Fan favorite Rahkeem Corwnall showed of his batting skills to reach 50 for the first time. SOURCE: BT
Fan favorite Rahkeem Corwnall showed of his batting skills to reach 50 for the first time. SOURCE: BT
INVESTIGATION ALERT: The Schall Law Firm Announces it is Investigating Claims Against RLX Technology Inc.
INVESTIGATION ALERT: The Schall Law Firm Announces it is Investigating Claims Against Cloopen Group Holding Limited
NBA Fearless Forecast Weekly Rank: 96
NBA Fearless Forecast Weekly Rank: 94
(Bloomberg) -- For decades, it’s been an article of faith in China’s credit market: Companies controlled by the central government will get bailed out if they ever run into trouble.Now investors aren’t so sure.Mounting concern about the financial health of China Huarong Asset Management Co. -- a distressed-debt manager controlled by the country’s finance ministry -- has fueled a record tumble in the company’s dollar bonds that’s stoking fears of market contagion.While China Huarong has said it has access to liquidity and is making payments on time, bond prices suggest investors are bracing for a potential restructuring that would be the country’s most consequential since the financial crisis that gave rise to China Huarong and other bad-debt managers in the late 1990s.Whether or not that comes to pass, the selloff underscores a historic shift in the world’s second-largest credit market. As Chinese President Xi Jinping dials back support for weaker borrowers to reduce moral hazard, state-owned enterprises have replaced their private counterparts as the country’s biggest source of defaults.SOEs reneged on a record 79.5 billion yuan ($12.1 billion) of local bonds in 2020, lifting their share of onshore payment failures to 57% from 8.5% a year earlier, according to Fitch Ratings. The figure jumped to 72% in the first quarter of 2021.The big question now confronting investors is how much pain China’s government is willing to tolerate as it tries to wean the bond market off implicit guarantees. None of the state-owned companies that have defaulted so far -- including Peking University Founder Group Corp., which is ultimately controlled by China’s education ministry -- were considered as systemically important as China Huarong.Chinese authorities have tried to strike a balance between instilling more market discipline and avoiding a sudden loss of confidence that might spiral into a crisis. But the tumult surrounding China Huarong, some of whose bonds are now trading below 80 cents on the dollar, highlights how quickly investor sentiment can deteriorate even at a time when the economy is strengthening.“China’s credit market is entering a new era as SOEs are emerging as the main source of stress,” said Shuncheng Zhang, an analyst at Fitch Ratings. Whatever the outcome for China Huarong, policy makers will likely allow more defaults in the state sector to reduce moral hazard and cultivate a more mature debt market, he added.The stakes are high as Beijing considers which companies to support. SOEs had the equivalent of $3 trillion in onshore bonds outstanding at the end of last year, or 91% of the total, data compiled by Fitch show. A small but growing portion of those bonds is now owned by international money managers, after a steady relaxation of China’s restrictions on foreign investment in recent years.While the speed of China Huarong’s debt rout has jolted some investors, the company has long been a source of potential risk. Its former chairman, Lai Xiaomin, was executed earlier this year for bribery. Under his leadership, China Huarong expanded into areas including securities trading and trusts that were a significant departure from the company’s original mandate of helping banks dispose of bad debt.This month’s selloff was triggered by China Haurong’s failure to publish 2020 preliminary earnings by a March 31 deadline, which business publication Caixin reported was due to a significant financial restructuring.Losses in the bonds accelerated on Tuesday -- spreading to other Chinese issuers including property developers -- as traders circulated a separate Caixin report discussing scenarios for China Huarong that included bankruptcy. The company is still considered investment grade by Fitch, Moody’s Investors Service and S&P Global Ratings, though all three have said they will review their ratings