China's BGI Genomics Co said on Tuesday it expects first-half net profit to be about eight times the amount reported in the same period last year after the global pandemic created a surge in demand for its coronavirus test kits. The genomics company, which said it has distributed more than 35 million kits across 180 countries and regions, forecasted a net profit of between 1.53 to 1.63 billion yuan ($218.32-$232.66 million) in the six months to end-June, a jump of around 700% from 198 million yuan a year ago. The novel coronavirus, which first emerged in China late last year, has to date infected over 13 million people globally and killed more than 575,000.
Equity investors are no longer losing sleep over the short-term hit to company earnings from coronavirus lockdowns, instead they are looking for early evidence to support the V-shaped recovery narrative that has lifted stocks out of their mid-March crash. As Europe Inc starts churning out trading updates expected to show a more than 50% dive on average in second-quarter profits, many investors are keen to see whether the market bounce back can be sustained. European stocks have on average risen a whopping 36% from March 16 lows sending their valuations soaring to over 17 times their projected annual profits, well above the historic average of 14 according to Refinitiv data, indicating investors are happy paying a premium to buy stocks despite the uncertainty.
Acclime, the premier corporate services provider in Asia, announces today that it has signed a cooperation agreement with R&P; China Lawyers (R&P;) whereby the corporate services team of the law firm will be rebranded and operate as Acclime China. With this partnership, Acclime builds a solid presence in China and extends its footprint across seven jurisdictions in Asia, including Mainland China, Hong Kong, Indonesia, Malaysia, Singapore, Thailand, and Vietnam, with over 200 professional staff.
The Global Semiconductor Silicon Wafer Market will grow by $ 12.22 bn during 2020-2024
ViacomCBS is ending its long-running relationship with Nick Cannon after he made anti-Semitic comments on his podcast. In the June 30 episode of "Cannon's Class," the actor and TV host interviewed Professor Griff, a rapper who was a part of Public Enemy before leaving the group after making anti-Semitic remarks. On the podcast, Cannon said […]
Stocks in Asia were mostly higher early Wednesday, following a rally in U.S. markets driven by optimism over the gradual economic recovery from the coronavirus pandemic.
Dow Jones futures rose on positive Moderna coronavirus vaccine news, following a stock market rally rebound. Three key earnings reports loom.
Asian shares jumped on Wednesday as optimism about a coronavirus vaccine bolstered risk appetite while the euro rose to a four-month top on the prospect of stimulus ahead of a crucial EU summit. MSCI's broadest index of Asia-Pacific shares outside Japan rose 1.2%, edging closer to a recent five-month peak. Japan's Nikkei added 1.5% to the highest since June 10 while Australia's benchmark index was up 1%.
The New York Times will shift part of its Hong Kong office to Seoul, in an ominous move as worries grow that the new national security law China imposed on the financial hub two weeks ago would curb media and other freedoms in the city. The Times said its employees have faced challenges securing work permits and it would move its digital team of journalists, roughly a third of its Hong Kong staff, to the South Korean capital over the next year. The move delivers a blow to the city's status as a hub for journalism in Asia, and comes as China and the United States have clashed over journalists working in each other's countries.
(Bloomberg) -- Social media-fueled rumors about banks collapsing are popping up at an unprecedented frequency in China, forcing regulators and even the police to step in to calm depositors.Just since the past month, worried savers have descended on three banks to withdraw funds amid rumors of cash shortages that were later dismissed as false. Over the weekend customers rushed to a bank in the northern Hebei province to take out money, prompting local regulators to publicly vouch for the soundness of its lenders as the police halted the run.Confidence in the $43 trillion banking system is eroding among the nation’s more than 1 billion account holders, threatening a cornerstone of China’s rise into an economic powerhouse. After several bailouts and the first bank seizure in more than two decades last year, the coronavirus outbreak and its economic fallout have exacerbated an already shaky situation in the world’s largest banking system.“The perception Chinese savers had of banks being risk free is changing even though in nearly all recent cases their deposits have been protected,” said Zhang Shuaishuai, a Shanghai-based analyst at China International Capital Corp. “Once a rumor like this spreads, it brings immediate liquidity risk to a bank.”For decades, deposit-taking has provided a stable and low-cost funding base for China’s financial market, playing a key part in the rise of its economy to the second largest in the world. Chinese households hold about 90 trillion yuan ($13 trillion) of bank deposits, more than anywhere else in the world.Regulators are now not only seeking to soothe nerves publicly, but are also raising the protection to preserve this cushion for banks. The run in Hebei came after authorities kicked off a pilot program to limit large transactions in the province.The two-year program, which