Connect with us

Business

Stocks tumble on recovery fears; dollar climbs

Published

on

Stocks tumble on recovery fears; dollar climbs 1

By Rodrigo Campos

NEW YORK (Reuters) – Stocks fell around the world on Wednesday as investors turned more cautious over stretched valuations and the economic impact of the COVID-19 pandemic, while the dollar rose on its safe-haven appeal.

Oil prices were little changed as demand concerns were mostly offset by a large drop in U.S. crude inventories.

Stocks in the United States added to losses after the Federal Reserve left its key rate near zero and made no change to its monthly bond purchases, while flagging a potential slowdown in the pace of the economic recovery.

Wall Street had been weighed earlier by a slump in Boeing Co and by hedge funds dumping long positions to cover a short squeeze in GameStop Corp and AMC Entertainment.

“Fears are circulating that some investment funds might be quickly closing out positions as a way of shoring up their cash,” said David Madden, market analyst at CMC Markets UK.

“It is early days yet but we might see selling pressure ramp up for fear there could be a stampede for the exit.”

The Dow Jones Industrial Average fell 2.05%, the S&P 500 lost 2.57% and the Nasdaq Composite dropped 2.61%.

MSCI’s benchmark for global equity markets fell 2.04% to 652.5, while its index for emerging markets stocks fell 1.25%.

The pan-European STOXX 600 index lost 1.16% after the German government slashed its growth forecast for this year, while talk of further interest rate cuts by the European Central Bank hit banking stocks and the euro.

In currency trading, the dollar index rose 0.47%, with the euro down 0.4% to $1.2111.

“I think if anything the dollar is finding support from the Fed’s more cautious message,” said Joe Manimbo, senior market analyst at Western Union Business Solutions in Washington.

“I would say that the Fed having noted the recent moderation in the pace of the recovery is adding to concerns about the near-term outlook. The risk-off move today has gained traction in the Fed’s more cautious outlook for growth.”

The Japanese yen weakened 0.47% versus the greenback at 104.09 per dollar.

In emerging markets, currencies in Russia, Brazil, Mexico, and South Africa all lost over 1% on the day versus the greenback.

U.S. Treasury yields slid in line with weaker stocks as risk appetite hit a wall.

“(The Fed) did sound a little bit more downbeat, a little bit more concerned about the pace of the recovery and the pace of progress on vaccinations as well,” said Gennadiy Goldberg, senior U.S. rates strategist at TD Securities in New York.

“I think it’s meant to convey that they still realize there’s still quite a bit of weakness and that we’ve a long way to go before the recovery really takes off.”

Benchmark 10-year notes last rose 9/32 in

price to yield 1.011%, from 1.04% late on Tuesday.

Graphic: Fed Balance Sheet https://fingfx.thomsonreuters.com/gfx/mkt/xegvbeqrdpq/FedBalanceSheet.png

In commodities markets, oil prices were little changed despite a massive drawdown in U.S. crude inventories, as ongoing concerns about the coronavirus pandemic tempered buying interest.

Brent crude futures fell $0.42 to $55.49 a barrel. U.S. crude futures slid $0.04 to $52.57 a barrel.

Gold prices fell, pressured in part by the dollar strength.

Spot gold dropped 0.5% to $1,841.13 an ounce. Silver fell 1.13% to $25.16.

Bitcoin last fell 3.91% to $31,234.68.

(Reporting by Rodrigo Campos; additional reoirting by Herbert Lash, Laila Kearney, Gertrude Chavez-Dreyfuss, Chuck Mikolajczak and Karen Brettell; Editing by Matthew Lewis)

Business

UK delays review of business rates tax until autumn

Published

on

UK delays review of business rates tax until autumn 2

LONDON (Reuters) – Britain’s finance ministry said it would delay publication of its review of business rates – a tax paid by companies based on the value of the property they occupy – until the autumn when the economic outlook should be clearer.

Many companies are demanding reductions in their business rates to help them compete with online retailers.

“Due to the ongoing and wide-ranging impacts of the pandemic and economic uncertainty, the government said the review’s final report would be released later in the year when there is more clarity on the long-term state of the economy and the public finances,” the ministry said.

Finance minister Rishi Sunak has granted a temporary business rates exemption to companies in the retail, hospitality, and leisure sectors, costing over 10 billion pounds ($14 billion). Sunak is due to announce his next round of support measures for the economy on March 3.

