Woman Pro-Vaccine Despite Clot (4:43 p.m. NY)A Colorado woman who suffered a rare blood clot after receiving Johnson & Johnson’s vaccine urged others to get a shot just the same.Morgan Wolfe, 40, of Denver, told the Colorado Sun: “Despite everything that’s happened, I definitely still think that it’s important to keep on pushing for as much of the country and as much of the world to get vaccinated as possible”“Obviously, I had a bad reaction to this one. And that’s unfortunate for me, but I do still think that there’s a place for it in the overall strategy,” Wolfe said.Moderna Booster Effective on Variants (4:08 p.m. NY)Moderna Inc.’s booster shots gave positive results against immune system-evading strains that emerged in South Africa and Brazil, according to early results from a mid-stage trial.Two types of booster shots studied spurred higher levels of virus-halting antibodies, Moderna said in a statement. One of the boosters is an additional low-dose shot of its existing vaccine, while the other type is customized against the South Africa strain.“We are encouraged by these new data, which reinforce our confidence that our booster strategy should be protective against these newly detected variants,” Stephane Bancel, Moderna’s chief executive officer, said in a statement. “We will continue to make as many updates to our Covid-19 vaccine as necessary to control the pandemic.”U.S. to Back Waiver of Vaccine IP Protections (3:25 p.m. NY)The U.S. will back a proposal to waive intellectual-property protections for Covid-19 vaccines, joining an effort to increase global supply and access to the life-saving shots as the gap between rich and poor nations widens.“We are for the waiver at the WTO, we are for what the proponents of the waiver are trying to accomplish, which is better access, more manufacturing capability, more shots in arms,” U.S. Trade Representative Katherine Tai said in an interview on Wednesday.The Biden administration will now actively take part in negotiations for the text of the waiver at the World Trade Organization and encourage other countries to back it, Tai said.She acknowledged the talks will take time and “will not be easy,” given the complexity of the issue and the fact that the Geneva-based WTO is a member-driven organization that can only make decisions based on consensus.Biden Touts Relief Funds for Restaurants (3 p.m. NY)President Joe Biden visited a Washington restaurant owned in part by Mexican immigrants on Wednesday to highlight $28.6 billion in federal aid for restaurants that struggled during the pandemic.Under the Covid-19 relief measure Biden signed in March, restaurants can apply for grants ranging from $1,000 to $5 million per location, or $10 million for those with 20 or fewer locations.Pandemic Delays FDA Plant Inspections (2:20 p.m. NY)Pandemic disruptions severely hampered U.S. regulators’ ability to inspect drug and device makers’ manufacturing plants, delaying at least 68 applications for approval to market new products, according to a Food and Drug Administration review.Seven of the delayed applications were mission-critical, meaning they represented a medical advancement, the agency said Wednesday in its report, and six of those were for new drugs. The delayed applications were among 600 where the FDA required a factory inspection before approval decisions.Yankees, Mets to Segregate Unvaccinated Fans (12:07 p.m. NY)New York Yankees and Mets stadiums will reopen to all fans on May 19, with separate sections for vaccinated and unvaccinated spectators.Those who are vaccinated can sit together at 100% capacity, as long as they wear masks. The unvaccinated fans will need to wear masks and also observe a 6-foot (1.8-meter) social distancing rule, which works out to about 33% capacity in those sections, Governor Andrew Cuomo said Wednesday.Fans will be able to get vaccines at the games, under a deal between the state and the teams. Those who get a shot at a game will get a free ticket to another game, Cuomo said. New York joins several other states offering incentives for vaccines as the pace of inoculations slow.The governor also announced that Broadway tickets will go on sale Thursday, with shows starting Sept. 14 at full capacity, Cuomo said.U.S. Cases Could See ‘Sharp Decline’: CDC (11:20 a.m. NY)U.S. Covid-19 cases could see a sharp decline by July if nationwide vaccination efforts continue to be successful, according to the Centers for Disease Control and Prevention.Researchers used scenario modeling techniques to show long-term projections of potential trends in Covid-19 cases, hospitalizations and deaths in data released Wednesday in the agency’s Morbidity and Mortality Weekly Report.Canada Clears Pfizer Shot for Teens (10:39 a.m. NY)Canadian public health officials authorized the use of the Pfizer Inc.-BioNTech SE Covid vaccine for teenagers, making Canada the first nation to do so. Supriya Sharma, chief medical adviser with Health Canada, made the announcement Wednesday at a press conference. The department determined the vaccine was “safe and effective” for the younger age group, Sharma said. The U.S. is considering similar action.G-7 Meeting Goes Ahead in U.K. (7:06 a.m. NY)The U.K. insisted a meeting of top Group of Seven diplomats in London should go ahead after India’s foreign minister Subrahmanyam Jaishankar said he would self-isolate over possible exposure to coronavirus.The news risked derailing a high-profile event that marked the G-7 debut of U.S. Secretary of State Antony Blinken. Britain is hosting the gathering, which began on Tuesday.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. Business Bloomberg 210505 18h18m Brazil Pledges Another ‘Sharp’ Rate Hike to Hit Inflation Target (Bloomberg) -- Discover what’s driving the global economy and what it means for policy makers, businesses, investors and you with The New Economy Daily. Sign up hereBrazil’s central bank lifted its benchmark interest rate by 75 basis points and promised another hike of the same size next month in a renewed push to bring inflation back to target.The bank on Wednesday raised the Selic to 3.5%, in line with estimates from all economists in a Bloomberg survey and the guidance given by policy makers at their prior meeting in March. If it makes good on its promise, the bank will have raised borrowing costs by 225 basis points to 4.25% by June.“A partial normalization of the policy rate remains appropriate to keep some degree of monetary stimulus during the economic recovery,” central bank board members in wrote in a statement accompanying their decision. “However, the Committee emphasizes that there is no commitment with this plan, and that future steps of monetary policy could be adjusted to assure the achievement of the inflation target.”The bank, led by its President Roberto Campos Neto, is acting to rein in inflation that’s surged above the target ceiling to a four-year high. Food and fuel costs have jumped in recent months, and the government recently restarted emergency aid that will firm up demand. Put together, analysts see consumer prices above target this year and next despite an incipient recovery.What Bloomberg Economics Says“The central bank tried to reach a compromise: it promised another sharp rate hike of 75 basis points in the next meeting, but warned that it is not ready yet to fully normalize monetary policy. Despite acknowledging the decline in underlying inflation and mentioning -- for the first time ever -- its dual mandate, we believe that the overall tone of the statement was somewhat hawkish.”--Adriana Dupita, Latin America economistClick here for the full reportThe decision makes room for the real to extend recent gains. The Brazilian currency is the best performer among majors in the past month, up 4.4% amid rising commodity prices. A stronger exchange rate helps fight inflation by making imports less expensive.Real Has Scope to Gain After BCB’s Hiking Signal: Inside Brazil“They are continuing the hawkish tilt,” said Sacha Tihanyi, head of emerging market strategy at TD Securities in Toronto. “Hike aggressively sooner, and then create some breathing space for the real.”Nearing 8%For the first time, policy makers mentioned their secondary mandate of fostering full employment, introduced in the same law that gave the bank its long-sought formal autonomy earlier this year. Yet they offered a positive outlook, saying recent economic indicators have been better than expected despite the pandemic, and predicting uncertainties over growth to gradually return to normal.Last month, President Jair Bolsonaro’s administration started paying out another round of monthly stipends at a total cost of 44 billion reais ($8.2 billion). Lawmakers have recently indicated they will seek an extension of that aid if the government does not accelerate plans for a new social program as the coronavirus continues to spread through the country.Read More: Brazil’s Budget Foreshadows Another Year of Massive SpendingConsumer prices rose 6.17% in the year through mid-April, and many economists see that reading approaching 8% in May. The central bank targets annual inflation at 3.75% this year, with a tolerance range of plus or minus 1.5 percentage points.In their statement, policy makers wrote various measures of underlying inflation are already at the top of the range compatible with hitting their target. Complicating matters, commodity prices continue to increase, and higher energy costs are pressuring prices in the short-term.“The central bank is signaling it plans to get to a 5% Selic in 75-basis point hikes, though it leaves the space to change its mind,” said David Beker, chief Brazil economist at Bank of America Corp.(Updates with central bank statement in third paragraph, economist quote in fifth)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. Business Reuters 210505 17h12m As United weighs outsourcing catering, U.S. lawmakers demand new curbs on federal aid A group of U.S. lawmakers is demanding that airlines refrain from outsourcing jobs if they want to be eligible for a third round of federal payroll aid, after learning that United Airlines has sought bids to outsource catering work at five airports. Around two dozen members of U.S. Congress made the request to Treasury Secretary Janet Yellen, according to letters released by Unite Here, the union representing more than 2,500 workers whose jobs are at risk under United's proposal. Chicago-based United has received $7.7 billion in two COVID-19 relief deals, known as payroll support programs (PSP), to help the airline industry weather the pandemic and protect jobs. Howell date : 210505 18h52m59s World Bloomberg 210505 18h30m U.S. Lawmakers Ask for Biden’s Aid on Vietnamese Pork Tariffs (Bloomberg) -- A bipartisan group of U.S. House lawmakers is asking the Biden administration to seek the elimination of Vietnam’s tariffs on American pork and address other restrictions as it engages with the Southeast Asian country over currency and trade practices.U.S. pork producers have failed to gain significant access to pork-loving Vietnam that has seen its domestic pig farms devastated by the African swine fever, increasing the demand for imported pork, according to a letter Wednesday to U.S. Trade Representative Katherine Tai that was signed by 72 members of Congress, both Republicans and Democrats,However, “significant tariff and non-tariff barriers unfortunately prevent U.S. pork from competing in that country, even as it seeks reliable sources of non-domestic pork,” the representatives said in the letter. “Consequently, our competitors in the EU as well as the Comprehensive and Progressive Trans-Pacific Partnership participants are well-positioned to take advantage of this tremendous opportunity given their free trade agreements with Vietnam.”U.S. Trade Chief Raises Concerns on Vietnam Currency Policy (1)Vietnam’s Ministry of Foreign Affairs did not immediately respond to an emailed request for comment made outside regular business hours.Vietnam has culled more than two million domestic pigs and imported hogs in the past two years because of African swine fever. Pork is the meat most Vietnamese rely on for daily protein.The representatives said in the letter to Tai that “the past few years have been extraordinarily difficult for U.S. pork producers due to trade retaliation from top U.S. export destinations” as well as disruptions brought about by the coronavirus pandemic.Vietnam last year temporarily cut its U.S. frozen pork import tariffs to 10% from 15%. This resulted in a doubling of American exports to the country during the second half of 2020 compared with the first six months of the year, the letter said. The temporary duty reduction expired at the end of 2020.U.S. producers also face restrictions to the Vietnamese market caused by “burdensome” administrative procedures, not recognizing the U.S. pork plant inspection and approval system and inconsistent processes for the import of some pork organ meat, said Maria Zieba, assistant vice president of international affairs for the National Pork Producers Council.(Updates with temporary tariff reduction in the 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. Health Bloomberg 210505 18h19m India Drugmaker Warning; Moderna Booster Effective: Virus Update (Bloomberg) -- Indian drugmakers are warning that halting some cargo flights from China could disrupt the global drug supply chain. China supplies 60% to 70% of the raw materials used by Indian pharmaceutical firms as well as ingredients for finished medicines sent worldwide, according to Mahesh Doshi, national president for the Indian Drug Manufacturers’ Association.Moderna Inc. said mid-stage trials showed its booster shots were effective against strains of the coronavirus that emerged from Brazil and South Africa. Canada became the first nation to clear the Pfizer-BioNTech coronavirus vaccine for adolescents.The U.K. insisted a meeting of top Group of Seven diplomats in London should go ahead after India’s foreign minister said he would self-isolate over possible exposure to coronavirus. Meanwhile, new research suggests deaths from Covid-19 in India may double from current levels.Key DevelopmentsGlobal Tracker: Cases top 154.6 million; deaths exceed 3.23 millionVaccine Tracker: More than 1.21 billion doses have been givenModerna Covid booster shots prove effective against variants (Video)Vaccines work on this India variant. Experts fret about the nextHere comes the Covid-19 community corps and they want youWhat are vaccine passports and how would they work?: QuickTakeSubscribe to a daily update on the virus from Bloomberg’s Prognosis team here. Click CVID on the terminal for global data on cases and deaths.Thailand Steps Up Virus Stimulus Spending (8 a.m. HK)Thailand is planning to spend billions of dollars in providing financial relief to low-income groups to cope with the economic hit from the biggest Covid-19 outbreak sweeping the nation since the pandemic began.The cabinet gave in-principle approval on Wednesday for fiscal stimulus measures at a cost of 85.5 billion baht ($2.8 billion). It also proposed 140 billion baht worth of spending for co-payment and e-voucher programs and more cash handouts to welfare cardholders and special groups, officials said.Philippines Could Get 7 Million Doses in May (8 a.m. HK)The Philippines’ coronavirus inoculation drive could leap this month, with the possibility of increasing vaccine supplies to about 7 million shots from 4 million, which could lead to a further reopening of the economy.Kuala Lumpur Tightens Movement Restrictions (8 a.m. HK)Malaysia tightened restrictions on movements in the capital Kuala Lumpur to stem the rise in new Covid-18 infections, a day after imposing similar curbs in Selangor, its richest state.The movement control order, or MCO, will stay in force from May 7 to May 20, Defense Minister Ismail Sabri Yaakob said in a statement on Wednesday, adding the protocols already in place for other areas under MCO will apply.Case Cluster at Hanoi Hospital Grows (7:23 a.m. HK)Vietnam reported eight more infections linked to a cluster in the National Hospital for Tropical Diseases Campus of Dong Anh in Hanoi, taking the tally in the center to 22, the health ministry’s newspaper Suc Khoe Doi Song reported.The nation has reported 3,030 virus infections, including 64 local cases from April 27 when the country confirmed the first domestic patient in a month, and 35 deaths as of May 6 morning, the newspaper reported.Vietnam has ordered a strict border control and mandatory quarantines of three weeks while imposing some movement restrictions as it traces the recent flare up in coronavirus cases to overseas travelers.China Flight Halt May Snarl Supplies (6:50 a.m. HK)Drugmakers in India warn that a halt on some cargo flights from China could imperil an important link in the global pharmaceutical supply chain.The U.S. relies heavily on India to stock its medicine cabinets, and any slowdown in output could leave pharmacies short of drugs used regularly by millions of Americans.On April 26, China’s state-run Sichuan Airlines suspended cargo flights to India for 15 days amid an alarming second Covid-19 outbreak there. If the flights remain on hold, the drug industry fears “cascading effects on its entire supply chain,” Mahesh Doshi, national president for the Indian Drug Manufacturers’ Association, wrote in an April 29 letter to India’s external affairs minister.Argentina Has Record Number of Daily Deaths (6:45 a.m. HK)Argentina reported a record 663 deaths in the last 24 hours for a total of 65,865, according to the country’s evening report.There were 24,079 new Covid-19 cases reported, bringing the total to 3,071,496.Novavax Shows Efficacy Against Variant (5:41 p.m. NY)Novavax said initial primary analysis of Phase 2B results for its vaccine showed efficacy against a South African variant of the coronavirus.Among healthy adults without HIV, the Novavax vaccine showed efficacy of 60% in the initial analysis and 55% in the subsequent complete analysis, the company said.Novavax may have lost the race on vaccinating millions of Americans but a successful trial can still help developing nations like India and Brazil where shots are in high demand.Canada May Mix Vaccines Amid Supply Crunch (4:47 p.m. NY)Canada is considering allowing patients to receive two different types of vaccines as the country deals with shortages of shots from AstraZeneca Plc and Moderna Inc.Federal health officials are closely watching a U.K.-based trial in which participants received two kinds of shots. Results are expected in the next month or so, said Supriya Sharma, chief medical adviser at Health Canada.If adopted, the new protocol would mark another major deviation from original vaccine guidelines. Canada has opted to extend the length of time between mRNA vaccines from the recommended three to four weeks to as long as four months, in order to stretch supplies.Colorado Woman Pro-Vaccine Despite Clot (4:43 p.m. NY)A Colorado woman who suffered a rare blood clot after receiving Johnson & Johnson’s vaccine urged others to get a shot just the same.Morgan Wolfe, 40, of Denver, told the Colorado Sun: “Despite everything that’s happened, I definitely still think that it’s important to keep on pushing for as much of the country and as much of the world to get vaccinated as possible”“Obviously, I had a bad reaction to this one. And that’s unfortunate for me, but I do still think that there’s a place for it in the overall strategy,” Wolfe said.Moderna Booster Effective on Variants (4:08 p.m. NY)Moderna Inc.’s booster shots gave positive results against immune system-evading strains that emerged in South Africa and Brazil, according to early results from a mid-stage trial.Two types of booster shots studied spurred higher levels of virus-halting antibodies, Moderna said in a statement. One of the boosters is an additional low-dose shot of its existing vaccine, while the other type is customized against the South Africa strain.“We are encouraged by these new data, which reinforce our confidence that our booster strategy should be protective against these newly detected variants,” Stephane Bancel, Moderna’s chief executive officer, said in a statement. “We will continue to make as many updates to our Covid-19 vaccine as necessary to control the pandemic.”U.S. to Back Waiver of Vaccine IP Protections (3:25 p.m. NY)The U.S. will back a proposal to waive intellectual-property protections for Covid-19 vaccines, joining an effort to increase global supply and access to the life-saving shots as the gap between rich and poor nations widens.“We are for the waiver at the WTO, we are for what the proponents of the waiver are trying to accomplish, which is better access, more manufacturing capability, more shots in arms,” U.S. Trade Representative Katherine Tai said in an interview on Wednesday.The Biden administration will now actively take part in negotiations for the text of the waiver at the World Trade Organization and encourage other countries to back it, Tai said.She acknowledged the talks will take time and “will not be easy,” given the complexity of the issue and the fact that the Geneva-based WTO is a member-driven organization that can only make decisions based on consensus.Biden Touts Relief Funds for Restaurants (3 p.m. NY)President Joe Biden visited a Washington restaurant owned in part by Mexican immigrants on Wednesday to highlight $28.6 billion in federal aid for restaurants that struggled during the pandemic.Under the Covid-19 relief measure Biden signed in March, restaurants can apply for grants ranging from $1,000 to $5 million per location, or $10 million for those with 20 or fewer locations.Pandemic Delays FDA Plant Inspections (2:20 p.m. NY)Pandemic disruptions severely hampered U.S. regulators’ ability to inspect drug and device makers’ manufacturing plants, delaying at least 68 applications for approval to market new products, according to a Food and Drug Administration review.Seven of the delayed applications were mission-critical, meaning they represented a medical advancement, the agency said Wednesday in its report, and six of those were for new drugs. The delayed applications were among 600 where the FDA required a factory inspection before approval decisions.Yankees, Mets to Segregate Unvaccinated Fans (12:07 p.m. NY)New York Yankees and Mets stadiums will reopen to all fans on May 19, with separate sections for vaccinated and unvaccinated spectators.Those who are vaccinated can sit together at 100% capacity, as long as they wear masks. The unvaccinated fans will need to wear masks and also observe a 6-foot (1.8-meter) social distancing rule, which works out to about 33% capacity in those sections, Governor Andrew Cuomo said Wednesday.Fans will be able to get vaccines at the games, under a deal between the state and the teams. Those who get a shot at a game will get a free ticket to another game, Cuomo said. New York joins several other states offering incentives for vaccines as the pace of inoculations slow.The governor also announced that Broadway tickets will go on sale Thursday, with shows starting Sept. 14 at full capacity, Cuomo said.U.S. Cases Could See ‘Sharp Decline’: CDC (11:20 a.m. NY)U.S. Covid-19 cases could see a sharp decline by July if nationwide vaccination efforts continue to be successful, according to the Centers for Disease Control and Prevention.Researchers used scenario modeling techniques to show long-term projections of potential trends in Covid-19 cases, hospitalizations and deaths in data released Wednesday in the agency’s Morbidity and Mortality Weekly Report.Canada Clears Pfizer Shot for Teens (10:39 a.m. NY)Canadian public health officials authorized the use of the Pfizer Inc.-BioNTech SE Covid vaccine for teenagers, making Canada the first nation to do so. Supriya Sharma, chief medical adviser with Health Canada, made the announcement Wednesday at a press conference. The department determined the vaccine was “safe and effective” for the younger age group, Sharma said. The U.S. is considering similar action.G-7 Meeting Goes Ahead in U.K. (7:06 a.m. NY)The U.K. insisted a meeting of top Group of Seven diplomats in London should go ahead after India’s foreign minister Subrahmanyam Jaishankar said he would self-isolate over possible exposure to coronavirus.The news risked derailing a high-profile event that marked the G-7 debut of U.S. Secretary of State Antony Blinken. Britain is hosting the gathering, which began on Tuesday.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. Business Bloomberg 210505 18h18m Brazil Pledges Another ‘Sharp’ Rate Hike to Hit Inflation Target (Bloomberg) -- Discover what’s driving the global economy and what it means for policy makers, businesses, investors and you with The New Economy Daily. Sign up hereBrazil’s central bank lifted its benchmark interest rate by 75 basis points and promised another hike of the same size next month in a renewed push to bring inflation back to target.The bank on Wednesday raised the Selic to 3.5%, in line with estimates from all economists in a Bloomberg survey and the guidance given by policy makers at their prior meeting in March. If it makes good on its promise, the bank will have raised borrowing costs by 225 basis points to 4.25% by June.“A partial normalization of the policy rate remains appropriate to keep some degree of monetary stimulus during the economic recovery,” central bank board members in wrote in a statement accompanying their decision. “However, the Committee emphasizes that there is no commitment with this plan, and that future steps of monetary policy could be adjusted to assure the achievement of the inflation target.”The bank, led by its President Roberto Campos Neto, is acting to rein in inflation that’s surged above the target ceiling to a four-year high. Food and fuel costs have jumped in recent months, and the government recently restarted emergency aid that will firm up demand. Put together, analysts see consumer prices above target this year and next despite an incipient recovery.What Bloomberg Economics Says“The central bank tried to reach a compromise: it promised another sharp rate hike of 75 basis points in the next meeting, but warned that it is not ready yet to fully normalize monetary policy. Despite acknowledging the decline in underlying inflation and mentioning -- for the first time ever -- its dual mandate, we believe that the overall tone of the statement was somewhat hawkish.”--Adriana Dupita, Latin America economistClick here for the full reportThe decision makes room for the real to extend recent gains. The Brazilian currency is the best performer among majors in the past month, up 4.4% amid rising commodity prices. A stronger exchange rate helps fight inflation by making imports less expensive.Real Has Scope to Gain After BCB’s Hiking Signal: Inside Brazil“They are continuing the hawkish tilt,” said Sacha Tihanyi, head of emerging market strategy at TD Securities in Toronto. “Hike aggressively sooner, and then create some breathing space for the real.”Nearing 8%For the first time, policy makers mentioned their secondary mandate of fostering full employment, introduced in the same law that gave the bank its long-sought formal autonomy earlier this year. Yet they offered a positive outlook, saying recent economic indicators have been better than expected despite the pandemic, and predicting uncertainties over growth to gradually return to normal.Last month, President Jair Bolsonaro’s administration started paying out another round of monthly stipends at a total cost of 44 billion reais ($8.2 billion). Lawmakers have recently indicated they will seek an extension of that aid if the government does not accelerate plans for a new social program as the coronavirus continues to spread through the country.Read More: Brazil’s Budget Foreshadows Another Year of Massive SpendingConsumer prices rose 6.17% in the year through mid-April, and many economists see that reading approaching 8% in May. The central bank targets annual inflation at 3.75% this year, with a tolerance range of plus or minus 1.5 percentage points.In their statement, policy makers wrote various measures of underlying inflation are already at the top of the range compatible with hitting their target. Complicating matters, commodity prices continue to increase, and higher energy costs are pressuring prices in the short-term.“The central bank is signaling it plans to get to a 5% Selic in 75-basis point hikes, though it leaves the space to change its mind,” said David Beker, chief Brazil economist at Bank of America Corp.(Updates with central bank statement in third paragraph, economist quote in fifth)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. Business Bloomberg 210505 18h46m Asia Stocks Climb After U.S. Tech Sector Declines: Markets Wrap (Bloomberg) -- Asia stocks rose in early trade Thursday after technology shares weighed on U.S. markets, offsetting optimism over solid corporate earnings and economic reports. Bonds pared overnight gains.Shares opened higher in Australia and Japan, where trading resumes after holidays. Futures pointed higher in Hong Kong and U.S. contracts were little changed after the tech-heavy Nasdaq 100 ended in the red, while the S&P 500 notched a small gain. Boston Federal Reserve President Eric Rosengren suggested that the U.S. mortgage market no longer needs as much support, advancing the debate on when the central bank might start tapering its monthly bond purchases.The benchmark 10-year Treasury yield edged higher in Asia’s morning. The U.S. government said it will sell $126 billion of long-dated bonds in next week’s refunding, unchanged from last quarter, which suggests its financing needs may have peaked.As the world’s largest economy rebounds, investors are increasingly focused on when the central bank might start throttling back its emergency support. Economists surveyed by Bloomberg expect the Fed will announce a reduction in the pace of bond purchases in the fourth quarter. While Chairman Jerome Powell hasn’t yet shifted from his message that it’s too soon to discuss such a move, policy makers have begun to address the issue more directly.“The housing market is quite strong right now and housing prices have been going up,” Rosengren told Bloomberg TV. “So the need for buying mortgage-backed securities at the pace that we have been doing probably is not nearly as needed as it was much earlier in the recovery.”Meanwhile, the surge in commodity prices continues to fuel debate over whether price pressures could get out of hand. The Bloomberg Commodity Spot Index returned to its highest level since 2011 as growth bets boost demand, while poor weather and transportation bottlenecks threaten supply. U.S. lumber futures notched fresh record highs as sawmills try to keep up with rebounding demand. Oil gave up earlier gains as traders assessed an increase in gasoline stockpiles.Here are some key events to watch this week:Bank of England rate decision ThursdayThe April U.S. employment report is released on FridayThese are some of the main moves in markets:StocksS&P 500 futures were steady as of 9:25 a.m. in Tokyo. The index was little changedNasdaq 100 futures rose less than 0.1% after the gauge fell 0.3%Japan’s Topix Index rose 1.5%South Korea’s Kospi edged up 0.1%Australia’s S&P/ASX 200 Index climbed less than 0.1%Hong Kong’s Hang Seng Index futures rose 0.3% earlierCurrenciesThe Bloomberg Dollar Spot Index was steadyThe Japanese yen was at 109.24 per dollarThe offshore yuan was at 6.4845 per dollarThe euro was little changed at $1.2007BondsThe yield on 10-year Treasuries rose two basis points to 1.58% Australia’s 10-year yield slipped three basis points to 1.71%CommoditiesWest Texas Intermediate crude fell 0.8% to $65.13 a barrelGold was down 0.1% at $1,784.66 an ounceFor 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. Business Business Reuters 210505 16h52m Bank of England to say UK recovery is accelerating The Bank of England will say on Thursday that Britain's economy is heading for a much stronger recovery this year than it previously expected and it might start to slow its pandemic emergency support. The BoE forecast in February that the world's fifth-biggest economy would grow by 5% in 2021, having slumped by 10% in 2020. That was a bigger hit than in most other European economies after Prime Minister Boris Johnson was slower to impose a coronavirus lockdown and had to keep it in place for longer in an economy heavily reliant on face-to-face consumer services. Business Bloomberg 210505 16h52m Peloton Recall Tests Analyst Devotion as Stock Slump Deepens (Bloomberg) -- Peloton Interactive Inc.’s earnings report on Thursday was supposed to be the company’s chance to show off faster product deliveries. Instead, the equipment-maker finds itself in a tight spot over treadmill recalls that has investors second-guessing their devotion to a foundering stock.After weeks of pushing back against U.S. regulator warnings about Peloton’s treadmills following the death of a child and other safety incidents, the recall jarred traders and even prompted a rebuke from a senator. The stock sank 15%, the most in six months, as investors considered the costs in addition to potential knock-on effects that could threaten sales growth.“This may have other unquantifiable impacts to long-term demand,” said Ed Yruma, a KeyBanc analyst. Yruma, who has a buy-equivalent rating, said he would be re-evaluating his financial projections after Peloton’s earnings call on Thursday afternoon.Investors’ love affair with Peloton was already strained before the recalls.Shares of the the New York-based company had fallen 36% this year as it struggled with extended delivery times and the easing of Covid-related lockdowns raised concerns about sales growth in coming quarters.The stock is now the worst performer in the Nasdaq 100 Stock Index after soaring more than fivefold in 2020. Still, of the 29 analysts tracked by Bloomberg that cover Peloton, all but five were recommending investors buy the stock ahead of Wednesday’s news. Wall Street’s optimism combined with sinking shares have pushed the gap between analyst targets and the stock price to 90%, the widest margin since Peloton’s 2019 market debut.Peloton’s predicament is reminiscent of those endured by other consumer-facing companies that were hit with blows to their reputations at a time they were enjoying a honeymoon with Wall Street analysts. Usually, the path to recovery is neither swift nor sure.After Chipotle Mexican Grill Inc. grappled with diners being sickened by food-borne illnesses, the stock needed almost four years to retrace the highs touched in 2015. Lululemon lost some of its halo last decade after complaints about the fabric quality in yoga pants -- a situation worsened when the company founder suggested in 2013 that the gripes arose because the clothes just didn’t work “for some women’s bodies.” That stock took about six years to climb back into record territory.Prior to the recall, Peloton bulls had been banking on a strong earnings report as a potential rally starter, with expectations for progress in fixing shipping delays after the company pledged to spend more than $100 million to improve delivery times. The focus has now shifted to details about the recall, including costs, how Peloton plans to implement fixes and the fate of its new treadmill model that was set to debut in the U.S. later this month.In earnings calls with analysts over the past several months, Peloton executives touted how the cheaper Tread model beat sales expectations in the U.K., saying that it could eventually be a “rocket ship” for the company. The treadmill opportunity was potentially larger than bikes, they said, and expected its impact to be larger in fiscal 2022.Long-Term CommitmentIn spite of a near term hit to the company’s bottom line and potentially to its reputation amid the likelihiood for more lawsuits, most analysts are still positive on Peloton’s ability to maintain a rapid pace of revenue expansion. As of late afternoon Wednesday, Peloton got only one downgrade, a cut to neutral from buy, at Bank of America.“We acknowledge that this recall will likely result in significant near-term one time financial costs and operational disruption, with potential reputational damage,” said Truist analyst Youssef Squali, who has a buy rating.While Squali anticipates the new treadmill release will probably be delayed, he estimates that treadmill sales account for less than 10% of Peloton’s revenue and said the company’s long-term growth prospects remain intact.Peloton’s “long-term standing (after it puts this issue behind it) and opportunity within this massive segment remain strong,” he wrote in a research note on Wednesday.What Bloomberg Intelligence said:The recall could lead to a financial impact of $550-$600 million, assuming a 100% recall rate. The near-term hit on growth may not be significant, as we calculate more than 90% of its hardware revenue comes from bikes.- Amine Bensaid, BI analyst(Adds details of other consumer product crises beginning 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. Howell date : 210505 18h41m54s Health Bloomberg 210505 18h19m India Drugmaker Warning; Moderna Booster Effective: Virus Update (Bloomberg) -- Indian drugmakers are warning that halting some cargo flights from China could disrupt the global drug supply chain. China supplies 60% to 70% of the raw materials used by Indian pharmaceutical firms as well as ingredients for finished medicines sent worldwide, according to Mahesh Doshi, national president for the Indian Drug Manufacturers’ Association.Moderna Inc. said mid-stage trials showed its booster shots were effective against strains of the coronavirus that emerged from Brazil and South Africa. Canada became the first nation to clear the Pfizer-BioNTech coronavirus vaccine for adolescents.The U.K. insisted a meeting of top Group of Seven diplomats in London should go ahead after India’s foreign minister said he would self-isolate over possible exposure to coronavirus. Meanwhile, new research suggests deaths from Covid-19 in India may double from current levels.Key DevelopmentsGlobal Tracker: Cases top 154.6 million; deaths exceed 3.23 millionVaccine Tracker: More than 1.21 billion doses have been givenModerna Covid booster shots prove effective against variants (Video)Vaccines work on this India variant. Experts fret about the nextHere comes the Covid-19 community corps and they want youWhat are vaccine passports and how would they work?: QuickTakeSubscribe to a daily update on the virus from Bloomberg’s Prognosis team here. Click CVID on the terminal for global data on cases and deaths.Thailand Steps Up Virus Stimulus Spending (8 a.m. HK)Thailand is planning to spend billions of dollars in providing financial relief to low-income groups to cope with the economic hit from the biggest Covid-19 outbreak sweeping the nation since the pandemic began.The cabinet gave in-principle approval on Wednesday for fiscal stimulus measures at a cost of 85.5 billion baht ($2.8 billion). It also proposed 140 billion baht worth of spending for co-payment and e-voucher programs and more cash handouts to welfare cardholders and special groups, officials said.Philippines Could Get 7 Million Doses in May (8 a.m. HK)The Philippines’ coronavirus inoculation drive could leap this month, with the possibility of increasing vaccine supplies to about 7 million shots from 4 million, which could lead to a further reopening of the economy.Kuala Lumpur Tightens Movement Restrictions (8 a.m. HK)Malaysia tightened restrictions on movements in the capital Kuala Lumpur to stem the rise in new Covid-18 infections, a day after imposing similar curbs in Selangor, its richest state.The movement control order, or MCO, will stay in force from May 7 to May 20, Defense Minister Ismail Sabri Yaakob said in a statement on Wednesday, adding the protocols already in place for other areas under MCO will apply.Case Cluster at Hanoi Hospital Grows (7:23 a.m. HK)Vietnam reported eight more infections linked to a cluster in the National Hospital for Tropical Diseases Campus of Dong Anh in Hanoi, taking the tally in the center to 22, the health ministry’s newspaper Suc Khoe Doi Song reported.The nation has reported 3,030 virus infections, including 64 local cases from April 27 when the country confirmed the first domestic patient in a month, and 35 deaths as of May 6 morning, the newspaper reported.Vietnam has ordered a strict border control and mandatory quarantines of three weeks while imposing some movement restrictions as it traces the recent flare up in coronavirus cases to overseas travelers.China Flight Halt May Snarl Supplies (6:50 a.m. HK)Drugmakers in India warn that a halt on some cargo flights from China could imperil an important link in the global pharmaceutical supply chain.The U.S. relies heavily on India to stock its medicine cabinets, and any slowdown in output could leave pharmacies short of drugs used regularly by millions of Americans.On April 26, China’s state-run Sichuan Airlines suspended cargo flights to India for 15 days amid an alarming second Covid-19 outbreak there. If the flights remain on hold, the drug industry fears “cascading effects on its entire supply chain,” Mahesh Doshi, national president for the Indian Drug Manufacturers’ Association, wrote in an April 29 letter to India’s external affairs minister.Argentina Has Record Number of Daily Deaths (6:45 a.m. HK)Argentina reported a record 663 deaths in the last 24 hours for a total of 65,865, according to the country’s evening report.There were 24,079 new Covid-19 cases reported, bringing the total to 3,071,496.Novavax Shows Efficacy Against Variant (5:41 p.m. NY)Novavax said initial primary analysis of Phase 2B results for its vaccine showed efficacy against a South African variant of the coronavirus.Among healthy adults without HIV, the Novavax vaccine showed efficacy of 60% in the initial analysis and 55% in the subsequent complete analysis, the company said.Novavax may have lost the race on vaccinating millions of Americans but a successful trial can still help developing nations like India and Brazil where shots are in high demand.Canada May Mix Vaccines Amid Supply Crunch (4:47 p.m. NY)Canada is considering allowing patients to receive two different types of vaccines as the country deals with shortages of shots from AstraZeneca Plc and Moderna Inc.Federal health officials are closely watching a U.K.-based trial in which participants received two kinds of shots. Results are expected in the next month or so, said Supriya Sharma, chief medical adviser at Health Canada.If adopted, the new protocol would mark another major deviation from original vaccine guidelines. Canada has opted to extend the length of time between mRNA vaccines from the recommended three to four weeks to as long as four months, in order to stretch supplies.Colorado Woman Pro-Vaccine Despite Clot (4:43 p.m. NY)A Colorado woman who suffered a rare blood clot after receiving Johnson & Johnson’s vaccine urged others to get a shot just the same.Morgan Wolfe, 40, of Denver, told the Colorado Sun: “Despite everything that’s happened, I definitely still think that it’s important to keep on pushing for as much of the country and as much of the world to get vaccinated as possible”“Obviously, I had a bad reaction to this one. And that’s unfortunate for me, but I do still think that there’s a place for it in the overall strategy,” Wolfe said.Moderna Booster Effective on Variants (4:08 p.m. NY)Moderna Inc.’s booster shots gave positive results against immune system-evading strains that emerged in South Africa and Brazil, according to early results from a mid-stage trial.Two types of booster shots studied spurred higher levels of virus-halting antibodies, Moderna said in a statement. One of the boosters is an additional low-dose shot of its existing vaccine, while the other type is customized against the South Africa strain.“We are encouraged by these new data, which reinforce our confidence that our booster strategy should be protective against these newly detected variants,” Stephane Bancel, Moderna’s chief executive officer, said in a statement. “We will continue to make as many updates to our Covid-19 vaccine as necessary to control the pandemic.”U.S. to Back Waiver of Vaccine IP Protections (3:25 p.m. NY)The U.S. will back a proposal to waive intellectual-property protections for Covid-19 vaccines, joining an effort to increase global supply and access to the life-saving shots as the gap between rich and poor nations widens.“We are for the waiver at the WTO, we are for what the proponents of the waiver are trying to accomplish, which is better access, more manufacturing capability, more shots in arms,” U.S. Trade Representative Katherine Tai said in an interview on Wednesday.The Biden administration will now actively take part in negotiations for the text of the waiver at the World Trade Organization and encourage other countries to back it, Tai said.She acknowledged the talks will take time and “will not be easy,” given the complexity of the issue and the fact that the Geneva-based WTO is a member-driven organization that can only make decisions based on consensus.Biden Touts Relief Funds for Restaurants (3 p.m. NY)President Joe Biden visited a Washington restaurant owned in part by Mexican immigrants on Wednesday to highlight $28.6 billion in federal aid for restaurants that struggled during the pandemic.Under the Covid-19 relief measure Biden signed in March, restaurants can apply for grants ranging from $1,000 to $5 million per location, or $10 million for those with 20 or fewer locations.Pandemic Delays FDA Plant Inspections (2:20 p.m. NY)Pandemic disruptions severely hampered U.S. regulators’ ability to inspect drug and device makers’ manufacturing plants, delaying at least 68 applications for approval to market new products, according to a Food and Drug Administration review.Seven of the delayed applications were mission-critical, meaning they represented a medical advancement, the agency said Wednesday in its report, and six of those were for new drugs. The delayed applications were among 600 where the FDA required a factory inspection before approval decisions.Yankees, Mets to Segregate Unvaccinated Fans (12:07 p.m. NY)New York Yankees and Mets stadiums will reopen to all fans on May 19, with separate sections for vaccinated and unvaccinated spectators.Those who are vaccinated can sit together at 100% capacity, as long as they wear masks. The unvaccinated fans will need to wear masks and also observe a 6-foot (1.8-meter) social distancing rule, which works out to about 33% capacity in those sections, Governor Andrew Cuomo said Wednesday.Fans will be able to get vaccines at the games, under a deal between the state and the teams. Those who get a shot at a game will get a free ticket to another game, Cuomo said. New York joins several other states offering incentives for vaccines as the pace of inoculations slow.The governor also announced that Broadway tickets will go on sale Thursday, with shows starting Sept. 14 at full capacity, Cuomo said.U.S. Cases Could See ‘Sharp Decline’: CDC (11:20 a.m. NY)U.S. Covid-19 cases could see a sharp decline by July if nationwide vaccination efforts continue to be successful, according to the Centers for Disease Control and Prevention.Researchers used scenario modeling techniques to show long-term projections of potential trends in Covid-19 cases, hospitalizations and deaths in data released Wednesday in the agency’s Morbidity and Mortality Weekly Report.Canada Clears Pfizer Shot for Teens (10:39 a.m. NY)Canadian public health officials authorized the use of the Pfizer Inc.-BioNTech SE Covid vaccine for teenagers, making Canada the first nation to do so. Supriya Sharma, chief medical adviser with Health Canada, made the announcement Wednesday at a press conference. The department determined the vaccine was “safe and effective” for the younger age group, Sharma said. The U.S. is considering similar action.G-7 Meeting Goes Ahead in U.K. (7:06 a.m. NY)The U.K. insisted a meeting of top Group of Seven diplomats in London should go ahead after India’s foreign minister Subrahmanyam Jaishankar said he would self-isolate over possible exposure to coronavirus.The news risked derailing a high-profile event that marked the G-7 debut of U.S. Secretary of State Antony Blinken. Britain is hosting the gathering, which began on Tuesday.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. Business Bloomberg 210505 18h18m Brazil Pledges Another ‘Sharp’ Rate Hike to Hit Inflation Target (Bloomberg) -- Discover what’s driving the global economy and what it means for policy makers, businesses, investors and you with The New Economy Daily. Sign up hereBrazil’s central bank lifted its benchmark interest rate by 75 basis points and promised another hike of the same size next month in a renewed push to bring inflation back to target.The bank on Wednesday raised the Selic to 3.5%, in line with estimates from all economists in a Bloomberg survey and the guidance given by policy makers at their prior meeting in March. If it makes good on its promise, the bank will have raised borrowing costs by 225 basis points to 4.25% by June.“A partial normalization of the policy rate remains appropriate to keep some degree of monetary stimulus during the economic recovery,” central bank board members in wrote in a statement accompanying their decision. “However, the Committee emphasizes that there is no commitment with this plan, and that future steps of monetary policy could be adjusted to assure the achievement of the inflation target.”The bank, led by its President Roberto Campos Neto, is acting to rein in inflation that’s surged above the target ceiling to a four-year high. Food and fuel costs have jumped in recent months, and the government recently restarted emergency aid that will firm up demand. Put together, analysts see consumer prices above target this year and next despite an incipient recovery.What Bloomberg Economics Says“The central bank tried to reach a compromise: it promised another sharp rate hike of 75 basis points in the next meeting, but warned that it is not ready yet to fully normalize monetary policy. Despite acknowledging the decline in underlying inflation and mentioning -- for the first time ever -- its dual mandate, we believe that the overall tone of the statement was somewhat hawkish.”--Adriana Dupita, Latin America economistClick here for the full reportThe decision makes room for the real to extend recent gains. The Brazilian currency is the best performer among majors in the past month, up 4.4% amid rising commodity prices. A stronger exchange rate helps fight inflation by making imports less expensive.Real Has Scope to Gain After BCB’s Hiking Signal: Inside Brazil“They are continuing the hawkish tilt,” said Sacha Tihanyi, head of emerging market strategy at TD Securities in Toronto. “Hike aggressively sooner, and then create some breathing space for the real.”Nearing 8%For the first time, policy makers mentioned their secondary mandate of fostering full employment, introduced in the same law that gave the bank its long-sought formal autonomy earlier this year. Yet they offered a positive outlook, saying recent economic indicators have been better than expected despite the pandemic, and predicting uncertainties over growth to gradually return to normal.Last month, President Jair Bolsonaro’s administration started paying out another round of monthly stipends at a total cost of 44 billion reais ($8.2 billion). Lawmakers have recently indicated they will seek an extension of that aid if the government does not accelerate plans for a new social program as the coronavirus continues to spread through the country.Read More: Brazil’s Budget Foreshadows Another Year of Massive SpendingConsumer prices rose 6.17% in the year through mid-April, and many economists see that reading approaching 8% in May. The central bank targets annual inflation at 3.75% this year, with a tolerance range of plus or minus 1.5 percentage points.In their statement, policy makers wrote various measures of underlying inflation are already at the top of the range compatible with hitting their target. Complicating matters, commodity prices continue to increase, and higher energy costs are pressuring prices in the short-term.“The central bank is signaling it plans to get to a 5% Selic in 75-basis point hikes, though it leaves the space to change its mind,” said David Beker, chief Brazil economist at Bank of America Corp.(Updates with central bank statement in third paragraph, economist quote in fifth)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. Business Bloomberg 210505 17h43m Asia Set for Muted Start After U.S. Tech Declines: Markets Wrap (Bloomberg) -- Asia stocks looked set for a muted start Thursday after technology shares weighed on U.S. markets, offsetting optimism over solid corporate earnings and economic reports. Treasuries climbed.Futures pointed to modest gains in Hong Kong and Japan, where trading resumes after holidays. U.S. futures were little changed after the tech-heavy Nasdaq 100 ended in the red, while the S&P 500 notched a small gain. Boston Federal Reserve President Eric Rosengren suggested that the U.S. mortgage market no longer needs the support of such heavy monthly bond purchases, advancing the debate on when the central bank might start tapering asset purchases.The benchmark 10-year Treasury yield slipped to 1.57%. The U.S. Treasury’s auction schedule suggested the government’s financing needs may have peaked. The dollar was little changed. Oil gave up earlier gains as traders assessed an increase in gasoline stockpiles.As the world’s largest economy rebounds, investors are increasingly focused on when the central bank might start throttling back its emergency support. Economists surveyed by Bloomberg expect the Fed will announce a reduction in the pace of bond purchases in the fourth quarter. While Chairman Jerome Powell hasn’t yet shifted from his message that it’s too soon to discuss such a move, policy makers have begun to address the issue more directly.“The housing market is quite strong right now and housing prices have been going up,” Rosengren told Bloomberg TV. “So the need for buying mortgage-backed securities at the pace that we have been doing probably is not nearly as needed as it was much earlier in the recovery.”Meanwhile, the surge in commodity prices continues to fuel debate over whether price pressures could start to get out of hand. The Bloomberg Commodity Spot Index returned to its highest level since 2011 as growth bets boost demand, while poor weather and transportation bottlenecks threaten supply. U.S. lumber futures extended their steep rally to fresh record highs as sawmills try to keep up with surging demand.Here are some key events to watch this week:Bank of England rate decision ThursdayThe April U.S. employment report is released on FridayThese are some of the main moves in markets:StocksS&P 500 futures dipped less than 0.1% as of 8:25 a.m. in Tokyo. The S&P 500 was little changedNasdaq 100 futures were steady. The Nasdaq 100 fell 0.3%Australia’s S&P/ASX 200 Index futures were up 0.1%Hong Kong’s Hang Seng Index futures rose 0.3% earlierCurrenciesThe Japanese yen was at 109.20 per dollarThe offshore yuan was at 6.4865 per dollarThe Bloomberg Dollar Spot Index was steadyThe euro was little changed at $1.2007BondsThe yield on 10-year Treasuries declined three basis points to 1.57% in U.S. hoursCommoditiesWest Texas Intermediate crude fell 0.8% to $65.13 a barrelGold was at $1,785.50 an ounceFor 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. Business Business Reuters 210505 16h41m Bank of England to say UK recovery is accelerating The Bank of England will say on Thursday that Britain's economy is heading for a much stronger recovery this year than it previously expected and it might start to slow its pandemic emergency support. The BoE forecast in February that the world's fifth-biggest economy would grow by 5% in 2021, having slumped by 10% in 2020. That was a bigger hit than in most other European economies after Prime Minister Boris Johnson was slower to impose a coronavirus lockdown and had to keep it in place for longer in an economy heavily reliant on face-to-face consumer services. Business Bloomberg 210505 16h41m Peloton Recall Tests Analyst Devotion as Stock Slump Deepens (Bloomberg) -- Peloton Interactive Inc.’s earnings report on Thursday was supposed to be the company’s chance to show off faster product deliveries. Instead, the equipment-maker finds itself in a tight spot over treadmill recalls that has investors second-guessing their devotion to a foundering stock.After weeks of pushing back against U.S. regulator warnings about Peloton’s treadmills following the death of a child and other safety incidents, the recall jarred traders and even prompted a rebuke from a senator. The stock sank 15%, the most in six months, as investors considered the costs in addition to potential knock-on effects that could threaten sales growth.“This may have other unquantifiable impacts to long-term demand,” said Ed Yruma, a KeyBanc analyst. Yruma, who has a buy-equivalent rating, said he would be re-evaluating his financial projections after Peloton’s earnings call on Thursday afternoon.Investors’ love affair with Peloton was already strained before the recalls.Shares of the the New York-based company had fallen 36% this year as it struggled with extended delivery times and the easing of Covid-related lockdowns raised concerns about sales growth in coming quarters.The stock is now the worst performer in the Nasdaq 100 Stock Index after soaring more than fivefold in 2020. Still, of the 29 analysts tracked by Bloomberg that cover Peloton, all but five were recommending investors buy the stock ahead of Wednesday’s news. Wall Street’s optimism combined with sinking shares have pushed the gap between analyst targets and the stock price to 90%, the widest margin since Peloton’s 2019 market debut.Peloton’s predicament is reminiscent of those endured by other consumer-facing companies that were hit with blows to their reputations at a time they were enjoying a honeymoon with Wall Street analysts. Usually, the path to recovery is neither swift nor sure.After Chipotle Mexican Grill Inc. grappled with diners being sickened by food-borne illnesses, the stock needed almost four years to retrace the highs touched in 2015. Lululemon lost some of its halo last decade after complaints about the fabric quality in yoga pants -- a situation worsened when the company founder suggested in 2013 that the gripes arose because the clothes just didn’t work “for some women’s bodies.” That stock took about six years to climb back into record territory.Prior to the recall, Peloton bulls had been banking on a strong earnings report as a potential rally starter, with expectations for progress in fixing shipping delays after the company pledged to spend more than $100 million to improve delivery times. The focus has now shifted to details about the recall, including costs, how Peloton plans to implement fixes and the fate of its new treadmill model that was set to debut in the U.S. later this month.In earnings calls with analysts over the past several months, Peloton executives touted how the cheaper Tread model beat sales expectations in the U.K., saying that it could eventually be a “rocket ship” for the company. The treadmill opportunity was potentially larger than bikes, they said, and expected its impact to be larger in fiscal 2022.Long-Term CommitmentIn spite of a near term hit to the company’s bottom line and potentially to its reputation amid the likelihiood for more lawsuits, most analysts are still positive on Peloton’s ability to maintain a rapid pace of revenue expansion. As of late afternoon Wednesday, Peloton got only one downgrade, a cut to neutral from buy, at Bank of America.“We acknowledge that this recall will likely result in significant near-term one time financial costs and operational disruption, with potential reputational damage,” said Truist analyst Youssef Squali, who has a buy rating.While Squali anticipates the new treadmill release will probably be delayed, he estimates that treadmill sales account for less than 10% of Peloton’s revenue and said the company’s long-term growth prospects remain intact.Peloton’s “long-term standing (after it puts this issue behind it) and opportunity within this massive segment remain strong,” he wrote in a research note on Wednesday.What Bloomberg Intelligence said:The recall could lead to a financial impact of $550-$600 million, assuming a 100% recall rate. The near-term hit on growth may not be significant, as we calculate more than 90% of its hardware revenue comes from bikes.- Amine Bensaid, BI analyst(Adds details of other consumer product crises beginning 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. Howell date : 210505 18h11m17s Business Bloomberg 210505 17h44m Asia Set for Muted Start After U.S. Tech Declines: Markets Wrap (Bloomberg) -- Asia stocks looked set for a muted start Thursday after technology shares weighed on U.S. markets, offsetting optimism over solid corporate earnings and economic reports. Treasuries climbed.Futures pointed to modest gains in Hong Kong and Japan, where trading resumes after holidays. U.S. futures were little changed after the tech-heavy Nasdaq 100 ended in the red, while the S&P 500 notched a small gain. Boston Federal Reserve President Eric Rosengren suggested that the U.S. mortgage market no longer needs the support of such heavy monthly bond purchases, advancing the debate on when the central bank might start tapering asset purchases.The benchmark 10-year Treasury yield slipped to 1.57%. The U.S. Treasury’s auction schedule suggested the government’s financing needs may have peaked. The dollar was little changed. Oil gave up earlier gains as traders assessed an increase in gasoline stockpiles.As the world’s largest economy rebounds, investors are increasingly focused on when the central bank might start throttling back its emergency support. Economists surveyed by Bloomberg expect the Fed will announce a reduction in the pace of bond purchases in the fourth quarter. While Chairman Jerome Powell hasn’t yet shifted from his message that it’s too soon to discuss such a move, policy makers have begun to address the issue more directly.“The housing market is quite strong right now and housing prices have been going up,” Rosengren told Bloomberg TV. “So the need for buying mortgage-backed securities at the pace that we have been doing probably is not nearly as needed as it was much earlier in the recovery.”Meanwhile, the surge in commodity prices continues to fuel debate over whether price pressures could start to get out of hand. The Bloomberg Commodity Spot Index returned to its highest level since 2011 as growth bets boost demand, while poor weather and transportation bottlenecks threaten supply. U.S. lumber futures extended their steep rally to fresh record highs as sawmills try to keep up with surging demand.Here are some key events to watch this week:Bank of England rate decision ThursdayThe April U.S. employment report is released on FridayThese are some of the main moves in markets:StocksS&P 500 futures dipped less than 0.1% as of 8:25 a.m. in Tokyo. The S&P 500 was little changedNasdaq 100 futures were steady. The Nasdaq 100 fell 0.3%Australia’s S&P/ASX 200 Index futures were up 0.1%Hong Kong’s Hang Seng Index futures rose 0.3% earlierCurrenciesThe Japanese yen was at 109.20 per dollarThe offshore yuan was at 6.4865 per dollarThe Bloomberg Dollar Spot Index was steadyThe euro was little changed at $1.2007BondsThe yield on 10-year Treasuries declined three basis points to 1.57% in U.S. hoursCommoditiesWest Texas Intermediate crude fell 0.8% to $65.13 a barrelGold was at $1,785.50 an ounceFor 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. Business Reuters 210505 17h41m As United weighs outsourcing catering, U.S. lawmakers demand new curbs on federal aid A group of U.S. lawmakers is demanding that airlines refrain from outsourcing jobs if they want to be eligible for a third round of federal payroll aid, after learning that United Airlines has sought bids to outsource catering work at five airports. Around two dozen members of U.S. Congress made the request to Treasury Secretary Janet Yellen, according to letters released by Unite Here, the union representing more than 2,500 workers whose jobs are at risk under United's proposal. Chicago-based United has received $7.7 billion in two COVID-19 relief deals, known as payroll support programs (PSP), to help the airline industry weather the pandemic and protect jobs. World World Business Business Health U.S. Howell date : 210505 17h40m41s Business Reuters 210505 17h01m Bank of England to say UK recovery is accelerating The Bank of England will say on Thursday that Britain's economy is heading for a much stronger recovery this year than it previously expected and it might start to slow its pandemic emergency support. The BoE forecast in February that the world's fifth-biggest economy would grow by 5% in 2021, having slumped by 10% in 2020. That was a bigger hit than in most other European economies after Prime Minister Boris Johnson was slower to impose a coronavirus lockdown and had to keep it in place for longer in an economy heavily reliant on face-to-face consumer services. World Bloomberg 210505 16h59m Moderna Booster Effective; Canada May Mix Shots: Virus Update (Bloomberg) -- Moderna Inc. said mid-stage trials showed its booster shots were effective against strains of the coronavirus that emerged from Brazil and South Africa. Canada became the first nation to clear the Pfizer-BioNTech coronavirus vaccine for adolescents.Drugmakers in India warn that halting some cargo flights from China, due to the surge in cases in India, could disrupt the global drug supply chain. The U.S. will support a proposal to waive intellectual-property protections for vaccines, joining an effort to increase global supply and close the gap between rich and poor nations.The U.K. insisted a meeting of top Group of Seven diplomats in London should go ahead after India’s foreign minister said he would self-isolate over possible exposure to coronavirus. Meanwhile, new research suggests deaths from Covid-19 in India may double from current levels.Key DevelopmentsGlobal Tracker: Cases top 154.6 million; deaths exceed 3.23 millionVaccine Tracker: More than 1.21 billion doses have been givenModerna Covid booster shots prove effective against variants (Video)Vaccines work on this India variant. Experts fret about the nextHere comes the Covid-19 community corps and they want youWhat are vaccine passports and how would they work?: QuickTakeSubscribe to a daily update on the virus from Bloomberg’s Prognosis team here. Click CVID on the terminal for global data on cases and deaths.China Flight Halt May Snarl Supplies (6:50 a.m. HK)Drugmakers in India warn that a halt on some cargo flights from China could imperil an important link in the global pharmaceutical supply chain.The U.S. relies heavily on India to stock its medicine cabinets, and any slowdown in output could leave pharmacies short of drugs used regularly by millions of Americans.On April 26, China’s state-run Sichuan Airlines suspended cargo flights to India for 15 days amid an alarming second Covid-19 outbreak there. If the flights remain on hold, the drug industry fears “cascading effects on its entire supply chain,” Mahesh Doshi, national president for the Indian Drug Manufacturers’ Association, wrote in an April 29 letter to India’s external affairs minister. That could lead to domestic shortages of essential medicines and have a severe impact on exports, she said.Argentina Has Record Number of Daily Deaths (6:45 a.m. HK)Argentina reported a record 663 deaths in the last 24 hours for a total of 65,865, according to the country’s evening report.There were 24,079 new Covid-19 cases reported, bringing the total to 3,071,496.Novavax Shows Efficacy Against Variant (5:41 p.m. NY)Novavax said initial primary analysis of Phase 2B results for its vaccine showed efficacy against a South African variant of the coronavirus.Among healthy adults without HIV, the Novavax vaccine showed efficacy of 60% in the initial analysis and 55% in the subsequent complete analysis, the company said.Novavax may have lost the race on vaccinating millions of Americans but a successful trial can still help developing nations like India and Brazil where shots are in high demand.Canada May Mix Vaccines Amid Supply Crunch (4:47 p.m. NY)Canada is considering allowing patients to receive two different types of vaccines as the country deals with shortages of shots from AstraZeneca Plc and Moderna Inc.Federal health officials are closely watching a U.K.-based trial in which participants received two kinds of shots. Results are expected in the next month or so, said Supriya Sharma, chief medical adviser at Health Canada.If adopted, the new protocol would mark another major deviation from original vaccine guidelines. Canada has opted to extend the length of time between mRNA vaccines from the recommended three to four weeks to as long as four months, in order to stretch supplies.Colorado Woman Pro-Vaccine Despite Clot (4:43 p.m. NY)A Colorado woman who suffered a rare blood clot after receiving Johnson & Johnson’s vaccine urged others to get a shot just the same.Morgan Wolfe, 40, of Denver, told the Colorado Sun: “Despite everything that’s happened, I definitely still think that it’s important to keep on pushing for as much of the country and as much of the world to get vaccinated as possible”“Obviously, I had a bad reaction to this one. And that’s unfortunate for me, but I do still think that there’s a place for it in the overall strategy,” Wolfe said.Moderna Booster Effective on Variants (4:08 p.m. NY)Moderna Inc.’s booster shots gave positive results against immune system-evading strains that emerged in South Africa and Brazil, according to early results from a mid-stage trial.Two types of booster shots studied spurred higher levels of virus-halting antibodies, Moderna said in a statement. One of the boosters is an additional low-dose shot of its existing vaccine, while the other type is customized against the South Africa strain.“We are encouraged by these new data, which reinforce our confidence that our booster strategy should be protective against these newly detected variants,” Stephane Bancel, Moderna’s chief executive officer, said in a statement. “We will continue to make as many updates to our Covid-19 vaccine as necessary to control the pandemic.”U.S. to Back Waiver of Vaccine IP Protections (3:25 p.m. NY)The U.S. will back a proposal to waive intellectual-property protections for Covid-19 vaccines, joining an effort to increase global supply and access to the life-saving shots as the gap between rich and poor nations widens.“We are for the waiver at the WTO, we are for what the proponents of the waiver are trying to accomplish, which is better access, more manufacturing capability, more shots in arms,” U.S. Trade Representative Katherine Tai said in an interview on Wednesday.The Biden administration will now actively take part in negotiations for the text of the waiver at the World Trade Organization and encourage other countries to back it, Tai said.She acknowledged the talks will take time and “will not be easy,” given the complexity of the issue and the fact that the Geneva-based WTO is a member-driven organization that can only make decisions based on consensus.Biden Touts Relief Funds for Restaurants (3 p.m. NY)President Joe Biden visited a Washington restaurant owned in part by Mexican immigrants on Wednesday to highlight $28.6 billion in federal aid for restaurants that struggled during the pandemic.Under the Covid-19 relief measure Biden signed in March, restaurants can apply for grants ranging from $1,000 to $5 million per location, or $10 million for those with 20 or fewer locations.Pandemic Delays FDA Plant Inspections (2:20 p.m. NY)Pandemic disruptions severely hampered U.S. regulators’ ability to inspect drug and device makers’ manufacturing plants, delaying at least 68 applications for approval to market new products, according to a Food and Drug Administration review.Seven of the delayed applications were mission-critical, meaning they represented a medical advancement, the agency said Wednesday in its report, and six of those were for new drugs. The delayed applications were among 600 where the FDA required a factory inspection before approval decisions.Yankees, Mets to Segregate Unvaccinated Fans (12:07 p.m. NY)New York Yankees and Mets stadiums will reopen to all fans on May 19, with separate sections for vaccinated and unvaccinated spectators.Those who are vaccinated can sit together at 100% capacity, as long as they wear masks. The unvaccinated fans will need to wear masks and also observe a 6-foot (1.8-meter) social distancing rule, which works out to about 33% capacity in those sections, Governor Andrew Cuomo said Wednesday.Fans will be able to get vaccines at the games, under a deal between the state and the teams. Those who get a shot at a game will get a free ticket to another game, Cuomo said. New York joins several other states offering incentives for vaccines as the pace of inoculations slow.The governor also announced that Broadway tickets will go on sale Thursday, with shows starting Sept. 14 at full capacity, Cuomo said.U.S. Cases Could See ‘Sharp Decline’: CDC (11:20 a.m. NY)U.S. Covid-19 cases could see a sharp decline by July if nationwide vaccination efforts continue to be successful, according to the Centers for Disease Control and Prevention.Researchers used scenario modeling techniques to show long-term projections of potential trends in Covid-19 cases, hospitalizations and deaths in data released Wednesday in the agency’s Morbidity and Mortality Weekly Report.Canada Clears Pfizer Shot for Teens (10:39 a.m. NY)Canadian public health officials authorized the use of the Pfizer Inc.-BioNTech SE Covid vaccine for teenagers, making Canada the first nation to do so. Supriya Sharma, chief medical adviser with Health Canada, made the announcement Wednesday at a press conference. The department determined the vaccine was “safe and effective” for the younger age group, Sharma said. The U.S. is considering similar action.G-7 Meeting Goes Ahead in U.K. (7:06 a.m. NY)The U.K. insisted a meeting of top Group of Seven diplomats in London should go ahead after India’s foreign minister Subrahmanyam Jaishankar said he would self-isolate over possible exposure to coronavirus.The news risked derailing a high-profile event that marked the G-7 debut of U.S. Secretary of State Antony Blinken. Britain is hosting the gathering, which began on Tuesday.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. Business Bloomberg 210505 16h55m Peloton Recall Tests Analyst Devotion as Stock Slump Deepens (Bloomberg) -- Peloton Interactive Inc.’s earnings report on Thursday was supposed to be the company’s chance to show off faster product deliveries. Instead, the equipment-maker finds itself in a tight spot over treadmill recalls that has investors second-guessing their devotion to a foundering stock.After weeks of pushing back against U.S. regulator warnings about Peloton’s treadmills following the death of a child and other safety incidents, the recall jarred traders and even prompted a rebuke from a senator. The stock sank 15%, the most in six months, as investors considered the costs in addition to potential knock-on effects that could threaten sales growth.“This may have other unquantifiable impacts to long-term demand,” said Ed Yruma, a KeyBanc analyst. Yruma, who has a buy-equivalent rating, said he would be re-evaluating his financial projections after Peloton’s earnings call on Thursday afternoon.Investors’ love affair with Peloton was already strained before the recalls.Shares of the the New York-based company had fallen 36% this year as it struggled with extended delivery times and the easing of Covid-related lockdowns raised concerns about sales growth in coming quarters.The stock is now the worst performer in the Nasdaq 100 Stock Index after soaring more than fivefold in 2020. Still, of the 29 analysts tracked by Bloomberg that cover Peloton, all but five were recommending investors buy the stock ahead of Wednesday’s news. Wall Street’s optimism combined with sinking shares have pushed the gap between analyst targets and the stock price to 90%, the widest margin since Peloton’s 2019 market debut.Peloton’s predicament is reminiscent of those endured by other consumer-facing companies that were hit with blows to their reputations at a time they were enjoying a honeymoon with Wall Street analysts. Usually, the path to recovery is neither swift nor sure.After Chipotle Mexican Grill Inc. grappled with diners being sickened by food-borne illnesses, the stock needed almost four years to retrace the highs touched in 2015. Lululemon lost some of its halo last decade after complaints about the fabric quality in yoga pants -- a situation worsened when the company founder suggested in 2013 that the gripes arose because the clothes just didn’t work “for some women’s bodies.” That stock took about six years to climb back into record territory.Prior to the recall, Peloton bulls had been banking on a strong earnings report as a potential rally starter, with expectations for progress in fixing shipping delays after the company pledged to spend more than $100 million to improve delivery times. The focus has now shifted to details about the recall, including costs, how Peloton plans to implement fixes and the fate of its new treadmill model that was set to debut in the U.S. later this month.In earnings calls with analysts over the past several months, Peloton executives touted how the cheaper Tread model beat sales expectations in the U.K., saying that it could eventually be a “rocket ship” for the company. The treadmill opportunity was potentially larger than bikes, they said, and expected its impact to be larger in fiscal 2022.Long-Term CommitmentIn spite of a near term hit to the company’s bottom line and potentially to its reputation amid the likelihiood for more lawsuits, most analysts are still positive on Peloton’s ability to maintain a rapid pace of revenue expansion. As of late afternoon Wednesday, Peloton got only one downgrade, a cut to neutral from buy, at Bank of America.“We acknowledge that this recall will likely result in significant near-term one time financial costs and operational disruption, with potential reputational damage,” said Truist analyst Youssef Squali, who has a buy rating.While Squali anticipates the new treadmill release will probably be delayed, he estimates that treadmill sales account for less than 10% of Peloton’s revenue and said the company’s long-term growth prospects remain intact.Peloton’s “long-term standing (after it puts this issue behind it) and opportunity within this massive segment remain strong,” he wrote in a research note on Wednesday.What Bloomberg Intelligence said:The recall could lead to a financial impact of $550-$600 million, assuming a 100% recall rate. The near-term hit on growth may not be significant, as we calculate more than 90% of its hardware revenue comes from bikes.- Amine Bensaid, BI analyst(Adds details of other consumer product crises beginning 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. Health Reuters 210505 16h46m UPDATE 1-Novavax vaccine shows 51% efficacy against South African variant, study finds Novavax Inc's COVID-19 vaccine had efficacy of 51% against infections caused by the South African variant among people who were HIV negative, and 43% in a group that included people who were HIV positive, according to a new analysis published on Wednesday. The variant, known as B.1.351, carries mutations that threaten the efficacy of COVID-19 vaccines, several studies have shown. Most vaccine makers, including Novavax, are testing versions of their vaccines to protect against emerging variants. U.S. Reuters 210505 16h42m U.S. court authorizes IRS to seek identities of taxpayers who have used cryptocurrency The IRS is seeking information about taxpayers who conducted at least $20,000 worth of transactions in cryptocurrency from 2016 to 2020, the DOJ said in a statement. "Those who transact with cryptocurrency must meet their tax obligations like any other taxpayer", acting Assistant Attorney General David Hubbert of the Justice Department's Tax Division said in the statement. Business Business Howell date : 210505 17h10m04s World Reuters 210505 17h01m In northern England's Hartlepool, UK PM Johnson faces test The northern English town of Hartlepool will vote for a new member of parliament on Thursday, a test of Prime Minister Boris Johnson's handling of the COVID-19 pandemic and the future of the opposition Labour Party's new leader. Johnson's governing Conservative Party hopes to break Labour's decades-long hold over Hartlepool, a former industrial port town, to bolster a 2019 election victory in which he won votes from traditional opposition supporters. If the town does elect the Conservative candidate, farmer Jill Mortimer, it will also raise questions over the leadership of Keir Starmer, elected last year as a new face to lead Labour to electoral success after a disastrous showing in 2019. Business Bloomberg 210505 16h56m Peloton Recall Tests Analyst Devotion as Stock Slump Deepens (Bloomberg) -- Peloton Interactive Inc.’s earnings report on Thursday was supposed to be the company’s chance to show off faster product deliveries. Instead, the equipment-maker finds itself in a tight spot over treadmill recalls that has investors second-guessing their devotion to a foundering stock.After weeks of pushing back against U.S. regulator warnings about Peloton’s treadmills following the death of a child and other safety incidents, the recall jarred traders and even prompted a rebuke from a senator. The stock sank 15%, the most in six months, as investors considered the costs in addition to potential knock-on effects that could threaten sales growth.“This may have other unquantifiable impacts to long-term demand,” said Ed Yruma, a KeyBanc analyst. Yruma, who has a buy-equivalent rating, said he would be re-evaluating his financial projections after Peloton’s earnings call on Thursday afternoon.Investors’ love affair with Peloton was already strained before the recalls.Shares of the the New York-based company had fallen 36% this year as it struggled with extended delivery times and the easing of Covid-related lockdowns raised concerns about sales growth in coming quarters.The stock is now the worst performer in the Nasdaq 100 Stock Index after soaring more than fivefold in 2020. Still, of the 29 analysts tracked by Bloomberg that cover Peloton, all but five were recommending investors buy the stock ahead of Wednesday’s news. Wall Street’s optimism combined with sinking shares have pushed the gap between analyst targets and the stock price to 90%, the widest margin since Peloton’s 2019 market debut.Peloton’s predicament is reminiscent of those endured by other consumer-facing companies that were hit with blows to their reputations at a time they were enjoying a honeymoon with Wall Street analysts. Usually, the path to recovery is neither swift nor sure.After Chipotle Mexican Grill Inc. grappled with diners being sickened by food-borne illnesses, the stock needed almost four years to retrace the highs touched in 2015. Lululemon lost some of its halo last decade after complaints about the fabric quality in yoga pants -- a situation worsened when the company founder suggested in 2013 that the gripes arose because the clothes just didn’t work “for some women’s bodies.” That stock took about six years to climb back into record territory.Prior to the recall, Peloton bulls had been banking on a strong earnings report as a potential rally starter, with expectations for progress in fixing shipping delays after the company pledged to spend more than $100 million to improve delivery times. The focus has now shifted to details about the recall, including costs, how Peloton plans to implement fixes and the fate of its new treadmill model that was set to debut in the U.S. later this month.In earnings calls with analysts over the past several months, Peloton executives touted how the cheaper Tread model beat sales expectations in the U.K., saying that it could eventually be a “rocket ship” for the company. The treadmill opportunity was potentially larger than bikes, they said, and expected its impact to be larger in fiscal 2022.Long-Term CommitmentIn spite of a near term hit to the company’s bottom line and potentially to its reputation amid the likelihiood for more lawsuits, most analysts are still positive on Peloton’s ability to maintain a rapid pace of revenue expansion. As of late afternoon Wednesday, Peloton got only one downgrade, a cut to neutral from buy, at Bank of America.“We acknowledge that this recall will likely result in significant near-term one time financial costs and operational disruption, with potential reputational damage,” said Truist analyst Youssef Squali, who has a buy rating.While Squali anticipates the new treadmill release will probably be delayed, he estimates that treadmill sales account for less than 10% of Peloton’s revenue and said the company’s long-term growth prospects remain intact.Peloton’s “long-term standing (after it puts this issue behind it) and opportunity within this massive segment remain strong,” he wrote in a research note on Wednesday.What Bloomberg Intelligence said:The recall could lead to a financial impact of $550-$600 million, assuming a 100% recall rate. The near-term hit on growth may not be significant, as we calculate more than 90% of its hardware revenue comes from bikes.- Amine Bensaid, BI analyst(Adds details of other consumer product crises beginning 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. Health Reuters 210505 16h46m UPDATE 1-Novavax vaccine shows 51% efficacy against South African variant, study finds Novavax Inc's COVID-19 vaccine had efficacy of 51% against infections caused by the South African variant among people who were HIV negative, and 43% in a group that included people who were HIV positive, according to a new analysis published on Wednesday. The variant, known as B.1.351, carries mutations that threaten the efficacy of COVID-19 vaccines, several studies have shown. Most vaccine makers, including Novavax, are testing versions of their vaccines to protect against emerging variants. U.S. Reuters 210505 16h43m U.S. court authorizes IRS to seek identities of taxpayers who have used cryptocurrency The IRS is seeking information about taxpayers who conducted at least $20,000 worth of transactions in cryptocurrency from 2016 to 2020, the DOJ said in a statement. "Those who transact with cryptocurrency must meet their tax obligations like any other taxpayer", acting Assistant Attorney General David Hubbert of the Justice Department's Tax Division said in the statement. Business Bloomberg 210505 16h38m Fed Hawks Join the Chorus Playing Down Worries On Inflation (Bloomberg) -- Discover what’s driving the global economy and what it means for policy makers, businesses, investors and you with The New Economy Daily. Sign up hereU.S. inflation is unlikely to get out of control despite the unprecedented government spending that’s been authorized in response to the coronavirus pandemic, Federal Reserve officials said.“Our baseline view is that inflation is going to be close to our long-run objective of 2%, but we will be vigilant,” Fed Vice Chair Richard Clarida told CNBC in a television interview on Wednesday. “I think what the data is telling us now is there is going to be some upward movement as we reopen, but that it won’t persist over a long period of time, and that’s my view as well,” Clarida said.The vice chair’s comments chimed with those from a spate of other U.S. central bankers Wednesday, including from officials who have long held dovish positions on policy, like Chicago Fed President Charles Evans, as well as some who have taken more hawkish stances in the past, like Boston’s Eric Rosengren and Cleveland’s Loretta Mester.“The hawks are now doves,” Neil Dutta, head of U.S. economics at Renaissance Macro Research LLC, said in an email.Fed officials want to ensure investors and the U.S. public are not alarmed by higher inflation readings in the coming months as the economy reopens, a phenomenon many expect will be temporary. They are playing down the risk of economic overheating that has been raised by critics of President Joe Biden’s ambitious spending plans.“Given that inflation has run low for so long, some increase in inflation expectations and actual inflation would be a welcome development,” said Mester, who expects inflation to rise above the Fed’s 2% goal this year before moving back down in 2022. “I wouldn’t consider the increase in inflation I expect this year to be the type of sustainable increase needed to meet the forward guidance on our policy rate,” she told the Boston Economic Club.Fed officials at their meeting last week held interest rates near zero and reaffirmed they would continue buying $80 billion of Treasuries and $40 billion of mortgage-backed securities a month until the economy had made “substantial further progress” toward their employment and inflation goals.Fed Chair Jerome Powell said in a press conference afterward that would take “some time.” Clarida Wednesday added that the policy-setting Federal Open Market Committee is “certainly not there yet,” referring to the timing of internal discussions on when to begin tapering purchases.MBS TaperRosengren also said it was premature to focus on tapering, though the conditions might be met before the end of the year. And he sounded open to reducing MBS buying faster than Treasuries when the time comes.“I do think that as we think about tapering one of the things that we are going to have to think about is at what speed we taper the Treasuries versus the mortgage-backed securities,” he said in response to a question following a speech to the Boston College Carroll School of Management. “The mortgage market probably doesn’t need as much support now. And in fact, one of my financial stability concerns would be if the housing market gets too overheated.”In an interview later on Wednesday with Kathleen Hays on Bloomberg Television, he spelled out his stance further, though stressing that no discussions have occurred at this point.“The housing market is quite strong right now and housing prices have been going up,” he said. “So the need for buying mortgage-backed securities at the pace that we have been doing probably is not nearly as needed as it was much earlier in the recovery.”In March, the FOMC published projections showing most officials didn’t expect to begin raising the central bank’s benchmark interest rate from its current near-zero level before 2024.The projections also showed expectations that inflation would remain at or slightly above 2% for the next three years, and the unemployment rate would gradually decline to its pre-pandemic level of 3.5% by the end of 2023.Fed Governor Michelle Bowman, also speaking Wednesday, said some of those projections now appear outdated, with the recovery progressing more quickly than she had anticipated at the time they were published in March. The FOMC will issue updated projections when it next meets in mid-June. But she added that the the risk of inflation running persistently above the central bank’s 2% target “still seems small” despite an improving economic outlook.(Updates with comment from Rosengren in Bloomberg TV interview in fourth paragraph from end.)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. Business Bloomberg 210505 16h35m Asia Stocks Look Steady as Tech Drops; Yields Fall: Markets Wrap (Bloomberg) -- Asia stocks are set for a muted open after technology shares weighed on U.S. markets, offsetting optimism over solid corporate earnings and economic reports. Treasuries climbed.Futures were little changed in Australia and Hong Kong. Trading resumes in Japan and China after holidays. U.S. futures edged lower after the S&P 500 notched a small gain while the Nasdaq 100 ended in the red. The Dow Jones Industrial Average rose to a fresh record. Moderna Inc. and Johnson & Johnson retreated on news the U.S. will support a proposal to waive intellectual-property protections for Covid-19 shots, joining an effort to increase global supplies.The Bloomberg Commodity Spot Index returned to its highest level since 2011 as growth bets boost demand, while poor weather and transportation bottlenecks threaten supply. Oil slipped toward $65 a barrel. The dollar was little changed.The U.S. Treasury said it will sell $126 billion of long-term debt next week in its quarterly refunding auctions. It’s the first time in more than a year that the total hasn’t increased, suggesting that the government’s financing needs may have peaked. Treasuries rallied over the session, with the benchmark 10-year yield slipping to 1.57%.As the world’s largest economy rebounds, an intense debate has emerged over whether inflation could get out of control. The five-year breakeven rate -- a proxy for inflation expectations -- has jumped to the highest since 2008, buoyed in part by commodity prices. Despite massive government spending and central bank stimulus, several Federal Reserve officials said Wednesday that price pressures can be contained.“I do think we are set up for a more difficult summer,” Andrew Sheets, Morgan Stanley chief cross asset strategist, said on Bloomberg TV. “The higher inflation numbers are going to come through -- they might be temporary but we are definitely going to get them -- and we are at much higher levels” in the stock market, he said.Here are some key events to watch this week:Bank of England rate decision ThursdayThe April U.S. employment report is released on FridayThese are some of the main moves in markets:StocksS&P 500 futures dipped as of 7:16 a.m. in Tokyo. The S&P 500 was little changedNasdaq 100 futures slipped 0.1%. The Nasdaq 100 fell 0.3%Australia’s S&P/ASX 200 Index futures were little changedHong Kong’s Hang Seng Index futures rose 0.3% earlierCurrenciesThe Japanese yen was at 109.20 per dollarThe offshore yuan was at 6.4876 per dollarThe Bloomberg Dollar Spot Index was little changedThe euro was little changed at $1.2005BondsThe yield on 10-year Treasuries declined two basis points to 1.57%CommoditiesWest Texas Intermediate crude fell 0.5% to $65.28 a barrelGold was at $1,787.33 an ounceFor 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. Business Bloomberg 210505 16h30m Brazil Raises Key Rate by 75 Basis Points, Sees a Repeat in June (Bloomberg) -- Discover what’s driving the global economy and what it means for policy makers, businesses, investors and you with The New Economy Daily. Sign up hereBrazil’s central bank lifted its benchmark interest rate by 75 basis points and promised another hike of the same magnitude in June as it moves to bring inflation forecasts back down to target.The bank on Wednesday unanimously voted to raise the Selic to 3.5%, in line with estimates from all 39 economists in a Bloomberg survey and also the guidance given by policy makers at their prior meeting in March.“For the next meeting the Committee foresees the continuation of the partial normalization process with another adjustment of the same magnitude in the degree of monetary stimulus,” the bank’s board wrote in a statement accompanying the decision.The bank, led by its President Roberto Campos Neto, is acting to rein in inflation that’s surged above the target ceiling to a four-year high. Food and fuel costs have jumped in recent months, and the government recently restarted emergency aid that will firm up demand. Put together, analysts see consumer prices above target this year and next despite an incipient recovery.What Bloomberg Economics Says“The central bank tried to reach a compromise: it promised another sharp rate hike (75bps) in the next meeting, but warned that it is not ready yet to fully normalize monetary policy. Despite acknowledging the decline in underlying inflation and mentioning -- for the first time ever -- its dual mandate, we believe that the overall tone of the statement was somewhat hawkish.”-- Adriana Dupita, Latin America economistThe decision makes room for the real to extend recent gains. The Brazilian currency is the best performer among majors in the past month, up 4.4% amid rising commodity prices. A stronger exchange rate helps fight inflation by making imports less expensive.Real Has Scope to Gain After BCB’s Hiking Signal: Inside Brazil“They are continuing the hawkish tilt and suggesting another 75-basis point rate hike is coming at the next meeting,” said Sacha Tihanyi, head of emerging market strategy at TD Securities in Toronto. “Hike aggressively sooner, and then create some breathing space for the real.”Nearing 8%In their statement, policy makers wrote future steps of monetary policy could be adjusted to assure the achievement of the inflation target. Higher energy costs are pressuring prices in the short-term, and various measures of underlying inflation are at the top of the range compatible with hitting their goal.Consumer prices rose 6.17% in the year through mid-April, and many economists see that reading approaching 8% in May. The central bank targets annual inflation at 3.75% this year, with a tolerance range of plus or minus 1.5 percentage points.Read More: Brazil’s Budget Foreshadows Another Year of Massive SpendingLast month, President Jair Bolsonaro’s administration started paying out another round of monthly stipends at a total cost of 44 billion reais ($8.2 billion). Lawmakers have recently indicated they will seek an extension of that aid if the government does not accelerate plans for a new social program as the coronavirus continues to spread through the country.“The central bank is signaling it plans to get to a 5% Selic in 75-basis point hikes, though it leaves the space to change its mind,” said David Beker, chief Brazil economist at Bank of America Corp.(Updates with economist quotes in sixth and final 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. Business Reuters 210505 16h27m Exclusive: China's Tencent in talks with U.S. to keep gaming investments - sources Tencent Holdings Ltd is negotiating agreements with a U.S. national security panel that would allow it to keep its ownership stakes in U.S. video game developers Riot Games and Epic Games, according to people familiar with the matter. Tencent has been in talks with the Committee on Foreign Investment in the United States (CFIUS), which has the authority to order the Chinese technology giant to divest U.S. holdings, since the second half of last year, the sources said. Howell date : 210505 16h39m27s Business Bloomberg 210505 16h30m Brazil Raises Key Rate by 75 Basis Points, Sees a Repeat in June (Bloomberg) -- Discover what’s driving the global economy and what it means for policy makers, businesses, investors and you with The New Economy Daily. Sign up hereBrazil’s central bank lifted its benchmark interest rate by 75 basis points and promised another hike of the same magnitude in June as it moves to bring inflation forecasts back down to target.The central bank on Wednesday unanimously voted to raise the Selic to 3.5%, in line with estimates from all 39 economists in a Bloomberg survey and also the guidance given by policy makers at their prior meeting in March.“For the next meeting the Committee foresees the continuation of the partial normalization process with another adjustment of the same magnitude in the degree of monetary stimulus,” the bank’s board wrote in a statement accompanying the decision.The bank, led by its President Roberto Campos Neto, is acting to rein in inflation that’s surged above the target ceiling to a four-year high. Food and fuel costs have jumped in recent months, and the government recently restarted emergency aid that will firm up demand. Put together, analysts see consumer prices above target this year and next despite an incipient recovery.The decision makes room for the real to extend recent gains. The Brazilian currency is the best performer among majors in the past month, up 4.4% amid rising commodity prices. A stronger exchange rate helps fight inflation by making imports less expensive.“They are continuing the hawkish tilt and suggesting another 75-basis point rate hike is coming at the next meeting,” said Sacha Tihanyi, head of emerging market strategy at TD Securities in Toronto. “Hike aggressively sooner, and then create some breathing space for the real.”Nearing 8%In their statement, policy makers wrote future steps of monetary policy could be adjusted to assure the achievement of the inflation target. Higher energy costs are pressuring prices in the short-term, and various measures of underlying inflation are at the top of the range compatible with hitting their goal.Consumer prices rose 6.17% in the year through mid-April, and many economists see that reading approaching 8% in May. The central bank targets annual inflation at 3.75% this year, with a tolerance range of plus or minus 1.5 percentage points.Read More: Brazil’s Budget Foreshadows Another Year of Massive SpendingLast month, President Jair Bolsonaro’s administration started paying out another round of monthly stipends at a total cost of 44 billion reais ($8.2 billion). Lawmakers have recently indicated they will seek an extension of that aid if the government does not accelerate plans for a new social program as the coronavirus continues to spread through the country.“The central bank is signaling it plans to get to a 5% Selic in 75-basis point hikes, though it leaves the space to change its mind,” said David Beker, chief Brazil economist at Bank of America Corp.(Updates with economist quotes in sixth and final 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. Business Reuters 210505 16h26m Exclusive: China's Tencent in talks with U.S. to keep gaming investments - sources Tencent Holdings Ltd is negotiating agreements with a U.S. national security panel that would allow it to keep its ownership stakes in U.S. video game developers Riot Games and Epic Games, according to people familiar with the matter. Tencent has been in talks with the Committee on Foreign Investment in the United States (CFIUS), which has the authority to order the Chinese technology giant to divest U.S. holdings, since the second half of last year, the sources said. Business Bloomberg 210505 16h23m Bezos Sells $2.5 Billion of Amazon and Signals More Coming (Bloomberg) -- Jeff Bezos sold about $2.5 billion of Amazon.com Inc. stock, his first big disposal this year after offloading more than $10 billion worth of shares in 2020.Bezos sold around 739,000 shares this week under a pre-arranged trading plan, according to U.S. Securities and Exchange Commission filings. He plans to sell as many as 2 million shares, according to a separate filing.The world’s richest person continues to hold more than 10% of Amazon.com, the primary source of his $191.3 billion fortune, according to the Bloomberg Billionaires Index. In the 15 years after Amazon.com went public in 1997, Bezos sold about a fifth of the online retailer for roughly $2 billion. The value of his stake has ballooned in recent years to such an extent that he can now sell relatively small amounts for billions of dollars.Amazon stock is little changed this year after rallying 76% in 2020 as the Covid-19 pandemic kept people away from physical stores and encouraged online shopping.The Amazon founder has used stock sales to fund rocket company Blue Origin, while he’s committed $10 billion to the “Bezos Earth Fund” to help counter the effects of climate change.The rocket maker said Wednesday it has set July 20 for its first mission carrying people to space and plans to auction off one seat on its New Shepard rocket.Bezos would be far richer if it weren’t for his divorce from MacKenzie Scott. She received a 4% stake in Amazon as part of the split and quickly became one of the world’s most important philanthropists.(Updates with Blue Origin plans 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. World Reuters 210505 16h19m UPDATE 1-Canada province Alberta drops vaccine age to 12 as COVID-19 cases surge Alberta will become the first Canadian province to offer COVID-19 vaccines to everyone aged 12 and over from May 10, Premier Jason Kenney said on Wednesday, a day after he introduced tighter public health measures to combat a raging third wave of the pandemic. United Conservative Party premier Kenney has come under fire for mixed public health messaging as the crest of Canada's third wave of the pandemic shifts from Ontario to Alberta. Oil-rich Alberta has the highest rate per capita of COVID-19 in the country, with nearly 24,000 active cases and 146 people in intensive care. Business Yahoo Finance 210505 16h18m Beyond Meat to report earnings as investors eye COVID-19 rebound Beyond Meat's earnings partly reflect rising consumer interest in alternative foods and a pandemic-stricken foodservice channel that's pressured sales and profits. Business Yahoo Finance 210505 16h14m Stock market news live updates: Stock futures open flat after Dow hits record Stock futures traded flat Wednesday evening following a mixed session on Wall Street, with performance between the Dow and Nasdaq diverging as investors weighed concerns over inflation and higher rates that might drag on growth stocks. Business Reuters 210505 16h09m S&P lifts GameStop credit rating, helping push into e-commerce Ratings agency S&P Global Ratings on Wednesday raised GameStop's credit rating by one notch, a critical step in the video retailer's transformation into an e-commerce company. S&P Global Ratings said in a note that it lifted GameStop's credit rating to "B" from "B-" and removed it from CreditWatch after the company issued $550 million in equity and redeemed all balance sheet debt. "We expect these actions to provide additional runway to achieve its business transformation initiatives, provide liquidity, and improve GameStop's financial risk profile," S&P analysts wrote. Howell date : 210505 09h14m53s Politics Reuters 210505 09h07m UPDATE 1-U.S., China to assess Phase 1 deal soon, Biden trade chief says U.S. Trade Representative Katherine Tai said on Wednesday she expects to engage "in the near term" with Chinese officials to assess their implementation of the "Phase 1" trade deal between the two countries, with the outcome to influence the fate of Washington's punitive tariffs on Beijing. Tai told a Financial Times online event that she respects the need for continuity in U.S.-China trade policy, including the two-year trade deal implemented last year by the Trump administration. Business Reuters 210505 09h07m Archegos prepares for insolvency as banks seek compensation: Financial Times Archegos has hired restructuring advisers to assess the potential legal claims from banks and to explore the winding down its operations, the report said on Wednesday, citing two people familiar with the matter. Global banks had lost $10 billion after highly leveraged bets from the family office on media stocks like ViacomCBS turned sour. Archegos had assets of around $10 billion but held positions worth more than $50 billion. Business Bloomberg 210505 09h06m U.S. Keeps Quarterly Bond Sale at High, Warns on Debt Limit (Bloomberg) -- The U.S. Treasury kept its quarterly auction of long-term debt, planned for next week, at a record size to help fund the government’s continuing wave of stimulus spending.It’s the first time in more than a year that the so-called quarterly refunding total hasn’t risen, suggesting that financing needs have peaked. The department, in a statement Wednesday, offered no major changes in its debt-issuance strategy, and said it will sell $126 billion of long-term securities at auctions next week.The Treasury highlighted that it may face challenges if Congress fails to suspend or increase the federal debt limit when the current suspension runs out at the end of July. On previous occasions, the Treasury has used various measures to keep making payments on federal debt while lawmakers and the White House wrangled over raising the ceiling. But this year could bring added strains, the department said.“In light of the substantial Covid-related uncertainty about receipts and outlays in the coming months, it is very difficult to predict how long extraordinary measures might last,” the Treasury statement said. “Treasury is evaluating a range of potential scenarios, including some in which extraordinary measures could be exhausted much more quickly than in prior debt limit episodes.”Big decisions on debt issuance loom later this year, with the government’s borrowing needs set to shrink rapidly as Covid-19 stimulus spending ebbs and the economic recovery sets in. Treasury Secretary Janet Yellen and her team will need to decide whether to continue her predecessor’s moves to lengthen the average maturity of Treasuries to take advantage of historically low longer-term rates.The Treasury Borrowing Advisory Committee, a group of major dealers and investors, said that over a longer horizon, the government should indeed lengthen the average maturity of debt to above its historical range, an accompanying statement showed Wednesday.Ten-year Treasury yields climbed to their highs of the session after the documents were released, before giving up much of the move. They were at 1.59% as of 10:59 a.m. in New York, little changed on the day. The move also came as the Treasury kept silent on any intention to trim back 20-year bond sales, as some analysts had been on watch for.Read More: Treasury Should Extend Average Maturity of Debt Eventually: TBACNext week’s quarterly-refunding auctions break down as follows:$58 billion of three-year notes on May 11, unchanged from February$41 billion of 10-year notes on May 12, the same as last quarter$27 billion of 30-year bonds on May 13, unchanged versus FebruaryThe refunding will raise $78.3 billion in new cashWhile President Joe Biden is calling for $4 trillion in further spending, those plans are spread over several years, with tax hikes lined up to help pay for them. A still-large cash pile and the prior ramping up in auctions means the Treasury doesn’t need to further boost its debt issuance even after the enactment of the $1.9 trillion March pandemic-relief bill.The majority of Wall Street bond dealers had predicted the Treasury would make no changes to nominal coupon-bearing debt auctions. Several forecast a reduction beginning as early as August. Sales of notes and bonds ranging from seven to 30 years have doubled in size thanks to Covid-19 spending, HSBC Holdings Plc estimates show.“Even if Congress passes a large-scale infrastructure package which is funded over a five to 10-year horizon, Treasury’s current auction schedule leaves it more than adequately financed in coming years,” Jay Barry, a strategist at JPMorgan Chase & Co. wrote in a note last week. “Treasury should begin making cuts to its auction sizes in relatively short order.”Bill SalesIf coupon-bearing auction sizes aren’t trimmed in coming quarters, it would likely result in the Treasury needing to cut bill sales to a degree that pushes their share of total below the 15% to 20% range the TBAC has previously advised, Barry said. T-bills made up around 22% of marketable Treasuries at the end of March.The Treasury said Wednesday it “anticipates no changes to nominal coupon and floating-rate note auction sizes over the upcoming May to July 2021 quarter. Treasury plans to address any seasonal or unexpected variations in borrowing needs over the next quarter through changes in regular bill auction sizes and/or cash management bills.”The Treasury has this year been slowly reducing its use of bill sales, after relying on them heavily at the start of the pandemic to fund relief spending and build up a record stockpile of cash to offer extra flexibility amid the crisis.Between now and the end of July, the Treasury estimated a reduction in bills outstanding of about $150 billion -- approximately one-third of the decline in bill supply that has already occurred since the February 2021 refunding. The department said Wednesday it doesn’t plan any changes to its six-week and 17-week cash management bill sales, at least through the end of July.Trading DetailsThere was no new guidance on issuance of 20-year bonds, a security the Treasury resurrected last year. But the department said the Financial Industry Regulatory Authority, which currently publishes aggregate statistics on Treasury securities volumes, detailed last week that it will modify that report in May to provide greater detail on the 20-year securities sector going forward.Continuing a move it started in January, the Treasury said it will increase sales of Treasury Inflation-Protected Securities over coming months, keeping at the same cadence of lifting sales by $1 billion per auction relative to the most recent, comparable sales.The Treasury reiterated that it assumes the cash balance, known as the Treasury General Account, or TGA, will amount to $450 billion at the end of the current debt-limit suspension period on July 31. Wall Street strategists had previously anticipated a much smaller figure, at roughly $130 billion -- about where the TGA was when Congress suspended the limit -- based on what had happened in prior episodes.Read More: Treasury Quadruples Borrowing Estimates to Pay for StimulusBrian Smith, the Treasury’s deputy assistant secretary for federal finance, explained that the higher number relates to the 2015 adoption of a policy of keeping at least five days’ worth of expenditures in the account, in case of unexpected disruptions.“Outflows from the TGA are significantly higher this year due to the unprecedented scale of the government’s response to Covid 19,” Smith said. “Maintaining a higher cash balance is appropriate and consistent with our full range of authorities and obligations.”(Adds reference to July cash balance projection and Treasury official’s comment in final three 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. Business Bloomberg 210505 09h05m Stocks Rebound Led by Energy and Technology Shares: Markets Wrap (Bloomberg) -- Technology and energy companies drove the rebound in stocks as traders sifted through mixed economic readings, with inflation still among the biggest worries. Oil climbed.The S&P 500 rose after briefly falling on a report that service providers expanded at the second-fastest pace in data back to 1997, while cooling from the prior month. Peloton Interactive Inc. sank after a treadmill safety recall, while General Motors Co. rose on stronger-than-expected profit growth. Lumber futures extended their record rally -- stoking concerns of inflation bleeding into the home-buying market.Despite the unprecedented government spending that’s been authorized in response to the coronavirus pandemic, inflation is unlikely to get out of control, Federal Reserve Bank of Chicago President Charles Evans said. Fed Governor Michelle Bowman offered similar comments, suggesting the risk of prices running persistently above the central bank’s 2% target “still seems small.”Earlier Wednesday, a report showed that U.S. private employers added the most jobs in seven months, led by gains in industries hit hardest by the pandemic and signaling hiring will continue improve as the economy reopens and more Americans are vaccinated.“Optimism over economic growth means the downside for stocks will probably be limited and not all sectors will be hurt,” said Fawad Razaqzada, an analyst at ThinkMarkets. “Interest rates will still likely remain very low. Any near-term weakness for the stock markets will probably be a buying opportunity rather than a reason for the bears to pounce.”The Treasury kept its quarterly auction of long-term debt at a record size to help fund the continuing wave of stimulus spending. It also highlighted there may be challenges if Congress fails to suspend or increase the federal debt limit when the current suspension runs out.Here are some key events to watch this week:Bank of England rate decision ThursdayThe April U.S. employment report is released on FridayThese are some of the main moves in markets:StocksThe S&P 500 rose 0.3% as of 11:05 a.m. New York timeThe Nasdaq 100 rose 0.6%The Dow Jones Industrial Average was little changedThe Stoxx Europe 600 rose 1.6%The MSCI World index rose 0.4%CurrenciesThe Bloomberg Dollar Spot Index was little changedThe euro was little changed at $1.2005The British pound rose 0.2% to $1.3912The Japanese yen rose 0.1% to 109.20 per dollarBondsThe yield on 10-year Treasuries was little changed at 1.59%Germany’s 10-year yield was little changed at -0.23%Britain’s 10-year yield advanced two basis points to 0.81%CommoditiesWest Texas Intermediate crude rose 0.9% to $66 a barrelGold futures rose 0.4% to $1,783 an ounceFor 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. Business Reuters 210505 09h04m US STOCKS-S&P 500, Nasdaq rise as megacap stocks bounce; Boeing weighs on Dow The S&P 500 and the Nasdaq rose on Wednesday as megacap stocks bounced from a steep selloff in the previous session and private jobs rose in April, but a decline in Boeing shares weighed on the Dow. Technology-related companies including Apple Inc, Microsoft Corp, Amazon.com Inc, Facebook Inc and Alphabet Inc rose between 0.2% and 1.3%. World Reuters 210505 08h58m UPDATE 1-South Africa's ANC suspends Secretary General Magashule - local media South Africa's governing African National Congress (ANC) has suspended its Secretary General, Ace Magashule, in line with tougher rules for party officials charged with corruption, Eyewitness News and state broadcaster SABC reported on Wednesday. The ANC said in a statement on Tuesday that its National Working Committee had reaffirmed an earlier decision that all members charged with corruption or other serious crimes must "step aside" from their posts within 30 days or face suspension. ANC spokesman Pule Mabe had no immediate comment when called by Reuters on Wednesday. Howell date : 210505 08h44m16s Business Reuters 210505 08h39m Finland's Supercell invests 150 million to scale up mobile game Finland's biggest game maker Supercell has invested 150 million euros ($180 million) as a line of credit in its subsidiary, mobile game studio Metacore, the companies said in a joint statement. The money will be used to scale Metacore's first game Merge Mansion, Metacore's Chief Executive Mika Tammenkoski told Reuters. "We believe Merge Mansion has the potential to become a big hit," Supercell's investments lead Jaakko Harlas told Reuters. Business Bloomberg 210505 08h38m Oil Gains With U.S. Supply Drop Signaling Recovery (Bloomberg) -- Oil jumped after the biggest U.S. crude inventory decline since January compounded signs of a demand recovery taking hold in the world’s largest oil-consuming country as the summer driving season approaches.Futures surged as much as 1.6% in London to near the key psychological $70-a-barrel level, while U.S. benchmark crude futures also gained on Wednesday. A U.S. government report showed domestic crude stockpiles fell by nearly 8 million barrels last week, notching the first decline in three weeks. U.S. crude exports surged by the most on record in weekly Energy Information Administration data.Aiding oil’s price gains has been a broader rally across raw materials, which has driven the Bloomberg Commodity Spot Index to the highest level in almost a decade. Investors are betting that rising vaccine-aided demand and greater mobility in key economies will drain crude stockpiles and support higher prices.West Texas Intermediate crude futures for June delivery rose $1.20 to $65.69 a barrel at 10:32 a.m. in New York. Brent for July settlement gained $1.32 to $68.88a barrel on the London-based ICE Futures Europe exchange.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. Business Bloomberg 210505 08h28m Caesars Rallies After CEO Predicts Post-Pandemic Casino Boom (Bloomberg) -- Caesars Entertainment Inc. shares leaped as much as 10% after Chief Executive Officer Tom Reeg gave an upbeat profit forecast and pointed to continuing signs of recovery for the gambling industry.Caesars, the largest owner of casinos in the U.S., reported adjusted first-quarter earnings of $505 million before interest, taxes, depreciation and amortization, a 23% increase from a year earlier.Reeg -- who orchestrated the merger of Caesars and Eldorado Resorts last year, along with the recent purchase of sports betting operator William Hill Plc -- said on a conference call Tuesday that the company would likely earn $1 billion in profit in at least one quarter this year and that he’d be “disappointed” if Caesars doesn’t generate over $4 billion for all of 2022.Consumers cooped up in their homes by the coronavirus socked away savings that they’re now beginning to spend on travel and entertainment. Casinos outside of Las Vegas have led industry’s recovery because guests don’t have to fly to them. Younger patrons with fewer entertainment options have been among the first to return. Older guests may follow.“As the world reopens, we already see this capital being unlocked and coming into our doors,” Reeg said. “I think the demand for entertainment and just fun, after the last 12 to 14 months, is going to be like nothing any of us have seen in our lifetime.”The shares jumped as high as $105.50 in New York Wednesday, marking the biggest intraday gain since Feb. 26. They were already up 29% this year through the close Tuesday.Changes PlannedReeg also reiterated plans to sell one of the company’s big Las Vegas hotels and William Hill’s non-U.S. business to help reduce debt. He plans to take the William Hill name off the company’s sportsbooks and app, replacing them with Caesars.Like other Las Vegas resort operators, Caesars has seen an especially steep decline in its meeting and convention business, which has been effectively shut down for the past year. Weekday hotel rates, which depend on that business, remain low. But leisure travel has picked up.On the call, President Anthony Carano said “weekends in Las Vegas are sold out for the foreseeable future.”The Caesars website showed rooms available at 10 of the company’s Las Vegas resorts this weekend at rates from $179 a night.(Updates trading starting in first 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. Business Yahoo Finance 210505 08h28m Stock market news live updates: Stocks mixed, technology shares recover after concerns over higher rates abate Stocks were mostly higher Wednesday after a technology-led selloff a day earlier, with growth stocks recovering some losses spurred after a key policymaker suggested interest rates might need to rise to prevent an economic overheating. Business Reuters 210505 08h27m TAQA in talks to buy power plants in Abu Dhabi, plans green bonds, says CFO Abu Dhabi National Energy Company (TAQA) is in talks to buy power plants in the United Arab Emirates and could issue debut green bonds in 2022 as it seeks to expand renewables generation, the finance chief said. Abu Dhabi-listed TAQA is looking at ways to expand after a state-driven transaction last year boosted its balance sheet and increased total assets to more than $50 billion. Chief Financial Officer Steve Ridlington told Reuters the company was in early talks to buy power plants in Abu Dhabi, the largest and wealthiest of seven emirates making up the UAE. Business Bloomberg 210505 08h25m Stocks Fluctuate as ISM Index Unexpectedly Drops: Markets Wrap (Bloomberg) -- Stocks fluctuated as a gauge of U.S. service providers unexpectedly fell, signaling an uneven economic rebound.The S&P 500 swung between gains and losses, while the Dow Jones Industrial Average underperformed major equity benchmarks. Peloton Interactive Inc. tumbled after a treadmill safety recall, while General Motors Co. rallied on stronger-than-expected profit growth. Energy shares joined oil higher.The Institute for Supply Management’s services index dropped to 62.7 last month from a record 63.7 in March. Traders also parsed data showing private employers added the most jobs in seven months, signaling hiring will continue to improve as the economy reopens and more Americans are vaccinated.The Treasury kept its quarterly auction of long-term debt at a record size to help fund the continuing wave of stimulus spending. It also highlighted there may be challenges if Congress fails to suspend or increase the federal debt limit when the current suspension runs out. Inflation is unlikely to get out of control despite the unprecedented government spending, Federal Reserve Bank of Chicago President Charles Evans said.Here are some key events to watch this week:Bank of England rate decision ThursdayThe April U.S. employment report is released on FridayThese are some of the main moves in markets:StocksThe S&P 500 was little changed as of 10:24 a.m. New York timeThe Nasdaq 100 was little changedThe Dow Jones Industrial Average fell 0.3%The Stoxx Europe 600 rose 1.4%The MSCI World index rose 0.1%CurrenciesThe Bloomberg Dollar Spot Index was little changedThe euro fell 0.1% to $1.1997The British pound was little changed at $1.3892The Japanese yen was little changed at 109.28 per dollarBondsThe yield on 10-year Treasuries was little changed at 1.60%Germany’s 10-year yield advanced one basis point to -0.23%Britain’s 10-year yield advanced two basis points to 0.81%CommoditiesWest Texas Intermediate crude rose 1.2% to $66 a barrelGold futures rose 0.3% to $1,781 an ounceFor 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. Politics Bloomberg 210505 08h25m El Salvador Defends Firing Attorney General, Top Judges (Bloomberg) -- El Salvador President Nayib Bukele defended his party’s removal of the attorney general and five top judges, saying the country’s constitution allows congress to do so and that the U.S. and other critics have a skewed view of what happened.He said the dismissed attorney general, Raul Melara, had been chosen by Arena, the opposition political party, which he called unethical, and accused him of carrying out his work in a partisan manner. Salvadoran law allows congress to remove constitutional judges and the attorney general with a two-thirds legislative vote, which was surpassed on Saturday with the backing of 64 of 84 lawmakers.“I find it strange that when I talk to countries where they do exactly the same thing, they tell us we are doing it wrong,” he told members of the diplomatic corps in El Salvador on Tuesday night. U.S. officials did not attend the meeting, he added. “Elections have consequences. That’s not weakening democracy. That’s strengthening democracy.”Read More: El Salvador Bonds Fall After Judges, Attorney General OustedThe Salvadoran president’s comments drew a fresh rebuke from the White House. A spokesperson called on Bukele to restore strong separation of powers and demonstrate his government’s and his party’s commitment to transparency and accountability. If the Salvadoran and U.S. governments are to continue working as partners, the U.S. will need to see concrete actions respecting all branches of government, the spokesperson added.New CongressBukele’s Nuevas Ideas party won a super majority in congress in February’s legislative elections. The new lawmakers were sworn in Saturday and Melara and the justices were dismissed soon afterward.Biden administration officials, the Organization of American States, business groups and Human Rights Watch were quick to criticize the move.A State Department spokesman said Secretary of State Antony Blinken had expressed concern to Bukele over the removal of Melara, “who’s fighting corruption and impunity, and is an effective partner of efforts to combat crime in both the United States and El Salvador.”Bukele said Tuesday that the U.S. special envoy to Central America, Ricardo Zuniga, had met with 10 civil society groups during his visit to the country last month, but that all those organizations were critical of the government, giving Zuniga a one-sided view of the nation.“If you talk to 10 anti-government organizations, you didn’t meet civil society. You met the opposition,” Bukele said. “It worries me because when you only get information from one side you will likely be wrong in your conclusion.”Bukele contended that in the U.S., presidents get to name their own attorneys general. American presidents do nominate attorneys general, but the nominations must be approved by the U.S. Senate.(Updates with comment from White House spokesperson 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. Howell date : 210505 08h13m40s Business Bloomberg 210505 07h58m Tesla Losing Source of Credit Revenue That’s Been Key to Profits (Bloomberg) -- Tesla Inc. is about to lose one source of the regulatory-credit revenue that’s been crucial to its almost two-year run of consecutive quarterly profits.Stellantis NV, the automaker formed through the merger of PSA Group and Fiat Chrysler, announced Wednesday it is exiting a European emissions-credit agreement with Tesla. Complying with standards on its own will save the company about 300 million euros ($360 million), roughly two-thirds of which would have gone to Tesla, Chief Financial Officer Richard Palmer said.“Stellantis will be in a position to achieve CO2 targets in Europe for 2021 without open passenger-car pooling arrangements with other automakers,” the company said in an emailed statement. A Tesla representative didn’t immediately respond to a request for comment.Tesla has steadily increased sales of regulatory credits to carmakers that need help complying with emissions standards that are getting stricter in Europe, China and the U.S. The revenue goes straight to the electric-car maker’s bottom line and has routinely exceeded net income on a generally accepted accounting principles, or GAAP, basis. Without the credit sales in recent quarters, the company would have recorded losses.Stellantis Chief Executive Officer Carlos Tavares first announced the plan to end its agreement with Tesla in an interview with the French weekly Le Point. The company will consider partnering in the future with Tesla, if necessary, in other regions in order to achieve the lowest cost of compliance.Fiat Chrysler first announced credit-purchasing agreements with Tesla in May 2019, saying then that it would cost the company 1.8 billion euros over three years. The company is now paired up with PSA’s lineup of plug-in hybrid and fully electric models, which will continue to expand this year. It has scheduled an EV-related investor day for July 8. Stellantis shares rose as much as 5.9% in New York trading, while Tesla advanced as much as 1.7%.(Updates with savings in the second 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. Business Yahoo Finance 210505 07h56m A key stimulus program for small businesses is now largely out of money After distributing more than $780 billion to small businesses, the Paycheck Protection Program is reportedly largely out of money and closed through most lenders. Business Bloomberg 210505 07h49m The Dogecoin Joke Is Turning Serious in Latest Crypto Binge (Bloomberg) -- For anyone who still thinks Dogecoin is a joke, there are some 90 billion reasons that say it’s not.That’s how much the digital token is nearly worth in dollar terms after jumping again in Wednesday trading. Useless or not, the coin has been swept up in the crypto mania that’s gripped markets awash in central bank largesse.It’s the latest milestone in a year of speculative excesses for a market Nouriel Roubini once described as “the mother of all bubbles.” While in the past, trillions of dollars in stimulus by governments and central banks might have triggered a rush into gold for the inflation-wary and risky stocks for the intrepid, a deluge of cash this time round is flooding into the nascent crypto market.Few illustrate this better than Dogecoin, a so-called memecoin that’s become the destination for a horde of day traders egged on by Internet buzz and a self-propelling buying frenzy. A potential trigger for the latest leg up: Tesla Inc. co-founder and crypto fan Elon Musk is appearing on Saturday Night Live this weekend, spurring speculation he may talk up Dogecoin again on the comedy show.Also read: Should You Buy Dogecoin and How Is It Different From Bitcoin? “When you think about the full spirit of what this crypto revolution is, there’s something pure in what Dogecoin has done,” Mike Novogratz, founder of Galaxy Digital Holdings, said on CNBC. “I worry that once the enthusiasm rolls out, there are no developers, there’s no institutions coming in. But it’s got the moniker of the people’s coin right now and it’d be very dangerous to be short.”The overnight gain took Dogecoin’s one-week advance to 118% and its value to $87 billion in Wednesday trading, according to CoinMarketCap.com data, eclipsing the largest exchange-traded gold fund and even stocks like Fedex Corp. and Snap Inc. A year ago, the asset was worth just $315 million.It’s all the more remarkable given that other retail favorites from bullish stock options to Cathie Wood’s tech fund have all seen activity dip from the highs earlier this year.Now, cryptomania might even be hurting gold, according to some analysts. The precious metal has suffered outflows in recent months even as a deluge of stimulus cash drove the value of the world’s crypto market to a $2 trillion record.“At some point, something is just real,” said Sam Bankman-Fried, the Hong Kong-based chief executive officer of the FTX crypto exchange. “If Dogecoin is stupid and valueless, it shouldn’t be worth $90 billion. How about gold or Bitcoin or euros? Our collective imagination has given them value, and now we just think about them having value.”Dogecoin, started in 2013 as a joke based on the Shiba Inu breed of dog, may become so accepted by the mainstream it might evolve into a payment option at retailers, Bankman-Fried said. At Blockfolio, a firm owned by FTX that helps users manage their crypto portfolios, trading volumes are spiking with Dogecoin’s every gain, a sign it’s become essential to the whole ecosystem.Dogecoin buying got so fevered Tuesday, Robinhood’s trading app briefly crashed. Other so-called altcoins surged, with Dash spiking 11% over a 24-hour period through the New York morning on Wednesday and Ethereum Classic rising 25%.While it’s difficult to assign firm reasons to Dogecoin’s ascent, a few factors have fueled the gains. On April 20, a day normally associated with pot, some users got #DogeDay trending to push up the price. Celebrities from Musk to the Dallas Mavericks’ billionaire owner Mark Cuban also jumped on the bandwagon. The Gemini crypto exchange backed by the Winklevoss twins announced Tuesday it will soon enable trading of the coin.“As the economy reopens, a lot of these Covid-related movements in various assets will experience some volatility,” said Tony Bedikian, head of global markets at Citizens Bank. “But I think they are going to become a permanent part of the currency markets as central banks have continued to print money at astronomical levels.”(Adds context throughout and comments from Novogratz, Bedikian)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. World Reuters 210505 07h46m Clashes in Jerusalem ahead of court case on Palestinians' eviction The troubles erupt after the evening meal that breaks the Ramadan fast, when Jewish settlers, guarded by Israeli police, and Palestinians trade abuse on the streets of East Jerusalem. A long-running legal case, in which several Palestinian families face eviction from homes on land claimed by settlers, is at the heart of the confrontations during the Muslim holy month, with a key court session due to be held on Thursday. World Bloomberg 210505 07h45m Colombia to Defend Bond Rating Amid Riots, Finance Chief Says (Bloomberg) -- Colombia is determined to cut its fiscal deficit and defend its investment grade credit rating, the nation’s new finance minister said.Jose Manuel Restrepo, who was appointed this week, said there’s a growing consensus among congressional leaders over the need to get tax increases passed, both to fund welfare spending and to curb borrowing. The government is working as fast as possible to send the proposal to congress and get it approved before legislative sessions end in June, he said.“Colombia, with this proposal we are building, is absolutely clear that we want to maintain investment grade,” Restrepo said Wednesday, in a video interview. “This is a country that has historically been responsible with its public finances.”Restrepo spoke after another night of violence, in which rioters carried out arson attacks on police stations in the capital Bogota. The nation erupted in protests last month over proposed tax increases, and these have continued even after the government withdrew its proposals from congress and Restrepo’s predecessor, Alberto Carrasquilla, resigned.Read More: Heavy-Handed Riot Police Bring Wave of Criticism on ColombiaMore demonstrations are planned for Wednesday.The government has ditched some of the more unpopular proposals, and the new bill won’t broaden VAT or impose income tax on middle class salaries. The burden will mainly fall on high earners and on corporations, Restrepo said.“We don’t want to hurt the middle class,” he said.Colombia is among the first major emerging markets to try to raise taxes to address the damage done by the pandemic. Restrepo said that by raising 14 trillion pesos or around 1.1% of gross domestic product, Colombia will be able to “guarantee fiscal sustainability in the medium and long term”.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. Business Bloomberg 210505 07h45m Tech Leads Rebound in Stocks as Earnings Roll In: Markets Wrap (Bloomberg) -- Technology shares led a rebound in U.S. stocks as traders’ focus turned to earnings and signs of an economic recovery.The S&P 500 rose as investors appeared to shrug off inflation fears that had spooked markets a day earlier, even as fresh evidence of rising prices emerged. Giants Apple Inc., Tesla Inc. and Amazon.com Inc. climbed. General Motors Co. rallied on stronger-than-expected profit growth, while ride-hailing company Lyft Inc. advanced after reporting a narrower-than-estimated loss. Energy shares joined oil higher.The Treasury kept its quarterly auction of long-term debt at a record size to help fund the continuing wave of stimulus spending. It also highlighted there may be challenges if Congress fails to suspend or increase the federal debt limit when the current suspension runs out. Inflation is unlikely to get out of control despite the unprecedented government spending, Federal Reserve Bank of Chicago President Charles Evans said.Traders also parsed data showing private employers added the most jobs in seven months, signaling hiring will continue to improve as the economy reopens and more Americans are vaccinated.“Optimism over economic growth means the downside for stocks will probably be limited and not all sectors will be hurt,” said Fawad Razaqzada, an analyst at ThinkMarkets. “Interest rates will still likely remain very low. Any near-term weakness for the stock markets will probably be a buying opportunity rather than a reason for the bears to pounce.”Here are some key events to watch this week:Bank of England rate decision ThursdayThe April U.S. employment report is released on FridayThese are some of the main moves in markets:StocksThe S&P 500 rose 0.3% as of 9:44 a.m. New York timeThe Nasdaq 100 rose 0.8%The Dow Jones Industrial Average was little changedThe Stoxx Europe 600 rose 1.6%The MSCI World index rose 0.4%CurrenciesThe Bloomberg Dollar Spot Index was little changedThe euro was little changed at $1.2005The British pound rose 0.1% to $1.3905The Japanese yen rose 0.1% to 109.19 per dollarBondsThe yield on 10-year Treasuries was little changed at 1.59%Germany’s 10-year yield was little changed at -0.23%Britain’s 10-year yield advanced one basis point to 0.81%CommoditiesWest Texas Intermediate crude rose 1.1% to $66 a barrelGold futures rose 0.2% to $1,780 an ounceFor 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. Howell date : 210505 07h43m03s Business Bloomberg 210505 07h34m EU’s Breton Says Time to Fix ‘Naive’ Approach to Chip Supply (Bloomberg) -- Europe was naive to outsource so much of its semiconductor design and manufacturing to other regions and needs to redress the balance, the European Union’s top industry official said.Industry Commissioner Thierry Breton said a global chip shortage that’s disrupting the car industry and supplies of electronic goods is proof that it’s time to act.“We want to come back to our former market share of production for the needs of our industry,” Breton said in an interview with Bloomberg News. Europe’s share of semiconductor manufacturing has dropped over the years because the region has been “too naive, too open,” he said.The European Commission, the EU’s executive body, laid out plans Wednesday to diversify supply chains and carry out regular sector reviews to tackle its lack of industrial independence in strategic areas including semiconductors.An analysis it published at the same time showed the region’s semiconductor supply chain is increasingly vulnerable to high barriers to entry in key industries, as well as trade tensions and a heavy reliance on Asian advanced chip manufacturing and U.S. chip design tools.The EU’s response should focus on clawing back design and production of semiconductors that power data processing, communication, infrastructure and artificial intelligence, the paper said.The commission plans to double chip production to at least 20% of world supply by 2030. Breton is trying to rally Europe’s leading chipmakers, research centers and more than a dozen EU governments behind the plans. At least 22 countries have already signed a letter of intent.The alliance will have to decide how to boost the design and production of 20-nanometer to 10-nanometer chips, which are smaller and more powerful than most that are currently manufactured in Europe, Breton said. Advances in manufacturing are measured in nanometers, or billionths of a meter, with smaller and smaller transistors crammed onto silicon wafers.In parallel, the EU will work on plans to produce the next generation of leading-edge chips by 2030. Officials are targeting production below 5-nanometers down to 2-nanometers, an ambitious goal not yet reached by industry leaders Taiwan Semiconductor Manufacturing Co. and South Korea’s Samsung Electronics Co.Uphill BattleProducing even 20nm chips will be a challenge for most European semiconductor companies, which have long outsourced production at that scale, said Jan-Peter Kleinhans, head of technology and geopolitics at think tank Stiftung Neue Verantwortung. He said the companies’ automotive and industrial customers may need to be willing to pay more for chips “made in the EU.”And not all European chip companies are keen to sign up to the EU’s plans. STMicroelectronics NV Chief Executive Officer Jean-Marc Chery told BFM TV on Tuesday his firm was unlikely to join the alliance.“If it’s about advanced technologies, we don’t have any reason to participate. That’s marginal to our activities,” said Chery.Europe once accounted for a big chunk of semiconductor manufacturing, but that’s collapsed from a global market share of around 44% in 1990 to closer to 10% today. Taiwan, South Korea and Japan account for about 60% of production, according to the Boston Consulting Group and the Semiconductor Industry Association. European chip designers including NXP Semiconductors NV and Infineon Technologies AG now outsource most production to TSMC and other foundry operators. The decline partly reflects the waning of Europe’s consumer technology sector, including the failure of Nokia Corp. and Ericsson AB’s once-popular mobile phones, according to Kleinhans.Now Europe’s auto industry has been hit hard by the global chip shortage. Ford Motor Co. said Monday it would halt output at German plants for several weeks due to a chip shortage, joining a growing list of manufacturers idling factories.While the EU’s semiconductor strategy is aimed at cutting reliance on foreign suppliers, its plan to go below 5 nanometers is so ambitious that the bloc will need help from those same players. Companies like TSMC have dedicated years of research and invested billions of dollars to develop their expertise.“We know that to go there, it will be better to do this with partners,” Breton said of the 2-nanometer goal. He said the strategy is like “going to the moon.”Intel Corp., the world’s largest chipmaker, has backed the EU’s plans. It’s already expanding 7nm production in Europe and is also considering building a state-of-the-art semiconductor foundry in the region. But the company has struggled to advance its manufacturing in recent years, and its CEO suggested last week the company would likely need hefty financial support from European governments to invest in the bloc’s strategy.An Intel spokesman pointed to companies in Asia that get roughly 40% of the costs of building a new factory subsidized by the state. A new factory costs at least $10 billion and it would need two of them in one location to take advantage of economies of scale, the spokesman said.(Updates with EU announcement from fourth paragraph, STMicro and analyst comments)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. Business Yahoo Finance 210505 07h34m Stock market news live updates: Stocks rise as technology shares rebound after concerns over higher rates abate Stock futures pointed to a higher open Wednesday morning after a technology-led selloff a day earlier, with growth stocks giving back more of their 2020 gains after a key policymaker suggested interest rates might need to rise to prevent an economic overheating. Business Bloomberg 210505 07h33m Tech Leads Rebound in Stocks as Earnings Roll In: Markets Wrap (Bloomberg) -- Technology shares led a rebound in U.S. stocks as traders’ focus turned to earnings and signs of an economic recovery.The S&P 500 rose as investors appeared to shrug off inflation fears that had spooked markets a day earlier, even as fresh evidence of rising prices emerged. Giants Apple Inc., Tesla Inc. and Amazon.com Inc. climbed. General Motors Co. rallied on stronger-than-expected profit growth, while ride-hailing company Lyft Inc. advanced after reporting a narrower-than-estimated loss.The Treasury kept its quarterly auction of long-term debt at a record size to help fund the continuing wave of stimulus spending. It also highlighted there may be challenges if Congress fails to suspend or increase the federal debt limit when the current suspension runs out. Traders also parsed data showing private employers added the most jobs in seven months, signaling hiring will continue to improve as the economy reopens and more Americans are vaccinated.“Optimism over economic growth means the downside for stocks will probably be limited and not all sectors will be hurt,” said Fawad Razaqzada, an analyst at ThinkMarkets. “Interest rates will still likely remain very low. Any near-term weakness for the stock markets will probably be a buying opportunity rather than a reason for the bears to pounce.”Here are some key events to watch this week:Bank of England rate decision ThursdayThe April U.S. employment report is released on FridayThese are some of the main moves in markets:StocksThe S&P 500 rose 0.5% as of 9:31 a.m. New York timeThe Nasdaq 100 rose 0.9%The Dow Jones Industrial Average rose 0.2%The Stoxx Europe 600 rose 1.6%The MSCI World index rose 0.5%CurrenciesThe Bloomberg Dollar Spot Index was little changedThe euro was little changed at $1.2007The British pound rose 0.1% to $1.3905The Japanese yen was little changed at 109.26 per dollarBondsThe yield on 10-year Treasuries was little changed at 1.60%Germany’s 10-year yield advanced two basis points to -0.22%Britain’s 10-year yield advanced two basis points to 0.81%CommoditiesWest Texas Intermediate crude rose 0.8% to $66 a barrelGold futures rose 0.2% to $1,780 an ounceFor 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. World Reuters 210505 07h31m China concerned its companies barred from 5G trials in India China said on Wednesday it was concerned that India had not allowed Chinese companies to conduct 5G trials in the country. India will allow foreign mobile carriers to carry out 5G trials with equipment makers, New Delhi said on Tuesday, but did not name China's Huawei among the participants. "Chinese companies have been operating in India for years, providing mass job opportunities and making contribution to India's infrastructure construction in telecommunications," Wang Xiaojian, a spokesperson for the Chinese embassy in New Delhi said in a statement. Health Yahoo Finance 210505 07h22m ‘We’re really in the early days’ of understanding neurological issues with COVID-19 The long-term effects of COVID-19 are still not clear, and recent research has indicates that many patients could face neurological or psychiatric issues down the line. Business Reuters 210505 07h22m CANADA FX DEBT-Canadian dollar nears 3-year high as economic data boosts global shares * Canadian dollar strengthens 0.3% against the greenback * Toronto home sales fall nearly 13% in April from March * Price of U.S. oil rises 1.1% * Canadian 10-year yield increases 2.5 basis points to 1.548% TORONTO, May 5 (Reuters) - The Canadian dollar gained ground against its U.S. counterpart on Wednesday as oil prices rose and economic data supported expectations for global economic recovery, with the loonie approaching its strongest level in over three years. Canada is a major exporter of commodities, including oil, so the loonie tends to be sensitive to the outlook for the global economy. Oil prices rose for a third day as easing of lockdowns in the United States and parts of Europe heralded a boost in fuel demand in the summer season and offset concerns about the rise of COVID-19 infections in India and Japan. Business Bloomberg 210505 07h20m Shell Sells U.S. Refinery in Latest Divestment (Bloomberg) -- Royal Dutch Shell Plc reached an agreement to sell its Puget Sound Refinery to HollyFrontier Corp. for $350 million in the latest major divestment for the European oil giant that’s moving away from processing crude.The U.S. refiner will also pay an estimated $150 million to $180 million for the hydrocarbon inventories at the facility near Anacortes, Washington, according to a HollyFrontier statement. The transaction also includes on-site co-generation and logistical assets.Shell is shrinking its refining portfolio as it adjusts its holdings to better align with a lower-carbon future. The company is instead focusing on sites that have integrated oil refineries and chemical plants -- a bet on the future growth of petrochemicals.In September, the European major said it would retain only six downstream facilities including Norco in Louisiana and Deer Park in Texas, paring back from 14. Shell then said in November it was shutting its Convent refinery in south Louisiana amid the devastating impacts from the pandemic on the fuel industry.HollyFrontier said it expects to fund the takeover with a one-year suspension of its regular quarterly dividend and cash on hand. The deal should be closed by the fourth quarter.“Puget Sound Refinery will complement our existing refining business, with sales into premium product markets and advantaged access to Canadian crude,” HollyFrontier Chief Executive Officer Mike Jennings said in the statement.(Corrects refinery location in second 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. Business Reuters 210505 07h17m Maersk expects tailwind to last amid high demand for containers Denmark's Maersk said on Wednesday it expected its "exceptionally strong" performance in the first quarter to continue for the rest of the year, driven by high demand for shipping containers from China to the United States. Maersk, which handles about one in five containers shipped worldwide, said there were not enough ships available in the world to meet a surge in consumer demand, resulting in record-high freight rates. "The situation today is that our customers are trying to meet a very, very high underlying demand, while at the same time rebuilding stock," Chief Executive Soren Skou told a media call. Business Bloomberg 210505 07h14m GM Posts ‘Blowout’ Quarterly Profit, Keeps 2021 Forecast (Bloomberg) -- General Motors Co. reported stronger-than-expected profit growth in the first quarter on robust vehicle demand in the U.S. and China even as a shortage of semiconductors curtailed production. It left its full-year outlook unchanged.The Detroit-based automaker posted adjusted profit of $2.25 a share Wednesday, beating a consensus estimate of $1.08. GM attributed the healthy performance to booming sales of full-size and higher-margin sport utility vehicles and pickup trucks.“We’ve had a very strong start to the year,” Chief Executive Officer Mary Barra said on a call with reporters.GM left its full-year earnings forecast unchanged despite the chip-procurement issues bedeviling the industry. It now expects earnings to be “at the higher end” of its earlier projection of adjusted Ebit of $10 billion to $11 billion, or $4.50 to $5.25 per share.“The company is highly confident in its full-year 2021 guidance outlined earlier this year as it works to manage through the semiconductor shortage,” it said in a statement.Evercore ISI analyst Chris McNally praised what he called GM’s “blowout” first-quarter performance and predicted a “relief rally” in auto stocks.Shares of the company rose 4.1% to $57.61 in premarket trading. The stock had risen about 33% so far this year as of Tuesday.Scarce SemiconductorsAutomakers have been forced to cut output as they scour their supply chains to secure semiconductors as buyers emerge from pandemic lockdowns and snap up increasingly popular crossovers, SUVs and pickups.GM said the chip shortfall, which has caused shutdowns at multiple plants, would continue to weigh on output this quarter. But it let stand a previous estimate for a hit of $1.5 billion to $2 billion.