Nadaq futures fell nearly 2% on Friday after rebounding more than 6% in the past three sessions, as a spike in U.S. bond yields reignited inflation worries and sent investors scurrying to the perceived safety of the dollar. Wall Street’s main indexes have come under pressure in the past few weeks as a consistent rise in borrowing costs have raised fears of a sudden tapering of monetary stimulus. The yield on the benchmark 10-year notes rose back above 1.60% on Friday to approach the one-year highs touched last week. Improving economic data and more fiscal stimulus have also fueled concerns of higher inflation despite assurances from the Federal Reserve to maintain an accommodative policy. All eyes will now be on the Fed’s policy meeting next week for further cues on inflation. At 5:40 a.m. ET, Nasdaq 100 e-minis were down 230 points, or 1.76%, S&P 500 e-minis were down 22.5 points, or 0.57%, and Dow e-minis were down 18 points, or 0.06%. The Nasdaq has been particularly hit by the sell-off in recent weeks and entered correction territory on Monday as investors swapped richly valued technology stocks with those of energy, mining and industrials companies that are poised to benefit more from an economic recovery. The yield-sensitive group of Facebook Inc Apple Inc, Amazon.com Inc, Netflix Inc, Google-parent Alphabet Inc, Telsa Inc and Microsoft Corp were down between 1.7% and 4.4% in premarket trading. Big U.S. banks including JPMorgan Chase & Co, Bank of America Corp and Citigroup Inc were among the few gainers in early deals. Nick Note: The bond market is not the stock market. And millennials are not bond traders..
Mall operator Hammerson’s loss soars as virus hit property values
Nick Bit: Simon has bought over 50 loser retailers….. All that is going for them is they can borrow themselves broke. Many chains they have bought were broke before COVID. And to make matters worse we have learned how to shop online……..
The American Dream mall is keeping up its reputation as an American nightmare. The owner of the 3.1 million-square-foot East Rutherford, N.J., mega-mall, Triple Five Group, could lose nearly half of its stakes in its Mall of America in Minnesota and West Edmonton Mall in Canada to its lenders because of American Dream’s struggles, Axios first reported. A spokesperson for Triple Five did not immediately respond to a request for comment. Triple Five could lose a 49 percent interest in the malls, because it used them as collateral for a $1.2 billion construction loan to build the long-delayed American Dream mall, which has faced cash problems due to the coronavirus pandemic. The $5 billion New Jersey mall — which includes retail, an indoor amusement park and water park, and a 16-story indoor ski slope — finally opened in 2019 after nearly two decades of construction and three developers, but COVID-19 threw yet another wrench into the project. Triple Five, owned by the Ghermezian family, was forced to close on March 16 as stay-at-home measures were put in place around New Jersey. It finally reopened in October but has faced cash flow problems, forcing it to miss payments. Kurt Hagen, an executive at Triple Five, told Bloomington, Minn., officials that Triple Five was “likely” to lose the stakes in the Mall of America and West Edmonton Mall, Bloomberg reported. “It would have been much better if American Dream would have burned down or a hurricane had hit it, financially, because we would have been covered by insurance,” Hagen said, according to Bloomberg. “This pandemic that we didn’t see coming has not been covered and was the worst scenario imaginable
Reuters) – Mall operator Hammerson posted a 1.7 billion pound ($2.37 billion) loss for 2020 and gave a formal warning about threats to its ability to continue as a going concern, as the value of properties sank in the COVID-19 crisis and it launched asset sales to bolster its finances. Shares in the company gained in initial deals after it said it had made 73 million pounds from the sale of the Brent South Shopping Park and its stakes in two French joint ventures. It also reported an almost halving of net rental revenue and said it had so far collected 76% of last year’s rents as the crisis battered its retail tenants. Hammerson said it would meet its liabilities at least for the next 12 months, but flagged that the impact of the virus on the retail sector and broader economy could cast significant doubt on its ability to carry on as a business. “More adverse outcomes relative to those assumed in the scenario modelling, could result in breaches in the Group’s unsecured gearing and interest cover ratio covenants,” the company said. British shopping centres are set to be fully operational only by mid May as per the phased exit plan from the latest round of restrictions which have kept shoppers at home and led to widespread rent deferrals by retailers. Hammerson’s total portfolio, including premium outlets, fell 24% in value to 6.34 billion pounds during 2020. “The portfolio is still in lockdown, tenant activity is on pause and we need to wait for the reopening to see how the rent roll performs through summer and into year end,” JP Morgan analysts wrote in a note. “2021 (is) all about disposals: Disposals will be necessary to lower its LTV of 46%.” The FTSE 250-listed company, which runs shopping malls such as the Bullring in Birmingham and Italie Deux in Paris, said the results represented its largest ever fall in net rental income and UK asset values. Adjusted profit sank to 36.5 million pounds for the full-year ended Dec. 31, compared with 214 million pounds a year earlier.