($1 = 0.7152 pounds)

(Writing by William Schomberg, editing by David Milliken)

Continue Reading

Business

Discounter Pepco has all of Europe in its sights

Published

on

Discounter Pepco has all of Europe in its sights 3

By James Davey

LONDON (Reuters) – Pepco Group, which owns British discount retailer Poundland, has targeted 400 store openings across Europe in its 2020-21 financial year as it expands its PEPCO brand beyond central and eastern Europe, its boss said on Friday.

The group opened a net 327 new stores in its 2019-20 year, taking the total to 3,021 in 15 countries. The PEPCO brand entered western Europe for the first time with openings in Italy and it plans its first foray into Spain in April or May.

Chief Executive Andy Bond said its five stores in Italy have traded “super well” so far.

“That’s given us a lot of confidence that we can now start building PEPCO into western Europe and that expands our market opportunity from roughly 100 million people (in central and eastern Europe) to roughly 500 million people,” he told Reuters.

To further illustrate the brand’s potential he noted that the group has more than 1,000 PEPCO shops in Poland, which has a significantly smaller population and gross domestic product than Italy or Spain.

The company, which also owns the Dealz brand in Europe but does not trade online, has already opened more than 100 of the targeted 400 new stores this financial year.

Pepco Group is part of South African conglomerate Steinhoff, which is still battling the fallout of a 2017 accounting scandal.

Since 2019 Steinhoff and its creditors have been evaluating a range of strategic options for Pepco Group, including a potential public listing, private equity sale or trade sale.

That process was delayed by the pandemic, but Steinhoff said last month that it had resumed.

“The business will be up for sale at the right time. It’s a case of when, rather than if,” said Bond, a former boss of British supermarket chain Asda.

Pepco Group on Friday reported a 31% drop in full-year core earnings, citing temporary coronavirus-related store closures.

Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) were 229 million euros ($277 million) for the year to Sept. 30, against 331 million euros the previous year.

Sales rose 3% to 3.5 billion euros, reflecting new store openings.

($1 = 0.8279 euros)

(Reporting by James Davey; Editing by David Goodman)

Continue Reading

Business

Fashion-focused livery launch reveals new colours for Gasly, Tsunoda in 2021

Published

on

Fashion-focused livery launch reveals new colours for Gasly, Tsunoda in 2021 4

Scuderia AlphaTauri debuted their colours for the 2021 Formula 1 season as drivers Pierre Gasly and Yuki Tsunoda unveiled the team’s new look with the livery for their AT02 racecars. The setting was a fashion-forward launch in the all-new showroom of AlphaTauri, Red Bull’s premium fashion brand.

Salzburg (AUSTRIA) – Formula 1 team Scuderia AlphaTauri served up a stylish preview of the new F1 season with a presentation of its 2021 livery alongside key looks from the upcoming Autumn/Winter 2021 collection of Red Bull’s premium fashion brand, AlphaTauri. The launch – held at AlphaTauri’s new showroom in Salzburg, Austria and presented digitally – marked the first time that drivers Pierre Gasly of France and Yuki Tsunoda of Japan have appeared together as teammates.

After a successful first season racing in AlphaTauri colours, the Italian outfit is looking to challenge the top of the ultra-competitive midfield in 2021, and the two young drivers have been assigned clear-cut roles. Gasly is Team Leader. The 25-year-old, who made his Formula One debut with the team in 2017 under its former name, Scuderia Toro Rosso, has earned two F1 podiums. During the 2020 campaign, Gasly’s maiden win at Monza was a defining moment for him and the team under its new name.

Tsunoda, 20, is the first Japanese driver to race in F1 since 2014, his promotion coming off the back of a fast, four-season trajectory from winning the 2018 F4 Japanese Championship and finishing third in the 2020 FIA F2 Championship to entering the top-level ranks this year. Expectations are high for his rapid style of learning to complement the experience of Gasly.

“The decision to go for Pierre and Yuki in 2021 was taken because Scuderia AlphaTauri’s philosophy is still to give talented young drivers from the Red Bull Junior Program the opportunity to step up to F1 and to educate them – this is why Yuki now gets his chance,” explained Team Principal Franz Tost. “With Pierre on Yuki’s side we have an experienced driver, who can help our Japanese rookie to develop faster, but at the same time we can aim for good results. I think this pair is the best possible scenario to achieve both our targets, and I’m also confident this will be a successful one.”

