SOS Announces Development of Cutting-edge Series of Security Systems Based on Blockchain and AI Technology Competing the Initial Phase of its Blockchain Strategy – Yahoo Finance
QINGDAO, China, Jan. 29, 2021 /PRNewswire/ — SOS Limited (NYSE: SOS) (the "Company" or "SOS") announced today that it has completed the initial steps of the execution of its blockchain strategy, and successfully developed cutting-edge firewall system, personal biological information storage system, and antivirus system all of which are based on blockchain and AI. Copyright of these software systems have been registered with the PRC Copyright Protection Center.
In addition, SOS also owns close to 100 software copyrights and 4 certification, all of which are related to cloud computing for rescue and insurance marketing, and blockchain-based Infrastructure. These intellectual property assets demonstrate a solid and complete ecosystem for marketing solution for the rescue service and insurance industry based on blockchain, big data, AI, 5G and satellite network in compliance with the industry, national and international standards, such as ISO, etc.
SOS recently established a subsidiary named "Qingdao SOS Digital Technologies Inc." to be focusing on the research of cryptocurrency and blockchain-based insurance, blockchainized security management, DeFi, etc, Dr. Eric (Huazhong) Yan is appointed as the President of this newly created subsidiary. Management expects to announce more innovative solutions and products related to the blockchainized security framework in the near future.
SOS Chairman Yandai Wang commented, "R&D is our lifeblood and our growth engine. We anticipate investing 15% of our revenue in R&D and the annual growth of R&D budget to be over 10% in each of the next 5 year ."
About SOS Limited
SOS Limited, through its operating subsidiary, SOS Information Technology Co., Ltd. ("SOS") is a high-technology company providing a wide range of services to its corporate and individual members, including marketing data, technology and solutions for emergency rescue services. SOS transforms digital technology into data-driven operations through the research and development of big data, cloud computing, Internet of Things, blockchain and artificial intelligence.
We have created a SOS cloud emergency rescue service software as a service (SaaS) platform with three major product categories: basic cloud, cooperative cloud, and information. This system provides innovative marketing solutions to clients such as insurance companies, financial institutions, medical institutions, healthcare providers, auto manufacturers, security providers, senior living assistance providers, and other service providers in the emergency rescue services industry.
SOS has obtained a national high-tech enterprise certification and the title of "big data star enterprise," awarded by Gui'an New District Government. Staying on the forefront of digital technology innovation, the Company has registered 99 software copyrights and 2 patents. For more information, please visit: http://www.sosyun.com/
Certain statements made herein are "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as "anticipate," "believe," "expect," "estimate," "plan," "outlook," and "project" and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. Such forward-looking statements include timing of the proposed transaction; the business plans, objectives, expectations and intentions of the parties;, SOS's estimated and future results of operations, business strategies, competitive position, industry environment and potential growth opportunities market acceptance of our products; the ultimate impact of the current Coronavirus pandemic, or any other health epidemic, on our business, our research programs, healthcare systems or the global economy as a whole; our intellectual property; our reliance on third party organizations; our anticipated financial and operating results, including anticipated sources of revenues; our assumptions regarding the size of the available market, benefits of our product offering, product pricing, timing of product launches; management's expectation with respect to future acquisitions; statements regarding our goals, intentions, plans and expectations, including the introduction of new products and markets; and our cash needs and financing plans and etc. These forward-looking statements reflect the current analysis of existing information and are subject to various risks and uncertainties. As a result, caution must be exercised in relying on forward-looking statements. SOS may not realize its expectations, and its beliefs may not prove correct. Due to known and unknown risks, our actual results may differ materially from our expectations or projections. All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.
Additional information concerning these and other factors that may impact our expectations and projections can be found in our periodic filings with the SEC, including our Annual Report on Form 20-F for the fiscal year ended December 31, 2019. SOS's SEC filings are available publicly on the SEC's website at www.sec.gov. SOS disclaims any obligation to update the forward-looking statements, whether as a result of new information, future events or otherwise.
