• AI Is the Next Accelerator for Digital Transformation, Says Microsoft’s Haupter

    AI Is the Next Accelerator for Digital Transformation, Says Microsoft’s Haupter

    Sep.20 -- Ralph Haupter, president of Asia and corporate vice president at Microsoft, discusses how AI will disrupt the tech space, the role it plays in Asia’s growth, reskilling workers, how the trade war is impacting spending by companies and his outlook for the industry. He speaks exclusively on “Bloomberg Markets: Asia” from the sidelines of the Milken Institute Asia Summit in Singapore.

  • Verizon Media Group CEO on Company Reorganization, Revenue Diversity Plan, Asia Focus

    Verizon Media Group CEO on Company Reorganization, Revenue Diversity Plan, Asia Focus

    Sep.19 -- Guru Gowrappan, executive vice president and group chief executive officer at Verizon Media, discusses the reorganization of the company, his plan to diversify revenue, how different the business will look in the future and his strategy for Asia. He speaks exclusively on “Bloomberg Markets: China Open” from the sidelines of the Milken Institute Asia Summit in Singapore.

  • Buybacks not always a boon - Gabriel
    Reuters Videos

    Buybacks not always a boon - Gabriel

    Microsoft and Target rallied Thursday after announcing big buybacks, but Thomson Reuters' Terence Gabriel tells Reuters' Fred Katayama that shares of big companies active in buybacks have underperformed the broader market.

  • Prolonged Funding Stress Boosts Calls for Permanent Fed Fix

    Prolonged Funding Stress Boosts Calls for Permanent Fed Fix

    (Bloomberg) -- Signs that stress in U.S. funding markets is rebuilding ramped up pressure on the Federal Reserve to permanently increase reserves by boosting Treasury holdings, even as it was preparing a temporary liquidity injection for a fourth straight day.The New York Fed plans to do another $75 billion overnight repo operation on Friday. It follows liquidity doses of the same size Thursday and Wednesday, and $53.2 billion on Tuesday. The central bank is deploying this remedy for the first time in a decade.The Repo Market’s a Mess. (What’s the Repo Market?)This week’s actions have helped calm the funding market, with repo rates declining to more normal levels after soaring to 10% Tuesday, four times last week’s levels. However, swap spreads tumbled to record lows Thursday amid concern Fed policy makers haven’t announced more aggressive steps. Swaps are signaling less appetite for Treasuries, driven by concern traders won’t be able to fund purchases through the repo market.“The Fed needs to do at least double what they offered now and maybe even be more vigilant and do something even more significant,” said Thomas Simons, senior economist at Jefferies LLC. “This attitude of trying to kind-of fix the problem is not great.”There are others signs of investor apprehension about future funding levels, which is manifesting in different ways.Treasury bill sales on Thursday were met with a very poor reception, as investors demanded to be compensated via higher yields for locking up their cash. Meanwhile, in cross currency basis -- which show floating-rate payments in different currencies -- the premium for the Australian dollar over its U.S. counterpart collapsed by the most in eight years during Asian trading hours.So while overnight general collateral repurchase agreement rates continued to retreat Thursday, trading around 1.725%, market participants say the Fed needs to reveal a permanent fix, rather than these ad-hoc overnight operations.“We expect these episodes of funding stresses to become more frequent with demand for funding and U.S. Treasury supply forecast to increase heading into year-end and the Fed’s reserve levels likely to drop further,” Jerome Schneider, head of short-term bond portfolios at Pacific Investment Management Co., wrote in a note Wednesday with his colleagues.The operations, once common before the 2008 financial crisis, temporarily add cash as the Fed takes government securities as collateral. Wall Street bond dealers submitted about $84 billion of securities for Thursday’s Fed action, the most in the three days.The latest addition of liquidity follows the Federal Open Market Committee’s move Wednesday to reduce the interest rate on excess reserves, or IOER, by more than their main interest rate, an attempt to quell money-market stresses.Given the added supply, banks’ holdings of Treasuries have risen and are increasingly being financed by money-market funds investing in repo, which leaves “U.S. funding markets more fragile,” Schneider wrote. He said this adds to other reasons why the Fed needs to do more to engineer a long-term fix.Cap BustedAfter policy makers wrapped up the two-day meeting Wednesday, Fed Chairman Jerome Powell said the central bank will keep doing these repo operations if that’s what it takes to get markets back on track. He spoke hours after the effective fed funds rate busted through the central bank’s cap.Powell also said the Fed would provide a sufficient supply of bank reserves so that frequent operations like the ones they’ve done this week aren’t required.The only way “to permanently alleviate the funding stress is to rebuild the buffer of reserves in the system,“ according to Morgan Stanley strategist Matthew Hornbach.Relying on repo operations doesn’t resolve the issue of reserves declining as the Treasury rebuilds balances, Hornbach wrote in a note. Having regular operations will also increase market uncertainty as the Fed could halt purchases at any time, while the size of its buying will have to expand over time as reserves drop, he said.“It is certainly possible that we’ll need to resume the organic growth of the balance sheet sooner than we thought,” Powell said, referring to the central bank potentially buying securities again to permanently increase reserves and ensure liquidity in the banking sector.Read: Fed Should Be Worried About ‘Collateral Damage,’ BofA SaysMany strategists had predicted the Fed would take even more aggressive measures to reduce the pressures. One idea that’s gotten a fair amount of attention is something called a standing fixed-rate repo facility -- a permanent way to ease funding pressures. Many analysts even predicted a Wednesday announcement that the Fed would start expanding its balance sheet.That didn’t happen. However, with the Fed apparently ready to keep injecting liquidity whenever it’s needed, “it’s enough for now,” said Jon Hill of BMO Capital Markets.“This week’s dramatic moves in the short-term funding markets serve as a case in point for the need to carefully consider liquidity in the financial system,” Rick Rieder, global chief investment officer of fixed income at BlackRock Inc., wrote in a note.“All of this funding market gyration points to the increasingly obvious fact that the end of Fed reserve draining is insufficient to stabilize these markets,” he said.(Updates with Treasury bill sale and stress in cross-currency basis markets in fifth and sixth paragraphs)\--With assistance from Edward Bolingbroke and Stephen Spratt.To contact the reporters on this story: Liz Capo McCormick in New York at emccormick7@bloomberg.net;Alexandra Harris in New York at aharris48@bloomberg.netTo contact the editors responsible for this story: Benjamin Purvis at bpurvis@bloomberg.net, Nick Baker, Mark TannenbaumFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Japan Inflation Hits 2-Year Low as BOJ Calls for Price Review