In 2020, Scuderia AlphaTauri won best livery by a landslide, and the team’s all-new, matte blue and white racecar livery took center stage with the drivers at the fashion event, anticipating the 2021 model that will debut at pre-season testing in Bahrain on 12 March. The test is the precursor to an unprecedented 23-race schedule, and in preparation for the demanding calendar both drivers have spent time at Red Bull’s Athlete Performance Center for intense fitness testing.

“I’m ready to take on the role of team leader. Yuki is a very quick driver, and he will help us move the team forward – we will work together to achieve that,” said Gasly, the team’s all-time top points scorer. “I really believe last year was the team’s best in terms of the way it worked, the development, the performance and the way it managed the race weekends. I’m always hungry for more, and I’m sure we can achieve great things in 2021.”

Tsunoda, who was honored with the Anthoine Hubert Award for best Formula 2 rookie in 2020, added, “I’ve been lucky enough to spend some time with Scuderia AlphaTauri ahead of the season, so I’m already developing strong relationships and learning a lot from them – including Pierre, who is an incredible talent. My main goal is to learn quickly and deliver results as soon as possible, and I’m really excited to get started.”

The launch at the AlphaTauri Showroom not only gave Gasly and Tsunoda a preview of the AlphaTauri Autumn/Winter 2021 fashion collection, but the drivers had the chance to select their new off-grid looks ahead of the season start.

Ahmet Mercan, CEO AlphaTauri, summarized: “This is a triple reveal at a unique point of time: a new AlphaTauri Showroom where fashion meets F1, a first look at the AW21 AlphaTauri collection and the unveiling of the new Scuderia AlphaTauri F1 livery and driver pairing.”

Scuderia AlphaTauri fans don’t have long to wait for racing action: The FIA Formula 1 season kicks off at the Bahrain Test on 12-14 March, in preparation for the Bahrain Grand Prix on 28 March.

Continue Reading
Editorial & Advertiser disclosureOur website provides you with information, news, press releases, Opinion and advertorials on various financial products and services. This is not to be considered as financial advice and should be considered only for information purposes. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third party websites, affiliate sales networks, and may link to our advertising partners websites. Though we are tied up with various advertising and affiliate networks, this does not affect our analysis or opinion. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you, or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish sponsored articles or links, you may consider all articles or links hosted on our site as a partner endorsed link.

Call For Entries

Global Banking and Finance Review Awards Nominations 2021
2021 Awards now open. Click Here to Nominate

Latest Articles

Portable Oxygen Concentrators Market to Register 7.8% CAGR Through 2026; Sales to Surge as Oxygen Therapy Becomes Crucial in Covid-19 Treatments 5 Portable Oxygen Concentrators Market to Register 7.8% CAGR Through 2026; Sales to Surge as Oxygen Therapy Becomes Crucial in Covid-19 Treatments 6
Research Reports2 hours ago

Portable Oxygen Concentrators Market to Register 7.8% CAGR Through 2026; Sales to Surge as Oxygen Therapy Becomes Crucial in Covid-19 Treatments

Portable oxygen concentrator manufacturers are largely concerned with the maintenance of inventories throughout the coronavirus crisis, with optimization of supply...

Cancer Supportive Care Products Market to Reach US$ 32 Bn by 2030; Sales Limited by Complications for Cancer Patients Through Covid-19 Infections 7 Cancer Supportive Care Products Market to Reach US$ 32 Bn by 2030; Sales Limited by Complications for Cancer Patients Through Covid-19 Infections 8
Research Reports2 hours ago

Cancer Supportive Care Products Market to Reach US$ 32 Bn by 2030; Sales Limited by Complications for Cancer Patients Through Covid-19 Infections

The cancer supportive care products market is anticipated to reach a valuation of US$ 32 billion by 2030. The industry is expected...

Bronchoscopes Sales to Rise 1.5x Between 2018 and 2028; Potential Covid-19 Diagnostic Applications to Generate Lucrative Growth Opportunities 9 Bronchoscopes Sales to Rise 1.5x Between 2018 and 2028; Potential Covid-19 Diagnostic Applications to Generate Lucrative Growth Opportunities 10
Research Reports2 hours ago

Bronchoscopes Sales to Rise 1.5x Between 2018 and 2028; Potential Covid-19 Diagnostic Applications to Generate Lucrative Growth Opportunities

Bronchoscope manufacturers remain focused on development initiatives to improve product functionality and accuracy for higher adoption amid healthcare facilities. The bronchoscopes...