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Hear from the CEO of BLADE Urban Air Mobility, Inc., the CFO of Volocopter GmbH, along with a preeminent M&A attorney and a former certification director from the European Aviation Safety Agency who joined IPO Edge for a special event on Tuesday, March 23 at 12:00 EST. Our speakers discussed the most important technologies in […]
(Bloomberg) — China’s local governments had 14.8 trillion yuan ($2.3 trillion) of hidden debt last year, and the figure could climb even further this year, according to a government-linked think tank.Local governments were under pressure to increase infrastructure investments and shore up growth through the pandemic, leading to a 6% rise in off-budget borrowing from a recent low of 13.9 billion yuan in the third quarter of 2019, according to Liu Lei, a senior researcher at the National Institution for Finance and Development.The hidden debt is comprised of funds raised by government-related entities for infrastructure and other public projects, and carry an implicit official guarantee of repayment. Bonds sold by local government financing vehicles, or LGFVs, are one such example of how provincial authorities raise money to increase spending without including it on their official balance sheets.China has vowed to stabilize its macro leverage ratio and lower the government debt ratio this year to rein in risks. This could be hard to achieve as on-budget spending is not sufficient to cover the investment needed to drive the economy’s targeted growth by 2035, said Liu, whose organization is under the influential state-run Chinese Academy of Social Sciences and advises the government.“Local governments will find ways to increase hidden debt because they are under pressure to expand investment,” said Liu in an interview. “In the longer term, the economy still faces lots of headwinds including an uncertain external environment and an aging population.”China does not have an official account of local governments’ hidden debt, as it’s technically against the law. Estimates by different institutions could vary significantly.Liu’s calculation includes bonds issued by LGFVs and borrowing by government-linked trust funds, insurers and other investment firms. It does not take into account bank loans to LGFVs, which may be used on commercial projects instead of public welfare projects.The hidden debt could have led to over 700 billion yuan a year in extra interest payments, as such borrowing is more costly to service than government bonds, he said. It also creates risks for the stability of China’s financial system, as the debt has been bought by all kinds of financial institutions, including banks, brokerages and trust funds, Liu added.The rise last year came after debt declined from a peak of 16.6 trillion yuan in 2016, as authorities transformed some of the borrowing into government bonds and moved them onto official balance sheets.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
Litecoin is currently trading just below the psychological level of resistance at $200 after bouncing from overnight lows of $190.
Traders closely monitored remarks from Federal Reserve Chair Jerome Powell and Treasury Secretary Janet Yellen
(Bloomberg) — New Zealand’s government took aim at property speculators with a suite of new measures to tackle runaway house prices and prevent the formation of a “dangerous” bubble.The government will remove tax incentives for investors to make speculation less lucrative and unlock more land to increase housing supply, Prime Minister Jacinda Ardern said Tuesday in Wellington. The moves come as surging house prices keep first-time buyers and people on lower incomes out of the market, raising concerns about growing societal inequality.“The last thing home owners need right now is a dangerous housing bubble, but a number of indicators point towards that risk,” Ardern told a news conference. “Property investors are now the biggest share of buyers, with the highest amount of purchases on record. Last year, 15,000 people bought homes who already owned five or more.”New Zealand’s success in battling Covid-19 has seen its economy recover sooner than many others, putting it at the forefront of a global property boom as ultra-loose monetary policies encourage investment in higher-yielding assets. House prices surged 21.5% in the year through February and investors accounted for more than 40% of purchases that month, a record high.To dissuade speculation, the government will phase out the ability of investors to claim mortgage interest as a tax-deductible expense. It will extend of the period in which profits on the sale of investment property are taxed to 10 years from five.‘Chilling Effect’The changes “will significantly reduce the financial incentives to invest in housing” and have “a chilling effect on investor demand,” said Satish Ranchhod, senior economist at Westpac Banking Corp. in Auckland. “Today’s announcements indicate significant downside risk for house prices and economic activity more generally.”The New Zealand dollar fell on the news and bought 71.20 U.S. cents at 1.26 p.m. in Wellington, down from 71.70 cents beforehand. Swap rates and bond yields also declined as traders speculated the central bank will be able to keep interest rates at a record low for longer.The package is the latest salvo in Ardern’s assault on the booming property market, which is undermining her efforts to reduce inequality. Prices are soaring at double-digit rates around the country, taking the national median to NZ$780,000 ($556,000). In Auckland, the median price has reached NZ$1.1 million, making it the fourth least affordable city in the world, according to Demographia. Last month, Finance Minister Grant Robertson announced changes that he said will require the Reserve Bank to pay more attention to the property market when setting monetary