Author: starbpo

Bitcoin has experienced a nearly 20% decline since the launch of the first exchange-traded funds (ETFs) directly investing in the cryptocurrency on January 11. The digital asset reached a high of $49,021 on the day the ETFs, issued by BlackRock Inc. and Fidelity Investments, among others, became operational. As of 6:03 a.m. Tuesday in London, Bitcoin was trading at $39,990, reflecting an 18% drop from the intraday peak. On January 11, nine new US spot Bitcoin funds commenced trading, and the $22 billion Grayscale Bitcoin Trust (GBTC) transitioned from a closed-ended structure to an ETF. During the initial six days,…

According to individuals familiar with the matter, Chinese authorities are contemplating a set of measures to stabilize the declining stock market. Previous attempts to restore investor confidence fell short, leading Premier Li Qiang to call for “forceful” steps. Policymakers aim to mobilize approximately 2 trillion yuan ($278 billion), primarily from the offshore accounts of Chinese state-owned enterprises, for a stabilization fund. This fund would be used to purchase shares onshore through the Hong Kong exchange link. Additionally, at least 300 billion yuan of local funds are earmarked to invest in onshore shares through China Securities Finance Corp. or Central Huijin…

Oil maintained its gains following fresh strikes by the US and UK against Iran-backed Houthi rebels in Yemen, escalating tensions in the Middle East and countering concerns about global supply abundance. The global benchmark Brent held steady around $80 a barrel, marking a nearly 2% surge on Monday, while West Texas Intermediate traded below $75. The recent strikes targeted eight Houthi locations to thwart potential attacks on commercial vessels in the Red Sea. The week commenced with a rise in crude prices amid reports of Ukrainian drone attacks on Russia’s Baltic coast energy facilities, introducing a new dimension to their…

Alphabet Inc.’s advanced technology laboratory, known as X, is reducing its workforce and turning to external investors to support its initiatives. In recent months, X has engaged in discussions with venture capitalists and other investors to secure funding for its projects. The lab is implementing a new structure that allows its projects to transition more seamlessly into independent startups with backing from both Alphabet and external supporters. Astro Teller, the leader of the lab, conveyed in an email to staff, “We’re expanding our approach to focus on spinning out more projects as independent companies funded through market-based capital.” This involves…

Archer-Daniels-Midland Co. faced a significant downturn following the suspension of its chief financial officer and a downward revision of its earnings forecast while an investigation into accounting practices unfolds. The company’s shares plummeted by as much as 18% in New York on Monday, marking the most substantial intraday decline since 2005. The Chicago-based firm announced on Sunday that Vikram Luthar, serving as CFO since 2022, has been placed on administrative leave, with Ismael Roig appointed as interim CFO. ADM has also opted to postpone the release of its fourth-quarter earnings and the filing of its annual report and Form 10-K…

US stocks edged higher on Monday, positioning the S&P 500 for another record high, as investors grew more optimistic about the state of the economy. They eagerly anticipated upcoming earnings, particularly seeking signs of an AI boom for tech companies. The S&P 500 (^GSPC) rose by 0.3%, following its first record close since January 2022 on Friday. The Dow Jones Industrial Average (^DJI) increased by around 0.2%, while the Nasdaq 100 (^NDX), dominated by tech stocks, surged by 0.5%. A surge in tech shares driven by AI has lifted stocks from their early-2024 slump, pushing major indexes into positive territory…

FTX’s affiliate, Alameda Research, has withdrawn a lawsuit against Grayscale Investments accusing the digital asset manager of self-enrichment at the expense of shareholders, according to a court filing on Monday. The lawsuit, initially filed by Alameda in a Delaware court in March of the previous year, had also alleged that Grayscale imposed high fees and denied investors the ability to redeem shares from its two crypto-focused trusts, namely the Grayscale Bitcoin Trust (GBTC) and the Grayscale Ethereum Trust. The legal action named Grayscale CEO Michael Sonnenshein, parent company Digital Currency Group (DCG), and its CEO Barry Silbert as defendants. Grayscale…

Global equities surged as optimism about robust U.S. economic growth and strong corporate earnings hinted at another potential record peak for Wall Street. Nasdaq 100 Index futures gained 0.6%, and S&P 500 contracts rose by 0.4%. In U.S. pre-market trading, tech giants Micron Technology Inc. and PayPal Holdings Inc. led the advance. Italy’s yield premium over Germany in bond markets tightened to the narrowest point in nearly two years. Despite a turbulent start to the year, U.S. equity markets are rebounding, fueled by confidence in an imminent interest rate cut by the Federal Reserve and speculation that the artificial intelligence…

Macy’s is declining a $5.8 billion takeover bid put forth by investment firms Arkhouse Management and Brigade Capital Management, asserting that the proposed financing plan lacks viability. Arkhouse and Brigade have proposed a $21-per-share offer for the outstanding stock. Last week, Macy’s Inc. announced a workforce reduction of about 3.5%, affecting approximately 2,350 employees, along with the closure of five of its locations. Macy’s board thoroughly assessed the offer, expressing not only reservations about the financing plan but also citing a perceived “lack of compelling value.” In a statement, Jeff Gennette, outgoing chairman and CEO of Macy’s, stated, “Following careful…

After years of regulatory adjustments, Washington is pushing through the most comprehensive overhaul of the world’s largest bond market in decades. Securities and Exchange Commission Chair Gary Gensler, formerly overseeing federal debt management at the US Treasury, advocates requiring the majority of Treasuries trading to move to a central counterparty clearinghouse, concluding in mid-2026 with the inclusion of all repurchase agreement transactions. This initiative is among the most significant since the 1991 Treasury auction scandal, reducing the risk of contagion from a financial institution collapse but raising risk-management costs for dealers. For Gensler and regulators, this move is crucial for…