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Articles related to "markets"


Have a Student Loan From a Private Lender? Here’s How to Get Some Relief

  • Many federal student-loan borrowers got some welcome relief in March, thanks to federal legislation passed in response to the coronavirus pandemic.
  • But what about students who borrowed from private lenders?
  • For them, it’s a much muddier picture.
  • The federal economic-relief package known as the Cares Act allows many federal student-loan borrowers...

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Warren Buffett spent $6.5 billion to help Mars acquire Wrigley during the financial crisis. Here's the story of how he made the candy deal happen.

  • Warren Buffett shelled out $6.5 billion to help Mars acquire Wrigley in October 2008, cementing one of the few mega-mergers during the financial crisis and creating a global confectionery giant.
  • Wrigley accepted a $23 billion takeover offer from Mars in April 2008, paving the way for the pair to bring their brands under one roof, share talent and insights, and consolidate their sales, marketing, and distribution infrastructure.
  • Nearly five years after the merger, Mars reached out to Buffett and asked to repurchase Berkshire's Wrigley debt early.
  • The confectioner originally had the option to repurchase up to half of Berkshire's Wrigley shares during the 90 days starting October 6, 2016, but had to wait until 2021 to redeem the rest.
  • Add up the gains on the bonds and the shares with the interest payments and dividends, and Buffett made an estimated $6.5 billion from his Wrigley bet.

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2 of Europe's top central bankers dropped hints that it might be time to start removing unprecedented coronavirus stimulus packages

  • Top policymakers in Europe this week seemed to indicate it might be time to rein in the flow of money meant to protect economies from an outright collapse.
  • While assessing the path to recovery, the Bank of England's chief economist Andy Haldane said this week that the UK economy has bounced back sharply in comparison to what was originally expected.
  • Philip Lane, the chief economist at the European Central Bank, is more discreet about recovery.
  • However, both Haldane and Lane agree that it is time for the central banks to pull back and wait for further data to lead the way for the next steps.
  • Both central bankers are aiming to wait before wading through "noisy data" and hopefully extract useful signals from the post-crisis economy to make next moves.

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Holding cash is a sign of fear, and fear is the worst investment of all

  • If most Canadians expect long-term investment returns of five-per-cent-plus, and money market funds have not provided one per cent over the long term, the only reason to have long-term money in a money market fund or bank account is either fear or a true belief that you are able to add value through timing of getting in and out.
  • Balances dropped 35 per cent, or $23.5 billion moved from the safety of money market back into some form of longer-term investment.
  • I had mentioned earlier that the only reasons to move long-term investment money into an asset class that is guaranteed to underperform your long-term goals is either fear or a true belief that you are able to add value through timing of getting in and out.
  • The bottom line is that cash, money market, and GICs are not good for your long-term investment returns.

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Holding cash is a sign of fear, and fear is the worst investment of all

  • If most Canadians expect long-term investment returns of five-per-cent-plus, and money market funds have not provided one per cent over the long term, the only reason to have long-term money in a money market fund or bank account is either fear or a true belief that you are able to add value through timing of getting in and out.
  • Balances dropped 35 per cent, or $23.5 billion moved from the safety of money market back into some form of longer-term investment.
  • I had mentioned earlier that the only reasons to move long-term investment money into an asset class that is guaranteed to underperform your long-term goals is either fear or a true belief that you are able to add value through timing of getting in and out.
  • The bottom line is that cash, money market, and GICs are not good for your long-term investment returns.

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Chinese stocks hit their highest level in 5 years, while Europe looks for direction with US markets closed for July 4th

  • Global stocks painted a confused picture on Friday as the US holiday for the Fourth of July caused thin liquidity in markets, and upbeat Chinese PMI data pushed Chinese stocks to a five-year high.
  • In Asia, China's Shanghai Shenzhen CSI 300 (CSI300) closed at its highest level in five years at 4419.60 after stronger than expected data out of the country's service sector.
  • China's services PMI — a closely watched economic survey — hit a 10-year high on Friday in the latest sign that the country's economic recovery as it comes out of the worst of its coronavirus crisis is accelerating.
  • That exceeded the 3 million new jobs expected by economists surveyed by Bloomberg and represents the second straight month of job additions during the coronavirus induced recession.

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Dow Booms as Wall Street Defies Ray Dalio's Free Market Death-Knell

  • A better than expected jobs report helped send the Dow Jones pumping higher on Thursday.
  • Stock market bulls cheered the strong non-farm payrolls report, especially the sharp drop in the unemployment rate.
  • The jobs report predates a second wave of lockdowns across the United States.
  • ING economist James Knightley had warned that the June jobs report could paint an inaccurate picture of the U.S. economy.
  • Another big upside surprise for payrolls of 4.8mn while the unemployment rate plunges to 11.1%.
  • Moreover, with states dialling back on re-openings the July jobs report could be far more sobering.
  • With states like Arizona, Florida, and Texas all finally bearing the brunt of the pandemic, it’s surprising to see the Dow so buoyant.
  • Reversing the reopenings didn’t spook Apple bulls, as the tech giant continued its steady grind towards a $2 trillion market cap.

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Lemonade, a tech-driven insurance company, soars 132% in trading debut (LMND)

  • Lemonade is a tech-driven insurance company that is focused on digitizing the process of consumers obtaining different types of insurance.
  • The company is backed by Softbank and originally priced its initial public offering at a trading range of $23 to $26 in late June.
  • Lemonade raised its IPO price and went public at $29 per share, which was above the expected $26 to $28 range from earlier Thursday morning, signaling investors are hungry for technology companies.
  • The IPO raised $319 million in funds for the tech company, and valued it at $1.6 billion.
  • It was valued at $2.1 billion in its 2019 funding round, representing a 23% decline.
  • At its peak on Thursday, Lemonade stock traded up as much as 132% to $67.46, representing a market valuation of $3.7 billion, well ahead of its 2019 funding round.

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How Wirecard Went From Tech Star to Bankrupt

  • Markus Braun built Wirecard AG from an obscure firm based in a small town outside of Munich into a global electronic-payments giant.
  • From its perch at the crossroads of online commerce, Wirecard extracted fees for processing credit-card transactions on behalf of businesses.
  • It pushed into emerging markets, bought up smaller firms and struck partnerships to recruit more customers.
  • In its financial statements, sales and profits ticked steadily upward.

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High-flying IPOs for Lemonade and Accolade may encourage other unicorns to go public

  • Or more precisely: it’s the golden moment to go public for unprofitable unicorns seeking liquidity but worried about defending their private-market valuations.
  • Perhaps not — we were wrong before about the IPO market in 2020, so let’s not get too hasty to make more predictions — but it is clear that Q4 2019 wasn’t the only time when unicorns might have been able to attract the prices they wanted.
  • This morning let’s briefly go over the final pricing for Lemonade and Accolade, and give them new revenue multiples ahead of their first days as trading entities.
  • But without cliché, we can state that IPOs are performing very well in recent weeks, with IPO Boutique reporting this morning that 17 of the last 27 IPOs have priced above the range that they first set.

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