and financial policy. He also asked the RBNZ to consider restrictions on interest-only mortgages and the introduction of debt-to-income ratios for investors. The bank is due to report back in May.Robertson said today that New Zealand’s housing market has become the least affordable in the OECD and it was “essential the government takes steps to curb rampant speculation.”Bright LineHe said extending to 10 years the so-called “bright-line” test — effectively a capital gains tax on investment property sales — and removing interest deductibility for investors “will dampen speculative demand and tilt the balance towards first home buyers.”The new bright-line test will apply to properties bought from March 27. The time horizon for new builds will remain at five years to encourage supply.From Oct. 1, investors won’t be able to deduct mortgage interest as an expense on properties acquired from March 27. For existing property owners, mortgage interest deductibility will be phased out over the coming four years so that it can’t be claimed at all by the 2025-26 tax year. New builds are expected to be exempted from this change.The government is trying to curb housing demand while also increasing supply, which has been constrained by a raft of factors including planning rules and high construction costs. It said today it will establish a NZ$3.8 billion fund to unlock more land for housing development, and also make first home grants available to more people.“The housing crisis is a problem decades in the making that will take time to turn around, but these measures will make a difference,” Ardern said. “There is no silver bullet, but combined all of these measures will start to make a difference.”For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
Pony Ma, the low-profile founder of Tencent Holdings, China's biggest social media and video games company, met with antitrust watchdog officials this month to discuss compliance at his group, three people with direct knowledge of the matter told Reuters. The meeting is the most concrete indication yet that China's unprecedented antitrust crackdown, which started late last year with billionaire Jack Ma's Alibaba business empire, could soon target other internet behemoths. Beijing has vowed to strengthen oversight of its big tech firms, which rank among the world's largest and most valuable, citing concerns that they have built market power that stifles competition, misused consumer data and violated consumer rights.
(Bloomberg) — U.S. equities fell, with companies that would benefit from an end to lockdowns faring the worst, amid concern that rising virus cases and new restrictions in Germany signal the global reopening will be delayed.The S&P 500 Index slumped and the small-cap Russell 2000 dropped 3.6% as beneficiaries of the reopening trade including Carnival Corp. and TripAdvisor Inc. tumbled. An index of airline shares fell the most since October.The dollar strengthened, while the 10-year U.S. Treasury yield slid for a second day after Federal Reserve Chairman Jerome Powell played down the risk that economic growth would spur unwanted inflation. Oil dropped below $60 a barrel on concern the market is oversupplied.While setbacks in the coronavirus fight are putting investors on the back foot, the stabilization in bond yields is providing some relief against fears that heavy U.S. spending could reignite inflation and force tighter central-bank policy. Investors also took stock of equity gains on the one-year anniversary of the S&P 500’s bear-market bottom. The gauge has surged about 75% since then.“When you consider how far we’ve come it is truly staggering,” said Chris Larkin, managing director of trading and investing product at E*Trade Financial. “The market today has some jitters as it considers what a return to normal means for easy money policies, fiscal support, and interest rates, but for any investor thinking we’re poised for a drop, it’s important to remember that the market is going through historically healthy growing pains and there is still a lot more recovery ahead of us.”Elsewhere, European shares slumped after Chancellor Angela Merkel put Germany into lockdown over Easter to try to defuse another wave of coronavirus infections. Asian shares also declined.These are some key events to watch this week:The U.S. Treasury holds auctions of five- and seven-year debt.EIA crude oil inventory report on Wednesday.U.S. personal income and spending data on Friday.These are some of the main moves in financial markets:StocksThe S&P 500 Index fell 0.8% as of 4 p.m. New York time.The Stoxx Europe 600 Index decreased 0.2%.The MSCI Asia Pacific Index decreased 0.9%.The MSCI Emerging Market Index fell 1.1%.CurrenciesThe Bloomberg Dollar Spot Index gained 0.6%.The euro fell 0.7% to $1.1849.The British pound weakened 0.8% to $1.3752.The Japanese yen strengthened 0.2% to 108.62 per dollar.BondsThe yield on 10-year Treasuries fell eight basis points to 1.62%.Germany’s 10-year yield dropped three basis points to -0.34%.Britain’s 10-year yield declined five basis points to 0.76%.CommoditiesWest Texas Intermediate crude declined 6.6% to $57.48 a barrel.Gold fell 0.6% to $1,727.75 an ounce.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
India plans to offer fresh incentives to companies making electric vehicles (EVs) as part of a broad auto sector scheme it expects to attract $14 billion of investment over five years, according to industry sources and a document seen by Reuters. The country's efforts to promote EVs to reduce its oil dependence and cut pollution have been stymied so far by a lack of investment and weak demand, as well as the patchwork nature of existing incentives that vary from state to state. The new automotive sector scheme, however, has been under discussion since mid-2020 to provide a more focused approach, industry sources close to the matter told Reuters.
