Funds Overseas Cash In on Crypto Boom

Funds Overseas Cash In on Crypto Boom

FINANCE NEWS
Some overseas investors are reaping big gains from a handful of exchange-traded products that have surged alongside many digital coins. Eight of the 10 best-performing exchange-traded products in the world this year are European-based funds that track some form of cryptocurrency. A binance coin-tracking exchange-traded product run by Swiss firm 21Shares AG is up 10-fold this year. A pair of ethereum notes managed by CoinShares in Europe have risen more than threefold, as has a ripple-based ETP run by 21Shares. Source link
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When Financial Experts Refer to a ‘Blowoff Top,’ Here’s What They Are Talking About

When Financial Experts Refer to a ‘Blowoff Top,’ Here’s What They Are Talking About

FINANCE NEWS
Lately, some financial-market experts have been using the phrase “blowoff top” to describe how prices for certain assets have behaved. While blowoff tops aren’t an everyday occurrence, they can have an impact on investors—potentially producing big profits or devastating losses. So, what are they? Blowoff tops can be—but aren’t always—the last stage of an asset bubble. Many market rallies begin with asset prices trending higher at roughly the same rate. But if their growth rate speeds up enough, that growth ends dramatically with a blowoff top. “While nothing is 100% absolute, most bull markets and bubbles do end in a final cathartic blowoff top,” says Shawn Hackett, president of Hackett Financial Advisors Inc. Source link
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‘Solar Bond’ Demand Goes Through the Roof

‘Solar Bond’ Demand Goes Through the Roof

FINANCE NEWS
Investment firms are buying record amounts of so-called solar bonds, debt issued to help U.S. individuals finance the purchase of rooftop solar panels to power their homes.Sales of solar bonds hit around $2 billion in the first six months of the year, roughly double levels during the same period in 2020 and 2019, according to deal tracker Finsight.com. The bonds, which are backed by bundles of loans made to homeowners for panel purchases, are being issued by a handful of financing companies that specialize in residential solar panels, including GoodLeap LLC, Sunnova Energy Corp. and Solar Mosaic Inc. By tapping bond markets, the companies are connecting fund managers looking for eco-friendly investments with homeowners who want to get cheaper—and potentially more reliable—electricity while cutting their carbon footprints. “It came down…
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United Airlines, Procter & Gamble, Moderna: Stocks That Defined the Week

United Airlines, Procter & Gamble, Moderna: Stocks That Defined the Week

FINANCE NEWS
United Airlines Holdings Inc. America’s vacation from travel restrictions might get cancelled. The European Union recommended halting nonessential travel from the U.S. because of the rise of Covid-19 cases, diplomats said Monday. The bloc’s earlier decision, in June, to place the U.S. on its safe list was a welcome relief for Europe’s tourist-heavy southern economies after pandemic-fueled recessions. The trade group Airlines for America called the recommendations a disappointment to the U.S. airline industry. United Airlines shares lost 3.8% Monday. Zoom Video Communications Inc. Will Zoom meetings survive the end of the pandemic? The company on Monday surpassed $1 billion in quarterly revenue for the first time in its history, but demand for its videoconferencing services is showing signs of slowing. Zoom said that small businesses and consumers were starting…
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James Simons, Robert Mercer, Others at Renaissance to Pay Up to $7 Billion to Settle Tax Probe

James Simons, Robert Mercer, Others at Renaissance to Pay Up to $7 Billion to Settle Tax Probe

FINANCE NEWS
Current and former executives of hedge fund Renaissance Technologies LLC will personally pay as much as $7 billion in back taxes, interest and penalties to settle a long-running dispute with the Internal Revenue Service, the firm said, a tax settlement that may be the largest in history. James Simons—the quantitative-investing pioneer who started Renaissance before retiring as the firm’s chairman on Jan. 1—will make an additional “settlement payment” of $670 million, according to the firm. Mr. Simons will also pay back taxes related to his gains. Source link
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West Virginia Gov. Jim Justice Settles With Bank Over Soured Business Loans