“We think Q2 will be the weakest and start to recover in Q3,” Barra told reporters.Ford Motor Co. saw its stock tumble last week after it said planned production would be halved in the second quarter, saw the chip shortfall extending in 2022 and forecast a $2.5 billion EBIT reduction from the shortage.GM credited its work to minimize the disruption to a company-wide effort involving everyone from engineers to sales staff, even as its inventory shrank to just 335,000 vehicles -- almost half the 668,000 cars and trucks on hand a year ago.“Our supply chain and manufacturing teams are maximizing production of high-demand and capacity-constrained vehicles,” Barra said in a letter to shareholders. “Our engineering teams are creating effective alternative solutions, and our sales teams, together with our dealers, are finding creative ways to satisfy customers despite lean inventories.”Another factor in GM’s favor: Unlike Ford, it doesn’t have as much exposure to Renesas Electronics Corp., a Japanese semiconductor maker which is recovering from a fire, according to Joel Levington, director of Bloomberg Intelligence’s credit research.No EV ImpactGM is making a major push to electrify its lineup by 2035, and roll out 30 EVs over the next four years. Barra said that shift is not being impacted by the lack of semiconductors.But the costs of production cuts has had a negative impact on the company’s cash position. GM burned through $1.9 billion in cash in the first quarter, $1 billion more than last year.Revenue came to $32.47 billion in the first quarter, slightly below the consensus estimate for $32.77 billion.GM’s financing unit also contributed to its first quarter performance. GM Financial’s adjusted EBIT came to $1.2 billion -- up from just $230 million a year earlier -- due in part to higher used vehicle prices and low interest rates.GM’s North American operations grew strongly, making $3.1 billion in profit compared with $2.2 billion a year ago.The company said its business in China, the world’s largest car market, earned $308 million equity income through its joint ventures. That was up from a loss of $167 million a year ago.(Updates with comment from CEO in third paragraph; Adds details throughout.)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. Howell date : 210505 07h12m26s Politics Yahoo Finance 210505 07h10m Facebook oversight board 'insists' company review Trump's indefinite suspension Facebook's oversight board has ruled on its decision on whether or not former-President Trump should be allowed back on its platform. Business Reuters 210505 07h05m Biden's Labor Department rescinds Trump-era rule affecting gig workers President Joe Biden's Labor Department on Wednesday rescinded a Trump-era rule that would have made it easier for businesses to classify workers as independent contractors instead of employees under the federal Fair Labor Standards Act (FLSA). "By withdrawing the independent contractor rule, we will help preserve essential worker rights and stop the erosion of worker protections that would have occurred had the rule gone into effect," Labor Secretary Marty Walsh said in a statement. "Too often, workers lose important wage and related protections when employers misclassify them as independent contractors," he said. Politics Yahoo Finance 210505 07h02m The good and the bad in Biden’s families plan It's not at all clear whether Biden's social-welfare revamp would benefit the overall economy. Business Reuters 210505 07h00m Wix.com buys Rise.ai to add gift cards to e-commerce platform Wix.com, which helps small businesses build and operate websites, said on Wednesday it bought Israeli startup Rise.ai to extend its platform to include gift and loyalty cards and rewards and referrals. Israel-based Wix said Rise.ai will add to the tools in its Wix eCommerce platform and help merchants better engage with customers. Using artificial intelligence, Rise.ai, will support Wix merchants in all supported countries and currencies, Wix said. Business Bloomberg 210505 06h56m Oil Nears $70 as U.S. Stockpile Drop Adds to Demand Optimism (Bloomberg) -- Oil extended a rally following a sharp drop in U.S. stockpiles and expectations of a summer surge in fuel demand.Brent neared $70 a barrel while West Texas Intermediate climbed for a third day and U.S. gasoline futures reached their highest since July 2018.The American Petroleum Institute reported a drop in crude supplies last week of 7.69 million barrels, according to people familiar with the data. If confirmed by government figures later on Wednesday, that would be the largest decline since January. The API report also showed lower gasoline and distillates inventories.Aiding the outlook for improved oil consumption, the U.S. is setting a new target of 70% of U.S. adults receiving at least one Covid-19 vaccine shot by July 4, while British Prime Minister Boris Johnson said his country’s lockdown rules will likely be scrapped in seven weeks. That’s offsetting concerns about weaker demand in parts of virus-hit Asia, including key importer India.Brent has soared by more than a third this year, part of a broader rally across raw materials that’s driven the Bloomberg Commodity Spot Index to the highest level in almost a decade. Investors are betting that rising vaccine-aided demand and greater mobility in key economies will drain crude stockpiles and support higher prices. That’s meant oil has extended gains in recent weeks even amid serious virus flare-ups in Asia.The bullish sentiment is also being fueled by “the general expectation that Europe is on the cusp of reopening its economy after one of the strictest spring lockdowns globally,” said Louise Dickson, oil markets analyst at Rystad Energy AS. “Current price levels are providing an economic incentive for storage to clear out, instead of waiting for a higher oil price in the future.”Still, while the U.S. and Europe are charting a course for reopening, the Covid-19 crisis in India may yet worsen. Saudi Arabia has lowered its prices for Asian customers as case numbers in the key crude importer crimp energy demand. Consultant Facts Global Energy now expects India’s oil-product demand to drop 670,000 barrels a day in May compared to three months earlier.Brent’s pricing patterns reflect the overall bullishness, with near-term contracts above those further out. The December 2021 contract was as much as $5 more costly than the same month in 2022, a market structure that indicates tightness and suggests traders are betting on a further rally.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. Business Yahoo Finance 210505 06h54m Lyft co-founder: Drivers have made it clear they don't want to be employees Lyft co-founder and president John Zimmer talks with Yahoo Finance about new comments from Labor Secretary Marty Walsh that recently sent shares of ride-hailing companies sharply lower. Howell date : 210504 21h28m17s World Business World Business Bloomberg 210504 19h28m Asian Stocks Mixed, U.S. Futures Up After Tech Dip: Markets Wrap (Bloomberg) -- Asian stocks were steady and U.S. equity futures edged up Wednesday after Treasury Secretary Janet Yellen’s comments on interest rates rattled markets overnight amid a technology selloff. The dollar held gains.S&P 500 contracts advanced following a climb in commodity, financial and industrial sectors that helped the gauge pare losses. Nasdaq 100 futures were in the green after weakness in the likes of Apple Inc., Tesla Inc. and Amazon.com Inc. dragged the index lower. Australian shares rose but Hong Kong fluctuated. Markets in Japan, China and South Korea are shut for holidays.Yellen said rates will likely rise as government spending ramps up and the economy responds with faster growth, comments that economists regarded as self-evident. In a subsequent interview, the former Federal Reserve Chair said she wasn’t predicting or recommending rate hikes.Commodities rallied to the highest in almost a decade as the economic rebound from the pandemic stokes demand for metals, food and energy. New Zealand’s dollar climbed against all its Group-of-10 peers on a strong jobs report. Treasury futures were steady, with cash markets closed in Asia.The debate on whether government spending could spur excessive inflation comes as stock valuations hover near the highest levels in two decades. Investors have been reluctant to push rallies further despite some blowout corporate earnings. While the Fed has assured markets that interest rates will remain at current lows throughout the recovery, strengthening data raised concerns that policy makers may move to tighten sooner than anticipated.Read: Nasdaq 100’s Worst Day Since March Sparked by Inflation Fears“Yellen’s comments did not specify a timeframe for rises and she clarified her comments by saying that she was not recommending FOMC rate hikes,” said Kim Mundy, currency strategist at the Commonwealth Bank of Australia. “We still expect the FOMC will be very patient as economic data improves.”The latest numbers showed the U.S. trade deficit widening to a new record in March. Meanwhile, a senior White House economic aide demurred on the question of whether President Joe Biden will nominate Fed Chair Jerome Powell for a second four-year term, saying the decision on selecting the next central bank chief will come after a thorough process.Oil extended a rally amid declining U.S. stockpiles and reopening drives in the U.S. and Europe.Here are some key events to watch this week:U.S. ADP employment change is due WednesdayChicago Fed President Charles Evans gives a virtual speech at an event hosted by Bard College on Wednesday. Cleveland Fed President Loretta Mester gives a virtual speech to the Boston Economic ClubBank of England rate decision ThursdayThe April U.S. employment report is released on FridayThese are some of the main moves in markets:StocksS&P 500 futures rose 0.2% as of 9:38 a.m. in Hong Kong. The S&P 500 Index lost 0.7%Nasdaq 100 contracts added 0.1% after the index fell 1.9%Australia’s S&P/ASX 200 increased 0.7%Hong Kong’s Hang Seng Index rose 0.2%CurrenciesThe Japanese yen traded at 109.35 per dollarThe offshore yuan was at 6.4840 per dollarThe Bloomberg Dollar Spot Index fell less than 0.1%The euro traded at $1.2020BondsThe yield on 10-year Treasuries was at 1.59% on TuesdayCommoditiesWest Texas Intermediate crude rose 1% to $66.34 a barrelGold was at $1,778.85 an ounceFor 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. Business Reuters 210504 19h28m Exclusive: Boeing faces new hurdle in 737 MAX electrical grounding issue - sources U.S. air safety officials have asked Boeing Co to supply fresh analysis and documentation showing numerous 737 MAX subsystems would not be affected by electrical grounding issues first flagged in three areas of the jet in April, two people familiar with the matter told Reuters. The extra analysis injects new uncertainty over the timing of when Boeing's best-selling jetliner would be cleared to fly by the U.S. Federal Aviation Administration (FAA). The electrical problems have suspended nearly a quarter of its 737 MAX fleet. Business Bloomberg 210504 19h28m Inflation Risk Intensifies With Supply Shortages Multiplying (Bloomberg) -- Signs of inflation are picking up, with a mounting number of consumer-facing companies warning in recent days that supply shortages and logistical logjams may force them to raise prices.Tight inventories of materials as varied as semiconductors, steel, lumber and cotton are showing up in survey data, with manufacturers in Europe and the U.S. this week flagging record backlogs and higher input prices as they scramble to replenish stockpiles and keep up with accelerating consumer demand.As commodities become increasingly expensive, whether faster inflation proves transitory -- or not -- is the biggest question for policy makers and markets. Rising prices and the potential for a response from central banks topped the list of concerns for money managers surveyed by Bank of America Corp.Many economists and central bankers, from the Federal Reserve on down, maintain that price gains are temporary and will be curbed by forces such as virus worries and unemployment. Investors remain skeptical, with businesses including Nestle SA and Colgate-Palmolive Co. already announcing they’ll need to raise prices.U.S. Treasury Secretary Janet Yellen, a former Fed chair, entered the debate on Tuesday when she ruffled markets with the observation that rates will likely rise as government spending ramps up. She later clarified she was neither predicting nor recommending an increase.The Bloomberg Commodity Spot Index, which tracks 23 raw materials, has risen to its highest level in almost a decade. That has pushed a gauge of global manufacturing output prices to its highest point since 2009, and U.S. producer prices to levels not seen since 2008, according to data from JPMorgan Chase & Co. and IHS Markit. JPMorgan analysts also estimate non-food and energy import prices in the biggest economies rose almost 4% in the first quarter, the most in three years.“Risk clearly leans to the upside in the current environment,” said John Mothersole, pricing and purchasing research director at IHS Markit. “The surge in commodity prices over the past year now guarantees higher goods-price inflation this summer.”The IHS Markit analysis across oil, chemicals, steel, copper, zinc, lumber, pulp and rubber expects the price boosts to fade closer to the end of the year. Meanwhile, strategists at Blackrock Investment Institute wrote Monday that they see U.S. consumer-price increases averaging just under 3% from 2025-2030, though that pace is “still under-priced by markets.”The case for higher-for-longer inflation into 2022 often rests on the trillions of dollars being pumped into infrastructure projects globally in a low-interest rate atmosphere, most notably in the U.S. That has supercharged a rally across raw materials, as major economies recover from the pandemic amid growing signs of shortage across several markets.Some businesses have found they can’t afford to wait for “temporary” increases to pass. That means consumers can expect to deal with higher costs for a range of daily items, including garbage bags and children’s clothes.“Straight price increases will continue to be an important element as we look at the back half of the year,” Colgate-Palmolive Chief Executive Officer Noel Wallace said late last month when the company announced earnings. “I anticipate that you’ll see more price increases across the sector, given the headwinds that everyone has faced in this space.”Higher cotton prices from Chinese producers are pushing clothes-maker Carter’s Inc. to consider how much of the increase it can pass along.“We’re beginning to see signs of inflation in product input costs, particularly those related to fabric,” Chief Executive Officer Michael Casey said on an April 30 earnings call. The company will offer “fewer promotions” this year, he said, amid a return of resilient shoppers buoyed by stimulus payments.The underlying materials shortage has spooked Greg Sharenow, who manages a portfolio focused on energy and commodities at Pacific Investment Management Co.The premium on near-term deliveries over future deliveries for commodities tracked by the Bloomberg Commodity Index has jumped to the highest in more than 15 years, signaling immediate physical shortages across different markets, Sharenow said. He sees the price surge this time as more organic, rather than the kind of anticipatory demand seen from 2005 to 2008.Edward Robinson, deputy managing director and chief economist at Singapore’s central bank, said in a speech last week that he’s watching Chinese producer prices closely as an “important upside risk” to his baseline call that inflation should stay in check, helped by labor-market slack.A surge in copper is crippling some Chinese manufacturers, who have idled units, delayed deliveries and even defaulted on bank loans, data from a Shanghai Metals Market survey show. That’s already rippled through the production chain, delaying projects by power grids and property developers.Lumber has been in the spotlight as red-hot housing markets, especially in advanced economies, are driving up costs for the commodity.Fed Chairman Jerome Powell said last week the central bank was watching that market closely, even though he doesn’t currently have financial stability concerns around housing. Still, the sector has been emblematic of the K-shaped recovery, with cost surges pricing out middle-income buyers while homeowners reap gains.Markets have responded more calmly of late to the Fed’s mantra, with bond yields little changed after Powell last week doubled down on his inflation read and still-easy policy stance. The inflation run across so many materials, though, could break that patience, as pressure builds on businesses and officials to ward off price increases for consumers.“One always has to be careful not to overplay a few anecdotes, and project that onto the broader economy,” Douglas Porter, chief economist at BMO Capital Markets, said in a May 1 report. “But as the anecdotes accumulate, they eventually become data.”Porter pointed to a sampling of 10 recent datasets, including U.S. employment costs, Canadian wages and still-soaring shipping costs.“As rising inflation risks suggest,” he said, “when you run things hot, you risk getting burned.”(Updates to add Yellen’s clarification of earlier comments in fifth 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. World Reuters 210504 19h28m UPDATE 1-Japan considering state of emergency for Tokyo, other areas beyond May 11 - media The Japanese government is considering an extension of the state of emergency for Tokyo and other major urban areas that was scheduled to end on May 11, the Yomiuri Newspaper said on Wednesday. Japan had placed Tokyo, Osaka, Kyoto and Hyogo prefectures under a 17-day state of emergency on April 25 in an effort to reverse the surge in coronavirus infections. Japanese Prime Minister Yoshihide Suga will meet with the economics minister, the health minister, and other relevant cabinet ministers on Wednesday to discuss an extension, the Yomiuri reported without citing sources. Howell date : 210504 20h57m41s World Reuters 210504 20h26m UPDATE 2-Japan faces longer state of emergency, casting doubt on Olympics The Japanese government is considering extending a coronavirus spurred state of emergency in Tokyo and other major urban areas, a move that could cast doubt on the planned Summer Olympics. Officials were leaning toward an extension of the measures in Tokyo, Osaka, Kyoto and Hyogo prefectures beyond May 11 as the country battles a surge in COVID-19 cases, the Yomiuri Newspaper said on Wednesday. Extending the measures, which were imposed on April 25, would likely fan persistent concerns about whether the Tokyo Olympics, scheduled to begin on July 23, can be held as planned. Business Bloomberg 210504 20h18m Oil Extends Rally With Brent Nearing $70 After Stockpiles Drop (Bloomberg) -- Oil extended a rally after U.S. stockpiles fell and investors applauded reopening drives in the U.S. and Europe that will aid demand.West Texas Intermediate surged 1.2% at the open, the most since Nov. 4, Brent neared $70 a barrel, and gasoline futures hit the highest since July 2018. The American Petroleum Institute reported crude supplies fell by 7.69 million barrels last week, according to people familiar with the data. If confirmed by government figures on Wednesday, that would be the largest drop since late January. The API report also showed lower gasoline and distillate inventories.Aiding the outlook for improved oil consumption, the U.S. is setting a new target of 70% of U.S. adults receiving at least one Covid-19 vaccine shot by July 4, while British Prime Minister Boris Johnson said his country’s lockdown rules are will be scrapped in seven weeks. That’s offsetting concerns about weaker demand in parts of virus-hit Asia, including key importer India.U.S. futures have soared by more than a third this year, part of a broad rally across raw materials that’s driven the Bloomberg Commodity Spot Index to the highest level in almost a decade. Investors are betting that rising vaccine-aided demand and greater mobility in key economies will drain crude stockpiles and support higher prices. That’s meant oil has extended gains in recent weeks even amid the serious virus flare-ups in Asia.“The rally has some momentum behind it,” said Daniel Hynes, senior commodities strategist at Australia and New Zealand Banking Group Ltd., adding that crude is a big part of the very strong investor appetite being seen for commodities. “The recovery was always going to be uneven and we are now starting to see more positive factors align, which is stoking hopes for an even stronger pick up in demand in the medium term.”While the U.S. and Europe are charting a course for reopening, the Covid-19 crisis in India may yet worsen, with some research models projecting the death toll could more than double. The nation’s oil imports may tumble by more than 1 million barrels a day to 3.1 million in the coming weeks, according to Kpler.Still, Brent’s pricing patterns reflect the overall bullishness, with near-term contracts above those further out. The prompt timespread was 45 cents a barrel in backwardation compared with 32 cents a month ago. In addition, the December 2021 contract was $4.05 more costly than the same month in 2022.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. Business Business Business Business Politics Reuters 210504 18h57m UPDATE 1-U.S. House panel discusses low-carbon fuel with airline, biofuel industries Members of a U.S. House of Representatives subcommittee met on Tuesday with representatives from the biofuels and airline industries to discuss ways to expand production of low-carbon aviation fuel, the subcommittee chair told Reuters. The meeting is part of a broader push by lawmakers to advance climate and energy legislation amid calls by U.S. President Joe Biden's administration to rapidly slash greenhouse gas emissions and decarbonize the U.S. economy by 2050. The aviation subcommittee of the Democratic-led House Committee on Transportation and Infrastructure met with low-carbon fuels provider World Energy, the Advanced Biofuels Association and Airlines for America, among others, two sources familiar with the meeting said. Howell date : 210504 20h27m03s World Reuters 210504 20h08m Philippines approves emergency use of Moderna's COVID-19 vaccine The known and potential benefits of Moderna outweighed the known and potential risks, Food and Drug Administration chief Rolando Enrique Domingo said during an online forum, adding it would be administered to individuals aged 18 and above. The Philippines expects this month the delivery of 194,000 doses of Moderna's vaccine, the seventh to be approved for emergency use in the country. Business Bloomberg 210504 19h57m Asian Stocks Mixed, U.S. Futures Up After Tech Dip: Markets Wrap (Bloomberg) -- Asian stocks were steady and U.S. equity futures edged up Wednesday after Treasury Secretary Janet Yellen’s comments on interest rates rattled markets overnight amid a technology selloff. The dollar held gains.S&P 500 contracts advanced following a climb in commodity, financial and industrial sectors that helped the gauge pare losses. Nasdaq 100 futures were in the green after weakness in the likes of Apple Inc., Tesla Inc. and Amazon.com Inc. dragged the index lower. Australian shares rose but Hong Kong fluctuated. Markets in Japan, China and South Korea are shut for holidays.Yellen said rates will likely rise as government spending ramps up and the economy responds with faster growth, comments that economists regarded as self-evident. In a subsequent interview, the former Federal Reserve Chair said she wasn’t predicting or recommending rate hikes.Commodities rallied to the highest in almost a decade as the economic rebound from the pandemic stokes demand for metals, food and energy. New Zealand’s dollar climbed against all its Group-of-10 peers on a strong jobs report. Treasury futures were steady, with cash markets closed in Asia.The debate on whether government spending could spur excessive inflation comes as stock valuations hover near the highest levels in two decades. Investors have been reluctant to push rallies further despite some blowout corporate earnings. While the Fed has assured markets that interest rates will remain at current lows throughout the recovery, strengthening data raised concerns that policy makers may move to tighten sooner than anticipated.Read: Nasdaq 100’s Worst Day Since March Sparked by Inflation Fears“Yellen’s comments did not specify a timeframe for rises and she clarified her comments by saying that she was not recommending FOMC rate hikes,” said Kim Mundy, currency strategist at the Commonwealth Bank of Australia. “We still expect the FOMC will be very patient as economic data improves.”The latest numbers showed the U.S. trade deficit widening to a new record in March. Meanwhile, a senior White House economic aide demurred on the question of whether President Joe Biden will nominate Fed Chair Jerome Powell for a second four-year term, saying the decision on selecting the next central bank chief will come after a thorough process.Oil extended a rally amid declining U.S. stockpiles and reopening drives in the U.S. and Europe.Here are some key events to watch this week:U.S. ADP employment change is due WednesdayChicago Fed President Charles Evans gives a virtual speech at an event hosted by Bard College on Wednesday. Cleveland Fed President Loretta Mester gives a virtual speech to the Boston Economic ClubBank of England rate decision ThursdayThe April U.S. employment report is released on FridayThese are some of the main moves in markets:StocksS&P 500 futures rose 0.2% as of 9:38 a.m. in Hong Kong. The S&P 500 Index lost 0.7%Nasdaq 100 contracts added 0.1% after the index fell 1.9%Australia’s S&P/ASX 200 increased 0.7%Hong Kong’s Hang Seng Index rose 0.2%CurrenciesThe Japanese yen traded at 109.35 per dollarThe offshore yuan was at 6.4840 per dollarThe Bloomberg Dollar Spot Index fell less than 0.1%The euro traded at $1.2020BondsThe yield on 10-year Treasuries was at 1.59% on TuesdayCommoditiesWest Texas Intermediate crude rose 1% to $66.34 a barrelGold was at $1,778.85 an ounceFor 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. Business Reuters 210504 19h42m Exclusive: Boeing faces new hurdle in 737 MAX electrical grounding issue - sources U.S. air safety officials have asked Boeing Co to supply fresh analysis and documentation showing numerous 737 MAX subsystems would not be affected by electrical grounding issues first flagged in three areas of the jet in April, two people familiar with the matter told Reuters. The extra analysis injects new uncertainty over the timing of when Boeing's best-selling jetliner would be cleared to fly by the U.S. Federal Aviation Administration (FAA). The electrical problems have suspended nearly a quarter of its 737 MAX fleet. Business Bloomberg 210504 19h31m Inflation Risk Intensifies With Supply Shortages Multiplying (Bloomberg) -- Signs of inflation are picking up, with a mounting number of consumer-facing companies warning in recent days that supply shortages and logistical logjams may force them to raise prices.Tight inventories of materials as varied as semiconductors, steel, lumber and cotton are showing up in survey data, with manufacturers in Europe and the U.S. this week flagging record backlogs and higher input prices as they scramble to replenish stockpiles and keep up with accelerating consumer demand.As commodities become increasingly expensive, whether faster inflation proves transitory -- or not -- is the biggest question for policy makers and markets. Rising prices and the potential for a response from central banks topped the list of concerns for money managers surveyed by Bank of America Corp.Many economists and central bankers, from the Federal Reserve on down, maintain that price gains are temporary and will be curbed by forces such as virus worries and unemployment. Investors remain skeptical, with businesses including Nestle SA and Colgate-Palmolive Co. already announcing they’ll need to raise prices.U.S. Treasury Secretary Janet Yellen, a former Fed chair, entered the debate on Tuesday when she ruffled markets with the observation that rates will likely rise as government spending ramps up. She later clarified she was neither predicting nor recommending an increase.The Bloomberg Commodity Spot Index, which tracks 23 raw materials, has risen to its highest level in almost a decade. That has pushed a gauge of global manufacturing output prices to its highest point since 2009, and U.S. producer prices to levels not seen since 2008, according to data from JPMorgan Chase & Co. and IHS Markit. JPMorgan analysts also estimate non-food and energy import prices in the biggest economies rose almost 4% in the first quarter, the most in three years.“Risk clearly leans to the upside in the current environment,” said John Mothersole, pricing and purchasing research director at IHS Markit. “The surge in commodity prices over the past year now guarantees higher goods-price inflation this summer.”The IHS Markit analysis across oil, chemicals, steel, copper, zinc, lumber, pulp and rubber expects the price boosts to fade closer to the end of the year. Meanwhile, strategists at Blackrock Investment Institute wrote Monday that they see U.S. consumer-price increases averaging just under 3% from 2025-2030, though that pace is “still under-priced by markets.”The case for higher-for-longer inflation into 2022 often rests on the trillions of dollars being pumped into infrastructure projects globally in a low-interest rate atmosphere, most notably in the U.S. That has supercharged a rally across raw materials, as major economies recover from the pandemic amid growing signs of shortage across several markets.Some businesses have found they can’t afford to wait for “temporary” increases to pass. That means consumers can expect to deal with higher costs for a range of daily items, including garbage bags and children’s clothes.“Straight price increases will continue to be an important element as we look at the back half of the year,” Colgate-Palmolive Chief Executive Officer Noel Wallace said late last month when the company announced earnings. “I anticipate that you’ll see more price increases across the sector, given the headwinds that everyone has faced in this space.”Higher cotton prices from Chinese producers are pushing clothes-maker Carter’s Inc. to consider how much of the increase it can pass along.“We’re beginning to see signs of inflation in product input costs, particularly those related to fabric,” Chief Executive Officer Michael Casey said on an April 30 earnings call. The company will offer “fewer promotions” this year, he said, amid a return of resilient shoppers buoyed by stimulus payments.The underlying materials shortage has spooked Greg Sharenow, who manages a portfolio focused on energy and commodities at Pacific Investment Management Co.The premium on near-term deliveries over future deliveries for commodities tracked by the Bloomberg Commodity Index has jumped to the highest in more than 15 years, signaling immediate physical shortages across different markets, Sharenow said. He sees the price surge this time as more organic, rather than the kind of anticipatory demand seen from 2005 to 2008.Edward Robinson, deputy managing director and chief economist at Singapore’s central bank, said in a speech last week that he’s watching Chinese producer prices closely as an “important upside risk” to his baseline call that inflation should stay in check, helped by labor-market slack.A surge in copper is crippling some Chinese manufacturers, who have idled units, delayed deliveries and even defaulted on bank loans, data from a Shanghai Metals Market survey show. That’s already rippled through the production chain, delaying projects by power grids and property developers.Lumber has been in the spotlight as red-hot housing markets, especially in advanced economies, are driving up costs for the commodity.Fed Chairman Jerome Powell said last week the central bank was watching that market closely, even though he doesn’t currently have financial stability concerns around housing. Still, the sector has been emblematic of the K-shaped recovery, with cost surges pricing out middle-income buyers while homeowners reap gains.Markets have responded more calmly of late to the Fed’s mantra, with bond yields little changed after Powell last week doubled down on his inflation read and still-easy policy stance. The inflation run across so many materials, though, could break that patience, as pressure builds on businesses and officials to ward off price increases for consumers.“One always has to be careful not to overplay a few anecdotes, and project that onto the broader economy,” Douglas Porter, chief economist at BMO Capital Markets, said in a May 1 report. “But as the anecdotes accumulate, they eventually become data.”Porter pointed to a sampling of 10 recent datasets, including U.S. employment costs, Canadian wages and still-soaring shipping costs.“As rising inflation risks suggest,” he said, “when you run things hot, you risk getting burned.”(Updates to add Yellen’s clarification of earlier comments in fifth 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. World World World Business Howell date : 210504 19h26m26s World Reuters 210504 19h01m PRESS DIGEST-British Business - May 5 The following are the top stories on the business pages of British newspapers. - A third jab is to be offered to everyone in Britain over 50 in the autumn in an attempt to eradicate the threat from COVID-19 entirely by Christmas, The Times has been told. - British officers will be embedded in Indian police forces to help break up people-smuggling gangs as part of a deal struck between the two countries to crack down on illegal immigration. Business Reuters 210504 18h57m Asia shares flat, holidays help blunt U.S. tech retreat Asian shares risked falling for a fourth straight session on Wednesday as sentiment took a knock from a selloff in large cap Wall Street tech darlings, combined with talk of rising U.S. interest rates. Holidays in Japan, China and South Korea limited the early reaction, leaving MSCI's broadest index of Asia-Pacific shares outside Japan dithering either side of flat. Japan's Nikkei was shut, but futures traded down at 28,735 compared to the last cash close of 28,812. Business Reuters 210504 18h55m GLOBAL MARKETS-Asia shares flat, holidays help blunt U.S. tech retreat Asian shares risked falling for a fourth straight session on Wednesday as sentiment took a knock from a selloff in large cap Wall Street tech darlings, combined with talk of rising U.S. interest rates. Holidays in Japan, China and South Korea limited the early reaction, leaving MSCI's broadest index of Asia-Pacific shares outside Japan dithering either side of flat. Japan's Nikkei was shut, but futures traded down at 28,735 compared to the last cash close of 28,812. World Reuters 210504 18h51m UPDATE 1-Syria intercepts Israeli attacks near Latakia on Mediterranean coast -state media Syrian air defences intercepted an Israeli attack on several areas in northwestern Syria, including the port city of Latakia along the Mediterranean coast, state media said. The Israeli dawn attack on Wednesday also hit the town of Hifa, east of the port city of Latakia, and Misyaf in Hama province. Earlier state media had reported explosions in near Latakia city which residents heard across the city and its outskirts. World Reuters 210504 18h35m PRESS DIGEST-Financial Times - May 5 Wall Street giant Goldman Sachs told its bankers in the United States and UK on Tuesday that they should be ready to return to the office next month, as the two countries loosen restrictions in response to falling Covid-19 cases. - Nestlé is taking on Oatly in Europe with the launch of pea milk brand Wunda, in a belated play by the world's largest food company for a share of the growing $17bn plant-based dairy market. - The UK and India have outlined a "2030 road map" to strengthen bilateral ties in key areas such as trade, education and defence, as London announced that the two countries had agreed investment deals worth almost £1bn. Business Bloomberg 210504 18h29m Oil Posts Strongest Open Since November as Rally Gathers Steam (Bloomberg) -- Oil extended a rally after U.S. stockpiles fell and investors applauded reopening drives in the U.S. and Europe that will aid demand.West Texas Intermediate surged 1.2% at the open, the most since Nov. 4, and gasoline futures hit the highest since July 2018. The American Petroleum Institute reported domestic crude supplies fell by 7.69 million barrels last week, according to people familiar with the data. If confirmed by U.S. government figures on Wednesday, that would be the largest drop since late January. The API report also showed lower gasoline and distillate inventories.Aiding the outlook for improved oil consumption, the U.S. is setting a new target of 70% of U.S. adults receiving at least one Covid-19 vaccine shot by July 4, while British Prime Minister Boris Johnson said his country’s lockdown rules are will be scrapped in seven weeks. That’s offsetting concerns about weaker demand in parts of virus-hit Asia, including key importer India.U.S. futures are up more than 36% this year -- amid a broad rally across commodities -- as investors bet the rollout of vaccines will permit a return to pre-pandemic conditions in key economies. The European Union plans to ease curbs for vaccinated travelers this summer, while New York will lift most virus restrictions this month. The world’s 20 major economies are set to back efforts to introduce so-called vaccine passports to boost travel and tourism.Crude’s gains have come despite the worsening Covid-19 crisis in India, as well as outbreaks elsewhere in Asia. India’s wave has the potential to worsen in the coming weeks, with some research models projecting that the death toll could more than double from current levels.Still, Brent’s pricing patterns reflect the market’s bullishness, with near-term contracts trading above those further out. The prompt timespread was 45 cents a barrel in backwardation compared with 32 cents a month ago. In addition, the December 2021 contract was $4.05 more costly than the same month in 2022.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. Howell date : 210504 18h55m49s World Reuters 210504 18h35m PRESS DIGEST-Financial Times - May 5 Wall Street giant Goldman Sachs told its bankers in the United States and UK on Tuesday that they should be ready to return to the office next month, as the two countries loosen restrictions in response to falling Covid-19 cases. - Nestlé is taking on Oatly in Europe with the launch of pea milk brand Wunda, in a belated play by the world's largest food company for a share of the growing $17bn plant-based dairy market. - The UK and India have outlined a "2030 road map" to strengthen bilateral ties in key areas such as trade, education and defence, as London announced that the two countries had agreed investment deals worth almost £1bn. Business Bloomberg 210504 18h28m Oil Posts Strongest Open Since November as Rally Gathers Steam (Bloomberg) -- Oil extended a rally after U.S. stockpiles fell and investors applauded reopening drives in the U.S. and Europe that will aid demand.West Texas Intermediate surged 1.2% at the open, the most since Nov. 4, and gasoline futures hit the highest since July 2018. The American Petroleum Institute reported domestic crude supplies fell by 7.69 million barrels last week, according to people familiar with the data. If confirmed by U.S. government figures on Wednesday, that would be the largest drop since late January. The API report also showed lower gasoline and distillate inventories.Aiding the outlook for improved oil consumption, the U.S. is setting a new target of 70% of U.S. adults receiving at least one Covid-19 vaccine shot by July 4, while British Prime Minister Boris Johnson said his country’s lockdown rules are will be scrapped in seven weeks. That’s offsetting concerns about weaker demand in parts of virus-hit Asia, including key importer India.U.S. futures are up more than 36% this year -- amid a broad rally across commodities -- as investors bet the rollout of vaccines will permit a return to pre-pandemic conditions in key economies. The European Union plans to ease curbs for vaccinated travelers this summer, while New York will lift most virus restrictions this month. The world’s 20 major economies are set to back efforts to introduce so-called vaccine passports to boost travel and tourism.Crude’s gains have come despite the worsening Covid-19 crisis in India, as well as outbreaks elsewhere in Asia. India’s wave has the potential to worsen in the coming weeks, with some research models projecting that the death toll could more than double from current levels.Still, Brent’s pricing patterns reflect the market’s bullishness, with near-term contracts trading above those further out. The prompt timespread was 45 cents a barrel in backwardation compared with 32 cents a month ago. In addition, the December 2021 contract was $4.05 more costly than the same month in 2022.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. Business Bloomberg 210504 18h20m DCP Ropes In 51job Co-Founder, Ocean Link for $5 Billion Buyout (Bloomberg) -- Recruitment site 51job Inc. received an updated buyout proposal from a consortium led by DCP Capital in what could be one of the largest takeovers of a U.S.-listed Chinese firm this year.DCP has teamed up with private-equity firm Ocean Link and 51job Chief Executive Officer and co-founder Rick Yan and has sent a revised version of the takeover bid it originally announced in September to the company’s board, it said in an announcement Tuesday, confirming an earlier Bloomberg News report.The Beijing-based buyout firm in September made a non-binding cash offer of $79.05 per common share for all of the company’s outstanding shares, valuing 51job at about $5.3 billion. The company formed a special committee to evaluate and consider the offer as well as other potential strategic alternatives.The committee will continue to evaluate the proposal in light of the latest development, the company said. No decisions have been made regarding the proposal or any alternative strategic option, they said.51job’s American depositary shares closed up 11% on Tuesday, their biggest move since the proposal was originally disclosed in September.Founded in 1998, 51job provides human resources services in China. It offers recruitment, employee retention and other personnel-related assistance. Its biggest shareholder is Japan’s Recruit Holdings Co., while Yan owns a significant minority stake in the company.The company has expanded over the years both organically and via acquisitions including Yingjiesheng.com in 2015.DCP Capital is led by former KKR & Co. and Morgan Stanley private equity dealmakers, according to its website. Ocean Link, which focuses on China’s consumer, travel and telecommunications, media and technology sectors, was part of an investor group that agreed to take 58.com Inc. private last year in a deal valuing China’s biggest online classifieds firm at about $8.7 billion.(Updates with Tuesday’s share price close in fifth 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. Business Bloomberg 210504 18h17m U.S. Futures, Asian Stocks Steady After Tech Drop: Markets Wrap (Bloomberg) -- U.S. equity futures and Asian stocks were steady Wednesday after a selloff in technology shares amid comments from Treasury Secretary Janet Yellen on interest rates that rattled markets. The dollar held gains.S&P 500 contracts were little changed following a climb in commodity, financial and industrial sectors that helped the gauge pare losses. Weakness in megacaps such as Apple Inc., Tesla Inc. and Amazon.com Inc. dragged the Nasdaq 100 lower. Australian shares fluctuated, while Hong Kong futures declined. Holidays in key markets including Japan, China and South Korea will limit trade in Asian hours.Yellen said rates will likely rise as government spending ramps up and the economy responds with faster growth, comments that economists regarded as self-evident. In a subsequent interview, the former Federal Reserve Chair said she wasn’t predicting or recommending rate hikes.Commodities rallied to the highest in almost a decade as a rebound from the pandemic in the world’s largest economies stokes demand for metals, food and energy. Treasury futures were steady, with cash markets closed in Asia.The debate on whether government spending could spur excessive inflation comes as stock valuations hover near the highest levels in two decades. Investors have been reluctant to push rallies further despite some blowout corporate earnings. While the Fed has assured markets that interest rates will remain at current lows throughout the recovery, strengthening data raised concerns that policy makers may move to tighten sooner than anticipated.Read: Nasdaq 100’s Worst Day Since March Sparked by Inflation Fears“Yellen’s comments did not specify a timeframe for rises and she clarified her comments by saying that she was not recommending FOMC rate hikes,” said Kim Mundy, currency strategist at the Commonwealth Bank of Australia. “We still expect the FOMC will be very patient as economic data improves.”The latest numbers showed the U.S. trade deficit widening to a new record in March. Meanwhile, a senior White House economic aide demurred on the question of whether President Joe Biden will nominate Fed Chair Jerome Powell for a second four-year term, saying the decision on selecting the next central bank chief will come after a thorough process.Here are some key events to watch this week:U.S. ADP employment change is due WednesdayChicago Fed President Charles Evans gives a virtual speech at an event hosted by Bard College on Wednesday. Cleveland Fed President Loretta Mester gives a virtual speech to the Boston Economic ClubBank of England rate decision ThursdayThe April U.S. employment report is released on FridayThese are some of the main moves in markets:StocksS&P 500 futures rose less than 0.1% as of 8:11 a.m. in Hong Kong. The S&P 500 Index lost 0.7%Nasdaq 100 contracts were flat after the index fell 1.9%Australia’s S&P/ASX 200 slipped 0.1%Hang Seng Index futures declined 1.1% earlierCurrenciesThe Japanese yen traded at 109.34 per dollarThe offshore yuan was at 6.4840 per dollarThe Bloomberg Dollar Spot Index was steadyThe euro traded at $1.2015BondsThe yield on 10-year Treasuries was steady at 1.59%CommoditiesWest Texas Intermediate crude rose 0.8% to $66.23 a barrelGold was at $1,777.70 an ounceFor 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. Business Reuters 210504 18h15m Starlink satellite internet service gets 500,000 preorders, Musk says "Only limitation is high density of users in urban areas," Musk tweeted, responding to a post from a CNBC reporter that said the $99 deposits SpaceX took for the service were fully refundable and did not guarantee service. "More of a challenge when we get into the several million user range," Musk said. SpaceX has not set a date for Starlink's service launch, but commercial service would not likely be offered in 2020 as it had previously planned. Business Reuters 210504 18h04m FOREX-Dollar tries to build rally, eyes major euro bulwark "If sustained, this could suggest today's session may be important for near-term direction, particularly if EURUSD managed to close below the key $1.20 pivot," said Ned Rumpeltin, European head of FX strategy at TD Securities. The bounce was partly sparked by comments from U.S. Treasury Secretary Janet Yellen that rate hikes may be needed to stop the economy overheating. Yellen later downplayed their importance, but even the slightest mention of U.S. tightening has an outsized impact in markets that have become so dependent on monetary stimulus. Business Bloomberg 210504 18h01m Equinox Discusses Going Public Via Social Capital SPAC (Bloomberg) -- Equinox Holdings, the luxury gym operator popular among financiers and celebrities, has held talks to go public by merging with a blank-check company backed by investor Chamath Palihapitiya, according to people with knowledge of the matter.Negotiations between Social Capital Hedosophia Holdings Corp. VI and Equinox, which also operates SoulCycle and Blink Fitness, aren’t finalized and it’s possible that discussions may not result in a deal, said one of the people, asking not to be identified because the information is private. A transaction could value the combined entity at more than $7.5 billion, one of the people said. That would include a meaningful injection from a so-called private investment in public equity, or PIPE, deal.A representative for Equinox declined to comment on the talks and didn’t immediately respond to requests for comment regarding the specific Social Capital vehicle. A representative for Social Capital Hedosophia declined to comment.Equinox, which was forced to shutter many locations last year due to the pandemic, reported a loss of around $350 million on about $650 million in revenue last year and had drawn interest from SPACs valuing it at $7 billion or more, Bloomberg News reported last month. Founded in 1991, it expanded into hospitality, opening its first hotel in 2019 in Manhattan’s Hudson Yards neighborhood.Led by executive Chairman Harvey Spevak, Equinox struck a funding deal with private equity firm Silver Lake last year to build out its Equinox+ digital platform. L Catterton, the consumer-focused private equity firm, also owns a minority stake.Palihapitiya, in partnership with Ian Osborne of Hedosophia, has raised six special purpose acquisition companies, according to data compiled by Bloomberg. Social Capital Hedosophia SPACs have merged with companies to form Virgin Galactic Holdings Inc., Opendoor Technologies Inc. and Clover Health Investments Corp.. Another Palihapitiya-Osborne vehicle has agreed to merge with Social Finance Inc., or SoFi.Social Capital Hedosophia Holdings Corp. VI raised $1.15 billion in an October initial public offering. Its shares closed on Tuesday at $10.43.(Updates potential valuation in second 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. Business Reuters 210504 17h57m Facebook's Workplace tool reaches 7 million paid subscribers The COVID-19 pandemic has changed work for millions globally who have switched from being in the office to working from home, fuelling demand for enterprise connectivity platforms, such as Workplace, Slack and Microsoft Teams. Workplace had 5 million paid users in May 2020. Microsoft Teams has 145 million daily users, versus 115 million in October, Microsoft Corp said last week. Howell date : 210504 18h25m13s Business Bloomberg 210504 18h18m U.S. Futures, Asian Stocks Steady After Tech Drop: Markets Wrap (Bloomberg) -- U.S. equity futures and Asian stocks were steady Wednesday after a selloff in technology shares amid comments from Treasury Secretary Janet Yellen on interest rates that rattled markets. The dollar held gains.S&P 500 contracts were little changed following a climb in commodity, financial and industrial sectors that helped the gauge pare losses. Weakness in megacaps such as Apple Inc., Tesla Inc. and Amazon.com Inc. dragged the Nasdaq 100 lower. Australian shares fluctuated, while Hong Kong futures declined. Holidays in key markets including Japan, China and South Korea will limit trade in Asian hours.Yellen said rates will likely rise as government spending ramps up and the economy responds with faster growth, comments that economists regarded as self-evident. In a subsequent interview, the former Federal Reserve Chair said she wasn’t predicting or recommending rate hikes.Commodities rallied to the highest in almost a decade as a rebound from the pandemic in the world’s largest economies stokes demand for metals, food and energy. Treasury futures were steady, with cash markets closed in Asia.The debate on whether government spending could spur excessive inflation comes as stock valuations hover near the highest levels in two decades. Investors have been reluctant to push rallies further despite some blowout corporate earnings. While the Fed has assured markets that interest rates will remain at current lows throughout the recovery, strengthening data raised concerns that policy makers may move to tighten sooner than anticipated.Read: Nasdaq 100’s Worst Day Since March Sparked by Inflation Fears“Yellen’s comments did not specify a timeframe for rises and she clarified her comments by saying that she was not recommending FOMC rate hikes,” said Kim Mundy, currency strategist at the Commonwealth Bank of Australia. “We still expect the FOMC will be very patient as economic data improves.”The latest numbers showed the U.S. trade deficit widening to a new record in March. Meanwhile, a senior White House economic aide demurred on the question of whether President Joe Biden will nominate Fed Chair Jerome Powell for a second four-year term, saying the decision on selecting the next central bank chief will come after a thorough process.Here are some key events to watch this week:U.S. ADP employment change is due WednesdayChicago Fed President Charles Evans gives a virtual speech at an event hosted by Bard College on Wednesday. Cleveland Fed President Loretta Mester gives a virtual speech to the Boston Economic ClubBank of England rate decision ThursdayThe April U.S. employment report is released on FridayThese are some of the main moves in markets:StocksS&P 500 futures rose less than 0.1% as of 8:11 a.m. in Hong Kong. The S&P 500 Index lost 0.7%Nasdaq 100 contracts were flat after the index fell 1.9%Australia’s S&P/ASX 200 slipped 0.1%Hang Seng Index futures declined 1.1% earlierCurrenciesThe Japanese yen traded at 109.34 per dollarThe offshore yuan was at 6.4840 per dollarThe Bloomberg Dollar Spot Index was steadyThe euro traded at $1.2015BondsThe yield on 10-year Treasuries was steady at 1.59%CommoditiesWest Texas Intermediate crude rose 0.8% to $66.23 a barrelGold was at $1,777.70 an ounceFor 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. Business Reuters 210504 18h16m Starlink satellite internet service gets 500,000 preorders, Musk says "Only limitation is high density of users in urban areas," Musk tweeted, responding to a post from a CNBC reporter that said the $99 deposits SpaceX took for the service were fully refundable and did not guarantee service. "More of a challenge when we get into the several million user range," Musk said. SpaceX has not set a date for Starlink's service launch, but commercial service would not likely be offered in 2020 as it had previously planned. Business Bloomberg 210504 18h02m Equinox Discusses Going Public Via Social Capital SPAC (Bloomberg) -- Equinox Holdings, the luxury gym operator popular among financiers and celebrities, has held talks to go public by merging with a blank-check company backed by investor Chamath Palihapitiya, according to people with knowledge of the matter.Negotiations between Social Capital Hedosophia Holdings Corp. VI and Equinox, which also operates SoulCycle and Blink Fitness, aren’t finalized and it’s possible that discussions may not result in a deal, said one of the people, asking not to be identified because the information is private. A transaction could value the combined entity at more than $7.5 billion, one of the people said. That would include a meaningful injection from a so-called private investment in public equity, or PIPE, deal.A representative for Equinox declined to comment on the talks and didn’t immediately respond to requests for comment regarding the specific Social Capital vehicle. A representative for Social Capital Hedosophia declined to comment.Equinox, which was forced to shutter many locations last year due to the pandemic, reported a loss of around $350 million on about $650 million in revenue last year and had drawn interest from SPACs valuing it at $7 billion or more, Bloomberg News reported last month. Founded in 1991, it expanded into hospitality, opening its first hotel in 2019 in Manhattan’s Hudson Yards neighborhood.Led by executive Chairman Harvey Spevak, Equinox struck a funding deal with private equity firm Silver Lake last year to build out its Equinox+ digital platform. L Catterton, the consumer-focused private equity firm, also owns a minority stake.Palihapitiya, in partnership with Ian Osborne of Hedosophia, has raised six special purpose acquisition companies, according to data compiled by Bloomberg. Social Capital Hedosophia SPACs have merged with companies to form Virgin Galactic Holdings Inc., Opendoor Technologies Inc. and Clover Health Investments Corp.. Another Palihapitiya-Osborne vehicle has agreed to merge with Social Finance Inc., or SoFi.Social Capital Hedosophia Holdings Corp. VI raised $1.15 billion in an October initial public offering. Its shares closed on Tuesday at $10.43.(Updates potential valuation in second 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. Business Reuters 210504 17h58m Facebook's Workplace tool reaches 7 million paid subscribers The COVID-19 pandemic has changed work for millions globally who have switched from being in the office to working from home, fuelling demand for enterprise connectivity platforms, such as Workplace, Slack and Microsoft Teams. Workplace had 5 million paid users in May 2020. Microsoft Teams has 145 million daily users, versus 115 million in October, Microsoft Corp said last week. Politics Reuters 210504 17h34m UPDATE 1-Two senior Senate Democrats propose $73 billion to shift U.S. to EV transit buses Two senior U.S. Senate Democrats on Tuesday proposed spending $73 billion to electrify the nation's 70,000 transit buses as part of a push to move the United States toward zero-emission transportation. Senate Majority Leader Chuck Schumer and Senate Banking Chairman Sherrod Brown noted that only 2% of U.S. buses were zero-emission vehicles. Howell date : 210504 17h54m35s Politics Reuters 210504 17h33m UPDATE 1-Two senior Senate Democrats propose $73 billion to shift U.S. to EV transit buses Two senior U.S. Senate Democrats on Tuesday proposed spending $73 billion to electrify the nation's 70,000 transit buses as part of a push to move the United States toward zero-emission transportation. Senate Majority Leader Chuck Schumer and Senate Banking Chairman Sherrod Brown noted that only 2% of U.S. buses were zero-emission vehicles. Business Reuters 210504 17h21m Jessica Alba-backed Honest Company IPO raises $412.8 million (Reuters) -Honest Company Inc, the consumer goods company founded by actress Jessica Alba, priced its initial public offering (IPO) on Tuesday slightly above the midpoint of its indicated range, raising $412.8 million, a person familiar with the matter said. Honest sold 25.8 million shares at $16 each, the source said, requesting anonymity ahead of an official announcement. The company had previously indicated shares could be sold in the IPO at $14-$17 apiece. Business Bloomberg 210504 17h05m Digital Identity Startup ForgeRock Taps Banks for IPO (Bloomberg) -- ForgeRock Inc., a maker of identity-verification software, is working with banks on an initial public offering this year, according to people familiar with the matter.The San Francisco-based company is working with Morgan Stanley on an IPO, which could come as early as the third quarter, the people said, asking not to be identified because the matter is private.ForgeRock could seek a valuation of $3 billion to $4 billion, or possibly higher, one of the people said.ForgeRock’s plans aren’t final and the timing and details of its potential listing could change.Representatives for ForgeRock and Morgan Stanley declined to comment.The IPO market has been hospitable to enterprise software firms, which make most of their money selling their products to other companies. Automation software maker UiPath Inc. has risen 32% from its IPO price last month.ForgeRock competes with Okta Inc., a public company that also makes security software to support workers who need to access corporate systems. Okta’s shares have climbed 1,336% since an IPO in 2017 and it’s now valued at about $37 billion.In April of 2020, ForgeRock said it raised $94 million in a funding round that included investors such as Riverwood Capital, Accel, Meritech Capital Partners, Foundation Capital and KKR Growth, a unit of KKR & Co.ForgeRock generated more than $100 million in revenue, according to a statement at the time. It was valued at more than $767 million in that round and has raised about $273 million to date, according to data provider PitchBook.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. Business Reuters 210504 16h58m UPDATE 1-Krispy Kreme eyes new dough with confidential IPO filing Krispy Kreme said on Tuesday it had confidentially filed with U.S. regulators for an initial public offering, a move that would result in the doughnut chain's return to the stock market five years after it was taken private. The company first went public in 2000, but it had to file for Chapter 11 bankruptcy following financial restatements, investigations into its accounting practices and a plunge in sales at some of its franchisees. The doughnut chain's move would help it tap into a historic boom in U.S. capital markets, with companies raising $167 billion in 2020, according to Dealogic data, a record that investment bankers expect will be surpassed this year. Business Business Business Howell date : 210504 17h23m58s Business Reuters 210504 16h58m UPDATE 1-Krispy Kreme eyes new dough with confidential IPO filing Krispy Kreme said on Tuesday it had confidentially filed with U.S. regulators for an initial public offering, a move that would result in the doughnut chain's return to the stock market five years after it was taken private. The company first went public in 2000, but it had to file for Chapter 11 bankruptcy following financial restatements, investigations into its accounting practices and a plunge in sales at some of its franchisees. The doughnut chain's move would help it tap into a historic boom in U.S. capital markets, with companies raising $167 billion in 2020, according to Dealogic data, a record that investment bankers expect will be surpassed this year. Business Bloomberg 210504 16h52m Equinox Discusses Going Public Via Social Capital SPAC (Bloomberg) -- Equinox Holdings, the luxury gym operator popular among financiers and celebrities, has held talks to go public by merging with a blank-check company backed by investor Chamath Palihapitiya, according to people with knowledge of the matter.Negotiations between Social Capital Hedosophia Holdings Corp. VI and Equinox, which also operates SoulCycle and Blink Fitness, aren’t finalized and it’s possible that discussions may not result in a deal, said one of the people, asking not to be identified because the information is private. A transaction would value the combined entity at more than $5.5 billion, one of the people said.A representative for Equinox declined to comment on the talks and didn’t immediately respond to requests for comment regarding the specific Social Capital vehicle. A representative for Social Capital Hedosophia declined to comment.Equinox, which was forced to shutter many locations last year due to the pandemic, reported a loss of around $350 million on about $650 million in revenue last year and had drawn interest from SPACs valuing it at $7 billion or more, Bloomberg News reported last month. Founded in 1991, it expanded into hospitality, opening its first hotel in 2019 in Manhattan’s Hudson Yards neighborhood.Led by executive Chairman Harvey Spevak, Equinox struck a funding deal with private equity firm Silver Lake last year to build out its Equinox+ digital platform. L Catterton, the consumer-focused private equity firm, also owns a minority stake.Palihapitiya, in partnership with Ian Osborne of Hedosophia, has raised six special purpose acquisition companies, according to data compiled by Bloomberg. Social Capital Hedosophia SPACs have merged with companies to form Virgin Galactic Holdings Inc., Opendoor Technologies Inc. and Clover Health Investments Corp.. Another Palihapitiya-Osborne vehicle has agreed to merge with Social Finance Inc., or SoFi.Social Capital Hedosophia Holdings Corp. VI raised $1.15 billion in an October initial public offering. Its shares closed on Tuesday at $10.43.(Updates with potential valuation in second 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. Business Bloomberg 210504 16h43m Citi Executive Told Peers Nuveen Demand Was ‘Outrageous’ (Bloomberg) -- A former Citigroup Inc. executive called Nuveen LLC’s alleged demand that the bank stop doing business with the bond giant’s smaller rival Preston Hollow Capital “outrageous” and “anticompetitive,” according to a newcourt filing citing tapes of phone calls in a long-running legal battle.“The idea that you can say don’t do business with X, I find to be incredibly illegal ... I’m not a lawyer, but that just sounds wrong to me,” Peter Bartlett, Citigroup’s former co-head of capital markets for municipal securities, said in a call that included Jamie Doffermyre, the bank’s head of municipal sales, and John Heppolette, head of municipal markets, according to the May 3 filing by Preston Hollow.Transcripts of calls between top executives in Citigroup’s municipal bond department show that Nuveen’s head of municipal investment, John Miller, demanded Citi stop doing business with Preston Hollow on multiple occasions and that Citigroup employees recognized the antitrust implications of the demands, according to the filing. Nuveen oversees more than $140 billion of municipal bonds and generates millions of dollars in revenue for Wall Street trading desks.Delaware Chancery Court Judge Sam Glasscock III concluded last year that Nuveen had wrongfully interfered with Preston Hollow’s business. Preston Hollow has asked Glasscock to penalize Nuveen for allegedly offering false testimony about the demands and to sanction Citigroup for failing to hand over evidence. It said the tapes show that John Leahy, director of Citigroup’s institutional municipal bond sales, lied when he testified in a July 2019 trial that Miller hadn’t demanded the bank cut off business with Preston Hollow.Read More: Nuveen’s Miller Says Trash Talk Was Bluster, Not a BlackballThe Dallas-based firm is also suing Nuveen in Delaware Superior Court for defamation over what it says was its intimidation campaign.Citigroup has denied wrongdoing and called Preston Hollow’s most recent allegations, like its prior ones, meritless and irresponsible.“At the appropriate time, and in the appropriate forum, Citi will set the record straight, and looks forward to doing so,” spokeswoman Danielle Romero-Apsilos said.Nuveen has said Preston Hollow “continues to make false and misleading statements seeking to assign blame to Nuveen and others.” Spokeswoman Jessica Greaney said Nuveen had no further comment.Bartlett left Citi in 2019 after a 40-year career.The current case is Preston Hollow Capital LLC v. Nuveen LLC, N19C-10-107-MMJ, CCLD, Delaware Superior Court (Wilmington).Read More: Citigroup, Nuveen Accused of Mishandling Evidence in Muni Brawl(Adds Nuveen response near bottom.)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. Business Bloomberg 210504 16h41m ClassPass and Vista-Backed Mindbody Hold Merger Talks (Bloomberg) -- ClassPass and Mindbody Inc., providers of technology to fitness companies across the globe, have held merger talks, according to people with knowledge of the matter.Details of the discussions couldn’t immediately be learned and no deal has been reached, one of the people said. The companies have discussed options for going public once they are combined, people with knowledge of the matter said.A spokesman for Vista Equity Partners, which owns Mindbody, declined to comment. Representatives for Mindbody and ClassPass didn’t immediately respond to requests for comment.New York-based ClassPass is a subscription-based business that gives users the ability to book workouts at fitness studios and other locales, as well as services such as massages and manicures. The company in January 2020 said its valuation eclipsed $1 billion after raising $285 million from investors including L Catterton, Apax Digital and Temasek. Earlier investors include General Catalyst and Josh Kushner’s Thrive Capital.San Luis Obispo, California-based Mindbody, which makes software used by gyms, fitness studios, salons and spas, was the target of a $1.9 billion leveraged buyout by Vista that closed in February 2019. The company went public in 2015.The onset of the pandemic in 2020 hurt fitness companies that both ClassPass and Mindbody count as customers, with many forced to shutter and some pushed into bankruptcy. ClassPass pivoted to provide digital classes, and in February added vaccine centers to its platform.ClassPass co-founder Payal Kadakia and Mindbody co-founder Rick Stollmeyer are both executive chairmen and former chief executive officers of their companies. Fritz Lanman is the current ClassPass CEO, and Josh McCarter has the top job at Mindbody. Both firms offer apps that can be used directly by consumers.(Updates with options in second 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. Business Bloomberg 210504 16h36m Leveraged Loan Investors Lose Taste for Blue Ribbon Beer (Bloomberg) -- Pabst Blue Ribbon beer isn’t going down well in the leveraged loan market.Blue Ribbon LLC, the maker of the iconic 177-year-old lager, hiked pricing and strengthened investor protections on its $368 million 7-year loan offering Tuesday, an indication that investors weren’t enticed by the original terms.Pabst Blue Ribbon has long had a reputation as a blue-collar beer better known for its low price than its taste. But the brand experienced a revival this millennium, catching on with the hipster set as a more-authentic cheap-beer option than brands like Bud Light. The renaissance didn’t last, however, as craft beers, hard seltzers and other drinks crowded in the marketplace. It also doesn’t help that the pandemic has forced temporary closures of bars, restaurants and sports venues.Moody’s Investors Service upgraded Blue Ribbon to B2 from Caa1 after the loan sale was announced in April, writing that Blue Ribbon will have better liquidity following the refinancing. But falling sales from its most important brand have been hurting the company.“The rating is constrained by the company’s small scale compared with much larger brewing peers, and its heavy reliance on its largest brand, Pabst Blue Ribbon, which accounts for nearly half of sales and has seen consistent revenue and volume declines,” Moody’s analyst Linda Montag wrote.Blue Ribbon sold the debt at a margin of 6 percentage points over the London interbank offered rate, an increase from 5 percentage points previously, according to a person with knowledge of the matter. It was originally due to price on April 29.Companies have rarely had trouble tapping the leveraged loan market this year, which has seen robust demand from investors who want to bet on a reopening economy and use the floating-rate debt to protect against rising Treasury yields.JPMorgan Chase & Co. is leading the sale of the debt, which will refinance Blue Ribbon’s existing term loan that matures this year. The pricing is significantly wide of the 4 percentage point margin Blue Ribbon’s 2021 term loan pays. The new terms also include call protections for investors that are rarely seen with loans.JPMorgan declined to comment on the sale and Blue Ribbon didn’t respond to a request for comment.(Updates with final pricing 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. Business Bloomberg 210504 16h25m Asia Stocks Set for Volatile Open After Tech Slide: Markets Wrap (Bloomberg) -- U.S. equity futures wavered and Asian stocks were set for a volatile open Wednesday after a selloff in technology shares, amid comments from Treasury Secretary Janet Yellen on interest rates that rattled markets. The dollar rose.Nasdaq 100 contracts retreated after weakness in megacaps such as Apple Inc., Tesla Inc. and Amazon.com Inc. dragged the index lower. The S&P 500 pared losses with gains in the commodity, financial and industrial sectors. Australian and Hong Kong futures declined. Holidays in major markets including Japan, China and South Korea will limit trade in Asian hours.Yellen said rates will likely rise as government spending ramps up and the economy responds with faster growth, comments that economists regarded as self evident. In a subsequent interview, the former Federal Reserve Chair said she wasn’t predicting or recommending rate hikes.Commodities rallied to the highest in almost a decade as a rebound in the world’s largest economies stokes demand for metals, food and energy. Treasuries were little changed.The debate on whether government spending could lead to excessive inflation comes as stock valuations hover near the highest levels in two decades. Investors have been reluctant to push rallies much further despite some blowout corporate earnings. While the Fed has assured markets that interest rates will remain at current lows throughout the recovery, strengthening economic data have raised concerns that policy makers may move to tighten sooner than anticipated.Read: Nasdaq 100’s Worst Day Since March Sparked by Inflation Fears“Yellen’s comments did not specify a timeframe for rises and she clarified her comments by saying that she was not recommending FOMC rate hikes,” said Kim Mundy, currency strategist at the Commonwealth Bank of Australia. “We still expect the FOMC will be very patient as economic data improves.”The latest numbers showed the U.S. trade deficit widening to a new record in March. Meanwhile, a senior White House economic aide demurred on the question of whether President Joe Biden will nominate Fed Chair Jerome Powell for a second four-year term, saying the decision on selecting the next central bank chief will come after a thorough process.Here are some key events to watch this week:U.S. ADP employment change is due WednesdayChicago Fed President Charles Evans gives a virtual speech at an event hosted by Bard College on Wednesday. Cleveland Fed President Loretta Mester gives a virtual speech to the Boston Economic ClubBank of England rate decision ThursdayThe April U.S. employment report is released on FridayThese are some of the main moves in markets:StocksS&P 500 futures fell less than 0.1% as of 6:11 a.m. in Hong Kong. The S&P 500 lost 0.7%Nasdaq 100 contracts dipped 0.2% after the index fell 1.9%Australia’s S&P/ASX 200 Index futures dropped 0.4%Hang Seng Index futures declined 1.1% earlierCurrenciesThe Japanese yen traded at 109.30 per dollarThe offshore yuan was at 6.4840 per dollarThe Bloomberg Dollar Spot Index rose 0.3%The euro traded at $1.2013BondsThe yield on 10-year Treasuries was steady at 1.59%CommoditiesWest Texas Intermediate crude rose 0.8% to $66.23 a barrelGold was at $1,778.07 an ounceFor 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. Howell date : 210504 16h53m20s Business Bloomberg 210504 16h42m ClassPass and Vista-Backed Mindbody Hold Merger Talks (Bloomberg) -- ClassPass and Mindbody Inc., providers of technology to fitness companies across the globe, have held merger talks, according to people with knowledge of the matter.Details of the discussions couldn’t immediately be learned and no deal has been reached, one of the people said. The companies have discussed options for going public once they are combined, people with knowledge of the matter said.A spokesman for Vista Equity Partners, which owns Mindbody, declined to comment. Representatives for Mindbody and ClassPass didn’t immediately respond to requests for comment.New York-based ClassPass is a subscription-based business that gives users the ability to book workouts at fitness studios and other locales, as well as services such as massages and manicures. The company in January 2020 said its valuation eclipsed $1 billion after raising $285 million from investors including L Catterton, Apax Digital and Temasek. Earlier investors include General Catalyst and Josh Kushner’s Thrive Capital.San Luis Obispo, California-based Mindbody, which makes software used by gyms, fitness studios, salons and spas, was the target of a $1.9 billion leveraged buyout by Vista that closed in February 2019. The company went public in 2015.The onset of the pandemic in 2020 hurt fitness companies that both ClassPass and Mindbody count as customers, with many forced to shutter and some pushed into bankruptcy. ClassPass pivoted to provide digital classes, and in February added vaccine centers to its platform.ClassPass co-founder Payal Kadakia and Mindbody co-founder Rick Stollmeyer are both executive chairmen and former chief executive officers of their companies. Fritz Lanman is the current ClassPass CEO, and Josh McCarter has the top job at Mindbody. Both firms offer apps that can be used directly by consumers.(Updates with options in second 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. Business Bloomberg 210504 16h37m Leveraged Loan Investors Lose Taste for Blue Ribbon Beer (Bloomberg) -- Pabst Blue Ribbon beer isn’t going down well in the leveraged loan market.Blue Ribbon LLC, the maker of the iconic 177-year-old lager, hiked pricing and strengthened investor protections on its $368 million 7-year loan offering Tuesday, an indication that investors weren’t enticed by the original terms.Pabst Blue Ribbon has long had a reputation as a blue-collar beer better known for its low price than its taste. But the brand experienced a revival this millennium, catching on with the hipster set as a more-authentic cheap-beer option than brands like Bud Light. The renaissance didn’t last, however, as craft beers, hard seltzers and other drinks crowded in the marketplace. It also doesn’t help that the pandemic has forced temporary closures of bars, restaurants and sports venues.Moody’s Investors Service upgraded Blue Ribbon to B2 from Caa1 after the loan sale was announced in April, writing that Blue Ribbon will have better liquidity following the refinancing. But falling sales from its most important brand have been hurting the company.“The rating is constrained by the company’s small scale compared with much larger brewing peers, and its heavy reliance on its largest brand, Pabst Blue Ribbon, which accounts for nearly half of sales and has seen consistent revenue and volume declines,” Moody’s analyst Linda Montag wrote.Blue Ribbon sold the debt at a margin of 6 percentage points over the London interbank offered rate, an increase from 5 percentage points previously, according to a person with knowledge of the matter. It was originally due to price on April 29.Companies have rarely had trouble tapping the leveraged loan market this year, which has seen robust demand from investors who want to bet on a reopening economy and use the floating-rate debt to protect against rising Treasury yields.JPMorgan Chase & Co. is leading the sale of the debt, which will refinance Blue Ribbon’s existing term loan that matures this year. The pricing is significantly wide of the 4 percentage point margin Blue Ribbon’s 2021 term loan pays. The new terms also include call protections for investors that are rarely seen with loans.JPMorgan declined to comment on the sale and Blue Ribbon didn’t respond to a request for comment.(Updates with final pricing 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. Business Bloomberg 210504 16h36m Equinox Discusses Going Public Via Social Capital SPAC (Bloomberg) -- Equinox Holdings, the luxury gym operator popular among financiers and celebrities, has held talks to go public by merging with a blank-check company backed by investor Chamath Palihapitiya, according to people with knowledge of the matter.Negotiations between Social Capital Hedosophia Holdings Corp. VI and Equinox, which also operates SoulCycle and Blink Fitness, aren’t finalized and it’s possible that discussions may not result in a deal, said one of the people, asking not to be identified because the information is private.A representative for Equinox declined to comment on the talks and didn’t immediately respond to requests for comment regarding the specific Social Capital vehicle. A representative for Social Capital Hedosophia declined to comment.Equinox, which was forced to shutter many locations last year due to the pandemic, reported a loss of around $350 million on about $650 million in revenue last year and had drawn interest from SPACs valuing it at $7 billion or more, Bloomberg News reported last month. Founded in 1991, it expanded into hospitality, opening its first hotel in 2019 in Manhattan’s Hudson Yards neighborhood.Led by executive Chairman Harvey Spevak, Equinox struck a funding deal with private equity firm Silver Lake last year to build out its Equinox+ digital platform. L Catterton, the consumer-focused private equity firm, also owns a minority stake.Palihapitiya, in partnership with Ian Osborne of Hedosophia, has raised six special purpose acquisition companies, according to data compiled by Bloomberg. Social Capital Hedosophia SPACs have merged with companies to form Virgin Galactic Holdings Inc., Opendoor Technologies Inc. and Clover Health Investments Corp.. Another Palihapitiya-Osborne vehicle has agreed to merge with Social Finance Inc., or SoFi.Social Capital Hedosophia Holdings Corp. VI raised $1.15 billion in an October initial public offering. Its shares closed on Tuesday at $10.43.(Updates with name of Social Capital vehicle in second paragraph, IPO details in last.)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. Business Bloomberg 210504 16h25m Asia Stocks Set for Volatile Open After Tech Slide: Markets Wrap (Bloomberg) -- U.S. equity futures wavered and Asian stocks were set for a volatile open Wednesday after a selloff in technology shares, amid comments from Treasury Secretary Janet Yellen on interest rates that rattled markets. The dollar rose.Nasdaq 100 contracts retreated after weakness in megacaps such as Apple Inc., Tesla Inc. and Amazon.com Inc. dragged the index lower. The S&P 500 pared losses with gains in the commodity, financial and industrial sectors. Australian and Hong Kong futures declined. Holidays in major markets including Japan, China and South Korea will limit trade in Asian hours.Yellen said rates will likely rise as government spending ramps up and the economy responds with faster growth, comments that economists regarded as self evident. In a subsequent interview, the former Federal Reserve Chair said she wasn’t predicting or recommending rate hikes.Commodities rallied to the highest in almost a decade as a rebound in the world’s largest economies stokes demand for metals, food and energy. Treasuries were little changed.The debate on whether government spending could lead to excessive inflation comes as stock valuations hover near the highest levels in two decades. Investors have been reluctant to push rallies much further despite some blowout corporate earnings. While the Fed has assured markets that interest rates will remain at current lows throughout the recovery, strengthening economic data have raised concerns that policy makers may move to tighten sooner than anticipated.Read: Nasdaq 100’s Worst Day Since March Sparked by Inflation Fears“Yellen’s comments did not specify a timeframe for rises and she clarified her comments by saying that she was not recommending FOMC rate hikes,” said Kim Mundy, currency strategist at the Commonwealth Bank of Australia. “We still expect the FOMC will be very patient as economic data improves.”The latest numbers showed the U.S. trade deficit widening to a new record in March. Meanwhile, a senior White House economic aide demurred on the question of whether President Joe Biden will nominate Fed Chair Jerome Powell for a second four-year term, saying the decision on selecting the next central bank chief will come after a thorough process.Here are some key events to watch this week:U.S. ADP employment change is due WednesdayChicago Fed President Charles Evans gives a virtual speech at an event hosted by Bard College on Wednesday. Cleveland Fed President Loretta Mester gives a virtual speech to the Boston Economic ClubBank of England rate decision ThursdayThe April U.S. employment report is released on FridayThese are some of the main moves in markets:StocksS&P 500 futures fell less than 0.1% as of 6:11 a.m. in Hong Kong. The S&P 500 lost 0.7%Nasdaq 100 contracts dipped 0.2% after the index fell 1.9%Australia’s S&P/ASX 200 Index futures dropped 0.4%Hang Seng Index futures declined 1.1% earlierCurrenciesThe Japanese yen traded at 109.30 per dollarThe offshore yuan was at 6.4840 per dollarThe Bloomberg Dollar Spot Index rose 0.3%The euro traded at $1.2013BondsThe yield on 10-year Treasuries was steady at 1.59%CommoditiesWest Texas Intermediate crude rose 0.8% to $66.23 a barrelGold was at $1,778.07 an ounceFor 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. Business Yahoo Finance 210504 16h15m Stock market news live updates: Stock futures open slightly lower after tech rout Stock futures traded slightly lower on Tuesday evening after a technology-led selloff earlier in the day, with growth stocks giving back more of their 2020 gains after a key policymaker suggested interest rates might need to rise to prevent an economic overheating. Business Bloomberg 210504 16h14m Lyft Loss Narrower Than Estimates as Riders Start to Return (Bloomberg) -- Lyft Inc., reporting quarterly results, said ride demand is rebounding as more people get vaccinated, and the company still expects to earn an adjusted profit by fall.The San Francisco-based ride-hailing company reported adjusted losses before tax, depreciation and other expenses of $73 million in the first quarter, narrower than the same period last year and beating analyst estimates, on average, of $143 million.Lyft shares gained about 5% in extended trading Tuesday after closing at $56.19 in New York. The stock has jumped 14% this year.Revenue declined 36% to $609 million from a year earlier -- before Lyft felt the brunt of the pandemic -- but was up 7% from the previous quarter, the company said Tuesday in a statement. Analysts projected $557 million, according to data compiled by Bloomberg.“We had an extremely strong quarter,” Lyft Co-founder and President John Zimmer told Bloomberg. “We’re going to emerge on the other side of this pandemic stronger, leaner and more profitable than we were going in.” Zimmer also reiterated that the company was on track to become profitable by the third quarter.On a call with investors Tuesday, Lyft executives said airport rides were up 65% in April compared with January numbers, influenced by the Centers for Disease Control and Prevention relaxing travel warnings for vaccinated people.The executives also said the company will have to spend more to recruit new drivers during the current three-month period, but that supply and demand should even out by the third quarter -- thanks to increased vaccination rates, decreased demand for delivery services and the expiration of unemployment benefits for drivers who stayed home during the pandemic.Reduced travel demand during the pandemic hit Lyft especially hard. Unlike its larger rival, Uber Technologies Inc., Lyft doesn’t operate a food delivery service or offer rides outside of North America. As the virus spread and ridership cratered last year, Lyft began laying off employees and cutting costs, stripping out $360 million of annualized expenses in 2020.Lyft said last month it would cut another $100 million of annual operating expenses with the sale of its self-driving division to a subsidiary of Toyota Motor Corp. The sale of the unit allowed the company to push up the time line for turning a profit to the third quarter, instead of the end of the year.The company said Tuesday it had 13.5 million active riders, compared with 12.7 million expected by Wall Street. Revenue per active rider was to $45.13, compared with $43.88 expected by analysts.Despite the pandemic receding, some worries remain for the company. The Biden administration is considering David Weil, the former administrator of the Wage and Hour Division of the U.S. Department of Labor under the Obama administration, for the same job in the new administration, according to reports late last month. Weil has a history of criticizing gig economy companies like Uber and Lyft for not classifying their workers as employees, and his appointment could mean regulatory hurdles for the companies.“It really ups the ante in terms of risks to their model,” said Daniel Morgan, senior portfolio manager at Synovus Trust Co., which owns shares of Lyft and Uber. “It’s really a dark cloud looming over both these companies.”(Adds Lyft executive comments starting in the 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. Howell date : 210504 16h22m44s Business Yahoo Finance 210504 16h14m Stock market news live updates: Stock futures open slightly lower after tech rout Stock futures traded slightly lower on Tuesday evening after a technology-led selloff earlier in the day, with growth stocks giving back more of their 2020 gains after a key policymaker suggested interest rates might need to rise to prevent an economic overheating. Business Bloomberg 210504 16h14m Lyft Loss Narrower Than Estimates as Riders Start to Return (Bloomberg) -- Lyft Inc., reporting quarterly results, said ride demand is rebounding as more people get vaccinated, and the company still expects to earn an adjusted profit by fall.The San Francisco-based ride-hailing company reported adjusted losses before tax, depreciation and other expenses of $73 million in the first quarter, narrower than the same period last year and beating analyst estimates, on average, of $143 million.Lyft shares gained about 5% in extended trading Tuesday after closing at $56.19 in New York. The stock has jumped 14% this year.Revenue declined 36% to $609 million from a year earlier -- before Lyft felt the brunt of the pandemic -- but was up 7% from the previous quarter, the company said Tuesday in a statement. Analysts projected $557 million, according to data compiled by Bloomberg.“We had an extremely strong quarter,” Lyft Co-founder and President John Zimmer told Bloomberg. “We’re going to emerge on the other side of this pandemic stronger, leaner and more profitable than we were going in.” Zimmer also reiterated that the company was on track to become profitable by the third quarter.On a call with investors Tuesday, Lyft executives said airport rides were up 65% in April compared with January numbers, influenced by the Centers for Disease Control and Prevention relaxing travel warnings for vaccinated people.The executives also said the company will have to spend more to recruit new drivers during the current three-month period, but that supply and demand should even out by the third quarter -- thanks to increased vaccination rates, decreased demand for delivery services and the expiration of unemployment benefits for drivers who stayed home during the pandemic.Reduced travel demand during the pandemic hit Lyft especially hard. Unlike its larger rival, Uber Technologies Inc., Lyft doesn’t operate a food delivery service or offer rides outside of North America. As the virus spread and ridership cratered last year, Lyft began laying off employees and cutting costs, stripping out $360 million of annualized expenses in 2020.Lyft said last month it would cut another $100 million of annual operating expenses with the sale of its self-driving division to a subsidiary of Toyota Motor Corp. The sale of the unit allowed the company to push up the time line for turning a profit to the third quarter, instead of the end of the year.The company said Tuesday it had 13.5 million active riders, compared with 12.7 million expected by Wall Street. Revenue per active rider was to $45.13, compared with $43.88 expected by analysts.Despite the pandemic receding, some worries remain for the company. The Biden administration is considering David Weil, the former administrator of the Wage and Hour Division of the U.S. Department of Labor under the Obama administration, for the same job in the new administration, according to reports late last month. Weil has a history of criticizing gig economy companies like Uber and Lyft for not classifying their workers as employees, and his appointment could mean regulatory hurdles for the companies.“It really ups the ante in terms of risks to their model,” said Daniel Morgan, senior portfolio manager at Synovus Trust Co., which owns shares of Lyft and Uber. “It’s really a dark cloud looming over both these companies.”(Adds Lyft executive comments starting in the 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. Business Bloomberg 210504 16h13m JAB-Backed Krispy Kreme Files for U.S. Public Offering (Bloomberg) -- Krispy Kreme is poised to be a public company for the second time after confidentially filing for a public share offering in the U.S.The number of shares to be sold and the price range hasn’t been determined, the company said in a statement. The offering is expected to take place after a review by the Securities and Exchange Commission.JAB acquired Krispy Kreme for $1.35 billion in a 2016 deal. The company has expanded aggressively in restaurants and beverages and controls Pret a Manger and JDE Peet’s. The latter company, which owns the Peet’s coffee chain and brands such as Senseo, Tassimo, Stumptown and Intelligentsia, went public last year in Amsterdam.JAB is an investment vehicle for the Reimanns, heirs to a fortune from an industrial chemicals business and one of Germany’s wealthiest families. Earlier, the company named Joachim Creus as vice-chairman of the board to eventually succeed Chairman Peter Harf, part of a plan to position the firm for its next phase of growth.Krispy Kreme first went public in the U.S. in 2000 and its popularity sent shares soaring that year. But in 2004, the SEC started an inquiry into accounting irregularities and the stock bottomed out near $1 a share. Its stock rebounded somewhat over the next decade or so, but the chain struggled to compete with larger competitors.Restaurants and cafes were hit hard by the pandemic -- especially those in city centers that depend on commuters. U.S. coffee chains will take two years to fully recover from the sales plunge, market researcher Allegra Group said earlier this year. (Updates to show filing was made confidentially in first paragraph and adds background in last 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. Business Reuters 210504 16h10m Judge presses Epic CEO during second day of Apple antitrust trial A U.S. judge on Tuesday pressed the chief executive of "Fortnite" creator Epic Games on how the fundamental changes the game maker is asking her to force on Apple Inc's App Store would affect the livelihoods of millions of developers who make software for Apple devices. Judge Yvonne Gonzalez Rogers is presiding over a three-week trial that kicked off Monday in the United States District Court for the Northern District of California. Epic has alleged that Apple has abused the power it holds over the software developers who want to reach its 1 billion iPhone users by charging commissions of up to 30% on in-app purchases and conducting App Store reviews that Epic alleges hold back companies Apple views as competitors. Business Bloomberg 210504 16h09m Alba’s Honest Co. Prices IPO Within Range at $16 a Share (Bloomberg) -- The Honest Co., the personal care brand co-founded by actress Jessica Alba, priced an initial public offering within a marketed range at $16 a share, according to people familiar with the matter who asked not to be identified because the information wasn’t public yet.The company and its shareholders had marketed about 25.8 million shares for $14 to $17 each. At $16 a share, the listing would raise $413 million and give the company a market value of about $1.45 billion.A representative for Honest declined to comment.Founded in 2011, Honest has grown into a national brand and has partnerships with retail giants including Target Corp. and Amazon.com Inc. The Los Angeles-based company specializes in baby products such as diapers and wipes, which accounted for 63% of last year’s sales, as well as household cleaning supplies and personal care items.The share sale gives Alba a stake valued at about $90 million, according to the company’s filings with the U.S. Securities and Exchange Commission.Investors selling some of their shares in the IPO include private equity firm L Catterton, Institutional Venture Partners, Lightspeed Venture Partners and General Catalyst, the filings show.Alba, now the company’s chief creative officer, owns 5.65 million shares. She didn’t plan to sell her shares in the offering, according to the filings.The Los Angeles-based company’s losses shrank as its revenue climbed last year, according to the filings. It had a net loss of $14.5 million on revenue of $301 million in 2020, compared with a loss of $31 million on revenue of $236 million the previous year.The offering is being led by Morgan Stanley, JPMorgan Chase & Co. and Jefferies Financial Group Inc. The shares are expected to begin trading Wednesday on the Nasdaq Global Select Market under the symbol HNST.(Updates with company response 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. Business Reuters 210504 16h06m Nestle launches pea-based milk alternative under 'Wunda' brand Nestle has launched a new brand, "Wunda," to market a milk alternative made from yellow peas, the packaged food giant said on Wednesday, as it sought to further boost its presence in the fast-growing market for plant-based foods. Milk and meat alternatives made from plants are popular with health- and environment-conscious consumers and are also gaining investor attention, as demonstrated by oat milk company Oatly's recent plans for an initial public offering. Nestle's new product will be launched in three versions - original, unsweetened and chocolate - in France, the Netherlands and Portugal in the coming weeks, with a rollout in other European markets planned, the Swiss company said. Business Bloomberg 210504 16h03m Citi Executive Told Peers Nuveen Demand Was ‘Outrageous’ (Bloomberg) -- A former Citigroup Inc. executive called Nuveen LLC’s alleged demand that the bank stop doing business with the bond giant’s smaller rival Preston Hollow Capital “outrageous” and “anticompetitive,” according to a newcourt filing citing tapes of phone calls in a long-running legal battle.“The idea that you can say don’t do business with X, I find to be incredibly illegal ... I’m not a lawyer, but that just sounds wrong to me,” Peter Bartlett, Citigroup’s former co-head of capital markets for municipal securities, said in a call that included Jamie Doffermyre, the bank’s head of municipal sales, and John Heppolette, head of municipal markets, according to the May 3 filing by Preston Hollow.Transcripts of calls between top executives in Citigroup’s municipal bond department show that Nuveen’s head of municipal investment, John Miller, demanded Citi stop doing business with Preston Hollow on multiple occasions and that Citigroup employees recognized the antitrust implications of the demands, according to the filing. Nuveen oversees more than $140 billion of municipal bonds and generates millions of dollars in revenue for Wall Street trading desks.Delaware Chancery Court Judge Sam Glasscock III concluded last year that Nuveen had wrongfully interfered with Preston Hollow’s business. Preston Hollow has asked Glasscock to penalize Nuveen for allegedly offering false testimony about the demands and to sanction Citigroup for failing to hand over evidence. It said the tapes show that John Leahy, director of Citigroup’s institutional municipal bond sales, lied when he testified in a July 2019 trial that Miller hadn’t demanded the bank cut off business with Preston Hollow.Read More: Nuveen’s Miller Says Trash Talk Was Bluster, Not a BlackballThe Dallas-based firm is also suing Nuveen in Delaware Superior Court for defamation over what it says was its intimidation campaign.Citigroup has denied wrongdoing and called Preston Hollow’s most recent allegations, like its prior ones, meritless and irresponsible.“At the appropriate time, and in the appropriate forum, Citi will set the record straight, and looks forward to doing so,” spokeswoman Danielle Romero-Apsilos said.Nuveen has said Preston Hollow “continues to make false and misleading statements seeking to assign blame to Nuveen and others.” Spokeswoman Jessica Greaney didn’t immediately respond to an email seeking comment.Bartlett left Citi in 2019 after a 40-year career.The current case is Preston Hollow Capital LLC v. Nuveen LLC, N19C-10-107-MMJ, CCLD, Delaware Superior Court (Wilmington).Read More: Citigroup, Nuveen Accused of Mishandling Evidence in Muni Brawl(Adds Citigroup comment 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. Business Bloomberg 210504 15h50m Cascade Transfers $1.8 Billion of Equities to Melinda Gates (Bloomberg) -- Cascade Investment, a holding company Bill Gates created with the proceeds of Microsoft Corp. stock sales and dividends, transferred securities worth more than $1.8 billion to Melinda French Gates, a day after the pair announced their divorce after 27 years of marriage.Melinda Gates is now the beneficial owner of 14.1 million shares of Canadian National Railway Co. worth about $1.5 billion, according to a Securities and Exchange Commission filing dated May 3. The investment firm also transferred 2.94 million shares in AutoNation Inc., worth $309 million.Through Cascade, Gates has interests in real estate, energy and hospitality as well as stakes in dozens of public companies, including Deere & Co. and Republic Services Inc. The couple are also among the largest landowners in America.Gates is worth $145.4 billion, according to the Bloomberg Billionaires Index.(Updates with other Cascade holdings in third paragraph. An earlier version corrected the size of the transferred stock.)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. Howell date : 210504 15h52m07s Business Reuters 210504 15h36m UPDATE 1-Brazil's Bradesco profit beats estimates on lower provisions Banco Bradesco SA, Brazil's second-biggest private lender, on Tuesday posted a 73.6% rise in first-quarter profit, beating estimates, as provisions for bad loans and costs both fell. Recurring net income, which excludes one-off items, rose to 6.515 billion reais ($1.20 billion), beating a consensus estimate of 6.019 billion reais compiled by Refinitiv. Profit was boosted by a a 41.8% drop in loan-loss provisions. Business Reuters 210504 15h31m Brazilian broker XP to expand banking services as quarterly profit soars XP has attracted Brazilians seeking higher returns as benchmark interest rate in the country fell to a record low. Adjusted net income rose 104% to 846 million reais ($155.6 million) in the quarter ended March 31, also helped by a tight leash on costs, XP said. "We had the best quarter in our history, and we will reinvest 100% of the result in our growth," Chief Financial Officer Bruno Constantino said in a statement. Business Bloomberg 210504 15h30m NYC’s Recovery Depends on a Mayor Who Can Revive Jobs, Tourism (Bloomberg) -- New York City will be free from pandemic restrictions in two weeks. Now it must contend with an unemployment rate that’s nearly double the national average, a jobs shortfall of half a million people, and a tourism industry decimated by months-long shutdowns.While Mayor Bill de Blasio has implemented a number of plans to revive the city, he is stepping down next year because of term limits. The task of leading the city out of a pandemic-ravaged labor market-- and bring back lost jobs-- will largely fall to his successor, who will likely be decided at the June 22 Democratic primary.“This city is falling apart,” said Victor Rallo, co-owner of Esca, a seafood restaurant in Manhattan’s theater district that closed permanently in March after 20 years. “These guys have to grab a hold of this, otherwise the greatest city in the world is going to just implode.”More than a year into the pandemic, New York City’s jobs recovery lags behind the rest of the U.S. A big reason is that the city’s success is inextricably tied to the restaurants, hotels, museums and shows that helped draw a record 67 million tourists in 2019. That number plunged by two-thirds in 2020.Signs of recovery are percolating in the city -- ballparks have reopened, curfews are being lifted and capacity at indoor venues and restaurants is increasing. More than 40% of all New Yorkers have already gotten at least one Covid-19 vaccine, and de Blasio on Monday welcomed 80,000 city workers back to their offices. Goldman Sachs Group Inc. plans to have employees return to its Lower Manhattan headquarters next month.Read more here: Goldman Readies June Return to Office, Vanguard Goes Hybrid (1)Permanent business closures and still-vacant office buildings have kept the economy from bouncing back swiftly. As of April 28, only about 16% of office workers in the New York metro area were back at their desks, according to data from security company Kastle Systems. Many commuters remain at home.Many of the jobs that existed before the pandemic have vanished. As of March 2021, the city was 585,000 jobs short of pre-pandemic levels. The city’s labor market is still worse off than it was in the immediate aftermath of the Sept. 11, 2001 terrorist attacks, which saw a steep drop-off in tourist arrivals and took years to recover.Candidate PlansIt may get worse before it gets better. The eviction moratorium on commercial properties that was put in place last March will expire this summer, meaning businesses that have been staying afloat by skipping rent payments could struggle. So on Tuesday, New York Governor Andrew Cuomo extended the moratorium from May to Aug. 31.President Joe Biden’s stimulus bill, signed in March, included nearly $13 billion in direct aid for New York State, with billions for New York City. Mayoral candidate Scott Stringer, currently New York City’s comptroller, proposes using some of those federal funds to provide grants of as much as $100,000 to small businesses.“We know that the majority of jobs lost this year have come from small businesses like local restaurants and retail shops, so we need a recovery focused on helping small- and medium-sized businesses rehire and meet payroll,” Stringer said in an emailed statement.Other candidates, including former city sanitation commissioner Kathryn Garcia, Brooklyn Borough president Eric Adams and former city housing commissioner Shaun Donovan, support tax breaks for small businesses and landlords. They also want to create new jobs in industries like green infrastructure and affordable housing.Ray McGuire, the former Citigroup banker, pledged to bring back 500,000 jobs with small business stimulus and $2.5 billion of borrowing for infrastructure projects. He also plans to direct support to artists and launch a festival to get tourists to visit cultural institutions in every borough.Frontrunner Andrew Yang’s economic agenda includes local business vouchers to stimulate community spending and a low or no-interest loan program for small businesses. He also said his plan to provide cash relief -- known as universal basic income -- to 500,000 New Yorkers in poverty also has the potential to help.Broadway RevivalReturning to full employment in New York City, however, will rely on restoring tourism. The city plans to launch a $30 million marketing campaign in June to lure back visitors. It hopes to bring back Broadway, which has been dark since March 2020, by September.Read More: N.Y. Region to End Capacity Restrictions; All-Day Subway Returns“We need to find a way for Broadway to safely return,” said Tom Harris, acting president and chief operating officer of the Times Square Alliance. “Times Square is not going to fully recover until Broadway is back, and New York City won’t fully recover until Times Square recovers.”Read More: NYC Loses $1.2 Billion After Tourist Spending Drops by 73%The shutdown of performing arts venues last March caused widespread layoffs among performers and stagehands, but also ravaged the many hotels, restaurants and bars that generate revenue from concert and theater-goers.Rallo, the restaurant owner, said that 87% of business at Esca came from the entertainment industry. His landlord wanted to start collecting rent again on March 1, but Rallo and his partner said that even if theaters started operating at 50% soon, Esca still wouldn’t have been a viable business.“We were called ‘the darling of the theater district,’” Rallo said. “When Covid hit and there was no theater, it was impossible.”Unlike major venues like Madison Square Garden and Citi Field that can sell tickets at limited capacity and still operate, Broadway can’t afford to put on shows unless venues sell 100% of tickets, said Kate Shindle, a New York City actor and president of the Actors’ Equity Association. Even if the Broadway League meets its goal of a September reopening, that doesn’t mean all shows will be in full swing, she said.That means many Broadway venues will need government support to shore up outdated ventilation systems, invest in employee and audience safety and help cover payroll costs.“We have a bad habit of talking about the arts as a luxury item and forgetting about all the middle-class jobs that are made possible by a successful arts sector,” Shindle said. “If we want to bring back New York City’s economy, I cannot imagine doing it without investing in the recovery of the arts.”Mayoral candidates including Adams and Stringer say they plan to provide financial support to theaters by investing in subsidized tickets for essential workers and other local communities. Donovan aims to help arts and culture landlords through rent subsidies or tax forgiveness, and Adams has said he will extend the eviction and mortgage moratorium for cultural institutions and secure grants to help studios upgrade air filtration systems and pay rent.But Pete Donovan, an acoustic bassist who was working on the musical “Mrs. Doubtfire” when the pandemic shuttered Broadway last year, said a recovery will depend on whether audiences from home and abroad will show up.“It’s going to take years I think to get to how things used to look,” Donovan said. “Everybody’s gone. Broadway and the arts in general are dependent on tourism, and I don’t know how people feel about New York now.”(Updates with extension of eviction moratorium in 8th 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. Business Reuters 210504 15h25m Corteva raises 2021 sales forecast on strong demand for herbicides, insecticides The company, spun off in 2019 after a merger of Dow Chemical and Dupont, has laid off employees and retired some assets to cut costs as it faces increased competition in North America, a weaker Brazilian real and sharper focus from shareholders after a battle with activist investor Starboard Value LP. First-quarter net sales rose 6%, with strong demand for its new products including Arylex, Enlist and Rinskor herbicides and Isoclast and Pyraxal insecticides. Corteva said it now expects net sales for the full year to range between $14.6 billion and $14.8 billion, compared to between $14.4 billion and $14.6 billion forecast earlier. Business Reuters 210504 15h23m UPDATE 1-HollyFrontier to buy Puget Sound Refinery from Shell U.S. refiner HollyFrontier Corp said on Tuesday it would buy a 149,000 barrel per day (bpd) refinery in Washington from Shell as part of the European company's strategy to reduce its global refinery footprint. HollyFrontier will buy the Puget Sound refinery near Anacortes for $350 million in cash, plus hydrocarbon inventory to be valued at closing with an estimated current value of $150 million to $180 million, the companies said. The transaction is expected to close in the fourth quarter of 2021, subject to regulatory clearance, Shell said. Howell date : 210504 15h21m31s Business Bloomberg 210504 15h14m Yellen Clarifies Inflation Remark, Sees No Need for Fed to Hike (Bloomberg) -- Discover what’s driving the global economy and what it means for policy makers, businesses, investors and you with The New Economy Daily. Sign up hereTreasury Secretary Janet Yellen said Tuesday afternoon she wasn’t forecasting interest-rate increases to rein in any inflation spurred by President Joe Biden’s proposed spending, clarifying comments that ruffled financial markets a few hours earlier.“It’s not something I’m predicting or recommending,” Yellen, a former Federal Reserve chair, said during an online event hosted by the Wall Street Journal. “If anyone appreciates the independence of the Federal Reserve, I think that person is me.”Yellen said she didn’t anticipate a bout of persistently higher inflation, but that if one occurred the central bank has the tools to deal with it. The Biden administration has proposed additional long-term spending packages totaling about $4 trillion on top of the $1.9 trillion it pumped into the economy beginning in March to combat the impact of the Covid-19 pandemic.Earlier in the day, Yellen caused a set of hiccups in financial markets when she said that “it may be that interest rates will have to rise somewhat to make sure our economy doesn’t overheat.”“It could cause some very modest increases in interest rates,” Yellen said in an interview with the Atlantic recorded Monday that was broadcast on the web on Tuesday morning.That was a rare remark on the outlook for interest rates by a cabinet member, who in recent history -- aside from the very notable exception of former President Donald Trump and his administration -- tended not to veer anywhere close to the Fed’s jurisdiction.Stocks, which had already been down for the session, slid further after Yellen’s morning remarks, though later pared losses. The S&P 500 ended the day down 0.7%.Low RatesInvestors aren’t expecting the Fed to boost its policy rate for years to come, and Fed Chair Jerome Powell last week underscored it’s not time yet to contemplate paring back on asset purchases. Any hint that a less-easy Fed is on the immediate horizon would have major implications for markets.Higher rates would also be counterproductive for Biden’s plans -- Yellen has repeatedly highlighted how historically low borrowing costs today give the government greater scope to boost spending.The current administration has been careful to avoid a pattern of commenting directly on Fed policy in the way Trump did, with Biden even saying last month he hadn’t met with Powell, out of respect for the central bank’s independence.Read More: Biden, Touting Fed Independence, Yet to Speak With PowellYellen’s morning comments featured shortly later at the daily White House press briefing, with White House Press Secretary Jen Psaki saying that “Secretary Yellen certainly understands” the Fed’s independence.Psaki also said that Biden agrees with Yellen, and that “we also take inflationary risk incredibly seriously.”Tony Fratto, a former White House and Treasury official under President George W. Bush, said via Twitter that “Treasury secretaries shouldn’t talk about the Fed’s policy rate, and Fed governors shouldn’t talk about US dollar policy.”The comments come amid a debate on whether Biden’s raft of proposed and enacted government spending could spur a surge in price pressures. Administration and Fed officials both have consistently dismissed concerns over accelerating inflation. They’ve argued that price gains expected this year will be largely transitory, and that the central bank has tools to contain any persistent effects.Spending Bills“It should not come as a shock that the two very large spending bills being contemplated would push longer-term interest rates higher,” either through stronger economic growth or by changing expectations among investors for when the Fed will raise rates, said Michael Gapen, chief U.S. economist at Barclays Plc. “That’s consistent with what markets would say.”Gapen said he didn’t think Yellen’s morning comments represented a preference for how the Fed should be managing the impact of government spending.When Fed officials last issued projections, in March, they forecast no move in interest rates until at least 2024.Yellen insisted in the Atlantic event that the heavy spending Biden is calling for would provide a net benefit to the economy, even if interest rates do go up.“These are investments our economy needs to be competitive and to be productive, and I think our economy will grow faster because of them,” Yellen 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. Health Bloomberg 210504 15h13m Biden Sets New Target; Chicago Auto Show Back: Virus Update (Bloomberg) -- President Joe Biden set a new target of 70% of U.S. adults receiving at least one vaccine shot by July 4. Rural hospitals and clinics will get almost $1 billion to ramp up testing and vaccinations, the Health and Human Services secretary said.U.K. Prime Minister Boris Johnson said the country is on course to scrap lockdown rules, and Denmark will ease curbs this week. Singapore is cracking down in response to a flareup linked to the variant first identified in India, a setback for one of the most successful virus-containment regimes.India was criticized for a “lack of leadership” as its prime minister resists pressure to lock down. The country’s cricket regulators suspended the Premier League after players tested positive.Key DevelopmentsGlobal Tracker: Cases top 153.8 million; deaths exceed 3.22 millionVaccine Tracker: More than 1.19 billion doses have been givenThai Rate Likely on Hold, Virus Wave in Focus: Decision GuideIt’s not just India. New virus waves deluge developing countriesBank bosses want a return to office. Underlings aren’t so sureWhat are vaccine passports and how would they work?: QuickTakeSubscribe to a daily update on the virus from Bloomberg’s Prognosis team here. Click CVID on the terminal for global data on cases and deaths.LA, San Francisco Move to Lowest Tier (5:08 p.m. NY)Los Angeles and San Francisco entered California’s least-restrictive tier for economic reopenings, increasing capacity for a wide range of businesses and private gatherings.Restaurants, gyms and movie theaters can expand to 50% of their regular occupancy. Bars will be able to open at 25% capacity indoors. Stadiums and other outdoor events may expand to as much as 67% of capacity. The new health orders will go into effect Thursday.“This new tier matches the sunny optimism of the season,” Los Angeles County’s board of supervisors said in a statement Tuesday.Rural America to Get $1 Billion for Testing (4:45 p.m. NY)Rural clinics and hospitals in the U.S. will receive almost $1 billion from the Health and Human Services Department to improve Covid-19 testing and get more people vaccinated, the Biden administration announced Tuesday.“Rural health providers are vital to ensure equity in Covid-19 testing, vaccinations and in making sure rural residents have the information about vaccine safety, especially for populations who are at an increased risk for Covid-19 infection or severe illness due to systemic health and social inequities and geographic isolation,” HHS Secretary Xavier Becerra said in a statement.Biden Sees 70% Adults Getting Shots by July (4:35 p.m. NY)President Joe Biden set a target of 70% of U.S. adults receiving at least one vaccine dose by July 4 and said the government will “wind down” mass vaccination sites, as his administration seeks to stem a dropoff in inoculations.He said if the Food and Drug Administration authorizes Pfizer Inc.’s vaccine for use in children as young as 12, as anticipated, 20,000 pharmacies across the country are prepared to give them shots.As of now, 56% of U.S. adults, or 145 million, have received at least one dose and almost 41%, or about 105 million, are fully vaccinated, according to the Centers for Disease Control and Prevention.Illinois Offers Free Target Rounds for Vaccines (3:55 p.m. NY)Illinois will offer 100 free target rounds for trap, skeet or sporting clays to those who receive a Covid-19 vaccine at its newest mobile vaccination site, the downstate Worldwide Shooting and Recreation complex.Governor J.B. Pritzker announced Tuesday that the WSRC mobile site in Sparta, Illinois, about 280 miles (450 kilometers) south of Chicago, will be operated by the Illinois National Guard, with assistance from the Randolph County Health Department, from 9 a.m. to 5 p.m. this Friday and Saturday.“These vaccines are incredibly effective and protective for the person who gets them, but just as important, they make the whole community safer,” Pritzker said in an emailed statement.The move is the latest creative effort by a state to address vaccine hesitancy as the pace of inoculations slows nationwide. New Jersey is offering free beer.White House to Reallocate Vaccine Doses (1:20 p.m. NY)President Joe Biden’s administration told governors Tuesday that it would begin reallocating vaccines that go unclaimed by states -- essentially clawing back unwanted doses from places where the pace of shots is lagging in order to steer them elsewhere, three people familiar with the call said.The White House told governors about the switch during a weekly call with the state leaders. Biden is due to speak Tuesday afternoon at the White House about the Covid response.Chicago Auto Show to Return in July (11:10 a.m. NY)The Chicago Auto Show will be held at McCormick Place in July, marking the first large convention to be held in the city and the state of Illinois since the Covid-19 pandemic began more than a year ago, officials said Tuesday.The reopening of the convention center “is a critical step toward our state’s economic recovery,” Governor J.B. Pritzker said during a press conference at the site on Tuesday. The auto show, on the biggest in the U.S., will be held from July 15 to 19 with safety measures in place, such as limiting crowd size.CVS Boosts Forecast on Covid Shots (10:20 a.m. NY)CVS Health Corp. raised its full-year forecast as Covid-19 vaccines and testing helped boost first-quarter results and offset a weak cold and flu season.The health-care company gave 17 million Covid shots at long-term care facilities and at its pharmacies through April. CVS is now immunizing in about 8,300 locations in 49 states, Chief Executive Officer Karen Lynch said Tuesday on a call with analysts.Leading Nations Set to Back Vaccine Passports (8:28 a.m. NY)The world’s 20 major economies threw their weight behind efforts to introduce so-called vaccine passports to boost travel and tourism, stressing that a resumption is crucial for a global economic recovery, according to a draft statement seen by Bloomberg.Tourism ministers from the Group of 20 nations, who met on Tuesday, said the outlook for a sector devastated by lockdowns remains “highly uncertain,” according to the draft, which is subject to change.U.K. Has No Plan to Speed Lockdown Easing (7:56 a.m. NY)“We’ve got no plans to deviate form the earliest dates set out in the roadmap” for unlocking the economy, Prime Minister Boris Johnson’s spokesman told reporters.UAE Extends Suspension of India Flights (7:46 a.m. NY)The United Arab Emirates extended the suspension of flights from India. The UAE, home to Dubai-based Emirates and Abu Dhabi-based Etihad Airways, had halted the flights until May 14. A new end date hasn’t yet been announced.Singapore Tightens Rules (6:57 a.m. NY)Singapore is limiting social gatherings and tightening border curbs as it reacts aggressively to a flareup linked to the new variant first identified in India.From May 8 to May 30, group gatherings must be cut from a maximum of eight to five, while daily visitors per household will be similarly capped, the Ministry of Health said in a statement. At workplaces, no more than 50% of staff who are able to work from home can return to offices.Pfizer Boosts Vaccine Revenue Forecast (6:46 a.m. NY)Pfizer Inc. boosted its full-year forecast for sales of its vaccine produced with BioNTech SE to approximately $26 billion, from about $15 billion previously. The guidance includes 1.6 billion doses expected to be delivered this year under contracts that have been signed through mid-April, and it may be adjusted as additional contracts are executed, Pfizer said in its release.“We also are in ongoing discussions with multiple countries around the world about their needs, and we expect these discussions to lead to additional supply agreements,” CEO Albert Bourla said in prepared remarks.Moderna Tests Lower-Dose Vaccines (6:02 a.m. NY)Moderna Inc. is testing vaccines with lower doses to try to boost supply, and it may also need to expand work on boosters to cover for more variants, Chairman Noubar Afeyan said in an interview with Bloomberg Television. He said he expects the coronavirus may become endemic like seasonal flu, and that vaccinating children seems like a good approach given Covid’s after-effects.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. Business Bloomberg 210504 15h11m Biden Tax Rule Would Rip Billions From Big Fortunes at Death (Bloomberg) -- Jeff Bezos has an ex-wife, a girlfriend, four children and billions of reasons to watch whether Joe Biden’s tax overhaul wins congressional approval.The Amazon.com Inc. founder’s heirs may have to pay more than $36 billion if the president succeeds in closing a loophole that helps the rich transfer much of their fortunes tax-free at death.Under current rules, whoever inherits the Amazon shares Bezos bought in 1994 for $10,000, worth $180 billion today, will receive a so-called step-up in basis, wiping out any capital gains tax liability. Biden’s plan would close that loophole and apply the top capital gains tax immediately when assets transfer to wealthy heirs. If the rate increases -- it’s 20% for holdings like Bezos’s, and Biden has called for boosting it to 39.6% -- the eventual tax bill would too.For Bill and Melinda Gates, who announced on Monday that they would be divorcing, a change in the step-up rule might be less costly. The Gates fortune, valued at $145.8 billion, is older, and they’ve already sold or donated much of their stake in Microsoft Corp. But $26 billion of Microsoft shares remain, and it isn’t clear how the couple will manage their assets in a split.Congress estimates that stepping up the tax basis of inherited assets costs the government about $43 billion a year. Ending that practice and raising the rate would amount to the biggest curb on dynastic wealth in decades, altering an American economic landscape dominated by a few wealthy families. An Amazon spokesman didn’t respond to emailed questions about Bezos’s shares.Read More: How the ‘Step Up’ in Inheritance Taxes Would Work: QuickTakeThe proposals are far from becoming law, even though Democrats control both houses of Congress, as they threaten wealthy donors to both political parties who have lobbied against them. But proponents say getting rid of the step-up rule, known to estate planners as the Angel of Death loophole, is crucial to achieving Biden’s vision of tax fairness. Otherwise, economists project that the proposed increase in the top capital gains tax rate would further encourage holding assets until death, decreasing revenue for the Treasury.The step-up rule allows investors to pass on assets to heirs virtually tax-free, raising the taxable value of a property to its fair market value at the time it is inherited. A beneficiary who inherits a house worth $1 million purchased for $100,000 two decades earlier would have no capital gains. If she later sells for $1.5 million, she only pays tax on $500,000. The rule also applies to Amazon shares, which have risen more than 200,000% since a 1997 public offering, as well as other appreciated assets.The Joint Committee on Taxation, a nonpartisan arm of Congress, estimates that untaxed capital gains on inherited assets run into the hundreds of billions of dollars a year. About half of unrealized gains belong to the wealthiest 1%, according to an analysis of data in the Federal Reserve Board’s Survey of Consumer Finances. And unrealized and accrued capital gains account for about 40% of the wealth of the top 1%, the Fed data show.The step-up rule has been criticized as a government-subsidized engine for amassing dynastic fortunes and a cause for widening economic inequality. Even some prominent estate planners say the provision -- enacted a century ago to avoid double taxation at a time when the estate tax had few exemptions -- has outlived that original purpose.Billionaires’ lawyers have developed sophisticated strategies to avoid the estate tax, making the step-up allowance an unalloyed boon. “It’s an enormous loophole,” said Jonathan Blattmachr, a trusts and estates lawyer and senior adviser at Pioneer Wealth Partners, a financial advisory firm for high-net-worth clients and family offices.Republicans and some business organizations have criticized the Biden proposal. A study by Ernst & Young commissioned by the Family Business Estate Tax Coalition predicted that eliminating the step-up rule could cost tens of thousands of jobs a year and cut $10 billion from annual gross domestic product.Opponents of the plan say the burden would largely be avoided by the ultra-wealthy, who can afford sophisticated estate planning, and fall instead on small businesses and family farms, which might have to be sold to pay tax bills.“Repealing step-up could have a dramatic impact on small manufacturers across the country, potentially requiring families to liquidate businesses, leverage assets, or lay off employees to cover the tax hit,” said Chris Netram, vice president of tax and domestic economic policy at the National Association of Manufacturers, which supported President Donald Trump’s 2017 tax cuts.Biden’s plan addressed some of those concerns by sparing the first $1 million in inherited appreciated assets from capital gains taxes and by exempting family farms and small businesses in cases where heirs continue to operate them.The plan has been cheered by progressives, who have long called for an end to the preferential treatment given to capital gains. Frank Clemente, executive director of Americans for Tax Fairness, an advocacy group allied with labor unions, said the gap between taxes on labor and capital is fundamentally unfair and the administration’s plan simply seeks to “tax wealth like work.”“Our two-tier tax code, with one code for working-class Americans, and another full of special breaks for the people at the very top, has destroyed public confidence in our tax structure that must be fixed,” said New Jersey Democrat Bill Pascrell, chairman of the House Ways and Means Subcommittee on Oversight. “This loophole is one of the chief causes of a broken system.”A version of Biden’s plan was floated by President Barack Obama in 2015, but it died in a Republican-controlled Congress.Any substantial change to the step-up rule could upend financial planning for America’s richest families, including the techniques they use to avoid incurring capital gains for decades.“To the extent to which there is ability to work around the policy, that’s in large part a policy choice,” said Chye-Ching Huang, executive director of the Tax Law Center at New York University School of Law. “There are ways to draft and implement it so it doesn’t allow for large, inefficient tax shelters.”Currently, wealthy people who need cash can take out loans using stock as collateral, rather than selling shares, which would trigger a tax bill. The technique allows billionaires to fund their lifestyles, then pass their assets to their heirs without ever realizing capital gains.Larry Ellison, the founder of Oracle Corp. who purchased Hawaii’s sixth-largest island in 2012, had $17.5 billion of stock pledged to such loans as of September, figures in a company disclosure show. The strategy has also been used by Elon Musk, the world’s second-richest person, and Sumner Redstone, the former chairman of Viacom Inc. who died in August. If the step-up rule changes, capital gains taxes on the assets of these billionaires would be triggered by death.When Apple Inc. cofounder Steve Jobs died in 2011, his $10 billion fortune was relatively paltry compared with today’s tech billionaires. But a step-up in basis proved valuable nonetheless.Jobs’ biggest holding was in Walt Disney Co., which gave him shares in connection with its 2006 purchase of Pixar, the animation studio Jobs had bought from filmmaker George Lucas two decades earlier. By the time Jobs died, his Disney shares were worth $4.5 billion, and his shares of Apple, stemming from a 2003 stock grant, were worth about $2.1 billion.Between the two holdings, there were at least $5 billion of untaxed capital gains at the time of his death, meaning the step-up in basis could have saved his family more than $750 million in taxes, a review of corporate filings shows. Jobs’ fortune passed to his wife Laurene Powell Jobs, whose wealth has since swelled to $22 billion, making her the world’s 80th richest person, according to the Bloomberg Billionaires Index.A spokesperson for Laurene Powell Jobs, who would have inherited any Apple shares at a stepped-up price, didn’t respond to a request for comment.The nation’s wealthiest families have spent millions of dollars lobbying Congress in recent years to blunt attempts to increase taxes on inherited wealth, and those efforts have often paid off.Members of the Mars family, who built an empire on candy and pet care, helped lead the fight against the estate tax during George W. Bush’s presidency and have lobbied against efforts to increase taxes on inherited wealth since, according to congressional records.When Forrest Mars Jr. died in 2016, he left his heirs a fortune worth more than $25 billion. Today, six family members are among the world’s 500 richest people, according to the Bloomberg index, sharing a combined fortune of more than $130 billion. A spokesperson for the Mars family declined to comment.Administration officials say retaining the step-up rule would undermine the effort to raise more revenue from the wealthy through higher taxes on investment income.An estimate released by the Penn Wharton Budget Model, a nonpartisan fiscal policy research group at the University of Pennsylvania’s Wharton School, last week found that raising the top capital gains rate to 39.6% would raise $113 billion in new revenue over the next decade -- but only if the step-up in basis is severely restricted. If the policy remains unchanged, raising the capital gains rate would motivate more wealthy people to avoid selling assets before their deaths, costing the Treasury $33 billion in lost revenue over 10 years, the study found.Another study published in January by the National Bureau of Economic Research says an increase in the top capital gains rate could generate more revenue than Congress estimates because asset owners have less flexibility on when to realize gains. Eliminating step-up in basis would further decrease flexibility, the study said.“You’re telling me that if I effectively doubled the rate and make death a realization event that you’re not going to get much money from it?” said Owen Zidar, a professor of economics and public policy at Princeton University and one of the study’s authors. “I find that hard to believe.”But even if Biden’s plan is adopted, tax lawyers and accountants will likely find ways to increase flexibility by using charitable donations and novel estate planning strategies.“The story of taxing rich people throughout history is that they will always find ways to sidestep taxes,” said John Ricco, author of the Wharton study. “This will certainly narrow the avoidance opportunities –- perhaps not as much as the proponents of the Biden proposal hope, but it will have some bite to it.”(Adds comment from Representative Bill Pascrell in 16th 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. Business Reuters 210504 15h10m US STOCKS-Nasdaq ends sharply lower in tech sell-off The Nasdaq ended sharply lower on Tuesday as investors dumped megacap growth stocks to seek shelter in more defensive parts of the market, amid concerns on rising interest rate and uncertainty over an upcoming jobs report. Highly valued technology-related companies including Microsoft Corp, Alphabet Inc, Apple Inc , Amazon.com Inc and Facebook Inc sold off across the board, with Apple falling the most by 3.54%. Politics Reuters 210504 15h06m Trump launches place to post ahead of Facebook board ruling on his ban Former President Donald Trump on Tuesday launched a space on his website where he can post messages that can be shared by others to Twitter and Facebook, sites where he remains banned. The launch comes a day before a decision from Facebook Inc's oversight board on whether to uphold Trump's indefinite suspension from the platform. Trump was barred due to concerns of further violent unrest following the deadly Jan. 6 storming of the U.S. Capitol by his supporters. Business Reuters 210504 15h01m Corteva raises 2021 sales forecast on strong demand for herbicides, insecticides Pesticide and seed maker Corteva Inc on Tuesday reported better-than-expected profit and revenue and raised its net sales forecast for the year, helped by strong demand for its herbicides and insecticides. The company, spun off in 2019 after a merger of Dow Chemical and Dupont, has laid off employees and retired some assets to cut costs as it faces increased competition in North America, a weaker Brazilian real and sharper focus from shareholders after a battle with activist investor Starboard Value LP. First-quarter net sales rose 6%, with strong demand for its new products including Arylex, Enlist and Rinskor herbicides and Isoclast and Pyraxal insecticides. Howell date : 210504 14h50m53s Business Yahoo Finance Video 210504 14h40m Lyft posts quarterly earnings that top street expectations Lyft posted quarterly earnings that topped expectations, posting an adjusted loss per share of 35 cents and net sales of $609M vs. the expected loss per share of 53 cents and estimated loss per share of $558.5M. Yahoo Finance's Emily McCormick joined Yahoo Finance Live to break down Lyft's quarterly earnings. Business Bloomberg 210504 14h45m Tech Selloff Sweeps Across Stocks; Dollar Climbs: Markets Wrap (Bloomberg) -- Volatility gripped financial markets as a rout in some of the largest tech companies dragged down stocks. The dollar rose.Megacaps such Apple Inc., Tesla Inc. and Amazon.com Inc. sent the Nasdaq 100 slumping, while the S&P 500 pared losses amid gains in commodity, financial and industrial shares. Treasury Secretary Janet Yellen rattled markets with a comment economists regarded as self evident -- that rates will likely rise as government spending ramps up and the economy responds with faster growth. Later in the day, Yellen said she wasn’t predicting or recommending rate hikes.The debate on whether government spending could boost inflation comes at a time when stock valuations are hovering near the highest levels in two decades. Hedge funds have been bailing from equities at a pace not seen since the financial crisis, while shares have struggled to gain traction despite blowout corporate earnings.“We’ve had this spectacular run-up, and I think we’ve seen momentum just run out of steam,” said Fiona Cincotta, senior financial markets analyst at City Index. “Despite earnings being encouraging, they haven’t managed to push those indices higher. Moving out of growth and into cyclicals is the place we’re going to have more movement.”Earlier Tuesday, a sharp drop in equity futures left traders scrambling for an explanation. Some of them speculated on military tensions between China and Taiwan, Singapore’s tougher coronavirus restrictions and Ferrari NV’s decision to postpone financial targets.Investors also monitored the latest economic readings, with the U.S. trade deficit widening to a new record in March. Meanwhile, a senior White House economic aide demurred on the question of whether President Joe Biden will nominate Fed Chair Jerome Powell for a second four-year term, saying the decision on selecting the next central bank chief will come after a thorough “process.”Here are some key events to watch this week:U.S. ADP employment change is due WednesdayChicago Fed President Charles Evans gives a virtual speech at an event hosted by Bard College on Wednesday. Cleveland Fed President Loretta Mester gives a virtual speech to the Boston Economic ClubBank of England rate decision ThursdayThe April U.S. employment report is released on FridayThese are some of the main moves in markets:StocksThe S&P 500 fell 0.7% as of 4 p.m. New York timeThe Nasdaq 100 fell 1.85%The Dow Jones Industrial Average was little changedThe MSCI World index fell 0.8%CurrenciesThe Bloomberg Dollar Spot Index rose 0.3%The euro fell 0.4% to $1.2017The British pound fell 0.2% to $1.3887The Japanese yen fell 0.2% to 109.29 per dollarBondsThe yield on 10-year Treasuries declined one basis point to 1.58%Germany’s 10-year yield declined three basis points to -0.24%Britain’s 10-year yield declined five basis points to 0.79%CommoditiesWest Texas Intermediate crude rose 2.3% to $66 a barrelGold futures fell 0.7% to $1,779 an ounceFor 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. Business Bloomberg 210504 14h33m Nasdaq 100’s Worst Day Since March Sparked by Inflation Fears (Bloomberg) -- Stock bulls have shrugged off inflation angst for months. That got a lot harder to do on Tuesday.Janet Yellen roiled markets when she said interest rates may have to rise moderately to keep the economy from overheating. Already showing signs of jitters over rising prices, investors headed for the exits on the Treasury Secretary’s comments, delivering the worst day since March for the Nasdaq 100.The mere suggestion that the Federal Reserve may have to unpin rates from near zero -- a comment Yellen softened after markets closed -- was enough to rattle bulls after the latest market runup sparked a flurry of bubble speculation. The S&P 500 has added more than 10% already this year and valuations have reached levels last seen two decades ago.“Given where valuations are, given where optimism is, given how fast and far we’ve come, it feels like the market is due for a little correction,” David Spika, president of GuideStone Capital Management, said by phone. “There’s a lot of good news out there but it really feels like it’s all priced in.”Hedge funds have been bailing from equities at a pace not seen since the financial crisis, while tech megacaps have tumbled amid worries that inflation will make it difficult for future profits to live up to elevated valuations.Stocks with stretched valuations bore the brunt of Tuesday’s selling. A group of unprofitable tech firms tumbled 3.4%, extending its decline from a February peak to almost 30%. An index tracking recent initial public offerings, most of which have yet to make money, sank 2.6%.As selling picked up, options traders scrambled for protection. At one point the Cboe Volatility Index, a measure of cost for options tied to the S&P 500 known as VIX, jumped to nearly 22. It closed at more than 19, the highest level since March.Lately, skittishness has been especially visible among professional speculators. Fund clients at Bank of America sold equities for a fifth week, with average selling rising to levels not seen since the firm began tracking the data in 2008. At Goldman Sachs Group Inc., hedge funds in April disposed of stocks for the first time in eight months. Similar pessimism was evident at Morgan Stanley, where clients last week dumped banks and materials stocks.Even if they’re not known as steadfast bulls, the industry’s exit is getting extreme. It’s not immediately clear what’s behind the selling spree. Yet from stretched valuations to peak growth and the looming risk of tax hikes, the list of reasons for caution is getting long.“The general impression would be that they see an opportunity to exit at a higher level with the potential to maybe come back into the equity market later in the year,” said Chad Oviatt, director of investment management at Huntington Private Bank. “Hedge funds are opportunistic investors.”The aversion among hedge funds contrasts with the buoyant sentiment among retail investors and corporate America. At BofA, wealthy individuals snapped up shares for 10 straight weeks while corporate clients accelerated buybacks of their own stocks amid the best earnings season in more than a decade.After being burned by a retail-driven short squeeze in late January, hedge funds are reloading on bearish wagers. In April, Goldman’s clients boosted short positions on individual stocks for a third straight month.(A prior version of this story corrected the month in the headline.)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. Business Yahoo Finance 210504 14h32m Yellen: Higher interest rates may be needed to prevent economy from 'overheating' Treasury Secretary Janet Yellen said this week that the Federal Reserve may have to raise interest rates in the future to cool off an economy moving too fast. Business Yahoo Finance Video 210504 14h28m Paychex CEO on small business optimism and job growth rate Martin Mucci, Paychex CEO, joined Yahoo Finance Live to discuss the company's latest small business employment watch data and what it signals for the recovery. Business Yahoo Finance 210504 14h26m 'Bamboo Ceiling' author: 'Asians have been invisible’ for too long In a new interview with Yahoo Finance, Jane Hyun, the author of "Breaking the Bamboo Ceiling: Career Strategies for Asians,” points out that Asians still face immense difficulty breaking into management roles, Business Bloomberg 210504 14h25m Yellen Says She Was Not Predicting or Recommending Rate Hikes (Bloomberg) -- Treasury Secretary Janet Yellen said she was not predicting or recommending interest-rate increases when remarking earlier about the impact of fiscal spending on the U.S. economy.Earlier on Tuesday Yellen caused a set of hiccups in financial markets when she said the Biden administration’s spending measures will likely provoke a rise in interest rates.“It’s not something I’m predicting or recommending,” Yellen said during an online event hosted by the Wall Street Journal. “If anyone appreciates the independence of the Federal Reserve I think that person is me.”Yellen, herself a former Fed chair, said she didn’t anticipate a bout of persistently higher inflation -- but that if one occurred the central bank has the tools to deal with it.“The Fed can be counted on to do whatever is necessary to achieve their dual mandate objectives,” she said.Questions about Yellen’s earlier comments had prompted White House Press Secretary Jen Psaki, at her daily briefing, to say, “Secretary Yellen certainly understands” the Fed’s independence.Read More: Yellen Ruffles Markets With Comment on Prospect for Higher RatesFor 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. Howell date : 210504 14h20m16s Business Reuters 210504 14h14m Brazil's PetroRio eyeing assets beyond Petrobras' Albacora field -CEO Brazilian oil company PetroRio is still interested in acquiring the Albacora field in the Campos Basin from Petrobras, but is also eyeing other offshore assets, the company's chief executive, Roberto Monteiro, said on Tuesday. The offer phase for Albacora is expected to be in July, Monteiro said on a conference call with market analysts following the firm's first-quarter results. Business Reuters 210504 14h11m Lyft slashes losses with ongoing cost cuts, maintains third-quarter profit target Lyft Inc on Tuesday posted significantly lower losses than expected and reiterated its goal to be profitable on an adjusted basis in the third quarter thanks to continued cost cuts that allow the company to earn more per ride. Lyft reported an adjusted $73 million first-quarter loss before interest, taxes, depreciation and amortization - a metric that excludes more than $300 million in one-time costs, including stock-based compensation. The results come as Lyft emerges from more than a year of pandemic-related restrictions during which ridership and revenue plummeted. Business Bloomberg 210504 14h10m Stock Winners Fall in Selloff Sparked by Inflation Fears (Bloomberg) -- Stock bulls have shrugged off inflation angst for months. That got a lot harder to do on Tuesday.Janet Yellen roiled financial markets when she said interest rates may have to rise moderately to keep the economy from overheating. The Treasury secretary’s comments hit a stock market already showing signs of jitters over rising prices. Hedge funds have been bailing from equities at a pace not seen since the financial crisis, while tech megacaps have tumbled amid worries that inflation will make it difficult for future profits to live up to elevated valuations.The mere suggestion that the Federal Reserve may have to unpin rates from near zero was enough for bulls to head for the exits after the latest market runup sparked a flurry of bubble speculation. The S&P 500 has added more than 10% already this year and valuations have reached levels last seen two decades ago.“Given where valuations are, given where optimism is, given how fast and far we’ve come, it feels like the market is due for a little correction,” David Spika, president of GuideStone Capital Management, said by phone. “There’s a lot of good news out there but it really feels like it’s all priced in.”Stocks with stretched valuations bore the brunt of Tuesday’s selling. A group of unprofitable tech firms tumbled 3.4%, extending its decline from a February peak to almost 30%. An index tracking recent initial public offerings, most of which have yet to make money, sank 2.6%.As selling picked up, options traders scrambled for protection. At one point the Cboe Volatility Index, a measure of cost for options tied to the S&P 500 known as VIX, jumped to nearly 22. It closed at more than 19, the highest level since March.Lately, skittishness has been especially visible among professional speculators. Fund clients at Bank of America sold equities for a fifth week, with average selling rising to levels not seen since the firm began tracking the data in 2008. At Goldman Sachs Group Inc., hedge funds in April disposed of stocks for the first time in eight months. Similar pessimism was evident at Morgan Stanley, where clients last week dumped banks and materials stocks.Even if they’re not known as steadfast bulls, the industry’s exit is getting extreme. It’s not immediately clear what’s behind the selling spree. Yet from stretched valuations to peak growth and the looming risk of tax hikes, the list of reasons for caution is getting long.“The general impression would be that they see an opportunity to exit at a higher level with the potential to maybe come back into the equity market later in the year,” said Chad Oviatt, director of investment management at Huntington Private Bank. “Hedge funds are opportunistic investors.”The aversion among hedge funds contrasts with the buoyant sentiment among retail investors and corporate America. At BofA, wealthy individuals snapped up shares for 10 straight weeks while corporate clients accelerated buybacks of their own stocks amid the best earnings season in more than a decade.After being burned by a retail-driven short squeeze in late January, hedge funds are reloading on bearish wagers. In April, Goldman’s clients boosted short positions on individual stocks for a third straight month.(Updates with market data from fifth 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. Business Reuters 210504 14h10m Activision Blizzard raises annual sales forecast on 'Call of Duty' boost The gaming industry has reaped the benefits of lockdowns keeping people indoors, with research firm NPD estimating that U.S. consumer spending on video games surged 30% to $14.92 billion in the first quarter. Activision Blizzard raised its full-year adjusted sales forecast to $8.60 billion from $8.45 billion, slightly above analysts' estimates of $8.55 billion, according to Refinitiv IBES data. Its first-quarter results benefited from strength in all of the company's franchises, Chief Executive Officer Bobby Kotick said in a statement. Business Yahoo Finance 210504 14h06m Stock market news live updates: Nasdaq drops 1.9% in worst session since March as tech stocks sell off Stocks fell Tuesday after a mixed session a day earlier, with technology stocks leading the way lower as investors awaited the next set of corporate earnings results. Business Yahoo Finance 210504 14h05m Lyft beats Q1 earnings estimates, co-founder says 'recovery is clear' Lyft co-founder and president John Zimmer chats with Yahoo Finance about the company's latest quarter and what lays ahead for the year. Business Yahoo Finance 210504 14h05m Activision Blizzard earnings crush expectations thanks to ‘Call of Duty’ and mobile growth Activision Blizzard blew away analyst expectations in Q1 2021. Business Bloomberg 210504 14h04m NXP Sells $2 Billion of Debt to Fund Power-Saving Semiconductors (Bloomberg) -- NXP Semiconductors NV sold $2 billion of bonds to help finance the development of semiconductors that reduce energy consumption in products like power adapters and electric vehicles.The chipmaker issued bonds in two parts, according to a person with knowledge of the matter, who asked not to be identified as the details are private. The longer portion of the deal, a 20-year security, yields 1.15 percentage points above Treasuries, down from the initially targeted 1.5% premium, the person said. That equates to about 3.30%.The money will partly fund research and development for innovation in green chips, battery control and energy management for electric and hybrid cars, smart-building technologies, as well as energy-efficiency measures at NXP’s own facilities, the company said in a statement Tuesday. The funds were raised by subsidiaries NXP B.V., NXP Funding LLC and NXP USA Inc. The company raised $1 billion in green debt in April 2020.Corporations and governments globally have raised about $156 billion from green bonds this year, nearly tripling the roughly $58 billion issued over the same span in 2020, according to data compiled by Bloomberg. The technology sector hasn’t been a huge contributor, amounting to only 1.2% of this year’s total.Semiconductors are critical components to many aspects of modern life, and used in everything from washing machines, cars and computing. While chips have become incredibly powerful and efficient, using less and less energy, producing them is increasingly elaborate work. Chipmakers broadly acknowledge there’s a giant carbon footprint issue in their fabrication.NXP said it has cut absolute emissions of perfluorinated compounds (PFCs), which are greenhouse gases, by 66%. Intel Corp., the world’s largest chipmaker, said it was already among the top three users of renewable energy in the U.S. Meanwhile, a global chip shortage is going from bad to worse with automakers on three continents joining tech giants Apple Inc. and Samsung Electronics Co. in flagging production cuts and lost revenue from the crisis.Considerable demand for the NXP offering could drive down spreads on the 10-year offering toward 100 basis points, “as double-digit revenue growth returns and credit quality stays on an improving trajectory,” Bloomberg Intelligence analysts Robert Schiffman and Suborna Panja wrote in a note Tuesday.The Eindhoven, Netherlands-based company has approximately 29,000 employees in more than 30 countries and generated $8.61 billion in revenue last year.Barclays Plc, Citigroup Inc. and Credit Suisse Group AG managed the sale, the person 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. Howell date : 210504 13h49m39s Business Bloomberg 210504 13h39m Tech Selloff Sweeps Across Stocks; Dollar Climbs: Markets Wrap (Bloomberg) -- Volatility gripped financial markets as a selloff in some of the world’s largest technology companies dragged down stocks.Megacaps such Apple Inc., Tesla Inc. and Amazon.com Inc. sank the Nasdaq 100, while the S&P 500 pared losses amid a rebound in commodity, financial and industrial shares. The dollar advanced after Treasury Secretary Janet Yellen said interest rates may have to rise modestly to prevent the U.S. economy from overheating.Her remarks added to the debate on whether government spending could spur a surge in inflation at a time when stock valuations have reached the highest levels in two decades. Hedge funds have been bailing from equities at a pace not seen since the financial crisis, while shares have struggled to gain much traction despite blowout earnings. And the mere suggestion the Federal Reserve may have to lift rates from near zero was enough for investors to head for the exits after the latest market rally sparked a flurry of bubble speculation.