After a breakout over a 244.18 buy point, Boeing has pulled back quietly into buy range.
(Bloomberg) — U.S. Supreme Court justices questioned a California regulation that gives union organizers access to agricultural company land for part of the year to talk to workers, hearing arguments in a case that could bolster constitutional property rights.In an hour-long telephone session, some of the court’s conservatives expressed skepticism that California could require union access on as many as 120 days a year. Justice Brett Kavanaugh indicated he thought the case was controlled by a 1956 Supreme Court decision permitting access at non-agricultural workplaces only when organizers lack other means of communication.But other justices indicated they were wary of imposing the type of categorical rule being sought by two growers challenging the decades-old California regulation. The companies say the Constitution’s so-called takings clause requires compensation when a regulation gives a third party the right to use private property.Both sides in the case “have line-drawing problems,” Justice Amy Coney Barrett told the lawyer for the growers. “What if California had a regulation that permitted union organizers to go onto the property of your clients, one hour a day, one day a year?”Conservative legal groups and the U.S. Chamber of Commerce are opposing the access regulation, and trying to leverage a court that in recent years has bolstered the rights of landowners and curbed the clout of unions. It is the first case on those topics for Barrett, whose confirmation in October gave the court an even stronger conservative majority.The case was filed by two businesses that have tangled with union organizers: Cedar Point Nursery, which grows strawberry plants in the northern California town of Dorris, and Fowler Packing Co., a Fresno grower of grapes and other fruits.They say the regulation strips agricultural companies of their right to control who comes onto their property and forces them to allow disruptive protests. Their lawyer, Joshua Thompson, told Barrett that even her hypothetical one-hour requirement should be considered a constitutional violation.Inspection LawsJustice Stephen Breyer said Thompson’s position raised questions about dozens of government inspection laws.“There are all those long lists of statutes,” he said. “Are they all unconstitutional?”The regulation implements California’s Agriculture Labor Relations Act, a 1975 law that gave farm workers in that state the type of collective bargaining rights other laborers already had under federal law.California Solicitor General Michael Mongan said the high court has been loath to categorically declare particular types of regulations to be takings that require compensation. He urged the court to use the case-by-case approach it has traditionally applied to restrictions on how people can use their own property.Mongan drew push-back from across the court’s ideological spectrum. Justice Sonia Sotomayor said Mongan’s proposed test “fails to capture the significant interest in the right to exclude at stake in physical invasion cases.”And Barrett asked whether a categorical rule would be calamitous as opponents say it would be.“Why would it be that big of a deal for California to say to the unions, ‘Listen to compensate for the taking, if you want access, you pay 50 bucks’?” she asked. “Let’s say that the court says that that’s a fair amount for compensation. What’s wrong with that?”The case, which the court will decide by June, is Cedar Point v. Hassid, 20-107.(Updates with excerpts from arguments starting in fourth paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
Gold prices slipped on Tuesday as the U.S. dollar strengthened along with Treasury yields, while markets awaited comments on economic health from Federal Reserve Chair Jerome Powell and Treasury Secretary Janet Yellen later in the day. Safe-haven gold is highly sensitive to rising bond yields as they raise the opportunity cost of holding the bullion.