for a potential downgrade.It’s not the first time Beijing has grappled with the risk of credit-market contagion. A surprise onshore default by a state-linked coal producer in November triggered a brief selloff as investors reassessed the creditworthiness of investment-grade Chinese debt. Further defaults, including by prominent chipmaker Tsinghua Unigroup Co., also caused short-term market ructions but never came close to precipitating a crisis.Some level of contagion is actually healthy for China’s bond market as it shows investors are responding to changing levels of risk, according to Charles Chang, an analyst at S&P Global. He said recent SOE defaults have triggered a stronger reaction in bonds of peers than was the case a few years ago.“The new thinking is that as long as it doesn’t cause systemic risk, there isn’t necessarily a need for a bailout,” said Ivan Chung, an analyst at Moody’s Investors Service. “More SOE defaults are expected to occur in the future but they will likely be concentrated in fiscally weaker regions and sectors with heavy legacy debt and labor burdens.”It’s unclear whether Chinese leaders have discussed the fate of China Huarong’s bondholders, but there are signs authorities might be preparing to provide support to the company if needed.The finance ministry is considering transferring its controlling stake in China Huarong to a unit of the nation’s sovereign wealth fund that has more experience resolving debt risks, Bloomberg reported on Tuesday, citing a person familiar with the matter. The finance ministry aims to complete a transfer in the next few months, though any final decisions will require approval from China’s State Council, the person said.“The transfer, if realized, may offer more flexibility in financial support to Huarong,” said Bloomberg Intelligence analyst Dan Wang. “But it also indicates that Huarong’s debt risk may be much higher than the market had previously expected.”(Adds comments from S&P analyst in 15th 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. President Joe Biden's administration has told Congress it is proceeding with more than $23 billion in weapons sales to the United Arab Emirates, including advanced F-35 aircraft, armed drones and other equipment, congressional aides said on Tuesday. A State Department spokesperson said the administration would move forward with the proposed sales to the UAE, "even as we continue reviewing details and consulting with Emirati officials" related to the use of the weapons. The Democratic president's administration had paused the deals agreed to by former Republican President Donald Trump in order to review them.
Two South Australian police officers have been charged with assault after an investigation by the Independent Commissioner Against Corruption.In a public statement on Wednesday, commissioner Ann Vanstone QC said it would be alleged several police patrols became involved in an extended pursuit of a man suspected to be driving a stolen vehicle in October 2019.
Fresh focus on Greensill influence after procurement chief was made adviser while still a civil servant
Brazil's Senate has launched a probe into President Jair Bolsonaro's handling of the COVID-19 pandemic.The congressional investigation, known by its Portuguese acronym as a CPI, can result in a number of actions, including the referral of possible wrongdoing to law enforcement.
A three-part Purdue University webinar will discuss transformative innovations in agriculture & food for human health, equity, and competitiveness.
NBA Fearless Forecast Weekly Rank: 93
After a relatively quiet couple of months from Oculus on the software front, Facebook's VR unit is sharing some details on new functionality coming to its Quest 2 standalone headset. The features, which include wireless Oculus Link support, "Infinite Office" functionality and upcoming 120hz support will be rolling out in the Quest 2's upcoming v28 software update. The big addition here is a wireless version of Oculus Link which will allow Quest 2 users to stream content from their PCs directly to their standalone headsets, enabling more graphics-intensive titles that were previously only available on the now pretty much defunct Rift platform.
From military careers to pushing the royal family into modern times, the two men share plenty of similarities. Read more.