“We’ve had this spectacular run-up, and I think we’ve seen momentum just run out of steam,” said Fiona Cincotta, senior financial markets analyst at City Index. “Despite earnings being encouraging, they haven’t managed to push those indices higher. Moving out of growth and into cyclicals is the place we’re going to have more movement.”Earlier Tuesday, a sharp drop in equity futures left traders scrambling for an explanation. Some of them speculated on military tensions between China and Taiwan, Singapore’s tougher coronavirus restrictions and Ferrari NV’s decision to postpone financial targets.Investors also monitored the latest economic readings, with the U.S. trade deficit widening to a new record in March. Meanwhile, a senior White House economic aide demurred on the question of whether President Joe Biden will nominate Fed Chair Jerome Powell for a second four-year term, saying the decision on selecting the next central bank chief will come after a thorough “process.”Here are some key events to watch this week:U.S. ADP employment change is due WednesdayChicago Fed President Charles Evans gives a virtual speech at an event hosted by Bard College on Wednesday. Cleveland Fed President Loretta Mester gives a virtual speech to the Boston Economic ClubBank of England rate decision ThursdayThe April U.S. employment report is released on FridayThese are some of the main moves in markets:StocksThe S&P 500 fell 0.9% as of 3:36 p.m. New York timeThe Nasdaq 100 fell 2.1%The Dow Jones Industrial Average fell 0.1%The MSCI World index fell 1%CurrenciesThe Bloomberg Dollar Spot Index rose 0.3%The euro fell 0.4% to $1.2013The British pound fell 0.2% to $1.3886The Japanese yen fell 0.2% to 109.33 per dollarBondsThe yield on 10-year Treasuries was little changed at 1.59%Germany’s 10-year yield declined three basis points to -0.24%Britain’s 10-year yield declined five basis points to 0.79%CommoditiesWest Texas Intermediate crude rose 1.8% to $66 a barrelGold futures fell 0.9% to $1,776 an ounceFor 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. World Yahoo Finance 210504 13h35m Pfizer in talks with India for COVID-19 vaccine Pfizer's CEO says Indian policy is holding up the potential to inoculate the country. Business Bloomberg 210504 13h33m Oil Reaches Seven-Week High With Demand Revival Gaining Traction (Bloomberg) -- Oil climbed to the highest since the middle of March as reopening efforts and vaccination pushes from the U.S. to Europe underpin hopes for a return to normal demand in the world’s largest economies.Futures in New York gained 1.9% on Tuesday, the biggest daily jump in nearly three weeks, while gasoline futures settled at the highest since July 2018. The U.S. is setting a new target of 70% of U.S. adults receiving at least one Covid-19 vaccine shot by July 4, while British Prime Minister Boris Johnson said his country’s lockdown rules are set to be scrapped in seven weeks. That’s offsetting concerns about weaker oil consumption in parts of Asia, including key importer India, where Covid-19 remains rampant.“Gasoline inventories in the U.S. are well below where they were a year ago and we’ve taken out refinery capacity,” said Peter McNally, global head for industrials, materials and energy at Third Bridge. “We’ve seen the impact on demand as more people get vaccinated, so we’re going to get that tailwind plus seasonality coming later this month.”U.S. crude futures are up more than 35% this year -- amid a broad advance across commodity markets -- as investors bet that the rollout of vaccines will permit a return to pre-pandemic conditions. The European Union plans to ease curbs for vaccinated travelers this summer, while in the U.S., New York plans to lift most of it virus restrictions this month. More broadly, the world’s 20 major economies are set to back efforts to introduce so-called vaccine passports to boost the beleaguered travel and tourism industry.“The news from Europe on the outlook toward reopening is providing a good sense of optimism for global demand continuing to rise,” said Gary Cunningham, director at Stamford, Connecticut-based Tradition Energy.Crude’s gains on Tuesday were outpaced by those in petroleum products, most notably gasoline. In the U.S., spread between gasoline and crude futures hit the highest since April of last year in intraday trading. That comes as green shoots of a return to normal demand in the world’s largest oil-consuming country continue to emerge. CVR Energy Inc.’s Oklahoma and Kansas refineries are running all out amid a significant increase in gasoline demand since March, Chief Executive Officer David L. Lamp said during a conference call with investors.At the same time, cash-market gasoline in New York Harbor rose to a six-week high following the shutdown of a key fuel-making unit at Phillips 66’s Bayway refinery in New Jersey. The refinery’s sole fluid catalytic cracker -- one of the largest in the world -- is expected to be down at least several days for repairs.OPEC kept its crude production steady in April, ahead of a planned output hike this month. Production fell by 50,000 barrels day, with a setback in Libya largely offset by further gains for Iran. Underscoring plans from producer nations to bring barrels back into the global market, total global flows of seaborne oil from many of the world’s largest exporters rose in April.See also: Total Oil Flows Climb But Shipments to China Dip: Tanker TrackerIn the U.S., crude stockpiles are expected to have fallen last week, according to a Bloomberg survey, which would be the first decline in inventories in three weeks if confirmed by U.S. government data on Wednesday. The industry-funded American Petroleum Institute releases its storage tally later Tuesday.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. Politics Yahoo Finance 210504 13h27m Former Education Department boss argues against student loan forgiveness and free community college A Education Department (ED) secretary during the George W. Bush administration said she was opposed to student debt cancellation and free community college because those policies would distort the value and price of post-secondary education credentials. Politics Reuters 210504 13h24m U.S. House panel to discuss low-carbon fuel with airline, biofuel industries Members of a U.S. House of Representatives subcommittee will meet on Tuesday with representatives from the biofuels and airline industries to discuss ways to expand production of low-carbon aviation fuel, a panel spokeswoman said. The meeting is part of a broader push by lawmakers to advance climate and energy legislation amid calls by U.S. President Joe Biden's administration to rapidly slash greenhouse gas emissions and decarbonize the U.S. economy by 2050. The aviation subcommittee of the Democratic-led House Committee on Transportation and Infrastructure is set to meet with low-carbon fuels provider World Energy, the Advanced Biofuels Association and Airlines for America, among others, two sources familiar with the meeting said. Politics Reuters 210504 13h16m Biden says hopes to meet Putin during June trip to Europe U.S. President Joe Biden said on Tuesday he would like to hold his proposed summit with Russian President Vladimir Putin during his June trip to Europe. Biden plans to attend a Group of Seven summit in Cornwall, England, set for June 11-13, and then fly to Brussels to meet European Union leaders and attend a June 14 NATO summit. U.S. officials have been working with Russian counterparts on setting up a Biden-Putin summit in a third country during what will be Biden's first overseas trip as president. Howell date : 210504 13h19m02s Business Yahoo Finance 210504 12h55m Pfizer CEO: 'We do think our stock is undervalued' Pfizer's (PFE) COVID-19 vaccine is nothing short of a blockbuster drug for the company, bringing in $3.5 billion in revenue in the first three months of this year, nearly a quarter of its total revenue, Pfizer announced today in its first-quarter results. The company now expects full-year sales of $26 billion from the vaccine, up from its previous forecast of about $15 billion. Business Bloomberg 210504 12h55m Tech Selloff Sweeps Across Stocks; Dollar Climbs: Markets Wrap (Bloomberg) -- Volatility gripped financial markets as a selloff in some of the world’s largest technology companies dragged down stocks.The S&P 500 pared losses amid a rebound in commodity, financial and industrial shares, while the Nasdaq 100 underperformed as megacaps Apple Inc., Tesla Inc. and Amazon.com Inc. sank. The dollar briefly extended its advance after Treasury Secretary Janet Yellen said rates may have to rise modestly to prevent the economy from overheating.Her remarks added to an already heated debate on whether government spending could spur a surge in inflation, crashing into a stock market showing signs of jitters over elevated valuations. Hedge funds have been bailing from equities at a pace not seen since the financial crisis, while shares have struggled to gain much traction despite blowout earnings.“We’ve had this spectacular run-up, and I think we’ve seen momentum just run out of steam,” said Fiona Cincotta, senior financial markets analyst at City Index. “Despite earnings being encouraging, they haven’t managed to push those indices higher. Moving out of growth and into cyclicals is the place we’re going to have more movement.”Earlier Tuesday, a sharp drop in equity futures left traders scrambling for reasons to explain the move. Some investors speculated on military tensions between China and Taiwan, Singapore’s tougher coronavirus restrictions and Ferrari NV’s decision to postpone financial targets.Traders also monitored the latest economic readings, with the U.S. trade deficit widening to a new record in March. Meanwhile, a senior White House economic aide demurred on the question of whether President Joe Biden will nominate Federal Reserve Chair Jerome Powell for a second four-year term, saying the decision on selecting the next central bank chief will come after a thorough “process.”Here are some key events to watch this week:U.S. ADP employment change is due WednesdayChicago Fed President Charles Evans gives a virtual speech at an event hosted by Bard College on Wednesday. Cleveland Fed President Loretta Mester gives a virtual speech to the Boston Economic ClubBank of England rate decision ThursdayThe April U.S. employment report is released on FridayThese are some of the main moves in markets:StocksThe S&P 500 fell 0.9% as of 2:53 p.m. New York timeThe Nasdaq 100 fell 2.2%The Dow Jones Industrial Average fell 0.2%The MSCI World index fell 1%CurrenciesThe Bloomberg Dollar Spot Index rose 0.3%The euro fell 0.4% to $1.2016The British pound fell 0.1% to $1.3896The Japanese yen fell 0.2% to 109.28 per dollarBondsThe yield on 10-year Treasuries was little changed at 1.59%Germany’s 10-year yield declined three basis points to -0.24%Britain’s 10-year yield declined five basis points to 0.79%CommoditiesWest Texas Intermediate crude rose 1.9% to $66 a barrelGold futures fell 0.7% to $1,779 an ounceFor 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. Health Yahoo Finance 210504 12h50m 'We’re entering the harder phase' of coronavirus vaccination The country is approaching an impasse, in which a large share of adults who are now eligible for the vaccine are simply choosing not to get it. World Reuters 210504 12h44m France' STMicro sees no reason to take part in EU chip alliance Franco-Italian chipmaker STMicroelectronics sees no reason to join a potential European Union semiconductors alliance, its chief executive said on Tuesday, as the European Commission is seeking to boost Europe's independence in microchips. CEO Jean-Marc Chéry told BFM Business that the Commission's initiative is a positive development but added that his firm had no interest in taking part. STMicro produces a wide range of chips, from low-margin microcontrollers to more sophisticated sensors used in smartphones and autonomous vehicles. Business Bloomberg 210504 12h37m ClassPass and Vista-Backed Mindbody Said to Hold Merger Talks (Bloomberg) -- ClassPass and Mindbody Inc., providers of technology to fitness companies across the globe, have held merger talks, according to people with knowledge of the matter.Details of the discussions couldn’t immediately be learned and no deal has been reached, one of the people said.A spokesman for Vista Equity Partners, which owns Mindbody, declined to comment. Representatives for Mindbody and ClassPass didn’t immediately respond to requests for comment.New York-based ClassPass is a subscription-based business that gives users the ability to book workouts at fitness studios and other locales, as well as services such as massages and manicures. The company in January 2020 said its valuation eclipsed $1 billion after raising $285 million from investors including L Catterton, Apax Digital and Temasek. Earlier investors include General Catalyst and Josh Kushner’s Thrive Capital.San Luis Obispo, California-based Mindbody, which makes software used by gyms, fitness studios, salons and spas, was the target of a $1.9 billion leveraged buyout by Vista that closed in February 2019. The company went public in 2015.The onset of the pandemic in 2020 hurt fitness companies that both ClassPass and Mindbody count as customers, with many forced to shutter and some pushed into bankruptcy. ClassPass pivoted to provide digital classes, and in February added vaccine centers to its platform.ClassPass co-founder Payal Kadakia and Mindbody co-founder Rick Stollmeyer are both executive chairmen and former chief executive officers of their companies. Fritz Lanman is the current ClassPass CEO, and Josh McCarter has the top job at Mindbody. Both firms offer apps that can be used directly by consumers.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. Business Reuters 210504 12h27m Authorities open labour probe at German Tesla site - Business Insider German authorities are probing possible violations of labour laws at the construction site of Tesla's future German factory, Business Insider reported on Tuesday. The State Office for Occupational Safety and the agency tasked with fighting illicit work were investigating whether minimum wages are being paid as well as whether rules on working hours and conditions for construction workers' housing were being adhered to, the news outlet reported. Tesla and the German authorities were not immediately for comment. Howell date : 210504 12h48m25s Business Reuters 210504 12h27m Authorities open labour probe at German Tesla site - Business Insider German authorities are probing possible violations of labour laws at the construction site of Tesla's future German factory, Business Insider reported on Tuesday. The State Office for Occupational Safety and the agency tasked with fighting illicit work were investigating whether minimum wages are being paid as well as whether rules on working hours and conditions for construction workers' housing were being adhered to, the news outlet reported. Tesla and the German authorities were not immediately for comment. Business Bloomberg 210504 12h22m Yellen Ruffles Markets With Comment on Prospect for Higher Rates (Bloomberg) -- Discover what’s driving the global economy and what it means for policy makers, businesses, investors and you with The New Economy Daily. Sign up hereTreasury Secretary Janet Yellen ruffled financial markets Tuesday with a comment economists regarded as self evident -- that interest rates will likely rise as government spending ramps up and the economy responds with faster growth.“It may be that interest rates will have to rise somewhat to make sure our economy doesn’t overheat,” Yellen said in an interview with the Atlantic recorded Monday that was broadcast on the web on Tuesday. “It could cause some very modest increases in interest rates.”It was a rare remark on the outlook for interest rates by a cabinet member, who in recent history -- aside from the very notable exception of former President Donald Trump’s administration -- tended not to veer anywhere close to the jurisdiction of the Federal Reserve. Yellen, herself a former Fed chair, was more likely referring to market interest rates than central bank policy rates, Fed watchers said.Stocks, already down for the session, slid further after Yellen’s remarks, while Treasury yields pared losses and the dollar hit its high of the day.Low RatesInvestors aren’t expecting the Fed to boost its policy rate for years to come, and Fed Chair Jerome Powell last week underscored it’s not time yet to contemplate paring back on asset purchases. Any hint that a less-easy Fed is on the immediate horizon would have major implications for markets.Higher rates would also be counterproductive for Biden’s plans -- Yellen has repeatedly highlighted how historically low borrowing costs today give the government greater scope to boost spending.The current administration has been careful to avoid a pattern of commenting directly on Fed policy in the way Trump did, with President Joe Biden even saying last month he hadn’t met with Powell, out of respect for the central bank’s independence.Read More: Biden, Touting Fed Independence, Yet to Speak With Powell“I don’t think she was making a statement about monetary policy,” said Roberto Perli, a former Fed economist who’s now at Cornerstone Macro LLC. “I’m inclined to read it in terms of longer-term rates -- in which case it’s a fairly innocuous statement.”Even so, Yellen’s comments featured later Tuesday at the daily White House press briefing, with White House Press Secretary Jen Psaki saying that “Secretary Yellen certainly understands” the Fed’s independence.Psaki also said that Biden agrees with Yellen, and that “we also take inflationary risk incredibly seriously.”Tony Fratto, a former Bush-era White House and Treasury official, said via Twitter that “Treasury secretaries shouldn’t talk about the Fed’s policy rate, and Fed governors shouldn’t talk about US dollar policy.”The comments come amid a debate on whether Biden’s raft of proposed and enacted government spending could spur a surge in price pressures. Administration and Fed officials both have consistently dismissed concerns over accelerating inflation. They’ve argued that price gains expected this year will be largely transitory, and that the central bank has tools to contain any persistent effects.Spending Bills“It should not come as a shock that the two very large spending bills being contemplated would push longer-term interest rates higher,” either through stronger economic growth or by changing expectations among investors for when the Fed will raise rates, said Michael Gapen, chief U.S. economist at Barclays Plc. “That’s consistent with what markets would say.”Gapen said he didn’t think the comments represented a preference for how the Fed should be managing the impact of government spending.Yellen has an opportunity for further comment Tuesday, with a scheduled live interview at a Wall Street Journal event at 4 p.m. Washington time.When Fed officials last issued projections, in March, they forecast no move in interest rates until at least 2024.Yellen insisted that the heavy spending Biden is calling for would provide a net benefit to the economy, even if interest rates do go up.“These are investments our economy needs to be competitive and to be productive, and I think our economy will grow faster because of them,” Yellen said.The Biden administration has proposed additional spending packages totaling about $4 trillion on top of the $1.9 trillion it pumped into the economy beginning in March to combat the impact of the Covid-19 pandemic.“This has a demand effect on the economy but really it’s going to have important supply effects on the economy,” Yellen 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. Business Reuters 210504 12h20m Largo Resources taps Brazil in vanadium battery push U.S.-based Largo Clean Energy is preparing to produce batteries using vanadium extracted from northeastern Brazil, the company's chief executive said on Tuesday, in a bid to capture a chunk of the fast-growing renewable energy storage market. The company, whose parent Largo Resources Ltd is mining the elemental metal in the Brazilian state of Bahia, is in advanced negotiations with potential clients, said Paulo Misk, CEO of the Largo group. "Our battery isn't competing with car batteries," he said in a video interview. Business Bloomberg 210504 12h19m Tech Selloff Sweeps Across Stocks; Dollar Climbs: Markets Wrap (Bloomberg) -- Volatility gripped financial markets as a selloff in some of the world’s largest technology companies dragged down stocks.The S&P 500 came off session lows amid gains in commodity, financial and industrial shares, but still headed toward its biggest drop since mid March. The Nasdaq 100 underperformed as megacaps Apple Inc., Tesla Inc. and Amazon.com Inc. sank. The dollar briefly extended its advance after Treasury Secretary Janet Yellen said interest rates may have to rise modestly to prevent the economy from overheating.Her remarks added to an already heated debate on whether government spending could spur a surge in inflation, crashing into a stock market showing signs of jitters over elevated valuations. Hedge funds have been bailing from equities at a pace not seen since the financial crisis, while shares have struggled to gain much traction despite blowout earnings.“We’ve had this spectacular run-up, and I think we’ve seen momentum just run out of steam,” said Fiona Cincotta, senior financial markets analyst at City Index. “Despite earnings being encouraging, they haven’t managed to push those indices higher. Moving out of growth and into cyclicals is the place we’re going to have more movement.”Earlier Tuesday, a sharp drop in equity futures left traders scrambling for reasons to explain the move. Some investors speculated on military tensions between China and Taiwan, Singapore’s tougher coronavirus restrictions and Ferrari NV’s decision to postpone financial targets.Traders also monitored the latest economic readings, with the U.S. trade deficit widening to a new record in March. Meanwhile, a senior White House economic aide demurred on the question of whether President Joe Biden will nominate Federal Reserve Chair Jerome Powell for a second four-year term, saying the decision on selecting the next central bank chief will come after a thorough “process.”Here are some key events to watch this week:U.S. ADP employment change is due WednesdayChicago Fed President Charles Evans gives a virtual speech at an event hosted by Bard College on Wednesday. Cleveland Fed President Loretta Mester gives a virtual speech to the Boston Economic ClubBank of England rate decision ThursdayThe April U.S. employment report is released on FridayThese are some of the main moves in markets:StocksThe S&P 500 fell 1% as of 2:18 p.m. New York timeThe Nasdaq 100 fell 2.4%The Dow Jones Industrial Average fell 0.2%The MSCI World index fell 1%CurrenciesThe Bloomberg Dollar Spot Index rose 0.2%The euro fell 0.3% to $1.2022The British pound fell 0.1% to $1.3897The Japanese yen fell 0.2% to 109.24 per dollarBondsThe yield on 10-year Treasuries declined two basis points to 1.58%Germany’s 10-year yield declined three basis points to -0.24%Britain’s 10-year yield declined five basis points to 0.79%CommoditiesWest Texas Intermediate crude rose 1.2% to $65 a barrelGold futures fell 0.7% to $1,779 an ounceFor 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. Business Yahoo Finance Video 210504 12h12m Automation is a ‘win-win’ in every way: XPO Logistics CEO Malcolm Wilson, CEO of XPO Logistics in Europe and incoming CEO of GXO Logistics, joins Yahoo Finance’s Kristin Myers and Alexis Christoforous to discuss XPO Logistics’ growth amid the pandemic and operating Apple’s new facility in Indiana. Howell date : 210504 12h17m47s Business Reuters 210504 12h07m Largo Resources taps Brazil in vanadium battery push U.S.-based Largo Clean Energy is preparing to produce batteries using vanadium extracted from northeastern Brazil, the company's chief executive said on Tuesday, in a bid to capture a chunk of the fast-growing renewable energy storage market. The company, whose parent Largo Resources Ltd is mining the elemental metal in the Brazilian state of Bahia, is in advanced negotiations with potential clients, said Paulo Misk, CEO of the Largo group. "Our battery isn't competing with car batteries," he said in a video interview. World Bloomberg 210504 12h05m U.S. to Reallocate Doses; Chicago Auto Show Back: Virus Update (Bloomberg) -- President Joe Biden will set a new target of 70% of U.S. adults receiving at least one vaccine shot by July 4. The White House also told governors that that any unclaimed shots in their states will be redirected to a pool of doses available for distribution elsewhere, according to people familiar with the discussion. U.K. Prime Minister Boris Johnson said the country is on course to scrap lockdown rules, and Denmark will ease curbs this week. Singapore is cracking down in response to a flareup linked to the variant first identified in India, a setback for one of the most successful virus-containment regimes.India was criticized for a “lack of leadership” as its prime minister resists pressure to lock down. The country’s cricket regulators suspended the Premier League after players tested positive.The world’s 20 major economies threw their weight behind efforts to introduce so-called vaccine passports. Goldman Sachs Group Inc. plans for U.S. employees to return to offices by mid-June, while Vanguard Group prefers a hybrid model.Key DevelopmentsGlobal Tracker: Cases top 153.6 million; deaths exceed 3.21 millionVaccine Tracker: More than 1.17 billion doses have been givenVaccinations decline across U.S., spurring search for holdoutsIt’s not just India. New virus waves deluge developing countriesBank bosses want a return to office. Underlings aren’t so sureWhat are vaccine passports and how would they work?: QuickTakeSubscribe to a daily update on the virus from Bloomberg’s Prognosis team here. Click CVID on the terminal for global data on cases and deaths.Biden Targets 70% of Adults Getting a Shot by July (2 p.m. NY)President Joe Biden will set a new target of 70% of U.S. adults receiving at least one Covid-19 vaccine shot by July 4 as the administration seeks to stem a dropoff in inoculations.Biden’s goals -- set to be announced in a 2:30 p.m. speech from the White House on Tuesday -- will be for 70% of the adult population to have at least one shot and for 160 million adults to be fully vaccinated by Independence Day, according to officials familiar with the matter.As of now, 56% of U.S. adults, or 145 million, have received at least one dose and nearly 41%, or about 105 million, are fully vaccinated, according to the Centers for Disease Control and Prevention.White House to Reallocate Vaccine Doses (1:20 p.m. NY)President Joe Biden’s administration told governors Tuesday that it would begin reallocating vaccines that go unclaimed by states -- essentially clawing back unwanted doses from places where the pace of shots is lagging in order to steer them elsewhere, three people familiar with the call said.The White House told governors about the switch during a weekly call with the state leaders. Biden is due to speak Tuesday afternoon at the White House about the Covid response.Chicago Auto Show to Return in July (11:10 a.m. NY)The Chicago Auto Show will be held at McCormick Place in July, marking the first large convention to be held in the city and the state of Illinois since the Covid-19 pandemic began more than a year ago, officials said Tuesday.The reopening of the convention center “is a critical step toward our state’s economic recovery,” Governor J.B. Pritzker said during a press conference at the site on Tuesday. The auto show, on the biggest in the U.S., will be held from July 15 to 19 with safety measures in place, such as limiting crowd size.CVS Boosts Forecast on Covid Shots (10:20 a.m. NY)CVS Health Corp. raised its full-year forecast as Covid-19 vaccines and testing helped boost first-quarter results and offset a weak cold and flu season.The health-care company gave 17 million Covid shots at long-term care facilities and at its pharmacies through April. CVS is now immunizing in about 8,300 locations in 49 states, Chief Executive Officer Karen Lynch said Tuesday on a call with analysts.Leading Nations Set to Back Vaccine Passports (8:28 a.m. NY)The world’s 20 major economies threw their weight behind efforts to introduce so-called vaccine passports to boost travel and tourism, stressing that a resumption is crucial for a global economic recovery, according to a draft statement seen by Bloomberg.Tourism ministers from the Group of 20 nations, who met on Tuesday, said the outlook for a sector devastated by lockdowns remains “highly uncertain,” according to the draft, which is subject to change.U.K. Has No Plan to Speed Lockdown Easing (7:56 a.m. NY)“We’ve got no plans to deviate form the earliest dates set out in the roadmap” for unlocking the economy, Prime Minister Boris Johnson’s spokesman told reporters.UAE Extends Suspension of India Flights (7:46 a.m. NY)The United Arab Emirates extended the suspension of flights from India. The UAE, home to Dubai-based Emirates and Abu Dhabi-based Etihad Airways, had halted the flights until May 14. A new end date hasn’t yet been announced.Singapore Tightens Rules (6:57 a.m. NY)Singapore is limiting social gatherings and tightening border curbs as it reacts aggressively to a flareup linked to the new variant first identified in India.From May 8 to May 30, group gatherings must be cut from a maximum of eight to five, while daily visitors per household will be similarly capped, the Ministry of Health said in a statement. At workplaces, no more than 50% of staff who are able to work from home can return to offices.Pfizer Boosts Vaccine Revenue Forecast (6:46 a.m. NY)Pfizer Inc. boosted its full-year forecast for sales of its vaccine produced with BioNTech SE to approximately $26 billion, from about $15 billion previously. The guidance includes 1.6 billion doses expected to be delivered this year under contracts that have been signed through mid-April, and it may be adjusted as additional contracts are executed, Pfizer said in its release.“We also are in ongoing discussions with multiple countries around the world about their needs, and we expect these discussions to lead to additional supply agreements,” CEO Albert Bourla said in prepared remarks.Moderna Tests Lower-Dose Vaccines (6:02 a.m. NY)Moderna Inc. is testing vaccines with lower doses to try to boost supply, and it may also need to expand work on boosters to cover for more variants, Chairman Noubar Afeyan said in an interview with Bloomberg Television. He said he expects the coronavirus may become endemic like seasonal flu, and that vaccinating children seems like a good approach given Covid’s after-effects.Vietnam Extends Quarantine Period (5:41 p.m. HK)Vietnam is keeping people in quarantine centers longer than the 14-day period amid the emergence of cases being traced to overseas travelers.Provinces were instructed by the health ministry to “temporarily keep” in quarantine until further notice people who have completed the 14-day isolation, according to a post on the government website. Three patients in Vinh Phuc were found to be carrying a virus variant first detected in India, the health ministry said.Malaysia Imposes Curbs in Richest State (5:32 p.m. HK)Malaysia tightened restrictions in six districts in Selangor, the country’s richest state, in a bid to contain a rise in infections. The so-called movement control order will be in place from May 6 through May 17, Defense Minister Ismail Sabri Yaakob said in a briefing. While social gatherings will be banned in the six areas, economic activities will be allowed.EU Regulator Starts Rolling Review of Sinovac (5:08 p.m. HK)The European Medicines Agency said it started a rolling review of the vaccine from China’s Sinovac Life Sciences Co. to test compliance with safety and quality standards, the first major step in gaining approval for use in the European Union.The EMA started a rolling review of Russia’s Sputnik V vaccine in March. Its human medicines committee, CHMP, said the decision to review the Sinovac shot was based on studies and data that suggest the vaccine triggers the production of antibodies that target SARS-CoV-2, according to a statement.Japan PM Struggles Over Decision (4:54 p.m. HK)Japanese Prime Minister Yoshihide Suga is reportedly struggling with the decision on whether to end or extend the coronavirus state of emergency for Tokyo and greater Osaka.Suga told infectious disease expert and cabinet adviser Nobuhiko Okabe that the decision over whether to lift the emergency on May 11 will be “tough,” local broadcaster FNN reported, citing Okabe’s remarks to reporters after a meeting with Suga on Tuesday.Osaka Governor Hirofumi Yoshimura indicated the prefecture may seek an extension to its current state of emergency due to the number of new cases and pressure on the medical system.India Cricket League Suspended (4:11 p.m. HK)India’s cricketing regulator suspended the Premier League after multiple players contracted Covid-19, bringing a temporary halt to a tournament that has divided the nation on whether it was appropriate to play sport as thousands of citizens die each day.U.K. to Gradually Wind Back Curbs (2:45 p.m. HK)British Prime Minister Boris Johnson said the U.K. is on course to gradually scrap lockdown rules over the next seven weeks, hailing the U.K.’s successful vaccine rollout ahead of key elections this week.Johnson said the pandemic data was likely to allow people in England to stay overnight with friends or relations, with indoor hospitality able to reopen from May 17. Remaining social distancing rules are also likely to be canceled from June 21, though he warned that international travel will need to be carefully monitored after May 17.Rajan Slams India’s Leadership (12:55 p.m. HK)India today reported more than 357,000 new infections, bringing the total official tally to more than 20 million cases, and an additional 3,449 deaths. The tally comes as Premier Modi continues to see lockdowns as the “last option” despite a growing domestic and international chorus calling for action.The wave of infections in India has revealed complacency after last year’s first wave, as well as a “lack of foresight, a lack of leadership,” said Raghuram Rajan, former governor of the country’s central bank.“If you were careful, if you were cautious, you had to recognize that it wasn’t done yet,” Rajan said in a Bloomberg Television interview. “Anybody paying attention to what was happening in the rest of the world, in Brazil for example, should have recognized the virus does come back and potentially in more virulent forms.Denmark Eases Curbs, Drops J&J (12:30 p.m. HK)Denmark will ease more restrictions this week as the infection rate has remained stable in the Nordic country, the government said. All children through 8th grade will return to schools full-time, while cinemas, theaters and gyms will also reopen.Denmark also won’t use J&J’s vaccine due to concern about the risk of blood clots, the Danish Health Authority said. The move comes less than a month after Denmark became the first European Union member to drop AstraZeneca Plc for similar reasons. Both shots are used in many other countries.Denmark had pre-ordered about 7 million vaccine shots from J&J, more than from any other producer, so the decision will delay the national vaccine rollout by four weeks.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. World Reuters 210504 11h54m UPDATE 1-Brazil's Guedes says real poised to rise, would be 'great' if dollar fell Brazil's real is poised to strengthen against the U.S. dollar, as the country emerges from the "difficult and turbulent" phase that has contributed to its recent weakness, Economy Minister Paulo Guedes said on Tuesday. Economy undersecretary Bruno Bianco had said last week the government is considering new work contracts adapted to informal service providers. Business Bloomberg 210504 11h48m Pfizer Sees $26 Billion From Covid Shot, Big Potential Ahead (Bloomberg) -- Pfizer Inc. laid out a plan to turn its Covid-19 vaccine into a long-term business, clinching supply agreements that will yield $26 billion in sales this year while expanding the shot to children and developing new formulations that can combat variants and be stored more easily.The drugmaker’s revenue forecast was an increase from $15 billion, reflecting the strong demand worldwide for a return to normalcy. Pfizer said it now expects to deliver 1.6 billion doses this year under contracts signed as of mid-April, with half the profits going to its partner in developing the shot, BioNTech SE.The company will add $500 million to its research and development spending this year to invest in Covid-19 treatments and other vaccines using the cutting-edge messenger RNA technology. That investment comes as Chief Executive Officer Albert Bourla bets Covid-19 will become endemic, requiring people to get regular shots for years to come.“Based on what we’ve seen, we believe that a durable demand for our Covid-19 vaccine -– similar to that of the flu vaccines –- is a likely outcome,” Bourla said in remarks prepared for a Tuesday analyst call.Shares of Pfizer were up 0.2% to $39.89 at 1:47 p.m. in New York trading. Through the close of trading on Monday, the drugmaker had gained 8.2% this year.In the first quarter, the Covid-19 vaccine known as BNT162b2 drew $3.5 billion in sales, based on deliveries to more than 50 countries, the New York-based company said in its earnings statement Tuesday.”We are in discussions with a number of countries around the world for multi-year contracts for the potential supply of COVID-19 vaccine doses during 2022 and beyond,” Bourla said.Meanwhile, the vaccine partners are studying their shot in children ages 6 months to 11 years old. Pfizer expects to seek an emergency-use authorization for two cohorts (age 2 to 5, and 5 to 11) in September, and for those six months to 2 years in the fourth quarter. Clearance is expected imminently for those 12 to 15.Next-Generation ShotBourla said Pfizer is testing a third dose of the existing formulation of its Covid shot to determine whether a booster provides protection against SARS-CoV-2 virus variants currently in circulation.The company has begun evaluating an updated formulation that encodes the spike protein of the variant first identified in South Africa. “This study is designed to establish a regulatory pathway to update the current vaccine to address any future variant of potential concern in approximately 100 days,” Bourla said.Pfizer expects immunogenicity data for both studies in early July. That month, or in early August, the company will also report safety data from an ongoing study of the vaccine in pregnant women.The drug giant is also seeking to improve delivery. On Friday, Pfizer approached U.S. regulators with data that would support the vaccine being stored at standard refrigerator temperatures for as long as four weeks. It’s also working on a new formulation that could be stored in a refrigerator for 10 weeks, and as long as six months at -50° to -70° centigrade. Bourla said he expects data from this formulation in August.Antiviral CandidatesSeparately, Pfizer is testing two antiviral candidates -- one drug given intravenously, one pill -- to treat patients who have contracted Covid. The former will launch into late-stage studies in May, while the latter will kick start in July.Altogether, Pfizer is boosting its full-year guidance for adjusted research and development expenses in a range of $9.8 billion to $10.3 billion “to incorporate anticipated spending on incremental Covid-19 related programs and other mRNA-based projects that are not part of the BioNTech collaboration,” Chief Financial Officer Frank D’Amelio said in prepared remarks.Pfizer and BioNTech are splitting R&D costs related to their vaccine.Bourla, speaking in an interview with Bloomberg, said the current profit and cost-sharing dynamic that exists between the company and BioNTech is “set in stone” moving into the future, even as it reconfigures its strategy for an endemic phase of Covid.2022 ProductionPfizer and BioNTech will have the capacity to produce at least 3 billion doses in 2022. The companies have already made progress in securing vaccine contracts for next year and beyond.Pfizer has signed a supply agreement with Israel to provide enough Covid shots to protect every eligible citizen in 2022, and with Canada to supply as many as 125 million doses in 2022 and 2023, with options of 60 million additional doses in 2024.Chief Scientific Officer Mikael Dolsten said those who have been fully immunized will likely only need a single booster shot each year as immunity wanes. Pfizer will still deliver full two-dose regimens to places where the vaccine rollout has been slower going into the years ahead.But some on Wall Street remain skeptical that the Pfizer-BioNTech partnership can maintain high demand for its vaccine well into the future.“Sales are clearly exceeding expectations, and this trend likely continues into 2022,” said JPMorgan analyst Chris Schott in a note to investors. “However, these sales are unlikely to be sustainable anywhere near current levels longer term.”Beyond CovidPfizer’s foray into messenger RNA, the new technology that’s been validated in the pandemic, goes well beyond its Covid vaccine, according to Bourla.The company will move two mRNA flu shots into clinical trials come the third quarter, and will also explore using the technology to address other infectious diseases, cancers and genetic disease.Asked whether Pfizer had considered acquiring BioNTech, Bourla said he speaks with the German company’s CEO and Chief Medical Officer “almost every day,” and that they would embark on new partnerships, but declined to comment on deal prospects.Excluding the Covid vaccine, Pfizer’s core drug business showed significant growth, leading it to raise revenue guidance specific to that portfolio by $200 million for the year. The results were stronger than some rivals who saw sales suffer in the first quarter after a new surge in U.S. virus cases.Overall, revenue in the quarter was $14.58 billion, stronger than the $13.62 billion that analysts had expected on average, according to data compiled by Bloomberg. First-quarter adjusted earnings per share were 93 cents, up 47% from 63 cents a year ago.Blood thinner Eliquis sales grew 25% year-over-year to $1.65 billion, topping Wall Street estimates. Breast cancer drug Ibrance and its Prevnar vaccine franchise, however, underperformed analysts’ expectations.“It was a difficult quarter in general for the industry,” Bourla said in the interview. “Our ability to have such a phenomenal performance in the other business makes me even more proud.”(Adds CEO comment on Pfizer’s partnership with BioNTech in the 16th 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. Business Yahoo Finance 210504 11h47m Strategists raise 2021 stock market outlooks, though additional upside may be limited With the economic recovery well under way and the stock market hovering just below all-time highs, Wall Street firms are building a case for stocks to keep climbing into the end of 2021. Howell date : 210504 11h47m08s Business Yahoo Finance 210504 11h26m Buffett: It's 'corporate fiction' to say higher business taxes hurt customers At the Berkshire Hathaway annual meeting, Warren Buffett responded to concerns about President Joe Biden's proposed tax changes. Business Reuters 210504 11h23m U.S. Commerce Dept pressing Taiwan to supply more chips to U.S. automakers The U.S. Commerce Department is pressing Taiwan Semiconductor Manufacturing and other Taiwanese firms to prioritize the needs of American automakers to ease chip shortages in the near term, Commerce Secretary Gina Raimondo said on Tuesday. Raimondo told a Council of the Americas event that longer term, increased investment is needed to produce more semi-conductors in the United States and other critical supply chains need re-shoring, including to allied countries. "We're working hard to see if we can get the Taiwanese and TSMC, which is a big company there, to, you know, prioritize the needs of our auto companies since there's so many American jobs on the line," Raimondo said in response to a question from a General Motors executive. Politics Yahoo Finance 210504 11h19m Twitter CFO: No changes to our thinking on Trump's account Don't expect former president Trump to be popping back up on Twitter with his account anytime soon. Twitter CFO Ned Segal chats with Yahoo Finance about the hot-button issue. Business Bloomberg 210504 11h18m Nissan Follows Renault in Selling $1.4 Billion Daimler Stake (Bloomberg) -- Nissan Motor Co. is selling stock it owns in Daimler AG worth about 1.19 billion euros ($1.4 billion), joining its partner Renault SA in generating funds for turnaround efforts.Nissan is offering about 16.4 million shares through a sale run by BofA Securities and Societe Generale, according to terms obtained by Bloomberg News. Renault shed its Daimler stake in March, bringing in 1.14 billion euros.Like Renault, Nissan is trying to restore profitability and overhaul its portfolio after the 2018 arrest of their long-time leader Carlos Ghosn threw their alliance into disarray. Projects the two companies started with Daimler just over a decade ago were among the endeavors showing signs of stress before Nissan insiders orchestrated the former chairman’s downfall almost three years ago.Several of Ghosn and former Daimler Chairman Dieter Zetsche’s projects to jointly develop and produce vehicles turned into bruising experiences. Mercedes culled the X-Class pickup that was based on the Nissan Navara due to poor sales, and customers mocked the mediocre quality of the small Citan van that shared components with Renault. The collaboration the companies planned for a factory in Aguascalientes, Mexico, also didn’t pan out as initially planned.Ghosn and Zetsche regularly hosted joint press conferences at car shows before Japanese police arrested the former in late 2018 on suspicion of financial misconduct. Zetsche stepped down from his roles at Daimler the following year.Representatives for Nissan and Daimler didn’t immediately comment on the share sale. Daimler still holds 9.17 million shares of Renault, according to data compiled by Bloomberg.(Updates with value of the shares in the headline and first 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. World Reuters 210504 11h12m Canada works on vaccinations and safe tourism designation -minister Canada is working with international partners to develop a standardized vaccine certification for travel and will position itself as a safe destination once the country has reached COVID-19 herd immunity, the tourism minister said on Tuesday. Canada currently has a higher infection rate than the United States as it rolls out vaccines during a third wave. "Clearly as vaccination is being rolled out, we will position ourself as a safe destination," Tourism Minister Melanie Joly said in a telephone interview after attending a virtual meeting with her G20 counterparts earlier in the day. Business Reuters 210504 11h06m FOREX-Dollar climbs as risk appetite fades, after Yellen's comments on rates * Treasury's Yellen says U.S. interest rates may need to rise * Commodity currencies slump against the dollar * Ethereum hits yet another record high * Graphic: World FX rates https://tmsnrt.rs/2RBWI5E (Adds new comments, FX table, updates prices, changes byline, dateline; previous LONDON) By Gertrude Chavez-Dreyfuss NEW YORK, May 4 (Reuters) - The dollar rose to a two-week high on Tuesday, partially unwinding a monthlong decline, as risk appetite faded with a sell-off in stocks and a rally in Treasuries, and after U.S. Treasury Secretary Janet Yellen said interest rates may need to rise to prevent the American economy from overheating. Yellen, in prepared remarks on Tuesday, made the comment as more of U.S. President Joe Biden's economic investment programs come on line. Business Bloomberg 210504 11h06m Bombardier to Exit Alstom Stake With $630 Million Share Sale (Bloomberg) -- Bombardier Inc. is selling its stake in Alstom SA in a deal that would generate proceeds of more than $630 million at current market prices.The offering has gathered enough investor demand to cover the sale, according to terms seen Tuesday by Bloomberg. Price guidance will follow and such accelerated offerings typically come at a discount. After completion of the sale, Bombardier said it expects to have exited its 3.1% stake in Alstom’s common stock.The deal comes on the heels of Bombardier’s sale of its train-making business to Alstom for about $3.6 billion. That transaction included the stake in the French company that Bombardier is selling. Separately, Bombardier has exited its regional-jet business and now focuses on making private planes.The Montreal-based company asked creditors Monday to approve changes to terms on eight bond issues after an unidentified noteholder argued that asset sales including the rail and commercial-aircraft deals violated covenants on debt maturing in 2034.Bombardier fell 2.1% to 93 Canadian cents at 12:42 p.m. in Toronto amid a broad market decline. Alstom was little changed at 45.83 euros at the close in Paris.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. Howell date : 210504 11h16m31s Business Yahoo Finance 210504 11h05m Stock market news live updates: Stocks dip, tech shares renew declines as investors eye more earnings Stocks fell Tuesday after a mixed session a day earlier, with technology stocks leading the way lower as investors awaited the next set of corporate earnings results. Business Bloomberg 210504 11h04m Tech Selloff Sweeps Across Stocks; Dollar Climbs: Markets Wrap (Bloomberg) -- Volatility gripped financial markets as a selloff in some of the world’s largest technology companies dragged down stocks.The S&P 500 came off session lows amid gains in financial and commodity shares, but still headed toward its biggest drop since mid March. Losses in the Nasdaq 100 topped 2.5% as megacaps Apple Inc., Tesla Inc. and Amazon.com Inc. sank. The dollar briefly extended its advance after Treasury Secretary Janet Yellen said rates may have to rise modestly at one point to stop an economic overheating. The remarks come amid worries on whether government spending could eventually spur a surge in inflation.A sharp drop in equity futures earlier Tuesday left traders scrambling for reasons to explain the move. The catalyst was unclear, but investors speculated on military tensions between China and Taiwan, Singapore’s tougher lockdown and Ferrari NV’s decision to postpone financial targets.For several analysts, though, the reason could be simple -- stocks are hovering near-all time highs and have struggled to gain much traction despite a stellar earnings season. The response could be a sign that most of the recovery in profits has already been priced into markets.“We’ve had this spectacular run-up, and I think we’ve seen momentum just run out of steam,” said Fiona Cincotta, senior financial markets analyst at City Index. “Despite earnings being encouraging, they haven’t managed to push those indices higher. Moving out of growth and into cyclicals is the place we’re going to have more movement.”Traders also monitored the latest economic readings, with the U.S. trade deficit widening to a new record in March. Meanwhile, a senior White House economic aide demurred on the question of whether President Joe Biden will nominate Federal Reserve Chair Jerome Powell for a second four-year term, saying the decision on selecting the next central bank chief will come after a thorough “process.”Here are some key events to watch this week:U.S. ADP employment change is due WednesdayChicago Fed President Charles Evans gives a virtual speech at an event hosted by Bard College on Wednesday. Cleveland Fed President Loretta Mester gives a virtual speech to the Boston Economic ClubBank of England rate decision ThursdayThe April U.S. employment report is released on FridayThese are some of the main moves in markets:StocksThe S&P 500 fell 1.2% as of 1:02 p.m. New York timeThe Nasdaq 100 fell 2.7%The Dow Jones Industrial Average fell 0.5%The MSCI World index fell 1.2%CurrenciesThe Bloomberg Dollar Spot Index rose 0.3%The euro fell 0.4% to $1.2017The British pound fell 0.2% to $1.3887The Japanese yen fell 0.2% to 109.28 per dollarBondsThe yield on 10-year Treasuries declined two basis points to 1.58%Germany’s 10-year yield declined three basis points to -0.24%Britain’s 10-year yield declined five basis points to 0.79%CommoditiesWest Texas Intermediate crude rose 1.6% to $66 a barrelGold futures fell 0.9% to $1,776 an ounceFor 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. U.S. Reuters 210504 11h01m Civil society groups urge halt to Barrick's Pueblo Viejo expansion Civil society groups on Tuesday urged Canada's Barrick Gold Corp to halt expansion of its Pueblo Viejo gold mine in the Dominican Republic, citing risks posed by increased mine waste and threats to local communities' rights. Barrick has proposed a $1.3 billion expansion of the processing plant and waste storage facility to tap lower-grade ore and extend mine life through 2040. Pueblo Viejo is located about 100 km northwest of the capital Santo Domingo, and is operated by a joint venture in which Barrick holds 60% and Newmont Corp holds the remainder. Business Reuters 210504 10h57m QUOTES-Stock markets fall, tech sells off Investors are digesting a sharp slide in stocks that’s taken the Nasdaq Composite down more than 2.5% on Tuesday, despite solid earnings from some of the index’s biggest constituents this season. Market participants gave a wide range of reasons for the move, from profit-taking near a market top to concerns that a stimulus-fueled rebound in U.S. growth will peak in coming months. Meanwhile, U.S. Treasury Secretary Janet Yellen, in taped remarks to a virtual event put on by The Atlantic, suggested that interest rates may need to rise to prevent the economy from overheating as more of President Joe Biden's economic investment programs come on line. Business Bloomberg 210504 10h51m Penalty for Being Rated Junk Drops to Lowest Level Since 2007 (Bloomberg) -- For investment-grade companies on the cusp of junk, it might not be so bad on the other side.The additional cost for firms to borrow in the U.S. high-yield market versus high grade narrowed to 197 basis points Monday, the tightest since before the global financial crisis, according to Bloomberg Barclays index data. The spread last dipped below 200 basis points in 2007, the data show.A relentless rally in junk-rated debt is narrowing the gap, as high-yield spreads also hit a pre-crisis tight Monday. Yields dropped to an all-time low as investors pile into riskier assets for higher returns, betting a recovery will boost particularly the most speculative names.Cheap borrowing costs are encouraging a barrage of high-yield issuance, which has broken records in every month this year after setting a new high mark in 2020. It’s especially helping the lowest-rated companies tap the market, with CCC yields dropping 34 basis points to a new low of 5.72%.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. Howell date : 210504 10h45m53s World Reuters 210504 10h38m Britain's IPO pipeline packed despite Deliveroo flop, minister says Deliveroo's poor public debut in March has not put off other companies from listing in London, Britain's financial services minister said on Tuesday. The food delivery company's flotation was supposed to be London's debut of the decade, but the stock plunged 30% on the first day, with some investors shunning the listing, citing concerns about gig-economy working conditions. "I am delighted that Deliveroo chose to list in London," John Glen said in a recorded interview with CSFI think tank made public on Tuesday. Business Bloomberg 210504 10h32m Oil Rises to Seven-Week High With Eyes on Budding Demand Revival (Bloomberg) -- Oil advanced amid optimism that the resumption of economic activity in the U.S. and Europe will underpin demand in some of the world’s largest economies.Futures in New York gained as much as 2.1% on Tuesday, reaching the highest intraday level since mid-March, while gasoline futures jumped as much as 2.8%. The European Union plans to ease curbs for vaccinated travelers this summer, while in the U.S., New York plans to lift most of it virus restrictions this month. That’s offsetting concerns about weaker oil consumption in parts of Asia, including key importer India, where Covid-19 remains rampant.“The loss from India, Brazil and other countries that are suffering aren’t going to be as big compared to the gains we get from tourism in the U.S. and Europe in particular,” said Michael Lynch, president of Strategic Energy & Economic Research. “As long as OPEC+ continues the restraint that they’ve shown, that’s going to keep the market relatively tight.”U.S. crude futures are up more than 30% this year -- amid a broad advance across commodity markets -- as investors bet that the rollout of vaccines will permit a return to pre-pandemic conditions. The world’s 20 major economies are set to back efforts to introduce so-called vaccine passports to boost the beleaguered travel and tourism industry.Follow live updates of tanker tracking figures throughout the day here.The market “is getting increasingly optimistic that an oil demand uptick is getting closer in Europe and the U.S.,” said Louise Dickson, an oil markets analyst at Rystad Energy AS. “The pandemic might be hitting India hard, but in other parts of the world, vaccination campaigns are progressing and should allow key economies to increasingly open up again for both more business and travel.”Crude’s gains on Tuesday were outpaced by those in petroleum products, most notably gasoline. In the U.S., profits to produce the fuel hit the highest intraday level since April 2020 earlier. There are already signs in several countries that drivers are getting back in their cars and retail gasoline prices in the U.S. are at the highest since October 2018.At the same time, cash-market gasoline in New York Harbor rose to a six-week high following the shutdown of a key fuel-making unit at Phillips 66’s Bayway refinery in New Jersey. The refinery’s sole fluid catalytic cracker -- one of the largest in the world -- is expected to be down at least several days for repairs.“Gasoline inventories in the U.S. are well below where they were a year ago and we’ve taken out refinery capacity,” said Peter McNally, global head for industrials, materials and energy at Third Bridge. “We’ve seen the impact on demand as more people get vaccinated, so we’re going to get that tailwind plus seasonality coming later this month.”Meanwhile, OPEC kept its crude production steady in April, ahead of a planned output hike this month. Production fell by 50,000 barrels day, with a setback in Libya largely offset by further gains for Iran.In the U.S., crude stockpiles are expected to have fallen last week, according to a Bloomberg survey, which would be the first decline in inventories in three weeks if confirmed by U.S. government data on Wednesday. The industry-funded American Petroleum Institute releases its storage tally later Tuesday.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. Business Reuters 210504 10h27m Europe's first quarter earnings growth expectations surge further Earnings at Europe's biggest listed companies in the first quarter of 2021 are expected to surge 83.1% from a year earlier, according to Refinitiv I/B/E/S data, as the continent's economy recovers from the downturn caused by the first wave of the coronavirus pandemic a year ago. The data, published on Tuesday with the first quarter earnings season in full swing, would mark the best quarter for European stocks since I/B/E/S records began nine years ago and represents a jump compared to last week's forecast of a 71.3% jump and 61.2% a week before that. The forecasts, which track companies listed on the pan-European STOXX 600 equity index, point to revenues rising 2.2% in the first quarter, compared to 2.5% a week ago. World Reuters 210504 10h15m U.S. trade chief Tai sees 'frank and honest' discussions on North American trade deal U.S. Trade Representative Katherine Tai said on Tuesday that an initial meeting of the U.S.-Mexico-Canada trade agreement's governing body will include "frank and honest" discussions and she will not be afraid to use the agreement's enforcement tools. "I expect my Canadian and Mexican counterparts to be very frank and honest with me about how they feel about U.S. implementation, and I will be just as honest with them about concerns that we have in Mexico in Canada," Tai told a Council of the Americas event. She said the first meeting of the USMCA's Free Trade Commission, which includes the trade ministers of the three member countries, will take place in coming weeks. World Reuters 210504 10h13m UPDATE 1-U.S. and Chinese trade experts among the WTO chief's new deputies The World Trade Organization has again chosen trade experts from China and the United States as deputies for its director-general, maintaining a delicate geopolitical balancing act which also keeps two fractious powers close at hand. Replacing their compatriots are Angela Ellard, an American lawyer and trade expert who has worked at the U.S. Congress, and Zhang Xiangchen, currently vice trade minister and its former WTO ambassador, the WTO said in a statement. Howell date : 210504 10h15m17s U.S. Reuters 210504 10h13m UPDATE 1-White House to shift COVID-19 vaccine to states with more need -report The White House told U.S. states on Tuesday they can no longer carry over unordered doses of their weekly COVID-19 vaccine allocations and that unused doses will instead be shifted to states with greater demand, the Washington Post reported. But White House Coronavirus Task Force Coordinator Jeff Zients told the Washington Post in an interview that the change in allocation reflects the next phase in the White House's efforts to inoculate the population. Representatives for the White House could not be immediately reached for comment on the report. Business Bloomberg 210504 10h05m Yellen Says Spending May Spur ‘Modest’ Interest-Rate Rises (Bloomberg) -- Discover what’s driving the global economy and what it means for policy makers, businesses, investors and you with The New Economy Daily. Sign up hereTreasury Secretary Janet Yellen said interest rates may have to rise modestly to prevent the U.S. economy from overheating due to higher levels of government spending, without specifying a timeframe.“It may be that interest rates will have to rise somewhat to make sure our economy doesn’t overheat,” Yellen said in an interview with the Atlantic recorded Monday that was broadcast on the web on Tuesday. “It could cause some very modest increases in interest rates.”Stocks extended their losses on Tuesday and the dollar briefly touched session highs after Yellen’s remarks. The yield on 10-year Treasuries pared declines.Read Markets Live blog: Yellen Comment Appears to Contradict What She Said Two Days AgoThe comments from Yellen, a former chair of the Federal Reserve, come amid a debate on whether President Joe Biden’s raft of proposed and enacted government spending could spur a surge in price pressures. Administration and Fed officials both have consistently dismissed concerns over accelerating inflation. They’ve argued that price increases expected this year will be largely transitory, and that the central bank has the tools to contain any persistent effects.When Fed officials last issued projections, in March, they forecast no move in interest rates until at least 2024.Net BenefitYellen insisted that the heavy spending Biden is calling for would provide a net benefit to the economy, even if interest rates do go up.“These are investments our economy needs to be competitive and to be productive, and I think our economy will grow faster because of them,” Yellen said.The Biden administration has proposed additional spending packages totaling about $4 trillion on top of the $1.9 trillion it pumped into the economy beginning in March to combat the impact of the Covid-19 pandemic.“This has a demand effect on the economy but really it’s going to have important supply effects on the economy,” Yellen said.(Updates with Treasury yields and additional context starting 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. Business Yahoo Finance 210504 10h05m Yellen: Fed rate hike may be needed to prevent economy from 'overheating' Treasury Secretary Janet Yellen said this week that the Federal Reserve may have to raise interest rates in the future to cool off an economy moving too fast. World Bloomberg 210504 10h02m Colombia’s New Finance Chief Urges Unity as Protests Rage (Bloomberg) -- Discover what’s driving the global economy and what it means for policy makers, businesses, investors and you with The New Economy Daily. Sign up hereColombia’s new finance minister struck a conciliatory tone as violent protests continued across the country, saying he would seek to build consensus around a proposal to shore up the budget without resorting to the types of tax hikes that have stirred the unrest.Jose Manuel Restrepo took the reins of the Colombian economy after his predecessor was forced to resign, and said he wanted to send a message of financial stability as investors sent the peso and government bonds lower. He promised to come up with a new plan that would curb government spending while raising 14 trillion pesos ($3.7 billion) in revenue that won’t rely on broad-based tax increases on goods and public services.“There are some points where a consensus can be reached,” he said in a radio interview Tuesday. What’s needed is “a constructive dialogue, and to understand the importance of the adjustment that Colombia needs.”He spoke as demonstrations raged in major cities and small towns alike, with protesters blocking roads and squaring off with lines of police in riot gear. The number of people out in the street appeared down slightly from previous days, but deadly clashes between protesters and police broke out overnight in the city of Cali and blockages across the country raised fears that food supplies will be affected. The Andean nation was already grappling with the aftermath of its worst economic contraction on record and confronting nearly full hospitals amid a spike in Covid-19 infections.The crisis underscores the deep chasm between rich and poor nations when it comes to providing government relief to offset the effects of the pandemic. While the U.S. and European Union spent trillions of dollars in stimulus with barely a peep from their debt markets, Colombia’s outlays are being closely monitored by ratings companies and bond vigilantes ready to pounce on any fiscal slippage. One of the few Latin American countries that have consistently paid its debts, it is now struggling to rein in its deficit and stave off credit-rating downgrades that could send borrowing costs soaring.While Colombia scrambles to curb its budget deficit, countries like the U.S. and U.K. are forecast to post a second straight year of shortfalls that equal more than 10% of their annual economic output.The peso dropped 1% on Tuesday to 3,840 per dollar, its weakest since the beginning of November, as investors awaited details about the fiscal plan. The Colcap index of stocks added less than 1%, its first increase after four straight days of losses. Benchmark overseas bonds due in 2032 traded slightly lower.Read More: Colombia Trading Like Junk Shows Dilemma Facing Poor NationsRestrepo, 50, a respected economist at home who held the job of trade minister since 2018, took over as finance chief from Alberto Carrasquilla, who stepped down after President Ivan Duque’s decision to withdraw his tax proposal failed to appease protesters. Many demonstrators have also invoked concerns about changes to a health law being discussed in congress, corruption and police brutality. Unions called on workers to continue to take to the streets.“He has a conciliatory tone and that’s what is needed now,” said Andres Pardo, a former economic adviser to Duque who is now chief Latin America market strategist at XP Investments. “The market remains focused on the tax reform and waters are still muddied, but I’m optimistic with this new minister.”Virtually the whole Colombian congress, including Duque’s own Democratic Center party, opposed the government’s initial tax bill because it raised levies on the middle class before a presidential election next year. Carrasquilla said in a statement late on Monday that his continued presence in the government would “make it difficult to build the necessary consensus quickly and efficiently.”Colombia’s fiscal deficit is set to widen to more than 8.5% of gross domestic product this year, from 2.5% in 2019, before the pandemic. Many Latin American nations are also grappling with deficits that ballooned during the pandemic, but unlike Brazil, Mexico, Chile and Peru, Colombia’s deficit will widen rather than narrow this year, according to forecasts from the International Monetary Fund.The amount Restrepo is proposing to raise -- equal to about 1.1% of GDP-- meets the threshold analysts have said Colombia needs to avoid a downgrade. UBS Global Wealth Management and JPMorgan Chase & Co. have said anything below 1% of GDP isn’t enough. The country has had an investment-grade credit rating since 2011, one of the few in the region with that distinction.“We expect Congress to eventually approve a watered down tax reform bill” that will boost net revenue by no more than 1% of GDP, Goldman Sachs economist Alberto Ramos wrote in a report, adding that the result will probably be a tax mix that that is less growth and investment friendly than the original proposal.The fact that Restrepo comes from an academic and technical background rather than the world of politics puts him in a better position to negotiate with different sectors over the new tax proposal, said Andres Saenz, a Bogota-based associate director at Control Risks.The relationship he developed with the powerful private sector while serving as trade minister could be key.“Having someone like Restrepo will help the government manage expectations with that side of the table,” he said.(Adds deficit comparison in sixth paragraph. Updates photos.)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. Business Yahoo Finance Video 210504 09h56m Sonder to go public in $2.2 billion SPAC deal Sonder has agreed to go public in a $2.2 billion SPAC merger deal. Sonder Inc. Co-Founder & CEO Francis Davidson joins Yahoo Finance Live to discuss. Howell date : 210504 09h44m41s Politics Reuters 210504 09h36m Treasury's Yellen: Biden programs to make 'big difference' to inequality Republicans have criticized the proposed tax increases Biden expects to use to pay for his proposals, but Yellen, in taped remarks to a virtual event put on by The Atlantic, said the effect of a change in marginal tax rates is "much less powerful in influencing growth in either direction," adding that her aim is to make sure government deficits "stay small and manageable." Business Bloomberg 210504 09h34m Stocks Slump Amid Tech Rout, Yellen’s Rate Remarks: Markets Wrap (Bloomberg) -- Volatility gripped financial markets as a selloff in some of the world’s largest technology companies sent stocks slumping. The dollar briefly touched session highs after Treasury Secretary Janet Yellen said rates may have to rise at one point to stop an economic overheating.The S&P 500 headed toward its worst day since mid March, with all major groups in the red, while the Nasdaq 100 sank more than 2% amid a rout in megacaps Apple Inc., Tesla Inc. and Amazon.com Inc. Twenty out of the 30 blue chips in the Dow Jones Industrial Average retreated. The Cboe Volatility Index known as VIX surged.A sharp drop in equity futures earlier Tuesday left traders scrambling for reasons to explain the move. The catalyst was unclear, but investors speculated on military tensions between China and Taiwan, Singapore’s tougher lockdown and Ferrari NV’s decision to postpone financial targets.For several analysts, though, the reason could be simple -- stocks are hovering near-all time highs and have struggled to gain much traction despite a stellar earnings season. The response could be a sign that most of the recovery in profits has already been priced into markets.“We’ve had this spectacular run-up, and I think we’ve seen momentum just run out of steam,” said Fiona Cincotta, senior financial markets analyst at City Index. “Despite earnings being encouraging, they haven’t managed to push those indices higher. Moving out of growth and into cyclicals is the place we’re going to have more movement.”Traders also monitored the latest economic readings, with the U.S. trade deficit widening to a new record in March. Meanwhile, a senior White House economic aide demurred on the question of whether President Joe Biden will nominate Federal Reserve Chair Jerome Powell for a second four-year term, saying the decision on selecting the next central bank chief will come after a thorough “process.”Here are some key events to watch this week:U.S. ADP employment change is due WednesdayChicago Fed President Charles Evans gives a virtual speech at an event hosted by Bard College on Wednesday. Cleveland Fed President Loretta Mester gives a virtual speech to the Boston Economic ClubBank of England rate decision ThursdayThe April U.S. employment report is released on FridayThese are some of the main moves in markets:StocksThe S&P 500 fell 1.2% as of 11:33 a.m. New York timeThe Nasdaq 100 fell 2.4%The Dow Jones Industrial Average fell 0.7%The Stoxx Europe 600 fell 1.5%The MSCI World index fell 1.2%CurrenciesThe Bloomberg Dollar Spot Index rose 0.3%The euro fell 0.4% to $1.2017The British pound fell 0.3% to $1.3874The Japanese yen fell 0.2% to 109.32 per dollarBondsThe yield on 10-year Treasuries declined one basis point to 1.59%Germany’s 10-year yield declined three basis points to -0.24%Britain’s 10-year yield declined five basis points to 0.79%CommoditiesWest Texas Intermediate crude rose 1.6% to $66 a barrelGold futures fell 0.5% to $1,783 an ounceFor 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. World Bloomberg 210504 09h28m Colombia’s New Finance Chief Urges Compromise as Protests Rage (Bloomberg) -- Discover what’s driving the global economy and what it means for policy makers, businesses, investors and you with The New Economy Daily. Sign up hereColombia’s new finance minister struck a conciliatory tone as violent protests continued across the country, saying he would seek to build consensus around a proposal to shore up the budget without resorting to the types of tax hikes that have stirred the unrest.Jose Manuel Restrepo took the reins of the Colombian economy after his predecessor was forced to resign, and said he wanted to send a message of financial stability as investors sent the peso and government bonds lower. He promised to come up with a new plan that would curb government spending while raising 14 trillion pesos ($3.7 billion) in revenue that won’t rely on broad-based tax increases on goods and public services.“There are some points where a consensus can be reached,” he said in a radio interview Tuesday. What’s needed is “a constructive dialogue, and to understand the importance of the adjustment that Colombia needs.”He spoke as demonstrations raged in major cities and small towns alike, with protesters blocking roads and squaring off with lines of police in riot gear. The number of people out in the street appeared down slightly from previous days, but deadly clashes between protesters and police broke out overnight in the city of Cali and blockages across the country raised fears that food supplies will be affected. The Andean nation was already grappling with the aftermath of its worst economic contraction on record and confronting nearly full hospitals amid a spike in Covid-19 infections.The crisis underscores the deep chasm between rich and poor nations when it comes to providing government relief to offset the effects of the pandemic. While the U.S. and European Union spent trillions of dollars in stimulus with barely a peep from their debt markets, Colombia’s outlays are being closely monitored by ratings companies and bond vigilantes ready to pounce on any fiscal slippage. One of the few Latin American countries that have consistently paid its debts, it is now struggling to rein in its deficit and stave off credit-rating downgrades that could send borrowing costs soaring.Colombia’s peso dropped 0.9% on Tuesday to 3,837 per dollar, its weakest since the beginning of November, as investors awaited details about the fiscal plan. The Colcap index of stocks added less than 1%, its first increase after four straight days of losses. Benchmark overseas bonds due in 2032 traded slightly lower.Read More: Colombia Trading Like Junk Shows Dilemma Facing Poor NationsRestrepo, 50, a respected economist at home who held the job of trade minister since 2018, took over as finance chief from Alberto Carrasquilla, who stepped down after President Ivan Duque’s decision to withdraw his tax proposal failed to appease protesters. Many demonstrators have also invoked concerns about changes to a health law being discussed in congress, corruption and police brutality. Unions called on workers to continue to take to the streets.“He has a conciliatory tone and that’s what is needed now,” said Andres Pardo, a former economic adviser to Duque who is now chief Latin America market strategist at XP Investments. “The market remains focused on the tax reform and waters are still muddied, but I’m optimistic with this new minister.”Virtually the whole Colombian congress, including Duque’s own Democratic Center party, opposed the government’s initial tax bill because it raised levies on the middle class before a presidential election next year. Carrasquilla said in a statement late on Monday that his continued presence in the government would “make it difficult to build the necessary consensus quickly and efficiently.”Colombia’s fiscal deficit is set to widen to more than 8.5% of gross domestic product this year, from 2.5% in 2019, before the pandemic. Many Latin American nations are also grappling with deficits that ballooned during the pandemic, but unlike Brazil, Mexico, Chile and Peru, Colombia’s deficit will widen rather than narrow this year, according to forecasts from the International Monetary Fund.The amount Restrepo is proposing to raise -- equal to about 1.1% of GDP-- meets the threshold analysts have said Colombia needs to avoid a downgrade. UBS Global Wealth Management and JPMorgan Chase & Co. have said anything below 1% of GDP isn’t enough. The country has had an investment-grade credit rating since 2011, one of the few in the region with that distinction.“We expect Congress to eventually approve a watered down tax reform bill” that will boost net revenue by no more than 1% of GDP, Goldman Sachs economist Alberto Ramos wrote in a report, adding that the result will probably be a tax mix that that is less growth and investment friendly than the original proposal.The fact that Restrepo comes from an academic and technical background rather than the world of politics puts him in a better position to negotiate with different sectors over the new tax proposal, said Andres Saenz, a Bogota-based associate director at Control Risks.The relationship he developed with the powerful private sector while serving as trade minister could be key.“Having someone like Restrepo will help the government manage expectations with that side of the table,” 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. Business Reuters 210504 09h28m Stellantis to hit emissions target without Tesla's help, says CEO Stellantis was formed through the merger of France's PSA and Italy's FCA, which spent about 2 billion euros ($2.40 billion) to buy European and U.S. CO2 credits from electric vehicle maker Tesla over the 2019-2021 period. "With the electrical technology that PSA brought to Stellantis, we will autonomously meet carbon dioxide emission regulations as early as this year," Stellantis boss Carlos Tavares said in the interview with French weekly Le Point. "Thus, we will not need to call on European CO2 credits and FCA will no longer have to pool with Tesla or anyone." Business Reuters 210504 09h28m General Electric shareholders reject CEO Larry Culp's pay A majority of shareholders at the General Electric Co annual general meeting rejected the pay packages for named executive officers, including CEO Larry Culp, whose compensation for 2020 tallied $73.2 million. According to preliminary results, 57.7% of shareholders rejected General Electric's pay packages, a strong rebuke to executives of the industrial company, which is in the middle of a challenging turnaround. "While we are disappointed with the preliminary results of the vote, we value and respect the views of the shareholders," the company said after the vote. World Bloomberg 210504 09h27m Chicago Auto Show Returning; Singapore Cracks Down: Virus Update (Bloomberg) -- U.K. Prime Minister Boris Johnson said the country is on course to scrap lockdown rules, and Denmark will ease curbs this week. Singapore is cracking down in response to a flareup linked to the variant first identified in India, a setback for one of the most successful virus-containment regimes.India was criticized for a “lack of leadership” as its prime minister resists pressure to lock down. The country’s cricket regulators suspended the Premier League after players tested positive.Goldman Sachs Group Inc. plans for U.S. employees to return to offices by mid-June, while Vanguard Group prefers a hybrid model. The European Union’s drug regulator started a review of a vaccine from China, and Pfizer Inc. increased the forecast for sales of its shot this year. The world’s 20 major economies threw their weight behind efforts to introduce so-called vaccine passports.Key DevelopmentsGlobal Tracker: Cases top 153.6 million; deaths exceed 3.21 millionVaccine Tracker: More than 1.17 billion doses have been givenVaccinations decline across U.S., spurring search for holdoutsIt’s not just India. New virus waves deluge developing countriesBank bosses want a return to office. Underlings aren’t so sureWhat are vaccine passports and how would they work?: QuickTakeSubscribe to a daily update on the virus from Bloomberg’s Prognosis team here. Click CVID on the terminal for global data on cases and deaths.Chicago Auto Show to Return in July (11:10 a.m. NY)The Chicago Auto Show will be held at McCormick Place in July, marking the first large convention to be held in the city and the state of Illinois since the Covid-19 pandemic began more than a year ago, officials said Tuesday.The reopening of the convention center “is a critical step toward our state’s economic recovery,” Governor J.B. Pritzker said during a press conference at the site on Tuesday. The auto show, on the biggest in the U.S., will be held from July 15 to 19 with safety measures in place, such as limiting crowd size.CVS Boosts Forecast on Covid Shots (10:20 a.m. NY)CVS Health Corp. raised its full-year forecast as Covid-19 vaccines and testing helped boost first-quarter results and offset a weak cold and flu season.The health-care company gave 17 million Covid shots at long-term care facilities and at its pharmacies through April. CVS is now immunizing in about 8,300 locations in 49 states, Chief Executive Officer Karen Lynch said Tuesday on a call with analysts.Leading Nations Set to Back Vaccine Passports (8:28 a.m. NY)The world’s 20 major economies threw their weight behind efforts to introduce so-called vaccine passports to boost travel and tourism, stressing that a resumption is crucial for a global economic recovery, according to a draft statement seen by Bloomberg.Tourism ministers from the Group of 20 nations, who met on Tuesday, said the outlook for a sector devastated by lockdowns remains “highly uncertain,” according to the draft, which is subject to change.U.K. Has No Plan to Speed Lockdown Easing (7:56 a.m. NY)“We’ve got no plans to deviate form the earliest dates set out in the roadmap” for unlocking the economy, Prime Minister Boris Johnson’s spokesman told reporters.UAE Extends Suspension of India Flights (7:46 a.m. NY)The United Arab Emirates extended the suspension of flights from India. The UAE, home to Dubai-based Emirates and Abu Dhabi-based Etihad Airways, had halted the flights until May 14. A new end date hasn’t yet been announced.Singapore Tightens Rules (6:57 a.m. NY)Singapore is limiting social gatherings and tightening border curbs as it reacts aggressively to a flareup linked to the new variant first identified in India.From May 8 to May 30, group gatherings must be cut from a maximum of eight to five, while daily visitors per household will be similarly capped, the Ministry of Health said in a statement. At workplaces, no more than 50% of staff who are able to work from home can return to offices.Pfizer Boosts Vaccine Revenue Forecast (6:46 a.m. NY)Pfizer Inc. boosted its full-year forecast for sales of its vaccine produced with BioNTech SE to approximately $26 billion, from about $15 billion previously. The guidance includes 1.6 billion doses expected to be delivered this year under contracts that have been signed through mid-April, and it may be adjusted as additional contracts are executed, Pfizer said in its release.“We also are in ongoing discussions with multiple countries around the world about their needs, and we expect these discussions to lead to additional supply agreements,” CEO Albert Bourla said in prepared remarks.Moderna Tests Lower-Dose Vaccines (6:02 a.m. NY)Moderna Inc. is testing vaccines with lower doses to try to boost supply, and it may also need to expand work on boosters to cover for more variants, Chairman Noubar Afeyan said in an interview with Bloomberg Television. He said he expects the coronavirus may become endemic like seasonal flu, and that vaccinating children seems like a good approach given Covid’s after-effects.Vietnam Extends Quarantine Period (5:41 p.m. HK)Vietnam is keeping people in quarantine centers longer than the 14-day period amid the emergence of cases being traced to overseas travelers.Provinces were instructed by the health ministry to “temporarily keep” in quarantine until further notice people who have completed the 14-day isolation, according to a post on the government website. Three patients in Vinh Phuc were found to be carrying a virus variant first detected in India, the health ministry said.Malaysia Imposes Curbs in Richest State (5:32 p.m. HK)Malaysia tightened restrictions in six districts in Selangor, the country’s richest state, in a bid to contain a rise in infections. The so-called movement control order will be in place from May 6 through May 17, Defense Minister Ismail Sabri Yaakob said in a briefing. While social gatherings will be banned in the six areas, economic activities will be allowed.EU Regulator Starts Rolling Review of Sinovac (5:08 p.m. HK)The European Medicines Agency said it started a rolling review of the vaccine from China’s Sinovac Life Sciences Co. to test compliance with safety and quality standards, the first major step in gaining approval for use in the European Union.The EMA started a rolling review of Russia’s Sputnik V vaccine in March. Its human medicines committee, CHMP, said the decision to review the Sinovac shot was based on studies and data that suggest the vaccine triggers the production of antibodies that target SARS-CoV-2, according to a statement.Japan PM Struggles Over Decision (4:54 p.m. HK)Japanese Prime Minister Yoshihide Suga is reportedly struggling with the decision on whether to end or extend the coronavirus state of emergency for Tokyo and greater Osaka.Suga told infectious disease expert and cabinet adviser Nobuhiko Okabe that the decision over whether to lift the emergency on May 11 will be “tough,” local broadcaster FNN reported, citing Okabe’s remarks to reporters after a meeting with Suga on Tuesday.Osaka Governor Hirofumi Yoshimura indicated the prefecture may seek an extension to its current state of emergency due to the number of new cases and pressure on the medical system.India Cricket League Suspended (4:11 p.m. HK)India’s cricketing regulator suspended the Premier League after multiple players contracted Covid-19, bringing a temporary halt to a tournament that has divided the nation on whether it was appropriate to play sport as thousands of citizens die each day.U.K. to Gradually Wind Back Curbs (2:45 p.m. Hong Kong)British Prime Minister Boris Johnson said the U.K. is on course to gradually scrap lockdown rules over the next seven weeks, hailing the U.K.’s successful vaccine rollout ahead of key elections this week.Johnson said the pandemic data was likely to allow people in England to stay overnight with friends or relations, with indoor hospitality able to reopen from May 17. Remaining social distancing rules are also likely to be canceled from June 21, though he warned that international travel will need to be carefully monitored after May 17.Rajan Slams India’s Leadership (12:55 p.m. Hong Kong)India today reported more than 357,000 new infections, bringing the total official tally to more than 20 million cases, and an additional 3,449 deaths. The tally comes as Premier Modi continues to see lockdowns as the “last option” despite a growing domestic and international chorus calling for action.The wave of infections in India has revealed complacency after last year’s first wave, as well as a “lack of foresight, a lack of leadership,” said Raghuram Rajan, former governor of the country’s central bank.“If you were careful, if you were cautious, you had to recognize that it wasn’t done yet,” Rajan said in a Bloomberg Television interview. “Anybody paying attention to what was happening in the rest of the world, in Brazil for example, should have recognized the virus does come back and potentially in more virulent forms.Denmark Eases Curbs, Drops J&J (12:30 p.m. Hong Kong)Denmark will ease more restrictions this week as the infection rate has remained stable in the Nordic country, the government said. All children through 8th grade will return to schools full-time, while cinemas, theaters and gyms will also reopen.Denmark also won’t use J&J’s vaccine due to concern about the risk of blood clots, the Danish Health Authority said. The move comes less than a month after Denmark became the first European Union member to drop AstraZeneca Plc for similar reasons. Both shots are used in many other countries.Denmark had pre-ordered about 7 million vaccine shots from J&J, more than from any other producer, so the decision will delay the national vaccine rollout by four weeks.Hong Kong Reviews Worker Decision (11:35 a.m. Hong Kong)Hong Kong is reviewing a decision to make vaccinations mandatory for foreign domestic workers after a wave of criticism, Chief Executive Carrie Lam said.“After listening to voices in the society, I have requested the Labour and Welfare Bureau to review the justification, feasibility, and discuss with experts including consulates of relevant countries where the foreign domestic helpers mainly come from.”The decision had led to an outcry from officials in the Philippines, home to many such workers, and was branded “very discriminatory” by Cynthia Tellez, head of the Mission for Migrant Workers.Mexico Sees Slower Rise in Toll (11:00 a.m. Hong Kong)The death toll of the Covid-19 pandemic is easing in Mexico, where daily fatalities dropped below 100 for the first time in a year this week, according to official data from the Health Ministry.The country reported 112 new Covid-19 deaths from the virus Monday, bringing the total to 217,345. On Sunday, Mexico posted 94 deaths, the least since May 3, 2020. While Mexico normally registers fewer fatalities at the start of the week, the seven-day average has been steadily dropping; during the winter, Mexico regularly reported more than 1,000 victims a day from the virus, with a high of 1,803 on Jan. 21.India to Get 220 Million Serum Shots (9:55 a.m. Hong Kong)Serum Institute of India, the world’s largest vaccine maker, will deliver 220 million doses to federal and state governments over the next few months. The central government will get 110 million of those doses of Covishield, the manufacturer said.“Vaccine manufacturing is a specialized process, it’s therefore not possible to ramp up production overnight,” CEO Adar Poonawalla said. Covering all of India’s 1.4 billion people is “not an easy task.”Earlier, Bloomberg News reported that the central government hasn’t placed an order larger than 110 million doses since sales started in December, citing a person familiar with the matter. The lack of a larger central stockpile, coupled with a devastating second wave which saw over 400,000 new daily cases on Saturday, is now making local state governments scramble and compete with one another in placing orders after Delhi turned over the responsibility of procuring vaccines to them last month.Australian Backlash Grows Over Ban (8:30 a.m. Hong Kong)Critics of Prime Minister Scott Morrison’s decision to ban returning Australians from virus-ravaged India now include lawmakers from his own Liberal-National coalition government.Fiona Martin told the Guardian that her government’s weekend announcement that Australian citizens in India who try to return home would be liable for five years in prison and fines of about $50,000 was “heavy-handed”. Fellow government lawmaker Dave Sharma said of the ban, which is in place until at least May 15: “There is little doubt this is an extreme measure and that it is causing significant hardship to the Australian Indian community.”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. Business Bloomberg 210504 09h22m Crypto Mania Sends Doge Soaring, Crashes Robinhood Token Trading (Bloomberg) -- Animal spirits are alive and well in the cryptocurrency world, with the frenzy sending Dogecoin surging as much as 50% again and crashing Robinhood’s trading app.Other so-called altcoins also took off, with Dash spiking as much as 14% and Ethereum Classic jumping more than 30%. In the world of DeFi, tokens such as Force DAO and Tierion surged more than 1,000% on Tuesday, according to CoinMarketCap.com data. Meanwhile, Robinhood said it is experiencing issues with crypto trading and is working to resolve them as soon as possible, according to its status update page.“You have money looking for a home and this is one of those areas of the market where there is speculation happening, there is significant appreciation happening in a short period of time,” Chad Oviatt, director of investment management at Huntington Private Bank. “You get that excitement there.”The rallies defied easy explanation and continued a trend that’s seen the value of all digital tokens surge past $2.25 trillion. Doge, created as a joke in 2013, has been used in marketing gimmicks, the latest by the Oakland A’s baseball team, which offered two seats to games this week for 100 Dogecoin. The Gemini crypto exchange backed by Tyler and Cameron Winklevoss said it now supports Doge, and will soon enable trading of it.Dogecoin’s red-hot advance from around 0.002 cents a year ago -- when it was worth about $300 million -- has captured the interest of many on Wall Street. It’s even caught the attention of the Federal Reserve -- the central bank’s chairman last week answered “some of the asset prices are high” when asked if things like GameStop Corp.’s and Dogecoin’s supercharged rallies created threats to financial stability.As a sign of Dogecoin’s rising popularity, the Robinhood app is among the top 10 downloads at the Apple App Store. Meanwhile, Coinbase Global, the largest U.S. crypto exchange, doesn’t offer Doge trading -- its shares are down more than 5% Tuesday, on track for the lowest close since its market debut last month.“It’s pretty amazing that something that started out as a joke has become so popular,” said Matt Maley, chief market strategist for Miller Tabak + Co.Though interest in digital assets has picked up in recent months as more traditional firms who were long hesitant to the crypto space warm up to cryptocurrencies, it’s alternative coins that have captured the most attention in recent days. Bitcoin has taken a backseat following record-setting rallies from Ether and Doge, wrote Edward Moya, senior market analyst at Oanda.“The Dogecoin bubble should have popped by now, but institutional interest is trying to take advantage of this momentum and that could support another push higher,” he said in a note. “Dogecoin is surging because many cryptocurrency traders do not want to miss out on any buzz that stems from Elon Musk’s hosting of Saturday Night Live.”Meanwhile, many -- including famed crypto investor Mike Novogratz -- have warned that the rallies could be unsustainable. Novogratz, chief executive officer of Galaxy Digital Holdings, said recently he’d be “very, very worried” were one of his friends to invest in Doge.“It seems that investors are careening from one hot dot to another, like a pinball game,” said Mike Bailey, director of research at FBB Capital Partners. “My sense is this speculative wave will suffer the same fate as the GME and other Robinhood ‘flash-in-the-pan’ stocks. Cryptocurrencies may have become a new asset class, like precious metals, but surges such as these seem unsustainable.”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. Business Yahoo Finance 210504 09h21m How record-high lumber prices are making new homes less affordable New home buyers are getting priced out of the market thanks to surging input prices and demand Howell date : 210504 09h14m03s World Reuters 210504 09h10m UPDATE 1-Merkel expects climate change law to go to cabinet in coming week - sources Chancellor Angela Merkel expects a reform of Germany's climate change law to go to cabinet in the coming week after the constitutional court ordered her government to tighten the legislation, two sources told Reuters on Tuesday. Last week, Germany's constitutional court said the government had failed to set out how it would bring carbon emissions down beyond 2030 to almost zero by 2050, and that this was unfairly burdening future generations. The 2019 law, agreed between Merkel's conservatives and their Social Democrat (SPD) coalition partners after much wrangling, includes a commitment to reduce CO2 emissions by at least 55 percent by 2030 from 1990 levels. Business Reuters 210504 09h10m Low depreciation, higher rates give U.S. car rental firms rare perfect script When Rob Ferretti of car rental firm Gothamdreamcars looked up the selling price for a 2018 Mercedes-Benz G-Class SUV, part of his luxury 25-vehicle fleet, he was elated it could fetch over $130,000 - nearly the same price paid three years ago. It is a very good time for car rental companies. A very rare combination of low depreciation costs on existing fleets, higher rates and a global shortage of semiconductors that has squeezed new car production, pushed trade-in prices for older vehicles to record highs in March. Politics Reuters 210504 09h00m USTR Tai says recovery depends on addressing global vaccine inequity U.S. Trade Representative Katherine Tai said on Tuesday that making vaccines more widely available throughout the world is needed to end the coronavirus pandemic and foster economic recovery. In remarks prepared for delivery to a Council of the Americas conference, Tai said the world has made real strides toward ending the pandemic, but a lot of work lies ahead. Business Yahoo Finance Video 210504 08h55m ZoomInfo CEO on outlook: We expect 'a lot of growth' in coming years ZoomInfo CEO Co-Founder and CEO Henry Schuck joins Yahoo Finance Live to discuss the company’s latest financial results and outlook for the tech industry in a post-pandemic world. Business Yahoo Finance 210504 08h54m Stock market news live updates: Stocks dip, tech shares renew declines as investors eye more earnings Stocks fell Tuesday after a mixed session a day earlier, with technology stocks leading the way lower as investors awaited the next set of corporate earnings results. Howell date : 210504 08h43m27s Business Bloomberg 210504 08h35m CVS Raises View as Covid Shots, Tests Offset Weak Flu Season (Bloomberg) -- CVS Health Corp. raised its full-year forecast as Covid-19 vaccines and testing helped boost first-quarter results and offset a weak cold and flu season.The health-care company gave 17 million Covid shots at long-term care facilities and at its pharmacies through April. CVS is now immunizing in about 8,300 locations in 49 states, Chief Executive Officer Karen Lynch said Tuesday on a call with analysts.With about 9,900 locations nationwide, CVS has administered some 23 million virus tests, including 9 million in the first quarter. Vaccines and testing are already attracting foot traffic, company executives said, and about 9% of new customers who received a test through CVS filled a new prescription with the pharmacy.But the benefits won’t last forever. Demand for shots has already slipped about 30%, CVS Chief Financial Officer Eva Boratto said. That’s consistent with a national drop-off in interest, with those most eager already immunized. CVS now expects Covid shots to contribute 2% to overall volume growth, at the low end of the 2% to 3% range it originally expected.Still, CVS says the pandemic has presented opportunities for the company to connect with new customers.“Rising to meet the challenge of Covid-19 has advanced the transformation of the health-care industry,” Lynch said. “For CVS Health, the chance to serve our nation at such a critical time has further proven the value of our strategy.”Forecast, ResultsAdjusted net income for 2021 will be $7.56 to $7.68 a share, CVS said in a statement, up from an earlier range of $7.39 to $7.55. Adjusted earnings were $2.04 a share, beating the $1.71 expected by Wall Street analysts. Revenue of $69.1 billion also exceeded analysts’ average estimate.CVS rose as much as 3.9% as of 10:29 a.m. in New York, the most intraday since Dec. 3. Through Monday’s close, the stock had gained 14% this year.The boost from tests and vaccines helped offset some of the challenges facing CVS’s retail business. Sales in the front of the store, where drugstore items are sold, slid 11% year-over year. A weak cough, cold and flu season, coupled with the pandemic’s contagion precautions, kept some customers out of its stores.Both CVS’s pharmacy-benefits manager Caremark and its health insurer Aetna posted year-over-year increases in revenue. CVS, which acquired Aetna in 2018, is trying to combine its pharmacy and insurance benefits with its drugstores.Health Hubs, or health-centric stores, are a key piece of that effort. CVS opened about 250 new Health Hubs in the quarter, bringing the total to about 800, Lynch said. CVS expects to have about 1,000 by the end of the year, she said.(Updates with vaccination outlook 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. Business Bloomberg 210504 08h25m Pfizer Sees $26 Billion From Vaccine, With Big Potential Ahead (Bloomberg) -- Pfizer Inc. laid out a plan to turn its Covid-19 vaccine into a long-term business, clinching supply agreements that will yield $26 billion in sales this year while expanding the shot to children and developing new formulations that can combat variants and be stored more easily.The drugmaker’s revenue forecast was an increase from $15 billion, a reflection of strong demand worldwide for a return to normalcy. Pfizer said it now expects to deliver 1.6 billion doses this year under contracts signed as of mid-April, with half the profits going to partner BioNTech SE.The company will add $500 million to its research and development spending this year to invest in Covid-19 treatments and other vaccines using the cutting-edge messenger RNA technology. That investment comes as Chief Executive Officer Albert Bourla bets Covid-19 will become endemic, requiring people to get regular shots for years to come.“Based on what we’ve seen, we believe that a durable demand for our Covid-19 vaccine -– similar to that of the flu vaccines –- is a likely outcome,” Bourla said in remarks prepared for a Tuesday analyst call.Shares of Pfizer were up less than 1% to $40.04 at 10:24 a.m. in New York trading. Through the close of trading on Monday, the drugmaker had gained 8.2% this year.In the first quarter, the BNT162b2 Covid-19 vaccine drew $3.5 billion in sales, based on deliveries to more than 50 countries, the New York-based company said in its statement Tuesday. “We also are in ongoing discussions with multiple countries around the world about their needs,” Bourla said, “and we expect these discussions to lead to additional supply agreements.”Meanwhile, the vaccine partners are studying their shot in children ages 6 months to 11 years old. Pfizer expects to seek an emergency-use authorization for two cohorts (age 2 to 5, and 5 to 11) in September, and for those six months to 2 years in the fourth quarter. Clearance is expected imminently for those 12 to 15.Next-Generation ShotBourla said Pfizer is testing a third dose of the existing formulation of its Covid shot to determine whether a booster provides protection against SARS-CoV-2 virus variants currently in circulation.The company has begun evaluating an updated formulation that encodes the spike protein of the variant first identified in South Africa. “This study is designed to establish a regulatory pathway to update the current vaccine to address any future variant of potential concern in approximately 100 days,” Bourla said.Pfizer expects immunogenicity data for both studies in early July. That month, or in early August, the company will also report safety data from an ongoing study of the vaccine in pregnant women.Improving DeliveryAs the drug giant seeks to expand the vaccine’s use to younger populations, test third-dose boosters, and develop reformulated shots that combat variants, it’s also aiming to improve delivery.On Friday, Pfizer approached U.S. regulators with data that would support the vaccine being stored at standard refrigerator temperatures for as long as four weeks. It’s also working on a new formulation that could be stored in a refrigerator for 10 weeks, and as long as six months at -50° to -70° centigrade. Bourla said he expects data from this formulation in August.Separately, Pfizer is testing two antiviral candidates -- one drug given intravenously, one pill -- to treat patients who have contracted Covid. The former will launch into late-stage studies in May, while the latter will kick start in July.Altogether, Pfizer is boosting its full-year guidance for adjusted research and development expenses in a range of $9.8 billion to $10.3 billion “to incorporate anticipated spending on incremental Covid-19 related programs and other mRNA-based projects that are not part of the BioNTech collaboration,” Chief Financial Officer Frank D’Amelio said in prepared remarks.Pfizer and BioNTech are splitting R&D costs related to their vaccine.2022 ProductionPfizer and BioNTech will have the capacity to produce at least 3 billion doses in 2022. The companies have already made progress in securing vaccine contracts into the future.Pfizer has signed a supply agreement with Israel to provide enough Covid shots to protect every eligible citizen in 2022, Bourla said, and with Canada to supply as many as 125 million doses in 2022 and 2023, with options of 60 million additional doses in 2024.But some on Wall Street remain skeptical that the Pfizer-BioNTech partnership can maintain high demand for its vaccine well into the future.“Sales are clearly exceeding expectations, and this trend likely continues into 2022,” said JPMorgan analyst Chris Schott in a note to investors. “However, these sales are unlikely to be sustainable anywhere near current levels longer-term.”Beyond CovidPfizer’s foray into messenger RNA, the new technology that’s been validated in the pandemic, goes well beyond its Covid vaccine, according to Bourla.The company will move two mRNA flu shots into clinical trials come the third quarter, and will also explore using the technology to address other infectious diseases, cancers and genetic disease.Excluding the vaccine, Pfizer’s core drug business showed significant growth, leading it to raise revenue guidance specific to that portfolio by $200 million for the year. The results were stronger than some rivals who saw sales suffer in the first quarter after a new surge in U.S. virus cases.Overall, revenue in the quarter was $14.58 billion, stronger than the $13.62 billion that analysts had expected on average, according to data compiled by Bloomberg. First-quarter adjusted earnings per share were 93 cents, up 47% from 63 cents a year ago.Blood thinner Eliquis sales grew 25% year-over-year to $1.65 billion, topping Wall Street estimates. Breast cancer drug Ibrance and its Prevnar vaccine franchise, however, underperformed analysts’ expectations.(Updates throughout)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. Business Reuters 210504 08h24m US STOCKS-Nasdaq tumbles as investors dump tech megacaps The Nasdaq index fell more than 2% on Tuesday as steep declines in megacap growth stocks led Wall Street below record trading levels, with investors seeking shelter in more defensive parts of the market. Highly valued technology companies including Microsoft Corp , Alphabet Inc, Apple Inc, Amazon.com Inc and Facebook Inc fell between 0.6% and 2.4%. Business Reuters 210504 08h23m CANADA FX DEBT-Canadian dollar slips as trade balance swings to surprise deficit * Canadian dollar weakens 0.3% against the greenback * Canada posts a C$1.1 billion trade deficit in March * Price of U.S. oil rises 1.2% * Canada's 10-year yield was unchanged at 1.522% TORONTO, May 4 (Reuters) - The Canadian dollar weakened against its U.S. counterpart on Tuesday as the greenback broadly climbed and data showed Canada's trade balance swinging to a surprise deficit in March, with the loonie pulling back from a recent 3-year high. Canada's trade deficit was C$1.1 billion in March, Statistics Canada said. World Bloomberg 210504 08h22m Pfizer’s Vaccine Windfall; Singapore Cracks Down: Virus Update (Bloomberg) -- U.K. Prime Minister Boris Johnson said the country is on course to scrap lockdown rules, and Denmark will ease curbs this week. Singapore is cracking down in response to a flareup linked to the variant first identified in India, a setback for one of the most successful virus-containment regimes.India was criticized for a “lack of leadership” as its prime minister resists pressure to lock down. The country’s cricket regulators suspended the Premier League after players tested positive.Goldman Sachs Group Inc. plans for U.S. employees to return to offices by mid-June, while Vanguard Group prefers a hybrid model. The European Union’s drug regulator started a review of a vaccine from China, and Pfizer Inc. increased the forecast for sales of its shot this year. The world’s 20 major economies threw their weight behind efforts to introduce so-called vaccine passports.Key DevelopmentsGlobal Tracker: Cases top 153.6 million; deaths exceed 3.21 millionVaccine Tracker: More than 1.17 billion doses have been givenVaccinations decline across U.S., spurring search for holdoutsIt’s not just India. New virus waves deluge developing countriesBank bosses want a return to office. Underlings aren’t so sureWhat are vaccine passports and how would they work?: QuickTakeSubscribe to a daily update on the virus from Bloomberg’s Prognosis team here. Click CVID on the terminal for global data on cases and deaths.CVS Boosts Forecast on Covid Shots (10:20 a.m. NY)CVS Health Corp. raised its full-year forecast as Covid-19 vaccines and testing helped boost first-quarter results and offset a weak cold and flu season.The health-care company gave 17 million Covid shots at long-term care facilities and at its pharmacies through April. CVS is now immunizing in about 8,300 locations in 49 states, Chief Executive Officer Karen Lynch said Tuesday on a call with analysts.Leading Nations Set to Back Vaccine Passports (8:28 a.m. NY)The world’s 20 major economies threw their weight behind efforts to introduce so-called vaccine passports to boost travel and tourism, stressing that a resumption is crucial for a global economic recovery, according to a draft statement seen by Bloomberg.Tourism ministers from the Group of 20 nations, who met on Tuesday, said the outlook for a sector devastated by lockdowns remains “highly uncertain,” according to the draft, which is subject to change.U.K. Has No Plan to Speed Lockdown Easing (7:56 a.m. NY)“We’ve got no plans to deviate form the earliest dates set out in the roadmap” for unlocking the economy, Prime Minister Boris Johnson’s spokesman told reporters.UAE Extends Suspension of India Flights (7:46 a.m. NY)The United Arab Emirates extended the suspension of flights from India. The UAE, home to Dubai-based Emirates and Abu Dhabi-based Etihad Airways, had halted the flights until May 14. A new end date hasn’t yet been announced.Singapore Tightens Rules (6:57 a.m. NY)Singapore is limiting social gatherings and tightening border curbs as it reacts aggressively to a flareup linked to the new variant first identified in India.From May 8 to May 30, group gatherings must be cut from a maximum of eight to five, while daily visitors per household will be similarly capped, the Ministry of Health said in a statement. At workplaces, no more than 50% of staff who are able to work from home can return to offices.Pfizer Boosts Vaccine Revenue Forecast (6:46 a.m. NY)Pfizer Inc. boosted its full-year forecast for sales of its vaccine produced with BioNTech SE to approximately $26 billion, from about $15 billion previously. The guidance includes 1.6 billion doses expected to be delivered this year under contracts that have been signed through mid-April, and it may be adjusted as additional contracts are executed, Pfizer said in its release.“We also are in ongoing discussions with multiple countries around the world about their needs, and we expect these discussions to lead to additional supply agreements,” CEO Albert Bourla said in prepared remarks.Moderna Tests Lower-Dose Vaccines (6:02 a.m. NY)Moderna Inc. is testing vaccines with lower doses to try to boost supply, and it may also need to expand work on boosters to cover for more variants, Chairman Noubar Afeyan said in an interview with Bloomberg Television. He said he expects the coronavirus may become endemic like seasonal flu, and that vaccinating children seems like a good approach given Covid’s after-effects.Vietnam Extends Quarantine Period (5:41 p.m. HK)Vietnam is keeping people in quarantine centers longer than the 14-day period amid the emergence of cases being traced to overseas travelers.Provinces were instructed by the health ministry to “temporarily keep” in quarantine until further notice people who have completed the 14-day isolation, according to a post on the government website. Three patients in Vinh Phuc were found to be carrying a virus variant first detected in India, the health ministry said.Malaysia Imposes Curbs in Richest State (5:32 p.m. HK)Malaysia tightened restrictions in six districts in Selangor, the country’s richest state, in a bid to contain a rise in infections. The so-called movement control order will be in place from May 6 through May 17, Defense Minister Ismail Sabri Yaakob said in a briefing. While social gatherings will be banned in the six areas, economic activities will be allowed.EU Regulator Starts Rolling Review of Sinovac (5:08 p.m. HK)The European Medicines Agency said it started a rolling review of the vaccine from China’s Sinovac Life Sciences Co. to test compliance with safety and quality standards, the first major step in gaining approval for use in the European Union.The EMA started a rolling review of Russia’s Sputnik V vaccine in March. Its human medicines committee, CHMP, said the decision to review the Sinovac shot was based on studies and data that suggest the vaccine triggers the production of antibodies that target SARS-CoV-2, according to a statement.Japan PM Struggles Over Decision (4:54 p.m. HK)Japanese Prime Minister Yoshihide Suga is reportedly struggling with the decision on whether to end or extend the coronavirus state of emergency for Tokyo and greater Osaka.Suga told infectious disease expert and cabinet adviser Nobuhiko Okabe that the decision over whether to lift the emergency on May 11 will be “tough,” local broadcaster FNN reported, citing Okabe’s remarks to reporters after a meeting with Suga on Tuesday.Osaka Governor Hirofumi Yoshimura indicated the prefecture may seek an extension to its current state of emergency due to the number of new cases and pressure on the medical system.India Cricket League Suspended (4:11 p.m. HK)India’s cricketing regulator suspended the Premier League after multiple players contracted Covid-19, bringing a temporary halt to a tournament that has divided the nation on whether it was appropriate to play sport as thousands of citizens die each day.U.K. to Gradually Wind Back Curbs (2:45 p.m. Hong Kong)British Prime Minister Boris Johnson said the U.K. is on course to gradually scrap lockdown rules over the next seven weeks, hailing the U.K.’s successful vaccine rollout ahead of key elections this week.Johnson said the pandemic data was likely to allow people in England to stay overnight with friends or relations, with indoor hospitality able to reopen from May 17. Remaining social distancing rules are also likely to be canceled from June 21, though he warned that international travel will need to be carefully monitored after May 17.Rajan Slams India’s Leadership (12:55 p.m. Hong Kong)India today reported more than 357,000 new infections, bringing the total official tally to more than 20 million cases, and an additional 3,449 deaths. The tally comes as Premier Modi continues to see lockdowns as the “last option” despite a growing domestic and international chorus calling for action.The wave of infections in India has revealed complacency after last year’s first wave, as well as a “lack of foresight, a lack of leadership,” said Raghuram Rajan, former governor of the country’s central bank.“If you were careful, if you were cautious, you had to recognize that it wasn’t done yet,” Rajan said in a Bloomberg Television interview. “Anybody paying attention to what was happening in the rest of the world, in Brazil for example, should have recognized the virus does come back and potentially in more virulent forms.Denmark Eases Curbs, Drops J&J (12:30 p.m. Hong Kong)Denmark will ease more restrictions this week as the infection rate has remained stable in the Nordic country, the government said. All children through 8th grade will return to schools full-time, while cinemas, theaters and gyms will also reopen.Denmark also won’t use J&J’s vaccine due to concern about the risk of blood clots, the Danish Health Authority said. The move comes less than a month after Denmark became the first European Union member to drop AstraZeneca Plc for similar reasons. Both shots are used in many other countries.Denmark had pre-ordered about 7 million vaccine shots from J&J, more than from any other producer, so the decision will delay the national vaccine rollout by four weeks.Hong Kong Reviews Worker Decision (11:35 a.m. Hong Kong)Hong Kong is reviewing a decision to make vaccinations mandatory for foreign domestic workers after a wave of criticism, Chief Executive Carrie Lam said.“After listening to voices in the society, I have requested the Labour and Welfare Bureau to review the justification, feasibility, and discuss with experts including consulates of relevant countries where the foreign domestic helpers mainly come from.”The decision had led to an outcry from officials in the Philippines, home to many such workers, and was branded “very discriminatory” by Cynthia Tellez, head of the Mission for Migrant Workers.Mexico Sees Slower Rise in Toll (11:00 a.m. Hong Kong)The death toll of the Covid-19 pandemic is easing in Mexico, where daily fatalities dropped below 100 for the first time in a year this week, according to official data from the Health Ministry.The country reported 112 new Covid-19 deaths from the virus Monday, bringing the total to 217,345. On Sunday, Mexico posted 94 deaths, the least since May 3, 2020. While Mexico normally registers fewer fatalities at the start of the week, the seven-day average has been steadily dropping; during the winter, Mexico regularly reported more than 1,000 victims a day from the virus, with a high of 1,803 on Jan. 21.India to Get 220 Million Serum Shots (9:55 a.m. Hong Kong)Serum Institute of India, the world’s largest vaccine maker, will deliver 220 million doses to federal and state governments over the next few months. The central government will get 110 million of those doses of Covishield, the manufacturer said.“Vaccine manufacturing is a specialized process, it’s therefore not possible to ramp up production overnight,” CEO Adar Poonawalla said. Covering all of India’s 1.4 billion people is “not an easy task.”Earlier, Bloomberg News reported that the central government hasn’t placed an order larger than 110 million doses since sales started in December, citing a person familiar with the matter. The lack of a larger central stockpile, coupled with a devastating second wave which saw over 400,000 new daily cases on Saturday, is now making local state governments scramble and compete with one another in placing orders after Delhi turned over the responsibility of procuring vaccines to them last month.Australian Backlash Grows Over Ban (8:30 a.m. Hong Kong)Critics of Prime Minister Scott Morrison’s decision to ban returning Australians from virus-ravaged India now include lawmakers from his own Liberal-National coalition government.Fiona Martin told the Guardian that her government’s weekend announcement that Australian citizens in India who try to return home would be liable for five years in prison and fines of about $50,000 was “heavy-handed”. Fellow government lawmaker Dave Sharma said of the ban, which is in place until at least May 15: “There is little doubt this is an extreme measure and that it is causing significant hardship to the Australian Indian community.”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. Business Bloomberg 210504 08h18m Nasdaq 100 Tumbles 2% With Tech Leading Stock Rout: Markets Wrap (Bloomberg) -- Volatility gripped financial markets as a selloff in some of the world’s largest technology companies dragged down stocks. Treasuries climbed with the dollar.The S&P 500 headed toward its worst day since mid March, while the Nasdaq 100 sank 2% amid a rout in megacaps Apple Inc., Tesla Inc. and Amazon.com Inc. CVS Health Corp. climbed after raising its full-year forecast as Covid-19 vaccines and testing helped boost first-quarter results and offset a weak cold and flu season.A sharp drop in equity futures earlier Tuesday left traders scrambling for reasons to explain the move. The catalyst behind the decline was unclear, but investors speculated on military tensions between China and Taiwan, Singapore’s tougher lockdown and Ferrari NV’s decision to postpone financial targets.For several analysts, though, the reason could be simple: stocks are hovering near-all time highs and have struggled to gain much traction despite a blockbuster earnings season.“We’ve had this spectacular run-up, and I think we’ve seen momentum just run out of steam,” said Fiona Cincotta, senior financial markets analyst at City Index. “Despite earnings being encouraging, they haven’t managed to push those indices higher. Moving out of growth and into cyclicals is the place we’re going to have more movement.”Data Tuesday showed that the U.S. trade deficit widened to a new record in March as the value of imports surged to a fresh high. Investors will also be watching the latest readings on factory orders and durable goods.Here are some key events to watch this week:U.S. ADP employment change is due WednesdayChicago Fed President Charles Evans gives a virtual speech at an event hosted by Bard College on Wednesday. Cleveland Fed President Loretta Mester gives a virtual speech to the Boston Economic ClubBank of England rate decision ThursdayThe April U.S. employment report is released on FridayThese are some of the main moves in markets:StocksThe S&P 500 fell 1.1% as of 10:16 a.m. New York timeThe Nasdaq 100 fell 2%The Dow Jones Industrial Average fell 0.7%The Stoxx Europe 600 fell 1.3%The MSCI World index fell 1.1%CurrenciesThe Bloomberg Dollar Spot Index rose 0.3%The euro fell 0.3% to $1.2025The British pound fell 0.4% to $1.3859The Japanese yen was little changed at 109.12 per dollarBondsThe yield on 10-year Treasuries declined four basis points to 1.56%Germany’s 10-year yield declined four basis points to -0.25%Britain’s 10-year yield declined five basis points to 0.79%CommoditiesWest Texas Intermediate crude rose 1% to $65 a barrelGold futures rose 0.3% to $1,796 an ounceFor 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. Howell date : 210504 08h12m50s Business Yahoo Finance 210504 08h06m Stock market news live updates: Stocks dip, tech shares renew declines as investors eye more earnings Stock futures traded little changed Tuesday morning after a mixed session a day earlier, with investors awaiting the next set of corporate earnings results. World Reuters 210504 08h01m Australia backs three 'green' hydrogen projects with more than A$100 mln Australia said on Wednesday it had awarded A$103 million ($80 million) to back three 'green' hydrogen projects, hiking its planned funding by almost 50% as the government seeks to speed up commercial production of the gas using renewable resources. All three projects selected by the Australian Renewable Energy Agency (ARENA) plan to use 10 megawatt (MW) electrolysers to split water using renewable energy to produce hydrogen. The electrolysers, nearly 10 times the size of the largest one in Australia, will be among the biggest in the world. Business Bloomberg 210504 07h59m Stocks Slump as Volatility Jumps Amid Tech Selloff: Markets Wrap (Bloomberg) -- Volatility gripped financial markets, spurring a stock selloff amid a decline in some of the world’s largest technology companies.All major groups in the S&P 500 retreated, while the tech-heavy Nasdaq 100 underperformed major equity benchmarks. Megacaps Apple Inc., Tesla Inc. and Amazon.com Inc. slid. CVS Health Corp. climbed after raising its full-year forecast as Covid-19 vaccines and testing helped boost first-quarter results and offset a weak cold and flu season.A sharp drop in equity futures earlier Tuesday left traders scrambling for reasons to explain the move. The catalyst behind the decline was unclear, but investors speculated on military tensions between China and Taiwan, Singapore’s tougher lockdown and Ferrari NV’s decision to postpone financial targets. For several analysts, though, the reason could be simple: stocks are hovering near-all time highs and have struggled to gain much traction despite a blockbuster earnings season.“We’ve had this spectacular run-up, and I think we’ve seen momentum just run out of steam,” said Fiona Cincotta, senior financial markets analyst at City Index. “Despite earnings being encouraging, they haven’t managed to push those indices higher. Moving out of growth and into cyclicals is the place we’re going to have more movement.”Data Tuesday showed that the U.S. trade deficit widened to a new record in March as the value of imports surged to a fresh high. Investors will also be watching the latest readings on factory orders and durable goods.Here are some key events to watch this week:U.S. ADP employment change is due WednesdayChicago Fed President Charles Evans gives a virtual speech at an event hosted by Bard College on Wednesday. Cleveland Fed President Loretta Mester gives a virtual speech to the Boston Economic ClubBank of England rate decision ThursdayThe April U.S. employment report is released on FridayThese are some of the main moves in markets:StocksThe S&P 500 fell 1% as of 9:58 a.m. New York timeThe Nasdaq 100 fell 1.7%The Dow Jones Industrial Average fell 0.7%The Stoxx Europe 600 fell 1.1%The MSCI World index fell 0.9%CurrenciesThe Bloomberg Dollar Spot Index rose 0.3%The euro fell 0.3% to $1.2030The British pound fell 0.4% to $1.3856The Japanese yen was little changed at 109.08 per dollarBondsThe yield on 10-year Treasuries declined three basis points to 1.57%Germany’s 10-year yield declined four basis points to -0.24%Britain’s 10-year yield declined five basis points to 0.80%CommoditiesWest Texas Intermediate crude rose 1.2% to $65 a barrelGold futures rose 0.1% to $1,794 an ounceFor 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. Business Bloomberg 210504 07h56m Corn Tops $7 a Bushel for First Time Since 2013 on Supply Worry (Bloomberg) -- Corn futures surged above $7 a bushel for the first time in more than eight years as lack of rainfall in Brazil added to supply concerns.Corn climbed as much as 3.5% to $7.0325 a bushel on the Chicago Board of Trade, the highest since March 2013. Soybeans and wheat also both rose.The rally across grain markets prompted major crop trader Bunge Ltd. on Tuesday to raise its earnings outlook for 2021 by as much as 25% above its previous forecast. The St. Louis-based company, which posted first-quarter earnings that were double analyst projections, is betting on strong demand for crops as the world emerges from the pandemic, China scoops up American supplies and the renewable diesel industry expands.China has been buying massive amounts of American soybeans and corn to rebuild the world’s largest hog herd. That’s helping lift prices just as dry weather hits crop yields in South America and Europe. The tailwinds have also lifted Bunge’s rival Archer-Daniels-Midland Co., which last week reported its best-ever earnings for its traditional crop-trading business.“We are optimistic that the favorable demand environment in the first quarter will continue through 2021,” Bunge Chief Executive Officer Greg Heckman said.Dryness is hampering Brazil’s key second-crop corn, and rain in the coming week will fail to reach some key growing areas, according to Somar. That could further hurt yields, and analysts including Safras and StoneX Brazil have cut estimates for the coming harvest. A production shortfall there would compound stretched global grain supplies and risk further stoking food inflation.“The situation is critical in Brazil,” Paris-based adviser Agritel said in a report. “This should further strain the global balance sheet, while the U.S. will have to partly compensate for the drop in South American exports.”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. World Bloomberg 210504 07h51m China Tensions Spill Over as Europe Moves Toward Biden’s Side (Bloomberg) -- A major investment deal reached in December between the European Union and China — after seven years of painful negotiations — may end up being the high-water mark for ties that are quickly deteriorating again.Since then, the EU’s executive branch and Germany have each formulated legislation that would make life harder for Chinese entities to invest, while joining the U.S. in swapping tit-for-tat sanctions with Beijing. Italy’s government has turned from an enthusiastic backer of President Xi Jinping’s Belt and Road Initiative to blocking planned acquisitions by Chinese companies. And in France, China’s ambassador didn’t even show up when summoned in March, citing “agenda reasons.”Taken together, the moves signal a hardening of the European stance on Beijing. And the biggest shift could be yet to come, with polls showing the German Greens party on course for a significant role in government after September’s election, raising the prospect of a more China-skeptic chill from Europe’s biggest economy.Chancellor Angela Merkel spoke with Chinese Premier Li Keqiang last week, and the two pledged closer cooperation on Covid-19 vaccines and fighting climate change. Yet the talk in Berlin is that optimism around the relationship is gone, and one Chinese official characterized ties with Europe as on a downward trajectory. Whether the Greens come to power in Germany or not, EU-China relations are at a critical juncture, said the official, asking not to be identified speaking about strategic matters.The multiple signs of strain suggest Europe’s biggest players are moving closer to the views of President Joe Biden’s administration in its standoff with China. As Secretary of State Antony Blinken holds talks in London this week with his Group of Seven counterparts, a Europe more aligned with Washington would signal some repair to the damage done to transatlantic ties by the Trump administration, with implications for trade, tariffs and access to technology.“There’s been a mood shift,” said Joerg Wuttke, Beijing-based president of the European Chamber of Commerce in China and a board member of the Mercator Institute of China Studies in Berlin, one of the entities sanctioned by China in March.He cited the “perfect storm” of China’s assertiveness toward Taiwan, its move to impose political control over Hong Kong, and international sanctions over alleged human-rights abuses in the Xinjiang region, overlaid by the fact that China hasn’t followed through on its promises of opening up economically.To be sure, Europe is not uniform in its outlook, with EU members such as Hungary still eager to engage with China. And whereas Biden has said that China can expect “extreme competition” from the U.S. while it also seeks to work with Beijing on global issues such as climate change, Europe faces more of a dilemma as its strives to forge its own path.Economic ties remain paramount since China is the EU’s biggest trading partner, with a total volume of some $686 billion in 2020 outstripping U.S.-China trade of $572 billion. Yet now even the Netherlands, which is among China’s top 10 trading partners, is growing more wary, protecting its high-tech companies from takeover and enacting a dedicated China strategy. According to the Chinese official, the U.S. has forced the EU to take sides.The sentiment was different just four months ago when Merkel helped steer the bloc to seal the EU-China Comprehensive Agreement on Investment, which Commission President Ursula von der Leyen said was “an important landmark in our relationship with China.” Still subject to ratification by the European Parliament, it would provide improved access to the Chinese market for European investors while committing China to “ambitious principles” including on forced labor.Yet by late March, the EU had joined the U.S., Canada and the U.K. in imposing sanctions on China over alleged mistreatment of Muslim Uyghurs in Xinjiang, including forcing them to work. Beijing responded with its own sanctions, while a public backlash saw Swedish fashion retailer Hennes & Mauritz AB subject to an unofficial boycott.“The EU has recently added more agenda items tied with human rights, ideology, democracy,” said Zhang Monan, senior fellow at the U.S.-Europe Institute at the China Center for International Economic Exchanges in Beijing. “This kind of opposition and friction is expected to continue.” She added that the EU is expected to formulate policy independently since it doesn’t want to be subordinate to the U.S.The European Commission is now proposing rules to levy fines and block deals targeted at foreign state-owned companies, while Merkel’s cabinet approved additional powers over foreign investment last week aimed at high-tech sectors including artificial intelligence and quantum computing. Both measures would hinder China.EU governments are set to criticize China for its crackdown on dissent in Hong Kong, according to a draft statement seen by Bloomberg ahead of a meeting next week of the bloc’s foreign ministers. The EU will pledge to “facilitate mobility” for Hong Kong citizens who face “repression due to their political beliefs” and retaliate further if China targets any EU citizens or businesses for supporting democracy in the financial center, according to the draft.China had hoped to separate economic issues from political issues and to bind Europe with its huge consumer market, but that’s increasingly impossible now, said an academic at a Chinese government-affiliated think tank. Ratification of the CAI has become more challenging, said the person, who is not authorized to comment publicly due to rules on speaking to foreign media.Signs of the tensions were on show during the virtual talks led by Merkel and Li. In a departure from usual practice, the opening remarks were not live-streamed and there was no concluding press conference. A transcript posted several hours later by Germany showed that Merkel addressed human rights, saying there were differences of opinion particularly over Hong Kong.“China and Germany have different views on some issues, this is a fact,” Li told Merkel, urging Germany not interfere in internal matters, according to a statement from the Chinese Foreign Ministry. Li said he hoped they could “eliminate unnecessary distractions” to maintain “healthy and stable” bilateral ties.The shift in Europe has not been lost on Washington. A Biden administration official said there’s been a sea change in European thinking, coming on board with the U.S. stance on China. There’s been real evolution in Germany too, the official said.That change could get more pronounced if the Greens convert their opinion poll lead into a strong showing or even victory in September, with Merkel set to step aside. While all coalitions involve policy trade-offs, the Greens have a harsher line on China than the current administration, calling for an end to Beijing’s “blatant human-rights violations” and for closer European and transatlantic coordination on China.A coalition with the conservatives as suggested by polls would see continuity in German foreign policy but with “different nuances” on China, said Jana Puglierin, head of the Berlin office of the European Council on Foreign Relations. “The Greens would clearly advocate a less mercantilist policy than we have seen under Merkel,” she said.For now, Europe is determined to avoid decoupling entirely with China. French President Emmanuel Macron and Merkel held a joint call with Xi in April, and a report in China’s Global Times on April 28 referred to “optimism and confidence in China-Germany cooperation” despite the risk of “some impacts” after the election. Merkel’s would-be successors and business leaders know the “great potential” of Europe working with China, it said, “so they need to ensure healthy ties won’t be interrupted by any third party or internal conservative forces.”Still, Wuttke at the European trade chamber said that China underestimates the concern over human rights in Germany. Especially after the departure of Merkel, who favored engagement with China, that’s likely to “translate into possibly more assertive policy in Berlin,” he said.(Updates with EU position on Hong Kong in 14th 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. Howell date : 210504 07h42m12s Business Bloomberg 210504 07h34m Tech Leads Losses in Stocks While Dollar Advances: Markets Wrap (Bloomberg) -- Stocks fell as a decline in some of the world’s largest technology companies overshadowed a fresh round of better-than-estimated corporate earnings. The dollar climbed.The tech-heavy Nasdaq 100 underperformed major equity benchmarks. Megacaps Apple Inc., Tesla Inc. and Amazon.com Inc. retreated. Pfizer Inc. rose as the drugmaker raised its forecast for Covid-19 vaccine revenue this year amid a jump in profits, while CVS Health Corp. gained after boosting its earnings outlook.Earlier Tuesday, a sharp drop in U.S. equity futures left traders scrambling for reasons to explain the move. For several analysts, the reason could be simple: stocks are hovering near-all time highs and have struggled to gain much traction despite a blockbuster earnings season. “We’ve had this spectacular run-up, and I think we’ve seen momentum just run out of steam,” said Fiona Cincotta, senior financial markets analyst at City Index. “Despite earnings being encouraging, they haven’t managed to push those indices higher. Moving out of growth and into cyclicals is the place we’re going to have more movement.”Data Tuesday showed that the U.S. trade deficit widened to a new record in March as the value of imports surged to a fresh high. Investors will also be watching the latest readings on factory orders and durable goods.Here are some key events to watch this week:U.S. ADP employment change is due WednesdayChicago Fed President Charles Evans gives a virtual speech at an event hosted by Bard College on Wednesday. Cleveland Fed President Loretta Mester gives a virtual speech to the Boston Economic ClubBank of England rate decision ThursdayThe April U.S. employment report is released on FridayThese are some of the main moves in markets:StocksThe S&P 500 fell 0.4% as of 9:31 a.m. New York timeThe Nasdaq 100 fell 0.8%The Dow Jones Industrial Average fell 0.2%The Stoxx Europe 600 fell 0.6%The MSCI World index fell 0.5%CurrenciesThe Bloomberg Dollar Spot Index rose 0.3%The euro fell 0.4% to $1.2019The British pound fell 0.4% to $1.3851The Japanese yen fell 0.1% to 109.18 per dollarBondsThe yield on 10-year Treasuries declined two basis points to 1.58%Germany’s 10-year yield declined three basis points to -0.23%Britain’s 10-year yield declined four basis points to 0.80%CommoditiesWest Texas Intermediate crude rose 1.7% to $66 a barrelGold futures fell 0.1% to $1,790 an ounceFor 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. Business Yahoo Finance 210504 07h33m Stock market news live updates: Stocks dip, tech shares renew declines as investors eye more earnings Stock futures traded little changed Tuesday morning after a mixed session a day earlier, with investors awaiting the next set of corporate earnings results. Business Reuters 210504 07h33m WRAPUP 1-U.S. trade deficit hits a record high amid pent-up demand The U.S. trade deficit jumped to a record high in March amid roaring domestic demand, which is drawing in imports, and the gap could widen further as the nation's economic activity rebounds faster than its global rivals. The White House's $1.9 trillion pandemic relief package and the expansion of the COVID-19 vaccination program to all adult Americans have led to a boom in demand, which is pushing against supply constraints. Economic activity is also being boosted by the Federal Reserve's ultra-easy monetary policy stance. Business Bloomberg 210504 07h32m The Race to Build Self-Driving Trucks Has Four Horses and Three Jockeys (Bloomberg) -- Over the last five years, as it’s become clear that self-driving cars will take longer than expected to arrive on most American streets, some of the biggest players in the industry have turned their attention to long-haul trucking. Alphabet Inc.’s autonomous vehicle unit Waymo, the leader in robo-taxis, launched its trucking division Via in 2017 after a handful of start-ups, including Otto, Starsky Robotics, and TuSimple Holdings Inc., had entered the field. Aurora Innovation Inc., one of Waymo’s most formidable competitors, recently decided to focus its efforts on bringing a trucking product to market before branching into ride-hailing. The logic behind the pivot is twofold: highways are easier to navigate than city streets and cargo is less demanding than human passengers. If a robo-truck drives extra cautiously on its way to a big box store, as Aurora co-founder and CEO Chris Urmson put it when I spoke to him earlier this year, “the roll of toilet paper doesn’t care.”There are also advantages on the business side. In ride hailing, robo-taxis need to outperform and undercut a large, flexible and relatively cheap pool of gig workers. Truck drivers, on the other hand, are in short supply, a problem that only promises to get worse as e-commerce continues to boom. In one possible version of the autonomous future — a model known as “depot-to-depot”—robot drivers would cover the long and relatively simple stretches of interstate driving and leave the trickier surface streets to human drivers who would take over at highway off ramps. The robots could operate for hours on end without running afoul of service time rules and needing to stop only for fuel, while truckers would still have jobs and could sleep in their own beds at night. TuSimple CEO Cheng Lu estimates that driverless trucks running more hours on the road can reduce hauling costs by 50%.In theory, it’s a win-win, and a multibillion dollar business opportunity. The blank-check companies, naturally, have taken notice: special purpose acquisition company (SPAC) Hennessy Capital Investment Corp. V is reportedly in talks to merge with self-driving truck startup Plus. Yet there are signs that self-driving trucks are already following robo-taxis into the “ trough of disillusionment.” After a splashy demo covering ten miles on a Florida turnpike in 2019, Starsky Robotics folded last year. In December, the autonomous delivery start-up Nuro acquired trucking start-up Ike, leaving its plans for that market uncertain. For all the advantages that trucking offers, it also comes with unique challenges. “Because of the heavier weight of the vehicle and the high speeds, if something goes wrong, it's catastrophic,” says Bruno Bowden, a former engineering manager for simulation at Aurora who is now an angel investor, “You don't get a small accident with a big rig truck.” To avoid these catastrophes, self-driving trucks need to see farther ahead than cars do. “The heart of the problem for driving is predicting about five seconds into the future,” says Bowden. But with trucks, he says, that magic number doubles.It’s likely that safety drivers will remain in cabs for years to come as companies hone their sensor technology and train their software for every highway scenario. It’s expensive and painstaking work that can overwhelm even the best-run start-ups. The consensus within the industry is that three contestants stand the best chance to make it to the finish line: “It's TuSimple, Aurora and Waymo,” says Grayson Brulte, co-founder of Brulte & Co., a consulting firm focused on transportation. TuSimple, a San Diego based-company that raised $1.35 billion in an initial public offering in April, is in the pole position, as Brulte sees it, because of its singular focus on trucking and its partnership, begun three years ago, with Navistar International to build autonomous trucks. “They've got the head start on it,” says Brulte.Since that deal, Waymo and Aurora have each struck their own (non-exclusive) agreements with truck makers, leaving the four dominant manufacturers in the U.S. market—Daimler Trucks, Volvo Group, Paccar Inc., and Navistar—tied to one of the three leaders in autonomous trucking. (See chart above.) If robots are to replace truckers on U.S. highways, these are the companies likeliest to be in the driver’s seat: (Corrects a footnote describing the application of Waymo’s fifth-generation driving system to trucks.)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. Business Reuters 210504 07h27m Spanish delivery startup Glovo hit by cyber attack A hacker broke into the systems of Spanish rapid-delivery startup Glovo last week, it said on Tuesday, without specifying what information might have been accessed. Valued at over $1 billion, Barcelona-based Glovo delivers everything from food to household supplies to some 10 million users across 20 countries. The hacker gained access to a system on April 29 via an old administrator platform but was ejected as soon as the intrusion was detected, Glovo said. Howell date : 210504 07h31m21s World Bloomberg 210504 07h15m Pfizer’s Vaccine Windfall; Singapore Cracks Down: Virus Update (Bloomberg) -- U.K. Prime Minister Boris Johnson said the country is on course to scrap lockdown rules, and Denmark will ease curbs this week. Singapore is cracking down in response to a flareup linked to the variant first identified in India, a setback for one of the most successful virus containment regimes.India was criticized for a “lack of leadership” as its prime minister resists pressure to lock down. The country’s cricket regulators suspended the Premier League after players tested positive.Goldman Sachs Group Inc. plans for U.S. employees to return to offices by mid-June, while Vanguard Group prefers a hybrid model. The European Union’s drug regulator started a review of a vaccine from China, and Pfizer Inc. increased the forecast for sales of its shot this year. The world’s 20 major economies threw their weight behind efforts to introduce so-called vaccine passports.Key DevelopmentsGlobal Tracker: Cases top 153.6 million; deaths exceed 3.21 millionVaccine Tracker: More than 1.17 billion doses have been givenIt’s not just India. New virus waves deluge developing countriesBank bosses want a return to office. Underlings aren’t so sureNew York City is roaring back to life, one year after its nadirWhat are vaccine passports and how would they work?: QuickTakeSubscribe to a daily update on the virus from Bloomberg’s Prognosis team here. Click CVID on the terminal for global data on cases and deaths.Leading Nations Set to Back Vaccine Passports (8:28 a.m. NY)The world’s 20 major economies threw their weight behind efforts to introduce so-called vaccine passports to boost travel and tourism, stressing that a resumption is crucial for a global economic recovery, according to a draft statement seen by Bloomberg.Tourism ministers from the Group of 20 nations, who met on Tuesday, said the outlook for a sector devastated by lockdowns remains “highly uncertain,” according to the draft, which is subject to change.U.K. Has No Plan to Speed Lockdown Easing (7:56 a.m. NY)“We’ve got no plans to deviate form the earliest dates set out in the roadmap” for unlocking the economy, Prime Minister Boris Johnson’s spokesman told reporters.UAE Extends Suspension of India Flights (7:46 a.m. NY)The United Arab Emirates extended the suspension of flights from India. The UAE, home to Dubai-based Emirates and Abu Dhabi-based Etihad Airways, had halted the flights until May 14. A new end date hasn’t yet been announced.Singapore Tightens Rules (6:57 a.m. NY)Singapore is limiting social gatherings and tightening border curbs as it reacts aggressively to a flareup linked to the new variant first identified in India.From May 8 to May 30, group gatherings must be cut from a maximum of eight to five, while daily visitors per household will be similarly capped, the Ministry of Health said in a statement. At workplaces, no more than 50% of staff who are able to work from home can return to offices.Pfizer Boosts Vaccine Revenue Forecast (6:46 a.m. NY)Pfizer Inc. boosted its full-year forecast for sales of its vaccine produced with BioNTech SE to approximately $26 billion, from about $15 billion previously. The guidance includes 1.6 billion doses expected to be delivered this year under contracts that have been signed through mid-April, and it may be adjusted as additional contracts are executed, Pfizer said in its release.