(Bloomberg) — Spain’s central bank cut its forecast for economic growth this year, saying a weaker-than-expected first quarter and a slow roll out of the European Union’s recovery funds will drag on the pace of recovery.A higher price of oil, a slightly stronger euro and a rise in long-term interest rates also contributed to the Bank of Spain’s downgrade of its baseline scenario for Spanish gross domestic product in 2021 to a 6% expansion. The previous prediction was 6.8%.The Bank of Spain’s message reflects a mounting sense of alarm at the European Central Bank that a slow roll out of the 750 billion-euro ($890 billion) recovery fund will hinder a rebound from the pandemic, which has already been stunted by a chaotic vaccination campaign.The widening gulf between the EU and U.S. economies has forced the ECB to accelerate its bond-buying program to prevent borrowing costs from rising too soon.The downgrade is due to “this weaker start to the year than what we had expected three months ago and also because we’re seeing that the Next Generation EU funds might not be deployed as quickly as we had forecast in December,” Bank of Spain Chief Economist Oscar Arce said on Tuesday.Read more: EU’s Plodding Stirs ECB Concerns as U.S. Delivers StimulusThe Spanish economy probably contracted in the first quarter by 0.4% after authorities put in place tighter restrictions to stem the spread of Covid-19, the central bank said.Growth appears to have accelerated somewhat in March, though, as officials relaxed restrictions and the vaccination campaign got underway.Momentum is due to pick up in the second half of the year as more people are vaccinated and EU leaders agree on the final details of the recovery fund, which will allow national governments to begin to invest the funds.Spain and Italy are set to receive the greatest portion of the funds.That faster momentum is expected to carry over into 2022, with the central bank boosting its growth forecast for next year to 5.3% versus a previous estimate of 4.2%.Much of that boost is because more EU funds will be spent in 2022 rather than in 2021, as initially expected.The delay won’t necessarily have an outsize negative impact in the medium-term, if officials use the extra time to design more efficient and effective investment projects, Arce said. The central bank’s baseline scenario assumes that Spaniards will spend much of what they have saved. Officials don’t expect tourism, essential to the country’s economy, to normalize until 2022.(Adds detail in second-to-last paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
(Bloomberg) — QuantumScape Corp., an electric-vehicle battery startup that went public via a reverse merger, said it’s seeking to raise as much as $859 million to fund expansion of a pilot production line.Shares of the San Jose, California-based company have rallied 18% since Feb. 15, the day before it announced it cleared a key hurdle in the development of its solid-state battery technology. At the time, it also said it would build a 200,000 square-foot pilot line in California to make prototype cells for partner Volkswagen AG and other potential auto customers.QuantumScape is now seeking to more than double the capacity of that pilot line, dubbed QS-0, it said in a regulatory filing Monday. It wants to provide more prototype cells to VW and other automakers, plus prospective customers in other industries, according to the filing.The company will use proceeds from selling shares to build the pilot line and secure a lease for it in the second half of 2021, with the aim of starting production of prototype cells in 2023.QuantumScape shares fell as much as 8.6% to $58.79 in pre-market trading in New York on Tuesday, a day after the stock sale was disclosed. The offering is expected to be priced after the market closes Wednesday, according to a person familiar with the matter.QuantumScape shares spiked late last year after it merged with the blank-check company Kensington Capital Acquisition Corp. and have swung wildly since then.It’s among a group of companies developing solid-state batteries, an innovation that could dramatically speed up adoption of electric vehicles. The batteries are seen as a safer, cheaper alternative to the lithium-ion batteries currently used in the industry.Proceeds will also be used to fund QuantumScape’s portion of a battery manufacturing facility it plans to build as part of a 50-50 joint venture with VW. That facility, dubbed QS-1, will produce 21 gigawatt hours of batteries.VW has committed to using QuantumScape’s battery technology in its EVs through a joint venture if enough batteries can be produced at competitive prices.The automaker is obligated to invest another $100 million in QuantumScape if its batteries meet certain technical specifications by March 31, according to the filing. QuantumScape will complete the required tests shortly before that date, and if the milestone isn’t met and VW doesn’t waive the requirement, the battery maker warned it won’t receive the financing.(Updates with pre-market trading in the fifth paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
Stock futures opened higher Tuesday evening to recover some losses from earlier in the day.
The downside momentum is controlling the price action. Recapturing the old bottom at .7096 will be the first sign of a shift in momentum back to up.
