Day: September 10, 2020

Peloton crushes estimates as sales surge 172%, expects strong demand to continue into 2021
Business news

Peloton crushes estimates as sales surge 172%, expects strong demand to continue into 2021

Peloton said Thursday its fiscal fourth-quarter sales surged 172%, as its high-tech stationary bike and treadmill became two of the hottest commodities for people looking to work out at home during the coronavirus pandemic. The fitness equipment maker also offered Wall Street an eye-popping outlook for the current quarter and fiscal 2021, with sales of its bikes not expected to slow down anytime soon. But that also means more strain on its supply chain. In a letter to shareholders, Peloton said it had expected demand to "moderate," but a recent resurgence of Covid-19 cases has "perpetuated the imbalance of supply and demand." It said it doesn't expect to return to "normalized order-to-delivery windows" in the U.S. before the end of the fiscal second quarter. Its shares were up nearly ...
On the money – Vol. 33, No. 8: Currencies
Currencies

On the money – Vol. 33, No. 8: Currencies

Sep 9, 2020 6:54 pm ET On the money The stylebook is being updated to make our descriptions of currency values clearer for U.S. readers. Currently, we often express a currency value in a foreign currency, and put the U.S. conversion abruptly in parentheses. But as Editor in Chief Matt Murray says, to be clearer for U.S. readers, we should strive to use U.S. dollars as much as possible, and guide the reader better about the conversions. So, under the new guidelines: 1) Use the phrase “equivalent to” more often, rather than just a currency figure in parentheses. So: a loss of 570 million yen, equivalent to $4.7 million. (In subsequent references to the yen, use the yen symbol, or do so on first reference in markets articles: ¥570 million.) 2) Use dollar figures always in headlines, even...
The Crude Chronicles
Forex News

The Crude Chronicles

WTI Traders Reduce Longs Again The latest CFTC COT institutional positioning report shows that WTI traders reduced their net long positions in crude last week by a further 9,784 contracts, taking the total position to 49,0915 contracts. Long positions have been steadily reduced over recent weeks, reflecting a growing shift in sentiment in the crude market which has been reflected in the recent bearish price action we’ve seen. Saudi Arabia Cuts Oil Prices WTI prices have shed over 17% in recent weeks, falling from summer highs around the $43.75 region to trade current lows of $36. WTI has come under fresh selling pressure this week as a result of news over the weekend that Saudi Arabia, the largest OPEC producer, has decided to reduce crude prices for its October shipments to the US and ...
Binance will ‘do what they can’ to help recover funds stolen in yesterday’s $5M Eterbase hack
Crypto News

Binance will ‘do what they can’ to help recover funds stolen in yesterday’s $5M Eterbase hack

Eterbase, a Slovakia-based crypto exchange, was recently the victim of a $5M hack. According to an update from Eterbase, some of these funds appear to have ended up on a number of popular exchanges, including Binance, Huobi Global, and HitBTC. Binance CEO's Changpeng Zhao, or CZ, seemed to support efforts to stop the circulation of these stolen funds, replying: “Our security team was on this quite early. Will do what we can to assist.” Through Telegram, Eterbase also published a list of the hot wallets compromised by the hack. These included Bitcoin (BTC), Ehereum (ETH), Tron (TRX), Tezos (XTZ), Algorand (ALGO), and Ripple (XRP) addresses. As of press time, no representatives either from Huobi Global and HitBTC have issued public comments on the matter. However, Eterbase clarified ...
Options Pricing – How it Works
Online Trading

Options Pricing – How it Works

Figuring out the value of a stock or bond is a pretty straightforward problem. For stocks, the price of the shares is directly tied to the underlying value of the company. Successful companies that project strong forward sales growth will be rewarded with a high valuation and rising share prices. For companies bogged down by poor sales, high debt, or murky legal situations, the valuation will be low and the price of the shares will reflect the poor performance. Bond pricing is even more simple – it’s just discounted cash flows. Sure, the formulas are a bit more complex than that, but it’s easy to create a simple heuristic for how stocks and bonds are priced. But when it comes to derivatives like options, the math gets a little more high level. Options are priced based on a vari...
Shah Grp Builders case: Sebi initiates refund process; asks investors to submit bank details
Stock News