First round of $1,400 COVID-19 relief checks to start hitting bank accounts this weekend
https://youtu.be/s5sZowlhU0I
WASHINGTON – The latest batch of COVID-19 relief checks will start arriving in a matter of days. The first checks of up to $1,400 will land in bank accounts this weekend via direct deposit, White House press secretary Jen Psaki announced Thursday. “This, of course, is just the first wave,” Psaki said. Payments to eligible Americans will continue over the next several weeks, she said. The checks are part of President Joe Biden’s $1.9 trillion American Rescue Plan, the first major initiative of his presidency. Biden signed the bill into law on Thursday. Under the new law, individuals with an adjusted gross income of $80,000 or less ($160,000 for joint filers) are eligible for a one-time payment of up to $1,400, plus an additional $1,400 for each dependent child. The payments start to phase out for individuals earning $75,000 and will cut off completely for anyone who makes more than $80,000. For couples filing jointly, the phaseout starts for those making $150,000 and cuts off at $160,000. For those filing as head of household, the phaseout begins at $112,500 and cuts off at $120,000. Most Americans will receive the payments via direct deposit. Those who don’t will receive a debit card or a paper check, which will take longer to distribute. The Internal Revenue Service will use tax returns on file to calculate how much money people will get. If recipients have already filed a return for 2020, their check will be based on their income from last year. If not, their 2019 returns will probably be used to determine how much they’ll get. Nick Note: They will try to fool you again. The happy checks are the biggest stock market even of our times. Its a two way trade. Ride it up and once the sheep have been led to the slaughter then short the shit out of this market. But first the rocket launch. As we speak hundreds of million of dollars are about to enter the stock market. And its armature hour. Most people it will be their first plane ride.
Biden delivers his first primetime address…. If you did not see it live I urge you to watch now
President Joe Biden delivers his first national prime-time address from the White House on the anniversary of the nationwide Covid-19 shutdown. one-year anniversary of the coronavirus-induced shutdowns by commemorating Americans’ sacrifices and looking ahead toward a post-pandemic world. “I’m going to talk about what comes next,” Biden said Wednesday in a preview of the speech, which will be his first prime-time address as president. “I’m going to launch the next phase of the Covid response and explain what we will do as a government and what we will ask of the American people.” “There is light at the end of this dark tunnel,” he said. Biden, on his 50th day as president, will also use the spotlight to kick off a victory lap following the final passage in Congress of his $1.9 trillion Covid relief bill. Biden signed the bill into law Thursday afternoon. He is set to embark on a nationwide tour next week to tout the first major legislative accomplishment of his administration. The president will depart Tuesday for Delaware County in Pennsylvania, an electoral swing state that was key to Biden’s victory over former President Donald Trump. Biden’s prime-time speech is scheduled for just after 8 p.m. ET on Thursday night, and will be broadcast from the East Room of the White House. The address is expected to last less than 20 minutes, an administration official said. The president will acknowledge the devastating death toll of the pandemic — at least 529,267 dead in the U.S., according to Johns Hopkins University data — as well as the life-altering challenges caused by sudden lockdowns around the country, the official said. Biden is also expected to emphasize his administration’s efforts to rapidly ramp up production, acquisition and distribution of Covid vaccines, an unprecedented operational endeavor, according to the official. White House press secretary Jen Psaki said Biden will “lay out some more specifics” of how the administration will fight the virus moving forward. Biden on Wednesday, in remarks following a meeting with executives from Johnson & Johnson and Merck, hinted that he will deliver a message of hope and promise through his prime-time address. But the Democratic president, in sharp contrast with his predecessor, suggested that he will continue to temper that optimism with notes of caution. “We cannot let our guard down now, or assume that victory is inevitable,” Biden said Wednesday. “Together, we’re going to get through this pandemic and usher in a healthier, more hopeful future.” “So there is real reason for hope, folks,” he said. Nick Note: Happy checks start hitting today. And the pump is primed to pour even more money into the economy….