    Japan Inflation Hits 2-Year Low as BOJ Calls for Price Review

    (Bloomberg) -- Japan’s key gauge of inflation dropped to the lowest level since 2017, the latest indication of the difficulty faced by the Bank of Japan in generating price growth as speculation grows that it may add to its stimulus as early as next month.Consumer prices excluding fresh food rose 0.5% in August from a year earlier, matching economists’ median estimate, according to the internal affairs ministry. A drop in energy prices was the biggest factor in the slowdown.Key InsightsJapan’s key inflation gauge hasn’t risen above 1% in years and is expected to remain subdued in the coming months as education costs weigh on prices.Governor Haruhiko Kuroda Thursday ordered a review to see if developments overseas have the potential to kill off momentum in Japanese prices toward the BOJ’s 2% target. Compared with a month ago, Kuroda said he’s now “more inclined” to go ahead with easing.Energy prices, which have been contributing less to price gains since October last year, fell overall for the first time since January 2017.Stripping out the effects of a drop in energy costs, August’s inflation data may leave room for the BOJ to argue that prices are actually moving in the right direction. Consumer prices excluding both fresh food and energy rose 0.6% pace in August, exceeding economists’ forecasts for a 0.5% gain and above last year’s average pace of 0.4%.“The BOJ will probably want to say price momentum is still upward,” said Hiroshi Miyazaki, a senior economist at Mitsubishi UFJ Morgan Stanley in Tokyo. “But they’ve already been pushed into a corner by price and economic data and will have to think about additional easing.”A 2 percentage point sales tax hike that comes into effect next month presents another risk the BOJ will have to manage. The last increase to the tax in 2014 triggered a contraction of more than 7% the following quarter. Consumer spending has been supporting economic growth during an export slump this year.What Bloomberg’s Economists Say“Any pickup toward the 2% target is going to take a long time. We think the Bank of Japan will need to prepare for a longer-term effort to stoke consumer prices with a more flexible operational approach to its stimulus.”\-- Yuki Masujima, economistClick here to read moreGet MoreOverall consumer prices rose 0.3% in August, matching economists’ median forecast.A 0.2% drop in hotel rates also weighed on inflation.\--With assistance from Tomoko Sato.To contact the reporter on this story: Yoshiaki Nohara in Tokyo at ynohara1@bloomberg.netTo contact the editors responsible for this story: Malcolm Scott at mscott23@bloomberg.net, Jason Clenfield, Paul JacksonFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Buy Microsoft (MSFT) Stock at Highs for More than Dividend and Buybacks

    Buy Microsoft (MSFT) Stock at Highs for More than Dividend and Buybacks

    Microsoft (MSFT) stock appears to be one of safest mega-cap tech buys out there at the moment, even at its new all-time highs. And it just raised its dividend and announced a new share buyback program.

  • Microsoft’s Lease with WeWork: A Positive Sign?
    Market Realist

    Microsoft’s Lease with WeWork: A Positive Sign?