“We also are in ongoing discussions with multiple countries around the world about their needs, and we expect these discussions to lead to additional supply agreements,” CEO Albert Bourla said in prepared remarks.Moderna Tests Lower-Dose Vaccines (6:02 a.m. NY)Moderna Inc. is testing vaccines with lower doses to try to boost supply, and it may also need to expand work on boosters to cover for more variants, Chairman Noubar Afeyan said in an interview with Bloomberg Television. He said he expects the coronavirus may become endemic like seasonal flu, and that vaccinating children seems like a good approach given Covid’s after-effects.Vietnam Extends Quarantine Period (5:41 p.m. HK)Vietnam is keeping people in quarantine centers longer than the 14-day period amid the emergence of cases being traced to overseas travelers.Provinces were instructed by the health ministry to “temporarily keep” in quarantine until further notice people who have completed the 14-day isolation, according to a post on the government website. Three patients in Vinh Phuc were found to be carrying a virus variant first detected in India, the health ministry said.Malaysia Imposes Curbs in Richest State (5:32 p.m. HK)Malaysia tightened restrictions in six districts in Selangor, the country’s richest state, in a bid to contain a rise in infections. The so-called movement control order will be in place from May 6 through May 17, Defense Minister Ismail Sabri Yaakob said in a briefing. While social gatherings will be banned in the six areas, economic activities will be allowed.EU Regulator Starts Rolling Review of Sinovac (5:08 p.m. HK)The European Medicines Agency said it started a rolling review of the vaccine from China’s Sinovac Life Sciences Co. to test compliance with safety and quality standards, the first major step in gaining approval for use in the European Union.The EMA started a rolling review of Russia’s Sputnik V vaccine in March. Its human medicines committee, CHMP, said the decision to review the Sinovac shot was based on studies and data that suggest the vaccine triggers the production of antibodies that target SARS-CoV-2, according to a statement.Japan PM Struggles Over Decision (4:54 p.m. HK)Japanese Prime Minister Yoshihide Suga is reportedly struggling with the decision on whether to end or extend the coronavirus state of emergency for Tokyo and greater Osaka.Suga told infectious disease expert and cabinet adviser Nobuhiko Okabe that the decision over whether to lift the emergency on May 11 will be “tough,” local broadcaster FNN reported, citing Okabe’s remarks to reporters after a meeting with Suga on Tuesday.Osaka Governor Hirofumi Yoshimura indicated the prefecture may seek an extension to its current state of emergency due to the number of new cases and pressure on the medical system.India Cricket League Suspended (4:11 p.m. HK)India’s cricketing regulator suspended the Premier League after multiple players contracted Covid-19, bringing a temporary halt to a tournament that has divided the nation on whether it was appropriate to play sport as thousands of citizens die each day.U.K. to Gradually Wind Back Curbs (2:45 p.m. Hong Kong)British Prime Minister Boris Johnson said the U.K. is on course to gradually scrap lockdown rules over the next seven weeks, hailing the U.K.’s successful vaccine rollout ahead of key elections this week.Johnson said the pandemic data was likely to allow people in England to stay overnight with friends or relations, with indoor hospitality able to reopen from May 17. Remaining social distancing rules are also likely to be canceled from June 21, though he warned that international travel will need to be carefully monitored after May 17.Rajan Slams India’s Leadership (12:55 p.m. Hong Kong)India today reported more than 357,000 new infections, bringing the total official tally to more than 20 million cases, and an additional 3,449 deaths. The tally comes as Premier Modi continues to see lockdowns as the “last option” despite a growing domestic and international chorus calling for action.The wave of infections in India has revealed complacency after last year’s first wave, as well as a “lack of foresight, a lack of leadership,” said Raghuram Rajan, former governor of the country’s central bank.“If you were careful, if you were cautious, you had to recognize that it wasn’t done yet,” Rajan said in a Bloomberg Television interview. “Anybody paying attention to what was happening in the rest of the world, in Brazil for example, should have recognized the virus does come back and potentially in more virulent forms.Denmark Eases Curbs, Drops J&J (12:30 p.m. Hong Kong)Denmark will ease more restrictions this week as the infection rate has remained stable in the Nordic country, the government said. All children through 8th grade will return to schools full-time, while cinemas, theaters and gyms will also reopen.Denmark also won’t use J&J’s vaccine due to concern about the risk of blood clots, the Danish Health Authority said. The move comes less than a month after Denmark became the first European Union member to drop AstraZeneca Plc for similar reasons. Both shots are used in many other countries.Denmark had pre-ordered about 7 million vaccine shots from J&J, more than from any other producer, so the decision will delay the national vaccine rollout by four weeks.Hong Kong Reviews Worker Decision (11:35 a.m. Hong Kong)Hong Kong is reviewing a decision to make vaccinations mandatory for foreign domestic workers after a wave of criticism, Chief Executive Carrie Lam said.“After listening to voices in the society, I have requested the Labour and Welfare Bureau to review the justification, feasibility, and discuss with experts including consulates of relevant countries where the foreign domestic helpers mainly come from.”The decision had led to an outcry from officials in the Philippines, home to many such workers, and was branded “very discriminatory” by Cynthia Tellez, head of the Mission for Migrant Workers.Mexico Sees Slower Rise in Toll (11:00 a.m. Hong Kong)The death toll of the Covid-19 pandemic is easing in Mexico, where daily fatalities dropped below 100 for the first time in a year this week, according to official data from the Health Ministry.The country reported 112 new Covid-19 deaths from the virus Monday, bringing the total to 217,345. On Sunday, Mexico posted 94 deaths, the least since May 3, 2020. While Mexico normally registers fewer fatalities at the start of the week, the seven-day average has been steadily dropping; during the winter, Mexico regularly reported more than 1,000 victims a day from the virus, with a high of 1,803 on Jan. 21.India to Get 220 Million Serum Shots (9:55 a.m. Hong Kong)Serum Institute of India, the world’s largest vaccine maker, will deliver 220 million doses to federal and state governments over the next few months. The central government will get 110 million of those doses of Covishield, the manufacturer said.“Vaccine manufacturing is a specialized process, it’s therefore not possible to ramp up production overnight,” CEO Adar Poonawalla said. Covering all of India’s 1.4 billion people is “not an easy task.”Earlier, Bloomberg News reported that the central government hasn’t placed an order larger than 110 million doses since sales started in December, citing a person familiar with the matter. The lack of a larger central stockpile, coupled with a devastating second wave which saw over 400,000 new daily cases on Saturday, is now making local state governments scramble and compete with one another in placing orders after Delhi turned over the responsibility of procuring vaccines to them last month.Australian Backlash Grows Over Ban (8:30 a.m. Hong Kong)Critics of Prime Minister Scott Morrison’s decision to ban returning Australians from virus-ravaged India now include lawmakers from his own Liberal-National coalition government.Fiona Martin told the Guardian that her government’s weekend announcement that Australian citizens in India who try to return home would be liable for five years in prison and fines of about $50,000 was “heavy-handed”. Fellow government lawmaker Dave Sharma said of the ban, which is in place until at least May 15: “There is little doubt this is an extreme measure and that it is causing significant hardship to the Australian Indian community.”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. Business Reuters 210504 07h13m Uber, GoPuff team up to boost essential item deliveries The pandemic hit Uber's ride-hailing services as it restricted outdoor movements, pushing the company to focus on its delivery business. GoPuff, which recently acquired liquor store chain BevMo!, delivers items such as food, alcohol and medicines in more than 650 U.S. cities. Uber has also made inroads into the liquor delivery market with its acquisition of the on-demand alcohol platform Drizly in February. Business Reuters 210504 07h05m Space startup Firefly raises $75 million, studies public listing Firefly Aerospace said on Tuesday it has raised $75 million in private capital, the first of two injections totaling up to $400 million that Chief Executive Tom Markusic anticipates will give his space startup a multibillion-dollar value by year-end. Reuters reported last week that Firefly was close to announcing a capital infusion to fund development of its ambitious spacecraft portfolio, anchored by two carbon-composite rockets. Firefly, U.S.-New Zealand startup Rocket Lab, and billionaire Richard Branson's Virgin Orbit are seen as front-runners in a new breed of firms building miniaturized launch systems to cash in on the exponential growth of compact satellites needing a ride to orbit in the coming years. Business Bloomberg 210504 06h59m S&P 500 Futures Turn Sharply Lower; Dollar Gains: Markets Wrap (Bloomberg) -- U.S. stock futures dropped sharply with European stocks just after 7:30 a.m. in New York, leaving traders scrambling for reasons to explain the move.The catalyst behind the decline was unclear, but traders speculated on military tensions between China and Taiwan, Singapore’s tougher lockdown and Ferrari NV’s decision to postpone financial targets. S&P 500 Index contracts fell about 0.5% in a matter of minutes and stayed lower. Nasdaq 100 Index futures were hit harder, sustaining losses of about 0.8%. In Europe, stocks also dropped after spending most of the session in the green. Ferrari sank 5.5% in Italian trading, and technology shares led the decline among industries. “A lot of good news is priced in and we probably do need to digest a little bit,” said Aaron Clark, portfolio manager at GW&K Investment Management. The move sent a jolt through markets that had been relatively calm through the European trading day, with investors continuing to rotate out of pandemic winners like technology and into sectors poised to gain from economic reopening.An announcement from Taiwan that a Chinese jet had been detected by the country’s air force sparked chatter across trading desks, though was largely dismissed as routine event. Chinese military aircraft have been frequently entering Taiwanese air space and the defense ministry reported more than 20 incidents last month. Elsewhere in markets, trading was mixed. The dollar rose, while the pound and euro weakened. West Texas Intermediate futures gained as much as 2.1%, touching their highest since mid-March. Treasuries were little changed. Digital token Ether extended its surge to set another record, approaching $3,500. The token affiliated with the Ethereum blockchain -- a digital ledger popular for financial services and sales of so-called cryptocollectibles like online art -- is up about 1,500% in the past year. Here are some key events to watch this week:U.S. factory orders and durable goods are due TuesdayChicago Fed President Charles Evans gives a virtual speech at an event hosted by Bard College on Wednesday. Cleveland Fed President Loretta Mester gives a virtual speech to the Boston Economic ClubBank of England rate decision ThursdayThe April U.S. employment report is released on FridayHere are the main moves in markets:StocksFutures on the S&P 500 Index declined 0.6% as of 8:32 a.m. New York time.The Stoxx Europe 600 Index dipped 0.7%.The MSCI Asia Pacific Index decreased 0.1%.The MSCI Emerging Market Index dipped 0.1%.CurrenciesThe Bloomberg Dollar Spot Index gained 0.3%.The euro fell 0.3% to $1.2022.The British pound sank 0.5% to $1.3848.The onshore yuan was little changed at 6.475 per dollar.The Japanese yen weakened 0.1% to 109.16 per dollar.BondsThe yield on 10-year Treasuries declined less than one basis point to 1.59%.The yield on two-year Treasuries advanced one basis point to 0.16%.Germany’s 10-year yield dipped two basis points to -0.22%.Britain’s 10-year yield decreased three basis points to 0.815%.Japan’s 10-year yield was unchanged at 0.097%.CommoditiesWest Texas Intermediate crude increased 1.2% to $65.24 a barrel.Brent crude gained 1.3% to $68.41 a barrel.Gold weakened 0.3% to $1,786.78 an ounce.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. Business Bloomberg 210504 06h48m Oil Touches Seven-Week High as Traders Bet on Improving Demand (Bloomberg) -- Oil climbed on optimism that the resumption of economic activity in the U.S. and Europe will underpin demand.West Texas Intermediate futures gained as much as 2.1%, touching their highest since mid-March, while gasoline futures rose as much as 2.8%. The European Union plans to ease curbs for vaccinated travelers this summer, while states around the New York region are set to relax capacity restrictions. That’s offsetting concerns about weaker oil consumption in parts of Asia, including key importer India, where Covid-19 remains rampant.Oil has been climbing in recent weeks -- amid a broad advance across commodity markets -- as investors bet that the rollout of vaccines will permit a return to pre-pandemic conditions. Reflecting that rebound, U.S. Federal Reserve Chair Jerome Powell said on Monday that America’s economic recovery is “making real progress,” although he cautioned that the gains have been uneven.“Europe is about to join the U.S. in approaching some semblance of normality this summer, and this has overshadowed the Covid-19 crisis in India,” said Kevin Solomon, an energy economics analyst at brokerage StoneX Group. “The reopening theme is gaining momentum.”Crude’s gains on Tuesday were outpaced by those in petroleum products, most notably gasoline. In the U.S., profits to produce the fuel were at the highest since April 2020 as optimism grows that a reopening of the economy will boost demand for the fuel. There are already signs in several countries that drivers are getting back in their cars, and retail gasoline prices in the U.S. are already at the highest since October 2018.Follow live updates of tanker tracking figures throughout the day here.Meanwhile OPEC kept its crude production steady in April, ahead of a planned output hike this month. Production fell by 50,000 barrels day, with a setback in Libya largely offset by further gains for Iran.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. Business Reuters 210504 06h47m Hertz confirms new offer from Knighthead, Certares for bankruptcy exit The revised offer aims to fund Hertz's bankruptcy exit through direct common stock investments of $2.9 billion, direct preferred stock investments of $1.5 billion and a rights offering to raise $1.36 billion. A media report on Monday said Knighthead Capital Management and Certares Management's latest offer gives Hertz an enterprise value of more than $6.2 billion. Business Bloomberg 210504 06h42m Conoco Joins Big Oil’s Newfound Thrift With Debt Payback Plan (Bloomberg) -- ConocoPhillips will use a rebound in oil and gas prices to cut debt by about 25% over the next five years, signaling a focus on financial prudence even after completing one of the biggest shale takeovers in recent years.The Houston-based company will cut its borrowings by $5 billion, it said in a statement Tuesday, essentially returning its debt pile to the same level as before its purchase of Concho Resources Inc. earlier this year. The plan comes in addition to Conoco’s $1.5 billion-a-year share buyback, which may be increased by the planned sale of its 10% stake in Cenovus Energy Inc., valued at about $2 billion at current prices.U.S. oil giants Exxon Mobil Corp. and Chevron Corp. also signaled their intention to use surging cash flow to pay down debt and restore their financial strength last week, following a string of damaging losses caused by the Covid-19 pandemic in 2020. The big question is whether independent shale producers like Conoco will do the same given that they have even more debt to work through, or whether they choose to embark on fresh drilling to take advantage of higher oil and natural gas prices.READ: Exxon, Chevron Preach Prudence Even as Cash Waterfall ReturnsSo far, all signs point to discipline as the U.S. oil industry attempts to rebuild its reputation with investors after a decade of poor returns despite record production from the country’s booming shale fields.Conoco rose 2% in pre-market trading in New York, adding to this year’s 32% gain, roughly matching the increase in the S&P 500 Energy Index.Conoco’s adjusted earnings were 69 cents a share in the first quarter, beating the the 54-cent average of analysts’ estimates in a Bloomberg survey. Previously, Conoco warned its profit would be hit by $300 million of hedging losses in the period, partly due to positions inherited from takeover of Concho. The company has now closed out all those hedges, it 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. Howell date : 210504 07h24m25s Business Reuters 210504 07h13m Uber, GoPuff team up to boost essential item deliveries The pandemic hit Uber's ride-hailing services as it restricted outdoor movements, pushing the company to focus on its delivery business. GoPuff, which recently acquired liquor store chain BevMo!, delivers items such as food, alcohol and medicines in more than 650 U.S. cities. Uber has also made inroads into the liquor delivery market with its acquisition of the on-demand alcohol platform Drizly in February. Business Reuters 210504 07h05m Space startup Firefly raises $75 million, studies public listing Firefly Aerospace said on Tuesday it has raised $75 million in private capital, the first of two injections totaling up to $400 million that Chief Executive Tom Markusic anticipates will give his space startup a multibillion-dollar value by year-end. Reuters reported last week that Firefly was close to announcing a capital infusion to fund development of its ambitious spacecraft portfolio, anchored by two carbon-composite rockets. Firefly, U.S.-New Zealand startup Rocket Lab, and billionaire Richard Branson's Virgin Orbit are seen as front-runners in a new breed of firms building miniaturized launch systems to cash in on the exponential growth of compact satellites needing a ride to orbit in the coming years. Business Bloomberg 210504 06h59m S&P 500 Futures Turn Sharply Lower; Dollar Gains: Markets Wrap (Bloomberg) -- U.S. stock futures dropped sharply with European stocks just after 7:30 a.m. in New York, leaving traders scrambling for reasons to explain the move.The catalyst behind the decline was unclear, but traders speculated on military tensions between China and Taiwan, Singapore’s tougher lockdown and Ferrari NV’s decision to postpone financial targets. S&P 500 Index contracts fell about 0.5% in a matter of minutes and stayed lower. Nasdaq 100 Index futures were hit harder, sustaining losses of about 0.8%. In Europe, stocks also dropped after spending most of the session in the green. Ferrari sank 5.5% in Italian trading, and technology shares led the decline among industries. “A lot of good news is priced in and we probably do need to digest a little bit,” said Aaron Clark, portfolio manager at GW&K Investment Management. The move sent a jolt through markets that had been relatively calm through the European trading day, with investors continuing to rotate out of pandemic winners like technology and into sectors poised to gain from economic reopening.An announcement from Taiwan that a Chinese jet had been detected by the country’s air force sparked chatter across trading desks, though was largely dismissed as routine event. Chinese military aircraft have been frequently entering Taiwanese air space and the defense ministry reported more than 20 incidents last month. Elsewhere in markets, trading was mixed. The dollar rose, while the pound and euro weakened. West Texas Intermediate futures gained as much as 2.1%, touching their highest since mid-March. Treasuries were little changed. Digital token Ether extended its surge to set another record, approaching $3,500. The token affiliated with the Ethereum blockchain -- a digital ledger popular for financial services and sales of so-called cryptocollectibles like online art -- is up about 1,500% in the past year. Here are some key events to watch this week:U.S. factory orders and durable goods are due TuesdayChicago Fed President Charles Evans gives a virtual speech at an event hosted by Bard College on Wednesday. Cleveland Fed President Loretta Mester gives a virtual speech to the Boston Economic ClubBank of England rate decision ThursdayThe April U.S. employment report is released on FridayHere are the main moves in markets:StocksFutures on the S&P 500 Index declined 0.6% as of 8:32 a.m. New York time.The Stoxx Europe 600 Index dipped 0.7%.The MSCI Asia Pacific Index decreased 0.1%.The MSCI Emerging Market Index dipped 0.1%.CurrenciesThe Bloomberg Dollar Spot Index gained 0.3%.The euro fell 0.3% to $1.2022.The British pound sank 0.5% to $1.3848.The onshore yuan was little changed at 6.475 per dollar.The Japanese yen weakened 0.1% to 109.16 per dollar.BondsThe yield on 10-year Treasuries declined less than one basis point to 1.59%.The yield on two-year Treasuries advanced one basis point to 0.16%.Germany’s 10-year yield dipped two basis points to -0.22%.Britain’s 10-year yield decreased three basis points to 0.815%.Japan’s 10-year yield was unchanged at 0.097%.CommoditiesWest Texas Intermediate crude increased 1.2% to $65.24 a barrel.Brent crude gained 1.3% to $68.41 a barrel.Gold weakened 0.3% to $1,786.78 an ounce.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. Business Bloomberg 210504 06h48m Oil Touches Seven-Week High as Traders Bet on Improving Demand (Bloomberg) -- Oil climbed on optimism that the resumption of economic activity in the U.S. and Europe will underpin demand.West Texas Intermediate futures gained as much as 2.1%, touching their highest since mid-March, while gasoline futures rose as much as 2.8%. The European Union plans to ease curbs for vaccinated travelers this summer, while states around the New York region are set to relax capacity restrictions. That’s offsetting concerns about weaker oil consumption in parts of Asia, including key importer India, where Covid-19 remains rampant.Oil has been climbing in recent weeks -- amid a broad advance across commodity markets -- as investors bet that the rollout of vaccines will permit a return to pre-pandemic conditions. Reflecting that rebound, U.S. Federal Reserve Chair Jerome Powell said on Monday that America’s economic recovery is “making real progress,” although he cautioned that the gains have been uneven.“Europe is about to join the U.S. in approaching some semblance of normality this summer, and this has overshadowed the Covid-19 crisis in India,” said Kevin Solomon, an energy economics analyst at brokerage StoneX Group. “The reopening theme is gaining momentum.”Crude’s gains on Tuesday were outpaced by those in petroleum products, most notably gasoline. In the U.S., profits to produce the fuel were at the highest since April 2020 as optimism grows that a reopening of the economy will boost demand for the fuel. There are already signs in several countries that drivers are getting back in their cars, and retail gasoline prices in the U.S. are already at the highest since October 2018.Follow live updates of tanker tracking figures throughout the day here.Meanwhile OPEC kept its crude production steady in April, ahead of a planned output hike this month. Production fell by 50,000 barrels day, with a setback in Libya largely offset by further gains for Iran.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. Business Reuters 210504 06h47m Hertz confirms new offer from Knighthead, Certares for bankruptcy exit The revised offer aims to fund Hertz's bankruptcy exit through direct common stock investments of $2.9 billion, direct preferred stock investments of $1.5 billion and a rights offering to raise $1.36 billion. A media report on Monday said Knighthead Capital Management and Certares Management's latest offer gives Hertz an enterprise value of more than $6.2 billion. Business Bloomberg 210504 06h42m Conoco Joins Big Oil’s Newfound Thrift With Debt Payback Plan (Bloomberg) -- ConocoPhillips will use a rebound in oil and gas prices to cut debt by about 25% over the next five years, signaling a focus on financial prudence even after completing one of the biggest shale takeovers in recent years.The Houston-based company will cut its borrowings by $5 billion, it said in a statement Tuesday, essentially returning its debt pile to the same level as before its purchase of Concho Resources Inc. earlier this year. The plan comes in addition to Conoco’s $1.5 billion-a-year share buyback, which may be increased by the planned sale of its 10% stake in Cenovus Energy Inc., valued at about $2 billion at current prices.U.S. oil giants Exxon Mobil Corp. and Chevron Corp. also signaled their intention to use surging cash flow to pay down debt and restore their financial strength last week, following a string of damaging losses caused by the Covid-19 pandemic in 2020. The big question is whether independent shale producers like Conoco will do the same given that they have even more debt to work through, or whether they choose to embark on fresh drilling to take advantage of higher oil and natural gas prices.READ: Exxon, Chevron Preach Prudence Even as Cash Waterfall ReturnsSo far, all signs point to discipline as the U.S. oil industry attempts to rebuild its reputation with investors after a decade of poor returns despite record production from the country’s booming shale fields.Conoco rose 2% in pre-market trading in New York, adding to this year’s 32% gain, roughly matching the increase in the S&P 500 Energy Index.Conoco’s adjusted earnings were 69 cents a share in the first quarter, beating the the 54-cent average of analysts’ estimates in a Bloomberg survey. Previously, Conoco warned its profit would be hit by $300 million of hedging losses in the period, partly due to positions inherited from takeover of Concho. The company has now closed out all those hedges, it 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. Howell date : 210504 06h49m58s Business Reuters 210504 06h41m UPDATE 1-Brazilian inflation bubbles as annual March PPI hits record 33.5% Inflation pressures in Brazil remained strong in March, figures showed on Tuesday, with producer prices rising at their fastest annual rate since comparable records began seven years ago and pointing to further central bank interest rate increases ahead. The annual rate of factory gate inflation in Latin America's largest economy rose to 33.5% from 28.5%, the highest level since statistics agency IBGE's data series began in January 2014. The accumulated rate of inflation in the first quarter of the year was also a record for the January-March period, rising to 14.1% from 8.9% in the three months to February, IBGE said. Business Bloomberg 210504 06h40m Samsung Windfall Gives Lee’s Widow a $7.4 Billion Fortune (Bloomberg) -- Hong Ra-hee, the wife of the late Samsung Group Chairman Lee Kun-hee, boosted her fortune to more than $7 billion after receiving billions of dollars in stocks in the much-awaited transfer of her husband’s assets.Hong, 75, inherited about 83 million shares in Samsung Electronics Co., making her the largest individual shareholder in the tech giant with a 2.3% stake, according to a filing last week. Hong is the richest woman in South Korea with a net worth of $7.4 billion as of Monday’s stock market close, according to the Bloomberg Billionaires Index.It’s another consequence of the massive passing of wealth after Lee’s death, which saw his son Jay Y. cement control over the group after his holdings rose significantly in key affiliates. The late Lee’s only son is worth $12.6 billion, according to the index, while his sisters Boo-jin and Seo-hyun saw their wealth swell to $5 billion and $4.4 billion, respectively.“It’s a win-win situation for the family members,” said Park Ju-gun, head of Seoul-based research firm Leaders Index. “It has ensured more stable control for Jay Y. Lee, while other family members get more of a voice with their increased stakes.”A Samsung Electronics spokeswoman declined to comment on the family’s net worth.Billionaires will transfer more than $2 trillion within the next two decades, according to research by UBS Group AG and PwC. The families of Petr Kellner and Heinz Hermann Thiele are poised to inherit fortunes worth more than $30 billion after the entrepreneurs died suddenly this year at ages 56 and 79, respectively.The drama over succession at South Korea’s largest company has roiled the country since the late Lee, the patriarch and longtime head of Samsung Electronics, suffered a heart attack in 2014. Jay Y. Lee has been accused in two different lawsuits of illegal behavior to ensure control over the conglomerate and is currently serving a jail sentence after a conviction for bribery in the first case.Hong received the biggest slice of the late Lee’s stake in Samsung Electronics as it was divided in a 3:2:2:2 ratio between her and her three children. Hong got about 33% of the shareholding, while her children each received about 22%, according to the legally prescribed ratio.Stock holdings in the conglomerate’s other key affiliates, its de facto holding company Samsung C&T Corp. and Samsung SDS Co., were transferred according to the same ratio.But Jay Y. was able to tighten his grip as he received half his father’s shares in Samsung Life Insurance Co., raising his stake to more than 10% from 0.06%. Samsung Life owns 8.5% of Samsung Electronics.Last week, the family announced its plan to pay one of the largest inheritance-tax bills at more than 12 trillion won ($10.7 billion), as well as its intention to donate 1 trillion won for medical facilities and about 23,000 works of art, including pieces by Pablo Picasso and Claude Monet.Hong led Samsung’s Leeum museum, which houses works such as Jean-Michel Basquiat’s “Untitled (Black Figure)” and Gerhard Richter’s “Two Candles.” She resigned as director in 2017, and hasn’t taken any management roles at Samsung companies.“It’s an extraordinary concentration of wealth,” Park said. “This single family’s fortune creates inequality even among conglomerates.”(Adds other billionaire wealth transfers 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. Business Reuters 210504 06h31m UPDATE 1-China's 51job receives revised offer of over $5 bln May 4 (Reuters) - 51job Inc said on Tuesday it had received a revised takeover proposal valued at more than $5 billion from private equity firms DCP Services, Ocean Link Partners and the Chinese recruitment firm's co-founder and chief, Rick Yan. U.S-listed shares of 51job, which have fallen 10% after the first takeover bid, were up 14.3% premarket on Tuesday. A special committee will continue to evaluate the proposal in the light of the latest development, 51job said. Business Bloomberg 210504 06h21m S&P 500 Futures Turn Sharply Lower; Dollar Gains: Markets Wrap (Bloomberg) -- U.S. stock futures dropped sharply with European stocks just after 7:30 a.m. in New York, leaving traders scrambling for reasons to explain the move.The catalyst behind the decline was unclear, but traders speculated on military tensions between China and Taiwan, Singapore’s tougher lockdown and Ferrari NV’s decision to postpone financial targets. S&P 500 Index contracts fell about 0.5% in a matter of minutes. European shares also dropped after spending most of the session in the green. The dollar stayed higher, while Treasuries erased an earlier decline.The move sent a jolt through markets that had been relatively calm through the European trading day, with investors continuing to rotate out of pandemic winners like technology and into sectors poised to gain from economic reopening.Here are some key events to watch this week:U.S. trade balance, factory orders, durable goods are due TuesdayChicago Fed President Charles Evans gives a virtual speech at an event hosted by Bard College on Wednesday. Cleveland Fed President Loretta Mester gives a virtual speech to the Boston Economic ClubBank of England rate decision ThursdayThe April U.S. employment report is released on FridayFor 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. World Bloomberg 210504 06h19m Johnson Predicts Lockdown Ending June 21 as He Seeks Votes (Bloomberg) -- British Prime Minister Boris Johnson said coronavirus lockdown rules are set to be scrapped in seven weeks’ time, as he hailed the U.K.’s successful vaccine rollout ahead of key elections this week.On the campaign trail, Johnson said the pandemic data was likely to allow people in England to stay overnight with friends or relations, with indoor hospitality able to reopen from May 17.Remaining social distancing rules are also likely to be canceled from June 21, he added, although he warned that international travel will need to be carefully monitored after May 17 to avoid reimporting the virus again.The prime minister is making his case to millions of voters in England, Wales and Scotland who are taking part in elections on May 6. At stake is who gets to govern London and Scotland, as well as more than 140 local English districts. In Scotland, the prospect of a new referendum on independence from the rest of the U.K. hangs in the balance, depending on the result.The U.K.’s Future May Be in the Hands of Scotland’s Rebel YouthAfter a year on the back foot defending a pandemic strategy that delivered the worst death toll in Europe, Johnson has spent much of 2021 championing his government’s success at rolling out vaccines faster than most other wealthy nations.“With the vaccine rollout going the way that it is -- we have done 50 million jabs as I speak to you today, quarter of the adult population, one in four, have had two jabs,” the premier said on a visit to Hartlepool in northeastern England Monday. “You are seeing the results of that really starting to show up.”‘Roadmap’Given the vaccine rollout and the fall in coronavirus cases, the premier has come under pressure from members of his own party to accelerate the re-opening of the economy. But the government is sticking with its plan, which ministers have said is deliberately cautious to esnure it is irreversible.“We’ve got no plans to deviate from the earliest dates set out in the roadmap,” Johnson’s spokesman, Max Blain, told reporters on Tuesday.Johnson’s Popularity Faces a Key Test in a Brexit HeartlandJohnson said the next stage in the government’s plan to gradually ease lockdown on May 17 is on track. “But it also looks to me as though we’ll be able to say social distancing as we currently have to do it, the one-meter plus, I think we have got a good chance of being able to dispense with the one-meter plus from June 21.”Currently under “one-meter plus” guidelines, people are advised to maintain a distance of at least a meter from each other indoors, while wearing a face covering or taking other protective measures. Removing the rule could allow businesses and citizens to return to something closer to pre-pandemic normality. A review on social distancing will report before June 21, Blain said.Foreign TravelSpeaking on Tuesday, Trade Secretary Liz Truss urged people to hold off booking overseas holidays until the so-called travel task force issues its findings. The government has previously said non-essential travel will be allowed from May 17 at the earliest.“The really important thing is that we don’t move too fast and jeopardize the progress we’ve made, so people will have to wait a bit longer, I’m afraid, to be able to hear the news on exactly what’s happening on the travel front,” Truss told Sky News. “We need to be cautious and we need to make sure that we’re not simply importing the virus after we’ve successfully dealt with it in Britain.”Thursday’s elections take place against a difficult backdrop for Johnson. He’s beset by questions over whether he broke rules in the way he funded the refurbishment of his official apartment, following weeks of negative headlines about his conduct and the actions of some of his senior ministers. On Sunday, a senior Tory said the premier would have to resign if he’d broken the rules.“I know that people want to focus on trivia, but I’m focusing on the issues that matter,” Johnson said Monday.(Updates with comment from Johnson’s spokesman in eighth 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. U.S. Yahoo Finance 210504 06h15m Bill and Melinda Gates already decided how to divide wealth: 'Divorce is not something to waste money on' A petition for dissolution of marriage that Melinda Gates filed on Monday noted that, while the couple did not have a prenuptial agreement, they did have a separation agreement that lays out how they will divide their property. Howell date : 210503 21h04m42s World Bloomberg 210503 20h11m NYSE Eases Curbs; Australia’s Ban Backlash Grows: Virus Update (Bloomberg) -- The New York Stock Exchange will allow more traders on the floor if they’re fully vaccinated. The confirmed number of cases in the U.S. rose at the slowest pace in the week ended Sunday since the pandemic began, according to data compiled by Johns Hopkins University and Bloomberg.In Asia, India’s data is awaited as Prime Minister Narendra Modi resists pressure to lock down. Vietnam’s capital Hanoi is closing its schools from today, while Philippine President Rodrigo Duterte got his first dose of the Sinopharm vaccine, a Senator said. Hong Kong is isolating all residents of a building after finding a case. There is a widening backlash against Australia’s decision to ban citizens returning home from India.The Biden administration will support Pfizer’s move to start exporting U.S.-made doses of its vaccine, as the White House starts to boost U.S. production for shot-starved nations abroad. Emerging markets from Laos to Nepal have been reporting significant increases in infections in recent weeks.Key DevelopmentsGlobal Tracker: Cases top 153 million; deaths exceed 3.2 millionVaccine Tracker: More than 1.17 billion doses have been givenIt’s Not Just India. New Virus Waves Deluge Developing CountriesIndia Travel Ban Means U.S. Visa Workers Remain Stuck AbroadNew York City is roaring back to life, one year after its nadirWhat are vaccine passports and how would they work?: QuickTakeSubscribe to a daily update on the virus from Bloomberg’s Prognosis team here. Click CVID on the terminal for global data on cases and deaths.India to Get 220 Million Serum Shots (9:55 a.m. Hong Kong)Serum Institute of India, the world’s largest vaccine maker, will deliver 220 million doses to federal and state governments over the next few months. The central government will get 110 million of those doses of Covishield, the manufacturer said. “Vaccine manufacturing is a specialized process, it’s therefore not possible to ramp up production overnight,” CEO Adar Poonawalla said. Covering all of India’s 1.4 billion people is “not an easy task.” Earlier, Bloomberg News reported that the central government hasn’t placed an order larger than 110 million doses since sales started in December, citing a person familiar with the matter. The lack of a larger central stockpile, coupled with a devastating second wave which saw over 400,000 new daily cases on Saturday, is now making local state governments scramble and compete with one another in placing orders after Delhi turned over the responsibility of procuring vaccines to them last month.Philippines Expects Delay Due to India (9:40 a.m. Hong Kong) The Philippines expects its vaccine orders from India to be delayed or even reduced due to the virus surge in the South Asian nation. Vaccine shipments from India may arrive in September, according to Philippine vaccine czar Carlito Galvez, who earlier said the shots may be shipped starting this quarter. The Southeast Asian nation earlier this year signed a deal with the Serum Institute of India for 30 million doses of Novavax shots -- its biggest supply agreement to date.Hong Kong Isolates Some Tsim Sha Tsui Residents (9:20 a.m. Hong Kong)Hong Kong quarantined residents of a roughly 40-unit apartment building in Tsim Sha Tsui for 21 days after one of them was infected with the more transmissible N501Y mutant strain.The patient is a 28-year-old woman who visited India last month, the government said. She had been quarantined from April 4 to 25 at a Hong Kong hotel. On April 26, she sought medical advice at a local hospital, where she had a negative result on a Covid-19 test. On April 30, a test was indeterminate. She arranged to be admitted to hospital on May 2, when further tests found she was infected. The residents of her apartment building will be quarantined in government centers if they are asymptomatic, and treated in hospital if they have symptoms.Australian Backlash Grows Over India Ban (8:30 a.m. Hong Kong)Critics of Prime Minister Scott Morrison’s decision to ban returning Australians from virus-ravaged India now include lawmakers from his own Liberal-National coalition government.Fiona Martin told the Guardian that her government’s weekend announcement that Australian citizens in India who try to return home would be liable for five years in prison and fines of about $50,000 was “heavy-handed”. Fellow government lawmaker Dave Sharma said of the ban, which is in place until at least May 15: “There is little doubt this is an extreme measure and that it is causing significant hardship to the Australian Indian community.”As of late March, there were 36,000 Australian citizens stranded overseas and seeking to come home, with about 9,000 of those in India. The ban represents a new, nativist low for the government, writes Bloomberg Opinion’s Daniel Moss.Duterte Gets Vaccine, Senator Says (8:20 a.m. Hong Kong)Philippine Health Secretary Francisco Duque administered the Sinopharm vaccine to President Duterte, Senator Go, a long-time aide of the president, said on Facebook.Sinopharm is a Chinese company, and Duterte late Monday defended China as still being a benefactor for the Philippines, denouncing “rude” comments by his own foreign affairs secretary about China’s behavior in the South China Sea.Myanmar to Administer 500,000 Sinopharm Doses (8:00 a.m. Hong Kong)Myanmar’s Ministry of Information said it is administering doses donated by China. The nation has been wracked by protests and deadly crackdowns by the armed forces since a military coup on Feb. 1.Vietnam Closes Schools in Hanoi (8:15 a.m. Hong Kong)Vietnam’s capital city instructed its two million school-age pupils to stay home and study online from May 4 onwards, as local authorities from Hanoi to Ho Chi Minh City imposed stiff crackdowns on public gathering sites in an effort to quickly contain a rise in local Covid-19 cases.Asian Developing Countries See Rise (7:50 a.m. Hong Kong)Nations ranging from Laos to Thailand in Southeast Asia, and those bordering India such as Bhutan and Nepal, have been reporting significant surges in infections in the past few weeks. The increase is mainly because of more contagious virus variants, though complacency and lack of resources to contain the spread have also been cited.“It’s very important to realize that the situation in India can happen anywhere,” Hans Kluge, the regional director at the World Health Organization for Europe, said in a briefing last week. “This is still a huge challenge.”Singapore Defers Non-Urgent Surgeries (7:30 a.m. Hong Kong)Singapore’s Ministry of Health asked hospitals to defer non-urgent surgeries and admissions until further notice, in a bid to increase potential capacity for handling Covid-19 patients.The measures include limiting emergency room visits only for life-threatening or other emergency conditions, and encouraging tele-consultations instead of in-person medical visits where possible. The city-state saw its first fatality due to complications from Covid-19 in nearly two months over the weekend.NYSE Says More Staff Can Return If Vaccinated (6:47 a.m. HK)The New York Stock Exchange is opening further to vaccinated traders.Companies whose staff are based at the exchange will be permitted to raise their headcount if 100% of employees at the site can prove they’re fully vaccinated, according to a memo from NYSE Chief Operating Officer Michael Blaugrund.The changes go into effect May 10 and are based on an “improvement to public health conditions in the New York City area and the continuing progress of the nationwide vaccination rollout,” Blaugrund wrote in the memo.FDA to Approve Pfizer Shot for Teens: NYT (5:20 p.m. NY)The U.S. Food and Drug Administration is set to authorize the use of Pfizer-BioNTech vaccine to children 12 to 15 years of age as early as next week, the New York Times reported.If the authorization is granted, the Centers for Disease Control and Prevention’s vaccine advisory panel would likely meet the following day to review the clinical trial data and make recommendations for the vaccine’s use in adolescents, the newspaper said.Pfizer had reported that none of the adolescents in a clinical trial who received the vaccine developed symptomatic infections, a sign of significant protection.U.S. Trade Chief Discusses Vaccine IP (4:25 p.m. NY)U.S. Trade Representative Katherine Tai met virtually with World Intellectual Property Organization Director-General Daren Tang to discuss the role of intellectual property in dealing with the pandemic.They spoke about “specific challenges confronting developing countries, and the proposed waiver to certain provisions of the World Trade Organization’s agreement on trade-related aspects of intellectual property rights for the Covid-19 pandemic,” the USTR said in an emailed statement.Ohio Wants More Shots for Nursing Home Staff (4 p.m. NY)To combat vaccine hesitancy among nursing home workers Ohio Governor Mike DeWine said Monday that he’d give caretakers’ noses a rest if they’d get the shot.Nursing home employees are currently required to receive Covid-19 tests twice weekly. But DeWine, a Republican, said a new order will exempt employees that are fully vaccinated.“We hope this change will be encouragement to those who work in nursing homes that haven’t been vaccinated yet,” DeWine said, cracking a smile during a remote news conference he held from his Cedarville home. “If you’re unvaccinated, it’s twice-a-week you’ll be tested.”The announcement followed a state health investigation into a Covid-19 outbreak in an Ohio veterans home where roughly half of the staff has declined vaccination, according to local reports. DeWine said that state health officials continue to make shots available for anyone working in or living in long-term care.White House Backs Pfizer Move on Exports (2:50 p.m. NY)The Biden administration will support Pfizer Inc.’s move to begin exporting U.S.-made doses of its coronavirus vaccine, as the White House starts to unleash U.S. production for shot-starved nations abroad.The governments of Mexico and Canada said last week that they expected to begin receiving doses of Pfizer’s vaccine from the U.S., the first time the company’s U.S.-made shots are known to have been delivered to any buyer other than the American government itself.N.J. Offers Free Beer for Shots (2:20 p.m. NY)NYC Subways Returning to 24-Hour Service (12:01 p.m. N Y)Most capacity restrictions will be lifted across the tri-state region on May 19, New York Governor Andrew Cuomo said.New York City will again have 24-hour subways, boosting transportation options for workers as the most populous U.S. city inches toward normalcy.In the state, the outdoor food and beverage curfew will be lifted May 17, and the indoor curfew will be lifted on May 31, Cuomo said Monday. The outdoor large stadium capacity will go to 33% in New York state on May 19, Cuomo said. However, New York will maintain the 6-foot (1.8-meter) social-distancing policy recommended by the federal government, the governor said.BioNTech Soars to Record (11:45 a.m. NY)BioNTech SE, the vaccine maker partnered with Pfizer Inc. on its Covid-19 shot, rose as much as 10% on Monday as the stock rallied past $200 a share at the open, breaking yet another record after closing at new highs four out of five days last week.The German company was among the top gainers as the biotech sector regained lost footing and optimism about economies reopening bolstered stocks. Shots from Pfizer and BioNTech as well as Moderna Inc. have helped the U.S. reach more than 245 million doses administered, while side-stepping some of the safety concerns that have arisen for shots from AstraZeneca Plcand Johnson & Johnson.WHO Urges Countries to Accept IP Waivers (11:30 a.m. NY)Vaccine production capacity needs to increase in order to have a significant inoculation rate that will bring herd immunity, World Health Organization Director-General Tedros Adhanom Ghebreyesus said at a media briefing, adding that’s why a waiver on intellectual property is very important. There are more countries joining South Africa and India in being in favor of an IP waiver, and he said he hopes other nations will be convinced as well to make that a reality.“There’s no reason, to be honest, not to decide on an IP waiver,” Tedros said. “The provision of waiving IP was meant for emergency conditions, and the level of emergency we’re in now is unprecedented. If we can’t use it now, when can we use it?”NYC Employees Return to Office (11:05 a.m. NY)More than 80,000 New York City public workers returned to the office on Monday, as the city asked all employees who had been working from home to return to city buildings. Mayor Bill de Blasio pushed back on concerns by the city’s largest municipal worker union, which said not enough of its workers had been vaccinated yet. Only 34% of its workforce has been vaccinated, according to DC37 Executive Director Henry Garrido. De Blasio also said 180,000 of the 300,000 city workforce has received at least one shot.U.S. Cases Rise at Slowest Pace of Pandemic (10:35 NY)Confirmed coronavirus cases in the U.S. rose at the slowest pace since the pandemic began in the week ended Sunday, according to data compiled by Johns Hopkins University and Bloomberg. The 1.07% gain was below the previous record of 1.25% set in the seven days ended March 14.The total number of new infections increased by 344,448 last week, the lowest since the period ended Oct. 11, before the start of a surge intensified by the Thanksgiving and Christmas holiday seasons. The slowdown comes even as some states, such as Oregon, are experiencing outbreaks driven by variants of the virus.Germany’s Oktoberfest Canceled Again (10:30 a.m. NY)Authorities in Bavaria canceled Oktoberfest again this year. Oktoberfest is “the most global party,” and waiting longer to cancel it would only have caused more economic damage, Bavarian Premier Markus Soeder said on Monday. The beer festival drew 6.3 million people to Munich in 2019.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. Business Bloomberg 210503 20h09m TSG-Backed Coffee Chain Dutch Bros Plans IPO This Year (Bloomberg) -- Dutch Bros Coffee, backed by consumer-focused private equity firm TSG Consumer Partners, is planning an initial public offering for this year, according to people with knowledge of the matter.The company, based in Grants Pass, Oregon, is seeking to be valued in an IPO at about $3 billion, the people said, asking not to be identified because the information is private. Dutch Bros has held discussions with potential advisers about a listing, the people said.A final decision on pursuing an IPO hasn’t been made and the company’s plans could still change, they said.Representatives for Dutch Bros and TSG declined to comment.Dutch Bros, founded by brothers Dane and Travis Boersma in 1992, operates coffee shops in the western U.S.It sold a minority stake to TSG in 2018, according to a statement at the time. The deal price wasn’t disclosed.At the time of the TSG transaction, Dutch Bros planned to grow to 800 shops by 2023, according to the statement. As of January, the company had 400 locations, it said in a statement. Since the start of the coronavirus pandemic, many of its outlets have been operating on a drive-through only basis.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. Business Business Business Business Business Business Business Howell date : 210503 21h01m30s Howell date : 210503 19h01m01s World Bloomberg 210503 18h46m NYSE Eases Trader Curbs; Australia Backlash Grows: Virus Update (Bloomberg) -- The New York Stock Exchange will allow more traders on the floor if they’re fully vaccinated. The confirmed number of cases in the U.S. rose at the slowest pace in the week ended Sunday since the pandemic began, according to data compiled by Johns Hopkins University and Bloomberg.In Asia, India’s data is awaited as Prime Minister Narendra Modi resists pressure for lockdowns. Vietnam’s capital Hanoi is closing its schools from today, while Philippine President Rodrigo Duterte received his first dose of the Sinopharm vaccine, a Senator said. There is a widening backlash against Australia’s decision to ban citizens returning home from India.The Biden administration will support Pfizer’s move to start exporting U.S.-made doses of its vaccine, as the White House starts to boost U.S. production for shot-starved nations abroad. Emerging markets from Laos to Nepal have been reporting significant increases in infections in recent weeks.Key DevelopmentsGlobal Tracker: Cases top 153 million; deaths exceed 3.2 millionVaccine Tracker: More than 1.17 billion doses have been givenIt’s Not Just India. New Virus Waves Deluge Developing CountriesIndia Travel Ban Means U.S. Visa Workers Remain Stuck AbroadNew York City is roaring back to life, one year after its nadirWhat are vaccine passports and how would they work?: QuickTakeSubscribe to a daily update on the virus from Bloomberg’s Prognosis team here. Click CVID on the terminal for global data on cases and deaths.Australian Backlash Grows Over India Ban (8:30 a.m. Hong Kong)Critics of Prime Minister Scott Morrison’s decision to ban returning Australians from virus-ravaged India now include lawmakers from his own Liberal-National coalition government.Fiona Martin told the Guardian that her government’s weekend announcement that Australian citizens in India who try to return home would be liable for five years in prison and fines of about $50,000 was “heavy-handed”. Fellow government lawmaker Dave Sharma said of the ban, which is in place until at least May 15: “There is little doubt this is an extreme measure and that it is causing significant hardship to the Australian Indian community.”As of late March, there were 36,000 Australian citizens stranded overseas and seeking to come home, with about 9,000 of those in India. The ban represents a new, nativist low for the government, writes Bloomberg Opinion’s Daniel Moss. Duterte Gets Vaccine, Senator Says (8:20 a.m. Hong Kong)Philippine Health Secretary Francisco Duque administered the Sinopharm vaccine to President Duterte, Senator Go, a long-time aide of the president, said on Facebook. Sinopharm is a Chinese company, and Duterte late Monday defended China as still being a benefactor for the Philippines, denouncing “rude” comments by his own foreign affairs secretary about China’s behavior in the South China Sea. Myanmar to Administer 500,000 Sinopharm Doses (8:00 a.m. Hong Kong)Myanmar’s Ministry of Information said it is administering doses donated by China. The nation has been wracked by protests and deadly crackdowns by the armed forces since a military coup on Feb. 1.Vietnam Closes Schools in Hanoi (8:15 a.m. Hong Kong)Vietnam’s capital city instructed its two million school-age pupils to stay home and study online from May 4 onwards, as local authorities from Hanoi to Ho Chi Minh City imposed stiff crackdowns on public gathering sites in an effort to quickly contain a rise in local Covid-19 cases.Asian Developing Countries See Rise (7:50 a.m. Hong Kong)Nations ranging from Laos to Thailand in Southeast Asia, and those bordering India such as Bhutan and Nepal, have been reporting significant surges in infections in the past few weeks. The increase is mainly because of more contagious virus variants, though complacency and lack of resources to contain the spread have also been cited.“It’s very important to realize that the situation in India can happen anywhere,” Hans Kluge, the regional director at the World Health Organization for Europe, said in a briefing last week. “This is still a huge challenge.”Singapore Defers Non-Urgent Surgeries (7:30 a.m. Hong Kong)Singapore’s Ministry of Health asked hospitals to defer non-urgent surgeries and admissions until further notice, in a bid to increase potential capacity for handling Covid-19 patients.The measures include limiting emergency room visits only for life-threatening or other emergency conditions, and encouraging tele-consultations instead of in-person medical visits where possible. The city-state saw its first fatality due to complications from Covid-19 in nearly two months over the weekend. NYSE Says More Staff Can Return If Vaccinated (6:47 a.m. HK)The New York Stock Exchange is opening further to vaccinated traders.Companies whose staff are based at the exchange will be permitted to raise their headcount if 100% of employees at the site can prove they’re fully vaccinated, according to a memo from NYSE Chief Operating Officer Michael Blaugrund.The changes go into effect May 10 and are based on an “improvement to public health conditions in the New York City area and the continuing progress of the nationwide vaccination rollout,” Blaugrund wrote in the memo.FDA to Approve Pfizer Shot for Teens: NYT (5:20 p.m. NY)The U.S. Food and Drug Administration is set to authorize the use of Pfizer-BioNTech vaccine to children 12 to 15 years of age as early as next week, the New York Times reported.If the authorization is granted, the Centers for Disease Control and Prevention’s vaccine advisory panel would likely meet the following day to review the clinical trial data and make recommendations for the vaccine’s use in adolescents, the newspaper said.Pfizer had reported that none of the adolescents in a clinical trial who received the vaccine developed symptomatic infections, a sign of significant protection.U.S. Trade Chief Discusses Vaccine IP (4:25 p.m. NY)U.S. Trade Representative Katherine Tai met virtually with World Intellectual Property Organization Director-General Daren Tang to discuss the role of intellectual property in dealing with the pandemic.They spoke about “specific challenges confronting developing countries, and the proposed waiver to certain provisions of the World Trade Organization’s agreement on trade-related aspects of intellectual property rights for the Covid-19 pandemic,” the USTR said in an emailed statement.Ohio Wants More Shots for Nursing Home Staff (4 p.m. NY)To combat vaccine hesitancy among nursing home workers Ohio Governor Mike DeWine said Monday that he’d give caretakers’ noses a rest if they’d get the shot.Nursing home employees are currently required to receive Covid-19 tests twice weekly. But DeWine, a Republican, said a new order will exempt employees that are fully vaccinated.“We hope this change will be encouragement to those who work in nursing homes that haven’t been vaccinated yet,” DeWine said, cracking a smile during a remote news conference he held from his Cedarville home. “If you’re unvaccinated, it’s twice-a-week you’ll be tested.”The announcement followed a state health investigation into a Covid-19 outbreak in an Ohio veterans home where roughly half of the staff has declined vaccination, according to local reports. DeWine said that state health officials continue to make shots available for anyone working in or living in long-term care.White House Backs Pfizer Move on Exports (2:50 p.m. NY)The Biden administration will support Pfizer Inc.’s move to begin exporting U.S.-made doses of its coronavirus vaccine, as the White House starts to unleash U.S. production for shot-starved nations abroad.The governments of Mexico and Canada said last week that they expected to begin receiving doses of Pfizer’s vaccine from the U.S., the first time the company’s U.S.-made shots are known to have been delivered to any buyer other than the American government itself.N.J. Offers Free Beer for Shots (2:20 p.m. NY)NYC Subways Returning to 24-Hour Service (12:01 p.m. N Y)Most capacity restrictions will be lifted across the tri-state region on May 19, New York Governor Andrew Cuomo said.New York City will again have 24-hour subways, boosting transportation options for workers as the most populous U.S. city inches toward normalcy.In the state, the outdoor food and beverage curfew will be lifted May 17, and the indoor curfew will be lifted on May 31, Cuomo said Monday. The outdoor large stadium capacity will go to 33% in New York state on May 19, Cuomo said. However, New York will maintain the 6-foot (1.8-meter) social-distancing policy recommended by the federal government, the governor said.BioNTech Soars to Record (11:45 a.m. NY)BioNTech SE, the vaccine maker partnered with Pfizer Inc. on its Covid-19 shot, rose as much as 10% on Monday as the stock rallied past $200 a share at the open, breaking yet another record after closing at new highs four out of five days last week.The German company was among the top gainers as the biotech sector regained lost footing and optimism about economies reopening bolstered stocks. Shots from Pfizer and BioNTech as well as Moderna Inc. have helped the U.S. reach more than 245 million doses administered, while side-stepping some of the safety concerns that have arisen for shots from AstraZeneca Plcand Johnson & Johnson.WHO Urges Countries to Accept IP Waivers (11:30 a.m. NY)Vaccine production capacity needs to increase in order to have a significant inoculation rate that will bring herd immunity, World Health Organization Director-General Tedros Adhanom Ghebreyesus said at a media briefing, adding that’s why a waiver on intellectual property is very important. There are more countries joining South Africa and India in being in favor of an IP waiver, and he said he hopes other nations will be convinced as well to make that a reality.“There’s no reason, to be honest, not to decide on an IP waiver,” Tedros said. “The provision of waiving IP was meant for emergency conditions, and the level of emergency we’re in now is unprecedented. If we can’t use it now, when can we use it?”NYC Employees Return to Office (11:05 a.m. NY)More than 80,000 New York City public workers returned to the office on Monday, as the city asked all employees who had been working from home to return to city buildings. Mayor Bill de Blasio pushed back on concerns by the city’s largest municipal worker union, which said not enough of its workers had been vaccinated yet. Only 34% of its workforce has been vaccinated, according to DC37 Executive Director Henry Garrido. De Blasio also said 180,000 of the 300,000 city workforce has received at least one shot.U.S. Cases Rise at Slowest Pace of Pandemic (10:35 NY)Confirmed coronavirus cases in the U.S. rose at the slowest pace since the pandemic began in the week ended Sunday, according to data compiled by Johns Hopkins University and Bloomberg. The 1.07% gain was below the previous record of 1.25% set in the seven days ended March 14.The total number of new infections increased by 344,448 last week, the lowest since the period ended Oct. 11, before the start of a surge intensified by the Thanksgiving and Christmas holiday seasons. The slowdown comes even as some states, such as Oregon, are experiencing outbreaks driven by variants of the virus.Germany’s Oktoberfest Canceled Again (10:30 a.m. NY)Authorities in Bavaria canceled Oktoberfest again this year. Oktoberfest is “the most global party,” and waiting longer to cancel it would only have caused more economic damage, Bavarian Premier Markus Soeder said on Monday. The beer festival drew 6.3 million people to Munich in 2019.Florida Prohibits Vaccine ‘Passports’ (10:30 a.m. NY)Florida businesses and government agencies will be prohibited from requiring people to show proof of a Covid-19 vaccination, starting July 1, under a measure Governor Ron DeSantis signed Monday. In the meantime, all local emergency orders related to the pandemic will be suspended under an executive order signed by the Republican governor.Businesses, government agencies, or schools face $5,000 for each violation of the ban.Similar legislation is pending in Iowa. Wisconsin’s governor vetoed a ban on employer vaccine mandates, but Montana’s governor is expected to sign a bill barring private and public employers from requiring workers to be vaccinated.Hanoi Schools to Close as Cases Rise (9:23 a.m. NY)Vietnam’s capital instructed its 2 million school-age pupils to stay home and study online starting May 4, as local authorities from Hanoi to Ho Chi Minh City imposed stiff crackdowns on public gathering sites to quickly contain a rise in local cases.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. Business Bloomberg 210503 18h36m Asia Stocks Mixed, Futures Dip After Tech Retreat: Markets Wrap (Bloomberg) -- Asian stocks were mixed and U.S. equity futures retreated Tuesday in the wake of a dip in technology giants on Wall Street. The dollar steadied after declining along with Treasury yields.South Korean shares slid while Australia rose modestly. Trading will be limited with Japan and China among markets closed for holidays. U.S. equity contracts fell after the S&P 500 Index ended near session lows and shares such as Tesla Inc. and Amazon.com Inc. weighed on the Nasdaq 100.Ten-year Treasury yields dropped back to around 1.6% amid comments from Federal Reserve Chair Jerome Powell that the economic recovery is patchy.Commodities held an advance after silver led gains in precious metals as the prospect of near-zero rates for longer boosted demand. Oil was steady after climbing over 1%. Digital token Ether extended its surge to set another record.Data Monday showed growth among U.S. manufacturers cooled in April, while a gauge of prices paid for materials jumped to the highest since 2008. Powell reiterated that progress in the recovery has been uneven across racial and income divides. New York Fed President John Williams said current conditions are “not nearly enough” for a shift in the monetary policy stance.“The world remains almost perfect for equities,” Chris Iggo, a chief investment officer at AXA Investment Managers, said in a note. Despite strong growth, rising earnings and rich valuations, “no-one is taking the punch-bowl away for now,” he added.Markets seem to be looking through the persistent threat of the pandemic, focusing instead on the relative success of the vaccine rollouts in much of the developed world. Meanwhile, fierce new Covid-19 waves are enveloping India and parts of Southeast Asia, placing severe strain on their health-care systems and prompting appeals for help.Here are some key events to watch this week:U.S. trade balance, factory orders, durable goods are due TuesdayThe Reserve Bank of Australia monetary policy decision is coming TuesdayChicago Fed President Charles Evans gives a virtual speech at an event hosted by Bard College on Wednesday. Cleveland Fed President Loretta Mester gives a virtual speech to the Boston Economic ClubBank of England rate decision ThursdayThe April U.S. employment report is released on FridayThese are some of the main moves in markets:StocksS&P 500 futures fell 0.2% as of 8:28 a.m. in Hong Kong. The S&P 500 rose 0.3%. Nasdaq 100 contracts slipped 0.3%Australia’s S&P/ASX 200 Index rose 0.3%South Korea’s Kospi shed 0.4%Hang Seng Index futures added 0.8%CurrenciesThe yen traded at 109.14 per dollarThe offshore yuan was at 6.4742 per dollarThe Bloomberg Dollar Spot Index rose 0.1%The euro traded at $1.2055BondsTen-year Treasury futures were little changed. The yield on 10-year Treasuries declined almost three basis points to 1.60%. Cash Treasuries won’t trade in Asia TuesdayAustralia’s 10-year bond yield fell about one basis point to 1.74%CommoditiesWest Texas Intermediate crude rose 0.1% to $64.57 a barrelGold was at $1,791.46 an ounce after climbing 1.3%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. Business Bloomberg 210503 18h18m Hong Kong’s Strong Growth Masks Uneven Recovery, Vaccine Risks (Bloomberg) -- Hong Kong’s economy posted its fastest growth in more than a decade in the first quarter, though the recovery is an uneven one led mainly by exports and held back by weak consumer spending and a slow vaccine rollout.After declining for a record six quarters, gross domestic product surged 7.8% from a year earlier, advance data showed Monday, beating all estimates in a Bloomberg survey of economists. The figures were partly distorted by the low base a year ago when the economy was in lockdown, but the quarter-on-quarter expansion, a better reflection of growth momentum, also outperformed.The latest data show an export sector that’s booming but consumption that remains subdued. The city’s hotels and retail shops are reliant on tourism spending, especially from visitors from the mainland, and border closures have hurt those sectors. Low vaccination rates are hindering the city’s ability to reopen and fully rebound from the pandemic.“Having a high vaccination rate is important to have the border open between Hong Kong and China and also between Hong Kong and other foreign economies,” said Iris Pang, chief economist for Greater China at ING Bank NV. “Without the border open economic activities will only grow slowly.”Hong Kong has endured its most economically challenging two-year stretch in its history, posting unprecedented back-to-back annual contractions in 2019 and 2020 as the city grappled with waves of political unrest, fallout from the deteriorating U.S.-China relationship, and the Covid-19 pandemic.The economy has recently showed signs of stronger recovery. Exports surged above HK$400 billion ($51.5 billion) for the first time ever in March while unemployment dropped the most since 2003 in the month, easing back from a 17-year high. Retail sales by value jumped 30% in February, the first increase in that measure since January 2019.​The government will announce revised figures for the first quarter as well as its latest projections for full-year growth on May 14. Financial Secretary Paul Chan has previously estimated the economy will expand 3.5% to 5.5% in 2021, but that’s likely to be revised higher now, given the strong first-quarter growth.Citigroup Inc. raised its full-year growth forecast by 2 percentage points to 6%, while Goldman Sachs Group Inc. economists upgraded theirs to 9.2% from 4.6%.Still, economic activity remains below pre-recession levels as the pandemic and social distancing measures continue to weigh on consumer spending and tourism, the government said in its report Monday. While export demand is set to remain strong, “the revival of tourism-related activities will likely be slow in view of the still austere pandemic situation in many places around the world,” it said.“Gradual relaxation of social distancing bodes well for domestic activities,” said Raymond Yeung, chief economist for Greater China at Australia and New Zealand Banking Group Ltd. “What’s concerning is the relatively slow vaccination rate and the variant of virus strain. The government will maintain a tough stance in virus control measure.”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. Business Bloomberg 210503 18h15m Paper Excellence Explores Deal to Take Domtar Private (Bloomberg) -- Canadian paper and packaging company Paper Excellence is exploring a deal to acquire U.S. rival Domtar Corp., according to people familiar with the matter. Domtar rose as much as 21% in after-market trading.The companies are working with advisers on a potential transaction that would take U.S.-listed Domtar private, said the people, who asked not to be identified because the details aren’t public. A deal could value Domtar’s shares in the mid-$50s, one of the people said. No final decision has been made and talks could fall through.Domtar, based in Fort Mill, South Carolina, closed regular trading up 2.8% at $40.52 in New York Monday, giving the company a market value of about $2 billion.A representative for Domtar declined to comment. Representatives for Paper Excellence didn’t immediately respond to requests for comment.Domtar, which traces its roots to a British timber company founded in 1848, is one of North America’s top producers of so-called freesheet paper, which is used for everything from business memos to copy paper.In January, it agreed to sell its personal care business to American Industrial Partners for $920 million. Domtar, with 2020 sales of about $3.7 billion, was added to the S&P SmallCap 600 index last month, after Chief Executive Officer John Williams returned from a temporary medical leave in March, after recovering from Covid-19.Paper Excellence, based in Richmond, British Columbia, manufactures pulp packaging and specialty paper and has eight facilities in Canada, according to its website. The company also owns about a 49% stake in a mill located in Tres Lagoas in Brazil.(Updates with facilities 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. U.S. Reuters 210503 18h10m UPDATE 1-Airlines refer 1,300 unruly passengers to U.S. FAA -agency The U.S. Federal Aviation Administration (FAA) said on Monday that airlines have referred approximately 1,300 unruly-passenger reports since February and the agency has identified potential violations in about 260 cases. In March, FAA Administrator Steve Dickson said he would indefinitely extend a "zero tolerance policy" on unruly air passengers first imposed in January, and said that airlines had reported hundrends of cases since December -- most which involved passengers not wearing masks as required on airplanes. The FAA has initiated about 20 enforcement cases and is preparing a number of additional enforcement actions, the agency said Monday. Howell date : 210503 17h22m01s Business Yahoo Finance Video 210503 17h09m Sweet Chick CEO on how the company adapted during the pandemic John Seymour, Sweet Chick CEO, joined Yahoo Finance Live to discuss how the restaurnt adapted during COVID-19 and his outlook for this year. Business Reuters 210503 17h09m UK's Arrival, Uber to develop electric ride-hailing 'Arrival Car' British electric van and bus maker Arrival will develop an electric car for Uber Technologies Inc that will go into production in late 2023, the two companies said on Tuesday. Arrival and Uber will also explore a strategic relationship in key markets, including the United Kingdom, European Union and United States. The "Arrival Car" will be an "affordable, purpose-built electric vehicle for ride-hailing," and will go into production in the fourth quarter of 2023, the companies said. Business Reuters 210503 17h05m Epic Games CEO cites Apple's 'total control' over iPhones at first day of antitrust trial The chief executive of "Fortnite" creator Epic Games testified on Monday that he knew he was breaking Apple Inc's App Store rules by putting Epic's own in-app payment system into the game last year but wanted to highlight Apple's sway over the world's iPhone users, which now total 1 billion. "I wanted the world to see that Apple exercises total control over all software on iOS, and it can use that control to deny users' access to apps,” Tim Sweeney said from behind layers of plexiglass in a federal courthouse in Oakland, California, on the first day of an antitrust trial against Apple. The trial, expected to run three weeks, brings to a head a lawsuit Epic brought last year in the U.S. District Court for the Northern District of California that centers on two Apple practices that have become cornerstones of its business: Apple's requirement that virtually all third-party software for the world's 1 billion iPhones be distributed through its App Store, and the requirement that developers use Apple's in-app purchase system, which charges commissions of up to 30%. Business Bloomberg 210503 16h56m Stocks in Asia to Open Up; Dollar, Yields Declined: Markets Wrap (Bloomberg) -- Asian stocks look set to open modestly higher Tuesday after a muted session on Wall Street, where technology giants weighed on the market. The dollar dropped with Treasury yields.Futures pointed higher in Australia and Hong Kong. Trading will be limited with Japan and China among markets closed for holidays. U.S. contracts opened little changed after the S&P 500 Index ended near session lows, while Tesla Inc. and Amazon.com Inc. weighed on the Nasdaq 100. Benchmark 10-year Treasury yields dropped back to around 1.6% as Federal Reserve Chair Jerome Powell said the economic recovery remains patchy.Commodities advanced, with silver leading gains in precious metals as the prospect of near-zero rates for longer boosted demand. Copper and oil climbed more than 1% amid broad rallies in energy and material stocks. The second-largest cryptocurrency, Ether, extended its surge to fresh records, nearing $3,400 early in Asia trade. As a reminder of the fragility of the economy and rising inflation risks, Monday’s data showed growth among U.S. manufacturers cooled in April, while a gauge of prices paid for materials jumped to the highest since 2008. Powell reiterated that progress in the recovery has been uneven across racial and income divides. New York Fed President John Williams said current conditions are “not nearly enough” for a shift in the monetary policy stance.“The world remains almost perfect for equities,” Chris Iggo, a chief investment officer at AXA Investment Managers, said in a note. Despite strong growth, rising earnings and rich valuations, “no-one is taking the punch-bowl away for now.”Markets seem still to be looking through the persistent threat of the pandemic, focusing instead on the relative success of the vaccine rollouts in much of the developed world. Meanwhile, fierce new Covid-19 waves are enveloping India and parts of Southeast Asia, placing severe strain on their health-care systems and prompting appeals for help.Here are some key events to watch this week:U.S. trade balance, factory orders, durable goods are due TuesdayThe Reserve Bank of Australia monetary policy decision is coming TuesdayChicago Fed President Charles Evans gives a virtual speech at an event hosted by Bard College on Wednesday. Cleveland Fed President Loretta Mester gives a virtual speech to the Boston Economic ClubBank of England rate decision ThursdayThe April U.S. employment report is released on FridayThese are some of the main moves in markets:StocksS&P 500 futures were little changed as of 8:33 a.m. in Sydney. The S&P 500 rose 0.3%The Nasdaq 100 fell 0.4%Australia’s S&P/ASX 200 Index futures rose 0.2%Hang Seng Index futures added 0.8%CurrenciesThe yen traded at 109.03 per dollarThe offshore yuan was at 6.4707 per dollarThe Bloomberg Dollar Spot Index fell 0.3%The euro traded at $1.2061BondsThe yield on 10-year Treasuries declined almost three basis points to 1.60%. Cash Treasuries won’t trade in Asia TuesdayCommoditiesWest Texas Intermediate crude rose 0.2% to $64.62 a barrelGold was at $1,792.98 an ounce after climbing 1.3%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. World Bloomberg 210503 16h54m Colombian Finance Chief Quits After Days of Violent Protests (Bloomberg) -- Colombia’s Finance Minister Alberto Carrasquilla resigned Monday after days of bloody street protests pushed the government to shelve his plan to raise taxes.President Ivan Duque named Jose Manuel Restrepo, the current Trade Minister, to replace him. Carrasquilla has been attacked by lawmakers from across the political spectrum since presenting his proposal last month, and said in a statement that his continued presence in government would “make it difficult to build the necessary consensus quickly and efficiently.”Deputy Finance Minister Juan Pablo Zarate also quit, he said in reply to written questions.Their departure adds to the chaos in the Andean nation, grappling with nearly full ICUs from a Covid spike. Demonstrators and police are clashing daily in Bogota and other cities, while truckers and taxi drivers block roads and labor unions march in the streets.“In the absence of a gradual and orderly tax reform, the nation’s macroeconomic stability will be seriously compromised,” the ministry said in its statement.Incoming minister Restrepo was educated in the U.K. at the London School of Economics and the University of Bath, according to his biography on the presidency’s website. He has taught economics, and was rector of Rosario University in Bogota. He was named Minister of Trade in 2018. The peso weakened 1.6% to 3,804 per dollar, the worst performer among more than 100 currencies tracked by Bloomberg, as the withdrawal of the tax bill and Carrasquilla’s exit triggered a selloff in Colombian assets.The nation’s dollar bonds also fell, as investors see an increased risk of its credit rating being cut to junk in the near future.Colombia’s dilemma exposes the chasm between rich and poor nations increased by the pandemic. While the U.S. and European Union spend trillions in stimulus with barely a peep from their debt markets, Colombia is desperate to ward off the wrath of bond vigilantes. It’s one of the few countries in the region that has consistently paid its debts but, faced with its worst contraction on record, is scrambling to rein in its budget deficit and stave off credit-rating downgrades that could send its borrowing costs soaring.The proposed tax increases were intended to curb the ballooning fiscal deficit and fund welfare payments to address the surge in poverty caused by the pandemic.Duque said Sunday his administration will ditch some of the most unpopular proposals, such as extending value added tax to more goods, and urged lawmakers to reach consensus around a new proposal to help the country climb out of a worsening fiscal hole.New MarchesHowever, the withdrawal of the tax bill failed to end the demonstrations. Unions called for new marches on Wednesday to protest a range of other grievances, including government plans to overhaul the health system.Over the weekend, the government deployed troops to back up police in major cities, while protests spread even to provincial towns. At least 17 people have lost their lives during the demonstrations, and Bogota’s mayor’s office said 41 stations of its mass transport bus system had been put out of action by vandals.Colombia is among the first major emerging markets to attempt to implement large tax increases. Other countries in the region may face similar difficulties trying to boost revenue in economies that are still being ravaged by the pandemic, and nowhere near having recovered from last year’s slump.Both Fitch Ratings and S&P Global Ratings put the country one notch above junk. Moody’s Investors Service, which rates Colombia two notches above junk, said in a report Monday that the withdrawal of the tax bill is negative for the nation’s credit outlook.(Updates with appointment of new minister in 2nd 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. Business Bloomberg 210503 16h44m Epic CEO Denies Attack on Apple App Store Is to Boost Fortnite (Bloomberg) -- Epic Games Inc. Chief Executive Officer Tim Sweeney sought moral high ground on the first day of a trial against Apple Inc., saying he sued the world’s most valuable company not to boost sales of his Fortnite game but to stand up for developers cheated out of commissions by the App Store.Apple claims in court filings that Epic set up a public relations campaign last year to make Apple look like a “bad guy” to “revive flagging interest in Fortnite.”Sweeney, the first witness to take the stand in federal court in Oakland, California, said the lawsuit accusing the App Store of behaving like a monopoly while taking as much as a 30% cut from developers had nothing to do with Fortnite usage. “The lawsuit is entirely about Apple’s practices,” Sweeney said when questioned by Epic’s attorney.Later, the CEO held his ground when he was grilled on cross-examination about whether the lawsuit was intended to generate excitement around Fortnite.Sweeney said he waited to sue Apple until last year because it took him time to realize the “negative impact” of App Store policies. “It got to the point when Apple was making more profit from a developer’s app in the App Store than the developer was making himself.”Apple is facing a backlash from global regulators and some app developers who say its standard App Store fee of 30% and others policies are unfair and designed to benefit the iPhone maker’s own services. The fight with Epic blew up in August when the game maker told customers it would begin offering a discounted direct purchase plan for items in Fortnite, and Apple then removed the game app, cutting off access for more than a billion iPhone and iPad customers.Epic’s 2020 revenue totaled $5.1 billion, Sweeney said. When asked by Epic’s attorney how important Apple’s iOS is to his company, he said it was “vital.”U.S. District Judge Yvonne Gonzalez Rogers asked Sweeney if he knew Epic was violating its App Store contract when it released a “hotfix” update to open up its discounted direct-payment option in Fortnite. Epic knew its move was in direct violation of its contractual obligations with Apple, Sweeney said. He said he did so to “show the world exactly what the ramifications of Apple’s policies were.”On cross examination, Apple’s attorney challenged Sweeney over why he isn’t complaining about other gaming platforms, including Sony Corp., that also charge 30% commissions.Sweeney testified that he’s at odds with Apple’s practice of only giving users the option to make app purchases through its App Store and blocking them from downloading other app marketplaces on iOS mobile devices.(Updates with Sweeney’s cross-examination testimony)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. Business Yahoo Finance 210503 16h26m Stock market news live updates: Stock futures open flat Stock futures traded little changed Monday evening after a mixed session earlier in the day, with investors awaiting the next set of corporate earnings results. Howell date : 210503 17h20m37s Business Yahoo Finance Video 210503 17h09m Sweet Chick CEO on how the company adapted during the pandemic John Seymour, Sweet Chick CEO, joined Yahoo Finance Live to discuss how the restaurnt adapted during COVID-19 and his outlook for this year. Business Reuters 210503 17h08m UK's Arrival, Uber to develop electric ride-hailing 'Arrival Car' British electric van and bus maker Arrival will develop an electric car for Uber Technologies Inc that will go into production in late 2023, the two companies said on Tuesday. Arrival and Uber will also explore a strategic relationship in key markets, including the United Kingdom, European Union and United States. The "Arrival Car" will be an "affordable, purpose-built electric vehicle for ride-hailing," and will go into production in the fourth quarter of 2023, the companies said. Business Reuters 210503 17h04m Epic Games CEO cites Apple's 'total control' over iPhones at first day of antitrust trial The chief executive of "Fortnite" creator Epic Games testified on Monday that he knew he was breaking Apple Inc's App Store rules by putting Epic's own in-app payment system into the game last year but wanted to highlight Apple's sway over the world's iPhone users, which now total 1 billion. "I wanted the world to see that Apple exercises total control over all software on iOS, and it can use that control to deny users' access to apps,” Tim Sweeney said from behind layers of plexiglass in a federal courthouse in Oakland, California, on the first day of an antitrust trial against Apple. The trial, expected to run three weeks, brings to a head a lawsuit Epic brought last year in the U.S. District Court for the Northern District of California that centers on two Apple practices that have become cornerstones of its business: Apple's requirement that virtually all third-party software for the world's 1 billion iPhones be distributed through its App Store, and the requirement that developers use Apple's in-app purchase system, which charges commissions of up to 30%. Business Bloomberg 210503 16h56m Stocks in Asia to Open Up; Dollar, Yields Declined: Markets Wrap (Bloomberg) -- Asian stocks look set to open modestly higher Tuesday after a muted session on Wall Street, where technology giants weighed on the market. The dollar dropped with Treasury yields.Futures pointed higher in Australia and Hong Kong. Trading will be limited with Japan and China among markets closed for holidays. U.S. contracts opened little changed after the S&P 500 Index ended near session lows, while Tesla Inc. and Amazon.com Inc. weighed on the Nasdaq 100. Benchmark 10-year Treasury yields dropped back to around 1.6% as Federal Reserve Chair Jerome Powell said the economic recovery remains patchy.Commodities advanced, with silver leading gains in precious metals as the prospect of near-zero rates for longer boosted demand. Copper and oil climbed more than 1% amid broad rallies in energy and material stocks. The second-largest cryptocurrency, Ether, extended its surge to fresh records, nearing $3,400 early in Asia trade. As a reminder of the fragility of the economy and rising inflation risks, Monday’s data showed growth among U.S. manufacturers cooled in April, while a gauge of prices paid for materials jumped to the highest since 2008. Powell reiterated that progress in the recovery has been uneven across racial and income divides. New York Fed President John Williams said current conditions are “not nearly enough” for a shift in the monetary policy stance.“The world remains almost perfect for equities,” Chris Iggo, a chief investment officer at AXA Investment Managers, said in a note. Despite strong growth, rising earnings and rich valuations, “no-one is taking the punch-bowl away for now.”Markets seem still to be looking through the persistent threat of the pandemic, focusing instead on the relative success of the vaccine rollouts in much of the developed world. Meanwhile, fierce new Covid-19 waves are enveloping India and parts of Southeast Asia, placing severe strain on their health-care systems and prompting appeals for help.Here are some key events to watch this week:U.S. trade balance, factory orders, durable goods are due TuesdayThe Reserve Bank of Australia monetary policy decision is coming TuesdayChicago Fed President Charles Evans gives a virtual speech at an event hosted by Bard College on Wednesday. Cleveland Fed President Loretta Mester gives a virtual speech to the Boston Economic ClubBank of England rate decision ThursdayThe April U.S. employment report is released on FridayThese are some of the main moves in markets:StocksS&P 500 futures were little changed as of 8:33 a.m. in Sydney. The S&P 500 rose 0.3%The Nasdaq 100 fell 0.4%Australia’s S&P/ASX 200 Index futures rose 0.2%Hang Seng Index futures added 0.8%CurrenciesThe yen traded at 109.03 per dollarThe offshore yuan was at 6.4707 per dollarThe Bloomberg Dollar Spot Index fell 0.3%The euro traded at $1.2061BondsThe yield on 10-year Treasuries declined almost three basis points to 1.60%. Cash Treasuries won’t trade in Asia TuesdayCommoditiesWest Texas Intermediate crude rose 0.2% to $64.62 a barrelGold was at $1,792.98 an ounce after climbing 1.3%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. World Bloomberg 210503 16h53m Colombian Finance Chief Quits After Days of Violent Protests (Bloomberg) -- Colombia’s Finance Minister Alberto Carrasquilla resigned Monday after days of bloody street protests pushed the government to shelve his plan to raise taxes.President Ivan Duque named Jose Manuel Restrepo, the current Trade Minister, to replace him. Carrasquilla has been attacked by lawmakers from across the political spectrum since presenting his proposal last month, and said in a statement that his continued presence in government would “make it difficult to build the necessary consensus quickly and efficiently.”Deputy Finance Minister Juan Pablo Zarate also quit, he said in reply to written questions.Their departure adds to the chaos in the Andean nation, grappling with nearly full ICUs from a Covid spike. Demonstrators and police are clashing daily in Bogota and other cities, while truckers and taxi drivers block roads and labor unions march in the streets.“In the absence of a gradual and orderly tax reform, the nation’s macroeconomic stability will be seriously compromised,” the ministry said in its statement.Incoming minister Restrepo was educated in the U.K. at the London School of Economics and the University of Bath, according to his biography on the presidency’s website. He has taught economics, and was rector of Rosario University in Bogota. He was named Minister of Trade in 2018. The peso weakened 1.6% to 3,804 per dollar, the worst performer among more than 100 currencies tracked by Bloomberg, as the withdrawal of the tax bill and Carrasquilla’s exit triggered a selloff in Colombian assets.The nation’s dollar bonds also fell, as investors see an increased risk of its credit rating being cut to junk in the near future.Colombia’s dilemma exposes the chasm between rich and poor nations increased by the pandemic. While the U.S. and European Union spend trillions in stimulus with barely a peep from their debt markets, Colombia is desperate to ward off the wrath of bond vigilantes. It’s one of the few countries in the region that has consistently paid its debts but, faced with its worst contraction on record, is scrambling to rein in its budget deficit and stave off credit-rating downgrades that could send its borrowing costs soaring.The proposed tax increases were intended to curb the ballooning fiscal deficit and fund welfare payments to address the surge in poverty caused by the pandemic.Duque said Sunday his administration will ditch some of the most unpopular proposals, such as extending value added tax to more goods, and urged lawmakers to reach consensus around a new proposal to help the country climb out of a worsening fiscal hole.New MarchesHowever, the withdrawal of the tax bill failed to end the demonstrations. Unions called for new marches on Wednesday to protest a range of other grievances, including government plans to overhaul the health system.Over the weekend, the government deployed troops to back up police in major cities, while protests spread even to provincial towns. At least 17 people have lost their lives during the demonstrations, and Bogota’s mayor’s office said 41 stations of its mass transport bus system had been put out of action by vandals.Colombia is among the first major emerging markets to attempt to implement large tax increases. Other countries in the region may face similar difficulties trying to boost revenue in economies that are still being ravaged by the pandemic, and nowhere near having recovered from last year’s slump.Both Fitch Ratings and S&P Global Ratings put the country one notch above junk. Moody’s Investors Service, which rates Colombia two notches above junk, said in a report Monday that the withdrawal of the tax bill is negative for the nation’s credit outlook.(Updates with appointment of new minister in 2nd 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. Business Bloomberg 210503 16h43m Epic CEO Denies Attack on Apple App Store Is to Boost Fortnite (Bloomberg) -- Epic Games Inc. Chief Executive Officer Tim Sweeney sought moral high ground on the first day of a trial against Apple Inc., saying he sued the world’s most valuable company not to boost sales of his Fortnite game but to stand up for developers cheated out of commissions by the App Store.Apple claims in court filings that Epic set up a public relations campaign last year to make Apple look like a “bad guy” to “revive flagging interest in Fortnite.”Sweeney, the first witness to take the stand in federal court in Oakland, California, said the lawsuit accusing the App Store of behaving like a monopoly while taking as much as a 30% cut from developers had nothing to do with Fortnite usage. “The lawsuit is entirely about Apple’s practices,” Sweeney said when questioned by Epic’s attorney.Later, the CEO held his ground when he was grilled on cross-examination about whether the lawsuit was intended to generate excitement around Fortnite.Sweeney said he waited to sue Apple until last year because it took him time to realize the “negative impact” of App Store policies. “It got to the point when Apple was making more profit from a developer’s app in the App Store than the developer was making himself.”Apple is facing a backlash from global regulators and some app developers who say its standard App Store fee of 30% and others policies are unfair and designed to benefit the iPhone maker’s own services. The fight with Epic blew up in August when the game maker told customers it would begin offering a discounted direct purchase plan for items in Fortnite, and Apple then removed the game app, cutting off access for more than a billion iPhone and iPad customers.Epic’s 2020 revenue totaled $5.1 billion, Sweeney said. When asked by Epic’s attorney how important Apple’s iOS is to his company, he said it was “vital.”U.S. District Judge Yvonne Gonzalez Rogers asked Sweeney if he knew Epic was violating its App Store contract when it released a “hotfix” update to open up its discounted direct-payment option in Fortnite. Epic knew its move was in direct violation of its contractual obligations with Apple, Sweeney said. He said he did so to “show the world exactly what the ramifications of Apple’s policies were.”On cross examination, Apple’s attorney challenged Sweeney over why he isn’t complaining about other gaming platforms, including Sony Corp., that also charge 30% commissions.Sweeney testified that he’s at odds with Apple’s practice of only giving users the option to make app purchases through its App Store and blocking them from downloading other app marketplaces on iOS mobile devices.(Updates with Sweeney’s cross-examination testimony)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. Business Yahoo Finance 210503 16h25m Stock market news live updates: Stock futures open flat Stock futures traded little changed Monday evening after a mixed session earlier in the day, with investors awaiting the next set of corporate earnings results. Howell date : 210503 17h14m24s Business Reuters 210503 17h04m Epic Games CEO cites Apple's 'total control' over iPhones at first day of antitrust trial The chief executive of "Fortnite" creator Epic Games testified on Monday that he knew he was breaking Apple Inc's App Store rules by putting Epic's own in-app payment system into the game last year but wanted to highlight Apple's sway over the world's iPhone users, which now total 1 billion. "I wanted the world to see that Apple exercises total control over all software on iOS, and it can use that control to deny users' access to apps,” Tim Sweeney said from behind layers of plexiglass in a federal courthouse in Oakland, California, on the first day of an antitrust trial against Apple. The trial, expected to run three weeks, brings to a head a lawsuit Epic brought last year in the U.S. District Court for the Northern District of California that centers on two Apple practices that have become cornerstones of its business: Apple's requirement that virtually all third-party software for the world's 1 billion iPhones be distributed through its App Store, and the requirement that developers use Apple's in-app purchase system, which charges commissions of up to 30%. Business Bloomberg 210503 16h56m Stocks in Asia to Open Up; Dollar, Yields Declined: Markets Wrap (Bloomberg) -- Asian stocks look set to open modestly higher Tuesday after a muted session on Wall Street, where technology giants weighed on the market. The dollar dropped with Treasury yields.Futures pointed higher in Australia and Hong Kong. Trading will be limited with Japan and China among markets closed for holidays. U.S. contracts opened little changed after the S&P 500 Index ended near session lows, while Tesla Inc. and Amazon.com Inc. weighed on the Nasdaq 100. Benchmark 10-year Treasury yields dropped back to around 1.6% as Federal Reserve Chair Jerome Powell said the economic recovery remains patchy.Commodities advanced, with silver leading gains in precious metals as the prospect of near-zero rates for longer boosted demand. Copper and oil climbed more than 1% amid broad rallies in energy and material stocks. The second-largest cryptocurrency, Ether, extended its surge to fresh records, nearing $3,400 early in Asia trade. As a reminder of the fragility of the economy and rising inflation risks, Monday’s data showed growth among U.S. manufacturers cooled in April, while a gauge of prices paid for materials jumped to the highest since 2008. Powell reiterated that progress in the recovery has been uneven across racial and income divides. New York Fed President John Williams said current conditions are “not nearly enough” for a shift in the monetary policy stance.“The world remains almost perfect for equities,” Chris Iggo, a chief investment officer at AXA Investment Managers, said in a note. Despite strong growth, rising earnings and rich valuations, “no-one is taking the punch-bowl away for now.”Markets seem still to be looking through the persistent threat of the pandemic, focusing instead on the relative success of the vaccine rollouts in much of the developed world. Meanwhile, fierce new Covid-19 waves are enveloping India and parts of Southeast Asia, placing severe strain on their health-care systems and prompting appeals for help.Here are some key events to watch this week:U.S. trade balance, factory orders, durable goods are due TuesdayThe Reserve Bank of Australia monetary policy decision is coming TuesdayChicago Fed President Charles Evans gives a virtual speech at an event hosted by Bard College on Wednesday. Cleveland Fed President Loretta Mester gives a virtual speech to the Boston Economic ClubBank of England rate decision ThursdayThe April U.S. employment report is released on FridayThese are some of the main moves in markets:StocksS&P 500 futures were little changed as of 8:33 a.m. in Sydney. The S&P 500 rose 0.3%The Nasdaq 100 fell 0.4%Australia’s S&P/ASX 200 Index futures rose 0.2%Hang Seng Index futures added 0.8%CurrenciesThe yen traded at 109.03 per dollarThe offshore yuan was at 6.4707 per dollarThe Bloomberg Dollar Spot Index fell 0.3%The euro traded at $1.2061BondsThe yield on 10-year Treasuries declined almost three basis points to 1.60%. Cash Treasuries won’t trade in Asia TuesdayCommoditiesWest Texas Intermediate crude rose 0.2% to $64.62 a barrelGold was at $1,792.98 an ounce after climbing 1.3%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. World Bloomberg 210503 16h53m Colombian Finance Chief Quits After Days of Violent Protests (Bloomberg) -- Colombia’s Finance Minister Alberto Carrasquilla resigned Monday after days of bloody street protests pushed the government to shelve his plan to raise taxes.President Ivan Duque named Jose Manuel Restrepo, the current Trade Minister, to replace him. Carrasquilla has been attacked by lawmakers from across the political spectrum since presenting his proposal last month, and said in a statement that his continued presence in government would “make it difficult to build the necessary consensus quickly and efficiently.”Deputy Finance Minister Juan Pablo Zarate also quit, he said in reply to written questions.Their departure adds to the chaos in the Andean nation, grappling with nearly full ICUs from a Covid spike. Demonstrators and police are clashing daily in Bogota and other cities, while truckers and taxi drivers block roads and labor unions march in the streets.“In the absence of a gradual and orderly tax reform, the nation’s macroeconomic stability will be seriously compromised,” the ministry said in its statement.Incoming minister Restrepo was educated in the U.K. at the London School of Economics and the University of Bath, according to his biography on the presidency’s website. He has taught economics, and was rector of Rosario University in Bogota. He was named Minister of Trade in 2018. The peso weakened 1.6% to 3,804 per dollar, the worst performer among more than 100 currencies tracked by Bloomberg, as the withdrawal of the tax bill and Carrasquilla’s exit triggered a selloff in Colombian assets.The nation’s dollar bonds also fell, as investors see an increased risk of its credit rating being cut to junk in the near future.Colombia’s dilemma exposes the chasm between rich and poor nations increased by the pandemic. While the U.S. and European Union spend trillions in stimulus with barely a peep from their debt markets, Colombia is desperate to ward off the wrath of bond vigilantes. It’s one of the few countries in the region that has consistently paid its debts but, faced with its worst contraction on record, is scrambling to rein in its budget deficit and stave off credit-rating downgrades that could send its borrowing costs soaring.The proposed tax increases were intended to curb the ballooning fiscal deficit and fund welfare payments to address the surge in poverty caused by the pandemic.Duque said Sunday his administration will ditch some of the most unpopular proposals, such as extending value added tax to more goods, and urged lawmakers to reach consensus around a new proposal to help the country climb out of a worsening fiscal hole.New MarchesHowever, the withdrawal of the tax bill failed to end the demonstrations. Unions called for new marches on Wednesday to protest a range of other grievances, including government plans to overhaul the health system.Over the weekend, the government deployed troops to back up police in major cities, while protests spread even to provincial towns. At least 17 people have lost their lives during the demonstrations, and Bogota’s mayor’s office said 41 stations of its mass transport bus system had been put out of action by vandals.Colombia is among the first major emerging markets to attempt to implement large tax increases. Other countries in the region may face similar difficulties trying to boost revenue in economies that are still being ravaged by the pandemic, and nowhere near having recovered from last year’s slump.Both Fitch Ratings and S&P Global Ratings put the country one notch above junk. Moody’s Investors Service, which rates Colombia two notches above junk, said in a report Monday that the withdrawal of the tax bill is negative for the nation’s credit outlook.(Updates with appointment of new minister in 2nd 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. Business Bloomberg 210503 16h43m Epic CEO Denies Attack on Apple App Store Is to Boost Fortnite (Bloomberg) -- Epic Games Inc. Chief Executive Officer Tim Sweeney sought moral high ground on the first day of a trial against Apple Inc., saying he sued the world’s most valuable company not to boost sales of his Fortnite game but to stand up for developers cheated out of commissions by the App Store.Apple claims in court filings that Epic set up a public relations campaign last year to make Apple look like a “bad guy” to “revive flagging interest in Fortnite.”Sweeney, the first witness to take the stand in federal court in Oakland, California, said the lawsuit accusing the App Store of behaving like a monopoly while taking as much as a 30% cut from developers had nothing to do with Fortnite usage. “The lawsuit is entirely about Apple’s practices,” Sweeney said when questioned by Epic’s attorney.Later, the CEO held his ground when he was grilled on cross-examination about whether the lawsuit was intended to generate excitement around Fortnite.Sweeney said he waited to sue Apple until last year because it took him time to realize the “negative impact” of App Store policies. “It got to the point when Apple was making more profit from a developer’s app in the App Store than the developer was making himself.”Apple is facing a backlash from global regulators and some app developers who say its standard App Store fee of 30% and others policies are unfair and designed to benefit the iPhone maker’s own services. The fight with Epic blew up in August when the game maker told customers it would begin offering a discounted direct purchase plan for items in Fortnite, and Apple then removed the game app, cutting off access for more than a billion iPhone and iPad customers.Epic’s 2020 revenue totaled $5.1 billion, Sweeney said. When asked by Epic’s attorney how important Apple’s iOS is to his company, he said it was “vital.”U.S. District Judge Yvonne Gonzalez Rogers asked Sweeney if he knew Epic was violating its App Store contract when it released a “hotfix” update to open up its discounted direct-payment option in Fortnite. Epic knew its move was in direct violation of its contractual obligations with Apple, Sweeney said. He said he did so to “show the world exactly what the ramifications of Apple’s policies were.”On cross examination, Apple’s attorney challenged Sweeney over why he isn’t complaining about other gaming platforms, including Sony Corp., that also charge 30% commissions.Sweeney testified that he’s at odds with Apple’s practice of only giving users the option to make app purchases through its App Store and blocking them from downloading other app marketplaces on iOS mobile devices.(Updates with Sweeney’s cross-examination testimony)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. Business Yahoo Finance 210503 16h26m Stock market news live updates: Stock futures open flat Stock futures traded little changed Monday evening after a mixed session earlier in the day, with investors awaiting the next set of corporate earnings results. Business Bloomberg 210503 16h23m NYSE Says More Staff Can Return to Trading Floor If Vaccinated (Bloomberg) -- The New York Stock Exchange is opening up further for vaccinated traders.Companies whose staff are based at the historic NYSE floor will be permitted to raise their headcount if 100% of employees at the site can prove they’re fully vaccinated, according to a memo from NYSE Chief Operating Officer Michael Blaugrund.The changes go into effect May 10 and are “based on improvement to public health conditions in the New York City area and the continuing progress of the nationwide vaccination rollout,” Blaugrund wrote in the memo.Vaccinated trading-floor members will also be excluded from the NYSE’s random Covid testing program. They’ll be allowed to remove face coverings when seated at their workstations, provided they maintain social distancing of six feet or more. Masks are still required when moving around the trading floor, according to the memo.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. Howell date : 210503 16h59m01s Business Reuters 210503 16h35m Canada's Nutrien boosts earnings outlook, posts bigger than expected quarterly profit Canada's Nutrien Ltd , the world's biggest fertilizer producer by capacity, raised its full-year profit guidance and swung to a bigger than expected quarterly profit on Monday, as crop prices climb. Prices of potash, Nutrien's core crop nutrient, have risen this year in Brazil and the United States. Nutrien increased its 2021 guidance for adjusted net earnings to between $2.55 and $3.25 per share, up from a previous range of $2.05 to $2.75 per share. World Bloomberg 210503 16h33m Colombian Finance Chief Quits After Days of Violent Protests (Bloomberg) -- Colombia’s Finance Minister Alberto Carrasquilla resigned Monday after days of bloody street protests pushed the government to shelve his plan to raise taxes.Carrasquilla has been attacked by lawmakers from across the political spectrum since presenting his proposal last month, and said in a statement that his continued presence in government would “make it difficult to build the necessary consensus quickly and efficiently.”Deputy Finance Minister Juan Pablo Zarate also quit, he said in reply to written questions. Their departure adds to the chaos in the Andean nation, grappling with nearly full ICUs from a Covid spike. Demonstrators and police are clashing daily in Bogota and other cities, while truckers and taxi drivers block roads and labor unions march in the streets.“In the absence of a gradual and orderly tax reform, the nation’s macroeconomic stability will be seriously compromised,” the ministry said in its statement.The peso weakened 1.6% to 3,804 per dollar, the worst performer among more than 100 currencies tracked by Bloomberg, as the withdrawal of the tax bill and Carrasquilla’s exit triggered a selloff in Colombian assets.The nation’s dollar bonds also fell, as investors see an increased risk of its credit rating being cut to junk in the near future.Colombia’s dilemma exposes the chasm between rich and poor nations increased by the pandemic. While the U.S. and European Union spend trillions in stimulus with barely a peep from their debt markets, Colombia is desperate to ward off the wrath of bond vigilantes. It’s one of the few countries in the region that has consistently paid its debts but, faced with its worst contraction on record, is scrambling to rein in its budget deficit and stave off credit-rating downgrades that could send its borrowing costs soaring.The proposed tax increases were intended to curb the ballooning fiscal deficit and fund welfare payments to address the surge in poverty caused by the pandemic.President Ivan Duque said Sunday his administration will ditch some of the most unpopular proposals, such as extending value added tax to more goods, and urged lawmakers to reach consensus around a new proposal to help the country climb out of a worsening fiscal hole.New MarchesHowever, the withdrawal of the tax bill failed to end the demonstrations. Unions called for new marches on Wednesday to protest a range of other grievances, including government plans to overhaul the health system.Over the weekend, the government deployed troops to back up police in major cities, while protests spread even to provincial towns. At least 17 people have lost their lives during the demonstrations, and Bogota’s mayor’s office said 41 stations of its mass transport bus system had been put out of action by vandals.Colombia is among the first major emerging markets to attempt to implement large tax increases. Other countries in the region may face similar difficulties trying to boost revenue in economies that are still being ravaged by the pandemic, and nowhere near having recovered from last year’s slump.Both Fitch Ratings and S&P Global Ratings put the country one notch above junk. Moody’s Investors Service, which rates Colombia two notches above junk, said in a report Monday that the withdrawal of the tax bill is negative for the nation’s credit outlook.(Updates with Deputy Minister Zarate’s resignation.)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. Business Yahoo Finance 210503 16h26m Stock market news live updates: Stock futures open flat Stock futures traded little changed Monday evening after a mixed session earlier in the day, with investors awaiting the next set of corporate earnings results. Business Bloomberg 210503 16h23m NYSE Says More Staff Can Return to Trading Floor If Vaccinated (Bloomberg) -- The New York Stock Exchange is opening up further for vaccinated traders.Companies whose staff are based at the historic NYSE floor will be permitted to raise their headcount if 100% of employees at the site can prove they’re fully vaccinated, according to a memo from NYSE Chief Operating Officer Michael Blaugrund.The changes go into effect May 10 and are “based on improvement to public health conditions in the New York City area and the continuing progress of the nationwide vaccination rollout,” Blaugrund wrote in the memo.Vaccinated trading-floor members will also be excluded from the NYSE’s random Covid testing program. They’ll be allowed to remove face coverings when seated at their workstations, provided they maintain social distancing of six feet or more. Masks are still required when moving around the trading floor, according to the memo.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. World Bloomberg 210503 16h13m Argentina Wealth Tax Fought by the Rich Raises $2.4 Billion (Bloomberg) -- Discover what’s driving the global economy and what it means for policy makers, businesses, investors and you with The New Economy Daily. Sign up hereArgentina’s government raised 74% of the amount it had targeted from a controversial new tax on the country’s wealthiest citizens.The government collected 223 billion pesos ($2.4 billion), according to an official statement. Early data show that 10,000 people with assets over 200 million pesos paid the new tax, which goes as high as 5.25% of their assets’ value.Initiatives to tax the rich have gained support throughout Latin America as the region struggles to recover from its worst recession in two centuries. In Argentina, millionaires resisted paying the levy right up to the government’s April 16 deadline. In early April, only 2% of taxpayers subject to the levy had paid it, according to a preliminary report.The amount raised is higher than expected, equivalent to 0.5% of GDP, and will improve the government’s tax collection numbers for April, according to Buenos Aires-based consulting firm Alberdi Partners. The government expects to use the proceeds for pandemic spending including health policies, small business subsidies, scholarships and housing projects.The government announced it had raised 817.9 billion pesos in taxes in April, up 105.2% from the previous year.Local PushbackThe tax was met with local backlash by those affected. About 220 taxpayers, including the family of late soccer legend Diego Maradona and soccer star Carlos Tevez, took legal steps against the government to avoid paying, claiming it’s confiscatory or unconstitutional. If the justice system rules against the tax, that would create a setback for the government, according to Marcos Buscaglia, founder at Alberdi.“It’s likely that part of the proceeds will have to be returned to taxpayers if the judiciary rules against the tax,” Buscaglia said.Some tax lawyers say that the real number of millionaires in Argentina is much higher than the figure from the AFIP, the tax authority, meaning that thousands may be holding onto their cash.“The data released by the taxman is an attempt to show that lots of people are paying, but it does not reflect reality,” Ivan Sasovsky, CEO of tax law firm Sasovsky & Asociados said.Even though the deadline has passed, wealthy Argentines are expected to continue filing challenges to the tax. Gaston Miani, a partner and head of tax and customs law at Tavarone, Rovelli, Salim & Miani, said he expected at least 5,000 suits to be filed during the month of May as lawyers and clients gather proof to show the tax’s harmful effects.AFIP wasn’t immediately available for comment.(Updates with April tax collection figure in fifth 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. Business Reuters 210503 16h04m Exclusive: KKR raises $18.5 billion for flagship North America buyout fund - sources KKR & Co Inc has amassed about $18.5 billion for its latest flagship North America private equity fund, raising its biggest-ever fund in less than five months, people familiar with the matter said on Monday. It also happened with limited travel among KKR executives amid the COVID-19 pandemic, underscoring investor demand for private-equity funds that promise to outperform the booming stock market. KKR raised about $17 billion for KKR North America Fund XIII from investors including sovereign wealth funds, family offices and public and private pension funds, the sources said. Business Howell date : 210503 16h57m17s Business Reuters 210503 16h35m Canada's Nutrien boosts earnings outlook, posts bigger than expected quarterly profit Canada's Nutrien Ltd , the world's biggest fertilizer producer by capacity, raised its full-year profit guidance and swung to a bigger than expected quarterly profit on Monday, as crop prices climb. Prices of potash, Nutrien's core crop nutrient, have risen this year in Brazil and the United States. Nutrien increased its 2021 guidance for adjusted net earnings to between $2.55 and $3.25 per share, up from a previous range of $2.05 to $2.75 per share. World Bloomberg 210503 16h32m Colombian Finance Chief Quits After Days of Violent Protests (Bloomberg) -- Colombia’s Finance Minister Alberto Carrasquilla resigned Monday after days of bloody street protests pushed the government to shelve his plan to raise taxes.Carrasquilla has been attacked by lawmakers from across the political spectrum since presenting his proposal last month, and said in a statement that his continued presence in government would “make it difficult to build the necessary consensus quickly and efficiently.”Deputy Finance Minister Juan Pablo Zarate also quit, he said in reply to written questions. Their departure adds to the chaos in the Andean nation, grappling with nearly full ICUs from a Covid spike. Demonstrators and police are clashing daily in Bogota and other cities, while truckers and taxi drivers block roads and labor unions march in the streets.“In the absence of a gradual and orderly tax reform, the nation’s macroeconomic stability will be seriously compromised,” the ministry said in its statement.The peso weakened 1.6% to 3,804 per dollar, the worst performer among more than 100 currencies tracked by Bloomberg, as the withdrawal of the tax bill and Carrasquilla’s exit triggered a selloff in Colombian assets.The nation’s dollar bonds also fell, as investors see an increased risk of its credit rating being cut to junk in the near future.Colombia’s dilemma exposes the chasm between rich and poor nations increased by the pandemic. While the U.S. and European Union spend trillions in stimulus with barely a peep from their debt markets, Colombia is desperate to ward off the wrath of bond vigilantes. It’s one of the few countries in the region that has consistently paid its debts but, faced with its worst contraction on record, is scrambling to rein in its budget deficit and stave off credit-rating downgrades that could send its borrowing costs soaring.The proposed tax increases were intended to curb the ballooning fiscal deficit and fund welfare payments to address the surge in poverty caused by the pandemic.President Ivan Duque said Sunday his administration will ditch some of the most unpopular proposals, such as extending value added tax to more goods, and urged lawmakers to reach consensus around a new proposal to help the country climb out of a worsening fiscal hole.New MarchesHowever, the withdrawal of the tax bill failed to end the demonstrations. Unions called for new marches on Wednesday to protest a range of other grievances, including government plans to overhaul the health system.Over the weekend, the government deployed troops to back up police in major cities, while protests spread even to provincial towns. At least 17 people have lost their lives during the demonstrations, and Bogota’s mayor’s office said 41 stations of its mass transport bus system had been put out of action by vandals.Colombia is among the first major emerging markets to attempt to implement large tax increases. Other countries in the region may face similar difficulties trying to boost revenue in economies that are still being ravaged by the pandemic, and nowhere near having recovered from last year’s slump.Both Fitch Ratings and S&P Global Ratings put the country one notch above junk. Moody’s Investors Service, which rates Colombia two notches above junk, said in a report Monday that the withdrawal of the tax bill is negative for the nation’s credit outlook.(Updates with Deputy Minister Zarate’s resignation.)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. Business Yahoo Finance 210503 16h26m Stock market news live updates: Stock futures open flat Stock futures traded little changed Monday evening after a mixed session earlier in the day, with investors awaiting the next set of corporate earnings results. Business Bloomberg 210503 16h23m NYSE Says More Staff Can Return to Trading Floor If Vaccinated (Bloomberg) -- The New York Stock Exchange is opening up further for vaccinated traders.Companies whose staff are based at the historic NYSE floor will be permitted to raise their headcount if 100% of employees at the site can prove they’re fully vaccinated, according to a memo from NYSE Chief Operating Officer Michael Blaugrund.The changes go into effect May 10 and are “based on improvement to public health conditions in the New York City area and the continuing progress of the nationwide vaccination rollout,” Blaugrund wrote in the memo.Vaccinated trading-floor members will also be excluded from the NYSE’s random Covid testing program. They’ll be allowed to remove face coverings when seated at their workstations, provided they maintain social distancing of six feet or more. Masks are still required when moving around the trading floor, according to the memo.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. World Bloomberg 210503 16h13m Argentina Wealth Tax Fought by the Rich Raises $2.4 Billion (Bloomberg) -- Discover what’s driving the global economy and what it means for policy makers, businesses, investors and you with The New Economy Daily. Sign up hereArgentina’s government raised 74% of the amount it had targeted from a controversial new tax on the country’s wealthiest citizens.The government collected 223 billion pesos ($2.4 billion), according to an official statement. Early data show that 10,000 people with assets over 200 million pesos paid the new tax, which goes as high as 5.25% of their assets’ value.Initiatives to tax the rich have gained support throughout Latin America as the region struggles to recover from its worst recession in two centuries. In Argentina, millionaires resisted paying the levy right up to the government’s April 16 deadline. In early April, only 2% of taxpayers subject to the levy had paid it, according to a preliminary report.The amount raised is higher than expected, equivalent to 0.5% of GDP, and will improve the government’s tax collection numbers for April, according to Buenos Aires-based consulting firm Alberdi Partners. The government expects to use the proceeds for pandemic spending including health policies, small business subsidies, scholarships and housing projects.The government announced it had raised 817.9 billion pesos in taxes in April, up 105.2% from the previous year.Local PushbackThe tax was met with local backlash by those affected. About 220 taxpayers, including the family of late soccer legend Diego Maradona and soccer star Carlos Tevez, took legal steps against the government to avoid paying, claiming it’s confiscatory or unconstitutional. If the justice system rules against the tax, that would create a setback for the government, according to Marcos Buscaglia, founder at Alberdi.“It’s likely that part of the proceeds will have to be returned to taxpayers if the judiciary rules against the tax,” Buscaglia said.Some tax lawyers say that the real number of millionaires in Argentina is much higher than the figure from the AFIP, the tax authority, meaning that thousands may be holding onto their cash.“The data released by the taxman is an attempt to show that lots of people are paying, but it does not reflect reality,” Ivan Sasovsky, CEO of tax law firm Sasovsky & Asociados said.Even though the deadline has passed, wealthy Argentines are expected to continue filing challenges to the tax. Gaston Miani, a partner and head of tax and customs law at Tavarone, Rovelli, Salim & Miani, said he expected at least 5,000 suits to be filed during the month of May as lawyers and clients gather proof to show the tax’s harmful effects.AFIP wasn’t immediately available for comment.(Updates with April tax collection figure in fifth 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. Business Reuters 210503 16h04m Exclusive: KKR raises $18.5 billion for flagship North America buyout fund - sources KKR & Co Inc has amassed about $18.5 billion for its latest flagship North America private equity fund, raising its biggest-ever fund in less than five months, people familiar with the matter said on Monday. It also happened with limited travel among KKR executives amid the COVID-19 pandemic, underscoring investor demand for private-equity funds that promise to outperform the booming stock market. KKR raised about $17 billion for KKR North America Fund XIII from investors including sovereign wealth funds, family offices and public and private pension funds, the sources said. Business Howell date : 210503 16h28m11s World Bloomberg 210503 16h15m Colombian Finance Chief Quits After Days of Violent Protests (Bloomberg) -- Colombia’s Finance Minister Alberto Carrasquilla resigned Monday after days of bloody street protests pushed the government to shelve his plan to raise taxes.Carrasquilla has been attacked by lawmakers from across the political spectrum since presenting his proposal last month, and said in a statement that his continued presence in government would “make it difficult to build the necessary consensus quickly and efficiently.”His departure adds to the chaos in the Andean nation, grappling with nearly full ICUs from a Covid spike. Demonstrators and police are clashing daily in Bogota and other cities, while truckers and taxi drivers block roads and labor unions march in the streets.“In the absence of a gradual and orderly tax reform, the nation’s macroeconomic stability will be seriously compromised,” the ministry said in its statement.The peso weakened 1.6% to 3,804 per dollar, the worst performer among more than 100 currencies tracked by Bloomberg, as the withdrawal of the tax bill and Carrasquilla’s exit triggered a selloff in Colombian assets.The nation’s dollar bonds also fell, as investors see an increased risk of its credit rating being cut to junk in the near future.Colombia’s dilemma exposes the chasm between rich and poor nations increased by the pandemic. While the U.S. and European Union spend trillions in stimulus with barely a peep from their debt markets, Colombia is desperate to ward off the wrath of bond vigilantes. It’s one of the few countries in the region that has consistently paid its debts but, faced with its worst contraction on record, is scrambling to rein in its budget deficit and stave off credit-rating downgrades that could send its borrowing costs soaring.The proposed tax increases were intended to curb the ballooning fiscal deficit and fund welfare payments to address the surge in poverty caused by the pandemic.President Ivan Duque said Sunday his administration will ditch some of the most unpopular proposals, such as extending value added tax to more goods, and urged lawmakers to reach consensus around a new proposal to help the country climb out of a worsening fiscal hole.New MarchesHowever, the withdrawal of the tax bill failed to end the demonstrations. Unions called for new marches on Wednesday to protest a range of other grievances, including government plans to overhaul the health system.Over the weekend, the government deployed troops to back up police in major cities, while protests spread even to provincial towns. At least 17 people have lost their lives during the demonstrations, and Bogota’s mayor’s office said 41 stations of its mass transport bus system had been put out of action by vandals.Colombia is among the first major emerging markets to attempt to implement large tax increases. Other countries in the region may face similar difficulties trying to boost revenue in economies that are still being ravaged by the pandemic, and nowhere near having recovered from last year’s slump.Both Fitch Ratings and S&P Global Ratings put the country one notch above junk. Moody’s Investors Service, which rates Colombia two notches above junk, said in a report Monday that the withdrawal of the tax bill is negative for the nation’s credit outlook.(Updates with comments from Carrasquilla in 4th 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. World Bloomberg 210503 16h13m Argentina Wealth Tax Fought by the Rich Raises $2.4 Billion (Bloomberg) -- Discover what’s driving the global economy and what it means for policy makers, businesses, investors and you with The New Economy Daily. Sign up hereArgentina’s government raised 74% of the amount it had targeted from a controversial new tax on the country’s wealthiest citizens.The government collected 223 billion pesos ($2.4 billion), according to an official statement. Early data show that 10,000 people with assets over 200 million pesos paid the new tax, which goes as high as 5.25% of their assets’ value.Initiatives to tax the rich have gained support throughout Latin America as the region struggles to recover from its worst recession in two centuries. In Argentina, millionaires resisted paying the levy right up to the government’s April 16 deadline. In early April, only 2% of taxpayers subject to the levy had paid it, according to a preliminary report.The amount raised is higher than expected, equivalent to 0.5% of GDP, and will improve the government’s tax collection numbers for April, according to Buenos Aires-based consulting firm Alberdi Partners. The government expects to use the proceeds for pandemic spending including health policies, small business subsidies, scholarships and housing projects.The government announced it had raised 817.9 billion pesos in taxes in April, up 105.2% from the previous year.Local PushbackThe tax was met with local backlash by those affected. About 220 taxpayers, including the family of late soccer legend Diego Maradona and soccer star Carlos Tevez, took legal steps against the government to avoid paying, claiming it’s confiscatory or unconstitutional. If the justice system rules against the tax, that would create a setback for the government, according to Marcos Buscaglia, founder at Alberdi.“It’s likely that part of the proceeds will have to be returned to taxpayers if the judiciary rules against the tax,” Buscaglia said.Some tax lawyers say that the real number of millionaires in Argentina is much higher than the figure from the AFIP, the tax authority, meaning that thousands may be holding onto their cash.“The data released by the taxman is an attempt to show that lots of people are paying, but it does not reflect reality,” Ivan Sasovsky, CEO of tax law firm Sasovsky & Asociados said.Even though the deadline has passed, wealthy Argentines are expected to continue filing challenges to the tax. Gaston Miani, a partner and head of tax and customs law at Tavarone, Rovelli, Salim & Miani, said he expected at least 5,000 suits to be filed during the month of May as lawyers and clients gather proof to show the tax’s harmful effects.AFIP wasn’t immediately available for comment.(Updates with April tax collection figure in fifth 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. Business Reuters 210503 16h04m Exclusive: KKR raises $18.5 billion for flagship North America buyout fund - sources KKR & Co Inc has amassed about $18.5 billion for its latest flagship North America private equity fund, raising its biggest-ever fund in less than five months, people familiar with the matter said on Monday. It also happened with limited travel among KKR executives amid the COVID-19 pandemic, underscoring investor demand for private-equity funds that promise to outperform the booming stock market. KKR raised about $17 billion for KKR North America Fund XIII from investors including sovereign wealth funds, family offices and public and private pension funds, the sources said. Business Bloomberg 210503 15h45m Private Equity Shale Specialist EnerVest Fires 111 Workers (Bloomberg) -- EnerVest Ltd., a private equity firm that specializes in shale drilling, fired 111 people at its Houston headquarters, citing “challenging times for the industry.”The job cuts were made “in an effort to right-size our company and ensure a successful future,” company spokeswoman Lindsey Welch said in an email on Monday.Private-equity firms that helped fuel the rapid expansion of shale exploration for more than a decade have seen their business model evaporate after back-to-back oil busts spooked investors and dried up the market for assets. Publicly traded drillers that once were eager to snap up oil and gas properties assembled by private backers are instead focused on conserving cash and restraining output growth.EnerVest sold its Eagle Ford Shale wells and drilling rights in 2018 for $2.4 billion in a transaction that created Magnolia Oil & Gas Corp. Under the terms of that deal, EnerVest operated the assets on behalf of Magnolia, which is led by former Occidental Petroleum Corp. Chief Executive Officer Stephen Chazen. A Magnolia spokesman declined to comment.(Adds details on pressure on private drillers 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. Business Bloomberg 210503 15h43m Commodities Reach New Highs on Rosy Oil-Demand Outlook (Bloomberg) -- Commodities prices jumped to new highs as signs of economic recovery raised hopes of renewed energy demand and a weaker dollar stoked investor appetite for precious metals.The Bloomberg Commodity Spot Index, which tracks price movements for 23 raw materials, rose 0.7% Monday. The index is at levels not seen since 2012.Oil, the most heavily weighted commodity in the group, climbed after the European Union proposed easing travel restrictions, a move that could further boost a rebound in fuel demand globally. Meanwhile, the greenback retreated, spurring buying of dollar-denominated commodities including silver and gold.The world could again be using 100 million barrels a day of crude oil by the end of 2021, which would be a full recovery from the devastating impacts of stay-at-home orders and travel restrictions over the past year, according to Enterprise Products Partners. Demand for hydrocarbons could reach all-time highs as soon as next year, Tony Chovanec, Enterprise’s senior vice president for fundamentals and commodity risk assessment, said during a conference call with investors.Prices for everything from copper to oil to timber have sky-rocketed as the world’s largest economies recovers from the pandemic, with growing signs of shortages across markets. Manufacturing and building are picking up, cars are filling the streets again and more people are booking airline tickets as they get vaccinated at a time when supplies are curbed by bottlenecks, production curbs and poor weather. China is buying record amounts of corn, and pricier agricultural grains have upended global trade flows.Hedge funds have increased bullish bets in commodity futures for three consecutive weeks, according to data compiled by Bloomberg. Massive government spending and loose monetary policy have stoked fears of inflation, which has also fueled the bull run. Commodities are typically seen by investors as a hedge against inflation and a weaker dollar.(Updates with Bloomberg Commodity Spot Index in second 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. World Reuters 210503 15h37m UPDATE 2-U.S. FDA set to authorize Pfizer COVID-19 shot for ages 12-15 early next week - NYT The U.S. Food and Drug Administration is preparing to authorize Pfizer Inc and German partner BioNTech SE's COVID-19 vaccine for adolescents aged between 12 and 15 years by early next week, the New York Times reported on Monday, citing federal officials familiar with the agency's plans. An approval is highly anticipated after the drugmakers said in March that the vaccine was found to be safe, effective and produced robust antibody responses in 12- to 15-year-olds in a clinical trial. Responding to a Reuters request for comment, the FDA said its review of expanding the vaccine's emergency use authorization is ongoing, but did not provide further details. Howell date : 210503 16h23m23s Business Reuters 210503 16h04m Exclusive: KKR raises $18.5 billion for flagship North America buyout fund - sources KKR & Co Inc has amassed about $18.5 billion for its latest flagship North America private equity fund, raising its biggest-ever fund in less than five months, people familiar with the matter said on Monday. It also happened with limited travel among KKR executives amid the COVID-19 pandemic, underscoring investor demand for private-equity funds that promise to outperform the booming stock market. KKR raised about $17 billion for KKR North America Fund XIII from investors including sovereign wealth funds, family offices and public and private pension funds, the sources said. Business Bloomberg 210503 15h44m Private Equity Shale Specialist EnerVest Fires 111 Workers (Bloomberg) -- EnerVest Ltd., a private equity firm that specializes in shale drilling, fired 111 people at its Houston headquarters, citing “challenging times for the industry.”The job cuts were made “in an effort to right-size our company and ensure a successful future,” company spokeswoman Lindsey Welch said in an email on Monday.Private-equity firms that helped fuel the rapid expansion of shale exploration for more than a decade have seen their business model evaporate after back-to-back oil busts spooked investors and dried up the market for assets. Publicly traded drillers that once were eager to snap up oil and gas properties assembled by private backers are instead focused on conserving cash and restraining output growth.EnerVest sold its Eagle Ford Shale wells and drilling rights in 2018 for $2.4 billion in a transaction that created Magnolia Oil & Gas Corp. Under the terms of that deal, EnerVest operated the assets on behalf of Magnolia, which is led by former Occidental Petroleum Corp. Chief Executive Officer Stephen Chazen. A Magnolia spokesman declined to comment.(Adds details on pressure on private drillers 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. Business Bloomberg 210503 15h42m Commodities Reach New Highs on Rosy Oil-Demand Outlook (Bloomberg) -- Commodities prices jumped to new highs as signs of economic recovery raised hopes of renewed energy demand and a weaker dollar stoked investor appetite for precious metals.The Bloomberg Commodity Spot Index, which tracks price movements for 23 raw materials, rose 0.7% Monday. The index is at levels not seen since 2012.Oil, the most heavily weighted commodity in the group, climbed after the European Union proposed easing travel restrictions, a move that could further boost a rebound in fuel demand globally. Meanwhile, the greenback retreated, spurring buying of dollar-denominated commodities including silver and gold.The world could again be using 100 million barrels a day of crude oil by the end of 2021, which would be a full recovery from the devastating impacts of stay-at-home orders and travel restrictions over the past year, according to Enterprise Products Partners. Demand for hydrocarbons could reach all-time highs as soon as next year, Tony Chovanec, Enterprise’s senior vice president for fundamentals and commodity risk assessment, said during a conference call with investors.Prices for everything from copper to oil to timber have sky-rocketed as the world’s largest economies recovers from the pandemic, with growing signs of shortages across markets. Manufacturing and building are picking up, cars are filling the streets again and more people are booking airline tickets as they get vaccinated at a time when supplies are curbed by bottlenecks, production curbs and poor weather. China is buying record amounts of corn, and pricier agricultural grains have upended global trade flows.Hedge funds have increased bullish bets in commodity futures for three consecutive weeks, according to data compiled by Bloomberg. Massive government spending and loose monetary policy have stoked fears of inflation, which has also fueled the bull run. Commodities are typically seen by investors as a hedge against inflation and a weaker dollar.(Updates with Bloomberg Commodity Spot Index in second 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. World Reuters 210503 15h42m UPDATE 1-Salvadoran bonds tumble after ouster of top judges, prosecutor El Salvador's sovereign debt tumbled on Monday after a push by President Nayib Bukele's coalition to oust all judges in the highest court and its top prosecutor fanned fears over the government's expected deal with the International Monetary Fund. El Salvador has $7.7 billion in marketable debt outstanding, according to Refinitiv data. The vote shortly after midnight into Sunday to dismiss Attorney General Raul Melara followed a new legislative majority's vote on Saturday night to oust all of the judges who sit in the constitutional chamber of the nation's Supreme Court. Business Reuters 210503 15h33m UPDATE 1-Under Armour to pay $9 million to settle SEC charges U.S. sports apparel maker Under Armour Inc has agreed to pay $9 million to settle Securities and Exchange Commission (SEC) charges that it misled investors about its revenue growth, the agency said on Monday. The SEC found that Under Armour failed to disclose to investors that it employed a sales tactic to accelerate or "pull forward" a total of $408 million in existing orders in the second half of 2015 after a warm winter began to hurt sales of the company's higher-priced cold weather apparel that customers had requested be shipped in future quarters. Maryland-based Under Armour did not admit to or deny the SEC's charges, the regulator said in its order. Howell date : 210503 15h42m45s Business Reuters 210503 15h32m UPDATE 1-Under Armour to pay $9 million to settle SEC charges U.S. sports apparel maker Under Armour Inc has agreed to pay $9 million to settle Securities and Exchange Commission (SEC) charges that it misled investors about its revenue growth, the agency said on Monday. The SEC found that Under Armour failed to disclose to investors that it employed a sales tactic to accelerate or "pull forward" a total of $408 million in existing orders in the second half of 2015 after a warm winter began to hurt sales of the company's higher-priced cold weather apparel that customers had requested be shipped in future quarters. Maryland-based Under Armour did not admit to or deny the SEC's charges, the regulator said in its order. Business Yahoo Finance 210503 15h16m Why the stock market might give back its April gains The market will give back its April gains over the next two months. Business Reuters 210503 15h13m UPDATE 1-Qiagen 1st-quarter profit tops expectations on growth in non-COVID-19 products U.S.-German genetic testing company Qiagen NV reported slightly better-than-expected quarterly earnings on Monday as sales growth in its non-coronavirus products added to high demand for COVID-19 tests. Qiagen's products include several types of COVID-19 tests that helped it to boost sales over the past year and recover from a difficult 2019 that included profit warnings, a slump in China business and a CEO departure. "We have made multiple product expansions to our non-COVID related portfolio, including the launch of a Lyme disease test," Qiagen's Chief Executive Thierry Bernard said in a statement. Business Reuters 210503 15h11m UPDATE 1-Livent results top expectations as lithium demand begins to rebound Lithium producer Livent Corp posted an adjusted quarterly profit on Monday that exceeded expectations on rising sales of the ultralight battery metal, with governments and automakers across the globe launching aggressive plans to make electric vehicles (EVs) mainstream. In a sign of bullishness on continued rising demand, Philadelphia-based Livent said it would resume expansions in the United States and Argentina that had been paused last year because of the COVID-19 pandemic. Livent posted a first-quarter net loss of $800,000, or a penny per share, compared to a net loss of $1.9 million, or a penny per share, in the year-ago period. Howell date : 210503 14h11m39s Business Bloomberg 210503 14h01m Stocks Pare Gains Into Close as Nasdaq 100 Drops: Markets Wrap (Bloomberg) -- Stocks trimmed their advance into the close as giants Tesla Inc. and Amazon.com Inc. weighed on the Nasdaq 100. Traders also assessed economic data, with inflation remaining at the forefront of the investment debate. The dollar fell, while Treasuries rose.Gains in commodity and industrial shares in the S&P 500 offset losses in tech and retail companies. Pfizer Inc. climbed as the Biden administration will support its move to begin exporting U.S.-made doses of the coronavirus vaccine, while Moderna Inc. rallied after agreeing to provide as many as 500 million doses of its shot to the global program Covax. Estee Lauder Cos. sank as the cosmetics giant’s sales missed estimates.A report Monday showed growth at U.S. manufacturers cooled in April, while a gauge of prices paid for materials jumped to the highest since 2008. Federal Reserve Chairman Jerome Powell said the economic recovery is “making real progress,” but gains have been uneven following a downturn that cut hard along lines of race and income. New York Fed President John Williams noted that current conditions are “not nearly enough” for a shift in the policy stance.Markets have been obsessed over whether higher inflation is coming. Faced with rising prices for everything from lumber to oil and computer chips, chief executive officers have cut costs and boosted prices for their products. The strategy appears to be working, with first-quarter income from S&P 500 companies jumping five times as fast as sales, according to data compiled by Bloomberg Intelligence.“The earnings season, the economic recovery and the Covid trends -- that’s still going to be the near-term catalyst -- and looking for any hints of change in direction from the Fed,” said Keith Lerner, chief market strategist at Truist Advisory Services.Ignoring the adage “sell in May and go away” may reward stock investors in 2021, according to LPL Financial. The firm cited the S&P 500’s track record during the past decade in a blog post. In eight of those years, the gauge posted gains for the six months ended in October. Last year’s rally was 12%, the biggest since 2009, when a bull market was just getting started. The benchmark produced an average advance of 3.8% for all 10 years, beating a 1.7% average since 1950.Here are some key events to watch this week:U.S. trade balance, factory orders, durable goods are due TuesdayThe Reserve Bank of Australia monetary policy decision is scheduled for TuesdayChicago Fed President Charles Evans gives a virtual speech at an event hosted by Bard College on Wednesday. Cleveland Fed President Loretta Mester gives a virtual speech to the Boston Economic ClubBank of England rate decision ThursdayThe April U.S. employment report is released on FridayThese are some of the main moves in markets:StocksThe S&P 500 rose 0.3% as of 4 p.m. New York timeThe Nasdaq 100 fell 0.4%The Dow Jones Industrial Average rose 0.7%The MSCI World index rose 0.2%CurrenciesThe Bloomberg Dollar Spot Index fell 0.3%The euro rose 0.4% to $1.2064The Japanese yen rose 0.2% to 109.11 per dollarBondsThe yield on 10-year Treasuries declined two basis points to 1.60%Germany’s 10-year yield was little changed at -0.20%CommoditiesWest Texas Intermediate crude rose 1.4% to $64 a barrelGold futures rose 1.4% to $1,792 an ounceFor 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. Business Reuters 210503 13h58m EMERGING MARKETS-Colombia's peso down after tax reform withdrawal, sol tumbles * Colombian President withdraws proposed tax reform * Brazil's manufacturing sector decelerates * Chile's peso outperforms as economic activity jumps in March (Recasts with sol, updates prices) By Shashank Nayar and Ambar Warrick May 3 (Reuters) - Colombia's peso led losses across Latin American currencies on Monday, hitting a six-month low after the government withdrew a controversial proposed tax reform over the weekend, while Peru's sol tumbled on more concerns the country may elect a socialist president. Colombia's peso dropped 1.3% after President Ivan Duque said he would withdraw a tax reform plan amid deadly protests and widespread lawmaker opposition. Politics Yahoo Finance 210503 13h57m Former Obama official appointed head of federal student loan office A former Obama-era official has been appointed as the head of the office of Federal Student Aid (FSA), which oversees the trillion-dollar student loan portfolio held by the Education Department (ED). Business Bloomberg 210503 13h55m Powell Says Economy Making Real Progress, But Not for Everyone (Bloomberg) -- Discover what’s driving the global economy and what it means for policy makers, businesses, investors and you with The New Economy Daily. Sign up hereFederal Reserve Chair Jerome Powell said that while the U.S. economic recovery is “making real progress,” the gains have been uneven following a downturn that cut hard along lines of race and income.“The economic outlook here in the United States has clearly brightened,” Powell said Monday in remarks before the National Community Reinvestment Coalition. Still, “it has been slower for those in lower paid jobs,” he said.The Fed chair noted that almost 20% of workers in the lowest earnings rung were still unemployed after a year in February. That compares with just 6% for the highest-paid workers.Powell has repeatedly said during the pandemic that the burden of the recession has fallen hardest on those least able to afford it, especially lower-income workers in service-sector jobs. Despite average monthly payroll gains of 539,000 in the first three months of 2021, payroll employment is still 8.4 million jobs below its pre-pandemic level.Household SurveyPart of his speech to NCRC was a preview of the Survey of Household Economics and Decisionmaking, or SHED, which will be released later this month.“Our upcoming SHED report notes that 22% of parents were either not working or working less because of disruptions to childcare or in-person schooling,” Powell said. “Black and Hispanic mothers -- 36% and 30%, respectively -- were disproportionately affected.”Record U.S. stocks and a hot property market could fan wealth inequality. Nationally, housing prices are up about 12% as of February compared to the same month a year ago.Powell, answering a question on housing after his speech, said “there is just a lot of demand,” partially fueled by low mortgage rates and fiscal stimulus that has helped boost household finances during the pandemic.