is set to be expanded to Zhejiang and Shenzhen in October to encompass 70 million people, would require retail clients to pre-report any large withdrawals or deposits of 100,000 yuan ($14,000) to 300,000 yuan.The China Banking and Insurance Regulatory Commission on Saturday again warned that lenders are facing a surge in bad debt as the economy sputters at its slowest pace in four decades.While stopgap measures, which have included rolling over debt and delaying loan payments, have limited an immediate surge in bad debt, the regulator said the fundamental issues of poorly managed banks and the deteriorating ability of companies and individuals to repay loans are still far from solved. They are also asking banks to forgo 1.5 trillion yuan in profit this year by offering lower lending rates, cutting fees, deferring loan repayments, and granting more unsecured loans to small businesses to help the economy.Authorities have more than 3,000 banks to oversee, most of which are small, rural entities without ready access to capital. In another unprecedented move, China now plans to allow local governments to use about 200 billion yuan from bond sales to help smaller banks replenish their capital.The industry overall may suffer an 8 trillion yuan increase in bad debt this year, S&P Global has estimated. Small banks are facing a $349 billion shortfall in capital, according to an analysis by UBS Group AG. Putting that figure at only $50 billion, the regulator said the shortfall could mean slower profit growth or even sliding profits at some institutions.Corporate bonds are also suffering, adding further pressure on banks. About 80 billion yuan worth of Chinese bonds defaulted on and offshore so far this year, the most in at least three years, according to data compiled by Bloomberg.Squashing RumorsIn the most recent episodes, authorities stepped in last month to halt banks runs at two local lenders in Hebei and Shanxi. On July 11, savers rushed to withdraw money from Hengshui Bank Co., also based in Hebei, before the police put a stop to it.In response, the local offices of the People’s Bank of China and the CBIRC said in a joint statement that Hengshui Bank and its branches are legitimate financial entities where any savings under half a million yuan are protected under China’s deposit insurance regulation. They reassured depositors that their money is safe and urged them not to “blindly” withdraw savings.Police took people into custody, issuing reprimands to those spreading rumors, according to the statement.Hengshui Bank didn’t immediately respond to calls and emails seeking a comment.More broadly, regulators have been working on a plan since last year that would see more small banks merge to shore up their strength, but so far little of that effort has come to fruition. Investors were spooked last year when authorities seized inner-Mongolia-based Baoshang Bank Co., in the first state takeover since 1998. They have since engineered rescues by having state-run entities inject capital into other struggling lenders such as Bank of Jinzhou Co.“China has too many banks,” said Zhang. “Quite a few of them are weak in corporate governance and earnings capacity. A better option is to take a more proactive approach to restructuring those regional banks.”(Adds details on bank profits in ninth paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- China has used offers of generous subsidies to amass the world’s largest array of wind and solar power. But there’s a problem: it’s not fully paying them.Renewable energy projects have grown far faster in recent years than the pool of money the government sets aside to pay the fees it promised them. The result is a total debt of $42 billion and growing, according to one analyst, with a payoff not seen until 2041 without a change in policy.While China is moving away from subsidies for new projects, the delayed payments are weighing on developers and restricting their ability to borrow more money to fund new generation. The issue is of particular importance because of the huge amounts of money pouring into the sector in China -- $818 billion in the last decade, more than double any other country, according to BloombergNEF.“Without structural change to address the issue, the subsidy receivables in the whole industry would continue to grow and drag companies’ balance sheets and investment capabilities,” Tony Fei, an analyst with BOCI Research Ltd., said in a July 6 note.China for several years now hasn’t been paying its full subsidy bill, and the mountain of debt keeps growing higher. The government funds the payments with a surcharge on electricity bills, and hasn’t been willing to increase that or find new sources as the number of subsidy-eligible wind and solar projects soared last decade.Now the lack of payments have become a major concern for investors in China’s clean power operators. Take China Longyuan Power Group Corp., the country’s largest wind operator, for example. The firm’s shares have plummeted as its accounts receivables soared to more than 18 billion yuan last year.Longyuan now trades below its book value because of the mounting delayed payments, said Robin Xiao, an analyst at CMB International Securities Ltd. Denmark’s Orsted A/S, another energy company with a large portfolio of wind assets, trades at nearly 5 times its book value, by comparison.The low valuation for Longyuan and other the Chinese renewable firms restricts them from issuing more equity to fund new projects, Xiao said. That’s leading to a rash of