    In the Seattle area, WeWork at Capitol Hill has a new client—Microsoft (MSFT). The total cost of MSFT's lease with WeWork is $3 million.

  • Oilprice.com

    How New Technology Is Revolutionizing Oil & Gas

    After years of lagging behind other industries, the oil and gas sector has finally embraced modern technological innovations in order to increase efficiency

  • Goldman Sachs (GS) Stock Moves -0.85%: What You Should Know

    Goldman Sachs (GS) Stock Moves -0.85%: What You Should Know

    Goldman Sachs (GS) closed at $215.23 in the latest trading session, marking a -0.85% move from the prior day.

  • Apple (AAPL) Stock Moves -0.81%: What You Should Know

    Apple (AAPL) Stock Moves -0.81%: What You Should Know

    In the latest trading session, Apple (AAPL) closed at $220.96, marking a -0.81% move from the previous day.

  • Cisco Systems (CSCO) Stock Moves -0.3%: What You Should Know

    Cisco Systems (CSCO) Stock Moves -0.3%: What You Should Know

    Cisco Systems (CSCO) closed the most recent trading day at $49.19, moving -0.3% from the previous trading session.

  • Dow Jones Reverses Early Gains, Falls 0.2% Today
    Market Realist

    Dow Jones Reverses Early Gains, Falls 0.2% Today

    The Dow Jones Industrial Average fell 53.44 points (or 0.2%) today, possibly because the market gave a thumbs up to yesterday's 0.25% rate cut by the Fed.

  • Bloomberg

    UBS Bets on China’s Nasdaq-Style Exchange to Offset a Ban in Hong Kong

    (Bloomberg) -- UBS Group AG, which runs the biggest foreign-controlled investment bank in China, is counting on the nation’s new Nasdaq-style exchange to mitigate the impact of an underwriting ban in Hong Kong, according to people familiar with the matter.Beijing-based UBS Securities Co. aims to boost fees from arranging share sales on the technology board, known as STAR Market, to 20% of its stock underwriting income from the mainland by December, said the people, asking not to be identified since the projections are confidential. The contribution may reach 50% as soon as next year, with the bank working on two first-time offerings that may raise up to 3 billion yuan ($423 million), they said.UBS, one of two foreign ventures approved to sponsor initial public offerings on Shanghai’s STAR Market, is betting that the high commissions from these issuances will partly offset a revenue decline in Hong Kong, where it has been banned from sponsoring IPOs till April. The Swiss bank is among those expanding in China after taking majority control of its local securities unit as the nation loosens restrictions on foreign participants in its $43 trillion financial industry.“The fees are lucrative,” said Liu Wencheng, co-head of investment banking at UBS Securities. “We are actively mobilizing resources to dig and cultivate high quality tech-innovation companies to tap the opportunity.”Liu wouldn’t comment directly on the bank’s plans for STAR Market.UBS is also focusing to the new bourse after mainland investment banking revenues, including fees from arranging debt sales, dropped 48% last year as the number of large deals shrank, according to the people familiar. In March, it was fined HK$375 million ($48 million) to settle cases brought by Hong Kong authorities and became the only foreign bank banned from sponsoring IPOs for 12 months.The Swiss bank underwrote IPOs totaling $317 million in Hong Kong this year, compared with $1.6 billion in 2018, according to data compiled by Bloomberg. Its tally on the mainland is about $98 million for 2019.A Hong Kong-based spokesman declined to comment on the details of UBS’s China plans.The STAR Market, launched in July, has been hailed as a testing ground for relaxed rules on listing and trading as policy makers seek to stem an exodus of new economy IPOs to Hong Kong and the U.S.For investment banks, there’s the carrot of higher fees. Underwriters typically charge issuers 1.5% to 2% fees for Hong Kong listings, compared with an average 7% on the tech board, according to the people. Also, unlike in Hong Kong, Chinese regulators have capped the number of banks involved to one if the issuer’s IPO size is less than 10 billion yuan.Sponsors on the tech board are required to co-invest in between 2% and 5% of the shares issued by their clients, an unusual arrangement that may limit foreign players’ interest in leading deals due to their limited capital base onshore.To shore up available capital, UBS is seeking special approval to use the Qualified Foreign Institutional Investors program to co-invest in tech board IPOs, the people said.To contact the reporter on this story: Cathy Chan in Hong Kong at kchan14@bloomberg.netTo contact the editors responsible for this story: Candice Zachariahs at czachariahs2@bloomberg.net, Jun LuoFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Where Does Your Fear Come From?

    Where Does Your Fear Come From?

    Neuroscientists are proving the human sense of fear is very different than animals and why it matters.

  • MSFT Continues Buyback Frenzy

    MSFT Continues Buyback Frenzy

    There is a time and place where stock buybacks are appropriate such as when the stock price is undervalued and there are no more productive uses for the money, but this can still be speculative.