‘Very, Very High’“It is harder for first time home buyers to get in,” Powell said. “It is going to be a tight housing market for some time now because demand is just very, very high.”Central bankers have forecast that they expect to keep interest rates near zero through 2023.They reiterated following a policy meeting last week that they would continue to buy $80 billion of U.S. Treasury securities and $40 billion of agency mortgage debt a month until “substantial further progress” has been made on inflation and employment.New York Fed chief John Williams, in separate remarks on Monday, said he was optimistic but “we still have a long way to go to achieve a robust and full economic recovery,”(Updates with Powell comment on housing markets in eighth 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. Business Bloomberg 210503 13h54m U.S. Treasury Quadruples Borrowing Estimates to Pay for Stimulus (Bloomberg) -- Discover what’s driving the global economy and what it means for policy makers, businesses, investors and you with The New Economy Daily. Sign up hereThe U.S. Treasury more than quadrupled its borrowing estimate for the quarter through June, and expects to need some $1.3 trillion over the second half of the fiscal year to help pay for a raft of fresh pandemic-relief spending.The Treasury’s projections, released in Washington Monday, incorporated the impact of President Joe Biden’s $1.9 trillion pandemic-relief bill, enacted in March. In a February outlook, the Treasury left out any guess on such spending.Both spending and revenues have been challenging for the Treasury and private-sector analysts alike to project during the pandemic. The borrowing figure for the three months through June came within the broad range of strategists’ estimates.Among the Treasury’s projections:$463 billion in borrowing April through June$800 billion for the cash balance at the end of June to $800 billion. That’s $300 billion more than previously seen$821 billion in borrowing for the three months through September$750 billion for the cash balance at the end of SeptemberThe Treasury has been steadily working down its cash balance from a record level last year, after accumulating that extra firepower to give itself flexibility to deal with any pandemic-related spending contingencies.Before Monday’s release, Wall Street strategists had been speculating the Treasury would need to return the cash balance to where it had been when the debt limit was suspended -- roughly $120 billion to $130 billion -- unless Congress lifted or suspended the limit again.On Monday, the Treasury said it assumed a balance of $450 billion at the end of the current debt-limit suspension period on July 31. The Treasury also said its $750 billion end-of-September estimate for the cash balance assumed an increase or another suspension of the debt limit.After penciling in estimates for pandemic-relief spending to be approved by Congress, the Treasury by February essentially abandoned the effort, given the challenges involved in such projections.Everyone knew that more spending was on the way, but the scale was anyone’s guess,” Lou Crandall, chief economist at Wrightson ICAP LLC, wrote in a note. Monday’s figures from the Treasury will be an “actual” forecast, he said before the release.The latest wave of stimulus payments sent the U.S. federal budget deficit to a record in the first half of the fiscal year that began on Oct. 1, more than double the previous year.Monday’s borrowing estimates precede the Treasury’s so-called quarterly refunding announcement at 8:30 a.m. New York time on Wednesday, when the department releases plans for the sizes of auctions of longer-term debt, along with any shifts in its issuance strategy.A majority of Wall Street dealers predict the Treasury will keep note and bond auction sizes unchanged for the second straight quarter. Yet most also foresee the Treasury sometime later this year beginning to whittle down coupon-bearing debt auctions, given that funding needs are peaking.(Adds details on entire second-half of fiscal 2021 borrowing.)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. Howell date : 210503 12h56m15s World Bloomberg 210503 12h49m Colombian Peso Dives on Reports of Finance Minister Quitting (Bloomberg) -- Colombia’s peso suffered the world’s biggest drop after local media reported Finance Minister Alberto Carrasquilla will quit following days of bloody street clashes and the shelving of his plan to raise taxes.Carrasquilla and his deputy Juan Alberto Londono will hand in their resignations Monday, Blu Radio reported, without saying how it obtained the information. La Republica daily said the whole economic team that worked on the tax bill will also quit.The reports add to the growing sense of chaos in the Andean nation, which is seeing daily clashes between demonstrators and police, road blockades by protesting truckers and taxi drivers, striking labor unions, and intensive care units nearing capacity from a spike in Covid-19 infections.Local markets sold off, with the Colombian peso weakening 1.6% to 3,804 per dollar, the worst performer among more than 100 currencies tracked by Bloomberg.Dollar bonds also fell, as the tax bill had been seen as key to defending the nation’s investment grade credit rating. The average spread of Colombian bonds over U.S. treasuries widened the most since March, according to JPMorgan indexes.While declining to comment on the reports, Interior Minister Daniel Palacios told Blu Radio that the government will seek to reach consensus with political parties to present a new tax bill to congress. The finance ministry confirmed President Ivan Duque and Carrasquilla were meeting this morning.President Duque on Sunday said the government is ditching some of the most unpopular ideas, such as extending the value-added tax to additional goods and services. He called on lawmakers to urgently reach consensus around a new proposal to help the country climb out of a worsening fiscal hole.The tax bill was intended to raise revenue to defend Colombia’s investment-grade credit rating and address a surge in poverty caused by the pandemic by funding social programs and providing cash transfers for its neediest citizens.Troops DeployedAt the weekend the government deployed troops to back up the police, as even small provincial towns saw protests. At least seven people have lost their lives during the demonstrations, and Bogota’s Mayor’s Office said that 41 stations of its mass transport bus system had been put out of action by vandals.The decision to abandon the bill less than three weeks after it was introduced is another blow for Duque and undermines chances he’ll be able to pass other reforms before his term expires next year, said Sergio Guzman, director of Colombia Risk Analysis.The government was already under pressure from days of street protests that have left at least seven people dead, as violence spread beyond the major cities to provincial towns.“The government overplayed its hand with the reform, lost, and now is left in a really bad position facing the electorate,” Guzman said. “It effectively makes Duque a lame duck.”Colombia is among the first major emerging markets to attempt to implement large tax increases to bring its ballooning debt burden back under control. Other countries in the region may face similar difficulties trying to boost revenue in economies that are still being ravaged by the pandemic, and nowhere near having recovered from last year’s slump.Tax the RichA new bill should maintain measures that protect Colombia’s most vulnerable while raising taxes on the rich, Duque said. He vowed that no one will pay income tax that doesn’t already pay it.Duque also called for a host of temporary taxes, including on corporations, the wealthy and dividends. He added that people with higher incomes should pay more and that the government needs to tighten its belt.Investors have sold off Colombian assets since the bill’s introduction in mid-April as they increasingly price in the likelihood that the nation will be downgraded. Both Fitch Ratings and S&P Global Ratings rate the country one notch above junk.“We are waiting to see the new plan on fiscal consolidation strategy going forward,” Fitch analyst Richard Francis said. “We always knew any reform was going to be difficult and wanted to see the final Congressional outcome.”Moody’s Investors Service, which rates Colombia two notches above junk, said in a report that the withdrawal of the tax bill is negative for the nation’s credit outlook.(Updates peso and bond move from 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. World Reuters 210503 12h47m UPDATE 1-U.S. and Britain tell China and Russia: the West is not over yet The Group of Seven western democracies aims to court new allies to counter challenges from China and Russia without holding Beijing down and while pursuing more stable ties with the Kremlin, two of its top diplomats said on Monday. Ahead of the first in-person G7 foreign ministers meeting since 2019, U.S. President Joe Biden's secretary of state, Antony Blinken, sought to foster a message of multilateralism after four years of Twitter-diplomacy under Donald Trump variously shocked, bewildered and alarmed many Western allies. Founded in 1975 as a forum for the West’s richest nations to discuss crises such as the OPEC oil embargo, the G7 this week is discussing China and Russia as well as battling the COVID-19 pandemic and the spread of climate change. Health Reuters 210503 12h40m COVID SCIENCE-Antibody drug neutralizes virus variants in lab study; COVID-19 antibodies detectable 12 months after infection The following is a roundup of some of the latest scientific studies on the novel coronavirus and efforts to find treatments and vaccines for COVID-19, the illness caused by the virus. An experimental monoclonal antibody treatment for COVID-19 being developed by Eli Lilly and Co and AbCellera Biologics Inc can "potently" neutralize numerous coronavirus variants, including those first identified in the UK, Brazil, South Africa, California and New York, scientists have found in test tube experiments. The antibody - known as LY-CoV1404 or LY3853113 - works by attaching itself to a place on the virus that has shown few signs of mutating, which means the drug is likely to retain its effectiveness over time, the researchers said in a report posted on Friday on bioRxiv ahead of peer review. Business Reuters 210503 12h39m Mediaset, Vivendi could sign deal to end legal battle later on Monday - sources Italian broadcaster Mediaset and its second-largest investor Vivendi are expected to sign an agreement as soon as Monday to end years of legal sparring, three people familiar with the matter told Reuters. The accord may pave the way for Vivendi to gradually cut its holding in the group controlled by the family of former Italian Prime Minister Silvio Berlusconi, allowing Mediaset to pursue a pan-European expansion strategy Vivendi has so far managed to thwart. The two media companies have been at loggerheads since 2016, when Vivendi walked away from a pay-TV deal and then built a 29% stake in Mediaset, which the Milanese group considers hostile. Business Bloomberg 210503 12h37m U.S. Factory Growth Settles Back, Supply Snags Linger (Bloomberg) -- Growth at U.S. manufacturers cooled in April as ongoing supply chain issues and materials shortages limited production efforts and enlarged backlogs.A gauge of factory activity fell to 60.7 from a more than 37-year high of 64.7 a month earlier, according to data from the Institute for Supply Management released Monday. Readings above 50 indicate expansion. The report echoes separate figures showing euro-area manufacturers are also battling soaring materials prices and large numbers of unfilled orders.Persistent supply challenges are restraining otherwise robust momentum in manufacturing output, leading to record backlogs and driving materials prices higher. Factories and their customers have whittled down inventories to meet sturdy demand, the ISM figures showed.Purchasing managers “reported that their companies and suppliers continue to struggle to meet increasing rates of demand due to coronavirus impacts limiting availability of parts and materials,” Timothy Fiore, chair of the ISM’s manufacturing business survey committee, said in a statement.“Recent record-long lead times, wide-scale shortages of critical basic materials, rising commodities prices and difficulties in transporting products are continuing to affect all segments of the manufacturing economy,” Fiore said.All ExpandAll 18 manufacturing industries reported growth. Among those with the largest expansions in April were electrical equipment and appliances, textiles, furniture and machinery.ISM’s measure of production softened to a three-month low of 62.5, held back by such capacity constraints. Semiconductor chip shortages have been stifling production at automotive plants.Meantime, the group’s gauge of prices paid for materials jumped to the highest since July 2008, underscoring shortages of inputs.A measure of factory stockpiles contracted at the fastest pace since August, while an index of customer inventories dropped to a fresh record low.Companies in Europe also reported higher costs for materials such as chemicals, metals and plastics and ran down their inventories to cope, according to IHS Markit data issued Monday.Select ISM Industry Comments“In 35 years of purchasing, I’ve never seen everything like these extended lead times and rising prices — from colors, film, corrugate to resins, they’re all up.” - Plastics & Rubber“The current electronics/semiconductor shortage is having tremendous impacts on lead times and pricing.” - Computer & Electronic Products“Demand is outpacing supply and will continue into the third quarter, when the supply chain is expected to be refilled.” - Chemical Products“Continued strong sales; however, we have had to trim some production due to the global chip shortage.” - Transportation Equipment“Steel prices are crazy high.” - Fabricated Metals“It’s getting much more difficult to supply production with materials that are made with copper or steel. Lots of work on the floor, but I am worried about getting the materials to support.” - Electrical Equipment & AppliancesThe ISM new orders and employment measures also eased to 64.3 and 55.1 respectively. Ahead of the government’s monthly employment report on Friday, economists are projecting the biggest monthly gain in manufacturing payrolls since June. Economists expect overall employment to rise by 980,000.Other manufacturing surveys highlight the underlying strength of the sector. Most regional Federal Reserve factory surveys improved in April, while IHS Markit’s manufacturing index also advanced from a month earlier.Looking ahead, a broader reopening of the economy and robust capital investment should support demand. Rebuilding depressed inventories will provide an additional tailwind to the sector.(Corrects sixth paragraph to remove historical reference for industries reporting growth)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. Business Bloomberg 210503 12h36m S&P 500 Rises With Treasuries as Dollar Declines: Markets Wrap (Bloomberg) -- Stocks rose with bonds in a busy week for economic data, with inflation remaining at the forefront of the investment debate. The dollar fell.Most major groups in the S&P 500 gained, led by commodity and industrial shares. Losses in giants Tesla Inc. and Amazon.com Inc. dragged down the Nasdaq 100. Pfizer Inc. climbed as the Biden administration will support its move to begin exporting U.S.-made doses of the coronavirus vaccine, while Moderna Inc. rallied after agreeing to provide as many as 500 million doses of its shot to the global program known as Covax.Federal Reserve Chair Jerome Powell said Monday that while the U.S. economic recovery is “making real progress,” the gains have been uneven following a downturn that cut hard along lines of race and income. Meanwhile, a report showed growth at U.S. manufacturers cooled in April as ongoing supply chain issues and materials shortages limited production efforts and enlarged backlogs. A gauge of prices paid for materials jumped to the highest since July 2008.Markets have been obsessed over whether higher inflation is coming. Faced with rising prices for everything from lumber to oil and computer chips, chief executive officers have cut costs and boosted prices for their products. The strategy appears to be working, with first-quarter income from S&P 500 companies jumping five times as fast as sales, according to data compiled by Bloomberg Intelligence.“The earnings season, the economic recovery and the Covid trends -- that’s still going to be the near-term catalyst -- and looking for any hints of change in direction from the Fed,” said Keith Lerner, chief market strategist at Truist Advisory Services.Ignoring the adage “sell in May and go away” may reward stock investors in 2021, according to LPL Financial. The firm cited the S&P 500’s track record during the past decade in a blog post. In eight of those years, the gauge posted gains for the six months ended in October. Last year’s rally was 12%, the biggest since 2009, when a bull market was just getting started. The benchmark produced an average advance of 3.8% for all 10 years, beating a 1.7% average since 1950.Here are some key events to watch this week:U.S. trade balance, factory orders, durable goods are due TuesdayThe Reserve Bank of Australia monetary policy decision is scheduled for TuesdayChicago Fed President Charles Evans gives a virtual speech at an event hosted by Bard College on Wednesday. Cleveland Fed President Loretta Mester gives a virtual speech to the Boston Economic ClubBank of England rate decision ThursdayThe April U.S. employment report is released on FridayThese are some of the main moves in markets:StocksThe S&P 500 rose 0.5% as of 2:35 p.m. New York timeThe Nasdaq 100 fell 0.2%The Dow Jones Industrial Average rose 0.9%The MSCI World index rose 0.4%CurrenciesThe Bloomberg Dollar Spot Index fell 0.3%The euro rose 0.4% to $1.2065The Japanese yen rose 0.2% to 109.10 per dollarBondsThe yield on 10-year Treasuries declined one basis point to 1.61%Germany’s 10-year yield was little changed at -0.20%CommoditiesWest Texas Intermediate crude rose 1.4% to $64 a barrelGold futures rose 1.4% to $1,792 an ounceFor 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. Howell date : 210503 12h52m58s Business Yahoo Finance Video 210503 12h42m Oil to see $70 a barrel or possibly higher: Marketgauge.com Partner Michele Schneider, Marketgauge.com Partner and Director of Trading Research & Education, joins Yahoo Finance’s Alexis Christoforous to discuss cryptocurrency and outlook on the oil market. Business Reuters 210503 12h38m Mediaset, Vivendi could sign deal to end legal battle later on Monday - sources Italian broadcaster Mediaset and its second-largest investor Vivendi are expected to sign an agreement as soon as Monday to end years of legal sparring, three people familiar with the matter told Reuters. The accord may pave the way for Vivendi to gradually cut its holding in the group controlled by the family of former Italian Prime Minister Silvio Berlusconi, allowing Mediaset to pursue a pan-European expansion strategy Vivendi has so far managed to thwart. The two media companies have been at loggerheads since 2016, when Vivendi walked away from a pay-TV deal and then built a 29% stake in Mediaset, which the Milanese group considers hostile. Business Bloomberg 210503 12h36m U.S. Factory Growth Settles Back, Supply Snags Linger (Bloomberg) -- Growth at U.S. manufacturers cooled in April as ongoing supply chain issues and materials shortages limited production efforts and enlarged backlogs.A gauge of factory activity fell to 60.7 from a more than 37-year high of 64.7 a month earlier, according to data from the Institute for Supply Management released Monday. Readings above 50 indicate expansion. The report echoes separate figures showing euro-area manufacturers are also battling soaring materials prices and large numbers of unfilled orders.Persistent supply challenges are restraining otherwise robust momentum in manufacturing output, leading to record backlogs and driving materials prices higher. Factories and their customers have whittled down inventories to meet sturdy demand, the ISM figures showed.Purchasing managers “reported that their companies and suppliers continue to struggle to meet increasing rates of demand due to coronavirus impacts limiting availability of parts and materials,” Timothy Fiore, chair of the ISM’s manufacturing business survey committee, said in a statement.“Recent record-long lead times, wide-scale shortages of critical basic materials, rising commodities prices and difficulties in transporting products are continuing to affect all segments of the manufacturing economy,” Fiore said.All ExpandAll 18 manufacturing industries reported growth. Among those with the largest expansions in April were electrical equipment and appliances, textiles, furniture and machinery.ISM’s measure of production softened to a three-month low of 62.5, held back by such capacity constraints. Semiconductor chip shortages have been stifling production at automotive plants.Meantime, the group’s gauge of prices paid for materials jumped to the highest since July 2008, underscoring shortages of inputs.A measure of factory stockpiles contracted at the fastest pace since August, while an index of customer inventories dropped to a fresh record low.Companies in Europe also reported higher costs for materials such as chemicals, metals and plastics and ran down their inventories to cope, according to IHS Markit data issued Monday.Select ISM Industry Comments“In 35 years of purchasing, I’ve never seen everything like these extended lead times and rising prices — from colors, film, corrugate to resins, they’re all up.” - Plastics & Rubber“The current electronics/semiconductor shortage is having tremendous impacts on lead times and pricing.” - Computer & Electronic Products“Demand is outpacing supply and will continue into the third quarter, when the supply chain is expected to be refilled.” - Chemical Products“Continued strong sales; however, we have had to trim some production due to the global chip shortage.” - Transportation Equipment“Steel prices are crazy high.” - Fabricated Metals“It’s getting much more difficult to supply production with materials that are made with copper or steel. Lots of work on the floor, but I am worried about getting the materials to support.” - Electrical Equipment & AppliancesThe ISM new orders and employment measures also eased to 64.3 and 55.1 respectively. Ahead of the government’s monthly employment report on Friday, economists are projecting the biggest monthly gain in manufacturing payrolls since June. Economists expect overall employment to rise by 980,000.Other manufacturing surveys highlight the underlying strength of the sector. Most regional Federal Reserve factory surveys improved in April, while IHS Markit’s manufacturing index also advanced from a month earlier.Looking ahead, a broader reopening of the economy and robust capital investment should support demand. Rebuilding depressed inventories will provide an additional tailwind to the sector.(Corrects sixth paragraph to remove historical reference for industries reporting growth)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. Business Bloomberg 210503 12h36m S&P 500 Rises With Treasuries as Dollar Declines: Markets Wrap (Bloomberg) -- Stocks rose with bonds in a busy week for economic data, with inflation remaining at the forefront of the investment debate. The dollar fell.Most major groups in the S&P 500 gained, led by commodity and industrial shares. Losses in giants Tesla Inc. and Amazon.com Inc. dragged down the Nasdaq 100. Pfizer Inc. climbed as the Biden administration will support its move to begin exporting U.S.-made doses of the coronavirus vaccine, while Moderna Inc. rallied after agreeing to provide as many as 500 million doses of its shot to the global program known as Covax.Federal Reserve Chair Jerome Powell said Monday that while the U.S. economic recovery is “making real progress,” the gains have been uneven following a downturn that cut hard along lines of race and income. Meanwhile, a report showed growth at U.S. manufacturers cooled in April as ongoing supply chain issues and materials shortages limited production efforts and enlarged backlogs. A gauge of prices paid for materials jumped to the highest since July 2008.Markets have been obsessed over whether higher inflation is coming. Faced with rising prices for everything from lumber to oil and computer chips, chief executive officers have cut costs and boosted prices for their products. The strategy appears to be working, with first-quarter income from S&P 500 companies jumping five times as fast as sales, according to data compiled by Bloomberg Intelligence.“The earnings season, the economic recovery and the Covid trends -- that’s still going to be the near-term catalyst -- and looking for any hints of change in direction from the Fed,” said Keith Lerner, chief market strategist at Truist Advisory Services.Ignoring the adage “sell in May and go away” may reward stock investors in 2021, according to LPL Financial. The firm cited the S&P 500’s track record during the past decade in a blog post. In eight of those years, the gauge posted gains for the six months ended in October. Last year’s rally was 12%, the biggest since 2009, when a bull market was just getting started. The benchmark produced an average advance of 3.8% for all 10 years, beating a 1.7% average since 1950.Here are some key events to watch this week:U.S. trade balance, factory orders, durable goods are due TuesdayThe Reserve Bank of Australia monetary policy decision is scheduled for TuesdayChicago Fed President Charles Evans gives a virtual speech at an event hosted by Bard College on Wednesday. Cleveland Fed President Loretta Mester gives a virtual speech to the Boston Economic ClubBank of England rate decision ThursdayThe April U.S. employment report is released on FridayThese are some of the main moves in markets:StocksThe S&P 500 rose 0.5% as of 2:35 p.m. New York timeThe Nasdaq 100 fell 0.2%The Dow Jones Industrial Average rose 0.9%The MSCI World index rose 0.4%CurrenciesThe Bloomberg Dollar Spot Index fell 0.3%The euro rose 0.4% to $1.2065The Japanese yen rose 0.2% to 109.10 per dollarBondsThe yield on 10-year Treasuries declined one basis point to 1.61%Germany’s 10-year yield was little changed at -0.20%CommoditiesWest Texas Intermediate crude rose 1.4% to $64 a barrelGold futures rose 1.4% to $1,792 an ounceFor 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. Business Reuters 210503 12h35m Messaging app Discord ties up with Sony's PlayStation The deal, announced on Monday by Sony Interactive Entertainment Chief Executive Officer Jim Ryan, comes after Reuters reported last month that Discord had ended sale talks with Microsoft Corp to focus on expanding its business as a standalone company. Discord allows public and private groups to gather and chat by text, audio and video. "Our goal is to bring the Discord and PlayStation experiences closer together on console and mobile starting early next year," Ryan said in a blog post. Business Bloomberg 210503 12h30m Silver Leads Precious-Metals Gains on Dollar, Factory Data (Bloomberg) -- Silver led gains in precious metals as the dollar dropped and a report showed U.S. manufacturing cooled in April, boosting demand for haven assets.A gauge of factory activity fell in April from a more than 37-year high a month earlier, according to data from the Institute for Supply Management released Monday. Treasuries climbed to session highs following the data and the greenback retreated.Gold and silver have clawed back gains after dropping earlier this year as signs of an accelerating U.S. economy boosted the dollar and Treasury yields, reducing demand for the metals as stores of value. Slower expansion in U.S. manufacturing reinforces expectations that central banks including the Federal Reserve will keep interest rates near zero. Low rates bolster demand for precious metals, which don’t offer interest.A weaker-than-expected ISM reading suggests “we’re not running at full speed as many had expected, and that ultimately means that we’re probably not gonna have any letup on the easing,” according to TD Securities analyst Bart Melek.Silver for immediate delivery rose as much as 4.2% to $26.9946 an ounce, the biggest intraday gain since Feb. 1. Gold advanced 1.3% to $1,792.22 an ounce by 1:47 p.m. in New York after dropping 0.5% last week. July silver futures settled 4.2% higher on the Comex in New York, while June gold futures jumped 1.4%.Palladium and platinum also gained. The Bloomberg Dollar Spot Index fell 0.3%.Gold’s advance came after its first weekly decline in four as U.S. Treasury Secretary Janet Yellen said President Joe Biden’s economic plan won’t stoke inflationary pressures. Gold may continue to gain support from the Fed’s dovish approach and a weaker dollar, according to Angel Broking Ltd.’s analysts Prathamesh Mallya and Yash Sawant.The metal could gain further impetus amid expectations that outflows from gold-backed exchange traded funds will start to reverse, according to Carsten Fritsch, an analyst at Commerzbank AG.“We expect ETFs to begin registering inflows again in the second half of the year at the latest, and that this will help the gold price climb by year’s end to $2,000,” Fritsch said in a note.Copper futures for July delivery rose 1.4% to settle at $4.5285 a pound on the Comex.Japan, China and the U.K. markets are closed for holidays on Monday.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. Howell date : 210503 12h47m59s Business Reuters 210503 12h38m Mediaset, Vivendi could sign deal to end legal battle later on Monday - sources Italian broadcaster Mediaset and its second-largest investor Vivendi are expected to sign an agreement as soon as Monday to end years of legal sparring, three people familiar with the matter told Reuters. The accord may pave the way for Vivendi to gradually cut its holding in the group controlled by the family of former Italian Prime Minister Silvio Berlusconi, allowing Mediaset to pursue a pan-European expansion strategy Vivendi has so far managed to thwart. The two media companies have been at loggerheads since 2016, when Vivendi walked away from a pay-TV deal and then built a 29% stake in Mediaset, which the Milanese group considers hostile. Business Bloomberg 210503 12h36m U.S. Factory Growth Settles Back, Supply Snags Linger (Bloomberg) -- Growth at U.S. manufacturers cooled in April as ongoing supply chain issues and materials shortages limited production efforts and enlarged backlogs.A gauge of factory activity fell to 60.7 from a more than 37-year high of 64.7 a month earlier, according to data from the Institute for Supply Management released Monday. Readings above 50 indicate expansion. The report echoes separate figures showing euro-area manufacturers are also battling soaring materials prices and large numbers of unfilled orders.Persistent supply challenges are restraining otherwise robust momentum in manufacturing output, leading to record backlogs and driving materials prices higher. Factories and their customers have whittled down inventories to meet sturdy demand, the ISM figures showed.Purchasing managers “reported that their companies and suppliers continue to struggle to meet increasing rates of demand due to coronavirus impacts limiting availability of parts and materials,” Timothy Fiore, chair of the ISM’s manufacturing business survey committee, said in a statement.“Recent record-long lead times, wide-scale shortages of critical basic materials, rising commodities prices and difficulties in transporting products are continuing to affect all segments of the manufacturing economy,” Fiore said.All ExpandAll 18 manufacturing industries reported growth. Among those with the largest expansions in April were electrical equipment and appliances, textiles, furniture and machinery.ISM’s measure of production softened to a three-month low of 62.5, held back by such capacity constraints. Semiconductor chip shortages have been stifling production at automotive plants.Meantime, the group’s gauge of prices paid for materials jumped to the highest since July 2008, underscoring shortages of inputs.A measure of factory stockpiles contracted at the fastest pace since August, while an index of customer inventories dropped to a fresh record low.Companies in Europe also reported higher costs for materials such as chemicals, metals and plastics and ran down their inventories to cope, according to IHS Markit data issued Monday.Select ISM Industry Comments“In 35 years of purchasing, I’ve never seen everything like these extended lead times and rising prices — from colors, film, corrugate to resins, they’re all up.” - Plastics & Rubber“The current electronics/semiconductor shortage is having tremendous impacts on lead times and pricing.” - Computer & Electronic Products“Demand is outpacing supply and will continue into the third quarter, when the supply chain is expected to be refilled.” - Chemical Products“Continued strong sales; however, we have had to trim some production due to the global chip shortage.” - Transportation Equipment“Steel prices are crazy high.” - Fabricated Metals“It’s getting much more difficult to supply production with materials that are made with copper or steel. Lots of work on the floor, but I am worried about getting the materials to support.” - Electrical Equipment & AppliancesThe ISM new orders and employment measures also eased to 64.3 and 55.1 respectively. Ahead of the government’s monthly employment report on Friday, economists are projecting the biggest monthly gain in manufacturing payrolls since June. Economists expect overall employment to rise by 980,000.Other manufacturing surveys highlight the underlying strength of the sector. Most regional Federal Reserve factory surveys improved in April, while IHS Markit’s manufacturing index also advanced from a month earlier.Looking ahead, a broader reopening of the economy and robust capital investment should support demand. Rebuilding depressed inventories will provide an additional tailwind to the sector.(Corrects sixth paragraph to remove historical reference for industries reporting growth)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. Business Bloomberg 210503 12h36m S&P 500 Rises With Treasuries as Dollar Declines: Markets Wrap (Bloomberg) -- Stocks rose with bonds in a busy week for economic data, with inflation remaining at the forefront of the investment debate. The dollar fell.Most major groups in the S&P 500 gained, led by commodity and industrial shares. Losses in giants Tesla Inc. and Amazon.com Inc. dragged down the Nasdaq 100. Pfizer Inc. climbed as the Biden administration will support its move to begin exporting U.S.-made doses of the coronavirus vaccine, while Moderna Inc. rallied after agreeing to provide as many as 500 million doses of its shot to the global program known as Covax.Federal Reserve Chair Jerome Powell said Monday that while the U.S. economic recovery is “making real progress,” the gains have been uneven following a downturn that cut hard along lines of race and income. Meanwhile, a report showed growth at U.S. manufacturers cooled in April as ongoing supply chain issues and materials shortages limited production efforts and enlarged backlogs. A gauge of prices paid for materials jumped to the highest since July 2008.Markets have been obsessed over whether higher inflation is coming. Faced with rising prices for everything from lumber to oil and computer chips, chief executive officers have cut costs and boosted prices for their products. The strategy appears to be working, with first-quarter income from S&P 500 companies jumping five times as fast as sales, according to data compiled by Bloomberg Intelligence.“The earnings season, the economic recovery and the Covid trends -- that’s still going to be the near-term catalyst -- and looking for any hints of change in direction from the Fed,” said Keith Lerner, chief market strategist at Truist Advisory Services.Ignoring the adage “sell in May and go away” may reward stock investors in 2021, according to LPL Financial. The firm cited the S&P 500’s track record during the past decade in a blog post. In eight of those years, the gauge posted gains for the six months ended in October. Last year’s rally was 12%, the biggest since 2009, when a bull market was just getting started. The benchmark produced an average advance of 3.8% for all 10 years, beating a 1.7% average since 1950.Here are some key events to watch this week:U.S. trade balance, factory orders, durable goods are due TuesdayThe Reserve Bank of Australia monetary policy decision is scheduled for TuesdayChicago Fed President Charles Evans gives a virtual speech at an event hosted by Bard College on Wednesday. Cleveland Fed President Loretta Mester gives a virtual speech to the Boston Economic ClubBank of England rate decision ThursdayThe April U.S. employment report is released on FridayThese are some of the main moves in markets:StocksThe S&P 500 rose 0.5% as of 2:35 p.m. New York timeThe Nasdaq 100 fell 0.2%The Dow Jones Industrial Average rose 0.9%The MSCI World index rose 0.4%CurrenciesThe Bloomberg Dollar Spot Index fell 0.3%The euro rose 0.4% to $1.2065The Japanese yen rose 0.2% to 109.10 per dollarBondsThe yield on 10-year Treasuries declined one basis point to 1.61%Germany’s 10-year yield was little changed at -0.20%CommoditiesWest Texas Intermediate crude rose 1.4% to $64 a barrelGold futures rose 1.4% to $1,792 an ounceFor 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. Business Reuters 210503 12h35m Messaging app Discord ties up with Sony's PlayStation The deal, announced on Monday by Sony Interactive Entertainment Chief Executive Officer Jim Ryan, comes after Reuters reported last month that Discord had ended sale talks with Microsoft Corp to focus on expanding its business as a standalone company. Discord allows public and private groups to gather and chat by text, audio and video. "Our goal is to bring the Discord and PlayStation experiences closer together on console and mobile starting early next year," Ryan said in a blog post. Business Bloomberg 210503 12h30m Silver Leads Precious-Metals Gains on Dollar, Factory Data (Bloomberg) -- Silver led gains in precious metals as the dollar dropped and a report showed U.S. manufacturing cooled in April, boosting demand for haven assets.A gauge of factory activity fell in April from a more than 37-year high a month earlier, according to data from the Institute for Supply Management released Monday. Treasuries climbed to session highs following the data and the greenback retreated.Gold and silver have clawed back gains after dropping earlier this year as signs of an accelerating U.S. economy boosted the dollar and Treasury yields, reducing demand for the metals as stores of value. Slower expansion in U.S. manufacturing reinforces expectations that central banks including the Federal Reserve will keep interest rates near zero. Low rates bolster demand for precious metals, which don’t offer interest.A weaker-than-expected ISM reading suggests “we’re not running at full speed as many had expected, and that ultimately means that we’re probably not gonna have any letup on the easing,” according to TD Securities analyst Bart Melek.Silver for immediate delivery rose as much as 4.2% to $26.9946 an ounce, the biggest intraday gain since Feb. 1. Gold advanced 1.3% to $1,792.22 an ounce by 1:47 p.m. in New York after dropping 0.5% last week. July silver futures settled 4.2% higher on the Comex in New York, while June gold futures jumped 1.4%.Palladium and platinum also gained. The Bloomberg Dollar Spot Index fell 0.3%.Gold’s advance came after its first weekly decline in four as U.S. Treasury Secretary Janet Yellen said President Joe Biden’s economic plan won’t stoke inflationary pressures. Gold may continue to gain support from the Fed’s dovish approach and a weaker dollar, according to Angel Broking Ltd.’s analysts Prathamesh Mallya and Yash Sawant.The metal could gain further impetus amid expectations that outflows from gold-backed exchange traded funds will start to reverse, according to Carsten Fritsch, an analyst at Commerzbank AG.“We expect ETFs to begin registering inflows again in the second half of the year at the latest, and that this will help the gold price climb by year’s end to $2,000,” Fritsch said in a note.Copper futures for July delivery rose 1.4% to settle at $4.5285 a pound on the Comex.Japan, China and the U.K. markets are closed for holidays on Monday.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. Business Reuters 210503 12h23m UPDATE 1-Squarespace, last valued at $10 bln, sets stage for direct listing in New York Squarespace Inc has registered roughly 40 million shares for its direct listing in New York later this month, marking another win for advocates of the increasingly popular alternative to the initial public offering (IPO). Founded in 2003 by Chief Executive Anthony Casalena in his dorm room at the University of Maryland, the website building and hosting firm was valued at nearly $10 billion in March when it raised $300 million from investors including Tiger Global, D1 Capital Partners, and Fidelity Management & Research Company. U.S. Reuters 210503 12h16m U.S. approves massive solar project in California desert The Biden administration on Monday said it has approved a major solar energy project in the California desert that will be capable of powering nearly 90,000 homes. The $550 million Crimson Solar Project will be sited on 2,000 acres of federal land west of Blythe, California, the Interior Department said in a statement. It is being developed by Canadian Solar unit Recurrent Energy and will deliver power to California utility Southern California Edison. Howell date : 210503 10h51m55s Business Reuters 210503 10h41m UPDATE 1-EnerVest Operating to cut 111 staff in Houston - Texas filing U.S. oil and gas producer EnerVest Operating LLC will dismiss 111 employees in the Houston area, according to a filing with the Texas Workforce Commission. Houston-based EnerVest has operations in Texas and in the U.S. northeast. "These have been challenging times for the industry," EnerVest said a statement, calling the move an effort to right-size the company. World Bloomberg 210503 10h32m El Salvador’s Top Judges, Attorney General Ousted by Ruling Party (Bloomberg) -- El Salvador’s bonds fell Monday by the most since the onset of the Covid-19 pandemic after the ruling party took control of the top court and replaced the attorney general, fueling speculation that President Nayib Bukele is prioritizing the consolidation of power over efforts to shore up the economy.El Salvador’s dollar bonds coming due in 2025 fell 5.9% to 97.81 cents on the dollar, the biggest one-day decline since March 18, 2020. That sent yields up more than two percentage points to 7.01%.Bukele, a social-media savvy 39-year-old who won office in 2019, has consolidated his control of the Central American country after his New Ideas party and its allies took control of the legislature following a landslide win in the March elections. The latest moves drew widespread condemnation abroad just as El Salvador negotiates with the International Monetary Fund to secure a needed credit line to help cover its budget shortfalls.“Instead of sending signals of an agreement with the IMF, the government is prioritizing its political agenda,” Barclays Capital Inc. analysts Alejandro Arreaza and Nestor Rodriguez wrote in a note. “If investors lose confidence in El Salvador, the government could have to enter a debt restructuring process.”Finance Minister Alejandro Zelaya said during an interview with state television Monday morning that tax collections this year through April 30 have exceeded forecasts by $37 million. He said the constitutional court prohibited the government from pursuing tax cheats and urged the new attorney general to investigate 87 cases of evasion the finance ministry has identified totaling $71 million.“We aren’t going to allow tax evasion in El Salvador,” Zelaya said. “We are going to pursue the bad business owners that are leaving the state without funds.”Bukele’s party used Saturday’s first meeting of a new legislative session to replace five magistrates from the court’s constitutional chamber and to fire the attorney general. New judges took office immediately. Rodolfo Delgado was named attorney general, replacing Raul Melara.“The Salvadoran people, through their representatives, said FIRED,” Bukele wrote on Twitter. He later wrote that he was “extremely pleased” with the legislative session.Business groups, international organizations including Human Rights Watch and members of President Joe Biden’s administration were quick to criticize the sackings, which took place late Saturday.“It’s certainly a much faster institutional deterioration than the markets expected,” said Carlos de Sousa, an investor at Vontobel Asset Management in Zurich, who oversees $4.1 billion in emerging-market debt. “It’s clearly not welcome that Bukele is prioritizing concentration of power over economic stability.”U.S. Secretary of State Antony Blinken spoke with Bukele by phone on Sunday, said spokesman Ned Price, to express “the U.S. government’s grave concern” over the magistrates’ removal.Blinken also raised U.S. concern with Bukele over the removal of Melara, “who’s fighting corruption and impunity, and is an effective partner of efforts to combat crime in both the United States and El Salvador,” Price 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. Business Bloomberg 210503 10h27m Stocks Come Off Session Highs as Nasdaq 100 Drops: Markets Wrap (Bloomberg) -- Stocks came off Monday’s highs as giants Tesla Inc. and Amazon.com Inc. weighed on the Nasdaq 100. Traders also assessed economic data, with inflation remaining at the forefront of the investment debate. The dollar fell, while Treasuries advanced.Most major groups in the S&P 500 rose, with gains in commodity and industrial shares offsetting losses in tech and retail companies. Moderna Inc. rallied after agreeing to provide as many as 500 million doses of its Covid-19 shot to the vaccination program known as Covax. Berkshire Hathaway Inc. climbed as Warren Buffett said Greg Abel, vice chairman of non-insurance businesses, would be his likely successor. Estee Lauder Cos. sank as the cosmetics giant’s sales missed estimates.Growth at U.S. manufacturers cooled in April as ongoing supply chain issues and materials shortages limited production efforts and enlarged backlogs, according to the Institute for Supply Management. Meanwhile, the group’s gauge of prices paid for materials jumped to the highest since July 2008. Treasury Secretary Janet Yellen said President Joe Biden’s economic plan is unlikely to create price pressures. Federal Reserve Chairman Jerome Powell speaks at 2:20 p.m. Washington time. Results are in from more than half of the companies in the S&P 500 and almost 90% have beaten earnings projections -- on track for the best reading since Bloomberg began compiling the data in 1993.“The earnings season, the economic recovery and the Covid trends -- that’s still going to be the near-term catalyst -- and looking for any hints of change in direction from the Fed,” said Keith Lerner, chief market strategist at Truist Advisory Services.Ignoring the adage “sell in May and go away” may reward stock investors in 2021, according to LPL Financial. The firm cited the S&P 500’s track record during the past decade in a blog post. In eight of those years, the gauge posted gains for the six months ended in October. Last year’s rally was 12%, the biggest since 2009, when a bull market was just getting started. The benchmark produced an average advance of 3.8% for all 10 years, beating a 1.7% average since 1950.Here are some key events to watch this week:U.S. trade balance, factory orders, durable goods are due TuesdayThe Reserve Bank of Australia monetary policy decision is scheduled for TuesdayChicago Fed President Charles Evans gives a virtual speech at an event hosted by Bard College on Wednesday. Cleveland Fed President Loretta Mester gives a virtual speech to the Boston Economic ClubBank of England rate decision ThursdayThe April U.S. employment report is released on FridayThese are some of the main moves in markets:StocksThe S&P 500 rose 0.4% as of 12:27 p.m. New York timeThe Nasdaq 100 fell 0.2%The Dow Jones Industrial Average rose 0.8%The MSCI World index rose 0.3%CurrenciesThe Bloomberg Dollar Spot Index fell 0.3%The euro rose 0.3% to $1.2056The Japanese yen rose 0.2% to 109.10 per dollarBondsThe yield on 10-year Treasuries declined two basis points to 1.61%Germany’s 10-year yield was little changed at -0.20%CommoditiesWest Texas Intermediate crude rose 1.2% to $64 a barrelGold futures rose 1.5% to $1,794 an ounceFor 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. Business Yahoo Finance 210503 10h25m Buffett on his relationship with Munger: 'In 62 years, we've never gotten mad at each other' 'Warren I don't have to agree on every damn little thing we do. We've gotten along pretty well,' says 97-year-old Charlie Munger. Business Bloomberg 210503 10h20m Mexico Hits Remittances Record in March as U.S. Stimulus Flows (Bloomberg) -- Mexican workers abroad sent home a record amount of cash in March, aided by stimulus checks from the administration of U.S. President Joe Biden.Total remittances reached $4.15 billion, up 31% from the previous month, according to central bank data released on Monday. The number was also about 2.6% higher than the same period last year, and topped the median forecast of $3.81 billion from analysts in a Bloomberg survey.Remittances to Mexico have been on the rise since the pandemic began, surprising analysts who had expected the opposite. Latino families in the U.S., where most Mexican immigrants live, suffered a harsh economic toll from the virus. Still, U.S. stimulus continues to boost money sent home, according to Alberto Ramos, chief Latin America economist at Goldman Sachs & Co LLC.“The expectation of continued fiscal stimulus and robust growth profile in the U.S. should keep remittances flow strong in 2021,” Ramos wrote in a research note. “Solid workers’ remittance flows have been adding support to the current account and to private consumption, particularly for low-income families, who have a high propensity to consume and are the overwhelming recipients of such transfers.”Read more: U.S. Stimulus Is Delivering the Cash to Mexicans That AMLO Won’tAs the U.S. Covid vaccination campaign kicked into full gear in early 2021, job prospects for Mexican immigrants improved. Compared to March of last year, the number of employed Mexican workers increased by 275,000, according to the Center for Latin American Monetary Studies.President Andres Manuel Lopez Obrador had projected last week remittances would hit a record in March, after totaling $40.6 billion in all of 2020. An estimate of 12 million Mexican workers live outside the country, and remittances account for roughly 3.5% of the country’s gross domestic product.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. Business Yahoo Finance 210503 10h19m Stimulus checks send people out to buy Rubbermaid and Mr. Coffee products: Newell Brands CEO Newell Brands had a big first quarter as people upgraded their homes during the pandemic. CEO Ravi Saligram chats with Yahoo Finance Live about the path forward. Business Yahoo Finance 210503 10h10m Stock market news live updates: Stocks trade mixed as tech shares drop, Nasdaq turns negative Stocks traded mixed on Monday, with the S&P 500 and Dow looking to kick off May on a high note while the Nasdaq declined. Howell date : 210503 10h51m17s Howell date : 210503 10h50m38s Howell date : 210503 10h38m22s Business Yahoo Finance 210503 10h25m Buffett on his relationship with Munger: 'In 62 years, we've never gotten mad at each other' 'Warren I don't have to agree on every damn little thing we do. We've gotten along pretty well,' says 97-year-old Charlie Munger. Business Yahoo Finance 210503 10h19m Stimulus checks send people out to buy Rubbermaid and Mr. Coffee products: Newell Brands CEO Newell Brands had a big first quarter as people upgraded their homes during the pandemic. CEO Ravi Saligram chats with Yahoo Finance Live about the path forward. Business Yahoo Finance 210503 10h10m Stock market news live updates: Stocks trade mixed as tech shares drop, Nasdaq turns negative Stocks traded mixed on Monday, with the S&P 500 and Dow looking to kick off May on a high note while the Nasdaq declined. Business Bloomberg 210503 10h07m Silver Leads Precious-Metals Gains on Dollar, Factory Data (Bloomberg) -- Silver led gains in precious metals as the dollar dropped and a report showed U.S. manufacturing cooled in April, boosting demand for haven assets.A gauge of factory activity fell in April from a more than 37-year high a month earlier, according to data from the Institute for Supply Management released Monday. Treasuries climbed to session highs following the data and the greenback retreated.Gold and silver have clawed back gains after dropping earlier this year as signs of an accelerating U.S. economy boosted the dollar and Treasury yields, reducing demand for the metals as stores of value. Slower expansion in U.S. manufacturing reinforces expectations that central banks including the Federal Reserve will keep interest rates near zero. Low rates bolster demand for precious metals which don’t offer interest.A weaker-than-expected ISM reading suggests “we’re not running at full speed as many had expected, and that ultimately means that we’re probably not gonna have any letup on the easing,” according to TD Securities analyst Bart Melek.Silver for immediate delivery rose as much as 4% to $26.9614 an ounce, the biggest intraday gain since Feb. 1. Gold advanced 1.2% to $1,790.95 an ounce by 11:44 a.m. in New York after dropping 0.5% last week. Palladium and platinum also gained The Bloomberg Dollar Spot Index fell 0.3%.Gold’s advance came after its first weekly decline in four as U.S. Treasury Secretary Janet Yellen said President Joe Biden’s economic plan won’t stoke inflationary pressures. Gold may continue to gain support from the Fed’s dovish approach and a weaker dollar, according to Angel Broking Ltd.’s analysts Prathamesh Mallya and Yash Sawant.The metal could gain further impetus amid expectations that outflows from gold-backed exchange traded funds will start to reverse, according to Carsten Fritsch, an analyst at Commerzbank AG.“We expect ETFs to begin registering inflows again in the second half of the year at the latest, and that this will help the gold price climb by year’s end to $2,000,” Fritsch said in a note.Copper futures for July delivery rose 1.1% to $4.516 a pound on the Comex in New York.Japan, China and the U.K. markets are closed for holidays on Monday.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. Business Bloomberg 210503 09h59m Norfolk Southern Dangles Duration Bet With 100-Year Bond Sale (Bloomberg) -- Norfolk Southern Corp. is betting investors aren’t that afraid of rising yields after all.The railroad operator is selling 100-year corporate bonds, the first to hit the market since 2018, which were also sold by the company. Monday’s offering will be just the ninth century bond issued by a corporation since 2005, according to data compiled by Bloomberg.Investors have recently shied away from taking on duration risk as bond yields rise amid an economic recovery from the pandemic. However, there are signs they’re starting to warm up to longer-dated bonds again as 30-year Treasury yields stabilize and volatility subsides, encouraging more companies to issue further out the curve.Read more: JPMorgan to BlackRock turn away from duration as economies openBonds maturing in 10 years or more generated total returns of 1.7% in April, the most of any high-grade maturity bucket, according to Bloomberg Barclays index data. EBay Inc., Equinix Inc. and Southern Co. are among high-grade companies selling 30-year debt Monday.While century bonds -- especially those from companies -- are rare, countries tend to be more common issuers. Peru sold $4 billion of such debt in November, back when the 30-year yielded around 1.5%. It’s now up to nearly 2.3%.Norfolk’s century bond may yield around 200 basis points over Treasuries, and proceeds will be used for general corporate purposes, according to a person with knowledge of the matter. It’s also selling 10-year notes to be allocated for green projects.Bank of America Corp., Morgan Stanley and Wells Fargo & Co. are managing the deal, said the person, who asked not to be identified as the details are private.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. Howell date : 210503 10h37m45s Business Yahoo Finance 210503 10h25m Buffett on his relationship with Munger: 'In 62 years, we've never gotten mad at each other' 'Warren I don't have to agree on every damn little thing we do. We've gotten along pretty well,' says 97-year-old Charlie Munger. Business Yahoo Finance 210503 10h19m Stimulus checks send people out to buy Rubbermaid and Mr. Coffee products: Newell Brands CEO Newell Brands had a big first quarter as people upgraded their homes during the pandemic. CEO Ravi Saligram chats with Yahoo Finance Live about the path forward. Business Yahoo Finance 210503 10h10m Stock market news live updates: Stocks trade mixed as tech shares drop, Nasdaq turns negative Stocks traded mixed on Monday, with the S&P 500 and Dow looking to kick off May on a high note while the Nasdaq declined. Business Bloomberg 210503 10h07m Silver Leads Precious-Metals Gains on Dollar, Factory Data (Bloomberg) -- Silver led gains in precious metals as the dollar dropped and a report showed U.S. manufacturing cooled in April, boosting demand for haven assets.A gauge of factory activity fell in April from a more than 37-year high a month earlier, according to data from the Institute for Supply Management released Monday. Treasuries climbed to session highs following the data and the greenback retreated.Gold and silver have clawed back gains after dropping earlier this year as signs of an accelerating U.S. economy boosted the dollar and Treasury yields, reducing demand for the metals as stores of value. Slower expansion in U.S. manufacturing reinforces expectations that central banks including the Federal Reserve will keep interest rates near zero. Low rates bolster demand for precious metals which don’t offer interest.A weaker-than-expected ISM reading suggests “we’re not running at full speed as many had expected, and that ultimately means that we’re probably not gonna have any letup on the easing,” according to TD Securities analyst Bart Melek.Silver for immediate delivery rose as much as 4% to $26.9614 an ounce, the biggest intraday gain since Feb. 1. Gold advanced 1.2% to $1,790.95 an ounce by 11:44 a.m. in New York after dropping 0.5% last week. Palladium and platinum also gained The Bloomberg Dollar Spot Index fell 0.3%.Gold’s advance came after its first weekly decline in four as U.S. Treasury Secretary Janet Yellen said President Joe Biden’s economic plan won’t stoke inflationary pressures. Gold may continue to gain support from the Fed’s dovish approach and a weaker dollar, according to Angel Broking Ltd.’s analysts Prathamesh Mallya and Yash Sawant.The metal could gain further impetus amid expectations that outflows from gold-backed exchange traded funds will start to reverse, according to Carsten Fritsch, an analyst at Commerzbank AG.“We expect ETFs to begin registering inflows again in the second half of the year at the latest, and that this will help the gold price climb by year’s end to $2,000,” Fritsch said in a note.Copper futures for July delivery rose 1.1% to $4.516 a pound on the Comex in New York.Japan, China and the U.K. markets are closed for holidays on Monday.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. Business Bloomberg 210503 09h59m Norfolk Southern Dangles Duration Bet With 100-Year Bond Sale (Bloomberg) -- Norfolk Southern Corp. is betting investors aren’t that afraid of rising yields after all.The railroad operator is selling 100-year corporate bonds, the first to hit the market since 2018, which were also sold by the company. Monday’s offering will be just the ninth century bond issued by a corporation since 2005, according to data compiled by Bloomberg.Investors have recently shied away from taking on duration risk as bond yields rise amid an economic recovery from the pandemic. However, there are signs they’re starting to warm up to longer-dated bonds again as 30-year Treasury yields stabilize and volatility subsides, encouraging more companies to issue further out the curve.Read more: JPMorgan to BlackRock turn away from duration as economies openBonds maturing in 10 years or more generated total returns of 1.7% in April, the most of any high-grade maturity bucket, according to Bloomberg Barclays index data. EBay Inc., Equinix Inc. and Southern Co. are among high-grade companies selling 30-year debt Monday.While century bonds -- especially those from companies -- are rare, countries tend to be more common issuers. Peru sold $4 billion of such debt in November, back when the 30-year yielded around 1.5%. It’s now up to nearly 2.3%.Norfolk’s century bond may yield around 200 basis points over Treasuries, and proceeds will be used for general corporate purposes, according to a person with knowledge of the matter. It’s also selling 10-year notes to be allocated for green projects.Bank of America Corp., Morgan Stanley and Wells Fargo & Co. are managing the deal, said the person, who asked not to be identified as the details are private.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. Howell date : 210503 10h37m08s Business Yahoo Finance 210503 10h26m Buffett on his relationship with Munger: 'In 62 years, we've never gotten mad at each other' 'Warren I don't have to agree on every damn little thing we do. We've gotten along pretty well,' says 97-year-old Charlie Munger. Business Yahoo Finance 210503 10h20m Stimulus checks send people out to buy Rubbermaid and Mr. Coffee products: Newell Brands CEO Newell Brands had a big first quarter as people upgraded their homes during the pandemic. CEO Ravi Saligram chats with Yahoo Finance Live about the path forward. Business Yahoo Finance 210503 10h10m Stock market news live updates: Stocks trade mixed as tech shares drop, Nasdaq turns negative Stocks traded mixed on Monday, with the S&P 500 and Dow looking to kick off May on a high note while the Nasdaq declined. Business Bloomberg 210503 10h07m Silver Leads Precious-Metals Gains on Dollar, Factory Data (Bloomberg) -- Silver led gains in precious metals as the dollar dropped and a report showed U.S. manufacturing cooled in April, boosting demand for haven assets.A gauge of factory activity fell in April from a more than 37-year high a month earlier, according to data from the Institute for Supply Management released Monday. Treasuries climbed to session highs following the data and the greenback retreated.Gold and silver have clawed back gains after dropping earlier this year as signs of an accelerating U.S. economy boosted the dollar and Treasury yields, reducing demand for the metals as stores of value. Slower expansion in U.S. manufacturing reinforces expectations that central banks including the Federal Reserve will keep interest rates near zero. Low rates bolster demand for precious metals which don’t offer interest.A weaker-than-expected ISM reading suggests “we’re not running at full speed as many had expected, and that ultimately means that we’re probably not gonna have any letup on the easing,” according to TD Securities analyst Bart Melek.Silver for immediate delivery rose as much as 4% to $26.9614 an ounce, the biggest intraday gain since Feb. 1. Gold advanced 1.2% to $1,790.95 an ounce by 11:44 a.m. in New York after dropping 0.5% last week. Palladium and platinum also gained The Bloomberg Dollar Spot Index fell 0.3%.Gold’s advance came after its first weekly decline in four as U.S. Treasury Secretary Janet Yellen said President Joe Biden’s economic plan won’t stoke inflationary pressures. Gold may continue to gain support from the Fed’s dovish approach and a weaker dollar, according to Angel Broking Ltd.’s analysts Prathamesh Mallya and Yash Sawant.The metal could gain further impetus amid expectations that outflows from gold-backed exchange traded funds will start to reverse, according to Carsten Fritsch, an analyst at Commerzbank AG.“We expect ETFs to begin registering inflows again in the second half of the year at the latest, and that this will help the gold price climb by year’s end to $2,000,” Fritsch said in a note.Copper futures for July delivery rose 1.1% to $4.516 a pound on the Comex in New York.Japan, China and the U.K. markets are closed for holidays on Monday.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. Business Bloomberg 210503 10h00m Norfolk Southern Dangles Duration Bet With 100-Year Bond Sale (Bloomberg) -- Norfolk Southern Corp. is betting investors aren’t that afraid of rising yields after all.The railroad operator is selling 100-year corporate bonds, the first to hit the market since 2018, which were also sold by the company. Monday’s offering will be just the ninth century bond issued by a corporation since 2005, according to data compiled by Bloomberg.Investors have recently shied away from taking on duration risk as bond yields rise amid an economic recovery from the pandemic. However, there are signs they’re starting to warm up to longer-dated bonds again as 30-year Treasury yields stabilize and volatility subsides, encouraging more companies to issue further out the curve.Read more: JPMorgan to BlackRock turn away from duration as economies openBonds maturing in 10 years or more generated total returns of 1.7% in April, the most of any high-grade maturity bucket, according to Bloomberg Barclays index data. EBay Inc., Equinix Inc. and Southern Co. are among high-grade companies selling 30-year debt Monday.While century bonds -- especially those from companies -- are rare, countries tend to be more common issuers. Peru sold $4 billion of such debt in November, back when the 30-year yielded around 1.5%. It’s now up to nearly 2.3%.Norfolk’s century bond may yield around 200 basis points over Treasuries, and proceeds will be used for general corporate purposes, according to a person with knowledge of the matter. It’s also selling 10-year notes to be allocated for green projects.Bank of America Corp., Morgan Stanley and Wells Fargo & Co. are managing the deal, said the person, who asked not to be identified as the details are private.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. Howell date : 210503 10h17m18s Business Bloomberg 210503 10h07m Silver Leads Precious-Metals Gains on Dollar, Factory Data (Bloomberg) -- Silver led gains in precious metals as the dollar dropped and a report showed U.S. manufacturing cooled in April, boosting demand for haven assets.A gauge of factory activity fell in April from a more than 37-year high a month earlier, according to data from the Institute for Supply Management released Monday. Treasuries climbed to session highs following the data and the greenback retreated.Gold and silver have clawed back gains after dropping earlier this year as signs of an accelerating U.S. economy boosted the dollar and Treasury yields, reducing demand for the metals as stores of value. Slower expansion in U.S. manufacturing reinforces expectations that central banks including the Federal Reserve will keep interest rates near zero. Low rates bolster demand for precious metals which don’t offer interest.A weaker-than-expected ISM reading suggests “we’re not running at full speed as many had expected, and that ultimately means that we’re probably not gonna have any letup on the easing,” according to TD Securities analyst Bart Melek.Silver for immediate delivery rose as much as 4% to $26.9614 an ounce, the biggest intraday gain since Feb. 1. Gold advanced 1.2% to $1,790.95 an ounce by 11:44 a.m. in New York after dropping 0.5% last week. Palladium and platinum also gained The Bloomberg Dollar Spot Index fell 0.3%.Gold’s advance came after its first weekly decline in four as U.S. Treasury Secretary Janet Yellen said President Joe Biden’s economic plan won’t stoke inflationary pressures. Gold may continue to gain support from the Fed’s dovish approach and a weaker dollar, according to Angel Broking Ltd.’s analysts Prathamesh Mallya and Yash Sawant.The metal could gain further impetus amid expectations that outflows from gold-backed exchange traded funds will start to reverse, according to Carsten Fritsch, an analyst at Commerzbank AG.“We expect ETFs to begin registering inflows again in the second half of the year at the latest, and that this will help the gold price climb by year’s end to $2,000,” Fritsch said in a note.Copper futures for July delivery rose 1.1% to $4.516 a pound on the Comex in New York.Japan, China and the U.K. markets are closed for holidays on Monday.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. U.S. Bloomberg 210503 09h55m N.Y. Region Capacity Restrictions to End; Subway Returns to 24-7 (Bloomberg) -- Most capacity restrictions will be lifted across the tri-state region on May 19, New York Governor Andrew Cuomo said.New York City will again have 24-hour subways, boosting transportation options for workers as the most populous U.S. city inches toward normalcy.The Metropolitan Transportation Authority, the largest mass-transit network in the U.S., will resume round-the-clock subway operations on May 17, Cuomo said Monday. The state-operated transit agency has been urged by elected officials and transportation advocacy groups to return the city that never sleeps to its normal subway schedule.“Today is a milestone for New York state and a significant moment of transition,” Cuomo said.The move will provide an essential service to restaurant and hospital staff and others who commute outside the traditional 9 a.m.-to-5 p.m. workday. It will also help transport more people around the city as the MTA anticipates ridership will increase alongside an uptick in business activity and cultural events.Mayor Bill de Blasio has set a goal to fully reopen the city’s restaurants, bars, arenas and stores by July 1. Cuomo, who has ultimate restoration authority over the city, has declined to make a projection, but has said everything may be open even sooner. About 80,000 city workers returned to their offices Monday, and de Blasio said he hopes the private sector follows suit.In New York state, the outdoor food and beverage curfew will be lifted May 17, and the indoor curfew will be lifted on May 31, Cuomo said Monday. The outdoor large stadium capacity will go to 33% in New York state on May 19, Cuomo said.The state will keep the six-foot social distancing requirement, pursuant to CDC guidance, Cuomo said. Events that can show proof of full vaccination for every person or recent negative test results do not have to follow that requirement, Cuomo said.“This is a major reopening of economic and social activity,” Cuomo said Monday.New York was the early center of the U.S. outbreak, and Cuomo shut down the city as the virus spread. In May 2020, he ordered the MTA to stop its subways for four overnight hours every day to clean and disinfect trains and stations. It cut that time to two hours in February.The 24-hour restart comes as the spread of the coronavirus is decreasing. New York City posted on Sunday a seven-day daily average of 1,370 confirmed and probable cases, down from a 28-day daily average of 2,361. Hospitalizations and deaths have also decreased. Nearly a third of city residents are fully vaccinated, data show.The pandemic decimated MTA’s ridership. Subway usage is still down 65% from pre-outbreak levels as people work from home. The agency will receive a combined $14.5 billion of federal aid to cover lost revenue.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. Business Bloomberg 210503 09h54m European Stocks Rise as Stellar Earnings Outweigh Supply Jitters (Bloomberg) -- European equities rose on Monday, as investors weighed robust earnings reports and a brightening economic outlook against the risks of rising inflation, supply disruptions, and higher taxes. The U.K. market was closed for a public holiday.The Stoxx Europe 600 Index climbed 0.6%, moving closer to historic highs reached last month. Carmakers led advances, despite continuing warnings about production disruptions due to a shortage of chips. Ferrari NV gained 2.6% amid upbeat estimates for its earnings report due Tuesday.Renewables underperformed after Citigroup Inc. said in a note that Siemens Gamesa Renewable Energy SA’s 2021 guidance was disappointing. Vestas Wind Systems A/S was among the biggest drags on the Stoxx 600 Index, dropping 4.3%.The Stoxx 600 Index has climbed more than 10% this year, buoyed by expectations of rapid economic recovery, as vaccinations against the coronavirus progress while fiscal and monetary policy across the region remains loose. While much of the positive news is already priced into lofty valuations, European companies are delivering one of the best earnings seasons on record, supporting the gauge.Hermes International rose, trading near all-time highs, as investors continue betting on luxury winners in a sector that’s powering ahead in spite of Covid-19. Insurance also rose, with Allianz SE gaining 1.6%.A gauge of manufacturing activity in the euro area rose to 62.9 in April, the highest reading in the survey’s 24-year history. The violent rebound has caused supply shortages and a surge in prices, with companies surveyed reporting unprecedented delays in securing raw materials and higher costs for chemicals, metals and plastics.“The ‘laissez-faire attitude of central bankers will not prevent long rates from rising,” Oddo strategist Sylvain Goyon wrote in a note on Monday. “This situation, current and past, is favorable to a reduction in the dispersion of expectations and therefore of a return of the preference for value.”You want more news on this market? Click here for a curated First Word channel of actionable news from Bloomberg and select sources. It can be customized to your preferences by clicking into Actions on the toolbar or hitting the HELP key for assistanceFor 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. Business Bloomberg 210503 09h49m Tug of War Between Stimulus, Virus Leaves EM Investors Torn (Bloomberg) -- Emerging-market investors head into the first week of May with as many reasons to be gloomy as cheerful.For all the support emanating from U.S. stimulus plans, dovish central banks and rising commodity prices, worries over India’s deepening Covid-19 crisis, escalating U.S.-Russia tensions and China’s Huarong debt saga may give buyers pause. Traders have become less bullish about the outlook for developing nations amid increasing inflation concerns, with most who sought refuge in cash not yet ready to put it to work, according to a survey by HSBC Holdings Plc.“Emerging markets will continue to be torn between positive tailwinds from the U.S. economic recovery and the very difficult infection situation in countries such as Brazil and India,” said Tai Hui, chief Asia market strategist at JPMorgan Asset Management in Hong Kong. “A stronger U.S. recovery could also bring potential inflation and higher yields, which may cap the progress of markets that are traditionally vulnerable to rising Treasury yields.”Listen to the EM Weekly Podcast: Virus Resurgence Adds to ‘Sell in May’ MoodMorgan Stanley said it favors emerging-market local debt over currencies as developing-nation central banks will probably refrain from tightening too much. Meantime, Deutsche Bank AG predicts the Chinese yuan may rally further on strong inflows while recommending a cautious stance on the Turkish lira.While April proved a positive month for emerging markets, with bonds and currencies posting their first monthly gains of 2021, history suggests potential challenges ahead. May was a losing month for developing-nation stocks, currencies and local bonds in at least seven of the past 10 years, according to data compiled by Bloomberg.Central-bank decisions from Thailand to Turkey and Brazil this week could help investors decide whether now is the time to buy.Rate DecisionsBrazil’s central bank may boost its key Selic rate by 75 basis points to 3.5% Wednesday, according to economists surveyed by BloombergBloomberg Economics expects the monetary authority to signal that there are more hikes to come while indicating that the decisions will depend on dataApril trade-balance figures will be posted on Monday, March industrial production comes Wednesday and retail sales are due FridayThe real was the second-biggest gainer among emerging-market currencies in AprilBrazil investors will be also keen for any updates on a lower house report that could help launch tax-reform discussions. The Senate will also continue its probe into President Jair Bolsonaro’s handling of the pandemicThe Central Bank of Turkey will probably keep its key rate at 19% on Thursday after Governor Sahap Kavcioglu’s vow to maintain a tight monetary-policy stance helped the lira beat most peers last week“Rising inflation and the promise to keep rates above price gains will prevent the central bank from easing as the political leadership desires,” Bloomberg Economics said in a reportData on Monday showed that Turkey’s annual inflation rate climbed to 17.1% in April, narrowing the gap with the one-week repo rateThailand’s central bank meets Wednesday while Malaysia’s gathers on Thursday, with both set to keep interest rates at record lowsThai policy makers will leave their benchmark at 0.5% for the next 12 months despite the resurgence of virus cases, Barclays economists Brian Tan and Shreya Sodhani in Singapore wrote in a note. Authorities prefer targeted measures rather than a rate cut, they saidThe BOT last lowered its benchmark in May 2020. The baht is the worst-performing currency in emerging Asia this yearMalaysia unveiled a 20 billion-ringgit ($4.9 billion) stimulus package in March and began a vaccination program in February to boost the recovery. Exports recovered to pre-Covid-19 levels and an accommodative stance would further support growth, according to Morgan Stanley economists including Deyi Tan in SingaporeBank Negara Malaysia last eased policy in July 2020. The ringgit has weakened about 2% this yearIn eastern Europe, Poland and the Czech Republic will also probably leave their key rates unchangedInvestors will monitor minutes from Colombia’s April central bank meeting on Monday for clues on the path ahead after policy makers left the key rate untouchedOn Wednesday, the nation will release April CPI data, which will probably show an annual increaseWhat Else to WatchNations across the developing world announced manufacturing PMI for AprilOn Monday, the purchasing managers’ index for Brazil manufacturing fell in April from a month earlier; the gauge for Mexico PMI roseAsia’s manufacturing activity remained robust through April even as a gauge of factory output in China, the region’s top economy and industrial powerhouse, showed signs of coolingIndonesia released CPI data on Monday showing annual price gains quickened to 1.4% in April, the fastest pace since January. South Korea publishes its own figures on Tuesday, while the Philippines and Thailand disclose theirs on Wednesday and Taiwan follows on ThursdayIndonesia posts first-quarter GDP data Wednesday. Southeast Asia’s largest economy likely shrank 0.7% from a year earlier, an improvement from the 2.2% fourth-quarter decline, according to a Bloomberg survey. The rupiah is one of this year’s biggest losers in AsiaSouth Korea will report current-account figures for March on Friday. The surplus widened to $8 billion in March from $7 billion in FebruaryChina’s trade figures, due Friday, will show the extent of the nation’s economic recoveryReports on foreign reserves, the current-account balance and the Caixin PMI services gauge will be published the same day. The yuan has strengthened almost 1% this yearTaiwan will issue trade data on Friday. Expanding exports have helped the local dollar appreciate 2% this year, the best performer in emerging AsiaThe Philippines will release trade statistics on FridayRussian inflation probably decelerated in April but remains well above the central bank’s 4% target“That will be of little comfort to the central bank, which is likely to keep tightening policy in the face of ‘very alarming’ risks,” Bloomberg Economics said in a reportWhile a hawkish central bank, higher oil prices and a de-escalation in tensions with Ukraine will help the ruble to strengthen toward 71 per dollar in the next three months, political frictions with the U.S. may limit further gains, Goldman Sachs Group Inc. said in a reportThe Chilean peso strengthened as the Imacec, a proxy for gross domestic product, increased at the fastest pace in almost three years in March, beating forecastsOn Friday, traders will watch April CPI data for any signs of mounting inflationary pressuresIn Mexico, April CPI data released Friday will probably show a jump from a month earlier, according to Bloomberg Economics(Updates with Mexico, Brazil PMIs. Earlier, updated Asia PMIs, Indonesia CPI data.)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. Business Bloomberg 210503 09h45m Bank of America, JPMorgan Enter Swaps Trade Tied to New Libor Replacement (Bloomberg) -- Bank of America Corp. and JPMorgan Chase & Co. struck the first swaps trade tied to the Bloomberg Short Term Bank Yield index Friday, as Wall Street tests new benchmarks meant to help replace Libor.The banks entered into a $250 million one-year basis swap with one side tied to BSBY, as the reference rate is known. The benchmark is constructed using aggregated and anonymized data based on transactions of commercial paper, certificates of deposit, U.S. dollar bank deposits and short-term bank bond trades, reflecting banks’ marginal funding costs. The other side of the swap is linked to the Secured Overnight Financing Rate.Banks, barred from entering into new contracts tied to Libor beginning next year, have ramped up their efforts to prepare for its demise in recent months. While they’re planning to lean heavily on SOFR -- the Federal Reserve’s preferred replacement rate -- as an alternative benchmark for floating-rate instruments, market watchers say there’s room for others, particularly ones that include a credit component, which SOFR lacks.BSBY is one of an array of contenders, including Ameribor and ICE’s Bank Yield Index, seeking to carve out a niche for themselves in the post-Libor landscape.“We want to signal our support for credit-sensitive rates alongside SOFR,” said Sonali Theisen, head of fixed income, currencies and commodities electronic trading and market structure at BofA. “There’s a lot of work being done on having a rate that looks and feels like Libor.”BSBY is administered by Bloomberg Index Services Limited, a subsidiary of Bloomberg LP, the parent of Bloomberg News.For more on the transition away from Libor, subscribe to the Libor CountdownBofA and JPMorgan say that the usage of other alternative rates won’t curtail efforts to facilitate the wider adoption of SOFR.“We’re all focused on transitioning off dollar Libor as soon as possible,” said Thomas Pluta, global head of linear rates trading at JPMorgan. “This isn’t going to slow the SOFR transition down -- if anything, it’s going to accelerate it.”The transaction comes roughly five months after the execution of the first Ameribor-linked interest-rate swap transaction, and more than two years after the first such trade tied to SOFR.Earlier in April, Bank of America also issued a $1 billion six-month floating-rate note referencing the one-month BSBY index, according to a filing.Overnight BSBY most recently printed at 0.077%, compared to 0.01% for SOFR and 0.096% for Ameribor.Friday’s swap is “an important development in the market,” said Kavi Gupta, co-head of global rates trading at Bank of America. “We expect activity levels to pick up in the next quarter.”(Updates with benchmark levels in penultimate paragraph. A previous version of this story was corrected to note the BSBY-linked floating-rate note was issued in April.)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. Howell date : 210503 09h46m53s Business Yahoo Finance Video 210503 09h29m Investors ‘continue to underestimate the incredible recovery’ in the economy: Strategist State Street Global Advisors US SPDR Business Chief Investment Strategist Michael Arone joins Yahoo Finance Live to discuss the latest market action. Business Bloomberg 210503 09h26m Stocks Pare Gains as Nasdaq 100 Drops; Bonds Rise: Markets Wrap (Bloomberg) -- Stocks came off session highs as giants Tesla Inc. and Amazon.com Inc. weighed on the Nasdaq 100. Traders also assessed economic data, with inflation remaining at the forefront of the investment debate. The dollar fell, while Treasuries advanced.Most major groups in the S&P 500 rose, with gains in commodity and industrial shares offsetting losses in tech and retail companies. Moderna Inc. rallied after agreeing to provide as many as 500 million doses of its Covid-19 shot to the vaccination program known as Covax. Berkshire Hathaway Inc. climbed as Warren Buffett said Greg Abel, vice chairman of non-insurance businesses, would be his likely successor. Estee Lauder Cos. sank as the cosmetics giant’s sales missed estimates.Growth at U.S. manufacturers cooled in April as ongoing supply chain issues and materials shortages limited production efforts and enlarged backlogs. A gauge of factory activity fell to 60.7 from a more than 37-year high of 64.7 a month earlier, according to data from the Institute for Supply Management released Monday. Meantime, the group’s gauge of prices paid for materials jumped to the highest since July 2008, underscoring shortages of inputs.There’s more inflation “than people would have anticipated six months ago,” according to Buffett. Meanwhile, Treasury Secretary Janet Yellen said that President Joe Biden’s economic plan is unlikely to create price pressures. Federal Reserve Chairman Jerome Powell speaks at 2:20 p.m. Washington time. The April U.S. employment report is due Friday, and some economists predict employers added 1 million or more jobs, inching the labor market closer to its pre-pandemic levels.Results are in from more than half of the companies in the S&P 500 and almost 90% have beaten earnings projections -- on track for the best reading since Bloomberg began compiling the data in 1993.“The earnings season, the economic recovery and the Covid trends -- that’s still going to be the near-term catalyst -- and looking for any hints of change in direction from the Fed,” said Keith Lerner, chief market strategist at Truist Advisory Services.Ignoring the adage “sell in May and go away” may reward stock investors in 2021, according to LPL Financial. The firm cited the S&P 500’s track record during the past decade in a blog post. In eight of those years, the gauge posted gains for the six months ended in October. Last year’s rally was 12%, the biggest since 2009, when a bull market was just getting started. The benchmark produced an average advance of 3.8% for all 10 years, beating a 1.7% average since 1950.Here are some key events to watch this week:U.S. trade balance, factory orders, durable goods are due TuesdayThe Reserve Bank of Australia monetary policy decision is scheduled for TuesdayChicago Fed President Charles Evans gives a virtual speech at an event hosted by Bard College on Wednesday. Cleveland Fed President Loretta Mester gives a virtual speech to the Boston Economic ClubBank of England rate decision ThursdayThe April U.S. employment report is released on FridayThese are some of the main moves in markets:StocksThe S&P 500 rose 0.4% as of 11:22 a.m. New York timeThe Nasdaq 100 fell 0.3%The Dow Jones Industrial Average rose 0.9%The Stoxx Europe 600 rose 0.5%The MSCI World index rose 0.3%CurrenciesThe Bloomberg Dollar Spot Index fell 0.3%The euro rose 0.4% to $1.2067The Japanese yen rose 0.3% to 109.03 per dollarBondsThe yield on 10-year Treasuries declined two basis points to 1.61%Germany’s 10-year yield was little changed at -0.21%CommoditiesWest Texas Intermediate crude rose 1.5% to $65 a barrelGold futures rose 1.5% to $1,794 an ounceFor 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. Business Reuters 210503 09h23m UPDATE 1-Apple faces down 'Fortnite' creator Epic Games in major antitrust trial Attorneys for "Fortnite" creator Epic Games and Apple Inc will make opening arguments Monday at an antitrust trial whose ultimate outcome could affect Apple's fast-growing App Store business. The lawsuit, which Epic brought last year in the U.S. District Court for the Northern District of California, centers on two of Apple practices that have become cornerstones of its business: Apple's requirement that virtually all third-party software for the world's 1 billion iPhones be distributed through its App Store, and the requirement that developers use Apple's in-app purchase system, which charges commissions of up to 30%. Judge Yvonne Gonzalez Rogers will preside over the three-week trial in a courtroom in Oakland, California. Business Bloomberg 210503 09h18m BioNTech Soars to Record as Vaccine Success Spurs on Biotechs (Bloomberg) -- BioNTech SE, the vaccine maker partnered with Pfizer Inc. on its Covid-19 shot, rose as much as 10% on Monday as the stock rallied past $200 a share at the open, breaking yet another record after closing at new highs four out of five days last week.The German company was among the top gainers as the biotech sector regained lost footing and optimism about economies reopening bolstered stocks. Shots from Pfizer and BioNTech as well as Moderna Inc. have helped the U.S. reach more than 245 million doses administered, while side-stepping some of the safety concerns that have arisen for shots from AstraZeneca Plc and Johnson & Johnson.The biotech sector is bouncing back after hitting a four-month low in early April on regulatory concerns related to industry consolidation, new drug applications and potential legislation to rein in the cost of prescriptions. The Nasdaq Biotech Index is up 5.7% from an April 12 trough while the broader market climbed 1.7%. Returns for the biopharma benchmark still trail S&P 500 stocks for the year.“Vaccines are winning,” Raymond James analysts led by Chris Meekins said in a note to clients. In the U.S., infections, death and hospitalizations are still moving in the right direction, with cases now at their lowest seven-day average since early October. But other parts of the world like India are still suffering amid a massive resurgence in infections, they added.First-quarter earnings from Pfizer on Tuesday before the stock market opens could provide a further boost for the German biotech. Morgan Stanley expects the pharmaceutical heavyweight to “significantly raise” its vaccine sales expectations for the year and forecasts they could top $19 billion in 2021. Pfizer rose as much as 2.4% on Monday for the biggest gain since April 16.Moderna also jumped as much as 5.6% in early trading, and the stock topped its record closing high of $185.98.Other companies waiting on critical data on their Covid-19 inoculations were mixed, including CureVac NV which rose about 3% and Novavax Inc. with a 12% decline.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. Howell date : 210503 09h16m27s Business Bloomberg 210503 09h08m Bank of America, JPMorgan Enter Swaps Trade Tied to New Libor Replacement (Bloomberg) -- Bank of America Corp. and JPMorgan Chase & Co. struck the first swaps trade tied to the Bloomberg Short Term Bank Yield index Friday, as Wall Street tests new benchmarks meant to help replace Libor.The banks entered into a $250 million one-year basis swap with one side tied to BSBY, as the reference rate is known. The benchmark is constructed using aggregated and anonymized data based on transactions of commercial paper, certificates of deposit, U.S. dollar bank deposits and short-term bank bond trades, reflecting banks’ marginal funding costs. The other side of the swap is linked to the Secured Overnight Financing Rate.Banks, barred from entering into new contracts tied to Libor beginning next year, have ramped up their efforts to prepare for its demise in recent months. While they’re planning to lean heavily on SOFR -- the Federal Reserve’s preferred replacement rate -- as an alternative benchmark for floating-rate instruments, market watchers say there’s room for others, particularly ones that include a credit component, which SOFR lacks.BSBY is one of an array of contenders, including Ameribor and ICE’s Bank Yield Index, seeking to carve out a niche for themselves in the post-Libor landscape.“We want to signal our support for credit-sensitive rates alongside SOFR,” said Sonali Theisen, head of fixed income, currencies and commodities electronic trading and market structure at BofA. “There’s a lot of work being done on having a rate that looks and feels like Libor.”BSBY is administered by Bloomberg Index Services Limited, a subsidiary of Bloomberg LP, the parent of Bloomberg News.For more on the transition away from Libor, subscribe to the Libor CountdownBofA and JPMorgan say that the usage of alternative rates won’t curtail efforts to facilitate the wider adoption of SOFR.“We’re all focused on transitioning off dollar Libor as soon as possible,” said Thomas Pluta, global head of linear rates trading at JPMorgan. “This isn’t going to slow the SOFR transition down -- if anything, it’s going to accelerate it.”The transaction comes roughly five months after the execution of the first Ameribor-linked interest-rate swap transaction, and more than two years after the first such trade tied to SOFR.Earlier in April, Bank of America also issued a $1 billion six-month floating-rate note referencing the one-month BSBY index, according to a filing.Friday’s swap is “an important development in the market,” said Kavi Gupta, co-head of global rates trading at Bank of America. “We expect activity levels to pick up in the next quarter.”(Corrects penultimate paragraph to note BSBY-linked floating-rate note was issued in April.)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. Business Reuters 210503 09h04m Apple faces down 'Fortnite' creator Epic Games in major antitrust trial Attorneys for "Fortnite" creator Epic Games and Apple Inc will make opening arguments Monday at an antitrust trial whose ultimate outcome could affect Apple's fast-growing App Store business. The lawsuit, which Epic brought last year in the U.S. District Court for the Northern District of California, centers on two of Apple practices that have become cornerstones of its business: Apple's requirement that virtually all third-party software for the world's 1 billion iPhones be distributed through its App Store, and the requirement that developers use Apple's in-app purchase system, which charges commissions of up to 30%. Epic broke Apple's rules last year when it introduced its own in-app payment system in "Fornite" to circumnavigate Apple's commissions. Business Yahoo Finance 210503 09h04m Stock market news live updates: Stocks advance, Dow gains 200 points, or 0.6% Stock futures pointed to a sharply higher open Monday morning, with the three major indexes looking to kick off May on a high note. Business Bloomberg 210503 09h00m Hertz Gets Sweetened Knighthead Offer in Brawl to Buy Renter (Bloomberg) -- Investment firms Knighthead Capital Management and Certares Management submitted a sweetened offer to buy Hertz Global Holdings Inc. out of bankruptcy in a deal that could see equity investors recover $2.25 a share.Hertz will evaluate the proposal that assigns the rental-car company a more than $6.2 billion enterprise value to determine if it’s higher than one from its current reorganization sponsor, a group backed by Centerbridge Partners, according to people with knowledge of the matter who asked not to be named because the bid isn’t yet public.The bid includes fully committed debt and equity financing, the people said. Hertz bondholders would be paid in full while shareholders get the chance to own a bigger portion of the reorganized company.Hertz’s existing equity holders would receive 50 cents per share plus the chance to participate in either a boosted $1.3 billion rights offering or warrants for up to 10% of the reorganized company, the people said. Together, the cash and warrants would be worth around $2.25 a share, they said.Hertz shares jumped as much as 14% to $2.57 on Monday morning in New York after Bloomberg reported on the boosted offer. The plan gives Hertz an equity value of roughly $5.9 billion. Knighthead will fund $2.2 billion of the deal, and Apollo Global Management has also committed $1.5 billion of preferred equity, down from $2.5 billion in earlier discussions, the people said.The battle over ownership of Hertz has been heating up amid surging demand for travel in the U.S. Last month the company picked a plan from Centerbridge, Warburg Pincus and Dundon Capital Partners that outbid an earlier Knighthead deal. Both groups have since revised their plans. If the Knighthead bid meets Hertz’s qualifications, an auction may be held May 10 to determine the best bid.Representatives for Knighthead and Certares declined to comment. A representative for Hertz didn’t immediately respond to a request for comment.Last month, U.S. Bankruptcy Judge Mary Walrath gave Hertz permission to pay Centerbridge a so-called breakup fee if its plan isn’t chosen. Walrath also allowed Hertz to start the process of collecting creditor votes on that proposal.Hertz has said it wants to exit bankruptcy by summer to take advantage of a hot stock market and to capture an expected increase in vacation rentals. The industry is raising prices as post-vaccination business and leisure travel surges and household-name rental companies don’t have enough cars for customers to drive off the lot.The case is Hertz Corp. 20-11218, U.S. Bankruptcy Court, District of Delaware (Wilmington). To view the docket on Bloomberg Law, click here(Updates with share price and chart in fifth 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. Business Yahoo Finance Video 210503 08h59m Central banks are pivoting toward digital currencies -- here's why The U.S. nonprofit Digital Dollar Project is set to launch five pilot programs over the next year to test the potential uses of a U.S. central bank digital currency. Christopher Giancarlo, Former Chairman of the U.S. Commodity Futures Trading Commission, and David Treat, Global Blockchain Lead at Accenture, join Yahoo Finance Live to discuss. https://finance.yahoo.com/video/central-banks-pivoting-toward-digital-145859949.html Business Bloomberg 210503 08h59m U.S. Factory Growth Settles Back as Supply Chain Snags Linger (Bloomberg) -- Growth at U.S. manufacturers cooled in April as ongoing supply chain issues and materials shortages limited production efforts and enlarged backlogs.A gauge of factory activity fell to 60.7 from a more than 37-year high of 64.7 a month earlier, according to data from the Institute for Supply Management released Monday. Readings above 50 indicate expansion. The report echoes separate figures showing euro-area manufacturers are also battling soaring materials prices and large numbers of unfilled orders.Persistent supply challenges are restraining otherwise robust momentum in manufacturing output, leading to record backlogs and driving materials prices higher. Factories and their customers have whittled down inventories to meet sturdy demand, the ISM figures showed.Purchasing managers “reported that their companies and suppliers continue to struggle to meet increasing rates of demand due to coronavirus impacts limiting availability of parts and materials,” Timothy Fiore, chair of the ISM’s manufacturing business survey committee, said in a statement.“Recent record-long lead times, wide-scale shortages of critical basic materials, rising commodities prices and difficulties in transporting products are continuing to affect all segments of the manufacturing economy,” Fiore said.All ExpandFor the first time since 2014, all 18 manufacturing industries reported growth. Among those with the largest expansions in April were electrical equipment and appliances, textiles, furniture and machinery.ISM’s measure of production softened to a three-month low of 62.5, held back by such capacity constraints. Semiconductor chip shortages have been stifling production at automotive plants.Meantime, the group’s gauge of prices paid for materials jumped to the highest since July 2008, underscoring shortages of inputs.A measure of factory stockpiles contracted at the fastest pace since August, while an index of customer inventories dropped to a fresh record low.Companies in Europe also reported higher costs for materials such as chemicals, metals and plastics and ran down their inventories to cope, according to IHS Markit data issued Monday.Select ISM Industry Comments“In 35 years of purchasing, I’ve never seen everything like these extended lead times and rising prices — from colors, film, corrugate to resins, they’re all up.” - Plastics & Rubber“The current electronics/semiconductor shortage is having tremendous impacts on lead times and pricing.” - Computer & Electronic Products“Demand is outpacing supply and will continue into the third quarter, when the supply chain is expected to be refilled.” - Chemical Products“Continued strong sales; however, we have had to trim some production due to the global chip shortage.” - Transportation Equipment“Steel prices are crazy high.” - Fabricated Metals“It’s getting much more difficult to supply production with materials that are made with copper or steel. Lots of work on the floor, but I am worried about getting the materials to support.” - Electrical Equipment & AppliancesThe ISM new orders and employment measures also eased to 64.3 and 55.1 respectively. Ahead of the government’s monthly employment report on Friday, economists are projecting the biggest monthly gain in manufacturing payrolls since June. Economists expect overall employment to rise by 980,000.Other manufacturing surveys highlight the underlying strength of the sector. Most regional Federal Reserve factory surveys improved in April, while IHS Markit’s manufacturing index also advanced from a month earlier.Looking ahead, a broader reopening of the economy and robust capital investment should support demand. Rebuilding depressed inventories will provide an additional tailwind to the sector.(Adds ISM comment)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. Howell date : 210503 08h46m01s Business Reuters 210503 08h41m Canada's Wealthsimple hits $4 bln valuation after latest funding round Wealthsimple said on Monday it raised C$750 million ($610.40 million) in its latest funding round, with participation from celebrities Drake, Michael Fox and Ryan Reynolds, more than doubling the Canadian fintech company's valuation to C$5 billion ($4.07 billion). The Toronto-based company that has helped make financial products like stock trading, peer-to-peer money transfers and tax filing easily accessible, said it will use the amount raised to further expand its market position, build out its product suite, and grow its team. The latest funding round, led by venture capital firms Meritech and Greylock, also includes investments from iNovia, Sagard, TSV and Redpoint. World Bloomberg 210503 08h40m Pandemic Offers Africa a Chance to Boost Sukuk Sales (Bloomberg) -- The financing required to rebuild economies in African nations following the coronavirus pandemic gives the continent an opportunity to boost its share of Islamic financing.Sub-Saharan Africa Islamic finance assets are forecast to grow as much as 25% this year to return to the pre-pandemic level as governments reopen their economies, said Faizal Bhana, the director for the Middle East, Africa and India at Jersey Finance. Sharia-compliant assets in the region declined 23.5% in 2020, according to a report by The Banker.African nations will struggle to raise financing as they emerge from the pandemic, Bhana said in an interview. “Sukuk will become another way for governments to go out to international markets, and raise it there.”South Africa’s Treasury plans to sell a domestic rand-denominated sukuk in current fiscal year which ends in February, while Nigeria is considering Shariah-compliant debt to help finance projects in 2021. Nigeria’s Debt Management Office has already issued three sovereign sukuks, and South Africa sold its maiden Islamic bond in 2014.In Egypt, the cabinet approved a draft sovereign sukuk law in November, while Kenya has put in place a regulatory framework to govern its Islamic-finance industry ahead of a long-awaited sale of its maiden sovereign sukuk.Secondary MarketThe convenience brought about by technology and similarities in some features of Shariah-compliant products and environmental, social and governance principles is expected to boost uptake of Islamic-finance products, Bhana said. Governments should also encourage a secondary market to create liquidity and provide access to a wider range of investors, he said.African government should also move toward treating Islamic-finance products the same as conventional finance, Bhana said.Islamic finance is relatively undeveloped in Africa, where a report by Islamic Finance Advisory & Assurance Services estimates its share of total assets around 1%. That’s even as almost one third of the continent’s population is Muslim. Global sukuk issuance increased by more than half to $93.43 billion over three years through 2018, while conventional bond issuance declined during the period, according to the report.(Corrects to change attribution of report in second 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. Business Bloomberg 210503 08h37m U.S. Factory Growth Settles Back as Supply Chain Snags Linger (Bloomberg) -- Growth at U.S. manufacturers cooled in April as ongoing supply chain issues and materials shortages limited production efforts and enlarged backlogs.A gauge of factory activity fell to 60.7 from a more than 37-year high of 64.7 a month earlier, according to data from the Institute for Supply Management released Monday. Readings above 50 indicate expansion, and the figure trailed all estimates in a Bloomberg survey of economists.Persistent supply challenges are restraining otherwise robust momentum in manufacturing output, leading to record backlogs and driving materials prices higher. Factories and their customers have whittled down inventories to meet sturdy demand, the ISM figures showed.Purchasing managers “reported that their companies and suppliers continue to struggle to meet increasing rates of demand due to coronavirus impacts limiting availability of parts and materials,” Timothy Fiore, chair of the ISM’s manufacturing business survey committee, said in a statement.“Recent record-long lead times, wide-scale shortages of critical basic materials, rising commodities prices and difficulties in transporting products are continuing to affect all segments of the manufacturing economy,” Fiore said.All ExpandFor the first time since 2014, all 18 manufacturing industries reported growth. Among those with the largest expansions in April were electrical equipment and appliances, textiles, furniture and machinery.ISM’s measure of production softened to a three-month low of 62.5, held back by such capacity constraints. Semiconductor chip shortages have been stifling production at automotive plants.Meantime, the group’s gauge of prices paid for materials jumped to the highest since July 2008, underscoring shortages of inputs.A measure of factory stockpiles contracted at the fastest pace since August, while an index of customer inventories dropped to a fresh record low.Select ISM Industry Comments“In 35 years of purchasing, I’ve never seen everything like these extended lead times and rising prices — from colors, film, corrugate to resins, they’re all up.” - Plastics & Rubber“The current electronics/semiconductor shortage is having tremendous impacts on lead times and pricing.” - Computer & Electronic Products“Demand is outpacing supply and will continue into the third quarter, when the supply chain is expected to be refilled.” - Chemical Products“Continued strong sales; however, we have had to trim some production due to the global chip shortage.” - Transportation Equipment“Steel prices are crazy high.” - Fabricated Metals“It’s getting much more difficult to supply production with materials that are made with copper or steel. Lots of work on the floor, but I am worried about getting the materials to support.” - Electrical Equipment & AppliancesThe ISM new orders and employment measures also eased to 64.3 and 55.1 respectively. Ahead of the government’s monthly employment report on Friday, economists are projecting the biggest monthly gain in manufacturing payrolls since June. Economists expect overall employment to rise by 980,000.Other manufacturing surveys highlight the underlying strength of the sector. Most regional Federal Reserve factory surveys improved in April, while IHS Markit’s manufacturing index also advanced from a month earlier.Looking ahead, a broader reopening of the economy and robust capital investment should support demand. Rebuilding depressed inventories will provide an additional tailwind to the sector.(Adds graphic)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. Business Reuters 210503 08h35m U.S. construction spending rebounds less than expected in March U.S. construction spending rebounded far less than expected in March as strength in housing was offset by continued weakness in outlays on nonresidential structures and public projects. The Commerce Department said on Monday that construction spending gained 0.2% after falling 0.6% in February. Economists polled by Reuters had forecast construction spending surging 1.9%. World Bloomberg 210503 08h29m Colombian Peso Plunges on Reports of Finance Minister Resigning (Bloomberg) -- Colombia’s peso fell the most among major currencies as local media reported Finance Minister Alberto Carrasquilla is about to step down after bloody street protests led the government to shelf his plan to raise taxes.Carrasquilla and his deputy Juan Alberto Londono will hand in their resignation this morning, Blu Radio reported, without saying how it obtained the information. La Republica daily said the whole economic team who worked on the tax bill will also quit.While declining to comment on the reports, Interior Minister Daniel Palacios told Blu Radio that the government will seek to reach consensus with political parties to present a new tax bill to congress. The finance ministry confirmed President Ivan Duque and Carrasquilla were meeting this morning.President Duque on Sunday said the government is giving up on some of the most unpopular ideas, such as extending the value-added tax to additional goods and services and making more people subject to income tax. He called on lawmakers to urgently reach consensus around a new proposal to help the country climb out of a worsening fiscal hole.The tax bill was intended to raise revenue to defend Colombia’s investment-grade credit rating and address a surge in poverty caused by the pandemic by funding social programs and providing cash transfers for its neediest citizens.Local markets sold off on the reports, with the Colombian peso plunging 1.9% to 3,816.15 per dollar, the worst performer among all major currencies tracked by Bloomberg. Dollar-denominated bonds also took a hit, leading the nation’s average spread to widen 16 basis points, the most in almost a year, according to JPMorgan indexes. The country’s five-year credit default swap jumped to the highest in a month.Another BlowThe decision to abandon the bill less than three weeks after it was introduced is another blow for Duque and undermines chances he’ll be able to pass other reforms before his term expires next year, said Sergio Guzman, director of Colombia Risk Analysis. The government was already under pressure from days of street protests that have left at least six people dead.“The government overplayed its hand with the reform, lost, and now is left in a really bad position facing the electorate,” Guzman said. “It effectively makes Duque a lame duck.”Colombia is among the first major emerging markets to attempt to implement large tax increases to bring its ballooning debt burden back under control. Other countries in the region may face similar difficulties trying to boost revenue in economies that are still being ravaged by the pandemic, and nowhere near having recovered from last year’s slump.Many Latin American nations are also grappling with deficits that expanded during the pandemic, but unlike Brazil, Mexico, Chile and Peru, Colombia’s deficit will widen rather than narrow this year, according to forecasts from the International Monetary Fund.Street ProtestsIn an address to the nation on Sunday, Duque called for congress to quickly put together a new plan “and thus avoid financial uncertainty.”“The reform is not a whim. The reform is a must,” he said.A new bill should maintain measures that protect Colombia’s most vulnerable while raising taxes on the rich, Duque said. He vowed that no one will pay income tax that doesn’t already pay it.Duque also called for a host of temporary taxes, including on corporations, the wealthy and dividends. He added that people with higher incomes should pay more and that the government needs to deepen austerity measures.Investors have sold off Colombian assets since the bill’s introduction in mid-April as they increasingly price in the likelihood that the nation will lose investment-grade status. Both Fitch Ratings and S&P Global Ratings rate the country one notch above junk.“We are waiting to see the new plan on fiscal consolidation strategy going forward,” Fitch analyst Richard Francis said. “We always knew any reform was going to be difficult and wanted to see the final Congressional outcome.”Markets are expected to remain volatile in the short term, with the bond yield curve steepening and the peso continuing to depreciate, at least until investors see the new tax proposal, Scotiabank Colpatria analysts wrote in a note Sunday.The decision to drop the tax plan shows the weakness of the Duque government and its inability to gain consensus in the legislature, said Camilo Perez, head analyst at Banco de Bogota.“Markets had already been pricing in Colombia’s loss of investment grade, but today’s news confirms that scenario,” Perez said.(Updates with peso move in first, fifth 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. World Reuters 210503 08h20m UPDATE 1-Saudi Arabia could ease fiscal adjustment to help recovery, IMF says Saudi Arabia's plans to balance its finances are making good progress but a slower pace of adjustment could be considered this year to support the recovery from the coronavirus crisis, the International Monetary Fund said on Monday. Saudi Arabia's economy, the largest in the Arab world, is expected to grow 2.1% in 2021 after shrinking 4.1% last year amid the twin shock of the pandemic and lower oil prices, the IMF said in a report. Howell date : 210503 08h44m48s Howell date : 210503 08h14m22s Business Bloomberg 210503 08h07m Credit Suisse Gave Archegos Leverage for Collateral (Bloomberg) -- Credit Suisse Group AG’s business with Archegos Capital Management enabled the family office to undertake highly-leveraged stock bets with only minimal collateral posted, a strategy that exposed the lender to losses far exceeding its peers when the firm collapsed.Credit Suisse lent the family office of Bill Hwang funds allowing bets with leverage of up to ten times, and only asked for collateral worth 10% of the sums borrowed, according to a person familiar with the business.The leverage offered by the Swiss bank was in some cases double what other brokers gave Hwang, helping to push the loss to some $5.5 billion after the fund imploded in March. That compares with a $2.9 billion hit to Nomura Holdings Inc and lesser sums or no loss at all for lenders including Deutsche Bank AG that offered Hwang prime brokerage services.Credit Suisse declined to comment. The figures were first reported by Risk.net.Read More: Credit Suisse’s New Chairman Signals Possible Shakeup After WoesIn response, Chief Executive Officer Thomas Gottstein has said the bank is reviewing its prime brokerage unit and will focus its business on clients who have relationships with other parts of the firm. Hwang was not a client of the private bank and business with Archegos only led to $17.5 million in revenues last year, the Financial Times reported, citing unidentified people with knowledge of the matter.Read more: Credit Suisse to Cut Hedge Fund Lending by Third After ArchegosCredit Suisse has begun to trim back the number of clients it serves as prime broker and plans to cut lending to hedge funds in that unit by some $35 billion, or a third of its outstanding loans to prime clients.(Removes reference to JPMorgan offering Hwang services 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. Business Bloomberg 210503 08h07m Stocks Advance in Busy Week for Economic Reports: Markets Wrap (Bloomberg) -- Stocks advanced in a busy week for economic data, with inflation remaining at the forefront of the investment debate.Most major groups in the S&P 500 rose, led by commodity and industrial shares. The Nasdaq 100 underperformed as Tesla Inc. dropped. Moderna Inc. rallied after agreeing to provide as many as 500 million doses of its Covid-19 shot to the vaccination program known as Covax. Berkshire Hathaway Inc. gained as Warren Buffett said Greg Abel, vice chairman of non-insurance businesses, would be his likely successor. Estee Lauder Cos. sank as the cosmetics giant’s sales missed estimates.Growth at U.S. manufacturers cooled in April as ongoing supply chain issues and materials shortages limited production efforts and enlarged backlogs. A gauge of factory activity fell to 60.7 from a more than 37-year high of 64.7 a month earlier, according to data from the Institute for Supply Management released Monday. Meantime, the group’s gauge of prices paid for materials jumped to the highest since July 2008, underscoring shortages of inputs.As the economy rebounds, there’s more inflation “than people would have anticipated six months ago,” according to Buffett. Meanwhile, Treasury Secretary Janet Yellen said that President Joe Biden’s economic plan is unlikely to create price pressures. Federal Reserve Chairman Jerome Powell speaks at 2:20 p.m. Washington time.“The markets continue to run hot with all the fiscal and monetary stimulus abound,” said Jeff Carbone, managing partner for Cornerstone Wealth. “Watch for the signs that inflation continues to rise and costs of goods rise, while keeping a keen eye on the data where growth or earnings start to decline.”Ignoring the adage “sell in May and go away” may reward stock investors in 2021, according to LPL Financial. The firm cited the S&P 500’s track record during the past decade in a blog post. In eight of those years, the gauge posted gains for the six months ended in October. Last year’s rally was 12%, the biggest since 2009, when a bull market was just getting started. The benchmark produced an average advance of 3.8% for all 10 years, beating a 1.7% average since 1950.Here are some key events to watch this week:U.S. trade balance, factory orders, durable goods are due TuesdayThe Reserve Bank of Australia monetary policy decision is scheduled for TuesdayChicago Fed President Charles Evans gives a virtual speech at an event hosted by Bard College on Wednesday. Cleveland Fed President Loretta Mester gives a virtual speech to the Boston Economic ClubBank of England rate decision ThursdayThe April U.S. employment report is released on FridayThese are some of the main moves in markets:StocksThe S&P 500 rose 0.5% at 10:05 a.m. New York time.The Stoxx Europe 600 Index rose 0.5%.The MSCI All-Country World Index was little changed.CurrenciesThe Bloomberg Dollar Spot Index declined 0.2%.The euro rose 0.3% to $1.2052.The Japanese yen strengthened 0.1% to 109.20 per dollar.BondsThe yield on 10-year Treasuries declined one basis point to 1.62%.Germany’s 10-year yield dipped less than one basis point to -0.20%.CommoditiesWest Texas Intermediate crude gained 0.4% to $63.81 a barrel.Gold gained 1.2% to $1,788.70 an ounce.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. Business Reuters 210503 08h02m U.S. manufacturing sector slows in April amid supply challenges The Institute for Supply Management (ISM) said on Monday its index of national factory activity fell to a reading of 60.7 last month after surging to 64.7 in March, which was the highest level since December 1983. A reading above 50 indicates expansion in manufacturing, which accounts for 11.9% of the U.S. economy. The White House's massive $1.9 trillion pandemic relief package and the expansion of the COVID-19 vaccination program to all adult Americans has led to a boom in demand. Business Yahoo Finance Video 210503 08h00m Stock market outlook: 'the whole market is invited to the party, expect decent things ahead' Yahoo Finance’s Brian Sozzi, Myles Udland, and Julie Hyman discuss today’s market action and outlook with Christopher Grisanti, MAI Capital Chief Equity Strategist. Business Bloomberg 210503 08h00m Wealthsimple Raises Money at $4 Billion Value; Drake Buys In (Bloomberg) -- Power Corp. of Canada’s Wealthsimple online brokerage raised C$750 million ($610 million) in a funding round that valued it about $4 billion, more than triple what it was worth in October.The round was led by existing investors Meritech Capital Partners and Greylock Partners, the Toronto-based company said Monday. Also participating are Canadian celebrities including rapper Drake, actors Ryan Reynolds and Michael J. Fox and basketball player Kelly Olynyk.Wealthsimple, which has more than 2 million users, is benefiting from surging valuations for tech companies and an increase in online trading that has fueled rivals like Robinhood Markets Inc. Wealthsimple offers commission-free stock trading as well as automated investing, cryptocurrency trading and tax services.Chief Executive Officer Michael Katchen said last year the company is building out cash, checking, insurance and mortgage products to try to become users’ primary financial institution.The financing announcement confirmed a Bloomberg report on April 30 that the company was in talks to raise money at a valuation of at least C$4.3 billion. Wealthsimple raised C$114 million at a C$1.5 billion post-money valuation in October, giving it unicorn status.The latest funding round consisted of a C$250 million primary offering by Wealthsimple and a C$500 million secondary offering by Power Corp. and its subsidiaries. Power Corp., the Canadian financial conglomerate controlled by the Desmarais family, will hold 43% of Wealthsimple after the financing, including the portions owned by Power-controlled IGM Financial Inc. and Great-West Lifeco Inc.Power Corp. shares climbed 1.7% to C$36.39 at 9:40 a.m. in Toronto, while IGM advanced 2.8% to C$45.09 and Great-West rose 0.5% to C$35.83.(Updates with share moves 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. Business Bloomberg 210503 07h55m America’s Biggest Meat Company Gives Faux Burgers Another Shot (Bloomberg) -- There’s no other way to put it: Tyson Foods Inc.’s first attempt at an alt-meat burger was a flop.Two years ago, the biggest U.S. meat company marketed a mix of real beef and pea protein to consumers with a “flexible diet.” But the half-vegan, half-not patty proved a tough sell. Tyson eventually discontinued it, saying only that it “constantly evaluates products.”Now it’s back and trying again. On Monday, the maker of Jimmy Dean sausages unveiled a lineup of 100% vegan meat products including fresh patties, ground “beef,” fake bratwurst and Italian sausage. It’s the company’s most ambitious bet on alternative proteins, and builds on recent moves by other meat giants, including JBS SA and Marfrig, to cash in on the rapidly growing market.Tyson—and the rest of the conventional meat industry—face an uphill battle. The alt-meat business is a crowded space with the likes of Beyond Meat and Impossible Foods dominating the market. Big Meat’s critics have been harsh. Michele Simon, the founder and former executive director of the Plant Based Foods Association, called Tyson “completely clueless.” Thomas George, president of an investment research company that focuses on millennials, said the meat industry is behind because it inherently doesn’t understand why consumers are turning to imitations.“You’ll see them try, but they mostly fall flat on their faces,” George said of the meat companies’ past attempts.Tyson is out to prove its detractors wrong. And for its part, the company acknowledges it’s early days.“There’s so much opportunity still left,” David Ervin, vice president of alternative protein at Tyson, said in an interview. “We’ve seen unbelievable growth in this market, but know that we’ve only scratched the surface.”Since the World Health Organization declared Covid-19 a pandemic in March 2020, Tyson’s share price had risen about 32% through Friday, trailing the 59% rise of significantly smaller rival Beyond Meat. Tyson rose as much as 1.3% Monday as of 9:51 a.m. on the news of its new launch as Beyond tumbled as much as 3.6%.For the meat giants of the world, winning the alt-meat race isn’t just an opportunity. It’s increasingly a fight for survival. Consumers want protein, but they’re also concerned about their health and the environment, and plant-based meat is seen as an answer to both. The market is forecast to grow to $450 billion and make up a quarter of the $1.8 trillion meat market by 2040, according to consulting firm Kearney, which also sees animal protein peaking in 2025.The proliferation of veggie burgers from small, nimble competitors are proof of this shift. Vegan meats from Beyond and Impossible are now sold everywhere from Burger King to Target. In February, Beyond announced a three-year deal with McDonald’s—one of Tyson’s biggest customers—as the preferred supplier of its new McPlant burger.These successes haven’t gone unnoticed in the halls of Tyson’s headquarters in Springdale, Arkansas. Along with the products announced Monday, the company has been quietly building out infrastructure globally to design, produce and distribute fake meat products. Tyson has already started selling into European markets and will expand into Asia in the coming months with product launches planned in Malaysia, Thailand, Singapore and Australia.Meanwhile JBS, the biggest meatpacker in the world, is considering a spinoff solely focused on plant-based meat. Marfrig Global Foods, another behemoth based in Brazil, is also reshuffling executives and drafting new strategies in the space that includes a partnership with crop trader Archer-Daniels-Midland.Tyson’s Ervin said that 17% of all consumers will never reduce meat consumption, and on the other end are vegans and vegetarians, who make up around 8%. In the middle are the “plant-curious” who are willing to try it. Those people generally skew younger, and that’s whom Tyson is targeting. While Ervin couldn’t disclose the growth of its current plant-based portfolio, he said the company was pleased with it.“We’re trying to get to a product that tastes like meat. From a meat company, who knows meat so well, our standards are pretty high,” he said.The meat companies say they’re bringing scale, investment and decades of food business know-how to the arena. Tyson’s Hillshire Farms, Jimmy Dean and Ball Park brands are mainstays in American kitchens, and the company wants to do the same for its plant-based Raised & Rooted label.“In the U.S., Beyond Meat and Impossible Foods started the race in the front,” Gilberto Tomazoni, chief executive officer at JBS, said in an interview. “But this is the beginning of a long-term race.”Incumbents, bolstered by their head start, aren’t feeling threatened.“We haven’t really seen in the marketplace any brands owned by Hormel or Tyson get much traction,” said Dennis Woodside, President of Impossible Foods, who estimated Beyond and Impossible have over 80% of the core fresh fake ground beef category. “All the other players are falling by the wayside.”The real competitor, in their view, is traditional meat, which is still cheaper, and the two companies have been slashing prices lately in an attempt to narrow the gap.Hormel told Bloomberg its products are catching on in the “spaces we choose to focus on,” like plant-based pepperoni.A key to Beyond and Impossible’s success has come from demonizing beef production, which is a potent emitter of greenhouse gases. Critics say that as long as industrial meat companies keep animals as their primary moneymakers, vegan products aren’t offsetting but rather increasing the carbon footprint. Others firmly on the plant-based side are welcoming the entrants. Kory Zelickson, Chief Executive Officer of Vejii, an online marketplace for vegan products in Canada and the U.S., called it proof that the plant-based industry is making an impact on commercial animal agriculture.“Some ethical vegans may not want to buy from a company that also produces meat, but I think it's important for people to see the bigger picture,” he said.Earlier: Beyond Meat Telling Customers Faux Chicken Is Coming This SummerTyson learned its lesson on mixing animal and plant ingredients. In addition to terminating the pea-beef burger, the company also took egg whites out of its plant-based chicken nuggets. Testing showed consumers liked them better without the eggs, and now the company’s pushing its products to be all plants, Ervin said.“We have retrenched on an all-plant portfolio going forward,” he said.There was outside pressure, too. The company tangled with the Animal Defense Legal Fund and the Plant Based Foods Association, who threatened litigation over the company’s use of the word “plant-based” to refer to the egg-containing nuggets, according to correspondence obtained by Bloomberg. Tyson attorneys called the group’s definition of plant-based “self-defined and self-serving”—and then said it had already removed them from the products anyway.Some analysts say it doesn’t matter that meat companies aren’t at the front of the race. They generally have enough scale to try out products that may not last. Beyond Meat may have been multiplying its share price since it went public two years ago, but its market capitalization is still a fraction of the likes of Tyson and JBS.“There’s a lot of trial and error,” said Christine McCracken, senior animal protein analyst at Rabobank. “In an effort to get to market quickly, maybe not all products will work.” (Adds shares trading)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. Business Reuters 210503 07h48m UPDATE 1-U.S. Supreme Court refuses to revive Wells Fargo accounts scandal suit The U.S. Supreme Court on Monday rebuffed a bid by current and former employees of Wells Fargo & Co to revive a lawsuit over losses to their retirement plan following a scandal over fake accounts that rattled the bank in 2016 and led to billions of dollars in fines and penalties. The justices declined to hear an appeal by the employees of a lower court ruling that threw out their proposed class action case against San Francisco-based Wells Fargo under a federal law requiring careful management of private-sector retirement plans. The case centered on the fallout from revelations, beginning in 2016, that Wells Fargo employees opened millions of unauthorized customer accounts after pressure by the bank to meet unrealistic sales goals. Howell date : 210503 07h43m56s Business Bloomberg 210503 07h36m Estee Lauder Sales Fall Short Despite Hint of Travel Rebound (Bloomberg) -- Estee Lauder Cos. reported quarterly sales that came in short of analysts’ estimates despite early signs of travel bouncing back.Sales rose in every region but didn’t meet expectations, with demand for makeup still stifled as customers don’t see many occasions to wear cosmetics like lipstick. Global net sales for the fiscal third quarter ended March 31 rose 16% to $3.86 billion, or 13% excluding currency fluctuations, the company said Monday in a statement.Resurgences in Covid-19 cases also caused temporary shutdowns of stores in important markets including the U.K., Japan, Canada, France and Brazil. Consumer traffic to stores remains down globally compared to pre-pandemic levels, the company said.Net sales for makeup declined across nearly all of Estee Lauder’s brands. Products like foundation and lip gloss have been particularly hurt by the pandemic, with workers yet to fully return to offices during the day and nightlife still muted in many countries around the world. The only region that saw growth in makeup last quarter was Asia.The shares fell as much as 4.6% in New York trading Monday. They had climbed 18% this year through April 30.Skin CareSkin care continues to perform well. In February, Estee Lauder company agreed to increase its stake in Deciem, owner of the Ordinary cosmetics brand, for about $1 billion, and plans to buy the remaining interest in three years. The transaction is expected to be completed in May.The cosmetics giant said signs of a travel recovery were apparent, with shoppers returning to stores in transit hubs as tourism starts to inch back after grinding to a near total halt amid travel restrictions and shutdowns. Estee Lauder’s global travel retail business for the quarter grew year-over-year despite a lack of international travelers. That includes stores in places like airports and train stations.“We expect the momentum in our sales growth to build in the fourth quarter of fiscal 2021, not only from easing comparisons but also fundamental strength, as we drive recovery,” said Chief Executive Officer Fabrizio Freda.The company expects reported net sales to climb as much as 12% this fiscal year, or as much as 10% excluding currency impacts.(Updates with chart, other details throughout)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. World Bloomberg 210503 07h33m EU Looks to Open Borders After a Year of Pandemic Isolation (Bloomberg) -- The European Union aims to take a significant step toward a return to normalcy with plans to reopen its borders after months of pandemic-induced restrictions.Just in time for the sumer travel season, Spanish, Italian and Greek beaches along with cities like Paris, Rome and Berlin would be able to welcome travelers who have been fully inoculated against Covid-19, under a proposal by the European Commission.It’s “time to revive the EU tourism industry and for cross-border friendships to rekindle -- safely,” Commission President Ursula von der Leyen said on Twitter.While still battling a third wave, Europe is showing signs of gaining control of the disease, which has infected more than 30 million in the region. Lockdowns in several countries are being loosened as contagion rates ebb and inoculations ramp up.The EU’s executive arm recommended welcoming visitors from countries with relatively low infection rates as well as those who are fully vaccinated, according to a statement Monday. The proposals require approval from a weighted majority of the bloc’s 27 member states and could be adopted as soon as the end of May, according to a commission official.The new parameters would replace a blanket ban for non-essential travel to the EU for residents of all but a handful of countries. The rules have been in place for more than a year and represented a bitter blow for a region that prides itself on open borders.Under the proposal, member states would be obliged to accept proof for all shots approved in the EU -- including those produced by Pfizer Inc.-BioNTech SE, AstraZeneca Plc, Moderna Inc. and Johnson & Johnson.National governments will have the discretion to accept shots that have cleared the World Health Organization emergency use listing process, but they can’t recognize other vaccines on their own. This means people inoculated with Russia’s Sputnik or the Sinopharm and Sinovac shots from China will not be allowed to travel freely to the EU solely based of their immunization status.The new rules include a so-called emergency brake, which would allow member states to restore travel bans on countries where risky new variants emerge or contagion rates spike. In such an event, only essential workers, such as diplomats and health-care staff, would be allowed entry from those countries, and even then, they would be subject to strict testing and quarantine requirements.Faced with a sector crippled by the pandemic, tourism ministers from Group of 20 nations are expected to approve guidelines on issues including safe mobility when they hold a virtual summit on Tuesday. The G-20 -- the forum that brings together the world’s major economies -- is expected to support measures for so-called vaccine passports, including the EU’s Green Digital Certificate.The next step in the EU’s approval process will happen on Wednesday when member-state representatives convene in Brussels to discuss the proposal.A commission official told reporters in Brussels that Israel will definitely be on the list of countries whose vaccinated residents are allowed to travel to the EU. Reciprocity will also be considered as a factor for easing leisure travel, the official added when asked about U.K. residents.The commission will draw up a list of approved vaccination certificates issued by non-EU countries. Discussions with Washington will hopefully lead to the introduction of a uniform certificate that meets the EU’s security and accuracy standards, the commission official said.(Updates with details about EU and G-20 meetings)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. Business Yahoo Finance 210503 07h33m Stock market news live updates: Stocks advance, Dow gains 200 points, or 0.6% Stock futures pointed to a sharply higher open Monday morning, with the three major indexes looking to kick off May on a high note. Business Bloomberg 210503 07h31m Stocks Advance in Busy Week for Economic Reports: Markets Wrap (Bloomberg) -- Stocks advanced in a busy week for economic data, with inflation remaining at the forefront of the investment debate.Most major groups in the S&P 500 rose, led by commodity, financial and industrial shares. Moderna Inc. rallied after agreeing to provide as many as 500 million doses of its Covid-19 shot to the program known as Covax in a boost for the global vaccination effort. Berkshire Hathaway Inc. gained as Warren Buffett said that Greg Abel, the firm’s vice chairman of non-insurance businesses, would be his likely successor. Estee Lauder Cos. fell after the cosmetics giant’s sales missed estimates.Results are in from more than half of the companies in the S&P 500 and almost 90% have beaten earnings projections -- on track for the best reading since Bloomberg began compiling the data in 1993. As economic growth roars back, there’s more inflation “than people would have anticipated six months ago,” according to Buffett. Meanwhile, Treasury Secretary Janet Yellen said that President Joe Biden’s economic plan is unlikely to create price pressures.Traders will be watching the latest figures on U.S. manufacturing and construction spending on Monday. Federal Reserve Chairman Jerome Powell speaks at 2:20 p.m. Washington time. The April U.S. employment report is due Friday, and some economists predict employers added 1 million or more jobs, inching the labor market closer to its pre-pandemic levels.“The markets continue to run hot with all the fiscal and monetary stimulus abound,” said Jeff Carbone, managing partner for Cornerstone Wealth. “Watch for the signs that inflation continues to rise and costs of goods rise, while keeping a keen eye on the data where growth or earnings start to decline.”Ignoring the adage “sell in May and go away” may reward stock investors in 2021, according to LPL Financial. The firm cited the S&P 500’s track record during the past decade in a blog post. In eight of those years, the gauge posted gains for the six months ended in October. Last year’s rally was 12%, the biggest since 2009, when a bull market was just getting started. The benchmark produced an average advance of 3.8% for all 10 years, beating a 1.7% average since 1950.Here are some key events to watch this week:U.S. trade balance, factory orders, durable goods are due TuesdayThe Reserve Bank of Australia monetary policy decision is scheduled for TuesdayChicago Fed President Charles Evans gives a virtual speech at an event hosted by Bard College on Wednesday. Cleveland Fed President Loretta Mester gives a virtual speech to the Boston Economic ClubBank of England rate decision ThursdayThe April U.S. employment report is released on FridayThese are some of the main moves in markets:StocksThe S&P 500 rose 0.6% at 9:30 a.m. New York time.The Stoxx Europe 600 Index rose 0.5%.The MSCI All-Country World Index was little changed.CurrenciesThe Bloomberg Dollar Spot Index declined 0.2%.The euro rose 0.3% to $1.2052.The Japanese yen strengthened 0.1% to 109.20 per dollar.BondsThe yield on 10-year Treasuries declined one basis point to 1.62%.Germany’s 10-year yield dipped less than one basis point to -0.20%.CommoditiesWest Texas Intermediate crude gained 0.4% to $63.81 a barrel.Gold gained 1.2% to $1,788.70 an ounce.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. Business Yahoo Finance 210503 07h31m Epic Games v. Apple: Tech giant to defend App Store in ‘high stakes game of poker’ Apple is set to defend its lucrative App Store in a federal court in California on Monday, as a trial is scheduled to get underway to hear antitrust claims waged by Fortnite developer, Epic Games. The popular game was booted from Apple’s and Google’s app stores in January, and banned from their operating systems, after Epic Games circumvented the platforms by offering direct, in-game purchases at a 20% discount. World Reuters 210503 07h29m Aviation, travel groups urge fully reopening US-UK travel market In a letter to U.S. President Joe Biden and British Prime Minister Boris Johnson, the groups said the leaders' planned meeting in early June "would be an ideal opportunity for a joint announcement of the full reopening of the U.S.-UK air travel market for both U.S. and UK citizens." The United States has barred nearly all non-U.S. citizens who have recently been in the UK since March 2020 from the United States. Business Bloomberg 210503 07h26m Oil Reverses Losses as European Union Looks to Open Borders (Bloomberg) -- Oil futures ticked up as optimism over easing travel restrictions and the global economic recovery offset falling demand in India, the world’s third-biggest importer.Brent crude reversed losses in Asian trading and rose 0.2% to around $66.90 a barrel. A European Union plan to ease restrictions for vaccinated travelers over the Summer holiday season boosted sentiment.Oil has rallied 30% in 2021 as the rollout of Covid-19 vaccines allows some major economies to reopen. That’s enabled the Organization of Petroleum Exporting Countries and its allies to start easing the supply curbs they imposed last year to drain bloated global stockpiles.However, the recovery has been uneven, with some nations suffering from new waves of cases. Sales of gasoline in India were the lowest in April since August, while average daily diesel sales were the lowest since October, preliminary data from officials with direct knowledge of the matter show.“The biggest factor is still India and how much demand has been hit there,” said Howie Lee, an economist at Oversea-Chinese Banking Corp, adding that recoveries in China and the U.S. are already factored in. “Prices may continue to move in a range. Above $68 is when selling pressure starts to build.”Iraq’s oil minister, Ihsan Abdul Jabbar, said crude would probably remain around $65 in the coming months. OPEC, of which Iraq is the second-biggest producer, will continue trying to keep prices “within normal averages,” he told reporters in Baghdad on Monday. “There is no concern about a drop in prices.”Traders are tracking talks between the Iran and world powers including the U.S. over the revival of a nuclear accord. A deal would potentially lead to Washington easing sanctions on Iranian crude exports, though U.S. officials said a deal isn’t close yet. The Islamic Republic has presidential elections next month, which may complicate the talks.“The market is ready for it and has been pricing it in to a certain extent,” Mike Muller, Vitol Group’s head of Asia, said Sunday on a call hosted by consultant Gulf Intelligence. “It’s a question of when this agreement takes place -- is it this month or after the elections under the next Iranian administration?”Meanwhile, U.S. oil output may drop as domestic drilling fell for a second straight week. American explorers battered by last year’s crash in prices are showing unprecedented caution and the rig count is still at half pre-pandemic levels, despite prices having since recovered. Also, the Arctic blast that swept through the southern U.S. in February caused a much bigger loss in supply than previously estimated.Production constraints are helping to erode global stockpiles. “The market remains underpinned -- not buoyant, but underpinned -- by the fact that there is a stock draw,” said Muller. Inventories have been depleted at a slower rate than expected for the first four months of the year, he said.Brent’s prompt timespread was 45 cents a barrel in backwardation, a bullish pattern where near-term prices trade above those further out. That compares with 62 cents a week ago and 40 cents at the start of April.“The near-term futures price will be watched very closely for any signs of whether this backwardation can be maintained,” said Ole Hansen, head of commodities strategy at Saxo Bank A/S. “Clearly, that will be very much to do with India on the one hand, in terms of demand, and the increase in production from OPEC on the other.”Many countries around the world -- including China, Japan and the U.K. -- have national holidays on Monday, which may lower trading volumes.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. Howell date : 210502 22h45m02s Business Reuters 210502 22h14m China's Waterdrop aims to raise $360 mln in New York IPO Chinese online insurance technology firm Waterdrop Inc aims to raise up to $360 million in an initial public offering on the New York Stock Exchange, company filings show. Waterdrop, which is backed by Tencent, will sell 30 million American Depository shares for between $10 and $12 each, it said in the filings with the Securities and Exchange Commission (SEC). In April, Reuters reported that the China Banking and Insurance Regulatory Commission (CBIRC), had questioned the company's business risks, which has slowed the IPO process. Business Bloomberg 210502 21h55m Oil Trades Near $67 as India Demand Drop Curbs Recovery Optimism (Bloomberg) -- Oil was steady below $67 a barrel as weaker demand from virus-hit India partially offset optimism over the global economic recovery.Brent crude edged lower after most-active prices rose almost 6% last month. April sales of gasoline in India fell to the lowest since August, while those for diesel were the least since October when factoring in the length of the month, preliminary data from officials with direct knowledge of the matter show. Separately, the president of the Confederation of Indian Industry urged the government to curb economic activity to counter the growing health crisis.Oil has rallied in 2021 on prospects for a rebound in demand as Covid-19 vaccines are rolled out, paving the way for greater economic activity. However, the recovery has been uneven, with some nations suffering from resurgent waves of the virus. At the same time, the Organization of Petroleum Exporting Countries and its allies started this month to ease the supply curbs they imposed last year to drain bloated global stockpiles and revive prices.“The biggest factor is still India and how much demand has been hit there,” said Howie Lee, an economist at Oversea-Chinese Banking Corp, adding that recoveries in China and the U.S. are already factored in. “Prices may continue to move in a range. Above $68 is when selling pressure starts to build.”Traders are tracking efforts to broker a U.S.-Iranian deal to revive a nuclear accord abandoned by the White House in 2018, potentially paving the way for an increase in crude exports from the Persian Gulf nation. U.S. officials said a deal isn’t close, denying an Iranian report on an impending prisoner swap.Meanwhile, U.S. oil output may continue to struggle as drilling in the shale patch fell for a second straight week. U.S. explorers battered by last year’s crash are showing unprecedented austerity and the rig count is still at half pre-pandemic levels. Also, the Arctic blast that swept through the U.S. South in February caused a much bigger loss in supply than previously estimated.Brent’s prompt timespread was 46 cents a barrel in backwardation, a bullish pattern where near-term prices trade above those further out. That compares with 62 cents a week ago and 40 cents at the start of April.Many countries around the world -- including China, Japan and the U.K. -- are marking national holidays on Monday, which may thin out trading volumes.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. Business Business Business Bloomberg 210502 19h45m Ether Hits $3,000 as Bitcoin’s Crypto Dominance Declines (Bloomberg) -- Bitcoin’s domination of total cryptocurrency market value is declining, suggesting room for more than one winner among digital tokens as the sector evolves.The largest digital currency now accounts for about 46% of total crypto market value of $2.3 trillion, down from roughly 70% at the start of the year, according to tracker CoinGecko. Second-ranked Ether is up to 15% and a group of others outside the top few has doubled its share over the same period to 36%.Bitcoin remains the biggest cryptocurrency but the momentum in other tokens is drawing increasing interest, such as Ether, which breached $3,000 for the first time Monday after quadrupling this year. Crypto proponents argue investors are getting more comfortable with a variety of tokens, while critics contend the sector may be in the grip of a stimulus-fueled mania.“Ethereum is rising and not much seems to be in its way,” Edward Moya, a senior market analyst at Oanda Corp., wrote in a note Friday, adding that other tokens were also seeing “fresh interest.”The current distribution of market share also reflects an April shakeout in the cryptocurrency sector. Bitcoin has yet to recover all the ground it lost after tumbling from a mid-April record of almost $64,870.Last month’s listing of crypto exchange Coinbase Global Inc. in the U.S. is the latest sign of how more investors are embracing the sector despite risks from high levels of volatility and expanding regulatory scrutiny.Ether is currently occupying the limelight. An upgrade of the affiliated Ethereum blockchain as well as the network’s popularity for financial services and cryptocollectibles are among the factors cited for the rally.Evercore ISI strategist Rich Ross has set a target of $3,900 for the token.Other cryptocurrencies, often referred to as “altcoins,” have jumped too. The price of Binance Coin is up 3,490% over the past 12 months, according to CoinGecko. Dogecoin, a token started as a joke in 2013 but now a social-media favorite touted by the likes of Elon Musk, has surged 15,000% to a market value of around $50 billion.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. Business Bloomberg 210502 19h45m HNA Group Assets Attract Interest From Fosun, JD.com (Bloomberg) -- Fosun Group and an arm of JD.com Inc. are among suitors considering investing in domestic operations of HNA Group Co. as the indebted Chinese conglomerate is reorganized after being placed under government control, people with knowledge of the matter said.Ping An Insurance Group Co., Juneyao Airlines Co. and Air China Ltd. have also been studying HNA’s assets, the people said, asking not to be identified because the information is private. Any deal could raise billions of dollars, the people said.The once high-flying conglomerate plowed more than $40 billion into a raft of trophy assets around the world before being reined in by the government, which started taking control just over a year ago as the pandemic hit HNA’s remaining businesses.The company still owns airlines, airports and retail assets in China. Some bidders could team up for an investment, and the structure of any potential transaction hasn’t been finalized, the people said.Deliberations are ongoing, and there’s no certainty the potential investors will proceed with concrete offers, the people said. Representatives for Air China, HNA, Juneyao and Ping An Insurance declined to comment, while representatives for Fosun and JD didn’t immediately respond to requests for comment.Billionaire Guo Guangchang’s Fosun Group, founded in 1992, is a Chinese conglomerate with businesses spanning from pharmaceuticals and travel to retail and insurance. JD.com, one of China’s biggest e-commerce platforms, has expanded into health care and logistics. JD Logistics Inc. has won Hong Kong stock exchange approval for an initial public offering that could raise about $4 billion, Bloomberg News reported this week.Juneyao Air, a privately owned airline based in Shanghai, said Thursday that it plans to invest 5 billion yuan ($772 million) in a joint venture which will buy airline assets but it didn’t provide any details. Separately, Caixin reported that HNA Group’s airlines assets are the target, citing an unidentified person.Poster ChildAny disposal would come after HNA’s creditors earlier this year applied for the group to be reorganized.Founded as an airline in the 1990s by entrepreneur Chen Feng with seed money from George Soros, the company emerged from near obscurity to mount a buying binge that saw it become the top shareholder of Deutsche Bank AG and Hilton Worldwide Holdings Inc. It was once the poster child for a cabal of Chinese empire builders that borrowed rapidly to snap up trophy assets around the globe.The spree eventually took HNA’s debt load to about $86 billion by the end of 2017. It began shedding assets in early 2018 amid pressure from the government, which had started to crack down on the activities of its biggest offshore acquirers to rein in financial risk and damage to China’s reputation. In December, HNA agreed to sell Ingram Micro Inc. for about $7.2 billion, its largest asset sale so far.The Chinese government wants to return HNA to its roots as an airline and hence plans to dispose of HNA’s non-aviation assets through a trust, Bloomberg News reported in January. The conglomerate started looking for strategic investors for Shenzhen-listed CCOOP Group Co., which operates convenience stores, department stores, logistics parks and online financial services, according to a March announcement on HNA’s website. Its airport assets and airline business are also seeking strategic investors, separate statements on the website show. HNA Infrastructure Investment Group Co., which develops real estate projects including airport industrial parks, and Hong Kong-listed Hainan Meilan International Airport Co. are both owned by HNA.HNA’s airline business is among China’s largest carrier groups, with stakes in Hainan Airlines Holding Co., Air Changan, low-cost carrier Beijing Capital Airlines Co., and Suparna Airlines, also known as Yangtze River Airlines Co., according to HNA’s website. The group also holds a majority stake in jet lessor Avolon Holdings Ltd. through its Bohai Leasing Co. unit.Hainan Airlines reported a net loss of 2.6 billion yuan in the first quarter of 2021 after losing 64 billion yuan last year, according to its latest financial report.