privatizations on the Hong Kong Stock Exchange.Other private developers, such as GCL New Energy Holdings Ltd., have had resort to selling off their renewable power assets to help reduce debt. Chinese state-owned developers, which have easier access to low-cost capital, are happy to snap up such projects, BloombergNEF analyst Jonathan Luan said.China has been offering renewable subsidies since at least 2006, typically in the form of a promised payout for electricity generated over 20 years. The rates were higher than those for coal plants, and gave developers and banks confidence their investments in wind and solar installations would pay off.Such early subsidies, also a major feature in markets like Germany, helped create the demand for solar panels and wind turbines that allowed manufacturers to build their economies of scale. Thanks to that virtuous cycle, wind and solar power is now cheaper than fossil fuel plants in many parts of the world.“Without China’s subsidies, the renewable industry wouldn’t be in the position that it is today to compete with coal on price alone,” said BOCOM International Holdings Co. analyst Louis Sun.Success came faster than anyone expected, and China’s wind and solar installations rose to almost 421 gigawatts as of the end of March, a more than four-fold increase from 2013, data from National Energy Administration show.Subsidy budgets have lagged. For 2020, the Ministry of Finance boosted its budget for renewable power subsidies to 92.36 billion yuan this year, 7.5% more than it spent last year. That still falls far short of the 242.3 billion yuan required for this year alone by the projects already qualified for subsidies, according to BNEF’s Luan.The Ministry of Finance, which is responsible for allocating the subsidies, didn’t reply to a faxed request seeking comment. China is currently looking to keep electricity prices low to aid a post-pandemic economic recovery, meaning an increase in the surcharge that funds subsidies is even less likely, Luan said.For new projects, China is forcing renewables to compete against dominant coal power on price alone. Subsidies for onshore wind will be phased out after this year, with offshore wind following from 2022. The country has reduced benchmark solar power prices, including subsidies, by 91% since 2007, according to data from State Grid Corp. of China.Still, cumulative subsidies owed by the government to wind and solar developers reached 293 billion yuan at the end of 2019, including projects under review, according to BOCI. If the government increases its subsidy budget by an average of 4% a year, the debt would continue grow to as much as 1.06 trillion yuan by 2032. The 20-year deals would start rolling off then, and China would be able to start making back payments, writing the final checks in 2041, according to BOCI.Clean energy plants accounting for about 140 gigawatts, or a third of the total renewables fleet, are currently under review to be added to the subsidy list, Luan said. Those plants, which came online after March 2016, have so far been paid the same as coal-fired plants in their respective provinces, which is usually about half of what they would receive with subsidies.China will prioritize full subsidy payments from this year’s budget to clean energy plants approved from 2019 and projects aimed at easing poverty, the National Renewable Energy Information Management Center said earlier this month. All other projects will receive about 30% to 50% of promised payments, it said.The government needs to “solve overdue subsidies for existing projects,” said BOCOM’s Sun. “There’s no effective measure for now, and whether China can accelerate its pace to ease the issue may only depend on a recovery of the economy.”(Updates solar prices in 16th paragraph and analyst comment in 17th paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
University students from across the world are being invited to put their AI algorithm skills to the test on a global stage at the 2020 DIGIX GLOBAL AI CHALLENGE, which launched on 8th July.
MAHWAH, NEW JERSEY&160;-, July 14, 2020 -- Actors, musicians, athletes, social activists, organizations, and more have come together to host and kick off The Andrew.
Options investors are ramping up bets on some of this year's biggest winners, including Amazon.com Inc, Netflix Inc and Tesla Inc, even as they turn cautious on the wider market amid a resurgent U.S. coronavirus outbreak. Investors are betting that tech-related stocks will remain comparatively resilient to the coronavirus-fueled economic disruptions that have battered sectors such as retail and travel, despite growing concerns about stretched valuations following steep rallies. Analysts also see another factor driving the momentum stocks: fear of missing out, or FOMO.
The Global Application Lifecycle Management Market will grow by $ 1.78 bn during 2020-2024
The complaint filed in Suffolk Superior Court claims Uber and Lyft violate state minimum wage, hour and sick time laws. "Uber and Lyft have built their billion-dollar businesses while denying their drivers basic employee protections and benefits for years,” Massachusetts Attorney General Maura Healey said in a statement.
Hyperion Motors has been working on a supercar project for years, and according to a teaser video, we’ll meet the hydrogen-powered XP-1 next month. For now, all we have is this vague teaser, which contains a shadowed image of a swoopy vehicle that will wrap around a “high-performance, zero-emissions hydrogen-electric powertrain.”