  • Fed Rate Cuts, Microsoft Strength & Buy Skechers (SKX) Stock - Free Lunch

    Fed Rate Cuts, Microsoft Strength & Buy Skechers (SKX) Stock - Free Lunch

    The Fed cuts interest rates again, but what's next? Why Microsoft (MSFT) stock surged. The latest from AT&T (T) and FedEx (FDX). And why Skechers (SKX) stock is a Zacks Rank 1 (Strong Buy) right now - Free Lunch

  • Ironwood Amends Linzess Agreement with AstraZeneca in China

    Ironwood Amends Linzess Agreement with AstraZeneca in China

    Ironwood (IRWD) announces amendment in collaboration agreement with AstraZeneca, granting the latter exclusive rights to develop, manufacture and commercialize Linzess in China.

  • Bloomberg

    Apple’s Fifth Avenue Facelift Addresses Critique That It’s Hard to Shop There

    (Bloomberg) -- Apple Inc. has been renovating its iconic store on Manhattan’s Fifth Avenue for almost three years, and when it opens to the public on Friday customers will likely notice new aesthetics, including 20-foot trees, plant walls and skylights that bring daylight into the subterranean space. But the most popular change may well be two new entrances, subtly placed on the north and south side of the store across the street from the Plaza Hotel.Easing egress is a tacit nod to complaints that Apple’s stores had become hard to shop because they’re busy and difficult to navigate thanks to the competing needs of shoppers looking to hang out, get their gadgets fixed or actually buy something. Now locals and mission shoppers can come and go without having to deal with throngs of tourists flowing through the glass cube entrance that made the store a retail landmark and one of Apple’s busiest.The company more than doubled the size of the service area, what it calls the Genius Bar. That addresses another critique -- that getting help in an Apple store can take a long time. The renovation also almost doubled the size of the space, adding rooms where customers can test out products such as the HomePod smart speaker and small businesses can get advice on how best to kit out their offices.The Fifth Avenue location’s reopening was timed to coincide with the launch of several new products, including the iPhone 11 and Apple Watch Series 5 that debut on Friday.Earlier this year, veteran Apple executive Deirdre O’Brien replaced Angela Ahrendts as retail chief. Ahrendts, who previously ran Burberry, brought a luxury world perspective to Apple and was criticized for turning the stores into branding exercises rather than places to shop and get service. O’Brien, who also runs human resources, worked on the team that opened the first Apple store in 2001.“Deirdre has a deep understanding of the stores,” a former Apple executive told Bloomberg earlier this year. “She’s just never been the face of them.”\--With assistance from Mark Gurman.To contact the reporter on this story: Matt Townsend in New York at mtownsend9@bloomberg.netTo contact the editors responsible for this story: Robin Ajello at rajello@bloomberg.net, Molly SchuetzFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Top Stock Reports for Johnson & Johnson, Boeing & Broadcom

    Top Stock Reports for Johnson & Johnson, Boeing & Broadcom

    Top Stock Reports for Johnson & Johnson, Boeing & Broadcom

  • Procore Taps Goldman for IPO at $4 Billion-Plus Value

    Procore Taps Goldman for IPO at $4 Billion-Plus Value

    (Bloomberg) -- Procore Technologies Inc. is working with Goldman Sachs Group Inc. to lead a U.S. initial public offering that could value the construction-management software maker at more than $4 billion, according to people with knowledge of the matter.The company is preparing an IPO for this year or early next year, said one of the people, asking not to be identified because the information is private. The company is on track to generate more than $400 million in revenue this year, this person said.Procore’s IPO plans aren’t finalized and could change, the people said.A representative for Procore couldn’t immediately be reached for comment. A representative for Goldman Sachs declined to comment.Procore would join a flurry of enterprise software IPOs that have delivered some of the best debut performances this year.Datadog Inc. rose as much as 53% in its trading debut Thursday, after rejecting a takeover offer from Cisco Systems Inc. Ping Identity Holding Corp. gained as much as 32% in its first day of trading Thursday.Procore makes software that lets building owners, developers and contractors manage and collaborate on projects, according to its website.It has raised more than $200 million and was most recently valued at $3 billion, according to a statement in July. It reported more than $250 million in annual recurring revenue, it said in the statement.Backers include hedge fund Tiger Global Management and Iconiq Capital, which manages money for billionaires including Facebook Inc. co-founder Mark Zuckerberg.To contact the reporters on this story: Liana Baker in New York at lbaker75@bloomberg.net;Crystal Tse in New York at ctse44@bloomberg.netTo contact the editors responsible for this story: Liana Baker at lbaker75@bloomberg.net, Michael Hytha, Matthew MonksFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.