Investors dump bonds and gold, pile into equities: BofA
LONDON (Reuters) – Investors piled into equities, while pulling money out of gold and bonds in the week up to March 10, data from BofA Global Research showed.
BofA’s weekly flows report showed investors put $31.5 billion into equities, while taking $1.8 billion out of gold and $15.4 billion out of bonds. Bond yields spiked higher last week on inflation fears, while high-flying tech stocks sold off as investors rotated into cheaper value stocks.
Citing data from EPFR Global, BofA said last week saw the third-largest flows into emerging market stocks ever, and second-largest into value stocks. . Nick Note: the NASDAQ is an aggressive buy. On pull backs double down. Vast sums of money and incredible stupid buyers are about to come into this market in mass. We want to ride the tsunami wave… And as it crashes ashore we want to short the shit out of stocks. Aggressive traders we will buy the rally and ride the wave. When the time comes this will be the greatest shorting opportunity ever. Risk Adverse ETF players go short stay short and WAIT… the big money will be made as the newest groups of suckers are cashed out.
Dow, S&P 500 close at all-time highs
Stocks on Wall Street ended the session on Thursday in the green with the Dow Jones and S&P 500 closing at all-time highs and tech shares sharply rebounding from a recent selloff. President Joe Biden signed into law the $1.9 trillion COVID-19 relief package earlier, paving the way for direct payments for Americans, extended unemployment benefits and increased funding for vaccine distribution. The Dow Jones gained 0.58% or 32,485.59 points. Boeing was the top performer on the Dow, rising 2.71%. The S&P 500 jumped 1.04% to close at 3,939.34 points as mining company Freeport-McMoRan soared 8.73%. The Nasdaq 100 surged 2.36%; Pinduoduo leaped 9.63%.
Biden signs $1.9T coronavirus relief bill…..
United States President Joe Biden signed on Thursday the $1.9 trillion coronavirus stimulus bill dubbed the American Rescue Package after it was approved by Congress earlier this week.
“I believe this historic legislation is about rebuilding the backbone of this country,” Biden said as he prepared to sign the package.
The final bill includes $1,400 direct stimulus checks to Americans, extended unemployment benefits of $300 per week, as well as $350 billion in funding for state and local governments. A further $49 billion for the expansion of COVID-19 testing and research and $14 billion for vaccine distribution are also in the relief package. Nick Note: This is the most significant event of our life time. The greatest transfer of wealth to the masses. And it will bring us the greatest stock market rally ever. Unfortunately this will end and the greatest stock market wipe out EVER. For now lets ride the rocket. The trick will be to know when to bail! Remember the old story if you distribute the wealth of the world equally in a few year the poor would be poor again and the wealthy would have all the money back. That describes exactly what will happen. The masses won the lottery in this coming stock market rally… And they will give it all back
US markets rise further, S&P 500 at record high
Major stock indexes in the United States continued to rise on Thursday, propelled by COVID-19 vaccine-related optimism and better-than-expected economic data. The S&P 500 and the Dow indexes hit all-time highs as worries about rising inflation subsided, while a bigger-than-expected fall in weekly jobless claims reinforced expectations of a labor market recovery. Mega-cap stocks Apple Inc, Microsoft Corp, Facebook Inc and Tesla Inc gained between 2.2% and 3.6%, recouping losses from a recent pullback and helping the benchmark S&P 500 surpass its Feb. 16 peak of 3,950.43. The blue-chip Dow hit an all-time high for the fourth straight session, while the tech-heavy Nasdaq is now about 5% below its Feb. 12 record close after slumping as much as 12% from that level last week. Fewer than expected Americans filed new claims for unemployment benefits last week as an improving public health environment allows more segments of the economy to reopen. “The drop in jobless claims is another win for the week, and a solid sign that we’re making some strides toward pre-pandemic life,” said Mike Loewengart, managing director of investment strategy at E*TRADE Financial. The benchmark Treasury yields were at 1.53% but below 1.6% ahead of an auction of U.S. 30-year debt later in the day. A weak seven-year auction in … The Dow Jones Industrial Average traded 1.04% higher at 11:22 am ET, while the Nasdaq 100 surged 2.34% at the same time. The S&P 500 surpassed its previous peak, growing 1.39% Nick Note: You want to be in this game
Wharton’s Jeremy Siegel sees another 10% rise in stock prices this year
- Wharton School’s Jeremy Siegel said Thursday stocks have more room to run even with bond yields moving higher.