Shah Grp Builders case: Sebi initiates refund process; asks investors to submit bank details

Markets regulator Sebi on Thursday initiated the refund process for investors of Shah Group Builders and asked them to submit bank details as well as other documents by September 18. The case relates to raising money through the issuance of shares to more than 1,500 people between July-November 2008 without complying with the regulatory provisions applicable for a public issue. "Since the defaulters (the company and its directors) have already refunded an amount of Rs 2.97 crore, it has been decided to initiate the process of refund of the remaining amount to the eligible shareholders," Sebi said in a notice. Further, more than 600 eligible shareholders have been asked to submit bank account details and other specified documents by email to the company with a copy marked to Sebi by Sep...
The revolution in how we pay for things continues
Investing

The revolution in how we pay for things continues

Over the past few months, clients have asked me how the current environment has transformed the direction of structural change in the global economy. My reply is always that I don’t see a lasting impact on the direction of structural change, but I do see the crisis accelerating many of the structural changes that I’ve already been long invested in – e-commerce, working from home, telemedicine and digital payments, to name a few. Let me dig into digital payments to illustrate what I mean. Long before the effects of the COVID-19 pandemic, the global payments landscape was experiencing fundamental transformation. Over the past few years, customer expectations and behaviors have been changing, the impact of technology has been tremendous, global demographics have evolved, and the market has b...
Carnival’s Costa Revisits Sea: Is Cruise Revival a Reality?
Stock News

Carnival’s Costa Revisits Sea: Is Cruise Revival a Reality?

Carnival Corporation’s CCL Italy-based Costa Cruises is the latest liner to return to the sea, giving a much-needed breather to cruise operators as their business was brought to a grinding halt in the wake of the COVID-19 pandemic. Costa Cruises’ Costa Deliziosa departed on its seven-day voyage on Sep 6 from the Adriatic port of Trieste. With enhanced health and safety protocols in place, the ship is scheduled to stop only at the Italian ports and is reserved exclusively for Italian guests. The cruise liner’s stringent set of health and safety mandates is in line with the Italian government guidelines and the EU Healthy Gateways program. These include staggered entry timings, online check-ins, temperature monitoring, health questionnaire and rapid swab tests. As far as the crew members ...
BOC Says Recovery Beating Expectations
Forex News

BOC Says Recovery Beating Expectations

The September Bank of Canada meeting, held yesterday, passed as expected, with the BOC holding rates unchanged. BOC governor Tiff Macklem reaffirmed the bank’s commitment to keeping rates at current levels until the slack in the economy has been absorbed and the bank’s 2% inflation target has been “sustainably achieved”. Bond Purchases To Continue Along with the pledge to keep rates at current record lows of 0.25% the BOC governor also reassured markets that the bank’s bond purchase operations will continue at the current pace in a bid to help the country progress through what the BOC calls the “recuperation” stage of the economic recovery. While much of the bank’s message was largely unchanged from its last update in July, the BOC did make some changes as it signalled readiness to adjus...
Bitcoin price balances at $10K: Discussing BTC’s next big move
Crypto News

Bitcoin price balances at $10K: Discussing BTC’s next big move

The price of Bitcoin (BTC) has been ranging between $9,800 and $10,500 for nearly a week after a short fall from almost $12,100 seen on Sept. 1. As BTC struggles to show any distinctive price movement, traders are generally cautious. Over the medium to long term, traders expect Bitcoin to recover and perceive the ongoing consolidation phase as a healthy pullback. From July 16 to Aug. 17, Bitcoin rose from $9,005 to $12,486 on Coinbase, with a pullback arguably necessary to neutralize the futures market. A large portion of Bitcoin’s daily volume comes from the futures market. Cryptocurrency futures exchanges use a mechanism called “funding” to achieve a balance in the Bitcoin market. The mechanism forces long contract holders to compensate short-sellers for a portion of their position...