(Bloomberg) -- U.S. stocks look poised to extend last week’s rally as investors bet on the strength of the economic recovery, despite rising virus infection rates.The dollar weakened, while gold neared a seven-year high. Gains across retail and health-care shares helped the Stoxx Europe 600 Index erase an early retreat. Hong Kong stocks slumped after China moved to tighten oversight of the city. Crude oil hovered below $40 a barrel in New York.Even as virus cases rise in Germany and U.S. states of Florida, California and Texas, there’s growing speculation that politicians will be unwilling to put cities back on lockdown because of the economic toll. At the same time, markets have been supported by historic stimulus programs by central banks around the world, with policymakers vowing to get growth back on track.In the U.K., Prime Minister Boris Johnson is preparing to relax social distancing rules in a major boost to...
(Bloomberg) -- A top-performing fund manager who bought Amazon.com Inc. and Alphabet Inc. more than a decade ago is betting on winners from the Covid-19, believing the pandemic will fundamentally change people’s lifestyles.Mark Urquhart, who helps manage Baillie Gifford & Co.’s Long-Term Global Growth Equity Fund, says he’s picking up companies that may benefit from the growing trend of online and stay-at-home services, as the prolonged spread of the coronavirus will eventually alter consumer behavior.“We’ve been looking at companies that can benefit in the long-term from changes,” said Urquhart, who works at the $245 billion Edinburgh-based firm. “What the virus has done is accelerated some of the changes, perhaps open people’s minds, to consuming in different ways. And they realize the convenience. The economy is being more flexible. We see these companies will be larger in 10 years.”The fund is beating 99% of peers in three-year annual returns and is ahead...
Jun.22 -- Bank of England Governor Andrew Bailey signaled a major shift in the central bank’s strategy for removing emergency stimulus, stressing the need to reduce the institution’s balance sheet before hiking interest rates.
Writing for Bloomberg Opinion, Bailey said such a plan would give officials more firepower in future crises. David Goodman reports on "Bloomberg Markets: European Open."...
(Bloomberg) -- Wirecard shares tumbled as much as 50% in early trading, extending last week’s plunge, after the company said the missing 1.9 billion euros ($2.1 billion) from its balance sheet probably doesn’t exist and withdrew its latest set of financial results.While the number of analysts still covering the stock is dwindling, Bank of America cautioned that the shares will remain volatile and will be influenced by newsflow from stakeholders, noting that Wirecard could be ejected from Germany’s blue-chip DAX Index.The company is unlikely to be a takeover target for a publicly listed buyer given the lack of visibility on its financials, Citi said. The crisis of confidence in the shares means that Wirecard may need to change its name and hire well-respected industry figures, they added.Here’s a summary of what analysts are saying:Bank of America, Adithya Metuku(Underperform rated, PT EU14)Unlikely that clarity on Wirecard’s underlying business will arise for a...
Jun.22 -- U.S. Securities and Exchange Commission Chairman Jay Clayton was surprised and dismayed by the political battle that quickly erupted over his pending nomination to be the top federal prosecutor in New York, said people familiar with the matter. Derek Wallbank reports on "Bloomberg Daybreak: Europe."...
(Bloomberg) -- Wirecard AG was left fighting for survival after acknowledging that 1.9 billion euros ($2.1 billion) that it had reported as assets probably doesn’t exist, deepening an accounting scandal that has rattled Germany’s financial industry.The payments processor said it’s in discussions with creditors and considering a full-scale restructuring after pulling its financial results for fiscal 2019 and the first quarter of 2020. Previous descriptions of its business with third parties, which process transactions on Wirecard’s behalf, were “not correct.”Even before the early Monday statement, the unfolding scandal had seen Wirecard’s shares and bonds collapse, its chief executive depart, and left the company renegotiating debt terms with its lenders. In less than a week, the fintech once hyped as the future of German finance has lost almost 90% of its market value, with the shares slumping for a third trading day on Monday.Wirecard said it was in “constructive discussions” with its...