(Adds more details about HNA assets from 11th 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. Howell date : 210502 21h34m45s Business Bloomberg 210502 21h03m U.S. Futures Up, Asia Stocks Dip as Inflation Eyed: Markets Wrap (Bloomberg) -- U.S. futures climbed and most stocks in Asia dropped Monday, with investors assessing inflation risks as economic activity ramps up. The dollar held onto gains.Hong Kong fell, while Australia and South Korea fluctuated. Japan, China and the U.K. are among markets closed for holidays. U.S. futures rose after stocks dropped from a record Friday, amid data pointing to price pressures and talk of a possible pullback in central bank support. Still, the S&P 500 Index capped its biggest monthly rally since November.Australia’s 10-year government bond yield edged higher, after the Treasury benchmark held above 1.6%. Crude oil swung between gains and losses.Inflation remains a key concern for investors. The latest U.S. data show fiscal stimulus helped drive the strongest monthly gains in personal incomes in records going back to 1946, and the Federal Reserve’s preferred gauge of prices rose by the most since 2018. Though last year’s pandemic shock has skewed some data, such readings fuel speculation that central banks may start to withdraw support by trimming asset purchases.“Interest rates going forward will be led more by expectations on the tapering from the Fed rather than by inflation,” Raffaele Bertoni, head of debt capital markets at Gulf Investment Corp., said on Bloomberg Television.In his latest annual meeting, billionaire Warren Buffett warned of rising price pressures and a “buying frenzy” spurred by low interest rates. Dallas Fed President Robert Kaplan, who’s not currently a voter on the rate-setting committee, said signs of excessive risk-taking suggest it’s time to consider fewer bond purchases. His remarks contrast with those of Fed Chairman Jerome Powell.Top U.S. financial officials are downplaying inflation risks. Treasury Secretary Janet Yellen said on the weekend that the demand boost from President Biden’s economic plan would be spread over a decade.Elsewhere, India’s virus crisis is worsening, with daily deaths hitting another record on Sunday. Prime Minister Narendra Modi has come under fire for his handling of the Covid-19 crisis and his party lost a key state election.Here are some key events to watch this week:A slew of manufacturing PMIs are due Monday, including from U.S. and ChinaFed Chair Powell speaks in an event hosted by the National Community Reinvestment CoalitionThe Reserve Bank of Australia monetary policy decision is due TuesdayThe Treasury announces its quarterly refunding on WednesdayChicago Fed President Charles Evans gives a virtual speech on the U.S. economy at an event hosted by Bard College; Cleveland Fed’s Loretta Mester speaks to the Boston Economic Club on WednesdayBank of England rate decision ThursdayU.S. April employment report is released on FridayThese are some of the main moves in markets:StocksS&P 500 futures rose 0.3% as of 10:33 a.m. in Hong Kong. The S&P 500 fell 0.7% FridayAustralia’s S&P/ASX 200 Index rose 0.1%South Korea’s Kospi index gained 0.1%Hong Kong’s Hang Seng Index fell 1.3%Markets are also closed in Thailand and Vietnam Monday.CurrenciesThe yen was at 109.47 per dollar, down 0.2%The offshore yuan was at 6.4768 per dollarThe Bloomberg Dollar Spot Index was flat after climbing 0.7% FridayThe euro traded at $1.2022BondsTreasury futures dipped after the 10-year yield held around 1.63% Friday. The cash market is closed in Asia MondayAustralia’s 10-year bond yield was little changed at 1.76%CommoditiesWest Texas Intermediate crude fell 0.2% to $63.44 a barrel after sliding more than 2% FridayGold was at $1,772.76 an ounceFor 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. Business World Business Bloomberg 210502 19h34m Oil Trades Near $67 as India Demand Drop Curbs Recovery Optimism (Bloomberg) -- Oil rose toward $67 a barrel as weaker demand from virus-ravaged India partially offset optimism over the global economic recovery.Brent crude edged higher after most-active prices rose almost 6% last month. April sales of gasoline in India fell to the lowest since August, while those for diesel were the least since October when factoring in the length of the month, preliminary data from officials with direct knowledge of the matter show.Oil has rallied in 2021 on prospects for a rebound in demand as Covid-19 vaccines are rolled out, paving the way for greater economic activity. However, the recovery has been uneven, with some nations suffering from resurgent waves of the virus. At the same time, the Organization of Petroleum Exporting Countries and its allies started this month to ease the supply curbs they imposed last year to drain bloated global stockpiles and revive prices.“The biggest factor is still India and how much demand has been hit there,” said Howie Lee, an economist at Oversea-Chinese Banking Corp, adding that recoveries in China and the U.S. are already factored in. “Prices may continue to move in a range. Above $68 is when selling pressure starts to build.”Traders are tracking efforts to broker a U.S.-Iranian deal to revive a nuclear accord abandoned by the White House in 2018, potentially paving the way for an increase in crude exports from the Persian Gulf nation. U.S. officials said a deal isn’t close, denying an Iranian report on an impending prisoner swap.Meanwhile, U.S. oil output may continue to struggle as drilling in the shale patch fell for a second straight week. U.S. explorers battered by last year’s crash are showing unprecedented austerity and the rig count is still at half pre-pandemic levels. Also, the Arctic blast that swept through the U.S. South in February caused a much bigger loss in supply than previously estimated.Brent’s prompt timespread was 48 cents a barrel in backwardation, a bullish pattern where near-term prices trade above those further out. That compares with 62 cents a week ago and 40 cents at the start of April.Many countries around the world -- including China, Japan and the U.K. -- are marking national holidays on Monday, which may thin out trading volumes.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. Business Bloomberg 210502 19h34m HNA Group Assets Attract Interest From Fosun, JD.com (Bloomberg) -- Fosun Group and an arm of JD.com Inc. are among suitors considering investing in domestic operations of HNA Group Co. as the indebted Chinese conglomerate is reorganized after being placed under government control, people with knowledge of the matter said.Ping An Insurance Group Co., Juneyao Airlines Co. and Air China Ltd. have also been studying HNA’s assets, the people said, asking not to be identified because the information is private. Any deal could raise billions of dollars, the people said.The once high-flying conglomerate plowed more than $40 billion into a raft of trophy assets around the world before being reined in by the government, which started taking control just over a year ago as the pandemic hit HNA’s remaining businesses.The company still owns airlines, airports and retail assets in China. Some bidders could team up for an investment, and the structure of any potential transaction hasn’t been finalized, the people said.Deliberations are ongoing, and there’s no certainty the potential investors will proceed with concrete offers, the people said. Representatives for Air China, HNA, Juneyao and Ping An Insurance declined to comment, while representatives for Fosun and JD didn’t immediately respond to requests for comment.Billionaire Guo Guangchang’s Fosun Group, founded in 1992, is a Chinese conglomerate with businesses spanning from pharmaceuticals and travel to retail and insurance. JD.com, one of China’s biggest e-commerce platforms, has expanded into health care and logistics. JD Logistics Inc. has won Hong Kong stock exchange approval for an initial public offering that could raise about $4 billion, Bloomberg News reported this week.Juneyao Air, a privately owned airline based in Shanghai, said Thursday that it plans to invest 5 billion yuan ($772 million) in a joint venture which will buy airline assets but it didn’t provide any details. Separately, Caixin reported that HNA Group’s airlines assets are the target, citing an unidentified person.Poster ChildAny disposal would come after HNA’s creditors earlier this year applied for the group to be reorganized.Founded as an airline in the 1990s by entrepreneur Chen Feng with seed money from George Soros, the company emerged from near obscurity to mount a buying binge that saw it become the top shareholder of Deutsche Bank AG and Hilton Worldwide Holdings Inc. It was once the poster child for a cabal of Chinese empire builders that borrowed rapidly to snap up trophy assets around the globe.The spree eventually took HNA’s debt load to about $86 billion by the end of 2017. It began shedding assets in early 2018 amid pressure from the government, which had started to crack down on the activities of its biggest offshore acquirers to rein in financial risk and damage to China’s reputation. In December, HNA agreed to sell Ingram Micro Inc. for about $7.2 billion, its largest asset sale so far.The Chinese government wants to return HNA to its roots as an airline and hence plans to dispose of HNA’s non-aviation assets through a trust, Bloomberg News reported in January. The conglomerate started looking for strategic investors for Shenzhen-listed CCOOP Group Co., which operates convenience stores, department stores, logistics parks and online financial services, according to a March announcement on HNA’s website. Its airport assets and airline business are also seeking strategic investors, separate statements on the website show. HNA Infrastructure Investment Group Co., which develops real estate projects including airport industrial parks, and Hong Kong-listed Hainan Meilan International Airport Co. are both owned by HNA.HNA’s airline business is among China’s largest carrier groups, with stakes in Hainan Airlines Holding Co., Air Changan, low-cost carrier Beijing Capital Airlines Co., and Suparna Airlines, also known as Yangtze River Airlines Co., according to HNA’s website. The group also holds a majority stake in jet lessor Avolon Holdings Ltd. through its Bohai Leasing Co. unit.Hainan Airlines reported a net loss of 2.6 billion yuan in the first quarter of 2021 after losing 64 billion yuan last year, according to its latest financial report.(Adds more details about HNA assets from 11th 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. Business Reuters 210502 19h34m Ethereum breaks past $3,000 Cryptocurrency ether hit a record high of $3,017 on Monday, extending last week's rally in the wake of a report that the European Investment Bank (EIB) could launch a digital bond sale on the ethereum blockchain network. Ether is the digital currency or token that facilitates transactions on the ethereum blockchain and it is the second-largest cryptocurrency by market cap behind bitcoin. Bloomberg reported on Tuesday, citing unnamed sources, that the EIB plans to issue a two-year 100-million euro digital bond. Business Bloomberg 210502 19h34m Robinhood’s Core Business More Than Tripled in First Quarter (Bloomberg) -- Robinhood Market Inc.’s largest source of revenue more than tripled in the first quarter as the trading app became immensely popular with young investors amid the meme-stock frenzy.Revenue from “payment for order flow,” a system where market makers like Citadel Securities pay retail brokers including Robinhood for routing orders to them, reached about $331 million in the first quarter, up from $91 million a year ago, according to an analysis of a securities filing.Within the first quarter, revenue from payments for order flow peaked in February at about $121 million, before dropping 20% to $96.7 million in March. Much of the decline was due to reduced trading of non-S&P 500 stocks, the filing shows.The Menlo Park, California-based brokerage last year took in about $687 million from such payments, according to data from regulatory filings compiled by Bloomberg Intelligence.Robinhood’s co-founder and chief executive officer, Vlad Tenev, had testified that the practice is the company’s largest source of revenue. The arrangement is commonplace and disclosed in the brokerage industry, but has been controversial as it may give brokers an incentive to push their customers to trade more often.Robinhood Made Trading Easy, and Perhaps Even Too Hard to Resist The app popularized the zero-commission brokerage and introduced millions of millennials and Gen Zers to the market. Critics including U.S. lawmakers and a state securities regulator have said Robinhood makes investing real money feel too much like a game.In response to critics, Robinhood has said its platform doesn’t encourage excessive trading and fills a crucial role in financial markets by helping a young and diverse group of traders to invest.At Berkshire Hathaway’s annual meeting Saturday, Warren Buffett weighed in on the Robinhood phenomenon, saying the app has become a big part of the “casino aspect” of the stock market recently. He also said he looks forward to reading the S-1 filing of Robinhood, which has filed confidentially for an initial public offering.(Updates with details from the filing)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. Business Reuters 210502 19h34m Australia's Seven West Media finalises news content deals with Google, Facebook The signing of agreements comes after Seven West announced letters of intent in February with the tech companies to provide them news content even as the government pushed for a law that would force the internet giants to pay media companies for content. The Australian media firm expects digital revenue from the agreements to start before the end of fiscal 2021, with the majority of it coming in fiscal 2022, it said in a statement. Howell date : 210502 19h34m20s Business Reuters 210502 19h03m FOREX-Dollar holds gains as traders look to U.S. data for policy cues The dollar clung to a recent bounce on Monday as investors made a cautious start to a week crammed with central bank meetings and big-ticket U.S. economic data, looking for clues on the outlook for global inflation and for policymakers' response. "We expect the dollar to trend lower because of the improving global economic outlook," said Commonwealth Bank of Australia analyst Kim Mundy in an emailed note, with U.S. import demand also likely to support exporters' currencies. "Nevertheless," she said "the risk of short bouts of dollar strength remain if solid data push U.S. Treasury yields materially higher." Business Bloomberg 210502 18h45m U.S. Futures Rise; Asia Steady Amid Holidays: Markets Wrap (Bloomberg) -- Stocks in Asia started the week little changed with some major markets shut and inflation concerns resurfacing. U.S. futures edged higher.Benchmarks fluctuated in Australia and South Korea, and markets are closed in Japan and China for holidays. S&P 500 and Nasdaq 100 contracts climbed. U.S. stocks dropped from a record Friday, amid economic data showing potential inflation pressures and increased talk of a possible pullback in central bank support. Still, the S&P 500 Index capped its biggest monthly rally since November.Treasury yields held above 1.6% in U.S. hours. Crude oil crept up toward $64 a barrel.Inflation risks are back in focus, though some data are skewed by last year’s pandemic shock. Fiscal stimulus helped drive the strongest monthly gains in U.S. personal incomes in records back to 1946, and the Federal Reserve’s preferred pricing gauge rose by the most since 2018. Investors are also concerned that central banks may start tapering the asset purchase programs that have supported the recovery.“Interest rates going forward will be led more by expectations on the tapering from the Fed rather than by inflation,” Raffaele Bertoni, head of debt capital markets at Gulf Investment Corp., said on Bloomberg Television.In his latest annual meeting, billionaire Warren Buffett warned of rising price pressures and a “buying frenzy” spurred by low interest rates. Dallas Fed President Robert Kaplan, who’s not currently a voter on the rate-setting committee, said signs of excessive risk-taking suggest it’s time to start debating a reduction in bond purchases. His remarks contrast with those of Fed Chairman Jerome Powell.Top U.S. financial officials are also downplaying the risks of a surge in the cost of living. Treasury Secretary Janet Yellen said in a weekend interview that the demand boost from President Joe Biden’s economic plan will be spread over a decade. Elsewhere, India’s virus crisis is worsening, with daily deaths hitting another record on Sunday. Prime Minister Narendra Modi has come under fire for his handling of the Covid-19 crisis and his party is trailing in a key state election.Here are some key events to watch this week:A slew of manufacturing PMIs are due Monday, including from U.S. and ChinaFed Chair Powell speaks in an event hosted by the National Community Reinvestment CoalitionThe Reserve Bank of Australia monetary policy decision is due TuesdayThe Treasury announces its quarterly refunding on WednesdayChicago Fed President Charles Evans gives a virtual speech on the U.S. economy at an event hosted by Bard College; Cleveland Fed‘s Loretta Mester speaks to the Boston Economic Club on WednesdayBank of England rate decision ThursdayU.S. April employment report is released on FridayThese are some of the main moves in markets:StocksS&P 500 futures rose 0.3% as of 8:06 a.m. in Hong Kong. The S&P 500 fell 0.7% FridayAustralia’s S&P/ASX 200 Index was flatSouth Korea’s Kospi index was flat.Hong Kong’s Hang Seng Index futures fell 0.3% earlierCurrenciesThe yen was at 109.40 per dollarThe offshore yuan was at 6.4743 per dollarThe Bloomberg Dollar Spot Index was little changed after climbing 0.7% FridayThe euro traded at $1.2023BondsThe yield on 10-year Treasuries was little changed at 1.63%. Treasury futures are in the green. Cash Treasuries won’t trade in Asia MondayAustralia’s 10-year bond yield held at 1.75%CommoditiesWest Texas Intermediate crude rose 0.3% to $63.79 a barrel after sliding more than 2% FridayGold was at $1,768.03 an ounceFor 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. Business Business Business Business Business Bloomberg 210502 17h34m Oil Trades Near $67 as India Demand Drop Curbs Recovery Optimism (Bloomberg) -- Oil rose toward $67 a barrel as weaker demand from virus-ravaged India partially offset optimism over the global economic recovery.Brent crude edged higher after most-active prices rose almost 6% last month. April sales of gasoline in India fell to the lowest since August, while those for diesel were the least since October when factoring in the length of the month, preliminary data from officials with direct knowledge of the matter show.Oil has rallied in 2021 on prospects for a rebound in demand as Covid-19 vaccines are rolled out, paving the way for greater economic activity. However, the recovery has been uneven, with some nations suffering from resurgent waves of the virus. At the same time, the Organization of Petroleum Exporting Countries and its allies started this month to ease the supply curbs they imposed last year to drain bloated global stockpiles and revive prices.Traders are tracking efforts to broker a U.S.-Iranian deal to revive a nuclear accord abandoned by the White House in 2018, potentially paving the way for an increase in crude exports from the Persian Gulf nation. U.S. officials said a deal to isn’t close, denying an Iranian report on an impending prisoner swap.Brent’s prompt timespread was 47 cents a barrel in backwardation, a bullish pattern where near-term prices trade above those further out. That compares with 62 cents a week ago and 40 cents at the start of April.Many countries around the world -- including China, Japan and the U.K. -- are marking national holidays on Monday, which may thin out trading volumes. 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. Howell date : 210502 15h45m49s Business Bloomberg 210502 15h20m Stocks to Drift Lower in Asia; Dollar Slips: Markets Wrap (Bloomberg) -- Stocks in Asia are set for a muted start the week with some major markets closed for a holiday and inflation concerns resurfacing. The dollar slipped versus major peers.Australian futures pointed lower, while those in Hong Kong also fell earlier. Markets in Japan and China are shut for holidays. U.S. stocks dropped from a record Friday, with economic data showing potential inflation pressures and hawkish remarks from a Federal Reserve official. Still, the S&P 500 Index capped its biggest monthly rally since November.Signs of excessive risk-taking suggest it’s time to start debating a reduction in bond purchases, said Robert Kaplan, president of the Dallas Federal Reserve. Treasuries held above 1.6%.“Interest rates going forward will be led more by expectations on the tapering from the Fed rather than by inflation,” Raffaele Bertoni, head of debt capital markets at Gulf Investment Corp., said on Bloomberg Television. Stocks start the month with inflation risks back in focus, though the data are skewed in part by last year’s pandemic shock. U.S. personal incomes soared in March by the most in monthly records back to 1946, powered by fiscal stimulus. A key measure of consumer prices that the Fed officially uses for its target had the biggest increase since 2018.Meanwhile, India’s virus crisis is worsening, with daily deaths hitting another record on Sunday. Prime Minister Narendra Modi has come under fire for his handling of the Covid-19 crisis and his party is trailing in a key state election.Here are some key events to watch this week:A slew of manufacturing PMIs are due Monday, including from U.S. and ChinaFed Chair Jerome Powell speaks in an event hosted by the National Community Reinvestment CoalitionThe Reserve Bank of Australia monetary policy decision is due TuesdayChicago Fed President Charles Evans gives a virtual speech on the U.S. economy at an event hosted by Bard College Wednesday. Cleveland Fed President Loretta Mester speaks to the Boston Economic ClubBank of England rate decision ThursdayU.S. April employment report is released on FridayThese are some of the main moves in markets:StocksThe S&P 500 fell 0.7% FridayAustralia’s S&P/ASX 200 Index futures slipped 0.1%Hong Kong’s Hang Seng Index futures fell 0.3% earlier.CurrenciesThe yen was at 109.29 per dollarThe offshore yuan was at 6.4711 per dollarThe Bloomberg Dollar Spot Index rose 0.7% FridayThe euro rose 0.1% to $1.2034BondsThe yield on 10-year Treasuries was little changed at 1.63%. Cash Treasuries won’t trade in Asia because of the Tokyo holidayCommoditiesWest Texas Intermediate crude fell 2.2% to $63.58 a barrelGold was at $1,769.13 an ounceFor 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. Business Business Politics Bloomberg 210502 12h45m El Salvador’s Top Judges, Attorney General Ousted by Ruling Party (Bloomberg) -- El Salvador’s ruling party took control of the top court and replaced the attorney general in a move criticized by the Biden administration and human rights groups, which warned it may sour relations with Washington and the International Monetary Fund.President Nayib Bukele’s New Ideas party used Saturday’s first meeting of a new legislative session to replace five magistrates from the court’s constitutional chamber, and to fire the attorney general. New judges took office immediately. Rodolfo Delgado was named attorney general, replacing Raul Melara.“And the Salvadoran people, through their representatives, said FIRED,” Bukele wrote on Twitter. He later wrote that he was “extremely pleased” with the legislative session.Bukele, a social-media savvy 39-year-old who won office in 2019, has consolidated his control of the Central American country, with the party he founded and its allies taking control of the congress in a landslide win during March elections.Autocratic MoveBusiness groups, international organizations and members of President Joe Biden’s administration were quick to criticize the sackings, which took place late Saturday after a marathon legislative session.Secretary of State Antony Blinken spoke with Bukele by phone on Sunday, said spokesman Ned Price, to express “the U.S. government’s grave concern” over the magistrates’ removal.Blinken also raised U.S. concern with Bukele over the removal of Melara, “who’s fighting corruption and impunity, and is an effective partner of efforts to combat crime in both the United States and El Salvador,” Price said.The actions come at a key moment for El Salvador, which is negotiating with the International Monetary Fund on a potential extended fund facility.Human Rights Watch’s executive director of the Americas Division called it an “autocratic move” in a tweet. “We will make very effort for this assault on democracy to affect the relationship with the US government, the World Bank, the IMF and the Inter-American Bank,” Jose Miguel Vivanco wrote.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. Business Reuters 210502 11h45m Analysis-In Apple versus Epic Games, courtroom battle is only half the fight Epic Games faces an uphill legal battle against Apple Inc in an antitrust trial starting Monday, and a defeat for the maker of "Fortnite" could make it harder for U.S. government regulators to pursue a similar case against the iPhone maker, legal experts said. But win or lose at the trial, Epic, which has pursued an aggressive public relations campaign against Apple alongside its court pleadings, may have already accomplished a major goal: Drawing Apple squarely into the global debate over whether and how massive technology companies should be regulated. Apple has mostly succeeded in staying out of the regulatory crosshairs by arguing that the iPhone is a niche product in a smartphone world dominated by Google's Android operating system. Business Reuters 210502 11h45m Intel to invest $600 million to expand chip, Mobileye R&D in Israel Intel Corp said on Sunday it will invest another $600 million in Israel to expand its research and development (R&D) and confirmed it was spending $10 billion on a new chip plant. The announcement was made during a one-day visit to Israel by Intel Chief Executive Pat Gelsinger as part of a European tour that included Germany and Belgium last week. Intel is investing $400 million to turn its Mobileye unit headquartered in Jerusalem into an R&D campus for developing self-driving car technologies. World Reuters 210502 10h45m Pfizer to supply 4.5 mln doses of COVID-19 vaccine to South Africa by June Pfizer Inc will ship 4.5 million doses of COVID-19 vaccine to South Africa by June, Health Minister Zweli Mkhize said in a statement on Sunday. The first batch of 325,260 doses will arrive in the country Sunday night, Mkhize said, adding that they will be expecting same number of doses to arrive on a weekly basis. "The vaccine supply will increase to an average of 636,480 doses weekly from 31 May which will see us accumulating close to 4.5 million doses by the end of June," the statement added. Howell date : 210502 13h45m24s Business Reuters 210502 11h45m Analysis-In Apple versus Epic Games, courtroom battle is only half the fight Epic Games faces an uphill legal battle against Apple Inc in an antitrust trial starting Monday, and a defeat for the maker of "Fortnite" could make it harder for U.S. government regulators to pursue a similar case against the iPhone maker, legal experts said. But win or lose at the trial, Epic, which has pursued an aggressive public relations campaign against Apple alongside its court pleadings, may have already accomplished a major goal: Drawing Apple squarely into the global debate over whether and how massive technology companies should be regulated. Apple has mostly succeeded in staying out of the regulatory crosshairs by arguing that the iPhone is a niche product in a smartphone world dominated by Google's Android operating system. Business Bloomberg 210502 11h45m Ontario Says Lender Misappropriated Funds and That CEO Took Payments (Bloomberg) -- Canada’s top capital markets regulator is investigating officers and shareholders of Bridging Finance Inc., one of the country’s largest private lenders, on allegations they misappropriated investor funds.An Ontario court appointed PricewaterhouseCoopers to take control of Bridging at the request of the Ontario Securities Commission, pending the outcome of the investigation. The move was made public Saturday.Bridging, based in Toronto, was run by a husband-and-wife team, David Sharpe and Natasha Sharpe. The firm, which had about C$2 billion ($1.6 billion) in assets under management as of December, lends to small and mid-sized companies involved in everything from milling flour to delivering groceries.In court documents, the OSC alleges the firm and senior executives mismanaged funds and failed to disclose conflicts of interest.Among the alleged conflicts, Chief Executive Officer David Sharpe received C$19.5 million in undisclosed payments into his personal checking account from a company controlled by Sean McCoshen, the commission says in documents. During that same period, Bridging’s funds were lending more than C$100 million to McCoshen’s other companies, the documents say.Leased BentleysAccording to an affidavit sworn by OSC forensic accountant Daniel Tourangeau, much of the undisclosed money was moved into David Sharpe’s investment accounts at Bank of Montreal and Richardson GMP; at least C$1.4 million “appears to have been later transferred offshore.”About C$128,000 was paid to a unit of Tesla Inc. and almost C$100,000 to a car-leasing company, which Tourangeau believes was used to lease a 2013 Bentley GTC Mulliner and a 2018 Bentley Bentayaga, the affidavit states. About C$830,000 was used for donations, including to Ontario’s Queen’s University.Through a spokesperson, Bridging Finance, David Sharpe and Natasha Sharpe declined to comment. McCoshen, an entrepreneur who is behind a proposed railway from Alberta to Alaska, said in a text message that the company may respond later.The securities commission says it has uncovered evidence that Bridging and certain members of its senior management -- including David and Natasha Sharpe -- breached securities laws and regulations and misled investigators about transactions.‘Serious Concerns’One of the central accusations is that Bridging misappropriated about C$35 million “to complete an acquisition for its own benefit” -- a deal with investment manager Ninepoint Partners LP for an interest in an income fund the two firms had been jointly operating.An executive at Ninepoint told the OSC that Bridging had transferred C$20 million from the income fund to pay a loan and then reversed the transaction. The money came back into the jointly-managed fund through accounts related to other Bridging funds, rather than from a law firm trust account, which raised a red flag.Ninepoint then questioned Bridging about these transactions, but wasn’t satisfied with their responses and threatened the latter with litigation, according to documents. Bridging then offered to buy out Ninepoint -- which the OSC alleges was ultimately done with misappropriated money through a complex series of transactions.“The gravity of these regulatory breaches raises serious concerns about the ability of senior management to operate in Ontario’s capital markets in compliance with securities law,” the OSC said in court documents. Bridging’s investors “can no longer rely on BFI or its senior management to protect their best interests.”“Investors deserve a full investigation into the business activities of BFI and the Sharpes and to know that their investment funds are in the hands of honest, competent and responsible custodians,” the regulator added.Lack of DisclosureEntrepreneur Gary Ng, who has been accused by another Canadian investment regulator of falsifying documents and creating fake brokerage accounts to secure the money to buy one of Vancouver’s oldest investment firms, PI Financial Corp., is also mentioned in the documents.Ng bought a stake in Bridging in 2019, but the OSC alleges that more than half of the C$50 million he used for the deal came from investor funds that Bridging managed.Bridging’s funds loaned approximately C$119 million to three companies owned by Ng, without properly disclosing to investors that Ng was in negotiations to buy shares from Bridging’s main shareholders, the regulator said.The OSC also found evidence of unexplained transfers made by Ng into David Sharpe’s personal account. Ng declined to comment on the allegations.The OSC issued a temporary order halting trading of Bridging Finance funds and suspended the David Sharpe’s registration as “Ultimate Designated Person” of the company.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. Business Reuters 210502 11h45m Intel to invest $600 million to expand chip, Mobileye R&D in Israel Intel Corp said on Sunday it will invest another $600 million in Israel to expand its research and development (R&D) and confirmed it was spending $10 billion on a new chip plant. The announcement was made during a one-day visit to Israel by Intel Chief Executive Pat Gelsinger as part of a European tour that included Germany and Belgium last week. Intel is investing $400 million to turn its Mobileye unit headquartered in Jerusalem into an R&D campus for developing self-driving car technologies. World Reuters 210502 10h45m Pfizer to supply 4.5 mln doses of COVID-19 vaccine to South Africa by June Pfizer Inc will ship 4.5 million doses of COVID-19 vaccine to South Africa by June, Health Minister Zweli Mkhize said in a statement on Sunday. The first batch of 325,260 doses will arrive in the country Sunday night, Mkhize said, adding that they will be expecting same number of doses to arrive on a weekly basis. "The vaccine supply will increase to an average of 636,480 doses weekly from 31 May which will see us accumulating close to 4.5 million doses by the end of June," the statement added. World Bloomberg 210502 10h45m Colombia Sends Soldiers to Cities Amid Protests Against Tax Bill (Bloomberg) -- Colombia’s president is deploying soldiers to back up police officers after days of marches and street protests against the government’s proposed tax reforms have left at least six people dead.President Ivan Duque said late Saturday that the military presence will continue in cities at high risk for violence “until acts of serious disturbance of public order cease.” Duque didn’t specify the number of troops to be deployed, but said they’ll respect international human rights norms.The mostly peaceful protests have been marred by isolated acts of looting and vandalism, the burning of buses, and clashes between demonstrators and police. Five civilians and one police officer have died, three other deaths are being investigated, and hundreds of people have been injured, according to the national human rights ombudsman.Thousands took to the streets this week to oppose the proposed tax reforms. The bill, which is being modified, initially targeted the wealthy, taxed more of the middle class, and removed some exemptions on the value-added tax. The measure was met with stiff opposition in congress, with some political parties calling for it to be scrapped entirely.After a historic economic contraction last year due to the coronavirus pandemic, the reforms are seen as a way to shrink the budget deficit and for Colombia to maintain its investment-grade credit status. Two of the three major ratings agencies rank the nation at one step above junk.Duque late Friday ordered the Finance Ministry to revise the bill, removing some of the most contentious elements. That failed to calm demonstrations as thousands marched again on Saturday. There were calls for the protests to continue on Sunday.“We will not allow for the destruction of public and private property, or for messages of hate to have a place in our country,” Duque 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. Business Yahoo Finance 210502 10h45m Uber, Lyft earnings, April jobs report: What to know this week Investors will have another packed schedule of corporate earnings reports to consider, alongside the latest monthly jobs report from the Labor Department. News Yahoo Finance Video 210502 09h44m Columbia Business School Professor: 'decreasing importance' of economic relationship between U.S. and China Columbia Business School Professor Bruce Greenwald spoke to Yahoo Finance Editor-in-Chief Andy Serwer to discuss the economic relationship between China and the U.S. and how it has an impact on the markets. https://finance.yahoo.com/video/columbia-business-school-professor-decreasing-154657651.html Howell - downplays manufacturing, technology. Great point that US attracts best of foreigners, local not good enough for anybody. World Bloomberg 210502 10h57m Colombia Sends Soldiers to Cities Amid Protests Against Tax Bill (Bloomberg) -- Colombia’s president is deploying soldiers to back up police officers after days of marches and street protests against the government’s proposed tax reforms have left at least six people dead.President Ivan Duque said late Saturday that the military presence will continue in cities at high risk for violence “until acts of serious disturbance of public order cease.” Duque didn’t specify the number of troops to be deployed, but said they’ll respect international human rights norms.The mostly peaceful protests have been marred by isolated acts of looting and vandalism, the burning of buses, and clashes between demonstrators and police. Five civilians and one police officer have died, three other deaths are being investigated, and hundreds of people have been injured, according to the national human rights ombudsman.Thousands took to the streets this week to oppose the proposed tax reforms. The bill, which is being modified, initially targeted the wealthy, taxed more of the middle class, and removed some exemptions on the value-added tax. The measure was met with stiff opposition in congress, with some political parties calling for it to be scrapped entirely.After a historic economic contraction last year due to the coronavirus pandemic, the reforms are seen as a way to shrink the budget deficit and for Colombia to maintain its investment-grade credit status. Two of the three major ratings agencies rank the nation at one step above junk.Duque late Friday ordered the Finance Ministry to revise the bill, removing some of the most contentious elements. That failed to calm demonstrations as thousands marched again on Saturday. There were calls for the protests to continue on Sunday.“We will not allow for the destruction of public and private property, or for messages of hate to have a place in our country,” Duque 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. Business World World Reuters 210502 09h44m Lebanon arrests two brothers suspected in Saudi drug haul Lebanon has detained two brothers suspected of being involved in a foiled attempt to smuggle amphetamines into Saudi Arabia that prompted the Saudi authorities to impose a ban on importing Lebanese produce, the caretaker government said on Sunday. Saudi Arabia announced the ban on April 23 after the discovery of 5.3 million Captagon pills, a type of amphetamine, hidden in pomegranate shipments from Lebanon. Interior minister in the caretaker government, Mohamed Fahmy, was speaking in an interview with Lebanon's MTV broadcaster during a tour of the border area from the north to the Bekaa valley where there is rampant smuggling across the border with Syria, of goods from drugs to fuel and subsidised food. World Reuters 210501 17h58m Climate finance targets top agenda for this week's G7 meetings Targets for climate finance and girls' education will top the agenda at a meeting this week of foreign ministers from the Group of Seven advanced economies, this year's chair Britain said on Sunday. The London summit will be the first attended in person by G7 foreign ministers for two years. Britain has also invited representatives from Australia, India, South Korea and South Africa as guests for some of the meetings. Business Reuters 210501 16h58m Buffett and Munger heap criticism on Robinhood for casino-like atmosphere Warren Buffett on Saturday likened the millions of inexperienced day traders who entered the stock market in the past year to gamblers, and said commission-free brokerages such as Robinhood Financial for promoted a casino-like atmosphere. Speaking at Berkshire Hathaway Inc's annual meeting, Buffett said Robinhood has attracted, "maybe set out to attract," a large number of people who are just gambling on short-term price movements in stocks such as Apple Inc. Buffett's long-time business partner, Charlie Munger, was more harsh. Business Bloomberg 210501 16h58m Record Metals Prices Catapult Mining Profits Beyond Big Oil (Bloomberg) -- Major oil producers, for decades the natural resource industry’s top earners, are being eclipsed by once-smaller mining peers who are churning out record profits thanks to red-hot metals markets.The mining windfall is the latest sign of a boom in iron ore, copper and other metals that’s sending an inflationary wave through the global economy, increasing the cost of everything from electrical wires to construction beams.In the corporate world, the top five iron ore mining companies are on track to deliver bottom-line profits of $65 billion combined this year, according to estimates compiled by Bloomberg. That’s about 13% more than the five biggest international oil producers, flipping a decades-old hierarchy.“It’s wild,” said Mark Hansen, chief executive officer of London-based trading house Concord Resources Ltd. “The value right now has shifted from energy to metals.”The eye-watering mining profits are mainly a product of iron ore, the world’s biggest commodity after oil. The crucial steelmaking ingredient has been trading just a whisker below $200 a ton and on par with record prices from a decade ago, when voracious Chinese demand triggered what became known as the commodities supercycle. The largest Australian mining companies can pull a ton of iron ore from the ground for less than $20 a ton.Copper prices have also jumped near to all-time highs, crossing the $10,000-a-ton barrier for the first time in a decade. A basket of base metals including aluminum, nickel, copper, tin, lead and zinc is trading at levels only reached twice in modern history: in 2007-08 and 2011.For the big five iron ore miners -- BHP Group, Rio Tinto Group, Vale SA, Anglo American Plc and Fortescue Metals Group Ltd. -- this fiscal year will be just the second time this century that they’ll out-earn their oil peers, estimates show. It would be only the first time if their oil rivals hadn’t been weighed down by huge writedowns in 2020.During the previous commodity boom, which peaked between 2008 and 2011, Big Oil easily made larger profits than Big Mining. A decade ago, for example, the five energy majors -- Exxon Mobil Corp., Chevron Corp., Royal Dutch Shell Plc, Total SE and BP Plc -- delivered adjusted earnings that were double those of the big five iron ore miners.Now, the surge in mining profits is another headache for the large oil companies as they struggle to attract shareholders amid mounting concern over climate change. While the miners are already returning more cash to investors, the oil producers are only just starting to do so, after some cut dividends last year.The miners also have a better story to tell: while oil contributes to a warming world, some metals -- particularly copper -- are key to building a greener future based on electric cars.Inflation ConcernsThe mining windfall matters beyond the natural resources industry. It’s an indication that companies across multiple sectors will face rising costs, which at some point could translate into broader inflation, potentially hitting bond and foreign exchange markets.“After a year of strong commodity-price increases, inflation pressures are now building downstream in supply chains,” said John Mothersole, pricing and purchasing research director at consultant IHS Markit Ltd.So far, central banks -- notably the U.S. Federal Reserve -- have largely disregarded those pressures, saying they’re one-time price surges that are unlikely to start an inflationary problem. The Fed said April 28 that while inflation has risen, the increase largely reflects “transitory factors.”Iron ore is in a dream scenario: demand, especially from China, is rampant, while supply is constrained. China, which accounts for about half of global steel production, is making a record amount of the metal, while industrial output is surging across the rest of the world as huge stimulus packages fuel a recovery from the pandemic. At the same time, producers are struggling to keep mines running at full capacity.Returning CashYet underpinning the tightness in metals is a strategic decision made by the big miners half a decade ago. After spending years pumping ever-expanding supply onto the global market, they ripped up growth plans and focused instead on shareholder returns. The result was that supply largely stopped rising and prices started to pick up.The good news for investors is that during this wave of high prices they’re likely to see more of the profits. Unlike in the last commodity supercycle, the miners -- still bruised from a series of disastrous deals and projects -- are reluctant to pour their extra earnings into acquisitions or new mines, instead choosing to distribute record dividends.That point was made clear by Vale’s CEO last week, after the Brazilian mining giant posted its best quarterly result since the high-point of the supercycle a decade ago.“You shouldn’t expect extreme” spending, Eduardo De Salles Bartolomeo said on Tuesday. “There is nothing on our radar like that. And secondly -- the question that a lot of people make so I’ll take the opportunity to make it clear -- there is no transformation and M&A on our radar as well.”Big Oil is now doing the same, with companies from Exxon to BP abandoning oil output growth plans in an effort to regain shareholder trust: they have slashed spending on new projects, and after paying down debt, are promising to reward investors rather than develop new fields and refineries as they did during the previous cycle. That’s likely to result in lower oil supply later this decade, which in turn could support prices.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. World Reuters 210501 16h58m UPDATE 5-N. Korea says Biden policy shows hostile U.S. intent, vows response North Korea lashed out at the United States and its allies in South Korea on Sunday in a series of statements saying recent comments from Washington are proof of a hostile policy that requires a corresponding response from Pyongyang. The statements, carried on state news agency KCNA, come after the White House on Friday said U.S. officials had completed a months-long review of North Korean policy, and underscore the challenges U.S. President Joe Biden faces as he seeks to distance his approach from the failures of his predecessors. Business Yahoo Finance 210501 16h58m Munger on Robinhood: 'It's deeply wrong. We don't want to make our money selling things that are bad for people' Warren Buffett says he’s "looking forward" to reading Robinhood’s S-1 as he proceeded to subtly criticized the no-fee brokerage app, while his long-time partner, Charlie Munger, outright lambasted it. Business Reuters 210501 15h58m Berkshire shareholders reject climate change, diversity proposals that Buffett opposed Berkshire Hathaway Inc shareholders on Saturday easily rejected proposals requiring the company run since 1965 by Warren Buffett to disclose more about its efforts to address climate change and promote diversity and inclusion in its workforce. The rejections were not a surprise, given that Buffett controls nearly one-third of Berkshire's voting power and opposed both proposals. But the climate change proposal won support from just over 25% of votes cast and the diversity proposal from 24%, suggesting greater discontent than Berkshire shareholders historically demonstrate. Business Yahoo Finance 210501 15h58m Buffett on failed health care venture Haven: 'We were fighting a tapeworm in the American economy. And the tapeworm won' At the Berkshire Hathaway (BRK-B, BRK-A) annual shareholder meeting on Saturday, CEO Warren Buffett and his long-time business partner Charlie Munger discussed the failure of Haven, the joint health care venture with JPMorgan (JPM) and Amazon (AMZN). Business Yahoo Finance 210501 15h58m Warren Buffett: We are seeing substantial inflation and are raising prices Warren Buffett sounds the alarm bell on inflation. World Reuters 210501 17h56m Climate finance targets top agenda for this week's G7 meetings Targets for climate finance and girls' education will top the agenda at a meeting this week of foreign ministers from the Group of Seven advanced economies, this year's chair Britain said on Sunday. The London summit will be the first attended in person by G7 foreign ministers for two years. Britain has also invited representatives from Australia, India, South Korea and South Africa as guests for some of the meetings. Business Reuters 210501 16h56m Buffett and Munger heap criticism on Robinhood for casino-like atmosphere Warren Buffett on Saturday likened the millions of inexperienced day traders who entered the stock market in the past year to gamblers, and said commission-free brokerages such as Robinhood Financial for promoted a casino-like atmosphere. Speaking at Berkshire Hathaway Inc's annual meeting, Buffett said Robinhood has attracted, "maybe set out to attract," a large number of people who are just gambling on short-term price movements in stocks such as Apple Inc. Buffett's long-time business partner, Charlie Munger, was more harsh. Business Bloomberg 210501 16h56m Record Metals Prices Catapult Mining Profits Beyond Big Oil (Bloomberg) -- Major oil producers, for decades the natural resource industry’s top earners, are being eclipsed by once-smaller mining peers who are churning out record profits thanks to red-hot metals markets.The mining windfall is the latest sign of a boom in iron ore, copper and other metals that’s sending an inflationary wave through the global economy, increasing the cost of everything from electrical wires to construction beams.In the corporate world, the top five iron ore mining companies are on track to deliver bottom-line profits of $65 billion combined this year, according to estimates compiled by Bloomberg. That’s about 13% more than the five biggest international oil producers, flipping a decades-old hierarchy.“It’s wild,” said Mark Hansen, chief executive officer of London-based trading house Concord Resources Ltd. “The value right now has shifted from energy to metals.”The eye-watering mining profits are mainly a product of iron ore, the world’s biggest commodity after oil. The crucial steelmaking ingredient has been trading just a whisker below $200 a ton and on par with record prices from a decade ago, when voracious Chinese demand triggered what became known as the commodities supercycle. The largest Australian mining companies can pull a ton of iron ore from the ground for less than $20 a ton.Copper prices have also jumped near to all-time highs, crossing the $10,000-a-ton barrier for the first time in a decade. A basket of base metals including aluminum, nickel, copper, tin, lead and zinc is trading at levels only reached twice in modern history: in 2007-08 and 2011.For the big five iron ore miners -- BHP Group, Rio Tinto Group, Vale SA, Anglo American Plc and Fortescue Metals Group Ltd. -- this fiscal year will be just the second time this century that they’ll out-earn their oil peers, estimates show. It would be only the first time if their oil rivals hadn’t been weighed down by huge writedowns in 2020.During the previous commodity boom, which peaked between 2008 and 2011, Big Oil easily made larger profits than Big Mining. A decade ago, for example, the five energy majors -- Exxon Mobil Corp., Chevron Corp., Royal Dutch Shell Plc, Total SE and BP Plc -- delivered adjusted earnings that were double those of the big five iron ore miners.Now, the surge in mining profits is another headache for the large oil companies as they struggle to attract shareholders amid mounting concern over climate change. While the miners are already returning more cash to investors, the oil producers are only just starting to do so, after some cut dividends last year.The miners also have a better story to tell: while oil contributes to a warming world, some metals -- particularly copper -- are key to building a greener future based on electric cars.Inflation ConcernsThe mining windfall matters beyond the natural resources industry. It’s an indication that companies across multiple sectors will face rising costs, which at some point could translate into broader inflation, potentially hitting bond and foreign exchange markets.“After a year of strong commodity-price increases, inflation pressures are now building downstream in supply chains,” said John Mothersole, pricing and purchasing research director at consultant IHS Markit Ltd.So far, central banks -- notably the U.S. Federal Reserve -- have largely disregarded those pressures, saying they’re one-time price surges that are unlikely to start an inflationary problem. The Fed said April 28 that while inflation has risen, the increase largely reflects “transitory factors.”Iron ore is in a dream scenario: demand, especially from China, is rampant, while supply is constrained. China, which accounts for about half of global steel production, is making a record amount of the metal, while industrial output is surging across the rest of the world as huge stimulus packages fuel a recovery from the pandemic. At the same time, producers are struggling to keep mines running at full capacity.Returning CashYet underpinning the tightness in metals is a strategic decision made by the big miners half a decade ago. After spending years pumping ever-expanding supply onto the global market, they ripped up growth plans and focused instead on shareholder returns. The result was that supply largely stopped rising and prices started to pick up.The good news for investors is that during this wave of high prices they’re likely to see more of the profits. Unlike in the last commodity supercycle, the miners -- still bruised from a series of disastrous deals and projects -- are reluctant to pour their extra earnings into acquisitions or new mines, instead choosing to distribute record dividends.That point was made clear by Vale’s CEO last week, after the Brazilian mining giant posted its best quarterly result since the high-point of the supercycle a decade ago.“You shouldn’t expect extreme” spending, Eduardo De Salles Bartolomeo said on Tuesday. “There is nothing on our radar like that. And secondly -- the question that a lot of people make so I’ll take the opportunity to make it clear -- there is no transformation and M&A on our radar as well.”Big Oil is now doing the same, with companies from Exxon to BP abandoning oil output growth plans in an effort to regain shareholder trust: they have slashed spending on new projects, and after paying down debt, are promising to reward investors rather than develop new fields and refineries as they did during the previous cycle. That’s likely to result in lower oil supply later this decade, which in turn could support prices.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. World Reuters 210501 16h56m UPDATE 5-N. Korea says Biden policy shows hostile U.S. intent, vows response North Korea lashed out at the United States and its allies in South Korea on Sunday in a series of statements saying recent comments from Washington are proof of a hostile policy that requires a corresponding response from Pyongyang. The statements, carried on state news agency KCNA, come after the White House on Friday said U.S. officials had completed a months-long review of North Korean policy, and underscore the challenges U.S. President Joe Biden faces as he seeks to distance his approach from the failures of his predecessors. Business Yahoo Finance 210501 16h56m Munger on Robinhood: 'It's deeply wrong. We don't want to make our money selling things that are bad for people' Warren Buffett says he’s "looking forward" to reading Robinhood’s S-1 as he proceeded to subtly criticized the no-fee brokerage app, while his long-time partner, Charlie Munger, outright lambasted it. Business Reuters 210501 15h56m Berkshire shareholders reject climate change, diversity proposals that Buffett opposed Berkshire Hathaway Inc shareholders on Saturday easily rejected proposals requiring the company run since 1965 by Warren Buffett to disclose more about its efforts to address climate change and promote diversity and inclusion in its workforce. The rejections were not a surprise, given that Buffett controls nearly one-third of Berkshire's voting power and opposed both proposals. But the climate change proposal won support from just over 25% of votes cast and the diversity proposal from 24%, suggesting greater discontent than Berkshire shareholders historically demonstrate. Business Yahoo Finance 210501 15h56m Buffett on failed health care venture Haven: 'We were fighting a tapeworm in the American economy. And the tapeworm won' At the Berkshire Hathaway (BRK-B, BRK-A) annual shareholder meeting on Saturday, CEO Warren Buffett and his long-time business partner Charlie Munger discussed the failure of Haven, the joint health care venture with JPMorgan (JPM) and Amazon (AMZN). Business Yahoo Finance 210501 15h56m Warren Buffett: We are seeing substantial inflation and are raising prices Warren Buffett sounds the alarm bell on inflation. Business Reuters 210501 17h13m Buffett and Munger heap criticism on Robinhood for casino-like atmosphere Warren Buffett on Saturday likened the millions of inexperienced day traders who entered the stock market in the past year to gamblers, and said commission-free brokerages such as Robinhood Financial for promoted a casino-like atmosphere. Speaking at Berkshire Hathaway Inc's annual meeting, Buffett said Robinhood has attracted, "maybe set out to attract," a large number of people who are just gambling on short-term price movements in stocks such as Apple Inc. Buffett's long-time business partner, Charlie Munger, was more harsh. Business Reuters 210501 15h55m Berkshire shareholders reject climate change, diversity proposals that Buffett opposed Berkshire Hathaway Inc shareholders on Saturday easily rejected proposals requiring the company run since 1965 by Warren Buffett to disclose more about its efforts to address climate change and promote diversity and inclusion in its workforce. The rejections were not a surprise, given that Buffett controls nearly one-third of Berkshire's voting power and opposed both proposals. But the climate change proposal won support from just over 25% of votes cast and the diversity proposal from 24%, suggesting greater discontent than Berkshire shareholders historically demonstrate. Business Yahoo Finance 210501 15h55m Buffett on failed health care venture Haven: 'We were fighting a tapeworm in the American economy. And the tapeworm won' At the Berkshire Hathaway (BRK-B, BRK-A) annual shareholder meeting on Saturday, CEO Warren Buffett and his long-time business partner Charlie Munger discussed the failure of Haven, the joint health care venture with JPMorgan (JPM) and Amazon (AMZN). Business Yahoo Finance 210501 15h55m Warren Buffett: We are seeing substantial inflation and are raising prices Warren Buffett sounds the alarm bell on inflation. Business Yahoo Finance 210501 15h33m Charlie Munger: 'Of course, I hate the bitcoin success' Legendary investor Warren Buffett, the CEO of Berkshire Hathaway (BRK-B, BRK-A), and his long-time business partner Charlie Munger dissed bitcoin once more at the annual meeting of shareholders on Saturday. Business Yahoo Finance 210501 15h27m Kraft Heinz finally gets some praise from the Warren Buffett crew Kraft Heinz gets a vote of confidence from Warren Buffett's team at this year's Berkshire annual meeting. Business Yahoo Finance Video 210501 15h25m Warren Buffett on inflation: we're raising prices and it's being accepted At the annual Berkshire Hathaway shareholders meeting live streamed on Yahoo Finance, Warren Buffett, Charlie Munger, and CEO of Berkshire Hathaway Energy Greg Abel discuss signs of inflation beginning to increase. Health Reuters 210501 15h19m Jordan detects three cases of Indian COVID-19 variant - minister Jordan detected three cases of the Indian COVID-19 variant in people who had not travelled, the health minister told state-owned Al Mamlaka TV. "Two cases were recorded in Amman and one in Zarqa in people who did not travel, which confirms that the emergence of mutated cases does not necessarily have to come from outside, but rather as a result of specific reproduction," Minister Firas Al-Hawari told Al Mamlaka TV. Jordan recorded on Saturday 704 cases of COVID-19 with 35 deaths, bringing the total cases detected in the kigdom to 712,077 with 8,871 deaths, according to the health ministry. Business Yahoo Finance Video 210501 15h17m Charlie Munger on short-term stock trading At the annual Berkshire Hathaway shareholders meeting live streamed on Yahoo Finance, Warren Buffett and Charlie Munger discuss quant funds. Business Yahoo Finance Video 210501 15h19m Warren Buffett: Tim Cook is one of the best managers in the world At the annual Berkshire Hathaway shareholders meeting live streamed on Yahoo Finance, Warren Buffett discusses Apple and the company’s management. Business Yahoo Finance Video 210501 15h09m Warren Buffett: We’ve got the best insurance operation in the world At the annual Berkshire Hathaway shareholders meeting live streamed on Yahoo Finance, Warren Buffett and Ajit Jain discuss the state of the insurance industry. Business Yahoo Finance 210501 15h07m Buffett to new investors: 'It's not as easy as it sounds' Buffett shared two items for new entrants to the stock market “to ponder a bit before they try to do 30 or 40 trades a day to profit from what looks like a very easy game.” Business Reuters 210501 15h02m Warren Buffett touts U.S. economy's unexpected strength as Berkshire rebounds Warren Buffett said on Saturday that the U.S. economy is faring far better than he might have predicted early in the coronavirus pandemic and that the improvement is benefiting his conglomerate, Berkshire Hathaway Inc. Speaking at Berkshire's annual meeting, Buffett said the economy has been "resurrected in an extraordinarily effective way" by monetary stimulus from the Federal Reserve and fiscal stimulus from the U.S. Congress. "It did the job," Buffett said, adding that 85% of the economy is running in "super high gear." Business Yahoo Finance Video 210501 11h21m ‘The last year’s been the longest decade of my life’: See’s Candies CEO See's Candies CEO Pat Egan joins Yahoo Finance's Berkshire Hathaway annual meeting pre-show. Business Yahoo Finance 210501 11h05m Berkshire Hathaway-owned See's Candies delivers record first quarter, e-commerce growth explodes Berkshire Hathaway-owned (BRK-B, BRK-A) See's Candies, the 100-year-old maker and seller of chocolates, lollipops, toffee, and Warren Buffett's favorite treat — peanut brittle — had its best quarter ever at the start of 2021, according to CEO Pat Egan. Business Yahoo Finance Video 210501 11h02m What to expect from the Berkshire Hathaway shareholder meeting Yahoo Finance Editor-in-chief Andy Serwer, along with others from Yahoo Finance, discuss what to expect during Berkshire Hathaway's annual shareholder meeting. World Reuters 210501 10h47m UPDATE 1-Pakistan to slash international flights by 80% to curb COVID-19 Pakistan will reduce the number of international flights into and out of its airports by 80% to help curb rising COVID-19 cases, the government said on Saturday. The restrictions will come into effect on May 5 and will run to May 20, Pakistan's Civil Aviation Authority said in a statement, though it did not specify which flights or destinations would be affected by the measure. The controls will be reviewed on May 18, the government said in a statement endorsed by the National Command Operation Center (NCOC), which oversees Pakistan's response to the pandemic. Business Business World Business Bloomberg 210501 07h41m The Decade of Shrinking Global Stock Markets Is Finally Over (Bloomberg) -- The ever-shrinking global stock market is no more.Thanks to record issuance, the SPAC boom and the pandemic-fueled collapse in buybacks, the supply of equities across the developed world has turned positive for the first time in a decade, according to Sanford C. Bernstein. At $273 billion in the 12 months through the end of March, the hand-wringing over the de-equitization trends of the post-financial crisis era is well and truly over.What started as a rush to shore up balance sheets during the Covid crisis has morphed into a spree of deals to tap relentless investor appetite for a market defying historic valuations. From Coinbase Global Inc. and Deliveroo Plc to celebrity blank-check firms, initial and secondary offerings jumped to a record $208 billion in the 13 weeks to April 9, Ned Davis Research data show.It’s the latest sign of market mania on Wall Street.“Typically, equity issuance peaks at the end of the cycle at the same time that investor sentiment gets stretched,” said Emily Roland, co-chief investment strategist at John Hancock Investment Management. “The rapid rise in net equity issuance is another sign to us that this market cycle is happening at warp speed.”All this is a big reversal from the pre-pandemic era, when the number of stocks dropped year-on-year and staying-private was in vogue.That spurred fears the public market was losing its appeal as a pricing mechanism and gateway to raise capital -- not to mention angst that Main Street was missing out on the spoils of American capitalism.The question now: Will money managers gobble up supply, or will corporate buybacks pick up the slack to fuel markets at records?On the latter, there’s good news for bulls with Alphabet Inc. and Apple Inc. pledging to repurchase shares after blockbuster earnings. American companies last quarter announced $339 billion of repurchases, a 68% rise from the depths of the pandemic selloff a year ago, though still short of $569 billion during the 2018 heyday, according to EPFR Global Inc. data.Now, European companies, which have traditionally preferred paying dividends, may be on the brink of a buyback wave, according to Morgan Stanley and Societe Generale SA.Fueled by merger activity, the private equity boom and American firms buying back shares en masse, the shortage of stocks in the pre-virus days helped juice the bull market. It got extreme: In November 2018, supply collapsed by almost $1 trillion, Bernstein data show.In the past the brokerage has compiled the data to clients as a warning that rising supply leads to lower future returns. This time round, things may be different.“One can add on high valuations and several months of record inflows as a series of potentially negative signals,” said strategist Inigo Fraser Jenkins. “But I still think it is right to have a positive equity view as there is a good case that real rates will stay lower for longer, and asset owners are likely going to be forced into buying more equities.”With returns diminishing across the fixed-income world, equities are increasingly seen as the only game in town. After a boom in retail speculation over the past year, the $600 billion of inflows into global stocks over the past five months have exceeded the entire total of the prior 12 years, according to Bank of America Corp.And there are no obvious signs demand will crumble anytime soon.While the global economy is only just emerging from the 2020 doom and gloom, a listing spree and elevated valuations are typically symptoms of greed in the dying stages of the business cycle. For some, it’s a signal the stock party is looking crowded. Since surging 119% in a year to a record in February, an exchange-traded fund that tracks IPOs has dropped more than 15%.Still, there are no tried-and-tested ways to trade a Covid cycle that keeps booming on massive policy stimulus.“Interest in general for equity has been very, very high compared to the last one or two years,” said Katy Kaminski, chief research strategist at quant firm AlphaSimplex Group LLC. “A lot of people think it’s a reasonable time to issue those shares, so it can go on for quite a long time until you have some kind of disruptive event.”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. Business Bloomberg 210501 07h41m Buffett’s Berkshire Gets More Cautious on Stocks and Buybacks (Bloomberg) -- Warren Buffett’s capital-deployment machine pulled back on several fronts at the start of the year as the billionaire took a more cautious stance on stocks.Berkshire Hathaway Inc.’s net stock sales in the first quarter were the second-highest in almost five years and the conglomerate, where the billionaire is chief executive officer, slowed its buyback pace, according to a regulatory filing Saturday. That helped push Berkshire’s cash pile up 5.2% from three months earlier to a near-record $145.4 billion at the end of March.Buffett has struggled in recent years to keep up with Berkshire’s ever-gushing cash flow. That’s led him to repurchase significant amounts of Berkshire stock, pulling a lever for capital deployment that he had previously avoided in favor of big acquisitions or stock purchases. He set a record in the third quarter of last year, snapping up $9 billion of stocks, but slowed that pace during the first quarter with repurchases of $6.6 billion.Still, Berkshire’s businesses pulled off a strong quarter, with earnings reaching the second-highest level in data going back to 2010. Operating profit of about $7.02 billion was only surpassed by the third quarter of 2019. The gains were partly fueled by the firm’s insurers and its group of manufacturers, servicing businesses and retailers.Net earnings, which reflect Berkshire’s $282 billion equity portfolio, swung to a profit of $11.7 billion in the quarter, compared to a loss of $49.7 billion a year earlier, when the pandemic started to race across the U.S. and stocks slumped.Despite buybacks that fell short of Buffett’s quarterly record, the billionaire investor has continued to go after Berkshire’s own stock since the end of March, with at least $1.25 billion of repurchases through April 22, according to the filing.Berkshire Class A shares climbed almost 11% in the first quarter, outpacing the 5.8% gain in the S&P 500 during the same time.Buffett, 90, will join his longtime business partner, Charlie Munger, 97, for Berkshire’s annual meeting Saturday. The pair will field questions from investors for hours during the virtual event.Follow the TopLive blog when the meeting starts here.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. Business Yahoo Finance 210501 06h41m Berkshire Hathaway Annual Meeting 2021: What to expect & how to watch Berkshire Hathaway's (BRK-A, BRK-B) 2021 Annual Shareholders Meeting is taking place on Saturday, May 1 and will be live streamed exclusively here on Yahoo Finance. Business Reuters 210501 06h41m UPDATE 3-Buffett's Berkshire rebounds from pandemic's depths, buys back more stock Warren Buffett's Berkshire Hathaway Inc said on Saturday its earnings are rebounding from the worst effects of the COVID-19 pandemic and that it has extended its aggressive stock repurchases with $6.6 billion of new buybacks. Indeed, Berkshire said many businesses are enjoying "considerably higher" earnings and revenue, while others such as the Precision Castparts aircraft parts unit still struggle. "Results were really good," said Jim Shanahan, a Edward Jones & Co analyst with a "buy" rating on Berkshire. Business Yahoo Finance 210501 06h41m Berkshire Hathaway Annual Meeting 2021 Live Updates: Preview Famed investor Warren Buffett will address shareholders around the world on Saturday at Berkshire Hathaway's 2021 annual shareholder meeting. Business Reuters 210501 06h41m Buffett's Berkshire recovering from pandemic, buys back more stock Warren Buffett's Berkshire Hathaway Inc said on Saturday its results are rebounding from the worst effects of the COVID-19 pandemic and that it has extended its aggressive stock repurchases with $6.6 billion of new buybacks. First-quarter results suggest that the Omaha, Nebraska-based conglomerate, whose dozens of operating businesses include the BNSF railroad and Geico auto insurance, may have experienced the worst effects of the pandemic, including the loss of tens of thousands of jobs. Indeed, Berkshire said many businesses are now posting "considerably higher" earnings and revenue despite the negative impact of February winter storms, though some businesses are still suffering. Business Reuters 210501 05h41m Volkswagen expects chip supply to remain tight in coming months Volkswagen expects semiconductor supplies to the car sector to remain tight in coming months, the head of the carmaker's namesake brand was quoted as saying on Saturday. "I think the situation will remain tense," Ralf Brandstaetter, CEO of the Volkswagen brand and member of the carmaker's management board, told German news agency dpa. He said a fire at a factory operated by automotive chip maker Renesas Electronics Corp, as well as snowstorms in Texas that have hurt factory production, had effectively idled output. Business Reuters 210430 15h57m Virgin Galactic delays quarterly results after regulator guidance for SPACs The guidance, issued earlier this month, called into question whether warrants issued by hundreds of special purpose acquisition companies, or SPACs, could be considered equity instruments. The Securities and Exchange Commission (SEC) also suggested that many SPACs may potentially have to refile their financial statements to account for the warrants as a liability. The SEC guidelines are the latest addition to its move to clamp down on Wall Street's biggest gold rush in recent years, with SPACs announcing deals worth $286.9 billion so far this year globally, Refinitiv data showed. Politics Yahoo Finance 210430 15h57m Giving people money to get vaccinated is 'patriotic': West Virginia governor After saying that West Virginia had “hit a wall” when it comes to COVID-19 vaccinations, Gov. Jim Justice found a creative way to entice people to get the shot: offering $100 U.S. savings bonds for anyone age 16 to age 35. Business Bloomberg 210430 15h57m Exxon Set to Lock Out Beaumont Refinery Workers Amid Impasse (Bloomberg) -- Exxon Mobil Corp. is poised to lock out union workers at its Beaumont refinery in Texas on Saturday as contract negotiations with the United Steelworkers have failed to net an agreement.The oil giant rejected a labor contract counteroffer from the union on Thursday. The union continues to work on proposals and is willing to keep bargaining, letting its members continue working while negotiations are ongoing, a person familiar with the discussions said Friday afternoon. In the event of a lockout, the union will picket Exxon with signs declaring the lockout is illegal rather than calling a strike.During a lockout, companies typically bring in temporary workers to operate facilities. Exxon has already advertised for workers to replace union members starting Saturday.“Our lockout decision is a result of the Union not accepting the company’s contract proposals and the risk of a strike,” plant manager Rozena Dendy said on Exxon’s website Friday afternoon. “It is vital to the safety of our community that we control this timeline to allow our qualified and highly-skilled team to assume safe control of our operations.”United Steelworkers Local 13-243’s six-year work agreement with Exxon expired Feb. 1 and no new collective bargaining agreement was settled upon for the Beaumont refinery and blending and packaging plant. The union contends Exxon’s offer would enact major changes in the existing contract that impact members’ safety, security and seniority.Exxon told union representatives Thursday that the union’s latest offer “still includes items that significantly increase costs to the company and that we have consistently expressed cannot be accepted over the last 108 days of bargaining. To be clear, a ratified contract would still avoid any work stoppage.”The USW and Exxon provided 75-day notices to each other Feb. 15 as required before a lockout or a strike. Exxon has already rejected the union’s offer of a one-year extension and said it would lock out workers if they didn’t agree to the company’s current proposal.Exxon Beaumont union workers have never been locked out. The facility was also not included in a 2015 strike called by the International Union for 12 U.S. refineries and three other plants.The Beaumont refinery can process 359,000 barrels a day of crude.(Adds Exxon statement in fourth paragraph, more on union activities in second 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. Business Yahoo Finance 210430 15h57m Berkshire Hathaway Annual Meeting 2021 Live Updates: Preview Famed investor Warren Buffett will address shareholders around the world on Saturday at Berkshire Hathaway's 2021 annual shareholder meeting. Business Bloomberg 210430 15h57m Texas Freeze Exacted Even Worse Toll Than Estimated on U.S. Oil (Bloomberg) -- An Arctic cold blast that swept through the U.S. South in February caused a much bigger loss in oil supply than previously estimated, with output falling to a three-year low, according to U.S. government data.Drillers cut oil production by almost 1.2 million barrels a day, the biggest decline since May and far more than the 800,000 barrels a day officials had estimated in early April, according to figures released Friday by the U.S. Energy Information Administration.Scores of wells were forced to shut after extreme cold triggered power outages across Texas, the nation’s energy capital. The historic wintry blast at one point curtailed about 4 million barrels a day of U.S. crude oil supply, traders and executives said at the time. The low temperatures also froze oil and gas output at the well head, along with pipes that were transporting that supply.Texas alone contributed about 70% of the monthly loss, while declines in New Mexico accounted for almost 9%, according to the EIA. In North Dakota, output slipped to about a million barrels a day.U.S. crude output declined to about 9.9 million barrels a day in February from just over 11 million in January. Producers have since managed to restore most of the supply, with weekly production averaging almost 11 million barrels a day.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. Business Bloomberg 210430 11h39m April Was Record-Setting for the S&P 500 by One Measure (Bloomberg) -- The S&P 500 Index has had better months than the more than 5% gain it posted this April, but never before has a rally been so widespread and far reaching, according to at least one measure tracked by Bloomberg.During 18 sessions this month through trading on Thursday, 95% or more of the index’s members traded above their 200-day moving average. That’s the most days ever observed in a single calendar month and double the previous high of nine days in September 2009.Just hitting the 95% threshold is a rarity. Prior to this month, the S&P 500 only eclipsed the mark in a grand total of 17 trading days going back to 1990, when Bloomberg began compiling the data.The index also set a new single day record on April 21 when 97% of members closed above their 200-day moving average. Prior to this month, the previous high was 96.6% set on Oct. 19, 2009.The average daily tally for the number of companies trading above their long-term price averages was 95.8% for the month. For context, that’s more than 30 percentage points higher than the 63.8% daily average for the metric since 1990.The broad-based rally across the index comes as its members have upended Wall Street analysts profit projections. Of the 301 companies in the S&P 500 that have reported results so far, about 87% have exceeded analysts’ forecasts.The sweeping nature of the rally combined with the unexpected surge in corporate earnings has helped cushion any down days for the benchmark. Friday is poised to be the 30th consecutive day in which it hasn’t seen a loss of 1% or more. That would be the longest such streak since the beginning of the Covid-19 pandemic.That such a huge proportion of index members are trading above the mark should be viewed as yet another warning sign that the market may be overheating, wrote Matt Maley, chief market strategist for Miller Tabak + Co., in an April 26 note.“The fact that 95% of the S&P 500 is now above its 200-day moving average is NOT a bullish sign,” Maley wrote. “Yes, a high number of stocks above their 200 DMA’s is usually positive, BUT it is NOT bullish when the number becomes extreme (like it is now…at 95%). In other words, this data point is much like sentiment. When it is strong, it is positive…but when it becomes extreme, it becomes a contrarian indicator!”History, however, shows that such a rally could portend more predictable future returns.Chris Verrone, head of technical & macro research at Strategas, points out that historically such breadth bodes well for future returns.“This might surprise you, but there’s much tighter forward return dispersion when you’re very overbought,” he wrote in an email to Bloomberg. “If you just look at the dates in last say 50+ years where you had greater than 95% of issues above the 200-day -- it’s mid-1983, early 2004, and 4Q 2009 -- sure you can get pauses or consolidations from extreme breadth like this, but if you’re familiar with history, you know those dates were anything but fatal for longer-term players.”(Adds data on market streak of days since the last 1% or greater dip in seventh paragraph and comment at end on implications for future returns)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. Business Bloomberg 210430 11h39m April Was Record-Setting for the S&P 500 by One Measure (Bloomberg) -- The S&P 500 Index has had better months than the more than 5% gain it posted this April, but never before has a rally been so widespread and far reaching, according to at least one measure tracked by Bloomberg.During 18 sessions this month through trading on Thursday, 95% or more of the index’s members traded above their 200-day moving average. That’s the most days ever observed in a single calendar month and double the previous high of nine days in September 2009.Just hitting the 95% threshold is a rarity. Prior to this month, the S&P 500 only eclipsed the mark in a grand total of 17 trading days going back to 1990, when Bloomberg began compiling the data.The index also set a new single day record on April 21 when 97% of members closed above their 200-day moving average. Prior to this month, the previous high was 96.6% set on Oct. 19, 2009.The average daily tally for the number of companies trading above their long-term price averages was 95.8% for the month. For context, that’s more than 30 percentage points higher than the 63.8% daily average for the metric since 1990.The broad-based rally across the index comes as its members have upended Wall Street analysts profit projections. Of the 301 companies in the S&P 500 that have reported results so far, about 87% have exceeded analysts’ forecasts.The sweeping nature of the rally combined with the unexpected surge in corporate earnings has helped cushion any down days for the benchmark. Friday is poised to be the 30th consecutive day in which it hasn’t seen a loss of 1% or more. That would be the longest such streak since the beginning of the Covid-19 pandemic.That such a huge proportion of index members are trading above the mark should be viewed as yet another warning sign that the market may be overheating, wrote Matt Maley, chief market strategist for Miller Tabak + Co., in an April 26 note.“The fact that 95% of the S&P 500 is now above its 200-day moving average is NOT a bullish sign,” Maley wrote. “Yes, a high number of stocks above their 200 DMA’s is usually positive, BUT it is NOT bullish when the number becomes extreme (like it is now…at 95%). In other words, this data point is much like sentiment. When it is strong, it is positive…but when it becomes extreme, it becomes a contrarian indicator!”History, however, shows that such a rally could portend more predictable future returns.Chris Verrone, head of technical & macro research at Strategas, points out that historically such breadth bodes well for future returns.“This might surprise you, but there’s much tighter forward return dispersion when you’re very overbought,” he wrote in an email to Bloomberg. “If you just look at the dates in last say 50+ years where you had greater than 95% of issues above the 200-day -- it’s mid-1983, early 2004, and 4Q 2009 -- sure you can get pauses or consolidations from extreme breadth like this, but if you’re familiar with history, you know those dates were anything but fatal for longer-term players.”(Adds data on market streak of days since the last 1% or greater dip in seventh paragraph and comment at end on implications for future returns)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. Business Yahoo Finance Video 210430 11h35m ‘Technology is the largest single growth trend of our lifetime’: Expert Keith Fitz-Gerald, Fitz-Gerald Group Chief Investment Officer, joins Yahoo Finance’s Sibile Marcellus and Alexis Christoforous to discus the outlook on big tech stocks and inflation concerns. Business Yahoo Finance 210430 11h28m Burger King grills up a sales pop as COVID-19 vaccinations pickup: Restaurant Brands CEO Burger King has a comeback quarter as people venture back outside after getting their COVID-19 vaccine. Business Reuters 210430 11h27m Analysis: New meme stocks swing as shorts and retail investors face off again Recent volatility in a handful of so-called meme stocks is putting the spotlight back on the tussle between individual investors and short sellers, months after a wild ride in GameStop captivated Wall Street’s attention. Stocks that have notched big swings this month include laser-manufacturer MicroVision Inc, a favorite on Reddit’s popular WallStreetBets forum, whose shares have risen as much as 170% since April 20 before tumbling in recent days. Those moves do not approach the stunning, nearly 1,700% gain in video game retailer GameStop Corp in January, which was fueled in part by a flurry of buying that forced hedge funds like Melvin Capital to unwind their bets against the stock, sending it higher. Politics Yahoo Finance 210430 11h26m This week in Bidenomics: Sure, go big, voters say Voters like Biden's plan to spend trillions on infrastructure, green energy, health and child care. Why wouldn't they? Business Bloomberg 210430 11h25m Copper’s Surge Toward a Record High Is Hitting Chinese Industry (Bloomberg) -- Copper’s surge toward a record high is starting to cause stress for industrial consumers in China, the world’s largest market for the metal.Some Chinese manufacturers of electric wire have idled units and delayed deliveries or even defaulted on bank loans, according to a survey by the Shanghai Metals Market. End-users such as power grids and property developers have also been pushing back delivery times, while producers of copper rods and pipes saw orders slump this week, said the researcher.Copper topped $10,000 a metric ton on Thursday for the first time in a decade and has been among the best performers in a scorching surge in metals prices. The rally is being fueled by stimulus measures, near-zero interest rates and the global economic recovery from Covid-19.“Domestic copper users are feeling the pain right now after the recent surge caught them off guard,” said Fan Rui, an analyst at Guoyuan Futures Co. “Electric wire producers are being hit the most, with smaller plants keeping run rates low as the spike is seen slowing the pace of investment by power grids.”READ MORE: Copper Extends Rally to Top $10,000 With All-Time High in SightA gauge of China’s manufacturing industry slipped in April and the services sector also weakened, suggesting the economy is still recovering but at a slower pace. To be sure, analysts at banks including Goldman Sachs Group Inc. are predicting further gains for the metal as the global economy picks up pace.Copper fell 0.6% to settle at $9,825 a ton on London Metal Exchange at 5:53 p.m. in London. The metal reached $10,008 on Thursday, the highest since February 2011. Aluminum also declined, while nickel rose.In sign of potential weakness in Chinese physical demand, the spot contract traded at a discount of as much as 215 yuan a ton ($33) to Shanghai futures’ prices this week, the widest in about 10 months. The appetite for imports is also low, with the Yangshan copper premium, paid on top of benchmark LME prices, slumped to the lowest since data were first published in 2017.And there is a precedent for demand destruction in China amid higher prices, according to BMO Capital Markets analyst Colin Hamilton. Hamilton pointed to 2006 where prices recorded the largest January-April gain on record and came amid a credit-fueled sudden acceleration in developed world demand.“2006 was the only year this century where annual Chinese copper consumption fell on a y/y basis, as marginal buyers simply stepped away,” Hamilton said in a note.Higher price levels also could see marginal buyers pull back in the near term and look to substitute in the medium term.“$10,000/t copper now is the biggest danger to future demand use, particularly in these nascent trends where material selection is still evolving,” said Hamilton. “There is no doubt copper may be best for electrical or heat transfer performance, but with the ratio to aluminium now well above the 3.5:1 level where we consider substitution accelerates, the risk is clear.”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. Business Bloomberg 210430 10h58m Electric Car-Charging Business Is Doing Everything But Making Money (Bloomberg) -- President Joe Biden’s plan to wean U.S. drivers off fossil fuels requires massive investment in public charging stations to power the electric-car revolution. So far, none of the companies that deploy the equipment has figured out how to make a profit.The dilemma boils down to demand, and there’s a certain chicken-and-egg quality to it. Most electric-vehicle drivers charge their cars at home, so many public charging stations get little use. But lots of people still driving gasoline-powered cars won’t consider going electric until they see charging stations widely deployed, for fear that they will run out of juice on the road.Speculators are piling into the industry, convinced that boom times are around the corner, while short sellers and other skeptics warn that some of these companies will go belly-up long before they figure out how to make money. Biden’s plan to spend $15 billion to help create 500,000 more public stations by 2030 is feeding the optimism, with investors flocking to EV charging companies since his election. The risk is that the early movers will get badly burned, potentially souring capital markets on the industry for years to come.“It’s definitely going to require years of investment before they get any return,” said Chris Nelder, who has studied the economics of charging for the RMI energy research institute.Nelder is sure that electric-vehicle charging will eventually be profitable. But when that tipping point will arrive is one of the biggest questions hanging over charging companies.A decade into its existence, the industry is still hunting for a winning business model. Two of the more established names, Blink Charging Co. and Beam Global, made less than $10 million in revenue last year. That didn’t stop investors from sending Blink shares up more than 500% after Biden’s November win, and while it has come well off its peak the company’s market valuation is still north of $1.6 billion. Beam jumped more than 300%, though it has lost about half its value this year.The biggest U.S. company, ChargePoint Holdings Inc., just went public via a special purpose acquisition company, or SPAC. Others including EVgo Services and Volta Industries Inc. are poised to follow.Fueling cars and trucks has always been a low-margin business, with gasoline stations making much of their money from selling snacks, coffee and cigarettes. The business is even tougher when it comes to EVs. Unless they live in dense cities like New York or San Francisco, drivers do the vast majority of charging at home -- their garage is their gas station. They use public chargers infrequently, with most vehicles offering more than enough range to complete daily errands without a topoff. The U.S. Department of Energy estimates that 80% of EV charging happens at home.Another vexing issue is the nature of using parking spots to double as charging locations. If a customer pulls into a space in her apartment complex at 9 p.m. and hooks up to buy a few dollars’ worth of electricity, more often than not, she’ll leave her car there until going to work the next day. No one else can use that charger for the next 10 hours, regardless of when her car is done charging.Then there is the relatively small number of vehicles involved. Americans bought 259,000 new electric cars last year, a record according to BloombergNEF, but it’s still just 2% of total car and truck sales. And of those new EVs, 79% were made by Tesla Inc., which has its own branded network of “superchargers” that can’t be used by any other electric car. General Motors Co. said this week that it signed agreements with seven charging providers to make sure its EV drivers will have places to plug in.Tesla drivers are “close-looped into the Tesla network,” said BNEF analyst Ryan Fisher. “Where is the demand to plug into these other networks? It doesn’t exist.”The Biden administration hopes it can boost some of that demand with the proposed spending, part of its infrastructure plan now before Congress. Some of the money would go toward grants and incentive programs to install chargers, according to a fact sheet from the White House, and some would go toward research into lowering the cost of the chargers themselves.The charging companies are positioning themselves for profitability in different ways.ChargePoint sells stations and offers various degrees of operational support, but doesn’t get paid from the charging itself. A typical client might be a Silicon Valley company that offers its employees free charging at work as a perk. If a particular station gets little use, ChargePoint still gets paid.“I wouldn’t want a driver as a customer, because I think I’d starve to death,” said Pasquale Romano, ChargePoint’s chief executive officer, in an interview. “There’s not a lot of money in electricity.”Other companies, like EVgo, own the chargers they deploy and make money each time they’re used.Blink, meanwhile, takes both approaches at once. The company prefers to own and operate as many of its stations as possible, but if a property owner wants to buy the chargers from Blink outright, that’s fine, too. The biggest priority is locking up good sites in high-demand areas, according to CEO Michael Farkas.“Right now, this is a land grab,” Farkas said in an interview. “For us this is about getting as many locations as we can, and we’ll deal with profitability later.”Volta Industries, which plans to go public in a SPAC deal this year, adds advertising to the mix. Its chargers come with 55-inch digital screens. A grocery store can place chargers in its parking lot and bombard customers with ads for specific products inside.Beam Global offers a self-contained unit with a canopy of solar cells powering a battery and a charger. It doesn’t require digging up the parking lot to install a power line. “You can tell the world you’re driving on sunshine for free,” CEO Desmond Wheatley said in an interview.There’s good reason for Beam to focus on easy installation and self-generated power. The time and cost to install a grid-connected charging station can be significant, often involving construction permits and hooking up to the local utility. The equipment itself can range from less than $2,000 for a slower, basic charger to more than $100,000 for the most powerful models, according to BNEF. Increased production should bring down the hardware costs, but for now, they’re another reason some of the companies struggle to turn a profit.“It’s still early days,” said Colin Rusch, a senior analyst who covers the industry for Oppenheimer & Co. “Like with any early-stage industry, you’ve got to give it some time, until they get to scale.”(Adds GM agreement in 10th 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. U.S. Reuters 210430 10h56m North Carolina again denies permit for Mountain Valley gas pipe extension The North Carolina Department of Environmental Quality (DEQ) again denied Mountain Valley Pipeline's (MVP) request for a water permit for its proposed Southgate natural gas pipeline project from Virginia to North Carolina. The DEQ first denied MVP's request in August 2020. MVP appealed that decision to the U.S. Court of Appeals for the Fourth Circuit, which remanded the case back to the DEQ to "explain why the Department chose denial over conditional certification." Business Reuters 210430 10h51m UPDATE 1-UAW wants EV tax incentives revised to require U.S. assembly The United Auto Workers (UAW) union said Friday it wants tax incentives for electric vehicles (EVs) revised to require U.S. assembly for those vehicles to qualify. The current $7,500 tax incentive does not require EVs to be made in the United States. "The UAW is working with the Biden administration and Congress to make sure that the final legislation extending electric vehicle subsidies are clear that those investments subsidize the jobs of U.S. workers," said UAW Vice President Terry Dittes. World Reuters 210430 10h44m UPDATE 1-U.S. says China has fallen short on 'Phase 1' intellectual property commitments China has fallen short on its commitments to protect American intellectual property in the 'Phase 1' U.S.-China trade deal signed last year, the Biden administration's trade office said on Friday. The U.S. Trade Representative's "Special 301" report https://ustr.gov/sites/default/files/files/reports/2021/2021%20Special%20301%20Report%20(final).pdf on intellectual property said that China had made amended its Patent Law, Copyright Law and Criminal Law last year and published several draft regulatory measures on IP. "However, these steps toward reform require effective implementation and fall short of the full range of fundamental changes needed to improve the IP landscape in China," USTR said. World Bloomberg 210430 10h41m New Peru Poll Shows Castillo’s Lead Over Fujimori Narrowing (Bloomberg) -- Leftist Peruvian presidential candidate Pedro Castillo maintained a shrinking but commanding lead over Keiko Fujimori ahead of the June 6 election, according to a poll released Friday by Datum.The survey, taken April 27-29, shows Castillo with 44% of voter preference versus 34% for former lawmaker Fujimori. A full 11% of voters remain undecided, and 11% plan to cast blank or invalidated ballots.Castillo’s lead over Fujimori narrowed by five points since the last Datum survey conducted April 16-20.Read more: Peru Presidential Favorite Distances Himself From Marxist AlliesIn a sign of how polarized the race is, 49% of those who planned to vote for Castillo said they were doing so because they “reject” Fujimori. Likewise, 59% of those voting for Fujimori said they were doing so because of their dislike of Castillo.In addition, 49% of respondents said they believed Fujimori -- the daughter of jailed former President Alberto Fujimori -- would be an “authoritarian” leader. Some 42% said they thought Castillo would create a leftist government “like Venezuela.”The poll tracks with other surveys that show Castillo with a significant lead.The Datum survey of 1,205 people had a margin of error of +/-2.8%On Thursday, Castillo was forced to suspend a campaign rally in Lima after he said he was diagnosed with a throat infection. His campaign has said he’ll resume activities Friday and meet Fujimori for a debate Saturday.(Updates with context in last paragraph about Castillo’s health)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. Business Bloomberg 210430 10h01m Darktrace Surges 32% After Rushing Smaller IPO to Market (Bloomberg) -- Darktrace Plc soared on its first day of trading after the cybersecurity firm made the surprise decision to rush forward its IPO and cut its valuation by about half.The shares jumped 32% to 330 pence in their first day of trading on Friday. The company raised 165.1 million pounds ($230 million), giving it a market value of about 1.7 billion pounds.Darktrace’s IPO valuation was impacted by British entrepreneur Mike Lynch’s involvement, with investors demanding a discount, a person familiar with the matter said. Lynch, who was an early backer through his investment fund Invoke Capital Partners, is awaiting a verdict in a trial related to a $10 billion deal where he’s facing accusations of fraud. Private equity backers including KKR decided against selling stakes in the offering so they could take part in any upside in the share price, given the IPO priced at a discount, the person said.When Darktrace announced its IPO earlier this month, it set May 5 as the start of trading and expected a valuation as high as $4 billion, a person familiar with the matter had said. A spokesperson for the company declined to comment beyond the IPO filings on Lynch’s impact on the listing or why the launch date was accelerated.Lynch, the founder of Autonomy Corp., is facing charges relating to Autonomy’s more-than $10 billion sale to Hewlett-Packard Co. a decade ago. HP wrote down the vast majority of the deal in 2012 and has alleged that Lynch and his chief financial officer orchestrated an accounting fraud to make Autonomy more attractive in the sale, which both men have denied.Those ties were listed as a potential risk to the company’s reputation and Darktrace warned investors that there was a small chance it could face charges related to hiring former Autonomy executives and taking funds from Invoke. A number of Darktrace’s executives have ties to Autonomy, including Chief Executive Officer Poppy Gustafsson.Stealthy LaunchGustafsson and her team are also a rare example of a women-led technology company going public in London. Joining her on the c-suite are Chief Financial Officer Cathy Graham, Nicole Eagan, chief strategy officer and former co-CEO, and Chief Marketing Officer Emily Orton. PensionBee CEO Romina Savova took the pension-management platform public in London earlier this month.“Darktrace is making a stealthy launch onto the stock market this morning, slinking into publicly listed status to access a new stream of investment,” Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown, said in a note. “As an expert in assessing threats to other firms, it comes as little surprise that the target price was scaled back from expectations, to lower the risk of a disappointing debut following the Deliveroo listing debacle.”London is working hard to get more of its home-grown companies to sell shares in the U.K., as opposed to the U.S. which many tech founders say has a deeper pool of investors who understand their businesses. Darktrace marks the first major company to list in London after Deliveroo Holdings Plc’s disastrous debut, which saw the shares plunge more than 30%.Caution Breaking OutIt indicates “a little bit of caution has broken out amongst London bankers after the shambles of the Deliveroo valuation,” said Michael Hewson, chief market analyst at CMC Markets.Darktrace’s product learns the rhythms of how companies usually operate and uses this to detect anomalies that could indicate they’ve been hacked, a scammer has targeted an employee or that someone is stealing information. The company has said it plans to use the proceeds from the IPO to accelerate new product development, strengthen its balance sheet and improve financial flexibility.Existing shareholders including management and employees sold 21.7 million pounds of stock in the IPO, less than half the original target. No board members or top executives cashed in any shares, according to terms seen by Bloomberg.Jefferies International Ltd., Joh. Berenberg, Gossler & Co. KG and KKR Capital Markets Partners LLP arranged the sale, with Needham & Co. and Piper Sandler & Co. as joint bookrunners.(Updates with information on investor pressure 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. World Bloomberg 210430 09h56m Colombia’s Debt Is Already Trading as Though it Were Junk (Bloomberg) -- Colombia’s dollar bonds are being priced as though they were already junk as investors bet that the government will fail to raise taxes enough for the country to cling onto its investment-grade credit rating.The nation’s international bonds are the worst performers in Latin America since a tax bill was introduced two weeks ago, to widespread opposition. Colombia’s borrowing costs are roughly in line with those of junk-rated nations such as Brazil, Guatemala, Uzbekistan and Azerbaijan, reflecting pessimism that the Andean nation will be able to slash its deficit.“What we have to show markets as a country is that we are capable of solving a situation all the world is facing,” President Ivan Duque said Friday in a radio interview on La FM. The nation needs to reach agreements that will “stabilize finances to guarantee its investment-grade rating.”The peso fell nearly 1% against the dollar Friday, adding to a sell-off that has made it the worst-performing currency in emerging markets this week. The benchmark Colcap stock index dropped for a third-straight trading session. With assets falling, the central bank is widely expected to keep its key rate at a record low of 1.75% when it meets Friday.The Colombian government had sought to raise as much as an average of 2.2% of gross domestic product per year over the next decade through tax rises and curbs on spending. But strong opposition to the bill in congress and from street protesters forced the government to cut many of the key measures to raise revenue.With investors pricing in a high likelihood of a ratings downgrade, the country’s average sovereign bond spread has widened by 20 basis points this month, to 2.31 percentage points over U.S. Treasuries, according to data compiled by JPMorgan. The average risk premium for investment-grade nations is 1.47 percentage points.“Market participants will be watching closely to gauge just how much dilution of the administration’s proposal takes place,” UBS Global Wealth Management economists Alejo Czerwonko and Brennan Azevedo wrote in a note this week. “Savings below 1% of GDP are widely considered to meaningfully increase the chances of rating agencies taking action.”The tax bill hasn’t faced a first debate in congress but it’s already on the ropes with virtually all political parties opposing it, including Duque’s own Democratic Center party. Its opponents object to increasing taxes on the middle class, and parties are disinclined to back painful and unpopular measures ahead of presidential and congressional elections next year.Thousands hit the streets on Wednesday protesting the plan with some demonstrations continuing Thursday, even as the country suffers record numbers of deaths related to the coronavirus.Many Latin American nations are also grappling with deficits that ballooned during the pandemic, but unlike Brazil, Mexico, Chile and Peru, Colombia’s deficit will widen rather than narrow this year, according to forecasts from the International Monetary Fund.Record DeficitThe economy suffered its biggest contraction in history last year, and the government estimates Colombia’s fiscal deficit will widen to more than 9% of GDP this year, from 2.5% in 2019, before the pandemic. Finance Minister Alberto Carrasquilla is talking with lawmakers to save the bill, but many are demanding that it be scrapped entirely.Colombia is currently rated one notch above junk by Fitch Ratings and S&P Global Ratings. Both agencies have said the bill is key for the country to guarantee fiscal sustainability, and S&P has warned that it could act on its negative outlook over the next 12 months if the deterioration of public finances is not reversed.(Adds president’s comment in 3rd paragraph, peso move in fourth)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. Business Yahoo Finance 210430 09h54m Stock market news live updates: Stocks retreat from record highs, Amazon shares hit record high after earnings Stocks fell Friday after a record-setting session a day earlier, with stocks taking a pause after strong earnings results and more encouraging economic data helped fuel the latest leg higher in risk assets. World Reuters 210430 09h50m Italy reports 263 coronavirus deaths on Friday, 13,446 new cases Italy reported 263 coronavirus-related deaths on Friday against 288 the day before, the health ministry said, while the daily tally of new infections fell to 13,446 from 14,320. Italy has registered 120,807 deaths linked to COVID-19 since its outbreak emerged in February last year, the second-highest toll in Europe after Britain and the seventh-highest in the world. The total number of intensive care patients fell to 2,583 from a previous 2,640. Business Bloomberg 210430 09h50m Fueling Endless Rally Is Raft of Real-Time Reopening Data (Bloomberg) -- Amusement parks tickets. Business-class plane reservations. Drive-thru traffic at McDonald’s.Now more than ever, investors are leaning on real-time data to buttress their bullishness on the U.S. stock market. They’re sifting through an ever-widening array of snapshots at a time when some government figures are being distorted by year-ago comparisons to an economy hobbled by a recession.Of course, no one needs esoteric datasets to see that the U.S. -- once the epicenter of the pandemic -- is on the mend, notes Paul Hickey, co-founder of Bespoke Investment Group. Deaths are down, vaccinations are up and consumers are spending again. But with the snap-back recovery in the books and stocks perched at the highest valuations in two decades, the hunt is on for indicators to fine-tune the bull case -- or uncover an early warning signal to get out before being blindsided by a crash.The following is a rundown of what market pros say they’re watching.Planes, Trains and Job PostingsSit Investment Associates’s Bryce Doty is scouring travel websites. He checks out destination hotels, resorts, Disney theme parks -- anything to gauge mid-summer availabilities. If he’s not looking at those sites, he sees how long it’s taking ships to unload goods on the West Coast, where there are backlogs. Shipments of modal rail cars are another metric -- it’s a proxy for how many retail goods are on the move across the country. All have helped the Minneapolis-based senior portfolio manager frame his investment strategy over the past year.Doty has also looked at employment ads and the ratio of part-time versus full-time positions. Recently, he’s seen the shift to permanent positions “explode.” He’s kept casual tabs on help-wanted signs at stores. “We are constantly on the lookout for these types of real-time indicators.”JJ Kinahan, chief market strategist at TD Ameritrade, monitors the percentage of overall flight bookings made up by business travelers. That’s because the number of vacationers could drop once the back-to-school season comes around, whereas business travelers could be year-round.“To me, that’s going to be the ultimate sign that we’ve turned the corner,” he said in an interview.Getting Back to Pre-Pandemic RoutinesThe number of per-day passengers through TSA checkpoints has increased, averaging 1.4 million over the past month. Though that’s still down from 2019 levels, the numbers have been steadily climbing -- they averaged about 850,000 in December, for instance, when many traveled for the holidays. Compared to 2019, daily restaurant bookings through OpenTable have risen since the start of the year, though they haven’t yet fully recovered.To Jeff Schulze at ClearBridge Investments, such data is useful because it allows him to see the extent to which consumers are getting back to pre-pandemic routines. The investment strategist says everything from restaurant reservations and the number of passengers boarding planes to Google’s mobility data gives a glimpse into how people are engaging with the services side of the economy. Investors will be beholden to these statistics as long as the virus remains a threat to the economy -- but a drop in cases will be a catalyst for growth.“The data continues to surprise economists, and I think if this trend can continue, you’re going to continue to see a market that goes higher into the summer,” Schulze said. “It’s trending very much in the right direction, mobility measures are moving in the right direction.”More Drive-Thrus, Less LoungewearChris O’Keefe, managing director at Logan Capital Management, says he’s analyzing announcements from consumer discretionary companies including McDonald’s and Nike to gauge lifestyle changes as people become more comfortable leaving their homes.“The pent-up demand is phenomenal, everyone wants to get out there and go out to eat and go travel,” he said. “You can feel the jail break as people are getting out there and doing more.”For McDonald’s, he’s looking at drive-thru traffic, which he expects to increase as people go back to work, as well as the number of diners inside its restaurants. “People are still slow to move to that but the trend is accelerating,” O’Keefe said.He’s also watching Nike closely for signs that customers are buying more traditional gym clothing and shoes -- and less loungewear.With cases falling, cyclical industries -- including travel, hotel and airline stocks -- could “run big,” according to Fundstrat Global Advisors’s Tom Lee. Small-cap stocks as well as sectors like energy could also benefit. “This is a significant bullish equity development,” he wrote in a recent note.Taking CreditCredit-card use is rebounding strongly, too. For the week ending April 24, total card spending based on Bank of America credit and debit cards was up 45% year over year and 20% on a two-year basis, the bank’s economists Michelle Meyer and Anna Zhou wrote in a recent note.That data is useful in gauging consumer activity, said Tom Martin, senior portfolio manager at GLOBALT Investments. Though the spending stats aren’t the sole data point he and his team consider, they do have an influence on their decisions.“People using credit cards -- there’s just so much more of that happening,” he said. “People are putting stuff on their credit cards -- you have a good base of data from that.”Traditional IndicatorsMore traditional economic indicators also point to a pick-up in the economic rebound. U.S. economic growth accelerated in the first three months of the year as personal consumption -- the biggest part of the economy -- surged an annualized 10.7%, the second-fastest pace since the 1960s.Data out Friday showed personal incomes soared in March by the most in monthly records back to 1946, powered by the latest round of pandemic-relief payments.Applications for regular state jobless benefits are hovering at a 13-month low, and U.S. retail sales posted the second-largest monthly advance on record last month as stimulus checks and a broader reopening of the economy fueled consumer spending.Meantime, a slew of factory surveys point to a rapidly improving manufacturing sector, including the Institute for Supply Management’s factory index which jumped to its highest level in 37 years in March.“We’ve seen very substantial progress in the vaccines in many places, we see economies reopening, we see how much pent-up demand there is,” Randy Frederick, vice president of trading and derivatives for Charles Schwab, said by phone. “That’s a good thing and those things are relevant -- and what we’ve seen the market do is extend its timeline for moving ahead of the economy. The market always moves ahead of the economy.”(Updates with personal income figure in “Traditional Indicators” section.)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. Business Bloomberg 210430 09h47m Stocks Decline From All-Time Highs; Dollar Climbs: Markets Wrap (Bloomberg) -- Stocks dropped from all-time highs as traders assessed corporate earnings, economic data showing potential inflation pressures and hawkish remarks from a Federal Reserve official. The dollar rose.The S&P 500 pared its monthly gains. Twitter Inc. sank as the social media company posted a sluggish start to the year in its advertising business, while Amazon.com Inc. rallied on a jump in sales. Despite living up to Wall Street’s profit expectations, Chevron Corp. slid after disappointing investors who were anticipating a revival of buybacks.Read: Big Oil Is Boosting ETF Returns and ESG Funds Are No ExceptionSigns of excess risk taking in financial markets show it’s time for the U.S. central bank to start debating a reduction in its massive bond purchases, said Robert Kaplan, president of the Dallas Federal Reserve, breaking ranks with Chairman Jerome Powell. Kaplan is not a voter this year on the policy-setting Federal Open Market Committee.Data Friday showed U.S. personal incomes soared in March by the most in monthly records back to 1946, powered by a third round of pandemic-relief checks. A key measure of consumer prices, known as the personal consumption expenditure price index, that the Fed officially uses for its target rose 2.3% in March from a year earlier, the biggest gain since 2018. Meanwhile, a gauge of consumer sentiment continued to strengthen in late April.With the S&P 500 poised to end the first four months of 2021 with a rally of more than 10%, the adage of “sell in May and go away” may be on many investors’ minds. However, JPMorgan Chase & Co. strategists urged traders to get ready for a revival of the reflation trade as the economic reopening gathers pace in coming months. Credit Suisse Group AG’s Jonathan Golub raised his year-end forecast for the S&P 500, citing a “red-hot economy fueling earnings.”“Are we at a point where there’s further upside to the market or are we at a point where we need to think about the cadence of returns going forward being more narrow or smaller?” said Ralph Bassett, head of North American equities at Aberdeen Standard Investments. “The setup is very good, but with multiples where they are, the upside risks are just really becoming less likely at this stage.”Technology stocks are poised to gain support from relatively stable yields for U.S. inflation-indexed debt, according to Andrew Garthwaite, a global strategist at Credit Suisse. He compared a relative-strength gauge for the group with the yield on 10-year Treasury Inflation Protected Securities, or TIPS, in a report Thursday. The S&P 500 Information Technology Index’s ratio to the benchmark gauge of American equities set this year’s low in March, and then climbed as demand for the debt caused yields to fall.“We do not expect a meaningful rise in the TIPS yield,” Garthwaite wrote, citing U.S. monetary policy and other influences.These are some of the main moves in markets:StocksThe S&P 500 fell 0.6% as of 11:45 a.m. New York timeThe Nasdaq 100 fell 0.4%The Dow Jones Industrial Average fell 0.7%The Stoxx Europe 600 fell 0.3%The MSCI World index fell 0.8%CurrenciesThe Bloomberg Dollar Spot Index rose 0.6%The euro fell 0.7% to $1.2034The Japanese yen fell 0.3% to 109.30 per dollarBondsThe yield on 10-year Treasuries was little changed at 1.63%Germany’s 10-year yield declined one basis point to -0.20%Britain’s 10-year yield was little changed at 0.84%CommoditiesWest Texas Intermediate crude fell 2.4% to $63 a barrelGold futures were little changedFor 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. Business Yahoo Finance 210430 09h08m McDonald's stock spikes to new record after blockbuster Q1 earnings Here's what is fueling a surge in demand for shares of McDonald's. Business Reuters 210430 09h06m EMERGING MARKETS-Brazil's real plunges as unemployment soars, set for best month in 2021 * Real jumps 4% in April, best month since November * Unemployment in Brazil soars to record highs * Mexican economy grows 0.4% in 1st quarter, beats expectations By Shashank Nayar April 30 (Reuters) - Brazil's real dropped on Friday as unemployment jumped to record levels and a spike in coronavirus deaths dented sentiment, although expectations of interest rate hikes and a weak dollar led the currency to gain most among its Latin American peers in April. Brazil on Thursday became the second country to pass 400,000 COVID-19 deaths after the United States, and experts warned the daily toll could remain high for several months due to slow vaccinations and loosening social restrictions. "The COVID outbreaks in India and Brazil and the recent slip in global mobility might inject some caution or pause the risk rally, especially if data starts to miss expectations," said Mark McCormick, global head of FX strategy at TD Securities. Business Bloomberg 210430 09h02m Stocks Decline Amid Earnings, Economic Reports: Markets Wrap (Bloomberg) -- Stocks dropped from all-time highs as traders assessed corporate earnings and economic data showing potential inflation pressures. The dollar rose.The S&P 500 pared its monthly gains. Twitter Inc. sank as the social media company posted a sluggish start to the year in its advertising business, while Amazon.com Inc. rallied on a jump in sales. Despite living up to Wall Street’s profit expectations, Chevron Corp. slid after disappointing investors who were anticipating a revival of buybacks.Read: Big Oil Is Boosting ETF Returns and ESG Funds Are No ExceptionData Friday showed U.S. personal incomes soared in March by the most in monthly records back to 1946, powered by a third round of pandemic-relief checks. A key measure of consumer prices, known as the personal consumption expenditure price index, that the Federal Reserve officially uses for its target rose 2.3% in March from a year earlier, the biggest gain since 2018. Meanwhile, a gauge of consumer sentiment continued to strengthen in late April.With the S&P 500 poised to end the first four months of 2021 with a rally of more than 10%, the adage of “sell in May and go away” may be on many investors’ minds. However, JPMorgan Chase & Co. strategists urged traders to get ready for a revival of the reflation trade as the economic reopening gathers pace in coming months. Credit Suisse Group AG’s Jonathan Golub raised his year-end forecast for the S&P 500, citing a “red-hot economy fueling earnings.”“Are we at a point where there’s further upside to the market or are we at a point where we need to think about the cadence of returns going forward being more narrow or smaller?” said Ralph Bassett, head of North American equities at Aberdeen Standard Investments. “The setup is very good, but with multiples where they are, the upside risks are just really becoming less likely at this stage.”Technology stocks are poised to gain support from relatively stable yields for U.S. inflation-indexed debt, according to Andrew Garthwaite, a global strategist at Credit Suisse Group AG. He compared a relative-strength gauge for the group with the yield on 10-year Treasury Inflation Protected Securities, or TIPS, in a report Thursday. The S&P 500 Information Technology Index’s ratio to the benchmark gauge of American equities set this year’s low in March, and then climbed as demand for the debt caused yields to fall.“We do not expect a meaningful rise in the TIPS yield,” Garthwaite wrote, citing U.S. monetary policy and other influences.These are some of the main moves in markets:StocksThe S&P 500 fell 0.7% as of 11:01 a.m. New York timeThe Nasdaq 100 fell 0.5%The Dow Jones Industrial Average fell 0.7%The Stoxx Europe 600 was little changedThe MSCI World index fell 0.8%CurrenciesThe Bloomberg Dollar Spot Index rose 0.6%The euro fell 0.7% to $1.2037The British pound fell 0.7% to $1.3844The Japanese yen fell 0.4% to 109.33 per dollarBondsThe yield on 10-year Treasuries was little changed at 1.63%Germany’s 10-year yield was little changed at -0.20%Britain’s 10-year yield was little changed at 0.84%CommoditiesWest Texas Intermediate crude fell 2.6% to $63 a barrelGold futures rose 0.1% to $1,771 an ounceFor 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. Business Reuters 210430 09h02m Twitter may struggle to replicate bumper 2020 growth: analysts Twitter Inc will struggle to replicate a bumper 2020 dominated by the U.S. political battles, civil unrest and the COVID-19 crisis as people venture out following vaccine rollouts, Wall Street analysts said on Friday. The lifting of restrictions as people get vaccinated has largely seen benefiting other digital ad firms such as Facebook Inc and Alphabet Inc's Google whose stocks soared after reporting blockbuster results this week. Shares sank more than 12% on Friday after the social media company reported first-quarter revenue and user numbers mostly in line with analyst estimates and warned the current quarter could be its worse as it eyed a weaker 2021. Business Yahoo Finance 210430 08h55m Amazon shares hit record high after blowout earnings results Amazon shares reached a record high after reporting first-quarter results and guidance that blew past expectations. Business Bloomberg 210430 08h55m Canadian Output on Cusp of Full Recovery After 11th Monthly Gain (Bloomberg) -- Canada’s economy continued its run of surprising strength at the start of the year, validating expectations that activity will soon return to pre-pandemic levels.Gross domestic product grew 0.4% in February, Statistics Canada reported Friday in Ottawa. A preliminary estimate shows momentum kept up in March with output expanding 0.9%, which would be the 11th-straight monthly gain in GDP.The numbers highlight how well the nation’s economy handled successive waves of lockdowns to contain the spread of Covid-19, a resilience that’s fueling a strong rebound in 2021 after the nation’s sharpest downturn in the post-World War II era. At this pace, output should return to pre-pandemic levels by the second half of this year -- even though lingering effects of the crisis will leave Canada with some slack into 2022.“Canada’s economy remains among the most resilient major economies in the world in the face of recurring Covid-19 risks,” Derek Holt, an economist at Bank of Nova Scotia, said in a report to investors. The 11 straight months of gains puts Canada “in a relatively exclusive club” that includes Australia and the U.S.Growth in the first quarter came in at about the 7% annualized pace anticipated by the Bank of Canada, which last week accelerated the timetable for a possible interest-rate increase and further pared its bond purchases amid the stronger-than-expected recovery. The central bank has forecast growth of 6.5% this year, after a 5.4% contraction in 2020.Output in March was about 1.3% below monthly levels recorded in February 2020. On a quarterly basis, GDP is also within 1.5% of what it was pre-pandemic.To be sure, gains are likely to slow after the country entered a third wave of nationwide lockdowns -- the effects of which weren’t yet felt in March. But Canada’s economy has breezed through restrictions all winter.“This print will comfort the Bank of Canada in its decision to begin and eventually extend the tapering of its quantitative easing purchases” Dominique Lapointe, an economist at Laurentian Bank Securities in Montreal, said by email.In February, retailers led gains, with activity for the sector up 4.5% for the month. Sectors that have been hit hardest from shutdowns also showed some strength, as restrictions were temporarily lifted during the month. For March, Statistics Canada said manufacturing, retail trade, and finance and insurance contributed to the gain. Oil and gas production fell in February, following five months of consecutive gains.(Updates with economist comment in 4th paragraph. A previous version corrected the chart to show output within 1.3% of pre-pandemic levels.)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. Business Reuters 210430 07h58m Sustainable fund inflows hit record high in first-quarter: Morningstar Record demand to invest in sustainable investment funds saw the sector's total assets rise 19% to a fresh high of nearly $2 trillion in the first quarter, data from industry tracker Morningstar showed. Morningstar said its data captures all the funds which claim to have a sustainability objective or which use ESG criteria when deciding which assets to buy and sell. Business Reuters 210430 07h57m TREASURIES-Yields dip as investors buy bonds for month-end “Right now it’s month-end rebalancing," said Ian Lyngen, head of U.S. rates strategy at BMO Capital Markets in New York, noting the next major market catalyst will be next Friday's jobs report for April. Yields have held under one-year highs reached last month as market participants wait on more indications that inflation will rise as economic growth accelerates. Business Bloomberg 210430 07h55m Federer-Backed Shoemaker Prepares for U.S. IPO, Reuters Says (Bloomberg) -- A Swiss sports-shoe maker backed by tennis great Roger Federer is preparing for a U.S. initial public offering as early as the fall, Reuters reported, citing unidentified people close to the matter.On AG is working with JPMorgan Chase & Co., Goldman Sachs Group Inc. and Morgan Stanley on the deal, which could value the firm at $4 billion to $6 billion, Reuters said. The company is expected to announce the offering in September or October, according to the report.On didn’t immediately respond to a request for comment.Founded in 2010, touts a proprietary cushioning technology as its selling point.. Its running shoes have hollow tube-like attachments made of rubber or foam on the outsoles that promise runners a soft landing, while locking firm when taking off -- a patented technology called Cloudtec.Federer became a shareholder of the Zurich-based company in 2019, and last year unveiled a shoe he helped design. “The Roger” is an all-white tennis-inspired sneaker made with faux leather and Cloudtec instead of rubber soles.(Updates with information about the company from 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. World Reuters 210430 07h52m WHO expects assessment of Moderna and two Chinese vaccines by end of next week The World Health Organization expects to release its assessments for emergency use listing of the two main Chinese vaccines for COVID-19 as well as the Moderna shot by the end of next week, WHO Assistant Director-General Mariangela Simao said on Friday. Simao said the WHO's independent panel was assessing the Moderna vaccine and a vaccine from China's Sinopharm on Friday and was due to look at China's other main vaccine, made by Sinovac Biotech, next week. World Bloomberg 210430 07h51m Peru Presidential Favorite to Resume Campaign After Health Scare (Bloomberg) -- Peru’s leftist presidential front-runner Pedro Castillo says he’ll resume his campaign on Friday after a throat infection forced him to cancel a rally in in Lima.Castillo pulled out of the event on Thursday, and checked into a clinic.Castillo’s wide lead in polls, his radical agenda and the backing of the Marxist Free Peru party, triggered a sell-off in Peru’s bonds and currency earlier this month. The country’s dollar-denominated bonds, due in 2031 and 2051, were little changed in early U.S. trading Friday, holding onto a weekly gain.Late Thursday, Castillo said on Twitter that he had been diagnosed with an infection and that he would resume campaigning and debate his rival Keiko Fujimori on Saturday.“Nothing can stop us on our march, with the people, toward a horizon of justice and liberty,” he wrote.Polls show Castillo, 51, is the clear front-runner in the June 6 presidential runoff against Fujimori.Read More: Peru Presidential Favorite Distances Himself From Marxist AlliesA former school teacher and union organizer, Castillo tested positive for Covid-19 in January -- during the first round of the presidential election -- and was forced to suspend campaign activities for a month.(Updates throughout and details on bond activity in 3rd 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. World Reuters 210430 07h50m EU's Vestager says solution over Alitalia replacement possible EU antitrust chief Margrethe Vestager said on Friday that she believed that a solution regarding Italy's plan to set up a new airline to replace cash-strapped Alitalia can be found, stressing that the new carrier should be independent from the old one. Talks between the European Commission and the Italian government have foundered amid disagreement over its successor ceding half of Alitalia's slots at Milan Linate airport, the old brand and the loyalty programme. "Investments in ITA must have market conformity, so investments by the Italian state would give a return that would satisfy private investors," she said, adding that she was waiting for a new proposal from Rome. Business Reuters 210430 07h08m UPDATE 1-Canadian economy seen growing 0.9% in March, up 0.4% in Feb Canada's economy likely grew by 0.9% in March from February, buoyed by strength in manufacturing, retail trade and finance, Statistics Canada said in a preliminary estimate on Friday, putting economic activity within 1% of pre-pandemic levels. Statscan also said Canada's economy expanded for the 10th consecutive month in February, rising 0.4% on a rebound in retail trade, though goods-producing industries contracted for the first time since April 2020. First quarter annualized GDP most likely rose 6.5%, Statscan said in a preliminary estimate. Business Bloomberg 210430 07h05m Exxon, Chevron Garner Huge Cash-Flow Boosts on Crude’s Rally (Bloomberg) -- Exxon Mobil Corp. and Chevron Corp. generated the most free cash flow in more than a year as economies around the world claw their way out of lockdowns, boosting energy demand.Rallying crude prices and demand for chemicals used in plastics more than offset losses from refining oil as the largest North American explorers disclosed first-quarter results on Friday.Despite living up to Wall Street’s profit expectations, Chevron shares dropped as much as 3% after disappointing investors who were anticipating a revival of share buybacks. Exxon’s deep refining losses were bunted by chemical profits, leading to a more muted 0.5% stock decline.All the supermajors are making money again after crude’s 30% year-to-date rally to more than $65 a barrel, buoyed by rising energy demand as economies emerge from the pandemic and OPEC holds the line on big supply increases. BP Plc, Royal Dutch Shell Plc and Total SE all preceded their U.S. peers with bigger-than-expected profits.Exxon’s roughly $6 billion in free cash flow was more than enough to cover its mammoth dividend, the first time the oil giant has been able to do that since late 2018. Chevron posted $3.4 billion in first-quarter cash flow, enough to fund its recently increased dividend, which is a closely watched metric for the oil supermajors.For both companies, a key driver of the cash-flow increases was steep spending cuts as less-risky endeavors such as shale drilling were favored over costlier mega-projects. Exxon cut capital expenditures by more than half while Chevron’s was down 43% from a year ago. Neither have plans to boost spending in light of higher oil prices, a sign that discipline is holding for now.Exxon earned 64 cents a share in the first quarter, beating the 61-cent average estimate from analysts in a Bloomberg survey. The oil giant’s exploration and drilling division drove most of the gains but it also received a substantial tailwind from higher chemicals prices that helped offset losses incurred during the deadly February storm in Texas.Exxon’s turnaround from last year’s unprecedented string of losses will help restore investor faith in its ability to maintain and even grow the S&P’s third-largest dividend, the cornerstone of Chief Executive Officer Darren Woods’ pitch to Wall Street. Unlike European rivals Shell and BP, Exxon didn’t cut payouts last year, but the decision came at a cost: borrowings increased 44% to almost $68 billion. Exxon reduced debt by around $4 billion this quarter.What Bloomberg Intelligence SaysChevron continues to make progress in restoring its balance sheet and may be in a position to restart share buybacks by 2H, if oil prices remain near current levels.-- Fernando Valle, BI analystRead the full report here.Chevron posted adjusted per-share profit of 90 cents, according to a statement, matching the average of analysts’ forecasts. Results across the sector signal the worst may be over from the dual menace of a worldwide glut and demand-killing Covid-19 lockdowns.Amid the brightening outlook, significant challenges remain. Chevron’s U.S. refining network lost money for the third time in four quarters, while its overseas fuel-making plants slashed crude-processing by 16% to cope with anemic demand for transportation fuels.Both companies cited the negative impacts of the deadly winter storm that afflicted Texas in mid-February.Chevron wants to begin buying back shares but declined to provide a time line, reiterating the position announced in March.“As we look forward, we expect to begin the repurchase of shares when we’re confident that we can sustain a buyback program for multiple years through the oil price cycle,” Chief Financial Officer Pierre Breber said in remarks prepared for a conference call with analysts later this morning.(Updates with shares 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. World Reuters 210430 06h58m UPDATE 1-Norway to speed up first COVID-19 jabs by delaying second dose Norway said on Friday it will extend the time between first and second doses of COVID-19 vaccines to 12 from six weeks for most adults under the age of 65 in order to reach its first vaccination target sooner than planned. The decision could allow all adults in Norway to receive a first jab by July 25 the Institute of Public Health (FHI) and health ministry said in a statement. The extension relates to both the Pfizer-BioNTech and Moderna vaccines, which are the only ones currently used in Norway. Business Bloomberg 210430 06h55m U.S. Personal Incomes Soar by Most on Record on Fiscal Stimulus (Bloomberg) -- U.S. personal incomes soared in March by the most in monthly records back to 1946, powered by a third round of pandemic-relief checks that also sparked a sharp gain in spending.The 21.1% surge in incomes followed a 7% decline in February, Commerce Department figures showed Friday. Purchases of goods and services, meanwhile, increased 4.2% last month, the most since June.The increase in personal spending and incomes provides the economy a solid hand off heading into the second quarter after a robust pace of growth at the start of the year.Economists projected a 20.3% jump in incomes and a 4.1% gain in personal outlays, according the Bloomberg survey medians.The March data showed transfer receipts that include stimulus checks and unemployment aid nearly doubled from a month earlier to nearly $8.2 trillion. Wages, meanwhile, rose modestly in March.Inflation-adjusted personal spending increased 3.6% in March after a 1.2% drop a month earlier. Goods outlays climbed 7.3%, while spending on services rose 1.7%.The personal savings rate jumped to 27.6% from 13.9% in February. Disposable income, which exclude taxes and are adjusted for inflation surged 23% in March.A separate report on Thursday showed that gross domestic product expanded at a 6.4% annualized rate in the first quarter, driven by the second-fastest pace of personal consumption since the 1960s.With spending on the rise, more cash in people’s bank accounts and vaccinations driving reopenings, economic growth is poised to further accelerate in the coming months.Inflation MetricsThe agency’s key measure of consumer prices, known as the personal consumption expenditure price index, that the Federal Reserve officially uses for its target rose 2.3% in March from a year earlier, the biggest gain since 2018. The so-called core PCE price index, which excludes volatile food and energy costs, climbed 1.8% after a 1.4% gain in February.Inflation metrics are being temporarily impacted by so-called “base effects.” Year-over-year increases in the price metrics appear large because they are being compared to the very weak inflation prints seen at the start of the pandemic.Inflation has been a contentious topic among economists, lawmakers and Wall Street, especially in the wake of the latest stimulus package as well as Biden’s two infrastructure proposals that would total about $4 trillion.Fed officials anticipate that any surge in prices will prove temporary, but others point out that pent-up demand, rising materials costs and more federal spending could lead to sustained price pressures.Speaking after the latest Federal Open Market Committee meeting on Wednesday, Fed Chair Jerome Powell noted that 12-month measures of inflation are likely to move “well above” 2% over the next few months, but the effects will “disappear” in the months after April and May.“During this time of reopening, we are likely to see some upward pressure on prices,” Powell said. “An episode of one-time price increases, as the economy reopens, is not the same thing as -- and is not likely to lead to persistently higher year-over-year inflation into the future -- inflation at levels that are not consistent with our goal of 2% inflation over time.”(Adds graphic)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. Business Bloomberg 210430 06h54m Credit Suisse’s New Chairman to Review Strategic Options (Bloomberg) -- Credit Suisse Group AG Chairman Antonio Horta-Osorio said he plans a thorough assessment of the bank’s “strategic options” after the twin hits from the collapse of Archegos Capital Management and Greensill Capital eroded confidence.While he backed Chief Executive Officer Thomas Gottstein at the bank’s annual general meeting, the new chairman left little doubt about his appetite for change. The recent missteps at the Swiss lender, he said, went beyond any crises he had lived through over three-and-a-half decades working at banks.“We will take the time required for an in-depth assessment of the bank’s strategic options,” said Horta-Osorio, who succeeded Urs Rohner on Friday. “Then we will decide on a course of action and closely oversee the execution.”The comments are the clearest indication yet that the former head of Lloyds Banking Group Plc is planning to take a hands-on approach in his new role. Analysts and executives have suggested his options include reducing capital allocated to the investment bank; selling parts of the business to deepen its focus on wealth management; acquiescing to an acquirer; or merging with its larger neighbor in Zurich, UBS Group AG.During the meeting, both CEO Gottstein and outgoing chairman Rohner apologized for the recent scandals, with Gottstein saying they’d “left their mark” on him. He pledged to lead the company into “calmer waters.” That came after yet another senior departure, after the bank said risk committee head Andreas Gottschling would be leaving the board.The CEO is battling to rescue his short tenure after Credit Suisse was hit harder than any other competitor by the collapse of Archegos, the family office of U.S. investor Bill Hwang. The timing of the blowup could hardly have been worse, coming just weeks after Credit Suisse found itself at the center of the Greensill Capital scandal, when it was forced to suspend investment funds.The missteps were even more painful because other lenders to Archegos including Deutsche Bank AG managed to avoid losses altogether. The German rival had been known for lapses in controls until a restructuring two years ago. As part of that plan, it quit most equities trading and is in the process of exiting the prime brokerage business that caters to hedge funds.Credit Suisse has said it plans a sweeping overhaul of its prime services at the center of the Archegos losses, including slashing lending to such clients by a third. Gottstein has also signaled he’s considering further separating the asset-management unit from the rest of the bank after the Greensill Capital collapse.Rohner, who had largely deflected shareholder criticism of his role, acknowledged that the recent weeks “cast a shadow” over the bank.“We’ve disappointed not just our clients but also our shareholders, and not for the first time unfortunately,” Rohner said. “I offer my apologies for this.”In the run up to Friday’s annual general meeting, influential shareholders including Norway’s sovereign wealth fund and Harris Associates had heaped pressure on the board by calling for the removal of Gottschling and other prominent board members, including lead independent director and Roche Holding AG CEO Severin Schwan.The twin debacles of Archegos and Greensill -- while sparing Gottstein -- caused tumult across Credit Suisse’s senior management. Investment banking head Brian Chin and Chief Risk Officer Lara Warner were among the highest-profile casualties, while the bank’s head of equities and co-heads of prime brokerage are also being replaced.Horta-Osorio, who cut thousands of jobs and billions of pounds in costs during a decade at Lloyds, said that apart from strategy, he also wants to focus risk management and the bank’s culture in coming months.The new position marks a return to investment banking for the Portuguese banker, after 15 years focused on retail. Before joining Lloyds, he ran Banco Santander SA’s British unit, as well as spending time in the U.S., Portugal and Brazil for various lenders.“I have personally worked at and led several banks in different countries and have lived through many crises,” he said. “What has happened with Credit Suisse over the last eight weeks, with the U.S.-based hedge fund and the supply chain finance funds matters, certainly goes beyond that.”(Updates with strategic options in fourth paragraph, Deutsche Bank comparison in seventh, prime brokerage overhaul in eighth.)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. Business Reuters 210430 06h50m U.S. labor costs accelerate in the first quarter U.S. labor costs increased more than expected in the first quarter as wage growth picked up, further evidence that inflation will push higher this year as the economy reopens. The Employment Cost Index, the broadest measure of labor costs, jumped 0.9% last quarter after gaining 0.7% in the October-December quarter. The ECI is widely viewed by policymakers and economists as one of the better measures of labor market slack and a predictor of core inflation as it adjusts for composition and job quality changes. Business Bloomberg 210430 06h49m Oil Slumps With Recent Demand-Led Rally Taking a Breather (Bloomberg) -- Oil declined as a recent rally in equities paused and the dollar firmed.Futures in New York dropped 2.3% on Friday as raw materials cooled from a scorching rally, while the dollar’s gain made commodities priced in the currency less attractive. Prices remain on track for a weekly gain after topping $65 a barrel on Thursday for the first time since mid-March.A resurgent coronavirus, most notably in India, is spurring some near-term caution over the demand picture. But the prospects for higher fuel demand in locations including the U.S., China and the U.K. continue to brighten the broader outlook with traders betting on a continued reopening of the global economy.Travel across China is expected to pick up over an extended Labor Day holiday. Major U.S. cities are moving to fully reopen and much of Wall Street remains bullish about consumption over the coming months. But that wasn’t enough to stop crude closing out the month with a whimper.“There’s likely some profit-taking ahead of a long weekend in the U.K. and concern over Indian demand,” said Giovanni Staunovo, commodity analyst at UBS Group AG.The short-term risks to the demand outlook have also been showing up in gauges of market health. The structure of the Middle Eastern Dubai benchmark flipped to a slight contango on Thursday, an indication that market tightness may be easing. Backwardation in the prompt time-spread for Brent crude has also narrowed this week.See also: Pimco Says Commodity Rally Reveals Shortages of Vital MaterialsCommodities across the board have rallied in recent sessions, driven by optimism on the recovery in key economies and tightening supplies of raw materials. That’s pushed the Bloomberg Commodity Spot Index to the highest level since 2012 this week.“This week saw an avalanche of strong data and reassuring developments in the U.S., but that may have buried the rising global risk of more transmissible Covid variants,” said Vandana Hari, the founder of energy consultant Vanda Insights in Singapore. “At six-week highs, crude was ripe for a breather.”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. Business Bloomberg 210430 06h00m Irrational World of Distressed Debt Leaves $15 Billion Idle (Bloomberg) -- It was a flashpoint in the world of distressed investing: Sanjeev Gupta’s infamous metals empire was falling apart as Greensill Capital imploded.As turnaround specialists sought to grab debt of one of his key assets on the cheap, a single U.S private-equity firm swooped in to buy up the lion’s share -- at full price.While the supply-chain saga has sparked a lobbying scandal in the U.K. political establishment, for troubled credit creditors it shows the everyday challenges of deploying the $15 billion lying idle in distressed funds. Thanks to a central bank-fueled financing bonanza, even borrowers on their knees have leverage over the big-guns of high finance.With developed economies recovering, deals are rare and hard-won. Faced with vanishing ways to profit from distress, once-adventurous traders are joining banks in the loan market or competing with insurers buying debt of publicly-rated companies.Industry practitioners are taking a glass half-full view on all this, but there’s no question the distressed debt community is downsizing lofty ambitions forged in the pandemic downturn.“The market is irrational,” said Galia Velimukhametova, who manages Pictet Asset Management’s $400 million Distressed & Special Situations Fund. “The opportunities’ set has shrunk -- but you can still cherry pick and position for when the euphoria will settle.”The existential challenge distressed debt investors face may not be new after a decade of easy-money policies that encouraged companies to refinance debt at reduced costs. But the swift rebound from the depths of the pandemic has taken many by surprise.Stimulus-inspired growth has pushed global default rates back to 2018 levels and the number of traded distressed bonds to pre-pandemic levels.“We are now bearish on distressed, as the landscape may prove challenging for capital deployment given the substantial decline in defaults and levels of outstanding distressed debt,” wrote Jens Foehrenbach, chief investment officer of Man FRM, in a report published on Thursday.Industry players point to opportunities for those willing to dig a little deeper. Some are lending to small to mid-cap borrowers, filling a void left by retreating banks.Others are crowding into junk bonds, joining hordes of yield-starved investors. Returns on speculative-grade corporate debt, at about 2.5% so far this year, pale in comparison to the gains distressed debt investors are used to.For example, when German luxury retailer Douglas GmbH refinanced $2.8 billion dollar equivalent of debt last month, it attracted significant demand from distressed debt investors and private credit funds, according to people familiar with the deal.“There has definitely been a lot of money raised within credit opportunities strategies which is also flowing into selected public high-yield transactions right now,” said Murad Khaled, head of EMEA leveraged finance capital markets at Bank of America Corp.Read More: German Luxury Retailer Douglas Signs $2.8 Billion Rescue Deal‘More Niche’When he’s not buying baseball-card companies, Mudrick Capital Management founder Jason Mudrick is scouring the $3 trillion market for leveraged credit in North America, where he’s been helping finance leveraged buyouts for smaller companies.Read more: A Baseball Card SPAC Shows Why Distressed Investing Is So Hard“Just because the largest distressed investors can’t find anything to do doesn’t mean there’s not a lot going on -- there’s just not a lot going on where they’re looking,” Mudrick said. “The more niche parts of the market are definitively presenting more lucrative opportunities.”He’s actually expanding in Europe with the takeover of a credit hedge fund previously run by CVC Credit Partners, and will announce a new hire in the region in the next few months.There may even be chances left to jump into Gupta’s sprawling debt complex, with his Australian businesses seeking new loans.Among other targets traders are eyeing up: Abu Dhabi-based defaulted healthcare group NMC Health Plc. They’re circling $6.4 billion of debt tied to NMC Health’s administration ahead of a deadline in one month for creditors to back a restructuring plan, according to people with knowledge of the situation.