(Bloomberg) -- Equity issues are surging to a record high and projected to stay strong for the rest of 2020 even as the pandemic upends traditional in-person marketing junkets.The initial public offerings process-- not just how deals are getting done but also how they’re structured -- has adapted in ways that will change capital markets for years to come.Instead of companies shuttling between cities and sometimes continents to meet investors, roadshows have gone virtual and are now often shortened to four to five days from seven to eight. Meanwhile, more informal test-the-waters meetings have lengthened and prospective investors are indicating their interest earlier.“Investors are realizing the IPO roadshows are becoming more condensed from a time standpoint, which puts more importance on the testing the waters interactions with investors in advance of the IPO launch,” said Ryan Parrish, head of Bank of America Corp.’s Americas equity capital markets syndicate.While these meetings are similar to a formal roadshow, no official orders for shares are taken. The U.S. Securities and Exchange Commission amended rules last year to allow all companies to have these meetings, which were previously only available to emerging growth companies.Their purpose can also be to find potential cornerstone or anchor investors to secure commitments before formal book building starts. That can smooth the first few months of trading, allocating more stock to large investors who are less likely to sell right away.ZoomInfo Technologies Inc., a business intelligence company that went public last month, received commitments from BlackRock Inc., Fidelity Investments and Dragoneer Investment Group LLC for as much as $300 million combined in advance. Cornerstone investments have long been common in listings across Asia, but have been less popular in the U.S., especially on competitive technology offerings.Commitments can take the form of an anchor investment, which is a large order in the IPO, for investors who want to avoid triggering an immediate regulatory disclosure.Most listings now attract significant indications of interest from investors before the deal launch, said Will Connolly, head of technology ECM at Goldman Sachs Group Inc. That wasn’t common before the pandemic.Debut PopsAnchor deals have helped bring back the feted IPO pop, when a company’s shares skyrocket from the offering price on their debut.All but eight of the 37 U.S. IPOs that raised at least $100 million since mid-March saw their shares jump by at least double-digits from their offer prices after the first day of trading. Only one major listing, private equity-backed supermarket chain Albertsons Cos., didn’t price within or above the marketed range.On Tuesday, bank software provider nCino Inc. rose 195% in its trading debut, the biggest first-day gain for a U.S. listing this year.Despite steep drops in March when the U.S. locked down, the Nasdaq Composite Index and S&P 500 are now both hovering around their all-time highs. As the equity markets roared back, equity issuance in the second quarter exceeded $130 billion, the most active on record. That compared to $41 billion in volume in the first quarter.In June, new listings, including those by blank-check firms, and follow-on offerings raised a combined $67 billion.Record follow-on trades were led by PNC Financial Services Group Inc., which in May sold its $14 billion stake in BlackRock Inc., and Sanofi raising $11.7 billion by selling its holdings in Regeneron Pharmaceuticals Inc.Look AheadDespite a presidential election looming, it could be an unusually busy third quarter.Palantir Technologies Inc. announced this month it has filed confidentially with regulators for a public stock listing, a major step toward a market debut that has been many years in the making. The company has been weighing a direct listing instead of a traditional IPO, people with knowledge of the matter have said. The parent company of the mortgage giant Rocket Mortgage and Quicken Loans is also on deck.“If the market remains healthy and strong, more people will try in September as an opportunity in front of the election,” said Colin Stewart, ECM vice-chairman at Morgan Stanley.Other areas that should remain hot are IPOs by biotechnology firms and blank-check companies. Jordan Saxe, Nasdaq’s head of health-care listings, expects about 45 to 50 biotech listings this year, raising over $9 billion combined. Saxe had earlier forecasted 30 to 35 listings raising $3.5 billion.For blank-check deals, the largest one on-record is close to pricing within days. It’s the special purpose acquisition company, or SPAC, backed by billionaire investor Bill Ackman. Pershing Square Tontine Holdings Ltd. could raise $4 billion from an IPO this week.SPACs used to be viewed as an IPO last resort, which isn’t the case anymore, said Barbara Ard, who leads accounting and transactions services at MorganFranklin Consulting. “It’s now just a different way to get access to capital.”While bankers trickle back into some offices in New York and other U.S. finance centers, some plans are being postponed while Covid-19 cases surge in certain states. But that’s unlikely to hurt activity, advisers said, as they have had several months to adapt to the new way of getting deals done.“An IPO can be done virtually,” said Greg Chamberlain, head of JPMorgan Chase & Co.’s U.S. technology, media and telecommunications equity capital markets. “The process changes, evolves and innovates.”(Updates with nCino closing price in 12th paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
More than 200,000 Brazilian people and groups will next week kick off a 5 billion-pound lawsuit against Anglo-Australian miner BHP in Britain over a 2015 dam failure that led to Brazil's worst environmental disaster. An initial, eight-day hearing will establish whether the case can be heard in Britain, although the judge is expected to reserve judgment until later in the year. BHP spokesman Neil Burrows said the claim did not belong in Britain because it duplicated proceedings in Brazil and the ongoing work of the Renova Foundation, an entity created by the miner and its partners to manage reparations and repairs.
New York, July 14, 2020 -- Reportlinker.com announces the release of the report "Automotive Engine Belt & Hose Market Research Report by Type, by Vehicle Type, by.
The U.S. Centers for Disease Control and Prevention is calling on Americans to wear facial coverings following new findings that increased mask use has been effective in helping to prevent transmission of the coronavirus.