(Bloomberg) — Overseas investors have been pulling out of Malaysian equities for 20 straight months. March could mark the turn of the tide.Foreigners have poured a net $97 million into local stocks this month through March 22, while withdrawing a combined $1 billion from four other Southeast Asian markets tracked by Bloomberg.The inflows come as valuation of Malaysia’s main equity gauge is now the cheapest in the region while the dividend yield of 3% is the highest among major Asia Pacific indexes after Singapore.Foreigners becoming net buyers would mark a rare event for a market that saw global funds pull a record $5.7 billion last year. That’s as political upheaval combined with the Covid outbreak to sour sentiment even as local investors turned Malaysian glove makers into one of Asia’s hottest pandemic trades.“There’s a thematic play for Malaysia in a sense that it has underperformed,” said Geoffrey Ng, director at Fortress Capital Asset Management Sdn. “Part of why there was so much foreign selling earlier was because of political uncertainty, which is fading now.”Malaysia in January declared a state of emergency to tackle surging coronavirus infections. That allowed Prime Minister Muhyiddin Yassin to suspend parliament until the emergency ends in August, amid calls for immediate snap polls from the ruling coalition’s largest party.Muhyiddin has said he will hold an election as soon as the pandemic is brought under control. He came to power in March last year after securing a razor-thin majority following the abrupt resignation of his predecessor Mahathir Mohamad.Monthly WithdrawalsForeign shareholdings in Malaysian companies stood at 20.4% at the end of February, near the lowest in more than a decade, according to CGS CIMB Research. Ending March with a positive number would snap the longest run of foreign monthly withdrawals since at least 2009.The Bursa Malaysia KLCI Index, down more than 5% from a December peak, is up 1.1% in March, poised for its best month this year. Beaten-down bluechips like casino operator Genting Bhd., banks and utilities have led the gains as new Covid infections slow and vaccines are rolled out.Even so, Credit Suisse Group AG cut Malaysia to underweight from market weight. The bank downgraded developing stocks due to a stronger U.S. dollar, slow rollout of vaccines in the region and political risks in some commodity-exporting markets.“Its just one month of data so we have to see if this trend continues,” said Ng.(Updates to add background on politics from sixth paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
(Bloomberg) — Government and corporate bonds around the world have tumbled in their worst start to a year this century, as markets spooked by the prospect of resurgent inflation turn increasingly volatile.The notes have lost about 3.7% so far in 2021, even after dip-buying in recent days, according a Bloomberg Barclays index of investment-grade securities across currencies going back to 1999. That’s worse than for similar periods in previous years.An unprecedented confluence of events has triggered concerns that faster inflation will increasingly eat into fixed-income returns. The $1.9 trillion stimulus package passed earlier this month in the U.S. came as many central banks have also vowed to keep rates near historic lows. At the same time, progress with vaccines has helped authorities lift lockdowns, spurring signs of a global economic rebound.While Treasury yields have declined this week after Federal Reserve Chairman Jerome Powell played down the risk of unwanted inflation Tuesday, broader signals in recent weeks suggest market concerns may linger. A proxy for inflation over the coming decade rose to about 2.3% last week, the highest since 2013.Investors longing for a sign it’s safe to pile back into their favorite risky bets for the year are becoming fixated with measures of bond volatility. As they wait for the extreme moves to subside, they’re cutting duration in fixed-income portfolios.The ICE BofA MOVE index, a gauge which uses one-month implied price swings across different bond maturities in the U.S. Treasury market, has averaged the highest this month since April last year.“In order to calm down markets and improve sentiment, we need to find a plateau where rates could stay for several days,” said Sergey Dergachev, senior portfolio manager for emerging-market debt at German money manager Union Investment.Long-dated Treasuries led yields higher in recent weeks, with the pain spreading also to the belly of the curve. U.S. government debt of 25 years or longer have lost about 13% so far in 2021. Some investors such as Ray Dalio and Bill Gross are predicting more losses in Treasuries.As a result, strategists are predicting large quarter-end rebalancing flows out of equities and into Treasuries. Bank of America strategists estimated that $88.5 billion could shift into U.S. fixed income, including $41 billion into Treasuries.Read more: Dalio wants you to swap Treasuries for Chinese debtThe selloff put an end to the bull market in long-term U.S. Treasuries that began in the early 1980s. The Bloomberg Barclays U.S. Long Treasury Total Return Index, which tracks bonds maturing in 10 years or longer, has plunged about 20% since its peak in March 2020, putting the market in bear territory.The jump in borrowing costs is spurring corporates globally into action. They’ve sold more than $740 billion of notes across currencies so far this year, the most ever for such a period. Shorter debt is hot, with over half of last week’s U.S. high-grade deals featuring two- or three-year tenors, offering investors a greater degree of protection from rising bond yields.High-yield corporate bonds have also done far better than U.S. government debt or investment-grade notes from companies because of their larger spreads, which give them a buffer against rising yields. Asia high-yield dollar notes, which have even bigger yield premiums, have bucked the broader trend to make money.Some non-U.S. dollar fixed income, such as European high-yield bonds, Chinese yuan debt, and a Japanese currency-based basket of investment-grade securities, are also still in the black. That compares with a loss of about 5% so far this year for U.S. investment-grade credit.(Updates charts)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
Goldman Sachs offers up some compelling reasons why the stock market is not in a bubble right now.