(Bloomberg) -- Grupo Televisa SAB will sell its content and media assets to Univision Holdings Inc. in a deal valued at $4.8 billion, deepening ties between the two giants of Spanish-language TV.Televisa, Mexico’s top broadcaster, will remain the largest shareholder in the new Televisa-Univision, with an equity stake of about 45%, according to a statement Tuesday. Under the terms of the agreement, Televisa will receive $3 billion in cash and $1.5 billion in Univision equity.Teaming up with Televisa will help bolster Univision’s push into streaming. Though Univision is the largest provider of Spanish-language TV and radio content in the U.S., it hasn’t become as big a force online. Less than 10% of the Spanish-speaking population currently uses a streaming service, compared with 70% in the English-speaking market.“Televisa-Univision can more aggressively pursue innovation and growth through digital platforms as the industry continues to evolve,” Televisa Chairman Emilio Azcarraga said in the statement.The deal will be financed through $1 billion of Series C preferred equity investment led by SoftBank Latin American Fund -- with participation by Alphabet Inc.’s Google and the Raine Group -- plus $2.1 billion of debt commitments arranged by JPMorgan Chase & Co.Bloomberg first reported in March that Televisa and Univision were considering a deal, and it said last week that SoftBank Group Corp. was in talks to join the transaction.The transaction is expected to be completed this year, if it gets regulatory approval in the U.S. and Mexico. The boards of both companies have already signed off on the deal. Univision Chief Executive Officer Wade Davis will lead the combined company, while Televisa’s Alfonso de Angoitia will become executive chairman of its board. SoftBank’s Marcelo Claure will be vice chairman of the board.The new entity will be a colossus of Spanish-language programming, drawing on the more than 86,000 hours of content that Televisa produces a year. The business will get four free-to-air channels from Televisa, as well as 27 pay-TV networks and stations; the Videocine movie studio; the Blim video-on-demand service; and the Televisa trademark.Univision, meanwhile, already has its namesake broadcast network in the U.S., plus the UniMás channel, nine Spanish-language cable networks, 61 TV stations and 58 radio stations. It also recently introduced a streaming service called PrendeTV.Long PartnershipTelevisa and Univision have a long history together. They forged a truce in 2010 after years of acrimony, striking a deal to share programming. At the time, Televisa bought a 5% equity stake and debt that could be converted into an additional 30% holding. It paid about $1.2 billion.Since then, both companies have struggled to keep up with the streaming revolution. U.S. media giants such as Netflix Inc., Walt Disney Co. and Amazon.com Inc. have built online-video empires, and they’re increasing making content in non-English tongues, including Spanish.But Televisa remains a dominant force in Spanish-language broadcasting. It exports its programming not only to the U.S. but to much of Latin America and even Russia and China.“Televisa-Univision will emerge as the leading global Spanish-language multimedia company, uniquely positioned to capture the significant market opportunity for Spanish speakers worldwide,” Davis said.Televisa will keep its telecom and cable operations through its Izzi and Sky businesses, as well as the main real estate where productions are carried out, broadcasting licenses and transmission infrastructure in Mexico.News content production for Mexico will be outsourced via a company owned by Televisa’s owners, according to the statement.Televisa will use the proceeds from the deal to pay down debt and looks to push its debt-leverage ratio down below 2.0 times. After the transaction, Televisa will no longer consolidate financials of its content segment.(Updates with expected to closing date 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.
NBA Fearless Forecast Weekly Rank: 92
Fraud charges against seven former Logan City councillors have been dropped as Queensland's corruption watchdog admitted that after more than two years of legal wrangling, it could not prove its case.Prosecutors officially discontinued the charges at a hearing in Brisbane Magistrates Court on Wednesday.
Kahn Swick & Foti, LLC ("KSF") and KSF partner, former Attorney General of Louisiana, Charles C. Foti, Jr., remind investors that they have until June 11, 2021 to file lead plaintiff applications in a securities class action lawsuit against FibroGen, Inc. (NasdaqGS: FGEN), if they purchased the Company’s securities and/or sold put options between November 8, 2019 and April 6, 2021, inclusive (the "Class Period"). This action is pending in the United States District Court for the Northern District of California.
(Bloomberg) -- Credit Suisse Group AG unloaded about $2 billion of stocks tied to the Archegos Capital Management blowup, according to people familiar with the matter.The stock offerings -- which included Discovery Inc. and Iqiyi Inc. -- follow a torrent of similar transactions that had already erased about $194 billion in market value as banks from New York to Zurich and Tokyo unwound leveraged equity bets by Bill Hwang’s fund.His private investment firm became the center of one of the biggest margin calls of all time late last month, and represented one of the most spectacular failures of risk-management and oversight in recent memory. The downfall of Archegos will result in $10 billion of losses to banks, according to analysts at JPMorgan Chase & Co. The debacle could attract regulatory scrutiny and potential fines for the banks involved, the analysts said this week.Read more: Archegos Ripples Through Banks’ Lucrative Hedge Fund BusinessA representative for Credit Suisse declined to comment. Discovery, Iqiyi and Credit Suisse all dropped in U.S. postmarket trading.Tuesday’s block trades -- which sold at the lower end of ranges -- included 19 million Class A shares of Discovery sold at $38.40, said one of the people, asking not to be identified discussing a private matter. In addition, 22 million Class C shares of Discovery sold at $32.35 while a stake of 35 million Iqiyi shares went for $15.85.Credit Suisse last week sold $2.3 billion worth of shares also tied to the debacle. The lender is also planning a sweeping overhaul of its hedge fund business following the Archegos’ implosion, which caused a $4.7 billion writedown at the bank. (Updates to reflect sale 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.