“European funds are nibbling into emerging markets while they wait for another two or three quarters for European companies to show the real picture,” said Pictet’s Velimukhametova.End of EuphoriaThe adversity that distressed funds long for may ironically be the result of the European economy really picking up steam, forcing policy makers to consider withdrawing aid.Some at the European Central Bank may push to begin scaling back the 1.85 trillion-euro ($2.2 trillion) pandemic bond purchase program in the third quarter as the economy is likely to stage a strong rebound. The result -- higher debt costs -- may be felt most acutely at companies with the biggest debt burdens.“Leverage is racking up and is often understated when you take into account often generous Ebitda adjustments,” said Duncan Priston, the co-head of European credit at distressed debt firm HIG Bayside Capital. “We expect to see a pickup in restructurings and defaults in the second part of the year as governments start phasing out economic support.”(Updates with tout after 14th 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. Business Bloomberg 210430 05h57m Barclays Shares Slump as Debt Trading and Expenses Disappoint (Bloomberg) -- Barclays Plc fell the most among European banks on Friday after the bank’s debt trading revenue and expense forecast disappointed investors.Revenue from fixed income, currency and commodities trading slumped 35% in a quarter that saw U.S. rivals post double-digit growth. Shares fell as much as 7.5% as the bank missed its target on a key expense ratio and warned costs will rise this year above 2020 levels. “The old problem of Barclays cost profligacy has clearly returned,” said Edward Firth, an analyst at Keefe, Bruyette & Woods.While the firm posted a 65% jump in equity trading and record investment banking fees, the debt trading slump meant corporate and investment bank income was broadly flat.“A mixed result,” Chief Executive Officer Jes Staley said of the investment bank’s performance in a Bloomberg Television interview Friday. “In our FICC business we were slightly off a very strong first quarter last year.”It follows a recent hot streak on Wall Street and at some European peers, who were boosted in the first quarter by securities trading, special purpose acquisition companies and tech-company stock offerings. French rival BNP Paribas SA also reported Friday, revealing it too missed out on the global fixed-income rally.“We thought the outperformance in corporate and investment bank relative to consensus could have been stronger following the U.S. banks,” said John Cronin, an analyst at Goodbody.Shares in Barclays were down 6.2% at 12:46 p.m. in London trading. The stock is still up 21% since the start of the year.Staley said the cost increase in the quarter was linked to compensating investment bank staff for their performance. “It’s a very controllable number so if our performance weakens we can take it right down again,” he said.A review of the bank’s real estate needs as more staff work from home is due within months and could lead to onetime charges in future, finance director Tushar Morzaria told reporters.More ProvisionsBarclays also took a further 55 million-pound charge for doubtful loans, departing from British rivals including Lloyds Banking Group Plc and NatWest Group Plc who released provisions this week, but said impairment charges this year will be “materially below” 2020 as the pandemic starts to abate. “We are trying to be prudent,” said Morzaria.Staley said the bank could release some provisions later in the year “if the economy continues in the current path.”However, the firm cautioned of “headwinds” persisting at Barclays UK, where income fell 8% in the first quarter. While Covid-19 cases in the U.K. are at the lowest level in months and half the population are at least partly vaccinated, officials have raised concerns that new variants might evade vaccines and jeopardize the return to normal life.“There is a lot of cautious commentary on the update in relation to the demand for unsecured lending, driving an uncertain income outlook,” according to Cronin.Staley has grown the corporate and investment bank as a hedge during times of economic crisis. He promoted C.S. Venkatakrishnan and Paul Compton last year to further develop the division and has reaped rewards from the past year of pandemic-driven volatility and a rush of companies tapping wide-open capital markets.Other highlights:Corporate and investment bank total income broadly flat at 3.6 billion poundsGroup pretax profit 2.40 billion pounds, up from 913 million pounds a year agoConsumer, cards and payments income was down 22%. “It will take time to get to pre-pandemic levels in credit cards,” said Staley.Barclays isn’t exposed to the Archegos Capital Management LP meltdown. “We are fortunate and avoided issues. Credit to our risk team,” Staley 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. Business Reuters 210430 05h50m UPDATE 1-German 10-year yield set for biggest weekly rise since February Euro zone government bonds yields slipped in early trading on Friday, stabilising after a sharp sell-off in the previous session, with the German 10-year yield on track for its biggest weekly rise in two months. Investors are closely watching data for any signs that the economic recovery from COVID-19 is gathering sufficient pace for central banks to start scaling back the extraordinary stimulus since the start of the crisis. Key benchmark yields hit multi-month highs on Thursday after U.S. economic growth and German inflation data came in higher than expected, strengthening the case for a pullback in central bank stimulus. Business Reuters 210430 05h45m Virgin Atlantic eyes UK-U.S. reopening after 2020 loss Britain-based airline Virgin Atlantic said it wanted UK-U.S. travel to reopen on May 17, after reporting a 659 million pound ($917 million) pretax loss for 2020, highlighting the toll taken by the pandemic. Virgin said that passenger numbers dropped 80% last year compared to 2019 after COVID-19 brought many planes to a standstill. Transatlantic routes formerly accounted for some 80% of Virgin's revenue, and the airline is keen to see the U.S. open. Business Reuters 210430 05h42m Exchange operator Cboe profit beats estimates as volumes surge U.S. exchanges have not only benefitted from a surge in retail participation due to the health crisis but also witnessed a deluge of new stock floatations during the quarter in a bid to capitalize on the red-hot IPO market. "We are off to a strong start this year with continued momentum across the company, achieving quarter-over-quarter increases in net revenue and trading activity for each business segment," said Cboe Chief Executive Officer Edward T. Tilly. For the quarter, Cboe reported a near 10% jump in total revenue of more than $1 billion, compared with the year-ago period. Business Reuters 210430 05h34m Exxon posts first profit in five quarters on higher oil prices Exxon and its rivals are seeing a lift from crude prices, up by a third this year, as economies start to recover from the pandemic and fuel demand increases. Exxon is trying to recover from a historic annual loss last year and fend off a proxy fight over board seats at its annual shareholder meeting next month. Net income attributable to Exxon was $2.73 billion, or 64 cents per share, in the first quarter, compared with a loss of $610 million, or 14 cents per share, a year earlier. Business Bloomberg 210430 05h32m Exxon Rebounds to First Profit Since 2019 on Crude Surge (Bloomberg) -- Exxon Mobil Corp. snapped a record streak of losses as rising oil and natural gas prices bolstered one of the biggest dividends in the S&P 500 Index.Exxon earned 64 cents a share in the first quarter, beating the 61-cent average estimate from analysts in a Bloomberg survey. The oil giant’s exploration and drilling division drove most of the gains but it also received a substantial tailwind from higher chemicals prices that helped offset losses incurred during the deadly February storm in Texas.All the supermajors are making money again after crude’s 30% year-to-date rally to more than $65 a barrel, buoyed by rising energy demand as economies emerge from pandemic lockdowns and OPEC holds the line on big supply increases.BP Plc, Royal Dutch Shell Plc and Total SE all preceded Exxon with bigger-than-expected profits. Chevron Corp. matched forecasts but disappointed some investors by holding off on reinstating share buybacks.Exxon’s turnaround from last year’s unprecedented string of losses will help restore investor faith in its ability to cover the S&P’s third-largest dividend, the cornerstone of Chief Executive Officer Darren Woods’ pitch to Wall Street. Unlike European rivals Shell and BP, Exxon didn’t cut payouts last year, but the decision came at a cost: borrowings increased 40% to about $70 billion.The challenge now is for Exxon to pay back debt while investing in key projects in Guyana and the Permian Basin while meeting increasing shareholder demands for returns. To achieve this, Woods has slashed jobs, delayed some major investments and vowed to reduce capital spending by $10 billion a year through the middle of this decade.But that plan, as well as the oil giant’s environmental record, have come under sustained attack from activist investor Engine No. 1, which is seeking four new directors and a strategic overhaul that puts Exxon at the forefront of the energy transition. Engine No. 1 has the support of major California and New York public pension funds.Woods will host the company’s conference call scheduled for 9:30 a.m. New York time in his last public pitch to investors before the annual meeting in May. Exxon has urged shareholders to vote against Engine No. 1’s proposals, arguing that the current strategy is beginning to bear fruit.Exxon stock is the top performer among the supermajors this year, providing a total return of 44%, well ahead of second-place Chevron’s 27%, according to data compiled by Bloomberg. Even so, Exxon has posted a negative total return over five and 10 years, meaning it now ranks outside the top 30 S&P stocks after being number one a decade ago.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. Business Reuters 210430 05h03m Phillips 66 posts fifth straight quarterly loss on winter storm impact Phillips 66 said on Friday its loss widened in the first quarter from the previous three months as severe winter storms in February impacted the U.S. refiner's operations in the Central and Gulf Coast regions. The refiner posted its fifth straight net loss that stood at $654 million, or $1.49 per share, for the three months ended March 31, compared with a loss of $539 million, or $1.23 per share, in the prior quarter. Business Bloomberg 210430 05h00m Twitter Tumbles After Digital Ad Sales Disappoint in Slow Start (Bloomberg) -- Twitter Inc. tumbled 13% in early trading Friday after the social media company posted a sluggish start to the year in its advertising business and gave a disappointing revenue forecast, a sign the social media service hasn’t fully capitalized on the digital advertising boom amid the pandemic like companies such as Facebook Inc. and Google.Sales were slow during the first months of 2021 after a busy holiday season, and some advertisers pulled back their spending because of the riot at the U.S. Capitol on Jan. 6, company executives said. “When there is unrest for one reason or another,” Chief Financial Officer Ned Segal said on a call with analysts, brand advertisers “often pause when there is a more important conversation than the conversation around their product.” Revenue gained 28% in the first quarter, in line with analyst estimates, but notably lagging behind the growth at some of Twitter’s digital advertising peers. Facebook and Alphabet Inc.’s Google this week reported quarterly sales that smashed analysts’ estimates, buoyed by businesses pushing commerce and travel, which are expected to bounce back as lockdowns ease.It’s disappointing that Twitter “didn’t catch this wave” in online advertising growth, though there will be more opportunities ahead, analyst Justin Patterson at KeyBanc Capital Markets wrote in a note to investors.Twitter said sales will be $980 million to $1.08 billion in the period ending in June. Analysts, on average, projected $1.05 billion, according to data compiled by Bloomberg. Segal said that Twitter saw a rebound in advertising in March, and if that trend continues the company would be on the high end of its guidance. The social media company relies more on big brand advertising, which makes up 85% of its total sales, and doesn’t make as much money from direct response advertising, which encompasses many of the retailers and small businesses that have flocked online during the pandemic. Facebook and Google, meanwhile, make the majority of their advertising from these types of ads.Those industry peers set the bar high for Twitter, leading to disappointment in the results, said Mandeep Singh, an analyst at Bloomberg Intelligence. “It goes to show that probably Google and Facebook had more exposure to e-commerce advertising than Twitter,” he said.Twitter also reported that daily active users increased 20% to 199 million, adding 7 million since the previous quarter. The company in February estimated year-over-year growth would be 20% in the March quarter, which was the first period since former U.S. President Donald Trump was banned from the service. Trump was kicked off Twitter on Jan. 6 for repeated violations of the company’s rules, and some analysts were concerned that the former president’s absence might hurt the business.Revenue was $1.04 billion in the three months ended March 31, matching analysts’ average estimate. Net income was $68 million, or 8 cents a share, compared with a loss of $8.4 million, or 1 cent, in the same quarter a year earlier, the San Francisco-based company said Thursday in a statement.The stock dropped to a low of $56.60 in premarket trading after closing at $65.09 in New York. The shares have gained 20% this year through Thursday.Twitter has been at the center of public discussion for much of the year, in part because of its ban of Trump and the scrutiny from Congress over its role with other social media sites in policing user speech. The company is also working on several new products, including audio chatrooms to compete with the popular startup Clubhouse, which could lead to more future revenue.Segal said many of the people who joined Twitter over the past year to follow updates from the pandemic have stuck around, a positive sign for the company’s growth. Chief Executive Officer Jack Dorsey said Twitter hopes to keep adding new users by making it easier for them to follow topics on the service, not just other people.Twitter would also like to use those topics to better personalize its advertising, though it’s not yet doing a good job of that, Segal said. “We’re getting there,” he added.User growth will begin to slow down in the coming quarters as Twitter compares itself with last year’s boom driven by the global pandemic and a contentious U.S. election. The company expects to increase users in “low double digits” percentages for the rest of 2021, according to Twitter’s shareholder letter, with the lowest growth rate expected in the current quarter. Those projections were previously announced in February.The pandemic hasn’t slowed Twitter’s hiring. The company now has 6,100 total employees, up 20% from a year ago. The surge in new employees has also increased the company’s stock-based compensation costs. Twitter increased its 2021 estimate for stock-based compensation to $600 million from a range of $525 million to $575 million previously reported.Although the company is building subscription products to complement its advertising business, it didn’t mention any new plans or details in the shareholder letter. Dorsey said on the call he hopes to test a subscription product “very soon.”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. Business Bloomberg 210430 04h56m Credit Suisse’s New Chairman to Review Strategic Options (Bloomberg) -- Credit Suisse Group AG Chairman Antonio Horta-Osorio said he plans a thorough assessment of the bank’s “strategic options” after the twin hits from the collapse of Archegos Capital Management and Greensill Capital eroded confidence.While he backed Chief Executive Officer Thomas Gottstein at the bank’s annual general meeting, the new chairman left little doubt about his appetite for change. The recent missteps at the Swiss lender, he said, went beyond any crises he had lived through over three-and-a-half decades working at banks.“We will take the time required for an in-depth assessment of the bank’s strategic options,” said Horta-Osorio, who succeeded Urs Rohner on Friday. “Then we will decide on a course of action and closely oversee the execution.”The comments are the clearest indication yet that the former head of Lloyds Banking Group Plc is planning to take a hands-on approach in his new role. The Portuguese banker, who cut thousands of jobs and billions of pounds in costs during a decade at Lloyds, said he wants to focus on three areas in the coming months, risk management, strategy and culture.During the meeting, both CEO Gottstein and outgoing chairman Rohner apologised for the recent scandals, with Gottstein saying they’d “left their mark” on him. He pledged to lead the company into “calmer waters.” That came after yet another senior departure, after the bank said risk committee head Andreas Gottschling would be leaving the board.The CEO is battling to rescue his short tenure after Credit Suisse was hit harder than any other competitor by the collapse of Archegos, the family office of U.S. investor Bill Hwang. The timing of the blowup could hardly have been worse, coming just weeks after Credit Suisse found itself at the center of the Greensill Capital scandal, when it was forced to suspend investment funds.Rohner, who had largely deflected shareholder criticism of his role, acknowledged that the recent weeks “cast a shadow” over the bank.“We’ve disappointed not just our clients but also our shareholders, and not for the first time unfortunately,” Rohner said. “I offer my apologies for this.”In the run up to Friday’s annual general meeting, influential shareholders including Norway’s sovereign wealth fund and Harris Associates had heaped pressure on the board by calling for the removal of Gottschling and other prominent board members, including lead independent director and Roche Holding AG CEO Severin Schwan.The twin debacles of Archegos and Greensill -- while sparing Gottstein -- caused tumult across Credit Suisse’s senior management. Investment banking head Brian Chin and Chief Risk Officer Lara Warner were among the highest-profile casualties, while the bank’s head of equities and co-heads of prime brokerage are also being replaced.For Horta-Osorio, the new position marks a return to investment banking after 15 years focused on retail. Before joining Lloyds, he ran Banco Santander SA’s British unit, as well as spending time in the U.S., Portugal and Brazil for various banks.“I have personally worked at and led several banks in different countries and have lived through many crises,” he said. “What has happened with Credit Suisse over the last eight weeks, with the U.S.-based hedge fund and the supply chain finance funds matters, certainly goes beyond that.”(Updates with Gottschling, executive departures in ninth 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. Business Bloomberg 210430 04h55m U.S. Futures Drop Amid Pause for Growth-Led Rally: Markets Wrap (Bloomberg) -- U.S. stock-index futures retreated as traders took a month-end breather amid a record high for the S&P 500 Index and some earnings disappointments. The dollar pared April losses.June contracts on the Russell 2000 declined 1.1% and Nasdaq 100 futures dropped 0.8% after China’s antitrust crackdown weighed on Asian technology shares. Twitter Inc. plunged 13% in premarket trading after forecasting second-quarter revenue below some expectations. The 10-year Treasury yield was steady and on course for the biggest monthly decline since July. European stocks erased gains.Confidence in the U.S. economy has surged amid a string of positive data culminating in a report Thursday that showed quarterly growth at an accelerated 6.4%. Given the Federal Reserve’s dovish resolve, that emboldened investors to stay bullish on stocks despite concern about high valuations. Some speculated Fed Chair Jerome Powell will come under pressure later this year to reassess the extent of accommodation.“The trouble is the asset froth that results from this -- we see asset valuations very, very stretched,” said Yves Bonzon, chief investment officer at Julius Baer Group Ltd. “Will Chairman Powell blink and start to guide for slightly less accommodative policy sooner than expected? That could be a risk as early as the third quarter.”With uncertainties about growth and monetary policy put aside for the moment, investors are focusing on corporate profits. Of the 290 companies in the S&P 500 that have reported results so far, about 88% have met or beaten estimates.Yet, this week brought a reality check to the earnings optimism amid the still-raging pandemic. While companies from Apple Inc. to Facebook Inc. crushed analyst estimates, there were disappointments too.Twitter plummeted in early trading as its sales forecast missed estimates at the midpoint and the company said user growth rate may slow. Chevron Corp. slid 2% even though it posted bumper cash flow as it said it will wait before reinstating share buybacks. Apple fell amid concerns about chip shortages.In Europe, the Stoxx 600 gauge fell 0.3%, dragged by raw-materials and technology shares. AstraZeneca Plc reported better-than-projected profit, helping the health-care sector post a gain.Chinese regulators imposed wide-ranging restrictions on the financial divisions of 13 companies, including Tencent Holdings Ltd. and ByteDance Ltd., in a broadening effort to rein in the giants of the tech industry. China’s purchasing managers’ surveys also cooled risk appetite, pointing to slower expansion in activity.A key index of commodities slipped, still set for the biggest monthly increase in five years. Crude-oil futures fell as traders looked past strong economic data and weighed the possibility of a resurgent coronavirus ruining the demand outlook.Copper’s Surge Toward a Record High Hitting Chinese IndustryThese are some of the main moves in markets:StocksFutures on the S&P 500 Index dipped 0.6% as of 6:54 a.m. New York time.The Stoxx Europe 600 Index decreased 0.4%.The MSCI Asia Pacific Index fell 0.9%.The MSCI Emerging Market Index fell 0.9%.CurrenciesThe Bloomberg Dollar Spot Index gained 0.2%.The euro declined 0.3% to $1.2084.The British pound fell 0.3% to $1.3908.The onshore yuan strengthened 0.1% to 6.466 per dollar.The Japanese yen was little changed at 108.87 per dollar.BondsThe yield on 10-year Treasuries gained less than one basis point to 1.64%.The yield on two-year Treasuries increased less than one basis point to 0.16%.Germany’s 10-year yield sank two basis points to -0.21%.Britain’s 10-year yield fell one basis point to 0.83%.Japan’s 10-year yield decreased less than one basis point to 0.097%.CommoditiesWest Texas Intermediate crude declined 1.9% to $63.80 a barrel.Brent crude dipped 1.5% to $67.54 a barrel.Gold weakened 0.1% to $1,769.91 an ounce.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. Business Bloomberg 210430 04h54m Ping An in Talks for Partial Stake in Credit Suisse’s Chinese Partner (Bloomberg) -- Ping An Insurance Group Co. has agreed to acquire a majority stake in the newly-established Founder Group for as much as 50.75 billion yuan ($7.9 billion).The Chinese insurer plans to buy a 51.1% to 70% stake in the new Founder Group, whose assets include Founder Securities Co., Founder Technology Group Corp. and China Hi-Tech Group Co., according to a statement to Shanghai stock exchange on Friday. The size of the deal could range from 37.05 billion yuan to 50.75 billion yuan, the statement said.Peking University Founder Group Corp. has been in court-led restructuring proceedings since early last year and has defaulted $3 billion of dollar bonds and 34.5 billion yuan of onshore bonds, according to data compiled by Bloomberg. In January, Ping An Insurance was introduced as one of the investors as Founder Group continues with its restructuring plans.The announcement confirmed an earlier Bloomberg News story that Ping An was in talks to acquire a partial stake in Founder Securities. Peking University Founder Group holds an about 28% stake in the Shanghai-listed broker.A working team from Ping An has been conducting due diligence on Founder Securities, the Chinese partner of Credit Suisse Group AG, people familiar with the matter have said. The Chinese insurer is considering to combine Founder Securities with Ping An Securities Co., according to the people, who asked not to be identified as the information is private.Shares in Founder Securities pared losses after the Bloomberg News report on Friday. It closed 3.8% lower after falling as much as 8.4%. The company has a market value of about $11.7 billion.Ping An Securities is among the few major Chinese brokers that remain private. The companies, if combined, could have total assets of 245 billion yuan ($38 billion), making the entity one of China’s top 10 players, according to data compiled by the Securities Association of China.The deal comes as China’s $1.4 trillion securities industry is facing rising pressure as Wall Street firms such as Goldman Sachs Group Inc. and JPMorgan Chase & Co. are in line to gain full control of their brokerage ventures. The intensifying competition could fuel consolidations among local brokerages and winnowing out those that can’t compete.Credit Suisse last year raised its stake in its securities joint venture with Founder from 33% to 51% and is seeking to gain full control as soon as possible. Goldman Sachs and JPMorgan are also racing to be the first with 100% ownership in their China’s joint ventures.Meanwhile, local brokers are beefing up their capital and competitiveness over the past few years. Citic Securities Co. bought Guangzhou Securities Co. in a $2 billion deal in 2019. A potential merger between China’s two largest investment banks -- Citic and CSC Financial Co., is gaining traction, Bloomberg reported in July.(Updates with official announcement throughout the story.)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. Business Bloomberg 210430 04h43m Chevron Posts Bumper Cash Flow After Oil Rally Meets Cuts (Bloomberg) -- Chevron Corp. generated the most free cash flow since the pandemic emerged as economies clawing their way out of more than a year of lockdowns and paralysis burn more fuel.The oil, natural gas and refining titan posted $3.4 billion in first-quarter cash flow on Friday, more than enough to cover its recently increased dividend, which is a closely watched metric for the oil supermajors. A key driver of the bonanza was a 43% spending cut as Chevron retreats from costly mega-projects to focus on less-risky endeavors such as shale drilling.The shares dropped 2% in pre-market trading. Despite the cash-flow increase, the company said it’s waiting for market conditions to improve before reinstating share buybacks. Chevron disclosed adjusted per-share profit of 90 cents, according to a statement, matching the average of analysts’ forecasts compiled by Bloomberg. Chevron followed European peers Royal Dutch Shell Plc and BP Plc in signaling the worst may be over from the dual menace of a worldwide glut and demand-killing Covid-19 lockdowns.Amid the brightening outlook, significant challenges remain. Chevron’s U.S. refining network lost money for the third time in four quarters, while its overseas fuel-making plants slashed crude-processing by 16% to cope with anemic demand for transportation fuels. The company also cited the negative impacts of the deadly winter storm that afflicted Texas in mid-February.Chevron flexed its financial might earlier this week by becoming the first Western supermajor to raise dividends above pre-pandemic levels. BP, Shell and Total SE all posted better-than-expected results in recent days, largely on the back of the crude-market rebound.Combined cash flow of the European giants exceeded $25 billion for the first time since late 2019. BP said it would begin buying back shares while Shell flagged a dividend increase.In March, Chevron Chief Executive Officer Mike Wirth spoke of his desire to begin buying back shares but declined to provide a time line. Friday’s statement made no mention of share repurchases and Wirth is expected to face questions on the issue from analysts during a conference call later in the morning.Chevron’s produced the daily equivalent of 3.12 million barrels of oil during quarter, down 4% from a year earlier. Despite the takeover of Noble Energy Inc. last autumn, Chevron’s output slipped as the Texas disaster froze wells and equipment glitches plagued an Australian gas-export facility, among other things.(Updates with hesitancy on buybacks 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. Business Reuters 210429 20h35m Japan stocks fall on disappointing earnings, coronavirus worries Japanese shares fell on Friday as lacklustre earnings reports and profit forecasts from technology firms, and a spike in domestic infections of the novel coronavirus weighed on investor sentiment. The Nikkei 225 Index was down 0.46% at 28,920.24, as of 0200 GMT, while the broader Topix edged 0.07% lower to 1,907.67. Investors are also growing more worried about COVID-19, because new infections in Tokyo and Osaka are rising even after the declaration of a state of emergency for the two cities at the start of this week, analysts said. World Reuters 210429 20h12m Mexican Senate approves bill to limit rail concessions, prices Mexico's Senate on Thursday approved an initiative to limit concessions to run and develop railways in the country to 30 years, and to periodically set a ceiling on prices that operators can charge. In a statement, the Senate said lawmakers had agreed to lower the length of railway concessions to 30 years from 50 at present. The initiative stipulates that the concessions can be extended subsequently for a maximum of 30 years in total. Business Bloomberg 210429 20h02m China’s Factory Outlook Eases as Economic Recovery Moderates (Bloomberg) -- A gauge of China’s manufacturing industry slipped in April and the services sector also weakened, suggesting the economy is still recovering but at a slower pace.The official manufacturing purchasing managers’ index fell to 51.1 in April from 51.9 in the previous month, the National Bureau of Statistics said Friday, lower than the median estimate of 51.8 in a Bloomberg survey of economists.The non-manufacturing gauge, which measures activity in the construction and services sectors, dropped to 54.9, compared to 56.1 projected by economists. Readings above 50 indicate an expansion in output.Key InsightsThe latest data adds more caution to China’s outlook after the economy showed more balanced growth in the first quarter, as retail sales climbed and industrial output growth moderated.The PMI figures show “China’s economy continued to recover steadily,” Zhao Qinghe, an economist at the statistics bureau, said in a statement accompanying the data release. But “some surveyed companies said problems such as chip shortages, poor international logistics, shortages of containers, and rising freight rates are still serious,” he said. A slowdown in manufacturing supply and demand and rising cost pressures are also issues, he said.What Bloomberg’s Economists Say...Both manufacturing and non-manufacturing sectors remained comfortably in expansionary territory, confirming that the recovery is well underway. The non-manufacturing PMI again outpaced manufacturing, supporting our view of the services sector catching up and manufacturing activity peaking.-- Chang Shu, chief Asia economistSee the full note hereManufacturers, especially those in upstream sectors, are benefiting from rising prices and profits, while the U.S. fiscal stimulus is giving a boost to exporters, allowing them to increase production. However, measures to contain carbon emissions in heavy-polluting industries may be weighing on some manufacturing output.Stronger consumer confidence is boosting services industries, especially after travel restrictions imposed earlier in the year were lifted. The outlook for construction is more complicated though, with local governments slowing the pace of debt sales to finance infrastructure projects and approvals for fixed-asset projects dropping sharply in the first quarter compared with previous years. The real estate sector is also faced with stricter financing rules. The construction sub-index in the non-manufacturing PMI fell 4.9 points to 57.4. The “services PMI slowed more than manufacturing PMI due to deleveraging reform in the real estate sector, and this will continue,” said Iris Pang, chief economist for Greater China at ING Bank NV in Hong Kong. But there should be a rebound as domestic tourism picks up over the long holiday starting May 1, she said.Get MoreA sub-index of new export orders for factories eased to 50.4 in April from 51.2 in the previous month, while new orders were at 52.A sub-index of manufacturing employment was at 49.6, while non-manufacturing employment was 48.7.High-frequency indicators tracked by Bloomberg show the economy continued to boom in April from the record growth in the first quarter, with strong exports and rising business confidence supporting the recovery.(Updates chart, adds comments and more details.)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. Business Bloomberg 210429 19h55m Asia Stocks, U.S. Futures Dip After S&P 500 High: Markets Wrap (Bloomberg) -- Asian stocks slipped Friday as China’s crackdown on technology firms dented sentiment despite another all-time record for the U.S. market overnight amid solid economic growth data.China and Hong Kong opened in the red, while Japan was little changed. U.S. futures fell following a new high for the S&P 500. A mixed batch of earnings reports Thursday included disappointments for Ford Motor Co. and Twitter Inc., and gains for Facebook Inc. and Amazon.com Inc. Concerns about chip shortages wiped out an earnings-driven advance for Apple Inc.Investors in Asia are wary of fallout in the tech sector as Chinese regulators imposed wide-ranging restrictions on the financial divisions of 13 companies, including Tencent Holdings Ltd. and ByteDance Ltd., in an antitrust crackdown. China’s purchasing managers surveys pointed to slowing expansion in activity, after the U.S. reported 6.4% annualized growth in the first quarter.Treasuries extended modest losses and the dollar was steady.Equity markets may be ready for a pause after a month of gains. Investors are eyeing more support for the U.S. recovery after President Joe Biden unveiled a $1.8 trillion social package in addition to his infrastructure plans. And there’s no sign yet of the Federal Reserve withdrawing policy accommodation, with Chair Jerome Powell reasserting this week that he’s looking for more progress in the jobs market, and that inflation pressures are likely temporary.“All evidence still points to continued support from both fiscal and monetary policy against a backdrop of accelerating corporate earnings,” said Mark Haefele, UBS Global Wealth Management’s chief investment officer. “This reinforces our view that markets can advance further, with cyclical parts of the market -- such as financials, energy, and value stocks -- likely to benefit most from the global upswing.”Meanwhile, copper topped $10,000 a metric ton for the first time since 2011, nearing that year’s record high as the global recovery stokes demand and mines struggle to keep up. Crude oil traded just below $65 a barrel.These are some of the main moves in markets:StocksS&P 500 futures dipped 0.2% as of 10:52 a.m. in Tokyo. The benchmark index closed 0.7% higherNasdaq 100 contracts fell 0.4%, after the index rose 0.5%Japan’s Topix Index was steadyShanghai Composite Index fell 0.6%Hang Seng Index slid 1.2%South Korea’s Kospi shed 0.6%Australia’s S&P/ASX 200 Index slipped 0.6%CurrenciesThe euro was little changed at $1.2121The British pound was at $1.3953The Japanese yen traded at 108.86 per dollarThe Bloomberg Dollar Spot Index was steadyBondsThe yield on 10-year Treasuries advanced one basis point to 1.65%Australia’s 10-year yield rose three basis points to 1.75%CommoditiesWest Texas Intermediate crude traded just below $65 a barrelGold dipped 0.2% to $1,769.25 an ounceFor 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. World Reuters 210429 17h13m Ground control out, remote control in at London City Airport At London City Airport, the air traffic controllers have gone. Rising over the terminal building, the old control tower with its panoramic windows is deserted, with screens, a few pens and some hand sanitiser all that remains. City quietly switched to a remote, digital air traffic control centre earlier this year, the first major international airport to do so, and on Friday it went public with the news. Business Reuters 210429 17h02m Exclusive: Credit Suisse investors call for tougher coal finance policy - letter Credit Suisse investors managing $2.5 trillion have called for the bank to take a tougher stance on coal financing, amid concern its current policies are too lax, a letter seen by Reuters showed. The role of lenders in financing the activities of companies responsible for the major share of greenhouse gas emissions has increasingly been the focus of investors and policymakers, keen to accelerate climate action. Thermal coal, used to generate electricity, has been a focal point as it is one of the heaviest-emitting fossil fuels and investors are eager to see it phased out. Business Reuters 210429 16h49m UPDATE 1-Mexico's Alsea posts quarterly loss, praises Starbucks comeback Mexico's Alsea on Thursday reported a net loss of 312.1 million pesos ($15.3 million) in the first quarter, in a setback for the restaurant operator after it returned to profit at the end of last year. Alsea, which operates Starbucks, Domino's and Burger King sites in South America and Europe, attributed the loss - which was steeper than a nearly 280 mln loss in the same quarter a year ago - to the ongoing impact of the coronavirus pandemic and store closures. Still, some quick-service brands were resilient, Alsea said. Business Bloomberg 210429 16h40m Asia Stocks Point Lower After GDP Spurs U.S. Gains: Markets Wrap (Bloomberg) -- Asian stocks look set to weaken Friday after another all-time record for the U.S. market overnight, as investors weighed the latest corporate earnings and solid economic growth data.Futures pointed down in Hong Kong, Australia and Japan, where markets will reopen after a holiday. U.S. contracts slipped following a new high for the S&P 500 and a stronger close for the Nasdaq 100 amid mixed earnings reports.Ford Motor Co. and EBay Inc. disappointed, while Facebook Inc.’s results took it to a record. Apple Inc. wiped out earlier earnings-driven gains on concerns about chip shortages. Amazon.com Inc. climbed after hours on a better-than-estimated revenue forecast, while Twitter Inc. sank amid a lackluster outlook.Risk sentiment was buoyed by data showing the U.S. economy expanded at a robust 6.4% annualized rate in the first quarter, while jobless claims fell to a fresh pandemic low. Treasuries weakened and the dollar was steady.Investors are anticipating more support from the government to add the optimism from economic numbers. President Joe Biden has unveiled a $1.8 trillion social package in addition to his infrastructure plans. And there’s no sign yet of the Federal Reserve withdrawing policy accommodation, with Chair Jerome Powell reasserting this week that he’s looking for more progress in the jobs market, and that inflation pressures are likely temporary.“All evidence still points to continued support from both fiscal and monetary policy against a backdrop of accelerating corporate earnings,” said Mark Haefele, UBS Global Wealth Management’s chief investment officer. “This reinforces our view that markets can advance further, with cyclical parts of the market -- such as financials, energy, and value stocks -- likely to benefit most from the global upswing.”Meanwhile, copper topped $10,000 a metric ton for the first time since 2011, nearing the all-time high set that year as rebounding economies stoke demand and mines struggle to keep up. Crude oil held gains on a confident outlook on demand from OPEC and its allies, despite risks from India’s Covid-19 crisis.These are some of the main moves in markets:StocksS&P 500 futures dipped 0.1% as of 7:37 a.m. in Tokyo. The benchmark index closed 0.7% higherNasdaq 100 contracts also fell 0.2%, after the index rose 0.5%Nikkei 225 futures slipped about 0.3%Australia’s S&P/ASX 200 Index futures edged down 0.2%Hang Seng Index futures dropped 0.3% earlierCurrenciesThe euro was little changed at $1.2120The British pound was at $1.3941The Japanese yen traded at 108.93 per dollarThe Bloomberg Dollar Spot Index rose 0.1%BondsThe yield on 10-year Treasuries advanced two basis points to 1.63%CommoditiesWest Texas Intermediate crude traded just below $65 a barrelGold traded at $1,771.67 an ounceFor 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. Business Reuters 210429 16h35m U.S. SEC probes VW 'Voltswagen' marketing stunt - source The U.S. Securities and Exchange Commission has opened an inquiry into the U.S. unit of Volkswagen's AG over a marketing stunt in which it falsely said it was changing its name in the United States to "Voltswagen," a person briefed on the matter confirmed. Spiegel first reported the inquiry and the SEC's request for information about the issue made in early April and quoted VW as confirming the investigation. Volkswagen declined to comment on the matter to Reuters. World Bloomberg 210429 16h30m Peru Presidential Favorite Pauses Campaign Over Poor Health (Bloomberg) -- Peru’s leftist presidential front-runner Pedro Castillo suspended campaign events Thursday afternoon citing health reasons.On Twitter, Castillo apologized to supporters who were gathering to hear him speak in the capital Lima, while local media said he’d been moved to a clinic, with breathing difficulties.Castillo’s wide lead in polls, his radical agenda and the backing of the Marxist Free Peru party, triggered a sell-off in Peru’s bonds and currency this month. Polls show Castillo, 51, is the clear front-runner in the June 6 presidential runoff against former congresswoman Keiko Fujimori.“Due to health issues, I am letting you know that, unfortunately, I will not be able to attend,” Castillo wrote. “A hug and apologies to everyone who arrived.”Castillo’s party didn’t immediately return calls and messages seeking comment.Read More: Peru Presidential Favorite Distances Himself From Marxist AlliesEl Comercio newspaper, citing a Twitter account purportedly belonging to Castillo’s Free Peru party, said he was being transfered to a clinic with “respiratory trouble.”Castillo, a former school teacher and union organizer, tested positive for Covid-19 in January -- during the first round of the presidential election -- and was forced to suspend campaign activities for a month.La Republica newspaper reported Thursday that he was was having a Covid-19 test done to rule out a reinfection.Castillo had been criticized by public health professionals for holding large, open air rallies as Peru is still in the grips of the coronavirus pandemic.Weekend DebateEarlier in the day, Castillo and Fujimori traded jabs over a potential weekend debate. Fujimori had proposed a meeting on Sunday and Castillo countered with a challenge for Fujimori to meet him at 1 p.m. on Saturday in the public square of Chota, near his hometown in northern Peru.On Facebook, Fujimori accepted and wrote “I’m not scared,” accusing Castillo of imposing conditions to derail the meeting.“I hope that candidate Castillo doesn’t keep shunning the debate or making absurd excuses to run away,” she wrote.(Updates with details on Saturday debate in penultimate 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. Business Reuters 210429 16h06m Wall Street ready to toast a New York revival but trade business suits for leisure wear Wall Street financiers let out a cautious cheer on Thursday after hearing New York City aims to fully reopen on July 1, craving the meetings and meals of work life before the pandemic, but also loathing the grind of mass transit, packed office elevators and conventional business attire. New York City Mayor Bill de Blasio on Thursday announced his intention to get things back to normal. New York Governor Andrew Cuomo, who controls reopening decisions, voiced optimism it might happen even before July 1. Business Bloomberg 210429 15h59m Asia Stocks Point Lower After GDP Spurs U.S. Gains: Markets Wrap (Bloomberg) -- Asian stocks are poised to open lower Friday, after fresh all-time highs for the U.S. market as investors took in the latest corporate earnings and strong economic growth data.Futures pointed down in Hong Kong, Australia and Japan, where markets will reopen after a holiday. The S&P 500 and Nasdaq 100 whipsawed to end higher on a mixed batch of earnings reports.Ford Motor Co. and EBay Inc. disappointed, while Facebook Inc.’s results took it to a record. Apple Inc. wiped out earlier earnings-driven gains on concerns about chip shortages. Amazon.com Inc. climbed after hours on a better-than-estimated revenue forecast, while Twitter Inc. sank amid a lackluster outlook.Risk sentiment was buoyed by data showing the U.S. economy expanded at a robust 6.4% annualized rate in the first quarter, while jobless claims fell to a fresh pandemic low. Treasuries weakened and the dollar was steady.Investors are anticipating more support from the government to add the optimism from economic numbers. President Joe Biden has unveiled a $1.8 trillion social package in addition to his infrastructure plans. And there’s no sign yet of the Federal Reserve withdrawing policy accommodation, with Chair Jerome Powell reasserting this week that he’s looking for more progress in the jobs market, and that inflation pressures are likely temporary.“All evidence still points to continued support from both fiscal and monetary policy against a backdrop of accelerating corporate earnings,” said Mark Haefele, UBS Global Wealth Management’s chief investment officer. “This reinforces our view that markets can advance further, with cyclical parts of the market -- such as financials, energy, and value stocks -- likely to benefit most from the global upswing.”Meanwhile, copper topped $10,000 a metric ton for the first time since 2011, nearing the all-time high set that year as rebounding economies stoke demand and mines struggle to keep up. Crude oil rose on a confident outlook on demand from OPEC and its allies, despite risks from India’s Covid-19 crisis.These are some of the main moves in markets:StocksThe S&P 500 Index closed up 0.7%The Nasdaq 100 Index rose 0.5%Nikkei 225 futures slipped about 0.3%Australia’s S&P/ASX 200 Index futures dipped about 0.2%Hang Seng Index futures dropped 0.3% earlierCurrenciesThe euro was little changed at $1.2123The British pound was at $1.3942The Japanese yen traded at 108.94 per dollarThe Bloomberg Dollar Spot Index was steadyBondsThe yield on 10-year Treasuries advanced two basis points to 1.63%CommoditiesWest Texas Intermediate crude rose 1.8% to $65.01 a barrelGold traded at $1,772 an ounceFor 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. Business Reuters 210429 15h57m Palantir's Alex Karp gets $1 billion payday in 2020 CEO Alexander Karp received a compensation of $1.10 billion that included $797.9 million earned in options and $296.4 million in stock awards. Known for its work with the Central Intelligence Agency and other government bodies, Palantir went public in September and has gained more than two-and-a-half times its debut price. Co-founder and President Steven Cohen was paid $192 million, compared with $16.1 million in 2019. World Reuters 210429 15h44m EU countries, lawmakers reach deal to tackle online child sexual abuse EU countries and EU lawmakers agreed late Thursday evening to allow Facebook and Microsoft to scan and remove online child sexual abuse, potentially paving the way for a deal in the coming months on privacy rules targeting online platforms. The provisional agreement is valid for three years. The European Commission will propose broader legislation with detailed safeguards to fight child sexual abuse online and offline later this year to replace the interim rules. Business Bloomberg 210429 15h42m Vista Equity Lays Out Plans to Raise New Flagship Fund (Bloomberg) -- Private equity firm Vista Equity Partners has notified investors it’s planning to raise a new flagship fund later this year, according to people with knowledge of the matter.The firm, led by billionaire Robert F. Smith, has yet to set a target for the fund, the people said, asking not to be identified because the matter is private. Formal fundraising efforts may begin toward the end of this year, one of the people said.A spokesman for Vista declined to comment on the firm’s fund formation plans.The effort will test support for Vista from investors, including pension funds and endowments, following Smith’s admission that he evaded taxes for years and last year agreed to pay $139 million in back taxes, fines and penalties. Co-founder Brian Sheth left Vista in November.The New Mexico Educational Retirement Board last year withdrew plans to invest in Vista’s credit fund following Bloomberg News’ reports of the tax investigation, according to the New York Times.Vista in 2019 raised $17 billion for its seventh flagship fund, including contributions from executives. At the time, it marked the largest technology-focused private equity vehicle ever raised, but has since been eclipsed by Thoma Bravo’s $17.8 billion fund and Silver Lake’s $20 billion fund, both announced within the past seven months.Vista’s flagship fund has made bets on companies including SmartBear Software, TripleLift, Klarna Bank AB, KnowBe4 Inc. and Pluralsight Inc.Vista sold work-management platform company Wrike Inc. to Citrix Systems Inc. for about $2.25 billion earlier this year. The company, backed by one of Vista’s middle-market funds, had a gross internal rate of return of 70%, a person with knowledge of the matter said.In 2020, Vista raised $9.4 billion for its various strategies, including $2.7 billion in December, a person familiar with the matter said.Read more: Carlyle Seeks Record $22 Billion for Latest Buyout Fund(Updates funding details in second to last 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. World Bloomberg 210429 15h30m Peru Presidential Favorite Pauses Campaign Over Poor Health (Bloomberg) -- Peru’s leftist presidential front-runner Pedro Castillo suspended campaign events Thursday afternoon citing health reasons. On Twitter, Castillo apologized to supporters who were gathering to hear him speak in the capital Lima, while local media said he’d been moved to a hospital with breathing difficulties. Castillo’s wide lead in polls, his radical agenda and the backing of the Marxist Free Peru party, triggered a sell-off in Peru’s bonds and currency this month. Polls show Castillo, 51, is the clear front-runner in the June 6 presidential runoff against former congresswoman Keiko Fujimori.“Due to health issues, I am letting you know that, unfortunately, I will not be able to attend,” Castillo wrote. “A hug and apologies to everyone who arrived.”Castillo’s party didn’t immediately return calls and messages seeking comment. Read More: Peru Presidential Favorite Distances Himself From Marxist AlliesEl Comercio newspaper, citing a Twitter account purportedly belonging to Castillo’s Free Peru party, said he was being transfered to a hospital with “respiratory trouble.”A former teacher and union organizer, Castillo has been holding large open air events that have been criticized by public health professionals as Peru is still in the grips of the coronavirus pandemic. Castillo tested positive for Covid-19 in January -- during the first round of the presidential election -- and was forced to suspend campaign activities for almost a month.(Updates with details on Castillo’s program from 3rd 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. Business Bloomberg 210429 15h10m Amazon Sales Beat Estimates as Pandemic Shopping Continues (Bloomberg) -- Amazon.com Inc. reported a big increase in sales and gave a bullish forecast, continuing a streak of rapid growth even as vaccine rollouts raised the prospect of a return to pre-pandemic shopping habits in the U.S.First-quarter revenue jumped 44% to $108.5 billion, exceeding analysts’ estimates. Earnings were $15.79 a share, also better than Wall Street expected.Sales will be between $110 billion and $116 billion in the quarter ending in June, the Seattle-based company said Thursday in a statement. Analysts, on average, estimated sales of $108.4 billion, according to data compiled by Bloomberg.“Fantastic quarter,” said Poonam Goyal, a senior analyst at Bloomberg Intelligence. “Good all around and shows the staying power of changing consumer habits that will lean more toward digital.”The shares rose about 3% in extended trading, putting them on course for a record when trading opens in New York on Friday. The stock has gained about 45% in the last 12 months.Amazon said Prime Day, the company’s shopping bonanza for members of its $119-a-year speedy shipping program, will take place in the second quarter. That may help the company’s spring results look rosier compared with a period in 2020 when many people were in the midst of lockdowns and shopping almost exclusively online.Amazon has been among the biggest beneficiaries of the coronavirus pandemic, as crowd-averse shoppers rushed online. Earlier this month, Chief Executive Officer Jeff Bezos said the company had 200 million Prime subscribers, compared with 150 million at the start of 2020. But with the vaccine rollout well underway in the U.S., Amazon’s largest market, investors have been scrutinizing data for signs that consumers will start spending more money at physical stores, eating out and traveling.The company’s cloud-computing and advertising businesses, which generate fatter margins than the retail operation, are still growing rapidly. Sales at Amazon Web Services, the cloud division, climbed 32% to $13.5 billion. The company’s Other segment, which is mostly ads, saw revenue jump 77% to $6.9 billion.Amazon earlier this month defeated a union drive to organize a fulfillment center in Bessemer, Alabama, but the hard-fought tussle amplified the perception that it treats hourly workers unfairly. Bezos, who will become executive chairman later this year and hand the reins to AWS chief Andy Jassy, alluded to the union battle in his last letter to shareholders as CEO. Highlighting Amazon’s 2-1 victory, he nonetheless pledged to treat workers better.On Wednesday, the company said it would spend $1 billion to boost hourly wages by between 50 cents and $3 for more than 500,000 U.S. workers. Amazon currently offers a starting wage of $15 an hour, or more than twice the federal minimum.The company usually kicks off its earnings release with a rundown of business accomplishments. This time, Amazon devoted long sections on efforts to look out for its employees, provide services to small businesses, and reduce Amazon’s greenhouse gas emissions, among other initiatives.(Updates with AWS results in eighth 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. Business Reuters 210429 15h02m UPDATE 1-Gilead HIV, hepatitis C sales dip, shares down 2.3% Gilead Sciences Inc on Thursday reported first-quarter revenue that fell short of Wall Street estimates as the COVID-19 pandemic hurt sales of its flagship HIV and hepatitis C drugs. Shares of the biotech company, which closed at $63.84 in regular trading, were down 2.3% after hours at $62.40. The biotech company reported adjusted earnings of $2.08 per share, edging out the average analyst estimate of $2.07 as compiled by Refinitiv. World Bloomberg 210429 15h00m Covid Shots Come in Bulk. The World Needs Single Servings (Bloomberg) -- The rapid development of Covid-19 vaccines is one of medicine’s greatest achievements, but distribution hasn’t been easy. Vials full of doses often must be kept in extreme cold, and once opened have to be used quickly, sometimes prompting health workers to run out into the street looking for someone to take the leftovers.Now vaccination campaigns in the U.S. and some other countries are moving from mass demand to more targeted efforts to reach the hesitant -- and doctors want easier ways to deliver shots.The ideal in many instances would be a pre-filled syringe, simple to store with no excess to worry about. But drugmakers haven’t made that a priority yet, and other measures to deliver vaccines to smaller, farther-flung populations are coming along slowly, presenting a challenge in the next phase of the immunization effort.Doctors’ offices and clinics “need to reach people in their persuadable moment,” Kentucky Public Health Commissioner Steven Stack said April 21 at a briefing hosted by the Association of State and Territorial Health Officials. “And it’s difficult to do that when these products are shipped in 10-dose vials, or even sometimes five-dose vials.”Campaign NeedsLarge shipments of vials filled to the brim suit the needs of a campaign aimed at eventually vaccinating most of the world’s population. More than 1 billion shots have been administered globally, according to Bloomberg’s vaccination tracker, and more than a fifth of them in the U.S. alone. Large lots remain a priority globally, even as the U.S. campaign enters a new, more targeted stage.Long the container of choice for immunizations, multi-dose vials consist of just a glass vessel and rubber stopper. While they require less testing and are cheaper to use than pre-filled syringes, the vaccine within them expires six to 12 hours after the first use.Almost a third of Americans are fully immunized, but getting to a level at which vaccines will keep the virus largely at bay will increasingly require reaching residents who have misgivings about the shots. Those are most likely to be given at locations like primary-care doctor’s offices and clinics, where fewer doses might be needed each day, experts said.“In the accelerated effort to make vaccines available to the world as quickly as possible, the easiest and fastest option was to go to multi-dose vials,” said Bernie Clark, vice president of biologics marketing and strategy for Catalent Pharma Solutions. “There will be different needs in the future, versus when we were in the middle of the pandemic last year.”Pre-filled syringes could become more common in the next year or two, said Christopher Cassidy, vice president of pharmaceutical systems at Schott North America, a maker of both vials and syringes. The need will become especially great if booster shots are required to battle new variants of the coronavirus, he said.Yet the devices aren’t a major focus for vaccine manufacturers that have been racing to get shots developed, cleared and distributed. Pfizer Inc., whose Covid vaccine developed with partner BioNTech SE was the first authorized in the U.S., isn’t currently developing a pre-filled version, a spokesman said. Coming up with slightly more convenient packaging hasn’t been the first priority for Moderna Inc. either, according to a spokesperson.Schott and Catalent, which also makes pre-filled syringes, say they’re in discussions with companies now around Covid vaccines, but that the shift will take time. Becton Dickinson and Co., one of the top makers of syringes, has said it’s investing about $1.2 billion over four years on manufacturing capabilities and technology for pre-fillable syringes and other drug delivery systems that could also be of use for pandemic response.Government ContractLast year, the U.S. government granted privately held ApiJect Systems Corp. a $138 million contract to produce pre-filled syringes for Covid-19 shots. At the time, ApiJect, which doesn’t have a history of making the devices, said it would make 100 million by the end of last year and half a billion by the close of 2021. A $590 million government loan to support the work was approved, which the Stamford, Connecticut-based company says hasn’t been finalized or funded.ApiJect hasn’t produced any pre-filled syringes for commercial use, NBC reported last week. The company has manufactured some devices, now being tested by drugmakers, that will require regulatory review before they’re sold, according to Steven Hofman, a spokesman.ApiJect can produce 45 million doses a month through a partnership with a contract development manufacturer in South Carolina, he said. Making 100 million syringes in 2020 was dependent on vaccine availability and regulatory clearance, he said.“When we got the contracts there was some degree of uncertainty as to whether there would be enough glass vials and syringes” for the vaccine rollout, concerns that have since eased, Hofman said.Vaccine PrioritiesOther modifications -- making shots that can be more easily stored at warmer temperatures and developing booster shots -- should be higher priorities than pre-filled syringes, said Nicole Lurie, a strategic adviser to the Coalition for Epidemic Preparedness Innovations, which funds Covid vaccine development. When she served as a Health and Human Services official during the pandemic of H1N1 swine flu, Lurie said, pre-filled syringe production came at the expense of time and volume.“Nobody’s ever going to be completely happy with everything,” she said Thursday. “So prioritizing is really, really important.”Other steps are being taken to make dosing more convenient. Pfizer, which ships its vaccines in packages of 1,170 doses, will also begin offering smaller 25-vial pack sizes that contain 450 doses at the end of May. The move will give U.S. vaccine sites flexibility, said Tanya Alcorn, vice president, biopharma global supply chain.Pfizer, whose vaccine must be kept in an ultra-cold freezer, is also developing new formulations, including a ready-to-use, six-dose vial that could be available by the end of the year and would be stored in a standard freezer. A freeze-dried powder version, which is stored as a single dose in a vial and could be refrigerated, is aimed at early 2022.The company is also looking at whether its currently-available vaccine, which today can be kept for only five days in a refrigerator, can be stored there for longer periods. It’s one of the most common questions Pfizer gets from health-care providers, Alcorn said.“We are always thinking of different infrastructures. Different countries have different needs. Even within a country you have cities, you have rural areas,” she said. “It’s important for us to have different programs and different offerings.”Moderna also said earlier Thursday that it’s developing a version of its vaccine that could be stored for three months at refrigerator temperatures, which could facilitate distribution to doctors’ offices and other smaller settings. Currently, the vaccine can be stored one month in a refrigerator and up to seven months in a standard freezer.Such changes will make it easier for rural clinics and urgent-care centers, which typically have refrigerators but may not have deep freezers, to store shots, said Cody Powers, a principal at consulting firm ZS who advises manufacturers of Covid vaccines.Requests for pre-filled syringes are “probably good news. It means we’re far enough in the vaccine process where the modality starts to matter,” he said. “In much of the world, that’s a luxury.”(Updates with Pfizer comments in final section.)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. Business Bloomberg 210429 14h59m Twitter Projects Lackluster Sales, Sending Shares Down (Bloomberg) -- Twitter Inc. gave a disappointing revenue forecast, a sign the social media service hasn’t fully capitalized on the digital advertising boom amid the pandemic like companies such as Facebook Inc. and Google. Shares fell about 8% in extended trading.Sales will be $980 million to $1.08 billion in the second quarter, the San Francisco-based company said Thursday in a statement. Analysts, on average, projected $1.05 billion, according to data compiled by Bloomberg.Twitter’s sales gained 28% in the first quarter, notably lagging behind some of its digital advertising peers. Facebook and Alphabet Inc.’s Google this week reported quarterly revenue that smashed analysts’ estimates, buoyed by businesses pushing commerce and travel, which are expected to bounce back as lockdowns ease. Twitter relies more on big-brand advertising, which is typically slower early in the year after the busy holiday quarter.Those peers set the bar high for Twitter, leading to disappointment in the results, said Mandeep Singh, an analyst at Bloomberg Intelligence. “It goes to show that probably Google and Facebook had more exposure to e-commerce advertising than Twitter,” he said.Twitter also reported that daily active users increased 20% to 199 million, adding 7 million since the previous quarter. The company in February estimated year-over-year growth would be 20% in the March quarter, which was the first period since former U.S. President Donald Trump was banned from the service. Trump was kicked off Twitter on Jan. 6 for repeated violations of the company’s rules, and some analysts were concerned that the former president’s absence might hurt the business.Revenue was $1.04 billion in the three months ended March 31, matching analysts’ average estimate. Net income was $68 million, or 8 cents a share, from a loss of $8.4 million, or 1 cent, in the quarter a year earlier.The stock dropped to a low of $58.50 in extended trading after closing at $65.09 in New York. The shares have gained 20% this year.Twitter has been at the center of public discussion for much of the year, in part because of its ban of Trump and the scrutiny from Congress over its role with other social media sites in policing user speech. The company is also working on several new products, including audio chatrooms to compete with the popular startup Clubhouse, which could lead to more future revenue.User growth will begin to slow down in the coming quarters as Twitter compares itself with last year’s boom driven by the global pandemic and a contentious U.S. election. The company expects to increase users in “low double digits” percentages for the rest of 2021, according to Twitter’s shareholder letter. Those projections were previously announced in February.The pandemic hasn’t slowed Twitter’s hiring. The company now has 6,100 total employees, up 20% from a year ago. The surge in new employees has also increased the company’s stock-based compensation costs. Twitter increased its 2021 estimate for stock-based compensation to $600 million from a range of $525 million to $575 million previously reported.Although the company is building subscription products to complement its advertising business, it didn’t mention any new plans or details in Thursday’s shareholder letter.(Updates with comments from analyst in the 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. World Reuters 210429 14h56m UPDATE 1-Mexico finances could handle higher rates, finmin official says Mexico's public finances could handle higher interest rates, a senior finance ministry official said on Thursday as the country faces an uptick in price pressures that have taken inflation significantly above the central bank's target rate. "There's scope to support, were it to occur, increases in interest rates without pressuring public finances," said Ivan Cajeme Villarreal, head of economic planning at the ministry. Villarreal was speaking at a news conference on public finances in which Deputy Finance Minister Gabriel Yorio said the recent rise in inflation did not appear permanent. Business Reuters 210429 14h18m GLOBAL-MARKETS-Recovery hopes drive shares, U.S. Treasury yields World share indices extended gains and Treasury yields rose on Thursday, after strong U.S. economic data and the Federal Reserve's commitment to continue supporting the economy fueled confidence in a recovery. U.S. economic growth accelerated in the first quarter, fueled by massive government aid to households and businesses, charting the course for what is expected will be the strongest annual performance in nearly four decades. Business Yahoo Finance 210429 14h17m Ketchup shortage is nearing an end, says Kraft Heinz The ketchup shortage is coming to an end soon, Kraft Heinz tells Yahoo Finance Live. Business Yahoo Finance Video 210429 14h15m The stock market will survive Biden Investors have concluded the Biden's tax hikes won't derail the bull market. Business Bloomberg 210429 14h14m Stocks Climb in Volatile Trading on GDP, Earnings: Markets Wrap (Bloomberg) -- U.S. stocks rose to a record as investors digested the latest batch of corporate earnings and data that showed the American economy gained steam in the first three months of the year.Amazon.com climbed afterhours on a better-than-estimated revenue forecast, while Twitter sank amid a lackluster outlook. In regular trading, Apple wiped out its gains on concern that the iPhone maker may not sustain growth after a blockbuster quarter as it faces a tightening supply of chips. Weak earnings dented Ford and EBay. Facebook held its post-earning gains, surging to a record after its sales dwarfed estimates. The S&P 500 briefly turned negative in afternoon trading. The tech-heavy Nasdaq 100 broke a two-day losing streak. The volatility came as investors continued to assess major corporate results that overshadowed signs of a resurgence in the economy. Data released Thursday showed U.S. gross domestic product expanded at a 6.4% annualized rate in the first quarter, while applications for U.S. state unemployment insurance fell last week to a fresh pandemic low.“It looks like it’s a tug-of-war between those that think the good earnings results we’ve seen are just the beginning of a longer economic and corporate earnings boom and those that believe we are at peak growth and markets are unlikely to go higher from here,” said Chris Zaccarelli, chief investment officer at Independent Advisor Alliance.While the GDP figures may support the Federal Reserve’s strong assessment of the economy, the central bank is in no mood to halt aggressive support as it looks for even further progress in employment and inflation. Chair Jerome Powell on Wednesday dismissed worries about price surges or anecdotes of labor shortage, implying policy makers are prepared to run the economy hot for a while. President Joe Biden unveiled a $1.8 trillion spending plan targeted at American families, adding to the economic optimism.With their plans, the Fed and Biden have delivered a boost to investor sentiment that has see-sawed in recent days between optimism over a string of robust economic data and caution amid high valuations and speculation about stimulus tapering by year-end.“All evidence still points to continued support from both fiscal and monetary policy against a backdrop of accelerating corporate earnings,” said Mark Haefele, UBS Global Wealth Management’s chief investment officer. “This reinforces our view that markets can advance further, with cyclical parts of the market -- such as financials, energy, and value stocks -- likely to benefit most from the global upswing.”Crude oil rose on a confident outlook on demand from OPEC and its allies, despite the threat from India’s Covid-19 crisis.These are some of the main moves in markets:StocksThe S&P 500 rose 0.7% as of 4 p.m. New York timeThe Nasdaq 100 rose 0.5%The Dow Jones Industrial Average rose 0.7%The MSCI World index rose 0.4%CurrenciesThe Bloomberg Dollar Spot Index was little changedThe euro was little changed at $1.2128The British pound rose 0.1% to $1.3950The Japanese yen fell 0.3% to 108.89 per dollarBondsThe yield on 10-year Treasuries advanced two basis points to 1.63%Germany’s 10-year yield advanced four basis points to -0.19%Britain’s 10-year yield advanced five basis points to 0.84%CommoditiesWest Texas Intermediate crude rose 1.7% to $65 a barrelGold futures were little changedFor 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. Business Reuters 210429 14h11m UPDATE 1-Twitter's ad sales surge but says user growth could fizzle Twitter Inc on Thursday reported a surge in sales as ad product improvements pushed revenue past Wall Street targets, joining other big tech digital ad firms such as Facebook Inc and Alphabet Inc's Google whose businesses have proliferated during the coronavirus pandemic. But Twitter said costs and expenses were rising and that stock based compensation for new hires would be more than expected this year. Shares of Twitter fell 8.7% to $59.30 in trading after the bell. Business Reuters 210429 14h09m Twitter shares fall as it warns of fizzling user growth, rising costs Twitter Inc shares sank on Thursday as it reported a surge in ad sales but warned of rising costs and expenses and said user growth could slow in the coming quarters as the flow seen during the coronavirus pandemic fizzles. The social media company also said stock based compensation for new hires would be more than expected this year. Shares of Twitter fell 8.7% to $59.30 in trading after the bell. Business Bloomberg 210429 14h08m Novavax Vaccine Results Will Put 1,190% Stock Surge to Test (Bloomberg) -- The upcoming release of Novavax Inc.’s Covid-19 vaccine trial results may not only help provide additional pandemic relief across the globe, it could also validate investor support that buoyed the stock by 1,190% over the past year.The biotech firm said in March its shot could get cleared by the Food and Drug Administration for emergency use as early as May. To hit its May target, Novavax may need to submit data to the FDA within the next week or so. It may take regulators then several weeks to review the results and decide on whether to grant an authorization, based on timelines of previous U.S. Covid-19 vaccine clearances.If that materializes, the company will have the fourth Covid-19 vaccine in the U.S. in addition to shots from Pfizer Inc. with its German partner BioNTech SE, Moderna Inc. and Johnson & Johnson.Novavax representatives declined to comment on the upcoming results and timeline for the release of trial data.Novavax may have lost the race on vaccinating millions of Americans with more than 230 million doses administered stateside but a successful trial can still help developing nations like India and Brazil where shots are in high demand as infections hit record levels. U.S. President Joe Biden said Tuesday that upcoming vaccines, including one from Novavax, could be shared with other countries.Novavax’s shares skyrocketed last summer when it became one of the front-runners in the race to develop an inoculation against the coronavirus. But it has since trailed behind U.S. market leaders both on production and on a valuation standpoint.Moderna, which secured an emergency authorization in December, now trades at roughly four times Novavax’s market value of about $17.6 billion, while Germany’s BioNTech is worth $43 billion. CureVac N.V., another vaccine hopeful that’s also been buoyed by its ties to Tesla Inc., has a valuation of about $21 billion.Encouraging OutlookVaccine results outside of the U.S. have shown promise. In a 15,000 person U.K. trial, Novavax’s shot demonstrated 89.7% effectiveness in preventing symptoms of the disease. And with the rise of resistant variants, the bar for the upcoming North American trial has been set lower, where 80% effectiveness would be a “home run,” according to Sam Fazeli, a Bloomberg Intelligence analyst.“What’s very encouraging is the efficacy of 96.4% versus the previous versions of the virus and 86.3% against the U.K.-prevalent B.1.1.7 variant -- 57% of infections in the trial. There were five cases of severe Covid-19 in the final analysis, suggesting the vaccine has 100% efficacy similar to other vaccines being rolled out, which is not surprising given its success against milder disease,” Fazeli said.Novavax fell 2.8% to $237.53 on Thursday, after closing at a high of $319.93 in early February. The shares had six buy ratings, one hold and zero sell recommendations among analysts tracked by Bloomberg.Expectations for further gains in the stock has added pressure on short sellers who have more than $1.1 billion worth of outstanding bets against the company as of April 29, according to S3 Partners data. So far this year Novavax short sellers have lost more than $800 million, according to Ihor Dusaniwsky, S3’s managing director of predictive analytics.“Price strength will probably force even more shorts out of their positions,” Dusaniwsky said in an interview.(Updates with closing share price moves throughout.)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. Business Yahoo Finance Video 210429 13h10m Six ways Biden’s tax plan targets the rich Yahoo Finance’s Denitsa Tsekova breaks down President Biden’s tax plan. Business Reuters 210429 12h56m FAA auditing Boeing minor design change porcedure after 737 MAX issue The U.S. Federal Aviation Administration (FAA) said Thursday it is auditing Boeing Co's process for making minor design changes across its product line after a 737 MAX manufacturing issue grounded dozens of planes. The FAA said it is also investigating the origin of the electrical manufacturing issue disclosed on April 7 that led to the grounding of 109 Boeing 737 MAX aircraft worldwide. Business Reuters 210429 12h53m Software company SAP to pay $8 million to resolve case involving exports to Iran German software maker SAP SE will pay $8 million in penalties as part of a settlement with the United States to resolve allegations that it violated federal law by exporting some of its software products to Iran, the Justice Department said on Thursday. As part of the pact with the U.S. Justice, Treasury and Commerce departments, federal prosecutors also agreed not to pursue criminal charges against the company. The case against SAP marks the first time a company has taken advantage of a Justice Department policy that gives companies a path to avoid prosecution for unlawfully exporting goods to sanctioned countries, businesses or individuals by self-reporting them to the U.S. government. Business Bloomberg 210429 12h53m Stocks Climb in Volatile Trading on GDP, Earnings: Markets Wrap (Bloomberg) -- U.S. stocks rose in choppy trading as investors digested the latest batch of corporate earnings and data that showed the American economy gained steam in the first three months of the year.Apple Inc. pared a a gain of as much as 2.6% amid concern that the iPhone maker may not sustain growth after a blockbuster quarter as it faces a tightening supply of chips. Weak earnings dented Ford Co. and EBay Inc. Facebook held its post-earning gains, surging to a record after after its sales dwarfed estimates.The S&P 500 was at a record high after briefly turning negative in afternoon trading. The tech-heavy Nasdaq 100 was set to break two-day losing streak after fluctuating between a gain of more than 1% and a 0.5% decline. The volatility came as investors continued to assess major corporate results that overshadowed signs of a resurgence in the economy. Data released Thursday showed U.S. gross domestic product expanded at a 6.4% annualized rate in the first quarter, while applications for U.S. state unemployment insurance fell last week to a fresh pandemic low.Ford plunged the most in 10 months after reducing its full-year forecast, also because of a chip shortage. EBay tumbled the most since 2016 on a sales outlook that suggested spending on the site could recede as more people get vaccinated.“It looks like it’s a tug-of-war between those that think the good earnings results we’ve seen are just the beginning of a longer economic and corporate earnings boom and those that believe we are at peak growth and markets are unlikely to go higher from here,” said Chris Zaccarelli, chief investment officer at Independent Advisor Alliance.While the GDP figures may support the Federal Reserve’s strong assessment of the economy, the central bank is in no mood to halt aggressive support as it looks for even further progress in employment and inflation. Chair Jerome Powell on Wednesday dismissed worries about price surges or anecdotes of labor shortage, implying policy makers are prepared to run the economy hot for a while. President Joe Biden unveiled a $1.8 trillion spending plan targeted at American families, adding to the economic optimism.With their plans, the Fed and Biden have delivered a boost to investor sentiment that has see-sawed in recent days between optimism over a string of robust economic data and caution amid high valuations and speculation about stimulus tapering by year-end.“All evidence still points to continued support from both fiscal and monetary policy against a backdrop of accelerating corporate earnings,” said Mark Haefele, UBS Global Wealth Management’s chief investment officer. “This reinforces our view that markets can advance further, with cyclical parts of the market -- such as financials, energy, and value stocks -- likely to benefit most from the global upswing.”Crude oil extended gains on a confident outlook on demand from OPEC and its allies, despite the threat from India’s Covid-19 crisis.These are some of the main moves in markets:StocksThe S&P 500 rose 0.7% as of 2:50 p.m. New York timeThe Nasdaq 100 rose 0.5%The Dow Jones Industrial Average rose 0.7%The MSCI Emerging Markets Index was little changedCurrenciesThe Bloomberg Dollar Spot Index was little changedThe euro was little changed at $1.2122The British pound was little changed at $1.3946The Japanese yen fell 0.3% to 108.90 per dollarBondsThe yield on 10-year Treasuries advanced three basis points to 1.64%Germany’s 10-year yield advanced four basis points to -0.19%Britain’s 10-year yield advanced five basis points to 0.84%CommoditiesWest Texas Intermediate crude rose 1.9% to $65 a barrelGold futures fell 0.2% to $1,770 an ounceFor 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. Business Bloomberg 210429 12h47m Sawmills Are Selling Boards Faster Than They Can Cut Them (Bloomberg) -- Lumber demand is so strong that Resolute Forest Products Inc.’s order book exceeds its inventory, according to Chief Executive Officer Remi Lalonde.After trucking and railcar shortages hampered shipments during the first quarter, Resolute is now holding extra inventories at a time of record wood prices, Lalonde said during a conference call Thursday. Still, even those stockpiles aren’t enough to satisfy the North American building boom, so Resolute is ramping up output. Full-year production is expected to rise by 7%.Lumber futures have surged 85% this year amid sky-high demand from homebuilders and remodelers. The price touched an all-time high of $1,334.60 per thousand board feet two days ago and on Thursday surged by the $32 maximum allowed under Chicago Mercantile Exchange rules.“We’re selling volume that we haven’t sawed yet,” the CEO said. The inventory buildup during a price rally was “kind of a happy accident.”Idle SawmillsInvestors punished Resolute for posting adjusted per-share profit that trailed every analyst estimate compiled by Bloomberg. Executives cited the transportation snags for the underperformance. The stock plunged as much as 17%.To boost output, Resolute restarted a mill in Ontario that had been idle for two years, as well as one in Arkansas. Before Thursday, Resolute shares had more than doubled in a year, pushing the company’s market valuation to more than $1 billion.The shares were down 15% at $13.23 at 2:39 p.m. in New York.Also on Thursday, Canfor Corp. said first-quarter lumber shipments were 7% below the prior three-month period. The company blamed severe winter weather in the U.S. South that disrupted deliveries, as well as transportation constraints in Canada.Record IncomeStill, the lumber rally and improved global pulp-market conditions meant it reaped record operating income of C$603 million ($490 million). This compared with an C$88.8 million loss a year earlier.“This unprecedented pricing substantially outweighed the impacts of higher market-related log costs in Western Canada, combined with moderately lower North American shipment volumes stemming from transportation constraints,” and a stronger Canadian dollar,” Canfor said in a statement.Global lumber demand is expected to remain solid with strong home building and remodeling to continue through June, the Vancouver-based company said.Canfor dropped as much as 4.6%.(Adds Canfor’s record operating income in ninth 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. Business Reuters 210429 12h47m Berkshire annual meeting to showcase Munger as he rejoins Buffett Berkshire Hathaway Inc's widely anticipated annual meeting on Saturday will be held virtually for a second year but reclaim one bit of normalcy as Charlie Munger rejoins fellow billionaire Warren Buffett to answer shareholder questions. The meeting gives Buffett, 90, and Munger, 97, a stage to explain over 3-1/2 hours what to expect from Berkshire's dozens of businesses, markets and the economy, and whether the company will continue aggressive share repurchases. Still, with no shareholders in attendance, it will be shorn of the festivities that normally draw about 40,000 annually to Omaha, Nebraska for what Buffett calls Woodstock for Capitalists. U.S. Reuters 210429 12h11m UPDATE 1-Law firms representing Purdue Pharma to pay U.S. $1 mln -U.S. Justice Dept Law firms representing opioid maker Purdue Pharma in the company's bankruptcy will relinquish $1 million in a settlement with the U.S. Department of Justice's trustee program, the department said on Thursday. The settlement must still be approved the Bankruptcy Court for the Southern District of New York, the department said in a statement. The firms included in the DOJ settlement announced on Thursday are Skadden, Arps, Slate, Meagher & Flom LLP, Wilmer Cutler Pickering Hale and Dorr LLP, and Dechert LLP, according to the statement. Business Bloomberg 210429 12h01m Muni Market Agrees With De Blasio: New York City Is Coming Back (Bloomberg) -- Mayor Bill de Blasio is promising this will be The Summer of New York City. Muni-bond investors tend to agree.With about $14 billion of federal aid, virus cases falling by 50% in the past two weeks, hotel occupancy rates increasing, subway ridership up, and the mayor’s pledge to fully reopen by July 1, the city is set for a comeback from a year ago when it was the epicenter of the pandemic in the U.S.“This certainly makes people feel even better about the city and more optimistic,” Gary Pollack, head of fixed income for private wealth management at Deutsche Bank, said about de Blasio’s plan to fully open up businesses and most cultural attractions by July 1.NYC Mayor Sets Goal to ‘Fully Reopen’ July 1 as Virus EasesWhile the three major credit rating companies currently give New York City a negative outlook, meaning it’s at risk of more downgrades, bond buyers are staying with the city.The gap between the yields on New York City’s 10-year bonds has dropped to just 23 basis points over the market’s benchmark, the narrowest gap since March 2020 and down from as high as 0.74 basis points in May 2020, according to data compiled by Bloomberg.“That’s a positive sign that the market as a whole sees value in New York City’s credit,” said Neil Klein, co-director of fixed income strategy at Carret Asset Management. “And we agree. We own New York City bonds and we don’t feel compelled to be a seller.”The city has slowly reopened bars, restaurants, museums and sporting venues. De Blasio is betting that tourism will continue to pick up as more businesses and cultural institutions expand their capacities. Governor Andrew Cuomo, who has ultimate reopening authority, said Thursday he’s hoping the city can fully reopen before de Blasio’s July 1 date, but isn’t making any promises.“This is going to be the summer of New York City,” de Blasio said Thursday during a press briefing. “We’re all going to get to enjoy this city again, and people are going to flock here from all over the country to be a part of this amazing moment.”Still, Pollack is sticking mostly with New York City’s shorter-term securities because there are risks to the city’s commercial real estate market as people may continue to work remotely even post-pandemic.“What happens a couple of years from now, when all the dust settles and we really go back to a pre-pandemic environment?” Pollack said. “Will people still be congregating in large urban centers like they did before?”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. Business Bloomberg 210429 11h50m U.S Stocks Climb as Investors Weigh Earnings, GDP: Markets Wrap (Bloomberg) -- U.S. stocks rose in choppy trading as investors digested the latest batch of corporate earnings and data that showed the American economy gained steam in the first three months of the year.Apple Inc. erased a gain of as much as 2.6% amid concern that the iPhone maker may not sustain growth after a blockbuster quarter as it faces a tightening supply of chips. Weak earnings dented Ford Co. and EBay Inc. Facebook held its post-earning gains, surging to a record after after its sales dwarfed estimates.The S&P 500 was on track toward a record after briefly turning negative in afternoon trading. The tech-heavy Nasdaq 100 fluctuated between a gain of more than 1% and a 0.5% decline. The volatility came as investors continued to assess major corporate results that overshadowed signs of a resurgence in the economy. Data released Thursday showed U.S. gross domestic product expanded at a 6.4% annualized rate in the first quarter, while applications for U.S. state unemployment insurance fell last week to a fresh pandemic low.Ford plunged the most since March 2020 after reducing its full-year forecast, also because of a chip shortage. EBay tumbled the most since 2016 on a sales outlook that suggested spending on the site could recede as more people get vaccinated.“It looks like it’s a tug-of-war between those that think the good earnings results we’ve seen are just the beginning of a longer economic and corporate earnings boom and those that believe we are at peak growth and markets are unlikely to go higher from here,” said Chris Zaccarelli, chief investment officer at Independent Advisor Alliance.While the GDP figures may support the Federal Reserve’s strong assessment of the economy, the central bank is in no mood to halt aggressive support as it looks for even further progress in employment and inflation. Chair Jerome Powell on Wednesday dismissed worries about price surges or anecdotes of labor shortage, implying policy makers are prepared to run the economy hot for a while. President Joe Biden unveiled a $1.8 trillion spending plan targeted at American families, adding to the economic optimism.With their plans, the Fed and Biden have delivered a boost to investor sentiment that has see-sawed in recent days between optimism over a string of robust economic data and caution amid high valuations and speculation about stimulus tapering by year-end.“All evidence still points to continued support from both fiscal and monetary policy against a backdrop of accelerating corporate earnings,” said Mark Haefele, UBS Global Wealth Management’s chief investment officer. “This reinforces our view that markets can advance further, with cyclical parts of the market -- such as financials, energy, and value stocks -- likely to benefit most from the global upswing.”Crude oil extended gains on a confident outlook on demand from OPEC and its allies, despite the threat from India’s Covid-19 crisis.These are some of the main moves in markets:StocksThe S&P 500 rose 0.4% as of 1:46 p.m. New York timeThe Nasdaq 100 rose 0.2%The Dow Jones Industrial Average rose 0.3%The MSCI Emerging Markets Index was little changedCurrenciesThe Bloomberg Dollar Spot Index rose 0.1%The euro was little changed at $1.2117The British pound was little changed at $1.3947The Japanese yen fell 0.3% to 108.90 per dollarBondsThe yield on 10-year Treasuries advanced four basis points to 1.65%Germany’s 10-year yield advanced four basis points to -0.19%Britain’s 10-year yield advanced five basis points to 0.84%CommoditiesWest Texas Intermediate crude rose 1.7% to $65 a barrelGold futures fell 0.3% to $1,768 an ounceFor 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. Business Reuters 210429 11h46m UPDATE 1-Brazilian steelmaker CSN "attentive" to M&A opportunities Brazil's Companhia Siderurgica Nacional (CSN) is open to acquisition opportunities in the cement business, two of its executives said on Thursday. CSN's cement director Edvaldo Rabelo said CSN is "attentive to opportunities" after mentioning LafargeHolcim's potential divestiture of its assets in the country during a call with analysts. Chief Executive Officer Benjamin Steinbruch said during the call the company is interested in "potential M&A in the cement business" and could also proceed with the initial public offering of its cements division. Business Reuters 210429 11h20m Ford to decide on India investment plan in second half of 2021 Ford Motor Co expects to firm up capital allocation plans for India in the second half of 2021, a senior executive said in an email to staff, as the automaker overhauls its strategy in a loss-making market. Dearborn, Michigan-based Ford has tasked senior executive Steven Armstrong with evaluating investment plans for India in his new role as transformation officer, South America and India, the automaker said in a separate statement this week. "We have a lot of work to do as we continue to assess our capital allocations in the market," Dianne Craig, president of Ford's International Markets Group (IMG), said in an email to staff on Wednesday, referring to India. Business Reuters 210429 11h18m Analysis: Why Apple has chips for iPhones while Ford got caught short On the same day that Ford Motor Co said it would be able to produce only half as many cars as planned due to a global chip shortage, Apple Inc announced blowout quarterly earnings as smartphone and computer sales soared, with the chip shortage having only a small impact on its business. The contrasting results show how major players in the electronics industry, accustomed to the long time horizons of chip production, have mostly avoided major disruptions from the chip shortage. Apple said Wednesday that it would lose $3 billion to $4 billion in sales in the current quarter due to limited supplies of certain older chips. Business Bloomberg 210429 11h15m U.S. Stocks Fluctuate as Investors Parse Earnings: Markets Wrap (Bloomberg) -- U.S. stocks swung between gains and losses as investors digested the latest batch of corporate earnings and data that showed the American economy gained steam in the first three months of the year.Apple Inc. weighed heavily on the tech-heavy Nasdaq 100, which fell as the iPhone maker erased a gain of as much as 2.6%. Weak earnings dented Ford Co. and EBay Inc. Facebook held its post-earning gains, surging to a record after after it posted sales that dwarfed estimates.The S&P 500 was on track toward a record high after briefly turning negative in afternoon trading. The volatility came as investors continued to digest major corporate results that overshadowed signs of a resurgence in the economy. Data released Thursday showed U.S. gross domestic product expanded at a 6.4% annualized rate in the first quarter and applications for U.S. state unemployment insurance fell last week to a fresh pandemic low.Ford plunged the most since March 2020 after reducing its full-year forecast because of a computer-chip shortage. EBay tumbled the most since 2016 after issuing a sales outlook that suggested spending on the site could recede as more people get vaccinated. Facebook Inc. held gains, surging to a record after it posted sales that dwarfed estimates.“It looks like it’s a tug-of-war between those that think the good earnings results we’ve seen are just the beginning of a longer economic and corporate earnings boom and those that believe we are at peak growth and markets are unlikely to go higher from here,” said Chris Zaccarelli, chief investment officer at Independent Advisor Alliance.While the GDP figures may support the Federal Reserve’s strong assessment of the economy, the central bank is in no mood to halt aggressive support as it looks for even further progress in employment and inflation. Chair Jerome Powell on Wednesday dismissed worries about price surges or anecdotes of labor shortage, implying policy makers are prepared to run the economy hot for a while. President Joe Biden unveiled a $1.8 trillion spending plan targeted at American families, adding to the economic optimism.With their plans, the Fed and Biden have delivered a boost to investor sentiment that had see-sawed in recent days between optimism over a string of robust economic data and caution amid high valuations and speculation about stimulus tapering by year-end.“All evidence still points to continued support from both fiscal and monetary policy against a backdrop of accelerating corporate earnings,” said Mark Haefele, UBS Global Wealth Management’s chief investment officer. “This reinforces our view that markets can advance further, with cyclical parts of the market -- such as financials, energy, and value stocks -- likely to benefit most from the global upswing.”Crude oil extended gains on a confident outlook on demand from OPEC and its allies, despite the threat from India’s Covid-19 crisis.These are some of the main moves in markets:StocksThe S&P 500 rose 0.3% as of 1:12 p.m. New York timeThe Nasdaq 100 was little changedThe Dow Jones Industrial Average rose 0.3%The MSCI World index rose 0.1%Futures on the Nasdaq 100 were little changedThe MSCI Asia Pacific Index was little changedThe MSCI Emerging Markets Index was little changedCurrenciesThe Bloomberg Dollar Spot Index rose 0.1%The euro was little changed at $1.2120The British pound was little changed at $1.3945The Japanese yen fell 0.2% to 108.87 per dollarThe offshore yuan rose 0.2% to 6.4635 per dollarBondsThe yield on 10-year Treasuries advanced four basis points to 1.65%Germany’s 10-year yield advanced four basis points to -0.19%Britain’s 10-year yield advanced five basis points to 0.84%CommoditiesWest Texas Intermediate crude rose 1.7% to $65 a barrelGold futures fell 0.3% to $1,769 an ounceFor 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. Business Bloomberg 210429 11h02m Soy-Shipping Turmoil Deepens With Argentine Minister’s Death (Bloomberg) -- Argentine farmers struggling to ship their crops through increasingly shallow rivers may soon face a new obstacle: One of the world’s key soy waterways needs to be dredged, and there’s no firm plan for who will do it.The government in agricultural powerhouse Argentina has had months -- even years -- to draft the terms of a tender to dredge the Parana River, the source of most of the world’s soy meal for livestock feed and soy oil for cooking and biofuels. But companies eying the new multiyear contract are still in the dark and, compounding the uncertainty, the man in charge of what exactly is up for grabs, ex-Transport Minister Mario Meoni, died in a car crash last week.With the future of millions of tons of crop cargoes at stake, the turmoil couldn’t come at a worse time: Argentina’s soybean and corn harvests are in full swing, and the company holding the expiring contract is working overtime to keep the river channel deep enough for ships to load them as years of dry weather shallow out water levels.Policymakers continue to work under instructions left by ex-minister Meoni, a spokesman for the Transport Ministry said in a phone message, declining to give more details.The contract to dredge the river -- from crop-export hub Rosario down to the estuary at Buenos Aires about 500 miles away -- is currently held by Belgian company Jan de Nul in a partnership with Argentina’s Emepa. Jan de Nul and Emepa’s contract was set to expire on April 30, though the government published a last-minute resolution on Thursday extending it for 90 days. It’s unclear if that gives transport officials enough time to pull a tender together for bidders.Read More: Waterways Are Drying Up in Key South American Crop-Shipping HubsThe partnership has dredged the Parana since 1995, with the last contract extension signed in 2007.Dredging the Parana is worth around $200 million a year in tolls. The recommendation by industry groups is for the new contract to last 15 years, which would mean revenues for the winner of $3 billion.To farmers and agricultural traders who ship 80% of Argentina’s crops down the Parana, the waterway is worth a whole lot more: over $20 billion a year in exports.“We’re pretty worried because river navigation is imperative,” said Gustavo Idigoras, head of Argentina’s crop export and processing group Ciara-Cec, whose members include global agribusiness giants like Bunge Ltd., Cargill Inc. and Glencore Plc.Jan de Nul plans to bid for the new contract without Emepa, which has been embroiled in a corruption scandal. Other companies that have expressed an interest are China’s Shanghai Dredging Company, through local unit Servimagnus, Belgium’s DEME, and two Dutch companies, Van Oord and publicly-traded Boskalis, according to people familiar with the matter.“We are glad that this concession has finally come up for tender and will not be extended again, so that we have a fair chance to bid here,” DEME said in an email.None of the other potential competitors to Jan de Nul immediately replied to emailed requests for comment.From 2019: Sand From Soy Waterway Resurrected for Argentine Shale Push(Adds comment from DEME in penultimate 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. Business Bloomberg 210429 11h01m Transat Rises as Canada Grants $570 Million in Crisis Loans (Bloomberg) -- Transat AT Inc., the Montreal-based vacation operator that Air Canada gave up trying to buy earlier this month, obtained C$700 million ($570 million) in emergency aid from the Canadian government to stay afloat during the pandemic.The company took loan facilities of C$390 million for operations and another C$310 million to finance customer refunds for flights canceled during the pandemic. Transat will also issue 13 million warrants to the government to buy shares at C$4.50 each.Transat shares jumped on the news, rising as much as 13% in Toronto, before paring some of the gains. They were up 4.4% to C$4.73 as of 12:59 p.m.The deal follows a C$5.9 billion rescue package for Air Canada two weeks ago, reflecting Prime Minister Justin Trudeau’s case-by-case approach in supporting the industry. It helps Transat, which announced the suspension of all regular flights on Jan. 29, buy some time in the hope that Covid-19 vaccinations can salvage the summer travel season.“With this support, we now look forward to resuming operations as soon as safe travel is possible and travel restrictions can be lifted,” Chief Executive Officer Jean-Marc Eustache said in a statement. “We will then be able to implement our plan to make Transat a solid and profitable company once again, one that will continue to symbolize leisure travel for its many customers in Quebec and elsewhere.”Unlike the Air Canada bailout, the government isn’t buying shares right away. Transat Chief Financial Officer Denis Petrin told journalists that wasn’t on the table during negotiations. But the warrants may still mean dilution of as much as 25% for existing shareholders.The government doesn’t get all the warrants immediately. They’ll vest as the company draws down the loans. If Transat can repay the money in full in the first year, half of the warrants will be canceled.Still, Transat would like to improve its borrowing costs and is planning to seek help from the Quebec government, which wanted to see federal aid come first before intervening, executives said.Peladeau OfferCanada has barred most foreign travelers from entering the country since last March and has quarantine rules for non-essential workers. Transat, which sells vacation packages to Canadians visiting sun spot destinations in winter and European cities in summer, was hit particularly hard in January when Trudeau asked carriers to halt travel to Mexico and the Caribbean to slow the spread of new variants of the virus.The plan includes restrictions on dividends, stock repurchases and executive compensation and a pledge to keep active employment at current levels. It comes in addition to C$120 million in existing credit facilities.As of April 22, government financing for the airline industry globally, including loans and equity stakes in exchange for cash, has totaled more than $189 billion, according to Ishka Ltd., a London-based aviation finance and investment consultancy.Canada’s latest aid package also removes the urgency for Transat to find a new buyer. Air Canada dropped its takeover because it couldn’t convince European regulators to approve it. Quebec media and cable executive Pierre Karl Peladeau has been urging the company to consider his offer of C$5 a share.Peladeau has maintained his interest but there’s no firm and binding offer yet, according to Eustache. “We are continuing discussions, to get to a formal offer at some point,” he told reporters. “The talks are going very well.”(Updates with comments from the company, share prices)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. Business Yahoo Finance 210429 10h59m Why Warren Buffett invested in Coca-Cola and its lesson Buffett's Coca-Cola trade provides a time-tested lesson for modern investors looking to navigate the pandemic-induced rotation into new sectors and industries Business Reuters 210429 10h15m UPDATE 1-Norwegian Air eyes pre-pandemic European travel demand in 2023-24 Budget airline Norwegian Air expects demand for European short-haul travel to return to pre-pandemic levels in 2023 or 2024, it said as it presented a first-quarter pretax loss of 1.19 billion crowns ($145 million) on Thursday. "It is not expected that demand for short-haul travel in Europe will return to 2019 levels before 2023 or 2024 and so Norwegian will deploy capacity back into the market at a pace that matches this," the airline said in a statement. Financed largely by debt, Norwegian Air grew rapidly as it served routes across Europe and to North and South America, Southeast Asia and the Middle East before the COVID-19 pandemic plunged the airline into crisis. Business Bloomberg 210429 10h14m Cruise Companies Cheer CDC Outline of Quicker Path to Return (Bloomberg) -- Cruise companies expressed relief and optimism after the U.S. Centers for Disease Control and Prevention outlined a new path to the resumption of voyages.According to the new guidance in a letter sent to companies on Wednesday, ships can sail from U.S. ports with paying customers if 95% of guests and 98% of crew are vaccinated, bypassing a previous requirement for starting with trial voyages. In a response provided to Bloomberg News, the agency said it wants to resume U.S. sailings “as soon as possible to maintain the timeline of passenger voyages by mid-July.”On Thursday, Royal Caribbean Cruises Ltd. discussed the letter in its quarterly business update, saying the message had addressed some of the company’s “uncertainties and concerns.” Royal Caribbean said it now sees a pathway to sailing from the U.S. again, including for the Alaska cruise season, which runs until September. The letter from the CDC was previously reported by USA Today.The U.S. cruise industry has been essentially banned from operating via U.S. ports since the beginning of the Covid-19 pandemic in March 2020. The companies have recently ramped up lobbying efforts to win approval for a return, arguing in part that the industry was unfairly singled out for the strictest treatment even as other tourism businesses have returned in some fashion.CDC ChecklistTechnically, the CDC lifted its hard ban on cruising in October, but it replaced it with a checklist for restarting cruises that no operator has yet managed to complete. The industry had previously criticized the conditional sailing order as overly burdensome and out of touch with the new reality since the arrival of Covid inoculations. Florida, where the major cruise companies are headquartered, even sued the federal government to hasten the return of the industry.But Royal Caribbean said the recent discussions with the CDC have turned more productive.“They have dealt with many of these items in a constructive manner that takes into account recent advances in vaccines and medical science,” Royal Caribbean Chief Executive Officer Richard Fain said Thursday during the company’s first-quarter business update.The company reported revenue totaling $42 million, which was slightly better than expected by analysts tracked by Bloomberg.It said it has started to spend slightly more cash to cover expenses related to restarting the fleet. Royal Caribbean also noted that cumulative advanced bookings for the first half of 2022 are “within historical ranges and at higher prices” to its 2019 pre-pandemic baseline.Capacity GoalsJason Liberty, chief financial officer of Royal Caribbean, said the company had already planned to operate at about 19% of its typical capacity, with sailings originating from Singapore, Europe and several Caribbean nations. The new rules could allow it to bring more than half its capacity online by the end of the summer.“Our goal is get the majority of our fleet back up and running by the end of the year so that 2022 looks like a normal period,” he said in an interview Thursday.The Miami-based company is working with federal authorities and the Canadian government to allow Alaskan sailings. Federal law requires that cruise ships, which are typically registered in other nations, stop in a foreign port before returning to the U.S., and Canada isn’t allowing such arrivals.Royal Caribbean said that it has carried more than 125,000 guests since cruises resumed overseas and only 21 people have tested positive for Covid-19.Royal Caribbean’s shares rose as much as 5.7% to $92.45 in New York trading, though the stock turned negative later in the session. Carnival Corp., the industry market-share leader, rose as much as 4.8%, and Norwegian Cruise Line Holdings Ltd. advanced as much as 7.1%.(Updates with CDC response in second paragraph. An earlier version of this story corrected a revenue figure.)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. Business Bloomberg 210429 10h12m Saudi Arabia Considers Starting Homegrown Electric-Car Maker (Bloomberg) -- Saudi Arabia has hired advisers including Boston Consulting Group to explore establishing its own domestic electric-car maker, according to people familiar with the matter.The project is linked to existing plans to build up automotive infrastructure in the country and boost local manufacturing, said the people, who asked not to be identified because the deliberations aren’t public.A spokesperson for Saudi Arabia’s sovereign-wealth fund said it is committed to stoking growth and diversifying the kingdom’s oil-reliant economy while declining to comment on specific projects.The $400 billion Public Investment Fund has been active in the electric-vehicle space going back several years. It acquired a small stake in Tesla Inc. in 2018, and officials discussed supporting Elon Musk’s efforts to take the company private until the chief executive officer tweeted about his ambitions. The PIF sold almost all its Tesla shares before an epic rally that began in late 2019, though it’s now sitting on big gains from an investment in rival Lucid Motors Inc.The PIF and Lucid have been in talks about building a factory near the Red Sea city of Jeddah, people familiar with the matter told Bloomberg News in January. The following month, the carmaker reached an agreement to merge with a special-purpose acquisition company and go public.The emergence of battery-powered cars has inspired a range of new-vehicle projects from startups to state-owned enterprises such as Turkey’s Togg, which plans to launch several EVs in the coming years. While Saudi Arabia has more resources to shower on a project of its own, any new automaker would face a broad range of competitors sprouting up around the globe.Saudi Arabia aims to agree on deals this year or next to expand local manufacturing, the head of the kingdom’s wealth fund, Yasir Al-Rumayyan, said during a briefing in Riyadh on Jan. 26.“Now we’re in the process of looking at electric appliances,” he said. “In relation to cars, there is more than one project that we’re now looking at, and they will be executed this year or next year at the latest.”(Updates with PIF comment in the second 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. Business Bloomberg 210429 10h12m Stocks Erase Gains After Touching Record on GDP: Markets Wrap (Bloomberg) -- Tech shares led U.S. stocks lower after Apple Inc. gave up an earlier advance and weak earnings dented Ford Co. and EBay Inc.The S&P 500 fell to session lows as investors continued to digest major corporate results that overshadowed data showing the American economy accelerated last quarter. U.S. gross domestic product expanded at a 6.4% annualized rate in the first quarter, according to the Commerce Department. While the GDP figures may support the Federal Reserve’s strong assessment of the economy, the central bank is in no mood to halt aggressive support as it looks for even further progress in employment and inflation. Chair Jerome Powell on Wednesday dismissed worries about price surges or anecdotes of labor shortage, implying the central bank is prepared to run the economy hot for a while. President Joe Biden unveiled a $1.8 trillion spending plan targeted at American families, adding to the economic optimism.“All evidence still points to continued support from both fiscal and monetary policy against a backdrop of accelerating corporate earnings,” said Mark Haefele, UBS Global Wealth Management’s chief investment officer. “This reinforces our view that markets can advance further, with cyclical parts of the market -- such as financials, energy, and value stocks -- likely to benefit most from the global upswing.”With their plans, the Fed and Biden have delivered a boost to investor sentiment that had see-sawed in recent days between optimism over a string of robust economic data and caution amid high valuations and speculation about stimulus tapering by year-end. A separate report on Thursday showed applications for U.S. state unemployment insurance fell last week to a fresh pandemic low as more Americans get vaccinated and return to work.Crude oil extended gains on a confident outlook on demand from OPEC and its allies, despite the threat from India’s Covid-19 crisis. Copper topped $10,000 a metric ton for the first time since 2011.These are some of the main moves in markets: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. World Reuters 210429 10h10m Basildon to Bergamo: Euronext data move seen as headache for traders Euronext's decision to move its huge data centre from Britain to Italy because of Brexit could mean a costly headache for banks and other stock traders who measure competitiveness in nanoseconds. The pan-European bourse said on Thursday it would move its data centre from Basildon, a town east of London, to Bergamo near the Italian financial capital of Milan in the second quarter of 2022. Bergamo is where Borsa Italiana has a disaster recovery site, and Euronext completed its acquisition of the Milan exchange on Thursday and is keen to show Italy the takeover's benefits. Health Yahoo Finance Video 210429 10h10m Doctor: Travel ban from India to the U.S. could be 'counterproductive' Center for Vaccine Development at Texas Children’s Hospital Co-Director and National School of Tropical Medicine at Baylor College of Medicine Dean Dr. Peter Hotez joins Yahoo Finance Live to discuss the latest COVID-19 CDC guidelines. U.S. Bloomberg 210429 10h08m Oracle Exec’s Twitter Account Blocked Over Reporter Doxxing (Bloomberg) -- Twitter Inc. temporarily suspended an Oracle Corp. executive from posting after he used the social network to publicize the email and Signal phone number of a journalist whose reporting he found objectionable.Oracle Executive Vice President Ken Glueck posted the information about the Intercept’s Mara Hvistendahl as part of a debate over her story claiming Chinese resellers are distributing Oracle technology to government entities building China’s surveillance systems. Glueck posted a lengthy rebuttal to the piece, in which he asked anyone with information about the reporter to contact him via email.When Hvistendahl tweeted Glueck’s request for information about her and the email account he provided in it, he responded with a Tweet sharing her email and a Signal phone number for her, according to a report by Gizmodo. Twitter has since blocked the tweet, saying the post broke its rules against sharing personal information, a practice called doxxing that is often used to encourage harassment.“Mara published my email address first thing this morning. I responded with her tip-line Signal and Protonmail (the same one she tweets regularly),” Glueck wrote Wednesday in an emailed response. “She reported it as a violation, I didn’t really care enough to report her back. The facts speak for themselves.”Twitter said Glueck’s account is banned from posting until he deletes the offending tweet, then is subject to a 12-hour time-out period.Hvistendahl said she didn’t report Glueck’s tweet.“Ken Glueck has published two lengthy blog posts that attack me, but Oracle has not refuted my central finding, which is that the company marketed its analytics software for use by police in China,” Hvistendahl said via email. “With both of my stories, The Intercept published a contact box seeking tips from people with knowledge of Oracle’s work in China and elsewhere. But a journalist asking for information about a major tech company is different from a tech company asking for information about the journalist who is investigating it.”(Updates with reporter’s additional comments in the 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. Business Bloomberg 210429 10h08m Vitol Is Near $1 Billion-Plus Deal for Hunt’s Permian Oil Wells (Bloomberg) -- Vitol Group is said to be near a purchase of Hunt Oil Co.’s Permian Basin oil wells in what would mark the biggest independent crude trader’s first major acquisition of U.S. production assets, according to people with knowledge of the matter.The deal could be announced in coming days, said the people, who asked not to be named because the talks are private. Hunt’s assets may command more than $1 billion, one of the people said.Vitol set up a Houston-based venture called Vencer Energy LLC last year with a mandate to acquire oil and natural gas assets in the U.S. The country became a key export hub for the commodities trader after a ban on exporting crude was lifted in 2015 due to the relentless growth of shale production from the Permian and other basins.A spokeswoman for closely held Hunt declined to comment. A Vitol spokesperson in London declined to comment. Outside of the Permian region, Hunt also has investments in the Bakken, Eagle Ford and Marcellus shale basins, as well as Peru and Yemen. Conventional WellsVitol’s focus in the U.S. is on “mature, producing” wells, the company said in July. Chief Executive Officer Russell Hardy confirmed the strategy in an interview this month.“We remain of the view that those conventional assets have got a role to play,” he said, using the industry term for non-shale output. “The U.S. export market is an important market and it’s still a sensible area for us to invest in.”Vitol, which handles about 7 million barrels of crude and fuels a day, has major upstream investments in Ghana, as well as smaller investments in Russia and former Soviet states including Azerbaijan, Kazakhstan and Ukraine. It’s also one of the biggest exporters of U.S. oil.The Rotterdam-based company, which has major trading offices in Geneva, Houston and Singapore, has also been bulking up on renewable-energy assets including wind and solar arrays that account for about 20% of total assets.“Equally, we’re putting a lot of effort into the renewables space and the transitional space,” Hardy said during the interview. Vitol doesn’t expect oil demand to peak until 2030 and has taken a bullish view on crude demand roaring back later this year and into 2022 as the pandemic recedes.(Updates with other Hunt assets in fourth paragraph. A previous version of this story corrected headline to note talks are for assets rather than entire company.)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. Business Reuters 210429 09h16m EMERGING MARKETS-Chilean, Mexican FX lead Latam losses as Treasury yields rise * Credit conditions in Brazil improved in March- C.bank * Treasury yields hit 2-week high By Shashank Nayar April 29 (Reuters) - Latin American currencies fell on Thursday as a jump in U.S. Treasury yields and a stronger dollar outweighed strength in commodity prices, while regional stocks hovered around three-month highs. Mexico's peso dropped 0.9%, while Chile's peso shed 1.2%, leading losses across Latam despite expectations of improving demand pushing up oil and copper prices. Business Bloomberg 210429 09h14m Copper Extends Rally to Top $10,000 With All-Time High in Sight (Bloomberg) -- Copper topped $10,000 a metric ton for the first time since 2011, nearing the all-time high set that year as rebounding economies stoke demand and mines struggle to keep up.Prices rose as much as 1.3% to $10,008 a ton on the London Metal Exchange, before slipping back to trade near unchanged. The metal hit a record $10,190 in February 2011. Copper has been among the best performers in a month where metals ranging from aluminum to iron ore have surged to the highest in years. The rally is being fueled by stimulus measures, near-zero interest rates and signs that economies are recovering from the virus pandemic. A push toward cleaner energy sources is also seen boosting consumption of copper, used in everything from electric vehicles to solar power systems, further straining supplies.“This is a remarkable run for copper in terms of magnitude and consistency,” said Tai Wong, head of metals derivatives trading at BMO Capital Markets. “The all-time high at $10,190 is just around corner and now practically a foregone conclusion.”Investors have piled into copper, with aggregate open interest in Shanghai Futures Exchange copper contracts at the highest in more than a year and hedge fund managers boosting bullish Comex copper bets in the week ended April 20.With copper demand set to soar once more, there are mounting concerns that producers will struggle to plug the gap as they battle a host of technical and regulatory pressures. In the longer term, producers worry that plans to boost mining royalties could stifle investment.Prices have doubled from lows in March, along with a surge across raw materials from oil to agriculture. That’s spurring debate about whether the current boom may herald a so-called commodities supercycle. It has also helped push mining shares to multiyear highs.Copper pared earlier gains as the dollar gained, reducing the appeal of the metal for investors holding other currencies.“The copper rally still has legs to go,” said Wenyu Yao, senior commodities strategist at ING Bank. “The outlook for the U.S. economy keeps getting better. Economic reopening coupled with massive stimulus, faster-than-expected vaccine rollouts and supportive fundamentals all point to even higher prices.”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. Business Yahoo Finance 210429 09h09m Stock market news live updates: Stocks drift after hitting record highs as traders eye Biden's plans, earnings Stocks rose to record levels Thursday as investors considered a batch of stronger-than-expected earnings results from major companies and a sweeping set of proposals from President Joe Biden aimed at revamping the country's infrastructure and supporting families, children and students. Business Bloomberg 210429 09h08m Stocks Pare Gains After Touching Record on GDP: Markets Wrap (Bloomberg) -- U.S. equities pared gains after climbing to record highs as investors assessed a batch of corporate earnings and economic data that showed the American economy gained steam in the first three months of the year.U.S. gross domestic product expanded at a 6.4% annualized rate in the first quarter, according to the Commerce Department. The Nasdaq 100 snapped a two-day streak of losses, climbing more than 1% to a record before pulling back in late-morning trading. The S&P 500 hovered around its all-time high. Gains in Facebook Inc. and Apple Inc. helped prop up both gauges after their earnings results beat Wall Street’s estimates.While the GDP figures may support the Federal Reserve’s strong assessment of the economy, the central bank is in no mood to halt aggressive support as it looks for even further progress in employment and inflation. Chair Jerome Powell on Wednesday dismissed worries about price surges or anecdotes of labor shortage, implying the central bank is prepared to run the economy hot for a while. President Joe Biden unveiled a $1.8 trillion spending plan targeted at American families, adding to the economic optimism.“The economic recovery is on firm footing,” said Keith Lerner, chief market strategist at Truist Advisory Services. “As we move into the summer months as we more fully reopen, I think the economy is still spring-loaded into the second half.”With their plans, the Fed and Biden have delivered a boost to investor sentiment that had see-sawed in recent days between optimism over a string of robust economic data and caution amid high valuations and speculation about stimulus tapering by year-end. A separate report on Thursday showed applications for U.S. state unemployment insurance fell last week to a fresh pandemic low as more Americans get vaccinated and return to work.Facebook surged the most in five months after it posted sales that dwarfed estimates on the back of a 10% growth in active users. Apple rose for the first time in three days after its quarterly revenue crushed expectations on strong sales of the 5G iPhone 12 line, iPads and Macs. Merck & Co. dropped the most since June after posting earnings below expectations as a surge in Covid-19 deterred many patients from seeking routine care.Crude oil extended gains on a confident outlook on demand from OPEC and its allies, despite the threat from India’s Covid-19 crisis.These are some of the main moves in markets:StocksThe S&P 500 rose 0.3% as of 11:05 a.m. New York timeThe Nasdaq 100 rose 0.3%The Dow Jones Industrial Average was little changedThe MSCI Emerging Markets Index was little changedCurrenciesThe Bloomberg Dollar Spot Index rose 0.2%The euro was little changed at $1.2116The British pound rose 0.1% to $1.3953The Japanese yen fell 0.3% to 108.95 per dollarBondsThe yield on 10-year Treasuries advanced five basis points to 1.66%Germany’s 10-year yield advanced four basis points to -0.19%Britain’s 10-year yield advanced five basis points to 0.85%CommoditiesWest Texas Intermediate crude rose 1.4% to $65 a barrelGold futures fell 0.3% to $1,768 an ounceFor 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. Business Reuters 210429 09h06m UPDATE 1-Danone aiming to recruit new CEO soon - executive French food group Danone is making swift progress in its search for a new chief executive and hopes to come to a decision soon, Jean-Michel Severino, the head of Danone's governance committee said on Thursday. Former Chairman and CEO Emmanuel Faber was ousted by Danone's board in March. A source close to the matter had told Reuters this month that Danone was aiming to narrow its shortlist to two names in May. Business Reuters 210429 09h05m Blocking Google class action would deny justice, UK court told Blocking a proposed British class action against Google, that alleges it secretly tracked millions of iPhone users a decade ago, risks allowing big firms to behave with impunity, a lawyer told the Supreme Court on Thursday. Hugh Tomlinson, a lawyer for former consumer rights champion and class representative Richard Lloyd, told senior judges that although the case was "novel and innovative", it was an appropriate way to ensure access to justice and compensation. "If we are wrong about this, there is no civil remedy," Tomlinson told the final day of a two-day hearing, adding that pursuing Google with a U.S.-style class action was the only way to attract the necessary commercial funding for a claim. Business Bloomberg 210429 09h00m Congress Urged to Use Muni Tax Breaks to Help Black Colleges (Bloomberg) -- Here’s one way the federal government could help America’s black colleges and universities: expand the market for their tax-exempt bonds.Christopher Parsons, a University of Southern California finance professor who found that such schools face higher costs in the bond market than others, told a panel of the House Financial Services Committee Wednesday that making their debt exempt from all state and local income taxes nationwide would help reduce their financing bills.That step, which is backed by Wall Street trade groups, would broadly expand the buyer base for their bonds beyond their home states, largely in the U.S. south. Municipal-debt investors typically buy bonds from local borrowers to ensure that the federally tax-exempt income isn’t taxed by the state either.“The effect of this policy would to be remove the tax disadvantages an investor living in, for example, New York or California currently faces when potentially investing in an HBCU-issued bond from another state,” Parsons said at a hearing focused on the role of the municipal-bond market in economic, racial and social justice.The tactic would significantly expand the pool of potential bond buyers nationwide, including to states such as California and New York where the higher tax rates may leave investors willing to accept lower yields than investors elsewhere. Such tax treatment helped to create a nationwide market for Puerto Rico’s debt.The Securities Industry and Financial Markets Association supports extending the tax-exemption for the historically Black schools, board member Gary Hall, a partner at underwriter Siebert Williams Shank & Co., testified during the hearing. He said it would increase demand, result in better pricing and fit with the market’s “strong appetite” for social-impact bonds, a subset of the environmental, social and governance market. President Joe Biden has pushed for greater funding for historically black colleges and universities, many of which were contending with sliding enrollment and financial pressures even before the pandemic shutdowns hit Black Americans disproportionately hard. The spending plan that Biden unveiled on Wednesday included a $39 billion program to subsidize tuition for students from families earning less than $125,000 at HBCUs and related institutions, among other measures.Related story: A Hedge Fund, a Bond Default and a College’s Fight to SurviveThe idea of expanding the tax breaks for buyers of bonds sold by such schools was previously proposed in Congress but failed to advance. The Bond Dealers of America, another securities industry lobbying group, said it’s in favor of it.“HBCUs traditionally have faced hurdles accessing public and private market financing as efficiently as some other peer institutions,” the group said in a statement to the subcommittee. “HBCUs play a vital role in our higher education system, and it is important that HBCUs have efficient and ready access to capital to finance investments.”(Updates with impact of social impact bonds 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. Business Reuters 210429 08h15m US STOCKS-S&P 500, Nasdaq hit record highs on tech earnings boost, upbeat data The S&P 500 and Nasdaq indexes hit record levels on Thursday after stellar earnings from Apple and Facebook powered a rally in tech stocks, while upbeat economic data supported bets of a swifter economic recovery. Apple Inc gained 1.0% after posting sales and profits ahead of Wall Street estimates, led by much stronger-than-expected iPhone and Mac sales. Business Bloomberg 210429 08h15m Caterpillar Says Chip Shortage May Hurt Equipment Deliveries (Bloomberg) -- Caterpillar Inc. is warning of potential impacts ahead due to a global chip shortage, putting a damper on better-than-expected earnings for the world’s biggest maker of mining and construction equipment.“Although we haven’t been impacted yet, the global semiconductor shortage may have an impact later this year,” Chief Financial Officer Andrew Bonfield said in a Thursday interview. “It’s a risk and obviously we’re keeping a close eye on it.”The cautionary words come after Caterpillar posted first-quarter revenue and profit that topped analysts’ estimates, in what Bonfield described as “very strong performance” for the start of the year fueled by construction growth in the U.S. and China.Caterpillar joins some of the world’s biggest automakers and tech giants in highlighting the impacts of a chip shortage that’s already caused Honda Motor Co. to halt output at Japanese plants and Apple Inc. and Samsung Electronics Co. in flagging production cuts and lost revenue.The shortfall comes as Caterpillar expects a big ramp up in machinery production through the rest of the year. While the company has been able to mitigate the issue so far, Bonfield said such shortages could mean Caterpillar may not be able to fully meet demand from its customers this year.Caterpillar’s quarterly results surpassed Wall Street’s expectations, with sales jumping 12% to $11.9 billion in the period and per-share adjusted earnings of $2.87 topping the $1.95 a share average estimate of analysts’ estimates compiled by Bloomberg.Shares of Caterpillar fell 2.3% to $226.99 at 10:09 a.m. trading in New York.Caterpillar has been riding high on expectations for a sales recovery, with the stock coming off its best quarter in more than a decade in a bet on improving orders amid mass vaccine rollouts and signs of rebounding industrial demand.Other Takeaways:With global metal prices surging to multi-year and all-time highs, Caterpillar’s CEO said during an earnings call that the company is seeing a “gradual” improvement in the pace of mining equipment sales.Construction in the U.S. and China remain the brightest spots for the company. Management said demand will continue growing in the U.S. while staying strong in China. Still, the company said they expect the second half to be more challenging in China because the Asian nation began recovering much sooner than the rest of the world.Dealer inventories grew, but executives don’t expect a “significant” increase through the rest of the year and the focus remains on producing closely to consumer demand.Caterpillar again chose not to give a full-year outlook, saying that uncertainty around the globe still remains, making it difficult to give specific forecasts for investors. The underlying message is that the recovery is real, but the pandemic is still a factor.(Adds key takeaways from earnings call, and share decline)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. Politics Yahoo Finance 210429 08h14m US can build 'coalition of the willing' against China: former Obama advisor Jason Furman, who headed the Council of Economic Advisors during the Obama years, told Yahoo Finance that the international community’s approach to Huawei serves as an example. Business Reuters 210429 08h10m UPDATE 1-U.S. FDA proposes ban on menthol cigarettes, faces challenges The U.S. Food and Drug Administration on Thursday proposed a ban on menthol cigarettes in the United States, a win for anti-tobacco and civil rights groups, but a move that could erase a huge chunk of sales for cigarette manufacturers. The FDA is working toward issuing proposed product standards within the next year to ban menthol as a flavor in cigarettes and ban all flavors in cigars, the agency said. The ban is likely to take years to implement amid possible legal challenges from the tobacco industry, which has repeatedly went up against the FDA to try and block anti-tobacco regulation. Business Reuters 210429 08h09m UPDATE 1-Russia's Polyus becomes world's largest gold miner by reserves Russia's largest gold producer Polyus on Thursday said that its total proved and probable ore reserves had risen by 71% to 104 million troy ounces of gold at the end of 2020 due to inclusion of reserves at its giant Sukhoi Log deposit. "Polyus is now confirmed to have the largest reserve base globally, with approximately 97% of these reserves attributable to our operating mines and our flagship greenfield project, Sukhoi Log," Polyus CEO Pavel Grachev said in a statement. Polyus was previously the world's third-largest gold miner by reserves behind Newmont and Barrick. U.S. Reuters 210429 08h08m U.S. FDA proposes ban on menthol cigarettes, faces challenges The FDA is working toward issuing proposed product standards within the next year to ban menthol as a flavor in cigarettes and ban all flavors in cigars, the agency said. The ban is likely to take years to implement amid possible legal challenges from the tobacco industry, which has repeatedly went up against the FDA to try and block anti-tobacco regulation. Business Reuters 210429 08h06m GM will launch recall fix for 69,000 Bolt EVs General Motors Co said Thursday it has completed a software update to address a recall of nearly 69,000 Chevrolet Bolt electric vehicles for fire risks and will replace battery module assemblies as necessary. The largest U.S. automaker announced the recall in November after five reported fires and two minor injuries covering 2017-2019 model year Chevrolet Bolt EVs with high voltage batteries produced at LG Chem Ltd's Ochang, South Korea facility. GM said dealers will use "diagnostic tools to identify potential battery anomalies and replace battery module assemblies as necessary." Business Reuters 210429 08h00m GM will launch recall fix for 69,000 Bolt EVs General Motors Co said Thursday it has completed a software update to address a recall of nearly 69,000 Chevrolet Bolt electric vehicles for fire risks and will replace battery module assemblies as necessary. The largest U.S. automaker announced the recall in November after five reported fires and two minor injuries covering 2017-2019 model year Chevrolet Bolt EVs with high voltage batteries produced at LG Chem Ltd's Ochang, South Korea facility. GM said dealers will use "diagnostic tools to identify potential battery anomalies and replace battery module assemblies as necessary." Business Bloomberg 210429 07h58m U.S. Stocks Climb to Record Highs on GDP, Earnings: Markets Wrap (Bloomberg) -- U.S. equities climbed to all-time highs after a batch of corporate earnings and economic data showed the American economy gained steam in the first three months of the year.U.S. gross domestic product expanded at a 6.4% annualized rate in the first quarter, according to the Commerce Department. The S&P 500 traded at fresh record. Apple Inc. and Facebook Inc. rallied after their earnings results surged past Wall Street’s estimates, helping push the Nasdaq 100 to an all-time high. The 10-year U.S. Treasury yield was on track toward its biggest weekly increase since early March. While the GDP figures may support the Federal Reserve’s strong assessment of the economy, the central bank is in no mood to halt aggressive support as it looks for even further progress in employment and inflation. Chair Jerome Powell on Wednesday dismissed worries about price surges or anecdotes of labor shortage, implying the central bank is prepared to run the economy hot for a while. President Joe Biden unveiled a $1.8 trillion spending plan targeted at American families, adding to the economic optimism.“The economic recovery is on firm footing,” said Keith Lerner, chief market strategist at Truist Advisory Services. “As we move into the summer months as we more fully reopen, I think the economy is still spring-loaded into the second half.”With their plans, the Fed and Biden have delivered a boost to investor sentiment that had see-sawed in recent days between optimism over a string of robust economic data and caution amid high valuations and speculation about stimulus tapering by year-end. A separate report on Thursday showed applications for U.S. state unemployment insurance fell last week to a fresh pandemic low as more Americans get vaccinated and return to work.Facebook surged the most in five months after it posted sales that dwarfed estimates on the back of a 10% growth in active users. Apple snapped a two-day losing streak after its quarterly revenue crushed expectations on strong sales of the 5G iPhone 12 line, iPads and Macs. Merck & Co. slipped fell the most since January after posting earnings below expectations as a surge in Covid-19 deterred many patients from seeking routine care.In Europe, the benchmark Stoxx 600 gauge moved closer to a record reached earlier in April. Personal-care shares climbed after Unilever delivered a sales beat and announced a share buyback. Oil giants Total SE and Royal Dutch Shell Plc boosted their sector after reporting better-than-forecast profits.Crude oil extended gains on a confident outlook on demand from OPEC and its allies, despite the threat from India’s Covid-19 crisis. Copper rose for a fifth day. The Bloomberg Commodity Index increased for a ninth day, nearing a three-year high on a closing basis.These are some of the main moves in markets:StocksThe S&P 500 rose 0.7% as of 9:47 a.m. New York timeThe Nasdaq 100 rose 0.9%The Dow Jones Industrial Average rose 0.4%The Stoxx Europe 600 rose 0.2%The MSCI Emerging Markets Index rose 0.2%CurrenciesThe Bloomberg Dollar Spot Index rose 0.2%The euro was little changed at $1.2114The British pound rose 0.1% to $1.3950The Japanese yen fell 0.5% to 109.19 per dollarBondsThe yield on 10-year Treasuries advanced six basis points to 1.67%Germany’s 10-year yield advanced four basis points to -0.19%Britain’s 10-year yield advanced six basis points to 0.85%CommoditiesWest Texas Intermediate crude rose 2.2% to $65 a barrelGold futures fell 0.3% to $1,768 an ounceFor 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. Business Reuters 210429 07h54m GRAPHIC-Euro area bonds "next shoe to drop" as vaccinations accelerate Euro area government bonds have notched up their worst monthly performance against U.S. Treasuries in a year and investors are bracing for a bigger sell-off over coming months as the pace of vaccination finally picks up across the bloc. Ten-year U.S. Treasuries' yield premium over equivalent German bonds, a gauge often used to measure differences in economic outlook, shrank in April by the most since last March. Business Bloomberg 210429 07h53m Bank of America, Citi Risk Hit to Their Texas Businesses Over Gun Policies (Bloomberg) -- Bank of America Corp. and Citigroup Inc., the top two underwriters in the $3.9 trillion municipal bond-market, are at risk of getting shut out of Texas because of a push by Republican state lawmakers to punish the banks for their restrictive gun policies.The legislation, Senate Bill 19, would block government entities from contracting with banks and other financial services providers that have policies that restrict business with the firearms industry. Under the bill, companies with 10 employees or more seeking a government contract worth at least $100,000 would have to verify in writing that they do not have a policy or directive that “discriminates” against the firearms or ammunition industries.It’s targeted at large banks and financial institutions that have attempted to “use financial pressure to infringe upon our Second Amendment rights,” according to a statement from the sponsors in an analysis of the bill. The legislation is in flux: it already passed the state Senate and is pending in the Texas House of Representatives. While a House companion bill includes language that would exempt debt sales and the “deposit or investment of funds,” the author in that chamber didn’t pursue adding that exemption in the Senate version. “Any company that uses financial pressure in order to limit Texans’ ability to purchase guns or ammunition should not be tolerated,” Senator Charles Schwertner, an author of the legislation, said in a committee hearing on the bill earlier this month.The Texas move to punish the banks comes as Republicans nationally have criticized companies for stepping into politics. Senate Minority Leader Mitch McConnell said corporate executives should “stay out of politics” in response to the backlash against a Georgia law that limits voting access.BlackRock’s Fink, Buoyed by Record Inflows, Vows ‘Loud’ ActivismIf the Senate version is enacted, the law could hurt the banks’ municipal underwriting businesses in Texas, a huge market for state and local debt deals. Texas-based borrowers sold more than $58 billion of bonds in 2020, the second-most of any state behind California, according to data compiled by Bloomberg. As part of bond offerings, borrowers often hire banks ahead of time and pay them a fee for underwriting the sales.Elizabeth Reich, chief financial officer of Dallas, said the bill could have wide-ranging impacts on the city, including limiting competition for its debt sales. The bill could also affect banking relationships: Dallas had $257 million in deposit with Bank of America at the end of February, she said.“If I’m limited in who I can do business with and talk to and engage with, that’s going to raise my costs and increase the cost to the taxpayers,” she said.The banks announced policies that set restrictions on the firearms industry in 2018 after a shooting at Marjory Stoneman Douglas High School in Parkland, Florida, left 17 people dead. Citigroup said it would prohibit retailers that are customers of the bank from offering bump stocks or selling guns to people who haven’t passed a background check or are younger than 21.Bank of America also announced in 2018 it would stop making new loans to companies that make military-style rifles for civilian use. Its policy came after dozens of employees lost family members or suffered other trauma related to mass shootings in the past few years.Gun-friendly Texas has become important to the National Rifle Association, which filed for bankruptcy protection this year and said it would move to the state. In an article this month, the Institute for Legislative Action, an NRA lobbying arm, celebrated “pro-Second Amendment” legislation in Texas, including the legislation targeting the banks.BofA Says 151 Employees Were Affected by Mass Shootings in U.S.‘Discriminatory’ PoliciesIt’s unclear how wide-reaching the law would be, and there could be further changes to the language. The legislation would affect governmental entities, which Texas government code defines as state agencies, as well as political subdivisions like counties, municipalities and school districts -- a potentially wide swath of muni borrowers.Giovanni Capriglione, the lawmaker who authored the House bill, said in a written response to questions from Bloomberg News that he proposed the bill because of a shortage of ammunition in the state “caused by discriminatory policies implemented by banks.”“It is estimated that over 26,000 Texans are employed by this industry and they account for about $4.5 billion in economic impact,” Capriglione said. “If these businesses can’t operate because banks refuse to provide them with access to essential services, then the state loses these jobs and the economic impact they provide.”Capriglione confirmed that banks’ underwriting business would be affected by Senate Bill 19.Dan Patrick, the lieutenant governor who wields strong influence in the Texas legislature, said in a statement this month that he’s supportive of the Senate bill, citing the Second Amendment. A spokesperson for his office did not respond to a request for comment. The NRA lobbying arm’s article said that the bill was prioritized by Patrick.It’s not the first time that Republican state officials have sought to punish the two banks for their gun policies. In 2018, Louisiana officials voted to ban Bank of America and Citigroup from working on a debt sale.“No one can convince me that keeping these two banks in this competitive process is worth giving up our rights,” Louisiana State Treasurer John Schroder said in a statement at the time.Texas ImpactTexas offers big business in the $3.9 trillion municipal bond market. The state’s booming population makes it ripe for future sales as the need for new roads, schools and other infrastructure projects mounts.The bill could cut off Texas muni issuers from the two biggest banks in the state and local debt market. Citigroup was the biggest underwriter of Texas muni-bond sales in 2020, credited with managing more than $6 billion of sales, and Bank of America was ranked as the fifth-biggest last year, credited with managing about $3.8 billion of bonds, according to data compiled by Bloomberg.Overall, Bank of America and Citigroup are the two biggest municipal underwriters, managing a combined 25% of long-term state and local debt sales so far this year, according to data compiled by Bloomberg.Spokespeople for both banks declined to comment. SIFMA, a lobbying group for broker-dealers and investment banks, also declined to comment.Kevin Lyons, a spokesperson for the Texas Comptroller of Public Accounts, said in an emailed statement that the office is following the legislation and reviewing its contracts to determine what impact it would have on its services.He said the bill would require state agencies to include a new provision in contracts made after Sept. 1. “If banks (or other entities) do in fact maintain such a policy it will likely be difficult for them to sign off on such a contract in the future,” he said in the statement.(Adds comment from Louisiana officials in 18th 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. Business Bloomberg 210429 07h51m Family Office for $90 Billion Fortune Reshapes Consumer Bets (Bloomberg) -- Mousse Partners, the family office for one of the world’s largest fortunes, is reshaping one of its biggest bets.The investment firm for the family behind luxury brand Chanel has sold most of its stake in Ulta Beauty Inc., an investment held for at least 14 years that’s returned more than 1,700%.Since late March, the firm that manages the wealth of Alain and Gerard Wertheimer sold shares in the cosmetics retailer worth about $480 million, according to data compiled by Bloomberg. The New York-based family office meanwhile this month increased its stake in rival Beautycounter and was part of a funding round for fast casual restaurant chain Cava.Mousse Partners is one of the world’s largest and most discrete family offices. It has been run for more than two decades by Charles Heilbronn, half-brother of Alain and Gerard, who are credited with owning equal shares of the London-based luxury empire built on No. 5 perfume, the little black dress and the genius of designer Karl Lagerfeld.Venture CapitalThe public filings are a rare glimpse into an investment firm that manages part of an almost $90 billion fortune. Mousse invests in private equity, real estate and credit, often in the form of venture capital. Since the start of 2020, it has backed communication platform MessageBird, catering company Butler Hospitality and fitness firm Tonal. It also bought a stake in Nature’s Fynd, a food startup producing a protein developed from a volcanic microbe found in Yellowstone National Park.The latest Beautycounter investment was made as Carlyle Group Inc. took a majority stake in the skin-care and cosmetics brand. It valued the company, which sells primarily through the Internet rather than physical locations, at $1 billion.Mousse still controls a stake in Ulta Beauty worth about $150 million. It cut the holding as the shares traded near a record. The Bolingbrook, Illinois-based company’s stock has surged more than 150% since mid-March of 2020.A spokeswoman for Ulta Beauty declined to comment, while Heilbronn didn’t respond to a request for comment through LinkedIn.Mousse employs more than three dozen people in Manhattan, Hong Kong and Beijing. The firm’s recent hires include former investment banking analysts from JPMorgan Chase & Co. and Lazard. Suzi Kwon Cohen joined as chief investment officer in 2016 after leading North America private equity for Singapore’s sovereign wealth fund.Winning BetsHeilbronn has helped run things since the start, placing winning bets on other skin-care and cosmetics companies such as Coty Inc., while also taking stakes in hospitality, furniture and pharmaceutical companies.The family office doesn’t disclose how much money is at its disposal, but Chanel distributed more than $2 billion in dividends in the past five years, according to the Bloomberg Billionaires Index.Heilbronn has been an Ulta Beauty director for more than two decades, with the family investing in the beauty retailer ahead of its 2007 initial public offering.