(Bloomberg) — BorgWarner Inc.’s attempt to garner more respect from investors for its effort to shift to electrification fell flat, triggering an 8% slide in the auto-parts maker’s shares on the day it presented its strategic vision.The Detroit-area based company gave a three-hour presentation Tuesday, making a case that it’s just as prepared for the move to electric cars as the vehicle assemblers it has longed supplied, including Ford Motor Co., General Motors Co. and Volkswagen AG.Shares of those automakers each have soared more than 30% so far this year, based in part on aggressive plans to sell more EVs. BorgWarner is up less than half that amount — and fell 7.9% Tuesday to $44.30, the steepest drop since June.“People have really asked the question: Is BorgWarner really positioned to succeed as the world shifts more dramatically toward electrification?” Chief Financial Officer Kevin Nowlan said in an interview. “That’s exactly what today’s strategy is intended to address.”The leading manufacturer of turbochargers for gasoline-powered vehicles has had trouble convincing investors it can make the leap to the era of electrics. Ford and VW together account for about 24% of its sales, according to supply-chain data compiled by Bloomberg.The company said it aims to boost revenue generated from EVs to about 45% of the total by 2030, up from the current 3%. It also will spend around 30% of its R&D total budget on electrification-related technology.But those goals are less ambitious than Ford’s decision to double spending on EVs through 2025, GM’s pledge to go all-electric by 2035 and VW’s plan to build six car-battery factories.As part of its repositioning, BorgWarner intends to sell off parts of its internal combustion engine business that generate between $3 billion and $4 billion in revenue, Nolan said. It plans to make up for that — at least in part — by acquiring electrification-related business that can generate $2 billion to $3 billion in revenue.The CFO shrugged off the share price drop, saying the company’s margins and financial performance have been strong.“We don’t get hung up on the one day movement,” he said. “It is really about driving long-term value.”For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
(Bloomberg) — If there’s one core view at the heart of the investment strategy at Australia’s biggest pension fund, it’s that yields still have a long way to rise.The exodus from Treasuries will continue until 10-year yields top out at 3% or so, which would be high enough to imperil economic growth and force the Federal Reserve to respond, according to Carl Astorri, head of asset allocation at AustralianSuper Pty., which manages A$210 billion ($161 billion). He has been further trimming government bonds and shifting equities toward so-called value stocks.“Bond yields rise until they break something, until they cause pain for borrowers,” he said. “At the moment, we’re assuming that we’re entering, at the very least, a standard expansion phase of the cycle and quite possibly a kind of overheat or a boom.”Yields on 10-year Treasuries surged more than 100 basis points in six months to hit 1.75% in the current rout, a level last seen more than a year ago, on fears a stronger recovery could fuel inflation and a pullback in central bank support. With governments around the globe still adding to trillions of dollars of stimulus to ride out the pandemic, one of the biggest questions for markets is when do yields climb to levels too tempting for investors to resist switching back toward bonds.Astorri, who worked at the Bank of England early in his career before joining the financial-services industry, reckons another 100 basis points or so may be needed before that tipping point is reached.He shifted AustralianSuper’s bond portfolio to an underweight position in late 2020, almost a year after he had boosted his holdings in a successful bet that the Reserve Bank of Australia would cut rates and buy bonds. The fund sold more bonds earlier this year, and they won’t look attractive again until 10-year Treasuries are above 2.5%, he said.Until then, the fund’s A$120 billion strong equities portfolio has been shifted toward value plays such as banks which are seen benefiting from reopening economies and booming housing markets. Astorri is riding the global rotation out of frothy tech names like Netflix Inc. that had surged as economies shuttered to control the pandemic.“It’s not the sweet spot of the cycle for equities, that’s earlier on and we’ve gone through that,” he said. “They can make further but volatile progress through earnings delivery.”For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.