Colorado is among the states suspending the Johnson & Johnson COVID-19 vaccine that’s become the focus of a federal examination of rare blood clots. (April 13)
(Bloomberg) -- Singapore’s central bank kept key policy settings unchanged as the city-state sees a brighter economic rebound amid a firming global recovery, while saying its accommodative stance “remains appropriate.”The Monetary Authority of Singapore, which manages the exchange rate of the local dollar as its main monetary tool, held the slope, width and center of its currency band unchanged, it said Wednesday. The slope is currently 0%, a policy that implies the MAS isn’t seeking currency appreciation, which it first implemented at the outset of the pandemic last year.All 17 economists in a Bloomberg survey predicted no changes to the policy band, which the MAS uses to guide the local dollar against a trade-weighted basket of currencies. Rather than using interest rates to maintain price stability, it adjusts the slope, or pace of appreciation, as well as the width and center of that currency band. It doesn’t disclose the details of these components.“The Singapore economy will grow at an above-trend pace this year, but the sectors worst hit by the crisis will continue to face significant demand shortfalls,” the central bank said in its statement. “MAS will therefore maintain a zero percent per annum rate of appreciation of the policy band. The width of the policy band and the level at which it is centered will be unchanged. As core inflation is expected to stay low this year, MAS assesses that an accommodative policy stance remains appropriate.”The Singapore dollar gained 0.2% against the U.S. dollar to 1.3385 as of 8:25 a.m., although in trade-weighted terms the gain was about 0.1%, according to a model from Australia & New Zealand Banking Group Ltd.Vishnu Varathan, head of economics and strategy at Mizuho Bank Ltd. in Singapore, noted that the central bank dropped a previous reference to policy staying accommodative “for some time.”“The guidance is a nuanced calibration to a less aggressively dovish position,” he said. “In essence the MAS is shifting to a more state-dependent policy accommodation that will balance between uneven but ‘above-trend’ pace of recovery this year.”GDP GrowthThe decision was announced at the same time as government data showing gross domestic product in the first quarter grew 0.2% from a year ago, after falling 2.4% in the previous three months.On a non-annualized basis, GDP in the first quarter rose a seasonally adjusted 2.0% from the previous three months.This year’s growth is likely to exceed the upper end of the official 4%–6% forecast range, barring a setback to the global economy, the MAS said. However, the central bank said significant uncertainties remain -- including potential virus mutations and premature relaxation of social restrictions by governments -- which could derail the recovery.The fact that the authority flagged GDP above the upper end of the forecast, but didn’t give a revised range, “is potentially a less dovish/more hawkish hint going ahead for the October Monetary policy statement,” said Selena Ling, head of Treasury research and strategy at Oversea-Chinese Banking Corp. in Singapore. “The open-ended statement could also be attributable to the uncertainties pertaining to vaccination progress” and the resumption of international travel.Price PressuresCore inflation is expected to rise in coming months amid producer price pressures in major economies, the central bank said, reiterating its 0%-1% forecastfor the full year. It raised its all-items inflation forecast for the year to 0.5% to 1.5%, from a previous forecast of -0.5% to 0.5%.The MAS also left the policy settings unchanged last October, after it had taken unprecedented easing steps in March 2020. Fiscal stimulus has done much of the heavy lifting for the recovery, with the government announcing programs worth about S$100 billion ($75 billion) to support businesses and workers.More details from the first-quarter GDP report:Manufacturing expanded 7.5% in the first quarter from the same period in 2020 after growing 10.3% in the previous three monthsConstruction contracted 20.2% year-on-year in the three months through March after declining 27.4% in the fourth quarter of 2020Services industries shrank 1.2% after declining 4.7% year-on-year in the fourth quarter(Updates with chart, more 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.