(Updates with Carlyle as Beautycounter investor 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. Business Reuters 210429 07h40m Activist investors post strong returns with board campaigns in first quarter Activist investors have been outperforming their peers and the broader market this year by pushing for board-room changes rather than dramatic business overhauls, breakups or mergers, according to performance data and industry sources. The average activist hedge fund returned 8.76% in the first quarter, ahead of the broader hedge-fund industry's 6% gain and a 5.8% rise in the S&P 500 stock market index, Hedge Fund Research data show. Brand-name firms like Third Point LLC and Engaged Capital, as well as smaller players like Ancora Alternatives and newcomers including Honest Capital LLC, did even better, posting double-digit gains, investors familiar with the numbers said. Business Bloomberg 210428 20h07m Samsung Sounds Note of Caution as Profit Tops Estimates (Bloomberg) -- Samsung Electronics Co. beat analyst estimates for profit in the first quarter, but warned of continued fallout from semiconductor shortages as the global economy recovers from the Covid-19 pandemic.South Korea’s largest company reported net income of 7.1 trillion won ($6.4 billion) for the three months ended March, beating the 6.7 trillion won average of estimates compiled by Bloomberg. Revenue rose 18% for the period.The Suwon-based conglomerate has been riding a boom in stay-at-home demand for smartphones, PCs, home appliances and cloud services. But Samsung lost out on chip sales when a factory in Austin, Texas, was knocked offline, exacerbating shortages that have hit companies around the world. Just before the company’s results, major automakers Ford Motor Co. and BMW AG warned of deeper-than-expected hits to production because of the shortages. Even Apple Inc. voiced concerns.Samsung said it will step up production to address the shortages and forecast that chip earnings will increase substantially in the second quarter. The company, which makes memory and logic chips, said its Texas plant has resumed normal operations.“We expect our profits to improve significantly” with memory demand from the mobile business likely to be strong even with shortages of other components, said Han Jin-man, executive vice president of the semiconductor business, on a conference call with investors.Samsung’s shares stood mostly unchanged in early Thursday trading in Seoul.The results come as South Korea’s largest company is going through a tumultuous change in ownership. Lee Kun-hee, patriarch of the founding Lee family, died last year, triggering one of the largest inheritance tax bills in history.His heirs said Wednesday they would pay more than 12 trillion won ($11 billion) in taxes and donate approximately 23,000 works of art. They haven’t yet detailed how family members will divvy up ownership of Samsung Electronics and other parts of the conglomerate.After the outage in Texas, first-quarter profit declined at the company’s giant memory chip division, which provides key components for smartphones and servers. But Samsung forecast a strong recovery in the business thanks to server and storage demand, and a rebound in economic activity.Growth in 4K and high-definition streaming services helped maintain strong demand for consumer gear like TVs, said Han.Still, the chip crunch shows signs of disrupting Samsung’s own devices arm. The company warned that both revenue and profit at its mobile division, which produces its marquee Galaxy smartphone line, will slide this quarter because of component shortages and weak demand for flagship models.The mobile display business is likely to see a quarterly slowdown, affected by extended seasonal effects and component shortages.Samsung had previously warned of a serious imbalance in the chips market, while rival Taiwan Semiconductor Manufacturing Co. said this month that shortages could extend into next year. The Korean company is currently evaluating U.S. sites for an advanced $17 billion plant it hopes will propel its ambitions of competing with TSMC in the pivotal market for made-to-order chips.Samsung elaborated on its ambitions to expand in the foundry business, a lucrative growth segment that TSMC has dominated. It plans to expand supply in the second half of the year through the start of mass production at its Pyeongtaek Line 2, Senior Vice President Shawn Han said.“Although there are concerns that a setback in mobile production following the components shortage may bring a negative effect to memory demand, the chip business sentiment is still very solid,” said Song Myung-sup, analyst at HI Investment & Securities.Shares in Samsung, one of the biggest beneficiaries of last year’s surge in online and mobile activity, have almost doubled from a March 2020 trough.(Updates with outlook from fifth 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. Business Bloomberg 210428 20h06m Oil Extends Gains as Rising Demand Optimism Offsets Virus Surge (Bloomberg) -- Oil extended gains after closing at a six-week high as signs of strengthening demand in key markets offset concerns a Covid-19 resurgence in some countries, especially India, will damp consumption in the near term.Futures in New York traded above $64 a barrel after climbing more than 3% over the previous two sessions. A gauge of demand for U.S. petroleum products increased last week to the highest in more than two months, while distillate inventories -- a category that includes diesel -- dropped the most since early March. Fuel demand may get another boost as China breaks for an extended holiday on Saturday, with mobility expected to climb to a record.See also: Covid Boost for Global Car Sales to Spark a Surge in Oil DemandThere has been a chorus of bullish voices on the outlook for crude this week, including a prediction from Goldman Sachs Group Inc. that oil demand will post a record jump over the next six months as vaccination rates accelerate. OPEC+ also raised its estimates for growth this year, but the alliance cautioned a worsening virus situation in India, Japan and Brazil could derail the recovery.India has been hit particularly hard by a second wave that’s pummeled fuel consumption and stretched the health-care system beyond its limits. Rystad Energy cut its demand estimates for the nation and forecast a 1.4 million barrel-a-day surplus in global inventories next month due to the impact.The short-term risks to the demand outlook are starting to show up in gauges of market health. The structure of the Middle Eastern Dubai benchmark slid on Wednesday to a shallow backwardation, an indication that market tightness may be easing. The prompt timespread for Brent has also slipped.Total petroleum stockpiles in the U.S., meanwhile, fell for the second time in the three weeks through April 23 and are near the lowest level since March 2020, according an Energy Information Administration report on Wednesday. Crude inventories edged higher, while gasoline supplies rose a fourth week.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. Business Bloomberg 210428 19h56m China’s Sovereign Bonds Defy Expectations of April Reckoning (Bloomberg) -- Fears of a selloff in China’s sovereign bond market this month have proved wrong.Instead of surging higher, benchmark 10-year yields are comfortably below their half-year average and little changed from late March, thanks to a slowdown in debt issuance by municipal authorities.Traders had been bracing for a seasonal increase in local bonds at a time when China’s commercial banks -- the biggest buyers in the market -- typically funnel funds to clients to meet tax payments. The expectation among analysts was that the banks would offload sovereign notes so they could snap up the riskier but more lucrative munis.But this chain of events failed to materialize, with analysts reporting that local authorities are still drawing on leftover funds from previous debt sales. And with the central bank limiting cash injections into the economy, taking some heat out of the stock market, investors have bought into money-market funds, adding to liquidity the system.“The closely-watched April tax period passed more smoothly than expected and didn’t cause a shortage of funds,” said Qi Sheng, an analyst at Founder Securities Co. in Beijing. “Economic fundamentals haven’t changed, nor have the direction of central bank policy or credit risks.”Qi said a downtrend in Chinese yields now looks “more clear than ever” -- something which has implications for foreign investors, who’ve been piling into the nation’s sovereign bonds.The 10-year yield touched a near three-month low of 3.15% on April 21 and is set to end the month little changed around 3.18%. That compares with about 1.61% on Treasuries of the same maturity. Japanese 10-year government bonds yield little more than zero and German bunds are deep in negative territory.Bond sales in China have been closely scrutinized as investors attempt to gauge the pace of policy normalization in the world’s second-biggest economy. Stock traders have interpreted recent moves by the People’s Bank of China to roll over medium-term lending facilities as signs of tapering, while others point to larger-than-expected local government debt quota as indications that driving an economic recovery remains a priority for Beijing.Sell in May?Still, the Chinese bond market’s unexpected turn of events in April has analysts asking if the feared pressure points will simply surface in the coming months instead.While regional governments have so far sold fewer bonds than in previous years, the quota for special debt issuance remains at a whopping 3.65 trillion yuan ($563 billion). Though that’s lower than what was permitted in 2020, it exceeds the 3.5 trillion yuan expected by economists surveyed.“The supply pressure on government bonds didn’t appear in April as fiscal expenditure was very seasonal because local governments were able to use leftover funds,” said Sun Binbin, chief fixed-income analyst at Tianfeng Securities Co. in Shanghai. Liquidity in the banking system could be 850 billion yuan short of what is needed in May as issuance accelerates again, said Sun.Narrow WindowAlthough local authorities sold only 222.7 billion yuan of special bonds for infrastructure spending between January and April -- five times less than in 2020 -- the pace did pick up this month.The special bonds should be sold at a balanced pace, finance ministry official Xu Jinghua said, according to Chinabond magazine. The issuance window this year will be relatively narrow as the new quota hasn’t been fully allocated, Xu was quoted as saying.Funding costs for non-bank financial institutions were also lower than usual in April, allowing them to purchase more negotiable certificates of deposit from banks, said Liu Yu, an analyst at Guangfa Securities. This is set to change in May, crimping the amount of funds banks have at their disposal, she wrote this week.(Updates with comments from finance ministry in 13th 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. Business Bloomberg 210428 19h48m Bitcoin Is Facing a Make-or-Break Moment, Technicals Show (Bloomberg) -- Bitcoin is facing a make-or-break moment following a recent bout of selling, according to technical analysis.Though the cryptocurrency has rebounded above its average price over the past 100 days, it’s still trading below its 50-day moving average. Such a dynamic typically indicates an asset is nearing an inflection point.If Bitcoin can’t overtake its 50-day mean -- which currently sits at about $57,000 -- then it might be in for a period of volatility as the gap between the two trend lines converges. Technical indicators suggest breaking out might not be an easy feat -- Bitcoin failed to do so on several occasions last week.Trading in the world’s largest digital asset has been choppy in recent days after it hit a record high in mid-April above $64,000. It’s down more than 15% since then, though it rebounded earlier this week amid positive news, including comments from Tesla Inc.’s chief financial officer that reiterated the company’s commitment to the cryptocurrency.“The drastic -- relative to what we’ve seen of late -- pullback certainly was a point of eyebrows being raised, but at the end of the day, I think the fact that things were able to rebound and stabilize is a good thing,” said David Tawil, president of ProChain Capital. “It shows real power to the token, the staying power to the asset class.”The coin fell 1.4% on Wednesday following an announcement by the Securities and Exchange Commission that it will delay a decision on a Bitcoin exchange-traded fund. It was at about $54,586 as of 9:43 a.m. in Hong Kong Thursday.Sam Stovall, chief investment strategist at CFRA Research, says that if the stock market continues its advance, he expected Bitcoin to follow.Despite its recent turbulence, Bitcoin is still up 511% over the past year. Inflation and central bank policies have been its biggest drivers during the past 12 months, according to Quant Insight, a London-based analytics research firm that studies the relationship between assets and macro factors.While some dispute the idea that Bitcoin can act as an inflation hedge, the argument has been a key tenet for its bullish thesis and rings true for a lot of crypto fans. Proponents have seized on the money-printing narrative to promote the notion that Bitcoin is a store of wealth, an explanation that’s gained traction in recent months with economists expecting price pressures to pick up.Read more: Don’t Count on Bitcoin to Be a Sure-Thing Inflation Hedge“No question about it -- what drives a big chunk of the interest in Bitcoin has been just the tremendous amount of money that has been printed and will be printed and really the fundamental thought that you cannot have that much money in the system and not have it be inflationary,” said Chuck Cumello, president and chief executive officer of Essex Financial Services.(Updates markets in the 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. Business Bloomberg 210428 19h31m Australia Bids for Unemployment in 4s, Signals Fiscal Spend (Bloomberg) -- Australian Treasurer Josh Frydenberg said the jobless rate will “need to have a four in front of it” to generate the faster wage growth and higher inflation needed to repair the economy, signaling a willingness to keep the fiscal spigot open in his May 11 budget.In doing so, the government is aligning with the Reserve Bank of Australia in trying to drive unemployment down to very low levels. Treasury estimates full employment is now 4.5%-5%, Frydenberg said in a speech Thursday, or higher than the central bank’s estimate of low 4s or high 3s needed to generate pay gains and lift consumer prices.“In effect, both the RBA and Treasury’s best estimate is that the unemployment rate will now need to have a four in front of it to deliver this outcome,” Frydenberg said. Wage growth and annual core inflation are currently hovering around record lows, underscoring the scale of the task. “The best way to repair the budget is to repair the economy,” he said.Frydenberg’s pivot is important as it ensures Australia will avoid repeating its pre-Covid mistake of the two arms of policy working against each other. Having fiscal and monetary measures in sync will make it easier to achieve faster hiring, with the treasurer noting the last time Australia had a sustained period of unemployment below 5% was between 2006 and 2008.What Bloomberg Economics Says...“The supportive tone from fiscal authorities is welcome, but the risk lies with a lack of ambition on the labor market. The government’s full employment estimates are too high, relative to the RBA, and are likely to result in a continuation of the disappointing wage growth experience of the past decade -- continuing the disproportionate burden being placed on monetary policy.”-- James McIntyre, economistAustralia is experiencing a V-shaped recovery as early suppression of Covid-19 helped boost confidence. That, combined with government cash payments and the RBA cutting interest rates to near zero, has encouraged households to spend and firms to considering resuming investment.Yet the economy is also at a potential inflection point as some Covid-19 support programs come to a close: from the JobKeeper wage subsidy to loan repayment deferrals.To date, forward indicators show few signs of JobKeeper’s expiry hurting the labor market, which has seen a wave of hiring that pushed unemployment down to 5.6% in March.Frydenberg said today the budget will include measures designed to boost the infrastructure, energy and digital-economy sectors, as well as tax and regulation reform. It will also include initiatives to attract skilled workers from overseas, he said.Treasury estimates the 200,000 more Australians in work equated to almost A$3 billion ($2.3 billion) less being paid out in direct income support payments each year, Frydenberg said. It also generates, on average, over A$2 billion in additional income tax receipts each year, or around a A$5 billion turnaround to the budget. “And these are just the direct effects,” he said.Iron Ore BonanzaOn top of that, the iron ore price has surged to $193, just shy of a 2010 peak of $194, bringing a wave of cash into government coffers via company tax payments. The government had forecast in its budget for iron ore to ease back to $55 a ton.At prevailing prices, the windfall could add an additional A$40 billion to government revenue. That suggests Frydenberg has ample scope to provide new spending.“There are a number of important reasons why our fiscal strategy remains focused on driving unemployment even lower,” Frydenberg said. “Against the backdrop of a highly uncertain global economic environment, it is prudent to continue to support the economy and ensure that our recovery is locked in.”He also noted the RBA’s conventional rate ammunition is exhausted. The central bank’s cash rate is at 0.10% and it’s operating yield-curve control and quantitative easing programs to support the economy. That puts more burden on fiscal policy.Frydenberg had previously said the government would begin the task of fiscal repair once unemployment was “comfortably below” 6%. His backtracking on that reflects the goal being achieved much earlier than anyone had expected.“Looking further ahead, our challenge once we recover from this crisis, is to again rebuild our fiscal buffers. We have done it before and we will do it again,”Frydenberg said. “But we won’t be undertaking any sharp pivots towards ‘austerity.”’(Updates with comment from Bloomberg Economics in fifth 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. Business Reuters 210428 19h31m Oil prices extend gains as demand outlook offsets India concerns Oil prices extended gains on Thursday after rising 1% the previous session, as bullish forecasts on recovering demand this summer offset concerns of rising COVID-19 cases in India, Japan and Brazil. Brent crude for June edged up 8 cents, or 0.1%, to $67.35 a barrel by 0104 GMT while U.S. West Texas Intermediate crude for June was at $63.98 a barrel, up 12 cents, or 0.2%. OPEC, Russia and their allies, a group known as OPEC+, stuck to their plans for a gradual easing of oil production restrictions from May to July, after OPEC raised slightly its demand growth for 2021 to 6 million barrels per day. Business Reuters 210428 19h26m Logitech annual sales top forecast on work-from-home boost The maker of computer keyboards, mice and headsets reported full-year sales of $5.25 billion for the year to March 31, increasing by 74% in constant currencies, better than the 63% increase forecast by the company in February. The Swiss-U.S. company reported non-GAAP operating income of $1.27 billion, beating the $1.1 billion forecast it gave at its investor day in February. During the fourth quarter, non-GAAP operating income rose 311.6% to $325.1 million. World Reuters 210426 16h49m UPDATE 1-Gilead to help India boost remdesivir production, to give at least 450,000 vials Gilead Sciences Inc will give at least 450,000 vials of its COVID-19 drug remdesivir to India and donate active pharmaceutical ingredient to scale up its production, it said on Monday, as the country reels with surging coronavirus cases. Nations including Britain, Germany and the United States have pledged support to the world's second most populous country, while the World Health Organization termed the situation as "beyond heartbreaking". India has an official tally of 17.31 million infections and 195,123 deaths, after 2,812 deaths overnight, health ministry data showed, although health experts say the figures probably run higher. Business Reuters 210426 16h45m South Korea Q1 GDP beats expectations on investment, export bounce South Korea's economy grew faster than expected in the first quarter, expanding 1.6% from the previous quarter, data from the Bank of Korea showed on Tuesday. Gross domestic product expanded 1.8% year-on-year in the January-March period after shrinking a revised 1.2% three months earlier, also beating an expansion of 1.1% seen in the poll. World Reuters 210426 16h45m Weekend driving in U.S., China pave way for gasoline market recovery Motorists taking weekend trips have helped boost gasoline demand in the United States, China and the United Kingdom, but the recovery has been crimped by rising coronavirus infection rates elsewhere, particularly India. Fuel consumption worldwide is due to increase about 6% this year from 2020 to 97.7 million barrels per day, U.S. Energy Information Administration data forecast. The Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, is monitoring demand in the United States, China, and India, the world's three largest fuel markets. Lyft to Sell Self-Driving Unit in $550 Million Toyota Deal Business Bloomberg 210426 16h43m Lyft to Sell Self-Driving Unit in $550 Million Toyota Deal (Bloomberg) -- Lyft Inc. has agreed to sell its self-driving division to a subsidiary of Toyota Motor Corp., joining Uber Technologies Inc. in stepping back from the costly driverless vehicle research once thought to be on the verge of revolutionizing ride-hailing.The deal is worth $550 million and will allow Lyft to turn an adjusted profit in the third quarter of this year, the company said Monday. Previously, Lyft was targeting profitability by the end of the year. The company estimates that selling the division will save it $100 million in operating expenses annually.Lyft shares gained about 2% in extended trading after closing at $63.06 in New York. The stock has jumped 28% this year.“Assuming the transaction closes within the expected timeframe and the Covid recovery continues, we are confident that we can achieve Adjusted EBITDA profitability in the third quarter of this year,” Lyft Co-Founder and President John Zimmer said in a prepared statement announcing the deal, which is expected to close during the third quarter.Lyft will sell the unit, called Level 5, to Woven Planet Holdings Inc., an extension of Toyota’s research division with a mandate to advance self-driving car technology. The deal is structured to start with a $200 million payout followed by $350 million in additional payments over five years.Lyft fielded interest from “a number” of autonomous vehicle companies before selecting Toyota’s Woven Planet, Zimmer told analysts during a call. A key element in the decision to sell the unit, Zimmer said, was recognizing that Lyft no longer needed to develop its own autonomous vehicle technology. Instead, he said, multiple partnerships with other companies working on the technology would deliver the highest value to the Lyft platform.“It’s important, at this point, not to get into an exclusive relationship,” Zimmer said.The sale comes as Lyft’s ride-hailing demand is rebounding after the pandemic slammed revenue by keeping would-be riders homebound. The lockdowns were particularly hard on Lyft, which operates only in North America and, unlike its larger rival Uber, does not have businesses like food delivery to off-set ride-hailing losses.But even as the ride-hailing industry shows signs of recovery, expectations for self-driving car development have been humbled. Long hailed as a technology that would be soon be ready to commercialize broadly and cheaply, its development is costing more and taking longer to safely deploy than initially expected.By selling its autonomous driving unit, Lyft follows Uber, which sold its self-driving group to Aurora Innovation Inc. late last year. Uber has been offloading a variety of pricey side projects as it focuses on turning a profit by the end of 2021.Lyft’s self-driving division will continue operating in Palo Alto with all 300 employees now joining Woven Planet. Jody Kelman, Lyft’s director of product and program management for the self-driving platform, will stay at Lyft, joining its two dozen or so product managers and engineers in San Francisco focused on making the company’s platform accessible and ready to work with all self-driving cars.After the addition of the Lyft staffers, the group at Toyota’s Woven Planet will consist of about 1,200 employees. “This acquisition marks the first in a coordinated strategy to consolidate leading technologies and talent to help realize this vision,” George Kellerman, head of investments & acquisitions for Woven Planet, said in a statement.Lyft also said Monday that it had reached agreements with Woven Planet to share data that could help further the automated vehicles the unit is aiming to develop. Along with Lyft’s engineers and data scientists, Woven Planet will get access to mapping, route and other data from Lyft, as well as information from the high-powered sensors that are on Lyft’s fleet of more than 10,000 cars that it rents to drivers.In a statement Monday, Lyft Chief Executive Officer Logan Green called the deal a “major step forward for autonomous vehicle technology.”Lyft has logged more than 100,000 paid autonomous trips on its platform, mostly in Las Vegas through its partnership with Motional, a venture backed by Hyundai Motor Group. The company said the deal with Woven is non-exclusive and that it remains committed to existing partners including Google’s Waymo, and is on track to hit a 2023 goal of allowing customers to use its app to hail driverless cars.(Updates with additional comments from executives in the 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. Business Reuters 210426 16h39m UPDATE 1-Lyft sells self-driving tech unit to Toyota for $550 mln, moves up profit timeline Lyft Inc will sell its self-driving technology unit to Toyota Motor Corp in a $550 million deal, the companies said on Monday, allowing the ride-hail company to hit its profitability target one quarter earlier. The sale of Level 5 to Toyota's Woven Planet division will allow Lyft to focus on partnerships with self-driving companies that want to deploy their technology on its platform, rather than develop costly technology that has yet to enter the mainstream. Lyft will receive $200 million cash upfront, with the remaining $350 million paid over five years, the companies said. Business Reuters 210426 16h39m GameStop raises $551 million to accelerate e-commerce push, shares jump The company's stock has gained more than 850% this year thanks to a push by retail investors to drive up prices of heavily shorted stocks. GameStop said earlier this month George Sherman will step down as its chief executive officer in the biggest management shakeup at the retailer, giving top shareholder Ryan Cohen more control. Cohen, whose RC Ventures owns nearly 13% of GameStop, is leading the company's transformation into an e-commerce firm that can compete with big retailers such as Walmart Inc, as well as technology companies like Microsoft Corp and Sony Corp. Business Bloomberg 210426 16h35m Spotify Plans Hiring Spree in Bid to Challenge Clubhouse (Bloomberg) -- Spotify is planning a major push into live audio, hoping to corner the market on what it thinks could be its next big business.The company aims to hire more than 100 people to work on the effort, and has begun talking to talent about exclusive shows, according to people familiar with the matter. The idea is to capitalize on a new market popularized by Discord and Clubhouse, which let users participate in live audio chats — a 21st century version of call-in radio shows. Just last month, Spotify announced it was buying Betty Labs, the owner of the Locker Room app, which sports journalists and fans use to discuss major games after they happen. Spotify is already talking to hosts of its in-house podcasts about developing ideas for the new version of the app, according to the people, who asked not to be identified because the plans are still being formulated. Spotify expects to pay some talent several hundred thousand dollars to host shows.The Swedish company already operates the largest on-demand music service in the world and is trying to dominate all aspects of online audio. It has spent more than $1 billion buying podcasting companies and adding more than 2 million podcasts to its platform, hoping the shows will bring in new customers and fuel its advertising sales. Spotify has also added audiobooks.Unlike podcasts, services like Locker Room or Clubhouse are participatory and live. Locker Room hosts can invite listeners onto the virtual stage to pose a question or discuss a new idea. While it’s still not clear how big the business for these live-audio apps will be, Spotify doesn’t want to risk missing out on a potentially major shift in the industry. Clubhouse, which gained an early reputation for hosting conversations about tech and investing, just raised money to fund its social audio app at a valuation of $4 billion. Spotify’s top podcasting executives, including Courtney Holt, Max Cutler and Bill Simmons, are overseeing the programming for live audio. Cutler founded Parcast, a podcasting studio Spotify acquired in 2019, and he’s now also in charge of audiobooks. Cutler has begun talking about ideas with producers and hosts — both inside and outside the company. In one scenario, hosts of pop-culture podcasts could stage live chats after new episodes of a popular series, the people said.Another option is for sports podcasters to talk live after a major sporting event. Simmons, host of one of the most popular sports podcasts, used Locker Room after rounds in the Masters golf tournament. Simmons, like Cutler, sold a company he founded to Spotify. Both Cutler and Simmons declined to comment on their plans.Though Locker Room is devoted to sports, the revamped app will branch out into pop culture and music. The development of the new service is being led by Gustav Soderstrom, Spotify’s head of research and development. Soderstrom suggested musicians might use the app to offer the modern version of liner notes on an album.“Interactivity and live is something our creators have been asking us for for a long time,” he said in an interview when Spotify announced the Locker Room acquisition. “Were trying to facilitate interactivity between creators and fans.”The company is racing to get a version of the app that works on Android phones — something Clubhouse has yet to do. The growth of Clubhouse has slowed at a time when many of the largest technology companies, including Facebook and Twitter, are pushing into its market.But Spotify may have an edge. Unlike Facebook or Twitter, which don’t have much of an audio business at the moment, Spotify is already the top audio service.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. Business Reuters 210426 16h32m GameStop raises $551 mln to accelerate e-commerce push, shares jump GameStop Corp has raised $551 million through an equity offering as the videogame retailer accelerates its shift to e-commerce, sending its shares 15% higher in extended trading on Monday. The company's stock has gained more than 850% this year thanks to a push by retail investors to drive up prices of heavily shorted stocks. GameStop said earlier this month George Sherman will step down as its chief executive officer in the biggest management shakeup at the retailer, giving top shareholder Ryan Cohen more control. Asia Stocks Set for Muted Open Ahead of FOMC: Markets Wrap Business Bloomberg 210426 16h26m Asia Stocks Set for Muted Open Ahead of FOMC: Markets Wrap (Bloomberg) -- Asian stocks are set for a muted open Tuesday as the earnings season unfolds and amid expectations the Federal Reserve will remain accommodative at its meeting this week despite robust growth.Futures in Japan, Australia and Hong Kong were little changed. U.S. contracts traded in the green after the S&P 500 Index notched another record amid solid corporate earnings, with most of the main 11 industry groups gaining. Tesla Inc. shares slipped in after-hours trade after the firm reported a profits beat but left the multiyear outlook for growth in deliveries unchanged.The U.S. 10-year Treasury yield hovered around its 50-day moving average, well below last month’s peaks, and the dollar was little changed. Copper, seen as a barometer of growth, surged to the highest in almost a decade.While emerging economies from India to Brazil are grappling with a Covid-19 surge or renewed curbs, the developed world is on a firmer recovery path with a faster pace of vaccinations. U.S. data this week are expected to show growth accelerated to 6.8% annualized in the first quarter, and robust consumer demand. These reports aren’t shifting the central bank’s highly accommodative stance, with the Fed expected to keep rates on hold and asset purchases unchanged at this week’s meeting.“No actual changes in policy are expected and Chairman Powell would, no doubt, prefer that markets also assume no change in Fed thinking,” David Kelly, global market strategist at JPMorgan Chase & Co., said in a note. “However, it is hard to see how the Fed can ignore further stock market gains and recent much stronger-than-expected readings. Consequently, some upgrade to their description of current economic activity seems likely.”More than three-quarters of the S&P 500 companies that have reported results so far have beaten analysts’ estimates, according to data compiled by Bloomberg. Amazon Inc., Facebook Inc. and Apple Inc. are due to report this week.Elsewhere, oil was steady amid concerns about weakening demand from India after the nation reported a million new coronavirus cases in three days.Here are some key events to watch this week:Bloomberg Live hosts the Bloomberg Green Summit Monday through April 27Bank of Japan rate decision and Governor Haruhiko Kuroda briefing TuesdayFed Chair Jerome Powell holds a press conference Wednesday following the Fed meetingJoe Biden makes his first address as president to a joint session of Congress WednesdayU.S. GDP is forecast to show growth strengthened in the first quarter, bolstered by government stimulus ThursdayThese are some of the main moves in markets:StocksS&P 500 futures rose 0.1% as of 7:36 a.m. in Tokyo. The index rose 0.2%Nikkei 225 futures were down 0.1%Australia’s S&P/ASX 200 Index futures were 0.1% higherHang Seng Index futures fell 0.2% earlierCurrenciesThe yen was at 108.18 per dollarThe offshore yuan was at 6.4738 per dollarThe Bloomberg Dollar Spot Index was steadyThe euro was little changed at $1.2087BondsThe yield on 10-year Treasuries advanced one basis point to 1.57%CommoditiesWest Texas Intermediate crude was at $62.01 a barrelGold was steady at $1,781.07 an ounceFor 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. World Reuters 210426 16h27m UPDATE 1-Germany faces lockdown until June as curbs fail to push down cases Germany's coronavirus infection rate rose at the weekend despite stricter restrictions as Finance Minister Olaf Scholz cautioned he did not expect moves to ease curbs before the end of May. Germany is struggling to contain a third wave of infections, with efforts complicated by the more contagious B117 variant, which first emerged in the UK, and a relatively slow start to its national vaccination campaign. "We need a timetable how to get back to normal life, but it must be a plan that won't have to be revoked after just a few days," Scholz told Bild am Sonntag newspaper. Business Bloomberg 210426 16h24m India’s Double-Digit Growth Forecast in Peril as Virus Hits Hard (Bloomberg) -- Just two weeks ago, the International Monetary Fund upgraded India’s economic growth forecast to 12.5% -- the quickest rate among major economies. Now, as Covid-19 cases surge the most globally, that bullish view is looking increasingly in doubt.In Delhi, India’s political capital, the streets are mostly empty and the markets nearly deserted with almost all shops closed in response to curbs put in place by the local administration to fight the pandemic. The scene is not so different in Mumbai, the financial hub that accounts for 6% of the national output.Yet for now, Prime Minister Narendra Modi is shunning a nationwide lockdown and encouraging states to keep their economies open. And for that reason, economists are signaling risks to their forecasts, but not tearing them up all together just yet.“This second wave of virus cases may delay the recovery, but it is unlikely in Fitch’s view to derail it,” the ratings company said in an April 22 statement. It stuck to its 12.8% GDP growth forecast for the 12 months through March 2022.The Reserve Bank of India this month also retained its growth estimate of 10.5% for the current fiscal year. But Governor Shaktikanta Das said the surge in infections impart greater uncertainty and could delay economic activity from returning to normalcy.High-frequency data are already pointing to a deepening contraction in retail activity in the week through April 18 relative to its pre-pandemic January 2020 level, said Bloomberg Economics’ Abhishek Gupta. That’s a key risk for an economy where consumption makes up some 60% of gross domestic product.Activity Hit“Localized containment measures will act as a drag on growth,” said Teresa John, an analyst at Nirmal Bang Equities Pvt. in Mumbai, given that 10 Indian states that account for about 80% of the country’s Covid-19 cases contribute nearly 65% of the national output. Still, John left her “conservative” growth estimate unchanged at 7% for the current fiscal year.The reluctance by economists to revisit growth forecasts just yet possibly stems from expectations for the crisis to blow over soon. Fueling that confidence is a vaccination drive that’s covered more than 100 million people of the nation’s over 1.3 billion total, besides the promise of continued support from fiscal and monetary policy makers.“While the rapidity with which cases are rising is high, it is also expected that this wave will be relatively short lived,” said Kotak Mahindra Bank Ltd.’s Upasna Bhardwaj, who is among the few to have downgraded the economy’s growth forecast -- by 50 basis points to 10% for the current year. “Nonetheless, uncertainty remains,” she said.That uncertainty doesn’t look to be going away in a hurry, with India reporting record 349,691 new coronavirus cases and 2,767 deaths on Sunday. With almost 17 million cases in total, it is the second-worst affected nation globally, lagging only the U.S. Bloomberg’s Virus Tracker shows that only around 11 out of 100 people in India have received a vaccine dose.While the outbreak has overwhelmed the nation’s hospitals and crematoriums, it’s also hit consumer confidence in an economy that was only beginning to recover from an unprecedented recession last year.“The surge in infections has led to the re-imposition of partial lockdowns in the more affected cities and states, and could trigger full lockdowns if the situation worsens,” said Kristy Fong, senior investment director for Asian equities at Aberdeen Standard. “This will have a knock-on impact on the re-opening of the economy and recovery prospects.”Those concerns have contributed to the nation’s benchmark stocks index becoming Asia’s worst performer this month, while the rupee put up by far the region’s poorest show over the past month as traders factored in the impact of the curbs on economic growth.Although policy makers have signaled they are ready to take steps to support growth, a failure to flatten the virus curve could exert pressure on monetary and fiscal policies that have already used up most of the conventional space available to them.The government has limited fiscal headroom, having penciled in a near-record borrowing of 12.1 trillion rupees ($162 billion) this year to spur spending in the economy. For its part, the RBI has stood pat since cutting interest rates to a record low last year. It has instead relied on unorthodox tools, including announcing a Government Securities Acquisition Programme, or GSAP, to keep borrowing costs in check.Sovereign bonds are also facing the possibility of more supply if the government needs to spend more to deal with the second wave. Demand is tepid at auctions and the market is banking on central bank support to help ease the supply pressure.“Given the heavy borrowing program and the evolving macro situation wherein growth concerns are again coming back due the second wave of the pandemic and on the other side inflation could remain sticky, we think bond yields will struggle to soften despite RBI’s very laudable efforts,” said B. Prasanna, head of global markets, trading, sales and research at ICICI Bank Ltd.With or without lockdowns, some economists see the pandemic weighing on the confidence of consumers -- the backbone of the economy.“The rising burden of case counts could prove to be a negative distraction to the growth momentum and economic recovery,” said Shubhada Rao, founder at QuantEco Research in Mumbai, who sees a hit to the services sector, especially the contact-intense kind. “Potentially this could dent growth by a percentage point. This remains a developing story.”(Updates with vaccine data in the 10th pragraph.)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. Politics Reuters 1 hour ago Key U.S. Senate Democrat favors smaller infrastructure bill Democratic Senator Joe Manchin on Sunday said he opposes using a maneuver that would enable his party to pass U.S. President Joe Biden's $2.3 trillion infrastructure proposal without Republican support, saying he favors a smaller and "more targeted" bill. Manchin, a moderate who holds the power to block the Democrats' agenda in the evenly divided Senate, rejected the idea of using a process called budget reconciliation to pass Democratic President Joe Biden's proposed $2.3 trillion infrastructure legislation. While most legislation needs 60 votes to advance in the 100-seat Senate, the reconciliation process allows for a simple majority. French billionaires eye truce in battle for Lagardere media group - sources Business Reuters 1 hour ago French billionaires eye truce in battle for Lagardere media group - sources Two of France's richest businessmen are close to a deal over media and publishing company Lagardere that would hit pause on their attempts to cherry-pick its assets for several years, three sources close to the discussions said on Sunday. Vincent Bollore, the top shareholder in Lagardere via his Vivendi group, and luxury goods tycoon Bernard Arnault, also a Lagardere investor, have been at the centre of a tussle over the firm and its influential media outlets for months. The saga has transfixed top political circles in France a year ahead of a presidential election, with some in President Emmanuel Macron's camp fearing that Bollore could seize assets like Lagardere's Europe 1 radio and build up a powerful ring-wing outlet that would go against his campaign. Business Bloomberg 1 hour ago Tate & Lyle May Sell Controlling Stake in Primary Products Unit (Bloomberg) -- Tate & Lyle said it’s in the process of exploring the potential to separate its food & beverage solutions and primary products businesses through a sale of a controlling stake in its primary products business to a new long-term financial partner.Discussions with potential new partners in the primary products business are at an early stage and therefore there can be no certainty that a transaction will be concluded, the company said in a statement.Tate & Lyle started an auction for its primary products division, the Telegraph reported Saturday, citing people it didn’t identify. Primary products generated more than 1.8 billion pounds ($2.5 billion) of revenues last year, according to the report.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. Politics Reuters 1 hour ago UPDATE 1-Key U.S. Senate Democrat favors smaller infrastructure bill Democratic Senator Joe Manchin on Sunday said he opposes using a maneuver that would enable his party to pass U.S. President Joe Biden's $2.3 trillion infrastructure proposal without Republican support, saying he favors a smaller and "more targeted" bill. Manchin, a moderate who holds the power to block the Democrats' agenda in the evenly divided Senate, rejected the idea of using a process called budget reconciliation to pass Democratic President Joe Biden's proposed $2.3 trillion infrastructure legislation. Business Reuters 1 hour ago Online bookmaker Betway parent to go public in merger with acquisition firm Super Group, the parent company of online bookmaker Betway, said on Sunday it has agreed to go public through a merger with blank-check acquisition firm Sports Entertainment Acquisition Corp at a valuation of around $5 billion. The deal comes as Betway, which has its roots in Europe, expands in the United States. Betway also said it has agreed to acquire Digital Gaming Corp, tapping the online sports betting and gaming market in 10 U.S. states. U.S. Yahoo Finance 1 hour ago Cardona: 'Lot of work' left to reopen schools, fix COVID-19's damage to students COVID-19 "brought out the things that we really need to focus on because they’re worse,” the Education Secretary told Yahoo Finance. Business Reuters 1 hour ago As Bank of Canada turns hawkish, investors retool for higher rates outlook Investors in Canada are shunning interest-rate sensitive stocks, seeking inflation protection and betting on a steeper yield curve as the Bank of Canada leads global central banks in shifting to a more hawkish stance. Canada's central bank on Wednesday signaled it could hike interest rates as soon as next year and cut the pace of bond purchases, becoming one of the first major central banks to reduce stimulus. "The fact that the Bank of Canada is now starting to take the foot off the gas... it is the first sign of what's going to happen and be the big story for the second half of the year," said Greg Taylor, a portfolio manager at Purpose Investments. Politics Reuters 210426 15h00m U.S. Democratic Senator Manchin backs 'targeted' infrastructure bill U.S. Democratic Senator Joe Manchin on Sunday said he would support passing a smaller, targeted infrastructure bill with bipartisan support first before weighing other potential upgrades in a separate follow-up bill. "More targeted," Manchin, a key vote in the closely divided Senate, said in an interview with CNN's "State of the Union" program, referring to a bill that would incorporate internet broadband, roads and other traditional infrastructure needs. Asked if he would back another bill with other related spending through a process called reconciliation, Manchin said "no." Business Bloomberg 210426 15h00m Betway Holding Company Super Group to List on NYSE Via SPAC Deal (Bloomberg) -- Super Group is to combine with Sports Entertainment Acquisition Corp. to create a New York Stock Exchange-listed global gaming company, according to a statement.Super Group is the holding company for global online sports betting and gaming businesses Betway, an online sports betting business, and Spin, a multi-brand online casino offering.Targeting the fast-growing U.S. online sports betting market, Super Group has also entered into an agreement to acquire Digital Gaming Corp., which will give the group access to an initial 10 U.S. states, according to the statement.The combined company intends to apply to list its shares on the NYSE. Upon closing of the transaction, the combined company will operate under the name Super Group.SEAH has agreed to combine with Super Group based on a $4.75 billion pre-money equity valuation.Shareholders comprising more than 70% of Super Group’s equity will not be selling any shares and will roll their entire equity positions into the public company. The boards of directors of Super Group and SEAH have unanimously approved this transaction.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. Business Bloomberg 210426 15h00m Most Mideast Shares Climb With Oil, Earnings Eyed: Inside EM (Bloomberg) -- Most Middle Eastern stock markets edged higher as investors weighed lower Treasury yields, pressure on the oil price and corporate earnings.Abu Dhabi’s ADX General Index climbed the most in the region, ending 0.3% higher on Sunday. Gauges in Saudi Arabia, Dubai, Bahrain, Oman, Qatar and Egypt also made gains while those in Kuwait and Israel slipped.Stocks and currencies in developing economies rose last week as easing Treasury yields offset concerns over an increase in virus cases. But Brent crude, a major source of revenue for Gulf countries, declined for the week on concern the surge in cases in India will hamper demand recovery. India is the world’s third-largest oil importer, after the U.S. and China.On the earnings front, Vodafone Qatar and Industries Qatar are expected to deliver results this week.Read more: India’s Covid Crisis Threatens a Global Oil Recovery: Julian LeeMIDDLE EASTERN MARKETS:In Saudi Arabia, Saudi Kayan climbed as much as 5.1% after posting a profit for the 1Q that compares to a loss last yearREAD, April 22: Saudi Kayan 1Q Profit 492.9M Riyals Vs. Loss 516.8M Riyals Y/yAbu Dhabi’s ADX General Index extends increase this year to 21%, the best performance among major gauges in the regionEtisalat rises 1% on Sunday, boosting the index the most by points, followed by First Abu Dhabi Bank +0.3% and Ras Al Khaimah Ceramics +5.2%Dubai’s DFM General Index trades near its 100-day moving average, a mark it has traded above for most part of the time since early NovemberCOMMENTS:Within those banks that already delivered 1Q results in Saudi Arabia - Al Rajhi Bank, Bank AlBilad and Alinma Bank - loan growth was “robust” and “even higher than our already generous expectations,” CI Capital analysts wrote in a noteStrong momentum attributed to the mortgage segment, analysts including Sara Boutros and Monsef Morsy writeLoan growth in Kuwait is coming in “healthy” and driven mostly by the consumer segment, while loan trends in the United Arab Emirates have been “so far weak” as significant loan repayments outweigh the “already weak new loan originations”MORE: Higher Provision Buffer Against Stage 3 Bad LoansFINANCIAL RESULTS:ADCB (ADCB UH) 1Q Net Income 1.12B Dirhams Vs. 209M Dirhams Y/yDXB Entertainments (DXBE UH) 1Q Net Loss 359.8M DirhamsSaudi Telecom (STC AB) 1Q Profit 2.95b Riyals, +1.3% Y/y; Est. 2.78Zamil (ZIIC AB) 1Q Profit 5.20m Riyals Vs. Loss 28.8m Y/yYanbu Cement (YNCCO AB) 1Q Profit 73.4m Riyals, -20% Y/y; Est. 90.5Al Khalij Commercial Bank (KCBK QD) 1Q Profit 185.1m Riyals vs 177m y/yQatar Navigation (QNNS QD) 1Q Profit 297.2m Riyals vs 283.2mFor 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. Business Bloomberg 210426 15h00m Saudi State Miner Maaden Names Third CEO in 13 Months (Bloomberg) -- Saudi Arabia’s state miner has appointed its third chief executive officer in the past 13 months after the departure of Mosaed Al Ohali.Abdulaziz Al Harbi, a senior vice president at Saudi Arabian Mining Co., will replace Al Ohali as acting CEO until further notice, the company said in a statement Sunday. It said Al Ohali left “for personal reasons.”Bloomberg earlier reported the news of Al Ohali’s departure.The stock of Maaden, as the company is known, rose 2.1% to 59.60 riyals on Sunday, a record high on a closing basis and giving it a market valuation of almost $20 billion.Gold, Copper DriveMaaden is majority owned by the kingdom’s sovereign wealth fund. It is a major part of Crown Prince Mohammed bin Salman’s plan to diversify the economy from oil by developing other natural resources such as gold, copper and phosphate. As part of that drive, the firm’s considering international acquisitions to boost its global footprint.Ohali was named CEO in April last year, replacing former HSBC Holdings Plc banker Darren Davies, who had been in the role since mid-2018.Maaden made a profit of 761 million riyals ($203 million) in the first quarter, slightly below what analysts had expected.Al Ohali said in a February interview that the company aims to reduce its debt ratio this year and keep a cash cushion rather than return money to shareholders. Maaden hasn’t paid any dividends since its listing in 2008.(Updates with the confirmation of CEO’s departure and earnings.)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. Politics Reuters 210426 15h00m If Joe Biden is America's Robin Hood, this is his merry band Bolstered by popular support, U.S. President Joe Biden plans to take from the rich to give to the poor, aided by advisers keen to address economic disparities and stop companies from avoiding paying taxes. Biden on the campaign trail in 2019 first signaled that he hoped to hike taxes on investment gains paid by the wealthy as a way to fund social programs, in that case healthcare. As president, he brought these advocates of progressive taxation, or a system where tax rates increase as income goes up, into the White House. Business Bloomberg 210426 14h00m Blackstone Opening Israel Office to Drive Growth and Tech Deals (Bloomberg) -- Blackstone Group Inc. is expanding its growth-investing business with a new office in Israel, which has long been a hotbed for young science and technology companies.To head the Tel Aviv outpost, the world’s largest alternative asset manager hired Yifat Oron, former chief executive officer of technology banking platform LeumiTech. Blackstone already has offices focused on growth equity in New York, San Francisco and London.The growth business, led by Jon Korngold, has invested in companies including dating app Bumble, health-care technology firm HealthEdge and ISN Software Corp. In Israel, the group hopes to build a local presence that would give it access to entrepreneurs focused on cybersecurity, the cloud, payments or food technology.“There is so much innovation coming out of Israel,” Korngold said in an interview. “We want to help these companies pursue a real global expansion with our massive base of resources.”Dan Gillerman, former Israeli ambassador to the United Nations, will become chairman of Blackstone Israel. He has been a senior adviser to Blackstone since 2013 and will continue to advise the firm and the Israel-based team.Oron, who will lead the investing effort, will join Blackstone as a senior managing director and be involved with investing across the firm. She spent most of her career as a partner at Israel-based Vertex Venture Capital, where she invested in and sat on boards of companies across the tech landscape. She also was a technology investment banking associate at JPMorgan Chase & Co. in New York. She spent three years at the Israeli Ministry of Defense.“Israel is moving from a startup nation to a scale-up nation,” Oron said. “We used to grow highly tech-intensive businesses that were sold early in their life-cycles. This era is now defined by tech-enabled businesses now having the opportunity to tap into much larger global markets and to develop into full-scale companies over an extended time horizon.”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. FOMC meeting, Big Tech earnings: What to know this week Business Yahoo Finance 210426 14h00m FOMC meeting, Big Tech earnings: What to know this week Investors will have a variety of potentially market-moving events to contemplate this week, with corporate earnings season ramping up and a Federal Reserve decision on deck. Business Bloomberg 210426 14h00m Treasuries Reprieve Buoys Emerging Markets, but Buyers Are Picky (Bloomberg) -- Even with this month’s retreat in Treasury yields, investors could be forgiven for taking a cautious view of emerging markets.The renewed surge in Covid-19 infections from India to Argentina and political risks in Turkey and Peru have made investors more selective. Citigroup Inc. said in a report that the recent plunge in Indian assets is a reminder that the global fight against Covid-19 isn’t over yet for many developing economies, even though an environment of stabilizing U.S. yields would bode well for emerging-market currencies and bonds.With the Federal Reserve set to maintain its dovish stance at this week’s policy meeting, investors are looking to snap up assets pummeled by the first-quarter Treasury-market selloff and the global pandemic. Morgan Stanley is touting emerging-market local bonds, which gained for a third week in the five days through Friday after underperforming other risk assets this year. Barings U.K. finds value in corporate bonds in Brazil and Turkey after their spreads widened along with sovereign debt.“At this stage, we think that rotation from emerging-market outperformers to underperformers will help drive markets,” said Jon Harrison, a London-based managing director for emerging-market macro strategy at TS Lombard. He expects U.S. growth to drive Mexican stocks, while China’s market lags behind peers as President Xi Jinping targets the nation’s tech giants.Economic data will serve as a guide on the progress of the global recovery. Mexico, South Korea and Taiwan will unveil gross domestic product data, while China is due to report April purchasing manager indexes on Friday.Turkey will also continue to capture the market’s attention after the lira overtook the Argentine peso as this year’s worst-performer among peers.Lira Bears WakeTurkey rejected President Joe Biden’s recognition of the mass killing of Armenians in 1915 as a genocide, saying the U.S. had opened “a deep wound that undermines our mutual trust and friendship”The lira had its worst week in the five days through Friday since President Recep Tayyip Erdogan’s shock dismissal of the nation’s central bank chief after he raised interest rates in March. Concerns that Turkey’s relations with the U.S. could fray and that the government may again dip into its foreign-exchange reserves weighed on the currencyThe new governor, Sahap Kavcioglu -- a newspaper columnist and critic of high interest rates -- is due on Thursday to hold his first press conference on the inflation outlookBloomberg Economics expects the central bank to increase its year-end forecast for price gains because of higher oil prices and a weaker liraRate DecisionsColombia’s central bank is expected to leave its key interest rate on hold Friday while reiterating that policy makers are monitoring new developments, keeping the door open for potential changes going forward.Investors will also monitor any updates on tax-reform plansThe Colombian peso was one of the worst performers in emerging markets last weekEgypt’s central bank is likely to leave the world’s highest real interest rate unchanged on Thursday, keeping global investors drawn to its debtWhat Else to WatchSouth Korea will publish first-quarter gross domestic product numbers on Tuesday, while Taiwan will release GDP data on Friday. The two economies are among those leading Asia’s recovery from the pandemic.“We expect South Korea’s GDP growth to continue to recover and see upside risks on the back of strong exports and investment activities,” Citigroup Inc. economists including Johanna Chua in Hong Kong wrote in a note. “However, we think uncertainties around the virus and vaccine distribution cannot be ignored, and thus private consumption is likely to remain weak with only a small and uneven recovery across different sectors”Taiwan’s economy is expected to remain strong due to resilient exports and normalizing local activities, Citigroup said. The bank forecasts annual growth of 1.2% for South Korea and 6.1% for TaiwanWhile the U.S. dollar has strengthened against most of its Asian peers this year, Taiwan’s currency has held firm, appreciating almost 1%. South Korea’s won has dropped 2.8%.China is due to report April manufacturing and non-manufacturing PMI on Friday“China’s PMIs are likely to show the economy sustaining momentum into the second quarter, with the industrial and services sectors picking up,” Bloomberg Economics analysts including Chang Shu in Hong Kong wrote in a noteMalaysia will publish trade data for March on Wednesday, and Thailand will release its own report on FridayThe Malaysian ringgit and Thai baht are among the biggest losers in emerging Asia this yearIn Mexico, a reading of February economic activity on Monday is expected to flag a recovery while lingering below pre-pandemic levelsOn Friday, preliminary first-quarter gross domestic product figures will probably show a year-over-year decline as the recovery continues with less momentumThe Mexican peso is the top performer in emerging markets in the past monthTraders will monitor political tension in Brazil amid a senate probe into the government’s response to the pandemicA reading of the nation’s bi-weekly CPI data, scheduled for Tuesday, will also be watched ahead of a May 5 central bank meetingBrazil will also post current account data on Monday, as well as primary budget balance and unemployment figures on FridayInvestors will weigh prospects for Chile’s third round of early pension withdrawals, which is driving tension among the nation’s politiciansChilean unemployment and retail sales data for March will be released on Friday, alongside copper-production and manufacturing figuresFor 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. These 169 industries are being hit by the global chip shortage Business Yahoo Finance 210426 14h00m These 169 industries are being hit by the global chip shortage The ongoing global chip shortage has roiled the automotive and consumer technology industries for months. But the ripple effects could stretch far beyond automakers idling plants and consumers waiting longer for the latest gaming consoles. Business Yahoo Finance 210426 14h00m Warren Buffett's 25 best quotes about business, investing, and life Need some advice? Legendary investor and CEO of Berkshire Hathaway has plenty to share. Business Yahoo Finance 210426 13h00m Coinbase customers with hacked accounts get no justice from 'horrible' US laws: Fintech lawyer Dozens of hacks have been reported over the past five years concerning breached accounts on the popular trading platform Coinbase, which started trading publicly on Wednesday, April 14 World Reuters 210426 13h00m UPDATE 1-Putin and Biden may meet in June - RIA cites Kremlin aide Russian President Vladimir Putin and his U.S. counterpart Joe Biden may meet in June, RIA news agency reported on Sunday, citing a Kremlin aide, amid simmering tensions between Moscow and the West. The foreign policy adviser, Yuri Ushakov, said a firm decision on the meeting has not been taken yet. "We will take a decision depending on many factors," Ushakov, the Russian ambassador to the United States from 1998 to 2008, was quoted as saying. World Reuters 210426 13h00m UPDATE 2-Egypt projects 7.1% increase in debt financing needs in 2021/22 Egypt expects its debt financing needs to rise by 7.1% to 1.068 trillion Egyptian pounds ($68.1 billion) in the financial year that runs to June 2022, according to a copy of the draft budget seen by Reuters. The government projected raising 66 billion pounds of this by selling international bonds, down from 72 billion pounds this year, the draft budget said. The cabinet approved the draft, which targets a budget deficit of 6.6%, on March 24, but the document still needs to be approved in parliament. World Reuters 210426 12h00m Germany faces lockdown until June as curbs fail to push down cases Germany's coronavirus infection rate rose at the weekend despite stricter restrictions and Finance Minister Olaf Scholz said he did not expect moves to ease curbs before the end of May. "We need a timetable how to get back to normal life, but it must be a plan that won't have to be revoked after just a few days," Scholz told Bild am Sonntag. The federal government should be able to outline "clear and courageous opening steps" for the summer by the end of May, allowing restaurants to adjust reopening plans and citizens to plan holidays, he said. Business Bloomberg 210426 11h00m Behold the U.S. Economy’s Recovery as Fed Stays Course: Eco Week (Bloomberg) -- News of the U.S. economy’s accelerating pace of recovery may prove a highlight this coming week, with data likely to show output approaching its pre-pandemic level just as the Federal Reserve delivers its third policy decision of the year.Gross domestic product probably increased at a 6.9% annualized pace from January through March after a more moderate 4.3% rate in the previous quarter. Other reports may show stronger orders for durable goods, a pickup in consumer confidence and robust personal spending.A fresh injection of fiscal relief, rising Covid-19 vaccination rates and fewer pandemic-related restrictions are providing a larger tailwind for economic activity that is projected to strengthen further into 2022.Fed Chair Jerome Powell and his fellow policy makers are taking upbeat data in their stride. He has primed investors to fear no surprises from the central bank’s two-day meeting ending Wednesday, when officials are expected to keep interest rates near zero and signal no change in their $120 billion-a-month pace of bond purchases.Powell, who’ll hold a press conference after the decision, has balanced optimism by warning the economy remains at risk from Covid-19 globally. Officials in March signaled they expect to hold rates steady through 2023.What Bloomberg Economics Says:“BE expects the Fed policy statement to acknowledge continued acceleration in the economic recovery, but communications -- including the post-meeting press conference -- will stop well short of providing further guidance on the conditions which would warrant a tapering of QE.”--For full analysis, click hereElsewhere, central bankers in Japan, Sweden and Colombia are among a throng of monetary authorities holding meetings, and euro-area GDP data is set to show how the economy fared during renewed lockdowns across the region in the first quarter.Click here for what happened last week and below is our wrap of what is coming up in the global economy.AsiaThe Bank of Japan is expected to nudge up some of its growth projections, and possibly lower its price view for the current year when it updates its economic forecasts on Tuesday. The BOJ is widely seen standing pat following its policy framework tweaks last month.South Korea GDP figures also out Tuesday will be closely watched to see if the economy is maintaining recovery momentum with the help of strengthening global trade. Japan jobs, retail sales and production figures will offer some final clues on how its economy fared in the first quarter under a state of emergency that is likely to be reimposed next week in some cities.Australia’s consumer price inflation likely remain subdued in the first quarter, data Wednesday will show. Investors will scrutinize China’s PMI reports for April on Friday to see whether the economy’s strong first-quarter momentum carried into the second.Economists are also keeping a close eye on India, which has added more than a million new cases in the past three days. For more, read Bloomberg Economics’ full Week Ahead for AsiaEurope, Middle East, AfricaConfirmation of the euro area’s final quarter of contraction during an agonizingly long pandemic crisis will probably arrive on Friday among a flurry of GDP releases for the first three months of the year from around the continent.During a four-hour frenzy, the region’s biggest economies will all report output data along with the aggregate number for the currency zone, with a clean sweep of numbers likely to show shrinkage amid renewed lockdowns and a stuttering vaccination drive that is only now starting to make serious progress in immunizing citizens.The European Central Bank affirmed last week that the economy will turn a corner in the current quarter, an outlook policy makers may expand on in coming days with multiple appearances. Their meeting on Thursday presaged what officials now anticipate to be a difficult discussion in June on whether to start slowing their emergency bond-buying.Elsewhere in Europe, the Riksbank is expected to keep interest rates and its asset-purchase program unchanged on Tuesday, throwing the focus of investors on its outlook statement for indications of how soon policy could be tightened. Policy makers in Hungary will probably prolong their wait-and-see position on rates.Further afield in the region, Botswana’s central bank will likely keep its benchmark rate at a record low on Thursday even with inflation picking up, while the same day in Egypt, policy makers are predicted to stay on hold despite having room to cut.Turkey’s central bank governor will address investors in his inflation report the same day. Markets will be looking for signs that he’s willing to risk the ire of President Recep Tayyip Erdogan, an opponent of higher borrowing costs, by raising interest rates after inflation reached 16.2% in March.For more, read Bloomberg Economics’ full Week Ahead for EMEALatin AmericaReports out Monday should show that Brazil’s current account gap narrowed in March while foreign direct investment slowed from February’s 19-month high.Monetary policy in the time of Covid finds Brazil’s central bank staring down some uncomfortably warm inflation figures. The mid-month and wholesale readings out Tuesday and Thursday may cement bets that a short, sharp, front-loaded tightening cycle is on the cards. Data on hiring, unemployment, lending, government data and budget balances will round out the week.Look to Mexico’s GDP output report posted Friday for evidence that Latin America’s No. 2 economy lost some momentum in the first quarter even as it’s on track for a strong finish to 2021.Chile’s end-of-month data barrage features unemployment, retail sales, manufacturing and copper production. Chile is the world’s No. 1 producer of the metal.Though Colombia’s recovery stalled at the start of the year and inflation is testing lows last seen in the 1950s, odds are that the central bank will keep its key rate at 1.75% on Friday.For more, read Bloomberg Economics’ full Week Ahead for Latin AmericaFor 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. World Reuters 210426 11h00m Germany's Scholz criticises Greens chancellor candidate over inexperience Germany's Vice Chancellor Olaf Scholz said on Sunday the opposition Greens candidate for chancellor, Annalena Baerbock, lacked political experience and said he was better placed to lead Europe's largest economy after a Sept. 26 election. The Greens said last week Baerbock would run to become chancellor, the first time the left-leaning ecologist party has sought the top job in its 40-year history. Support for the Greens has surged in the past year to within a few points of Chancellor Angela Merkel's conservatives. Business Bloomberg 210426 11h00m China Huarong Delays Release of 2020 Results Past April Deadline (Bloomberg) -- China Huarong Asset Management Co. said its 2020 earnings results would be delayed past an April 30 deadline, potentially further fraying investors’ nerves after mounting worries over potential defaults by the state-owned bad-debt manager caused a meltdown in its bonds.The company’s auditors need more time to finalize an unspecified transaction before it can publish the results, according to a statement posted on Chinamoney.com, which is run by China Foreign Exchange Trade System. Huarong reiterated that its operations are stable and all lines of business are running normally.The firm, China’s largest distressed-asset manager, missed an earlier March 31 deadline to announce preliminary results, also saying that its auditors needed more time. The company’s shares have been suspended since April 1.China Huarong’s initial delay of the announcement stoked concerns over its financial health and kicked off an almost two-week plunge in its dollar bonds. Three major credit firms, Moody’s Investors Service, Fitch Ratings and S&P Global Ratings, have put the company’s debt rating on review for a potential downgrade.The Hong Kong stock exchange, where the shares are listed, has a deadline of April 30 for companies to file final earnings results.Market worries eased after reports that Huarong made moves to pay off bonds maturing in April. Earlier, Bloomberg reported that the company proposed a sweeping overhaul which includes offloading its unprofitable, non-core businesses to revive profitability and avoid the need for a debt restructuring.China’s Ministry of Finance, Huarong’s biggest shareholder, is considering transferring its ownership stake to Central Huijin Investment Ltd., a unit of the nation’s sovereign wealth fund, a person familiar with the matter told Bloomberg earlier this month.Balance SheetChina is also considering a plan that would see the central bank assume more than 100 billion yuan ($15.4 billion) of assets from China Huarong to help the company clean up its balance sheet, Bloomberg reported last week.Huarong is one of four state-owned entities set up by China in 1999 to help manage bad debt in the country’s banking system. The firm listed in Hong Kong after a $2.5 billion initial public offering in 2015, giving it a market value of more than $15 billion. Its shares last traded at a third of that.Under former Chairman Lai Xiaomin, Huarong expanded into areas including securities trading, trusts and other investments, deviating from the original mandate of disposing of bad debt. But it has faced challenges since Lai came under investigation in 2018. He was executed earlier this year for bribery after a brief trial, an unusually harsh sentence for such a crime.The company owes bondholders the equivalent of $41.8 billion, with $16.9 billion of that falling due by the end of next year, according to data compiled by Bloomberg. Huarong reported a 92% drop in net income for the first half of 2020 as the value of some assets fell in wake of the Covid-19 pandemic.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. World Reuters 210426 09h00m Russia reports 8,780 new COVID-19 cases, 332 deaths Russia reported 8,780 new coronavirus cases on Sunday, including 2,526 in Moscow, taking the national tally to 4,762,569 since the start of the pandemic. The coronavirus crisis centre said 332 more deaths of coronavirus patients had been confirmed in the past 24 hours, taking the national death toll to 108,232. World Bloomberg 210426 09h00m Leaking Landfill Contributes to World’s Mystery Methane Hotspot (Bloomberg) -- A landfill in Bangladesh is leaking huge quantities of the potent greenhouse gas methane into the atmosphere, according to the emissions-tracking company GHGSat Inc.An April 17 observation from the company’s Hugo satellite shows a methane release originating from the Matuail Sanitary Landfill, said GHGSat President Stephane Germain. The company estimated the emissions rate at about 4,000 kilograms an hour, the planet-warming equivalent of running 190,000 traditional cars. The country’s environment ministry said it’s investigating.Bangladesh has been a hotspot this year for emissions of methane, a colorless, odorless gas that’s about 84 times more potent than carbon dioxide in the first two decades in the atmosphere. Scientists and government officials are seeking the fastest and most cost-effective ways to curb heat-trapping gases.“We have for the first time been able to attribute emissions in Bangladesh to a specific source,” Germain said. “This is a large source but is still not sufficient to explain the large, sustained and diffuse emissions detected over the city. The situation remains a mystery and we will continue to monitor the area.”The Matuail waste site is one of several sources that are probably producing methane plumes over Bangladesh this year, according to Montreal-based GHGSat. The 12 highest methane-emission rates detected this year in satellite data occurred over Bangladesh, according to analytics company Kayrros SAS.Bangladesh’s Ministry of Environment, Forest and Climate Change is aware of the situation and has formed a technical committee to assess the extent of the problem, it said in an emailed response to Bloomberg questions.“The committee is assigned to assess methane emission from Matuail sanitary landfill site” and also to suggest mitigation measures, the ministry said. Its report is due in a month.The Matuail landfill spreads over 181 acres and accepts about 2,500 tons of waste a day, according to Sufiullah Siddik Bhuiyan, executive engineer of the Waste Management Department of Dhaka South City Corp. While the site has received funding from the Japan International Cooperation Agency to help manage liquid waste and greenhouse gases, the landfill doesn’t have data on how much methane gas it generates, Bhuiyan said.Scientists are just beginning to pinpoint the biggest sources of methane globally. Domesticated livestock, rice cultivation, leaks from the oil and gas industry and landfills are just some of the sources of the emissions, according to the Global Methane Initiative.Measures included in a 2018 short-lived climate pollutants-reduction plan would cut Bangladesh’s methane emissions up to 17-24% by 2030 and up to 25-36% by 2040, according to the statement from the environment ministry. Bangladesh has also worked with Danish assistance to reduce leaks from gas-pipeline distribution networks, it said.Observations of methane from space can be seasonal due to cloud cover, precipitation and varying light intensity, according to Kayrros, which analyzes data from European Space Agency satellites. Offshore emissions and releases in higher latitudes such as the Arctic, where Russia has extensive oil and gas operations, can also be hard to track from space.Bangladesh, which chairs the Climate Vulnerable Forum, whose 48 members represent 1.2 billion people most threatened by climate change, is vulnerable to extreme weather events and rising oceans due to its low elevation and high population density.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. Business Bloomberg 210426 09h00m Absa’s CEO Exit Creates More Than Just One Headache for Lender (Bloomberg) -- Absa Group Ltd.’s parting of ways with Chief Executive Officer Daniel Mminele following a boardroom bust up leaves the future of South Africa’s third-largest bank up in the air.Chairman Wendy Lucas-Bull has said the board must move quickly to bring about stability, but the to-do list for interim head Jason Quinn and whoever fills the role permanently is lengthy. The company is about three years into a new era as a freshly independent group following a split from former U.K. parent Barclays Plc, and signs of a new direction are just starting to form.The lender’s first Black CEO resigned on Tuesday following a dispute with some subordinate directors over strategy, less than two months after his deputy Peter Matlare died from complications from Covid-19. The dilemma now facing the Johannesburg-based company is whether to appoint an internal successor to Mminele or once again target an outsider.Among employees, “morale and confidence is running low,” said Joe Kokela, general secretary of South Africa’s finance union.Absa said the bank understands the “concerns and disappointment.”“Jason has been tasked with ensuring that the business remains resilient,” the company said in emailed comments. “His focus will be to align leadership and colleagues behind a clear way forward.”The lender this month closed a $6 billion money-market mutual fund, South Africa’s largest, reviving speculation the bank may look to sell its wider asset-management unit. Absa is also the only one of the country’s top three lenders to resist resuming dividend payments after a coronavirus-related pause, suggesting a different take on navigating the crisis than rivals.Investment banking head Charles Russon and retail boss Arrie Rautenbach are both pushing for more focus on their respective divisions, while the rest of Africa portfolio -- previously part of Matlare’s remit -- remains without an official leader. Quinn also has a number of other executive positions to fill, including a head of digital solutions, innovation and technology.‘Unmanageable Complexities’“Appointing an external CEO to implement a strategy that had already been developed and agreed by a management team and board created unmanageable complexities,” said Stefan Swanepoel, an equity analyst at Prudential Investment Managers, which holds 2.4% of the bank’s stock. “We would rather this was resolved than continued as a rift embedding unnecessary friction.”It took Absa almost a year to appoint Mminele, who became the bank’s third CEO in two years when he replaced the previous permanent head, Maria Ramos, in early 2020. The former deputy governor of the country’s central bank also became the third Black leader of a major South African lender, but his departure this week cut that number to one.Basani Maluleke, of African Bank Holdings Ltd., quit her post in January.South Africa has directed efforts toward raising the number of Black leaders in companies to reflect its demographics and help reverse the effects of Apartheid policies.“Whenever a senior Black executive leader exits, it is a setback,” Polo Leteka Radebe, president of the Association of Black Securities and Investment Professionals, said in response to written questions.While Absa grapples with identifying a new CEO, Quinn, who has been its financial director since 2016, must keep on implementing the strategy announced in 2018 to reclaim market share lost to competitors during the Barclays era.“The implementation of the strategy has to date shown signs of success,” Prudential’s Swanepoel 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. Business Bloomberg 210426 09h00m Texan Company and Dana Gas Cancel $236 Million Egyptian Deal (Bloomberg) -- Dana Gas PJSC’s $236 million deal to sell oil and gas blocks in Egypt to Texan company IPR Energy Group has fallen through.The agreement between the two firms, announced in October, was terminated after they failed to finalize terms, Dana Gas said in a statement on Sunday to the Abu Dhabi stock exchange.Dana Gas said it will now keep the assets, which accounted for output equivalent to 31,000 barrels a day of oil in 2019. The company, one of the Middle East’s biggest private-sector gas producers, will also drill an exploration well in the offshore Block 6 in the first quarter of 2023.The Sharjah, United Arab Emirates-based firm was set to receive $153 million in cash and as much as $83 million in contingent payments. While Dana Gas is still assessing the financial implications of the cancellation, it believes the Egyptian assets will improve its balance sheet and profitability “in the coming years,” it said.Dana Gas said last year the sale would help it pay back a $309 million sukuk. While the Islamic bond was redeemed at the end of November, the firm took on a $90 million bridge loan from Dubai’s Mashreq Bank. Dana Gas did not say in Sunday’s statement how it would repay the loan.The company had intended to focus on expanding output in the Kurdish region of northern Iraq after after the sale. Dana Gas said on Tuesday that the Kurdistan Regional Government -- which has been late paying invoices for production in the past -- was settling its bills “in a timely manner”.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. World Reuters 210426 08h00m UPDATE 3-PM Modi says India shaken by coronavirus 'storm', U.S. readies help Prime Minister Narendra Modi urged all citizens to be vaccinated and exercise caution, saying the "storm" of infections had shaken India, as the country set a new global record of the most number of COVID-19 infections in a day. The United States said it was deeply concerned by the massive surge in coronavirus cases in India and would rapidly send aid. Hospitals in Delhi and across the country are turning away patients after running out of medical oxygen and beds. World Bloomberg 210426 05h00m Battery-Metal Rush Pits Miners Against Marine Biologists (Bloomberg) -- Controversial plans to mine the ocean floor face a key test this year when a United Nations body unveils rules that could spur the exploitation of hundreds of billions of dollars of battery metals.The International Seabed Authority is preparing to pass regulations in July that could trigger a rush to extract metals needed to power the electric-vehicle revolution. Environmentalists say that would endanger fragile marine ecosystems and fear the ISA is too closely aligned with the emergent mining industry. The conflict exposes the complex trade-offs nations face to survive on a warming planet.“It is a grand challenge of our time to reconcile humanity’s opposing interests in acquiring ocean resources -- food, minerals and energy -- with protecting these habitats,” said Will Homoky, a biochemist at the U.K.’s University of Leeds, who’s helped collect the environmental data being analyzed by miners and regulators.A half-century after the Central Intelligence Agency first piqued interest in undersea mining while covertly salvaging a Soviet nuclear submarine with the help of Howard Hughes, the industry is back in the spotlight. The need to supply emissions-free vehicles has put the focus three kilometers (1.9 miles) down in the Pacific Ocean, where cobalt and nickel reserves dwarf those found in the Democratic Republic of Congo and Indonesia, the biggest terrestrial producers of the two metals.A European research ship left San Diego in April to test mining equipment in the Clarion Clipperton Zone: an expanse of ocean between Hawaii and Mexico that’s as big as the continental U.S. Its seabed is littered with billions of tons of manganese nodules -- fist-sized rocks formed over thousands of years, which are filled with nickel and cobalt needed for lithium-ion batteries.Another vessel owned by A.P. Moller-Maersk A/S also departed this month to collect scientific data for DeepGreen Metals Inc., a Vancouver-based company that acquired the right to explore a patch of ocean floor the size of South Africa from the Pacific island nations of Nauru, Kiribati and Tonga.“It’s a pivotal time,” said DeepGreen Chief Executive Officer Gerard Barron. The area of ocean DeepGreen has explored contains battery-mineral reserves to power 280 million plug-in cars, he said.Valued through a blank-check company merger at $2.9 billion last month, DeepGreen is backed by Glencore Plc and Allseas Group SA. It’s just one of a new generation of ocean miners that include Lockheed Martin Corp., China Minmetals Corp. and Belgium’s Deme Group, which used a deep-sea mining robot on April 20 to retrieve minerals for the first time.Previous attempts to mine the ocean depths, including the CIA’s Summa Corp. and Deep Sea Ventures, stalled in the 1970s. More recently, Nautilus Minerals Inc. left most investors out of pocket and incensed environmentalists by threatening to destroy coral reefs in the waters off Papua New Guinea.Some scientists remain skeptical about the environmental trade-off being presented by miners and highlight the risks to marine ecosystems.“It is a false dichotomy being proposed by the industry that if we want renewable energy and electric car batteries then we have to mine the deep sea,” said Lisa Levin, a scientist at the Scripp’s Institution of Oceanography in San Diego.There is uncertainty over how sediment plumes kicked up by mining the seabed will spread, potentially changing ocean chemistry and harming fish. Research has also shown that disturbances to the ocean floor have a lasting impact almost three decades later.While sea-floor deposits of cobalt and nickel potentially could clear bottlenecks faced by battery makers, concerns about the environmental risks prompted BMW AG, Alphabet Inc.’s Google and Samsung SDI Co. to say last month that they’re not yet willing to buy metals mined from the ocean until research shows that such activity is benign.The World Wildlife Fund is calling for a moratorium, while Greenpeace is threatening to disrupt deep-sea mining. Ocean ecosystems are already under mounting strain from acidification, plastic pollution and coral extinction.Much of the research into the ocean abyss over the past decade has been funded by miners, who are coordinating with regulators to produce rules that make projects viable and protect the marine ecosystem. Their close relationship means the ISA’s primary objective has effectively become opening up deep-sea mining, according to Levin.Miners will be subject to annual reporting requirements and independent monitoring to verify that they’re adhering to environmental regulations, according to an ISA statement in response to questions. The body was established in 1994 under the UN’s Convention on the Law of the Sea to ensure the minerals located in international waters are only tapped for the benefit of humanity.Increasing tensions between environmentalists and the mining industry mean the regulations announced in July by the Kingston, Jamaica-based ISA will be scrutinized by both sides.DeepGreen’s Barron, a veteran of the failed Nautilus venture, promises investors profit margins of more than 60% from operations that could start producing metal from 2024. He says talks with Detroit carmakers about potential long-term contracts have started.Others remain more cautious, and not only about the environmental impact.“As a concept it looks interesting,” said Grant Sporre, a mining analyst at Bloomberg Intelligence. “But I would like to see some trial results -- both in mining and processing -- before I get too excited.”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. Big Oil Sees Cash Rolling In, But Investors Won’t Get It Yet Business Bloomberg 210426 05h00m Big Oil Sees Cash Rolling In, But Investors Won’t Get It Yet (Bloomberg) -- After one of the most difficult years in the oil industry’s history, crude prices have recovered and major producers are finally generating spare cash. Investors really want to get their hands on it, but most are likely to be disappointed.That’s because the pandemic has created a legacy of debt for the world’s biggest international oil companies, many of which borrowed to fund their dividends as prices crashed.For Exxon Mobil Corp. and Total SE, which bore the financial strain of maintaining shareholder payouts last year, any extra cash will go to easing debt. Chevron Corp. and Royal Dutch Shell Plc have said they want to resume buybacks, but not yet. Only BP Plc is dangling the possibility that shareholder returns could improve soon, after a year and a half of flip-flopping over its payout policy.The coming week’s first-quarter results should show a significant improvement in both profit and cash flow after a dire 2020, but probably nothing that will change investors’ disenchantment with the oil majors.“They have limited appeal as long-term investments because they can’t demonstrate that they can deliver cash flow on a sustainable basis and return it on a sustainable basis,” said Christyan Malek, JPMorgan Chase & Co.’s head of EMEA oil and gas. “The key is consistency. We haven’t had any.”The first quarter will be an inflection point for the industry, according to JPMorgan. Company data and estimates compiled by Bloomberg show free cash flow -- what’s left after operational spending and investment -- is set to rebound to $80 billion for the five supermajors this year, compared with about $4 billion in 2020.Shell will be the top of heap with about $22 billion, Exxon will total $19 billion and even lowest-ranked BP will have about $11 billion. That will be enough for each of the five majors to cover their planned 2021 dividends and together have more than $35 billion left over.It’s unclear how much of that could make it into the pockets of shareholders.“Priorities for deployment of Europe’s oil majors’ strong first-quarter free cash flow will vary,” said Bloomberg Intelligence analyst Will Hares. “BP has achieved its debt target and is set to announce resumption of buybacks. Shell has announced a small dividend bump, though is unlikely to resume buybacks given its $65 billion net debt target.”BP’s BuybacksAfter raising its dividend by 2.4% in February 2020, then cutting the payout by half just six months later, BP has come under pressure to prove it can deliver reliable returns to shareholders.The London-based firm’s shares are the worst performing in its peer group over the last 12 months. Even its Chief Executive Officer Bernard Looney has acknowledged that investors are questioning whether BP can pull off its reinvention for the low-carbon age.Earlier this month, BP managed to set itself apart from its peers in a positive way, giving the clearest signal of impending buybacks. The company said it had achieved its target of reducing net debt to $35 billion about a year sooner than expected and will give an update on the timetable for stock repurchases on Tuesday, when it opens Big Oil earnings season.That’s a significant increase in the urgency of improving shareholder returns. Back in August, BP put its goal of returning 60% of surplus cash to investors fifth on the priority list after funding the dividend, reducing net debt, shifting expenditure into low-carbon projects and spending on core oil and gas assets.Debt ReductionBP’s European peers, whose shares have performed better in the past year, aren’t moving so fast.France’s Total, which was the only oil major in the region to maintain its dividend last year, has said that any extra cash that comes from higher oil prices will be used to cut debt. Its next priority will be to increase investment in renewables to about 25% of its overall budget. Buybacks will only come after that.Shell announced a 4% increase in its dividend in October, after cutting the payout by two thirds earlier in the year. It has a target of reducing net debt by $10 billion before it returns any extra money to shareholders. Banks including Citigroup Inc. and HSBC Holdings Plc predict that won’t happen until 2022, since net debt rose in the last quarter of 2020 to $75 billion.Unlike BP and Shell, the North American majors managed to make it through 2020 with their payouts intact, but at a high cost. Exxon’s debt pile surged 40% during the pandemic to $73 billion, prompting Moody’s Investors Service to downgrade the company’s bonds twice in the past 12 months.The Texas-based giant expects to return to profit in the first three months of 2021 after four straight quarterly losses. The company has said it will maintain its $15 billion annual dividend while paying down debt if oil and gas prices remain at current levels. JPMorgan sees Exxon’s free cash flow rebounding to $19.6 billion this year, giving it a sizable surplus with which to reduce borrowings.Of the five supermajors, Chevron has the best balance sheet and “strong prospects” for a share buyback, according to HSBC analyst Gordon Gray. The California-based company said in March that it should generate $25 billion of free cash over and above its dividend through 2025 if Brent crude remains at $60.The oil majors’ focus on pleasing investors and healing their financial wounds comes largely at the expense of investment in their core business.As the pandemic unfolded last year, the companies slashed their spending to the lowest combined level in 15 years, according to data compiled by Bloomberg Intelligence. The stranglehold will continue this year, with capital expenditure set to rise only slightly despite oil’s recovery.Chevron and Exxon have both locked in spending plans at radically reduced levels all the way through 2025. Total has marginally raised its capital investment budget for this year, while BP and Shell have put a firm ceiling on expenditure.So while the combination of higher oil prices, rock-bottom spending and asset sales is delivering the surge in cash flow that will help solve the supermajors’ short-term problems, it may be creating a long-term headache. Shell acknowledged earlier this month that it’s not investing enough in new projects to offset the natural decline in production from its existing oil and gas fields.The majors are “slaking the shareholders’ thirst for cash returns,” said Russ Mould, investment director at AJ Bell. In the long term “capex cuts, debt and disposals could do as much if not more harm than good, and none are really sustainable.”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. World Reuters 210426 05h00m UPDATE 3-U.S. racing to send aid to India as COVID-19 cases soar The United States is deeply concerned by a massive surge in coronavirus cases in India and will race additional support to the Indian government and health care workers, a White House spokeswoman said on Saturday. Washington is under increasing pressure to do more to help India, the world's largest democracy and a strategic ally in President Joe Biden's efforts to counter China, as it grapples with a record-setting surge in coronavirus infections. World Reuters 210426 04h00m REFILE-U.S. to deploy support to India govt and healthcare workers The United States is deeply concerned by a massive surge in coronavirus cases in India and plans to quickly deploy additional support to the Indian government and health care workers, a White House spokeswoman said on Saturday. No further details were immediately available. World Reuters 210426 03h00m China reports 13 new COVID-19 cases vs nine a day earlier China reported 13 new COVID-19 cases on April 24, up from nine cases a day earlier, the national health authority said on Sunday. All of the new cases were imported infections originating from overseas, the National Health Commission said in a statement. The number of new asymptomatic cases, which China does not classify as confirmed cases, rose to 14 from 12 a day earlier. Business Reuters 210426 01h00m UK officials close to deal to buy tens of millions more doses of Pfizer vaccine - Sunday Times UK officials are close to finalising a deal to purchase tens of millions more doses of the Pfizer COVID-19 vaccine in time for a third booster dose to be given to the elderly this autumn, the Sunday Times reported https://bit.ly/3gDd8dd. Government sources told the newspaper that they hope to roughly double the UK's original order of 40 million jabs. World Reuters 210424 00h00m Brazil cuts number of vaccines expected to be delivered by 30% The Brazilian government cut by nearly 30% the number of COVID-19 vaccines expected to be delivered between January and April, according to a new calendar released by the country's health minister on Saturday. Last month, former health minister Eduardo Pazuello said Brazil would receive roughly 103 million doses in the first four months of the year. The government said the reduction was due to lower-than-expected volume of active ingredients received and also because some vaccines are pending a permit to be used in the country. Governments Want You to Buy Green. Ignore Them at Your Peril Business Bloomberg 210424 00h00m Governments Want You to Buy Green. Ignore Them at Your Peril (Bloomberg) -- Investors betting against green trades are going up against the world’s most powerful governments.The leaders of the biggest economies have in the past week pledged massive cuts on greenhouse gas emissions, paving the way for a torrent of regulation that is set to benefit green stocks and bonds. And it’s likely to deal blows to companies not positioned for the transition to a lower-carbon economy.During a climate summit on Thursday, U.S. President Joe Biden announced a goal to halve emissions by 2030 on 2005 levels, a vow that could mean penalizing fossil fuel use or mandating renewable power. Canada and Japan raised target cuts to 40%-46% by 2030, while the U.K. topped that with a vow to slash 78% by 2035.“The direction of travel is in one way only,” Mairead McGuinness, the European Union’s chief for financial services, said in an interview about new green investment rules. They form a “re-engineering of the economy and re-engineering of the financial world.”With the world’s biggest polluter China only reiterating plans to attain net-zero status by 2060, these efforts are still not seen as enough to meet goals to limit dangerous temperature increases under the Paris Agreement. That only means more targets and rules are likely in future.The EU is a case in point. It’s now following up goals with detailed legislation to drive money toward a sustainable future. Lawmakers reached a deal last week to make a 55% cut in emissions by 2030, compared to 1990 levels, legally binding. Its executive arm then unveiled a labeling system, or taxonomy, to classify green investment.That’s expected to divert financing to activities on the list, starting with a third of the bloc’s $2 trillion joint budget for the next six years. In favor are producers of rechargeable batteries, energy efficiency equipment, low-emission cars, wind energy and solar plants.“There is still much, much more to come from the global community,” said Eoin Murray, head of investment at the international business of Federated Hermes. “From an investment perspective, policy risks continue to loom large for long-term portfolios.”European renewables are poised to be among the biggest beneficiaries of the green spending spree, after a pullback this year. A gauge of stocks in the sector rallied 7% on Thursday, though remains about 20% down from a record high in January.The underperformance has created an attractive entry point, according to Berenberg analysts including Henry Tarr, who named wind turbine maker Vestas Wind Systems A/S and Aker Carbon Capture AS as top picks this month. Wall Street banks poured out similar research in recent days, with Citigroup Inc. liking hydrogen producer ITM Power Plc and JPMorgan Chase & Co. eyeing Siemens Gamesa Renewable Energy SA.“The recent market correction affecting clean energy stocks, driven by short-term catalysts and what we view as unsubstantiated medium-to-long term catalysts, presents a buying opportunity,” Societe Generale SA analysts led by Rajesh Singla wrote in a note.Among stocks expected to see gains of 20% or more, based on average analyst price targets, are ITM, Siemens Energy AG and McPhy Energy SA, according to data compiled by Bloomberg.For those firms left out of the EU’s playbook -- currently companies relying on oil and gas -- there’s a risk they will find it harder or more costly to access financing.Bond GreeniumInstead companies are rushing into a burgeoning market for environmental and social bonds, which now make up nearly a quarter of all sales in Europe this year. They can often get cheaper borrowing costs, with a so-called “greenium” -- a premium on bond prices.Telefonica SA saw seven times the demand for its 1 billion euros of sustainable bonds, enabling it to cut pricing by a “staggering” 75 basis points, according to ABN Amro Bank NV analysts. The Spanish telecom firm’s green 2027 bond is trading about 30 basis points tighter than a similar conventional note, showing a “crystal clear pricing benefit,” the analysts said in a note.The European Commission has also introduced more detailed and mandatory reporting requirements on sustainability, for some 50,000 companies on the continent. This is set to benefit testing and inspection companies, such as Bureau Veritas SA and Intertek Group Plc, Morgan Stanley strategists including Victoria Irving wrote in a note to clients.The greater transparency could also give confidence to investors concerned about the potential for greenwashing, or the possibility that governments and companies are misrepresenting their environmental credentials.Green PoliticsPolitics may become an even more decisive regional catalyst for green trades in the months ahead. The latest polls in Germany show the Greens have more than a fighting chance to participate or even lead the next government coalition.“A Green-led government (or one with a heavy Green footprint) could more credibly build trans-Atlantic links on the green transition with the Biden administration,” said Martin Lueck, BlackRock Investment Institute’s chief investment strategist for Germany.In any case, yet another EU legislative package will follow in June. That’s meant to reinforce carbon pricing, increase renewable energy output and boost sustainable transport. The proposals may include a carbon tax on selected products, or a carbon customs duty.“Any meaningful change in the regulatory backdrop that drives up scrutiny on carbon-intensive industries and helps fund innovation to reduce emissions can represent an attractive catalyst,” said Luke Barrs, head of fundamental equity client portfolio management in Europe at Goldman Sachs Asset Management.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. Business Bloomberg 210423 23h00m Vaccine Shortage Holds Emerging Markets Back from Global Rally (Bloomberg) -- As the pandemic spins out of control from India to Argentina, the divisions between emerging and developed markets are deepening.Developing-nation stocks have lagged the rest of the world since the middle of March partly on concern that vaccine shortages and delays will slow economic growth. Investors pulled $1.3 billion out of emerging-market equity funds in the week ending April 21, the most in more than three months.It’s one more data point that shows how this pandemic has rewritten the investing playbook. Historically, emerging markets were viewed as a way to ride a global economic expansion, but this time around, it’s the developed world that’s bouncing back the fastest.U.S. and European stocks are near all-time highs, and JPMorgan Chase & Co warned last week that the U.S. economy will outpace emerging markets at an “unprecedented” rate in the second quarter due to slow vaccine rollouts in the developing world.“Not only do we have a much slower vaccination program across emerging markets, but worries over debt loads, external vulnerabilities, fiscal prudence, inflation and currency stability will hamper a much stronger recovery post-pandemic,” said Mohammed Elmi, a portfolio manager at Federated Hermes in London. He recommends rotating into countries and assets that benefit from U.S. growth via trade links or exports, such as Mexico.The MSCI Inc. gauge of developing-world shares has risen just under 5% so far this year, about half as much as the gain in a similar index of developed-market equities. Compare that to 2009, the year the global economy began to recover from the financial crisis, when emerging stocks soared 74%, almost three times more than their developed peers.Among the factors driving the divergence lies a shortage of vaccines and their lopsided distribution that’s paving the way for a re-opening of Western economies even as major emerging-market economies struggle with new waves of infections. More than a third of Covid-19 inoculations have gone to people in the world’s 27 wealthiest countries, which account for just 11% of the global population, Bloomberg’s Vaccine Tracker shows. Read More: Virus Surge and China Are Muddying he Bullish Asian Stock StoryThe disparity is particularly extreme in India, which is home to 18% of the global population and the epicenter of one of the most deadly outbreaks. Indian equity funds suffered their biggest outflow in more than a year in the week ending April 21, according to EPFR Global data, while the rupee has slumped 3.5% in the past month.“This is likely to weigh on market sentiment in the near term,” said Tai Hui, chief Asia market strategist at JPMorgan Asset Management, who says investing in emerging-markets outside of Asia “will require a bit more patience for the pandemic to come under control.” For now, he recommends inventors concentrate their allocation in the U.S. and China.Some investors are looking past the latest surge in cases, betting that vaccines will proliferate in the developing world. The fact that Europe is also beginning to recover should boost exports and add to inflows from tourism.Current market valuations “leave a lot more room for upside in EM and for disappointment in the U.S,” according to Morgan Harting, a New York-based money manager at AllianceBernstein.The slow pace of vaccinations in the developing world is adding to an already challenging backdrop for many emerging markets, which have had to navigate higher U.S. Treasury yields even as the cost of combating the pandemic piles pressure on their own finances.For Jon Harrison, London-based managing director for EM macro strategy at TS Lombard, the prospect of the Federal Reserve tapering its asset purchases could also lift the dollar, putting an end to a key tailwind for the asset class this year. “In the absence of a return to a softer dollar the external backdrop for emerging-market economies is set to become more challenging” 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. Politics Bloomberg 210423 23h00m Turkey Summons U.S. Envoy After Biden’s ‘Genocide’ Statement (Bloomberg) -- President Joe Biden commemorated the 106th anniversary of the mass killing of Armenians by twice calling it a “genocide” -- a word no U.S. leader since Ronald Reagan has used to describe the event for fear of alienating NATO ally Turkey.Turkey, in response, summoned U.S. Ambassador David Satterfield to Ankara, and said it rejected Biden’s characterization of the events of 1915. “The American people honor all those Armenians who perished in the genocide that began 106 years ago today,” Biden said in a written statement timed to Saturday’s commemoration of Armenian Genocide Remembrance Day.“One and a half million Armenians were deported, massacred, or marched to their deaths in a campaign of extermination,” Biden said. “We remember the lives of all those who died in the Ottoman-era Armenian genocide and recommit ourselves to preventing such an atrocity from ever again occurring.”Biden’s statement “was null and void in terms of international law” and “caused a wound that was difficult to repair,” Turkey’s Foreign Ministry said in a statement. Saturday’s move by Biden fulfilled a 2020 campaign promise by the Democrat to Armenian-Americans, but risks pushing Turkey further into Russia’s orbit. Turkey has denied that its predecessors in the Ottoman Empire committed wholesale atrocities, calling the allegations “slander,” and suggesting that Biden’s declaration was more about domestic politics.Turkish Foreign Minister Mevlut Cavusoglu responded on Twitter, saying his country has “nothing to learn from anybody about our own past.”The ministry issued a statement saying the U.S. had opened “a deep wound that undermines our mutual trust and friendship.” It said Biden was under the sway of “radical Armenian circles and anti-Turkey groups.”Biden on Friday held his first phone call as president with Turkish counterpart, Recep Tayyip Erdogan, in which he gave advance notice of the statement and used the word “genocide,” according to officials familiar with the call.Ibrahim Kalin, a spokesman for Erdogan, said Saturday that the U.S. had repeated the “slander” toward Turkey. “We recommend that the U.S. President look at his own history and present.Neither side on Friday mentioned the contentious issue in their formal statements about the discussion, and instead focused on a planned meeting at the NATO summit in Brussels in June.Still, the Turkish lira dropped 1% against the dollar on the news Friday, extending the Turkish currency’s week-long slide to 3.9%.As Turkey braced for the Biden statement, officials there warned that the move would severely damage relations between the countries.“The best way for President Biden to ruin what is left of Turkish-American relations is for him to acknowledge the false Armenian allegations that the Ottoman Turks performed an act of genocide early last century,” Ilnur Cevik, a senior adviser to Erdogan, said Friday on Twitter.Shortly before the White House released Biden’s statement, Erdogan sent a commemoration message to Sahak Mashalian, who serves as the Armenian Patriarch of Istanbul.“I respectfully commemorate the Ottoman Armenians, who lost their lives under the difficult circumstances of World War I, and offer my condolences to their grandchildren,” Erdogan said. “The politicization of debates, which historians ought to engage in, by third parties and their use as a tool of meddling has not served anyone’s interests.”Reagan was the last U.S. president to call the atrocities committed against the Armenians a genocide, in 1981. He soon backtracked under pressure from Turkey, the successor state to the Ottoman Empire, which collapsed after the end of World War I.Erdogan on Wednesday said that his administration “will continue to defend the truths in the face of the lie of ‘genocide of Armenians’ and those who are backing this slander with political calculations,” according to the state-run Anadolu Agency.Turkey has been a key U.S. strategic partner, providing a bridge to the Islamic world and countering Russian ambitions. But increasing friction on a number of issues -- including Erdogan’s increasingly heavy hand against political opponents and the press -- has led Turkey’s leader to seek a closer relationship with Moscow.The U.S. has imposed sanctions on Turkey and cut it out of Lockheed Martin Corp.’s F-35 fighter program --unprecedented for a NATO ally -- after Turkey began purchasing S-400 anti-aircraft missiles from Russia.Although Russia has recognized the Armenian genocide for decades, Moscow appeared eager to use Biden’s move to drive a wedge into NATO. The Russian state news agency TASS reported that the Biden administration “is making it clear that it actually does not view Erdogan as a partner and a politician worth betting on, and will build relations with him from the position of force.”President Barack Obama, critical of the George W. Bush administration’s failure to use the word “genocide,” made a campaign promise to change course. Over eight years he offered increasingly strong condemnations -- calling the 1915 events “the first mass atrocity of the 20th century” in which 1.5 million Armenians “were deported, massacred, and marched to their deaths in the final days of the Ottoman Empire.” He didn’t use the word genocide, though, instead recognizing the anniversary as “Armenian Remembrance Day.”The word “genocide” carries a particular stigma under international law, which defines it as the injuring or forcible removal of people with “intent to destroy, in whole or in part, a national, ethnic, racial or religious group.”The nation’s leading Armenian-American group said Biden’s recognition was an important step toward human rights into the 21st century.“President Biden’s affirmation of the Armenian Genocide marks a critically important moment in the arc of history in defense of human rights. By standing firmly against a century of denial, President Biden has charted a new course. Affirmation of the Armenian Genocide enhances America’s credibility and recommits the United States to the worldwide cause of genocide prevention,” said Armenian Assembly Executive Director Bryan Ardouny.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. Business Reuters 210423 23h00m Saudi Arabia sees over $200 bln in savings from energy reforms plan - FinMin Saudi Arabia could save over $200 billion over the next decade by replacing liquid fuel used for domestic consumption with gas and renewable energy sources, the finance minister said, as the kingdom seeks to cut costs to fund investments. The world's top oil exporter has embarked on an ambitious reforms programme in recent years to modernize its economy, create jobs, and reduce its dependence on oil revenues. "One initiative we're about to finalise is the displacement of liquids," said Finance Minister Mohammed al-Jadaan. Business Reuters 210423 23h00m UPDATE 1-Volkswagen warns of worsening output hit from chip shortage -FT Volkswagen AG has warned managers to prepare for a bigger production hit in the second quarter than the first due to a global chip shortage, the Financial Times reported on Saturday. "We are being told from the suppliers and within the Volkswagen Group that we need to face considerable challenges in the second quarter, probably more challenging than the first quarter," Wayne Griffiths, president of Volkswagen's Spanish brand Seat, told the FT. Volkswagen has said it expects chip supply to remain tight in the coming months, adding it could not provide visibility for the full year. World Reuters 210423 22h00m BoE Deputy Governor Broadbent forecasts consecutive quarters of rapid growth -Telegraph Bank of England Deputy Governor Ben Broadbent has forecast consecutive quarters of rapid growth but also warned that inflation will prove less predictable, according to an interview with the Telegraph newspaper. It may be too soon to call a "roaring twenties" scenario, but it certainly means "very rapid growth at least over the next couple of quarters" particularly as the economy will be boosted by people simply saving less, Broadbent said in remarks published Saturday evening in the Telegraph https://bit.ly/3vmjAK1 newspaper. Broadbent said in the interview that there has been "less of a disinflationary effect" as households have also switched spending into other areas. World Reuters 210423 22h00m Oxygen packing plant in Brazil hit by explosion An industrial plant dedicated to oxygen packing in the city of Fortaleza, in Brazil's northeastern region, exploded on Saturday, leaving four people injured, local media reported. Industrial gas maker White Martins, owner of the plant, said in a statement that production of oxygen in the region has not been affected, as the unit was dedicated to packing the gas. The company, which is investigating the causes for the incident, said it is looking for alternative places to fill the oxygen cylinders. Chinese Firms Are Listing in the U.S. at a Record-Breaking Pace Business Bloomberg 210423 22h00m Chinese Firms Are Listing in the U.S. at a Record-Breaking Pace (Bloomberg) -- Chinese companies are listing in the U.S. at the fastest pace ever, brushing off tensions between the world’s two biggest economies and the continued risk of being kicked off American exchanges.Firms from the mainland and Hong Kong have raised $6.6 billion through initial public offerings in the U.S. this year, a record start to a year and an eightfold increase from the same period in 2020, data compiled by Bloomberg show. The largest IPO is the $1.6 billion listing of e-cigarette maker RLX Technology Inc., followed by the $947 million offering of software company Tuya Inc.That’s even as Sino-U.S. tensions show few signs of easing and the threat of Chinese firms being delisted from U.S. exchanges remains. In fact, the U.S. Securities and Exchange Commission said last month it would begin implementing a law forcing accounting firms to let U.S. regulators review the financial audits of overseas companies. Non-compliance could result in a delisting from the New York Stock Exchange or Nasdaq.The risk for mainland firms is high given China has long refused to let U.S. regulators examine audits of its overseas-listed companies on national security concerns.“They would acknowledge this is a potential risk, and if something happens they might need to get prepared for a rainy day,” said Stephanie Tang, head of private equity for Greater China at law firm Hogan Lovells. “But the risk itself would not prohibit those companies from going to the U.S., at least in the second half of this year or probably toward next year.”Despite all the risks, the pipeline continues to grow, setting up 2021 to potentially exceed last year. Chinese firms raised almost $15 billion through U.S. IPOs in 2020, the second highest on record after 2014, when e-commerce giant Alibaba Group Holding Ltd. fetched $25 billion in its float.Didi Chuxing has filed confidentially for a multi-billion-dollar U.S. IPO that could value the Chinese ride-hailing giant at as much as $100 billion, Bloomberg News has reported. Uber-like trucking startup Full Truck Alliance is also working on a U.S. listing this year that could raise about $2 billion, people familiar with the matter said, requesting not to be named because the matter is private.“Chinese companies in the new economy do not seem to have been deterred from seeking U.S. listings despite the ongoing tensions,” said Calvin Lai, a partner at Freshfields Bruckhaus Deringer. “They take that as one of the risks but that doesn’t tilt the pendulum.”Additional share sales by Chinese companies have also been well-received in the U.S. this year, delivering an average return of 11% from their offering prices in the following session, according to data compiled by Bloomberg.And while rival financial centers like Hong Kong have in recent years changed their listing rules to make it easier for new economy firms to go public there, that has not stopped the flow of firms going stateside. In fact, the traffic now goes both ways, with U.S.-traded Chinese firms getting a second listing in Hong Kong to expand their investor base and as a hedge against the delisting risk.Such secondary listings raised almost $17 billion last year and have fetched over $8 billion this year already, Bloomberg data show. Bankers said many companies go to the U.S. knowing they can subsequently list in Hong Kong.For example, Didi is also exploring a potential dual offering in Hong Kong later, a person familiar with the matter has said, while Chinese electric carmaker Xpeng Inc. is also looking into a share sale in the financial hub less than a year after going public in New York.U.S. capital markets have long attracted Chinese companies for a number of reasons: their greater liquidity, broader investor base, and the cachet associated with a U.S. listing. Technology and fintech firms have flocked to the U.S. because of its more streamlined process as well as greater openness to loss-making businesses.“The U.S. still remains a magnet for the IPOs of Chinese technology companies,” Tang said. “Just in terms of the pipeline, I don’t see any pause to that. I think the pipeline is very strong.”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. Business Bloomberg 210423 22h00m Bill Hwang’s Implosion Bruises Billionaire Teacher From China (Bloomberg) -- It’s been a turbulent few weeks for Larry Chen, a former school teacher from a poor Chinese village who’s now one of the world’s richest people.His online tutoring firm, GSX Techedu Inc., has been battered in the stock market, tumbling more than 80% since late January. Last month, the investor with the largest exposure to the shares -- Bill Hwang’s Archegos Capital Management -- imploded when it was unable to answer margin calls.Short sellers including Carson Block’s Muddy Waters and others have been circling since last year, and GSX’s latest financial results showed wider-than-expected losses. It faced a new barrage this month, with Grizzly Research issuing a report questioning the number and qualifications of teachers working for the company, and arguing that auditor Deloitte shouldn’t give an opinion on the firm’s annual report.Listening to Chen, who founded GSX in 2014, you’d never guess his company is one of this year’s worst performers, or that his net worth on Bloomberg’s ranking of the world’s richest people has tumbled almost $13 billion to $3 billion since its January peak.‘Cherish Trust’“Life is like a game,” Chen said Thursday during a virtual event held in Beijing, where the company is headquartered. “It has to be fun and we have to win.”Dressed in a white shirt and black suit, the 49-year-old chief executive officer didn’t discuss the recent stock plunge. Instead, he said his company has to put all its efforts to continuously grow and “cherish trust from students and their parents.”The company paraded some of its teachers who proclaimed that the bar was “very high” to become an instructor, but Chen didn’t directly take on the short sellers.“Should we focus on self-criticism or rumors flying around?” he asked. “Undoubtedly, we should focus on self-criticism.”The event didn’t stanch the slide in GSX shares. Its American depositary receipts fell 9.3% in New York on Thursday, snapping four days of gains.More ConfidentStill, some analysts are growing more confident the stock will recover. Even as it faces increased regulatory risks, companies such as GSX have developed a “significant market” in China as the Covid-19 crisis accelerated demand for online education, according to Tommy Wong, an analyst with China Merchants Securities Co. in Hong Kong.“GSX has a strong balance sheet to weather potential challenges,” said Wong, who raised his recommendation on the stock Thursday to a buy.JPMorgan Chase & Co.’s DS Kim also lifted the stock’s rating earlier this month, saying technical selling pressure should subside despite “myriads of uncertainty.”Short interest, meanwhile, has sunk to 26% of shares outstanding from almost 75% in March, according to IHS Markit Ltd.Fluctuating SharesThe company’s stock has been on a wild ride since its ADRs began trading in June 2019, soaring even as short sellers called GSX a fraud. In September, the tutoring firm disclosed the U.S. Securities and Exchange Commission was investigating its second-quarter earnings report. The following month, Credit Suisse Group AG -- which helped lead the initial public offering -- downgraded the shares, citing increased competition and “mistakes” made during the company’s summer promotion. And in November, GSX announced a disappointing sales forecast.In each instance, the initial plunge was temporary and the stock kept recovering, hitting a peak in January amid a retail trading frenzy that targeted highly shorted names.It later turned out that Hwang’s Archegos had built a highly leveraged position in GSX and a handful of other companies using swaps provided by banks such as Morgan Stanley, Credit Suisse, Nomura Holdings Inc. and Goldman Sachs Group Inc.When some of those stocks, including ViacomCBS Inc. and e-cigarette company RLX Technology Inc., started dropping last month, the banks demanded collateral that Hwang couldn’t provide, so they sold giant blocks containing GSX and his other positions. Archegos lost $20 billion in capital in just days and GSX’s ADRs posted a record 52% two-day drop. The slump paused after Chen said he’d spend as much as $50 million of his personal fortune in the coming year to buy shares of his company, but that didn’t last.‘Sad Story’“It’s a truly sad story,” Junheng Li, founder and CEO of JL Warren Capital, an equity-research firm focused on Chinese companies, said this month in a Bloomberg Television interview. So many independent researchers have looked at GSX and everyone reached the same conclusion, she said: “The company is mostly fraud.”In an April 8 report, Grizzly Research concluded that the “mountain of evidence that point to GSX being a fraud is simply overwhelming” and Deloitte would be making “a grave mistake” if it signed off on the company’s 2020 financial results. GSX has been dismissive, saying in a statement the report “contains numerous errors, unsubstantiated statements, and misinterpretation of information.”A GSX representative didn’t respond to requests for further comment for this story.For his part, Chen said Thursday that he kept telling himself he’s “part of a beautiful life” and “things are so good.”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. India asks Twitter to take down some tweets critical of its COVID-19 handling World Reuters 210423 22h00m India asks Twitter to take down some tweets critical of its COVID-19 handling The Indian government asked social media platform Twitter to take down dozens of tweets, including some by local lawmakers, that were critical of India's handling of the coronavirus outbreak, as cases of COVID-19 again hit a world record. Twitter has withheld some of the tweets after the legal request by the Indian government, a company spokeswoman told Reuters on Saturday. The government made an emergency order to censor the tweets, Twitter disclosed on Lumen database, a Harvard University project. Tesla’s Stock-Market Devotees Might Get an Earnings Jolt Business Bloomberg 210423 21h00m Tesla’s Stock-Market Devotees Might Get an Earnings Jolt (Bloomberg) -- Die-hard Tesla Inc. investors might be forgiven for wondering why the thrill of owning the iconic carmaker’s stock has seemingly disappeared.After all, since catapulting over 700% last year, the shares have barely eked out a 3.4% advance in 2021. Meme stocks like GameStop have pushed Tesla out of the limelight, while Bitcoin has attracted almost all the buzz.But the electric-vehicle juggernaut’s first-quarter results on Monday might be just the thing to change all that.Since reporting surprisingly strong deliveries for the first three months of the year, expectations are running high. And Tesla also needs to convince investors it can hold onto its lead in the EV market in an increasingly crowded playing field. As a result, traders are pricing in a jolt to the shares. Options pricing suggests Tesla’s stock may fluctuate 7.2% in either direction, which would be the largest post-earnings move since January last year.“We acknowledge Tesla has shaken up the auto industry, but recent commitments and advancements from incumbent automakers such as Volkswagen and General Motors suggest to us that Tesla has achieved peak market share within the EV category,” Jeffrey Osborne, an analyst at Cowen, wrote in a note earlier this month.Legacy automakers in the U.S. and Europe have announced ambitious plans this year to enter the electric-vehicle race, ranging from everyday sedans to SUVs and luxury supercars. And while billionaire Elon Musk’s company has a significant edge over its competitors in terms of technology, software and brand awareness, its position could start to erode fast as more rivals join the fray.“Tesla sees itself as the apex player during the most formative phase of the industrialization of sustainable propulsion and transition off of fossil fuels,” Adam Jonas, an analyst at Morgan Stanley, wrote in a note on Thursday. He added the company would need to address issues surrounding sustainably sourced battery manufacturing and supply chain.The immediate priority is to expand capacity and begin “industrializing the ‘Tesla hegemony’ before the market gets even more crowded,” Jonas wrote.Investors will also be eager to get more details on Tesla’s plants in Germany and Austin, Texas, as well as any clues on how demand for its cars is shaping up this year. Tesla has not provided a delivery target for 2021, although it has hinted at a range of about 750,000 units.There’s also the risk that as more traditional automakers produce EVs, they’ll need to buy fewer regulatory credits from Tesla to stay compliant with emissions rules. That could eat into a source of Tesla’s revenue, which while small, has tended to disproportionately bolster profits since there are no costs associated with them.“Even in its first profitable year of 2020, adjusted pretax income was less than the earnings from selling credits to automakers that can’t build pickups and SUVs fast enough,” Bloomberg Intelligence analyst Kevin Tynan said in an interview. “The irony is that despite all the EV hype, legacy automakers are making so much money from selling internal combustion pickup trucks and SUVs that it has made Tesla look profitable.”Overarching issues aside, the recent fatal crash of a Model S car in Texas is also bound to get some airtime on the earnings call, as analysts try to dissect why the accident happened and whether the company’s driver assistance system, called AutoPilot, was involved in any way.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. Business Bloomberg 210423 21h00m Sell Signals All but Useless in Unchartable 2021 Stock Market (Bloomberg) -- If you bailed because of Bollinger Bands, ran away from relative strength or took direction from the directional market indicator in 2021, you paid for it.It’s testament to the straight-up trajectory of stocks that virtually all signals that told investors to do anything but buy have done them a disservice this year. In fact, when applied to the S&P 500, 15 of 22 chart-based indicators tracked by Bloomberg have actually lost money, back-testing data show. And all are doing worse than a simple buy-and-hold strategy, which is up 11%.Of course, few investors employ technical studies in isolation, and even when they do, they rarely rely on a single charting technique to inform decisions. But if anything, the exercise is a reminder of the futility of calling a market top in a year when the journey has basically been a one-way trip.“What we’ve seen this year is a very strong up market that didn’t get many pullbacks,” said Larry Williams, 78, creator of the Williams %R indicator that’s designed to capture a shift in a security’s momentum. A long-short strategy based on the technique is down 7.8% since the end of December.“All the overbought and oversold indicators, mine as well as anybody else’s, didn’t get many buy signals, but a lot of sells,” he said.The temptation to book profits and bail is getting hard to resist after the S&P 500’s best 12-month rally since the 1930s. Increasing the anxiety are a mountain of charts signaling a market that’s stretched to its limits.Earlier this month, the index soared 16% above its 200-day average, a feat that before December had occurred only a handful times over the past three decades. Moreover, the benchmark’s relative strength index has surpassed 70 on both a weekly and monthly basis, a sign that the market has risen too far, too fast.Add in pundits warning of bubble-like valuations and resurgent coronavirus concerns, and it’s a recipe for sell orders. Hedge funds, for instance, have hit the exits this month, stampeding out of tech stocks just days before Apple Inc. and Amazon.com Inc. report financial results.Yet avoiding the stock market for any period of time has proven to be the riskiest wager of all. The S&P 500 has yet to retrench more than 5% this year. At the same time, missing out on the big up days is more penalizing than ever. Absent the top five sessions, the index’s 11% gain dwindles to 2%.“To try to guess that this is the right time to be out of the market, you may as well go to Las Vegas,” said Mark Stoeckle, chief executive officer at Adams Funds. “There’s just as much risk doing that.”Bloomberg’s back-testing model purchases the S&P 500 when an indicator signals a “buy” and holds it until a “sell” is generated. At that time, the index is sold and a short position is established and kept until a buy is triggered.A strategy following RSI signals has dropped 10% this year. The damage occurred as stocks entered the year with unbridled momentum that touched off an order to sell. The trade has since been in place as the S&P 500 never pulled back fast and long enough to flash buy.The moving average convergence/divergence indicator -- better known as MACD -- has suffered a loss of 9.8%. Five of the nine trading signals that the model has produced have been buys, and four of them have lost money. In addition, all four short recommendations have been losers.Such is the cost of betting against momentum in a market where the S&P 500 has already eclipsed the average Wall Street strategist’s year-end target.“Today, and for much of 2020, the overbought conditions have been absorbed by the market with more strength, or at best a pause,” said Renaissance Macro Research co-founder Jeff deGraaf, who ranked as the top technical analyst in Institutional Investor’s annual survey for 11 straight years through 2015. “Overbought/oversold conditions are useless without first defining the underlying trend of the market.”Williams, who has been trading since 1962, agrees. Technical analysis tools aren’t broken, he says, but in a bull market that’s as resilient as this one, investors need to use them in the right context.“You have to have a different tool, if you will, for a job you’re doing,” he said. “I have a hammer that can build a house, but if I use the hammer to dig a hole in the ground, that’s going to be really hard.”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. Business Bloomberg 210423 21h00m U.S. Corporates Ready $30 Billion of Bond Sales After Earnings (Bloomberg) -- Investment-grade primary sales are projected to remain strong next week, with syndicate desks estimating about $30 billion in fresh supply, according to an informal survey of debt underwriters. More corporate deals are expected to come forward as companies emerge from earnings-blackout periods.Banks have anchored high-grade issuance over the past two weeks, with Citigroup Inc. and Wells Fargo & Co. the only two of the top six U.S. banks yet to issue new bonds after reporting earnings.High-grade debt continues to recover from the pandemic crisis, with agencies improving their ratings or outlooks on $128 billion of IG index debt in the week ended April 22, Citigroup strategists led by Daniel Sorid wrote.M&A activity also remains robust, which may boost new bond supply. Investment-grade issuer Panasonic Corp. agreed last week to take over U.S. artificial intelligence software developer Blue Yonder Group Inc. for $7.1 billion. The deal will be partially financed with a bridge loan that will be refinanced with hybrid financing, according to a statement.High YieldThe high-yield calendar is light heading into the week, but the issuance backdrop remains strong.Helios Software Holdings Inc., also known as ION Corporates, is set to price a $350 million 7-year junk bond on Monday, the only deal known to be in the high-yield pipeline.Strong growth, continued low-cost borrowing and an oil rally are all contributing to a friendly backdrop for high-yield issuance. This week, junk-rated U.S. companies set a record for most bonds ever sold in April, capping a 12-month issuance boom. The month’s supply currently stands at more than $40 billion.Next month has the potential to be even busier.“May is seasonally the strongest month of high-yield issuance,” Bank of America Corp. strategists led by Oleg Melentyev wrote in a report Friday. BofA is projecting $47 billion of high-yield supply next month.Barclays Plc sees an “extremely benign default environment” for high-yield bonds and leveraged loans in 2021, driven by better expectations for U.S. GDP growth, looser lending standards and strong new issue markets, strategists led by Bradley Rogoff wrote Friday.Loan launches slowed this week, with most deals earmarked to fund acquisitions and buyouts. Loan funds continue to see robust demand, posting a $1 billion-plus inflow for the third week in a row, according to Refinitiv Lipper. That’s the first time this has happened since December 2016, the data show.In distressed debt, mall owner Washington Prime Group’s amended forbearance agreement is set to expire in the middle of next week pending a further extension. Voyager Aviation Holdings also faces a deadline on its debt exchange offer that expires Monday.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. Business Reuters 210423 20h00m UPDATE 3-Kansas City Southern says it will talk with rival bidder CN; CP welcomes regulatory ruling Canadian Pacific Railway on Saturday welcomed a favorable regulatory decision related to its proposed merger with Kansas City Southern, on the same day that Kansas City said its board has determined that a competing offer from Canadian National Railway could be expected to lead to a "superior proposal." Kansas City Southern said the board made its determination unanimously and said it would open negotiations with Canadian National, although it remains "bound by the terms of the CP merger agreement." It noted that its board "has not determined" that the CN proposal "in fact constitutes a Company Superior Proposal." Traders Reach Crucial Moment in Timing of Fed Rate-Hike Cycle Business Bloomberg 210423 20h00m Traders Reach Crucial Moment in Timing of Fed Rate-Hike Cycle (Bloomberg) -- For rates traders fixated on where the Federal Reserve is going with policy in the next few years, a key number is 99.That’s basically the price where eurodollar futures expiring in December 2023 have been stuck for more than a week. And that means markets have calmed significantly since the feverish early-April bets that policy makers were going to get dragged into a more hawkish stance.Markets look poised to sit at this crossroads for a while. Few expect central bankers to adjust their stance when the Federal Open Market Committee meets next week or signal that they’re ready to start tapering bond purchases. Wednesday’s decision, along with Fed Chairman Jerome Powell’s press conference, could pave the way for greater conviction in the market, but that’s more likely to happen in the days and weeks that follow as economic reports roll in. Most policy makers have been resolute that they don’t plan to hike before the end of 2023.“We need to see some bit of new information, perhaps data surprises even further to the upside,” said Michael Lorizio, a senior bond trader at Manulife Investment Management in Boston. “The Fed did a pretty good job at its March meeting of indicating that its new framework will keep policy makers on the sidelines for quite a while.”Current eurodollar positioning underscores the need for fresh drivers to cement traders’ expectations on the timing of the Fed’s next tightening cycle. Timing matters because the market has a propensity to reprice aggressively when needed to account for faster-than-expected growth, as demonstrated in the first quarter -- a dynamic that could reemerge if both traders and the Fed are behind the curve.As December 2023 eurodollars illustrate, traders have adjusted their views on Fed policy all year. In January and much of February, the contract’s price was above 99, signaling traders were closer to the Fed’s dovish stance on rates.It then fell below that in late February and largely stayed there, showing that expectations had shifted toward a more hawkish Fed outlook. The selloff was at its most intense April 5, when it bottomed below 98.7 following a stellar jobs report. But the price has been back up around 99 since mid-April.It’s not just eurodollars that are at a crossroads. In a note Friday, Citigroup Inc. strategists William O’Donnell, Ed Acton and Yangyi Li wrote that the U.S. rates market is at “a moment of [tactical] truth.” Traders, they said, will soon decide if the recent short-covering rally in bonds will continue or whether the reflation narrative reasserts itself.They point to the 5-year Treasury rate and 10-year real yield, which strips out inflation to reflect a pure read on growth. Technical data suggests that the 5-year security is not only “overbought,” but that the recent momentum behind its April rally is starting to slow. The yield was around 0.82% on Friday.Meanwhile, the 10-year real yield, at around minus 0.78% on Friday, is hovering not far from the “well-defined” lows of the range seen since February and looks to be “locally and deeply overbought,” the strategists wrote.For Greg Wilensky at Janus Henderson Investors, there’s going to be “a lot of ‘moments of truth’” over the next three to six months.“Can we see some sharp moves in one direction or another?” asked the Denver-based head of U.S. fixed income. “It’s quite likely, as the result of people from one camp or another changing their minds. But one move in one direction doesn’t mean that trade will continue.”What to WatchEconomic calendar:April 26: Durable and capital goods orders; Dallas Fed manufacturing indexApril 27: FHFA house price data; S&P CoreLogic home prices; Conference Board consumer confidence; Richmond Fed manufacturing gaugeApril 28: MBA mortgage applications; advance goods trade balance; wholesale and retail inventories; FOMC decisionApril 29: Jobless claims; gross domestic product; Langer consumer comfort; pending home salesApril 30: Employment cost index; personal income and spending; PCE deflator; MNI Chicago purchasing managers index; University of Michigan gaugesFed calendar:April 28: FOMC decision; Powell’s press conferenceApril 29: Vice Chair for Supervision Randal Quarles discusses financial regulationApril 30: Dallas Fed President Robert Kaplan speaksAuction schedule:April 26: 13-week, 26-week bills; 2-year, 5-year notesApril 27: 2-year floating-rate notes; 7-year notesApril 29: 4-week, 8-week billsFor 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. U.S. Reuters 210423 20h00m U.S. administers 225.6 million doses of COVID-19 vaccines -CDC The United States had administered 225,640,460 doses of COVID-19 vaccines in the country as of Saturday morning and distributed 290,685,655 doses, the U.S. Centers for Disease Control and Prevention said. That is an increase from the 222,322,230 vaccine doses the CDC said had been administered by April 23 out of 286,095,185 doses delivered. The CDC tally includes two-dose vaccines from Moderna and Pfizer/BioNTech , and Johnson & Johnson's one-shot vaccine as of 6 a.m. ET Saturday. Health Yahoo Finance 210423 19h00m Coronavirus: Elevated U.S. case levels give 'an opportunity to mutate,' doctor warns As confirmed daily coronavirus cases remain over 50,000 and certain localities face new surges, a doctor stressed that new virus mutations could prolong the pandemic. Business Reuters 210423 19h00m UPDATE 1-Bitcoin falls 1.8% to $50,270 Bitcoin dropped 1.77% to $50,269.9 on Saturday, losing $906.75 from its previous close. Bitcoin, the world's biggest and best-known cryptocurrency, is down 22.5% from the year's high of $64,895.22 on April 14. Bitcoin and other cryptocurrencies suffered hefty losses on Friday amid fears that U.S. President Joe Biden's plan to raise capital gains taxes will curb investment in digital assets. World Reuters 210423 19h00m Iran's Al-Alam TV says tanker hit near Syrian city of Baniyas was Iranian Iran's Al-Alam television said an oil tanker that was hit on Saturday near Baniyas in Syria was one of three Iranian tankers that arrived a while ago at the oil terminal. Syria's oil ministry had said earlier that a fire was extinguished on an oil tanker off the coastal city of Baniyas after a suspected drone attack from the direction of Lebanese territorial waters, state media reported. Business Reuters 210423 18h00m Bitcoin falls 1.8% to $50,270 Bitcoin, the world's biggest and best-known cryptocurrency, is down 22.5% from the year's high of $64,895.22 on April 14. Bitcoin and other cryptocurrencies suffered hefty losses on Friday amid fears that U.S. President Joe Biden's plan to raise capital gains taxes will curb investment in digital assets. But while social media lit up with posts about the plan hurting cryptocurrencies, and individual investors complaining about losses, some traders and analysts said declines are likely to be temporary. World Reuters 210423 18h00m EXPLAINER-Biden declares Armenian genocide. Here's what we know about 1915 U.S. President Joe Biden said on Saturday that the 1915 massacres and forced deportation of Armenians in the Ottoman Empire constituted genocide, a move that infuriated Turkey and further strained frayed ties between the two NATO allies. In the late 19th century the Ottoman Empire's roughly two million Armenians began to assert nationalist aspirations. Several thousand more were killed in Constantinople, now Istanbul, in August 1896 after Armenian militants seized the Ottoman Bank. World Reuters 210423 18h00m QUOTES-Reactions after Biden announcement on Armenian genocide Following are reactions to the statement by U.S. President Joe Biden on Saturday formally recognising the 1915 massacres of Armenians in the Ottoman Empire as genocide. The historic declaration could further damage frayed ties with NATO ally Turkey. Politics Reuters 210423 18h00m Biden's recognition of Armenian massacres as genocide is to honor victims - U.S. official U.S. President Joe Biden's recognition that the 1915 massacres of Armenians in the final years of the Ottoman Empire constituted genocide aims to honor the victims and is not to assign blame, a senior administration official said, emphasizing that Washington still sees Ankara as an important NATO ally. Biden's first telephone call with Turkish President Tayyip Erdogan on Friday was "professional" and "straightforward", the official told reporters, speaking on the condition of anonymity. During the call, Biden told Erdogan he planned to make an announcement about the genocide statement, the official said, and that the state of U.S.-Turkey ties, which has deteriorated sharply in the past two years, was also briefly discussed. Politics Reuters 210423 18h00m UPDATE 5-In historic move, Biden says 1915 massacres of Armenians constitute genocide U.S. President Joe Biden said on Saturday that the 1915 massacres of Armenians in the Ottoman Empire constituted genocide, a historic declaration that infuriated Turkey and further strained frayed ties between the two NATO allies. The largely symbolic move, breaking away from decades of carefully calibrated language from the White House, was welcomed by the Armenian diaspora in the United States, but comes at a time when Ankara and Washington grapple with deep policy disagreements over a host of issues. Turkey's government and most of the opposition showed rare unity in their rejection of Biden's statement. World Reuters 210423 17h00m India in talks with Guyana for long-term crude supply -minister India, the world's third-largest crude consumer and importer, has approached Guyana's government about a possible long-term deal to buy the South American country's oil, a Guyanese official said. India has expressed interest in buying one of the 1 million-barrel cargoes Guyana's government is entitled to in order to test the crude in its refineries, according to Guyana's Natural Resources Minister Vickram Bharrat. India's oil demand has risen by 25% in the last seven years, more than any other country, and officials there have pledged to use the country's position as a leading purchaser as a "weapon" in an effort to keep prices low. Business Reuters 210423 17h00m CORRECTED-UPDATE 1-U.S. regulator gives CP Railway early win as Kansas City Southern review continues Canadian Pacific Railway Ltd on Saturday welcomed the U.S. Surface Transportation Board's (STB) decision to uphold a 2001 waiver it granted to Kansas City Southern being applicable to the merger of the two companies. The two companies will proceed with an application under the standards in the STB's pre-2001 major merger rules, according to a statement by Canadian Pacific. The STB, charged with the economic regulation of various modes of surface transportation, primarily freight rail, on Friday confirmed that the waiver it granted to Kansas City Southern in 2001 is applicable to the proposed friendly combination of the two companies. Business Reuters 210423 17h00m Kansas City Southern says it will talk with rival bidder CN; CP welcomes regulatory ruling (Reuters) -Canadian Pacific Railway on Saturday welcomed a favorable regulatory decision related to its proposed merger with Kansas City Southern, on the same day that Kansas City said its board has determined that a competing offer from Canadian National Railway could be expected to lead to a "superior proposal." Kansas City Southern said the board made its determination unanimously and said it would open negotiations with Canadian National, although it remains "bound by the terms of the CP merger agreement." It noted that its board "has not determined" that the CN proposal "in fact constitutes a Company Superior Proposal." Business Reuters 210423 17h00m Canadian Pacific welcomes STB's approval of merger with Kansas City Canadian Pacific Railway Ltd welcomed the U.S. Surface Transportation Board's (STB) decision to approve its merger with Kansas City Southern on Saturday. The two companies will proceed with an application under the standards in the STB's pre-2001 major merger rules, according to a statement by Canadian Pacific. The STB had approved the merger of the two companies on Friday. Leonardo to Buy 25% Stake in Hensoldt for About $733 Million Business Bloomberg 210423 17h00m Leonardo to Buy 25% Stake in Hensoldt for About $733 Million (Bloomberg) -- Leonardo SpA agreed to buy a 25.1% stake in Hensoldt AG from a KKR-controlled investment vehicle for 606 million euros ($733 million) to beef up the Italian aerospace company’s defense electronics business and seek a broader role in the European defense industry.Leonardo is buying the stake from Square Lux Holding II, the KKR-controlled entity, for about 23 euros a share, the Italian company said in a statement. The deal makes state-backed Leonardo the largest shareholder of the German defense company along with government-backed Kreditanstalt Fuer Wiederaufbau, which agreed in March to acquire a 25.1% stake. Square Lux will still hold 18% after the sale. The deal could strengthen Italian and German defense ties and allow Leonardo to play a more active role in European defense cooperation. The two companies have already worked together on the Eurofighter Typhoon project, and the tie-up could help them challenge the influence of French defense companies like Dassault Aviation and Thales.Italian Defense Minister Lorenzo Guerini said in a tweet after announcement that the “excellent operation conducted by the Italian company moves in the direction of European cooperation” in the defense sector.Earlier in the week, Hensoldt confirmed that Lux Holding was in advanced talks to sell part of the Hensoldt stake to companies including Indra, Saab and Thales, as well as Leonardo.Leonardo expects the deal to close in the second half, contingent on regulatory approval in Germany. UBS and Detusche Bank advised Leonardo.To view the source of this information click here(Updates with Italian minister comment and background)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. Business Reuters 210423 17h00m UPDATE 1-German prosecutors charge more VW managers in emissions scandal German prosecutors have charged 15 executives from Volkswagen AG and a car supplier in connection with the diesel emissions scandal that emerged in 2015, a spokesman for the prosecutor's office said on Saturday. The suspects are accused of aiding and abetting fraud in combination with tax evasion, indirect false certification and criminal advertising, said Klaus Ziehe from the prosecutor's office in the northern city of Braunschweig. The scandal saw more than nine million vehicles of the VW, Audi, Seat and Skoda brands sold to consumers with a so-called defeat device which helped to circumvent environmental tests of diesel engines.