- The latest Covid relief bill will be a driving force pushing the market higher, Siegel told CNBC.
- Siegel said he sees stock prices rising an addition 10% to 12% this year.
Jeremy Siegel, finance professor at the University of Pennsylvania’s Wharton School, told CNBC’s “Squawk Box” Thursday he expects a 10% rise in stocks this year and that value stocks to continue to outperform the market. Nick Note: We are gunning for this 10% upsurge AND THEN THE 30% CRASH…….
Britain set to keep door open for EU derivatives customers
https://youtu.be/MKBhsiIS_B8?t=28
LONDON (Reuters) – Britain is set to allow banks to continue trading derivatives in the European Union after a review this month, given that pulling down the shutters would not bring back the trillions of euros in business lost since Brexit. Britain’s trade deal with the EU since January does not cover financial services, leaving the City of London largely cut off from the bloc, which had banned EU customers from using UK platforms for trading swaps. Hours before Britain’s full departure from the EU on Dec. 31, the Financial Conduct Authority announced that despite the EU refusing to budge on its curbs, it would allow banks in London, including subsidiaries of EU lenders, to trade euro swaps on platforms in the bloc to avoid a rupture with EU customers. As a result, Britain’s share of euro swaps trading has fallen from 40% to 10% since January as volumes moved to Amsterdam and the United States, according to data from IHS Markit. Market share in the EU rose from 10% to 25%, with the United States doubling its share to 20%. The total euro swaps market is around 135 trillion euros ($160.7 trillion), according to the Bank … The total euro swaps market is around 135 trillion euros ($160.7 trillion), according to the Bank for International Settlements. The FCA said in December it would consider by March 31 whether it needed to review its decision and ban banks in London from using EU swaps platforms, but industry officials say they are betting against a change of tack. “I think it is extremely unlikely they will create a cliff edge by withdrawing it at short notice,” said Kirston Winters, a managing director at IHS Markit “My feeling is they won’t modify the current approach, that the relief for EU firms is likely to continue in the medium term,” added Roger Cogan, head of European Public Policy at the International Swaps and Derivatives Association, a global industry body. “It’s as much a philosophical thing as anything else – keeping markets open,” Cogan added. A person familiar with FCA thinking said the watchdog would in any case give several months’ notice to any changes it made. The FCA, which has repeatedly stressed the need for markets to remain open, had no immediate comment. Stopping UK banks from trading with EU clients on platforms in the bloc would make little difference in practice. It would force more EU clients to use platforms in the United States instead of the bloc for transacting with UK banks.”Unilateral action by the UK to end allowing UK investment firms to serve EU clients on EU trading venues would likely only change the division of euro swaps between the EU and the United States, it would not bring trading of those euro swaps back to London,” Winters said. Swaps trading platforms in the United States have “equivalence” or permission from Brussels to transact business with EU clients. Britain is waiting to see if the EU will grant equivalence for the UK as well, though market participants don’t expect this to happen anytime soon for swaps and share trading. The longer Britain waits, the more that new trading arrangements get “baked in” to devalue any equivalence and Brussels won’t want euro activity returning to the City in any case, industry officials have said. The relocation of swaps trading and 8 billion euros in daily share trading from London to the EU since January was smooth, emboldening Brussels to target the clearing of swaps next, industry officials say. The London Stock Exchange Group’s ( LDNXF) LCH arm clears about 90% of global euro swaps trades, and a quarter of LCH’s notional outstanding 83 trillion euros in euro swaps are held by counterparties from the bloc. EU policymakers want this portion shifted to rival clearer Eurex in Frankfurt and regulators like the EU’s European Securities and Markets Authority (ESMA) are studying how this could be done without destabilising markets or bumping up costs for users. Nick Note: I can tell you confusion abounds among English charter banks who have lost reciprocity and cannot operate in Europe any longer.
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