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Investors are expected to exploit the widest price gap in Alibaba Group Holding shares, after a rally in Hong Kong drove its valuation above those listed in New York. The opportunity, though, may be fleeting in a volatile market.The e-commerce giant's equity has gained 22.6 per cent this month through July 21. Its American depositary receipt, whose value is equivalent to eight Hong Kong-listed shares, rose by 19.6 per cent in the same period.An investor who exchanges the ADRs at the equivalent of HK$249.88, based on overnight closing prices in New York, could on-sell them in Hong Kong for HK$254.80 each, assuming no transaction costs.As both instruments are fungible, ADR holders would need to switch into local shares before they can exploit the 2 per cent price differential in Hong Kong, a trade known as arbitraging in stock market parlance.Jack Ma, China's richest man, controls about 50 per cent of the...
In a decision on Monday, U.S. District Judge Raag Singhal in Fort Lauderdale, Florida said the seven plaintiffs failed to show that reasonable consumers were deceived into paying higher prices because of Burger King's actual cooking methods. "Burger King promised a non-meat patty and delivered," Singhal wrote....
Two Harbors Investment Corp (TWO) has announced that it has provided PRCM Advisers LLC with a notice of termination of their Management Agreement, citing material breaches and gross negligence in PRCM’s duties.Shares in TWO are rising 2% in Wednesday’s pre-market trading.The notice specifies that the agreement will terminate on August 14, 2020. No termination fee will be payable to PRCM in connection with the termination says Two Harbors.Previously TWO had decided not to renew the Management Agreement on the basis of unfair compensation payable to PRCM, which meant that the agreement should have terminated on September 19, 2020, with a $144 million termination fee.Because the Management Agreement is now being terminated for cause, however, no termination fee will be payable to PRCM says Two Harbors.Following the termination, Two Harbors will become a self-managed company. “We expect to continue to be managed by our strong and experienced senior management team... The Board...
Wall Street, however, is braced for Microsoft to report that Azure, its flagship cloud computing business, has slipped below 50% revenue growth for the first time ever. Analysts also expect some declines, such as for Microsoft's on-premises server purchases and sales of consumer devices. Azure's slowing growth, analysts said, was long expected as the business balloons to tens of billions of dollars per year....
Tesla Inc.’s (TSLA) billionaire founder Elon Musk qualified on Tuesday for a payout worth more than $2 billion, his second jackpot since May from the electric car maker as the stock surged a whopping 275% this year.Tesla’s stock was down 4.5% at the close on Tuesday, trimming the rally that has propelled the company’s market capitalization to over $290 billion, larger than any other carmaker.Despite Tuesday’s stock decline, Tesla’s six-month average market capitalization for the first time has reached $150 billion, according to a Reuters report. That triggers the vesting of the second of 12 tranches of options granted to the billionaire in his 2018 pay package to buy Tesla stock at a discount.In early May, Musk’s first tranche vested after Tesla’s six-month average stock market value reached $100 billion. Musk has already achieved targets related to Tesla’s financial growth that are also needed in order to vest the latest options...
(Bloomberg) -- Futures on the S&P 500 Index dropped with European stocks after China said the U.S. ordered the closure of its consulate in Houston, stoking tensions between the two countries. Treasuries edged higher and the dollar erased a loss.The yuan weakened after a Chinese Foreign Ministry spokesman said the move was unilaterally initiated by the U.S. and China would “react with firm countermeasures” if Washington didn’t “revoke this erroneous decision.” Gold held above $1,850 an ounce, while silver climbed to the highest in almost seven years.As earnings continue to roll in, investors are taking stock of a surge in global equities that left the MSCI gauge of developed and emerging-market shares at the highest since February. After the success of a European rescue package this week, focus turns to negotiations in the U.S. between Republicans and Democrats on more legislation to prop up the hobbled economy.“I’m more concerned going into...
Shares in Aurinia Pharma (AUPH) surged 9% in Tuesday’s extended trading after the U.S. Food and Drug Administration (FDA) accepted the filing of its New Drug Application (NDA) for voclosporin, a potential treatment for lupus nephritis (LN). This is a serious inflammation of the kidneys caused by the autoimmune disease systemic lupus erythematosus (SLE).Encouragingly, the FDA granted a faster six-month Priority Review for the application (instead of the usual ten months), with a PDUFA decision date set for January 22, 2021.The FDA also told Aurinia that they are not currently planning to hold an advisory committee meeting to discuss the application. The FDA can change this decision based on review of the pending NDA.“People living with LN are in need of an advanced therapy that quickly drives the disease into remission and mediates kidney damage,” said Peter Greenleaf, CEO of Aurinia. “We will continue to collaborate with the FDA during their review...