West Virginia Gov. Jim Justice Settles With Bank Over Soured Business Loans

FINANCE NEWS
West Virginia Gov. Jim Justice has come to an agreement with his longtime bank lender that will quash existing lawsuits they filed against each other over alleged defaults by some businesses owned by his family, according to the family and other people familiar with the matter. Under the deal, the Justice family and Carter Bank & Trust will restructure $368 million in loans made to several closely held companies, including coal-mining and agricultural interests throughout the South as well as the famed Greenbrier resort in West Virginia. The maturity of the loans will be extended, said Steven Ruby, a lawyer for the Justice family’s businesses. Source link
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Time to Switch Tracks Again in Canadian Rail Battle

Time to Switch Tracks Again in Canadian Rail Battle

FINANCE NEWS
It’s time for this railroad’s board to punch its ticket. Kansas City Southern , the smallest major freight railroad in the U.S., has been the subject of a bidding war between two Canadian rivals. Its shares fell Tuesday because of an unwelcome regulatory decision, but things turned out nearly as well as they could have for its shareholders. Having agreed in March to be bought by Canadian Pacific Railway Ltd. , it switched to a higher bid containing more cash by that company’s larger domestic rival, Canadian National Railway Co. It then stuck with Canadian National after receiving a counteroffer from its original suitor earlier this month while shrewdly delaying its shareholder vote until this Friday. A decision Tuesday by the U.S. Surface Transportation Board not to approve the voting…
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Support.com Stock More Than Triples in a Week, in a Squeeze Play

Support.com Stock More Than Triples in a Week, in a Squeeze Play

FINANCE NEWS
Individual investors have found their next short-squeeze target in little-known software company Support.com Inc. Shares of the company have more than tripled in the past week, pushing the stock to finish Monday at $36.39. That gives Support.com, a technical- and customer-support provider, a 38% gain for the day and a more than 1,500% jump for the year. Some retail traders are piling into Support.com, scooping up shares and placing bullish wagers on the stock. One of the reasons why: Support.com has elevated interest from bearish investors known as short sellers. Investors on social-media platforms have recently discussed the potential for setting up a short squeeze. Short sellers are investors who bet against a company by borrowing shares and selling them, hoping they can buy them back later at a lower…
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Chinese Bad-Debt Manager Huarong Confirms $16 Billion Annual Loss

Chinese Bad-Debt Manager Huarong Confirms $16 Billion Annual Loss

FINANCE NEWS
China’s top manager of distressed assets, China Huarong Asset Management Co., confirmed it made a net loss of roughly $16 billion last year, and warned investors that it fell short of regulatory requirements on financial strength. The publication of the 2020 results is a key step in the rehabilitation of Huarong. The company, a major borrower in international bond markets, had rattled global investors earlier this year after it delayed the release of its annual results. The figures, issued late Sunday Hong Kong time, showed that Huarong had made a net loss of about 103 billion yuan last year, equivalent to $15.9 billion, as it took huge write-downs on its assets. Those impairment charges were equivalent to $16.7 billion. Huarong, which is majority owned by China’s Ministry of Finance, had…
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Common Prosperity: Decoding China’s New Populism

Common Prosperity: Decoding China’s New Populism

FINANCE NEWS
After decades of hewing to Deng Xiaoping’s maxim that it is OK for some people to become wealthy first, Beijing suddenly seems more inclined to eat its rich—or at least take a healthy nibble out of their fortunes. Following the high-profile crackdown on tech firms like Alibaba and Meituan, an Aug. 17 speech from President Xi Jinping on “common prosperity” caught investors’ attention. Mr. Xi called for rationally “adjusting” excessive incomes and for high-income individuals and companies to contribute more to society. He also called for more aggressive measures to expand the middle class and the social safety net, including health and elderly care. China has long been one of the most unequal major economies in the world, with one common measure of income inequality, the Gini coefficient, at 0.465…
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