US$ 1.1 Bn Hypoparathyroidism Treatment Market Still in Infancy 11 US$ 1.1 Bn Hypoparathyroidism Treatment Market Still in Infancy 12
Research Reports2 hours ago

US$ 1.1 Bn Hypoparathyroidism Treatment Market Still in Infancy

Mushrooming incidences of thyroid cancer have amplified the number of thoracic surgeries, thus stimulating growth of hypoparathyroidism treatment market. Future...

Asia Pacific Plastic Additives Market Research Report by Type, by Production Technology, by Application, by Function – Global Forecast to 2020 – Cumulative Impact of COVID-19 13 Asia Pacific Plastic Additives Market Research Report by Type, by Production Technology, by Application, by Function – Global Forecast to 2020 – Cumulative Impact of COVID-19 14
Research Reports2 hours ago

Asia Pacific Plastic Additives Market Research Report by Type, by Production Technology, by Application, by Function – Global Forecast to 2020 – Cumulative Impact of COVID-19

The market report envelopes an all-in information of the global Asia Pacific Plastic Additives market and the nature of the market growth...

Comprehensive Report on Metal Stamping Market 2021 | Trends, Growth Demand, Opportunities & Forecast To 2025 | American Industrial Company, Martinrea International Inc., Magna International Inc 15 Comprehensive Report on Metal Stamping Market 2021 | Trends, Growth Demand, Opportunities & Forecast To 2025 | American Industrial Company, Martinrea International Inc., Magna International Inc 16
Research Reports2 hours ago

Comprehensive Report on Metal Stamping Market 2021 | Trends, Growth Demand, Opportunities & Forecast To 2025 | American Industrial Company, Martinrea International Inc., Magna International Inc

The market report envelopes an all-in information of the global Metal Stamping market and the nature of the market growth over the foreseeable...

Rheology Modifiers Market 2021 Segmentation and Analysis by Recent Trends, consumption by Regional data, Development, Investigation, Growth by to 2026 17 Rheology Modifiers Market 2021 Segmentation and Analysis by Recent Trends, consumption by Regional data, Development, Investigation, Growth by to 2026 18
Research Reports2 hours ago

Rheology Modifiers Market 2021 Segmentation and Analysis by Recent Trends, consumption by Regional data, Development, Investigation, Growth by to 2026

The market report envelopes an all-in information of the global Rheology Modifiers market and the nature of the market growth over the...

Fine Hydrate Market | Present Scenario, Key Vendors, Industry Share, and Growth Forecast up to 2026 | Nabaltec AG, Huber Engineered Materials, Hindalco Industries Limited 19 Fine Hydrate Market | Present Scenario, Key Vendors, Industry Share, and Growth Forecast up to 2026 | Nabaltec AG, Huber Engineered Materials, Hindalco Industries Limited 20
Research Reports2 hours ago

Fine Hydrate Market | Present Scenario, Key Vendors, Industry Share, and Growth Forecast up to 2026 | Nabaltec AG, Huber Engineered Materials, Hindalco Industries Limited

Future Market Insights in this report on the fine hydrate market has drawn an in-depth picture of the global market....

Ion Exchange Resins Market 2021 | Latest Trends, Demand, Growth, Opportunities & Outlook Till 2026 | Top Key Players: The Dow Chemical Company, Lanxess Ag, Purolite Corporation 21 Ion Exchange Resins Market 2021 | Latest Trends, Demand, Growth, Opportunities & Outlook Till 2026 | Top Key Players: The Dow Chemical Company, Lanxess Ag, Purolite Corporation 22
Research Reports2 hours ago

Ion Exchange Resins Market 2021 | Latest Trends, Demand, Growth, Opportunities & Outlook Till 2026 | Top Key Players: The Dow Chemical Company, Lanxess Ag, Purolite Corporation

An in-depth analysis of the current ion exchange resins market along with an effective evaluation of the future avenues of...

Rough Terrain Cranes Market Outlook 2016-2026| Global Growth Analysis and Forecast Report with Key Players – Liebherr Group, Terex Corporation, Tadano Ltd. 23 Rough Terrain Cranes Market Outlook 2016-2026| Global Growth Analysis and Forecast Report with Key Players – Liebherr Group, Terex Corporation, Tadano Ltd. 24
Research Reports2 hours ago

Rough Terrain Cranes Market Outlook 2016-2026| Global Growth Analysis and Forecast Report with Key Players – Liebherr Group, Terex Corporation, Tadano Ltd.

Future Market Insights presents a comprehensive analysis of the Middle East and Africa rough terrain cranes market in its new...

Newsletters with Secrets & Analysis. Subscribe Now