Latest news with #Gold-Rush
Yahoo
31-03-2025
- Automotive
- Yahoo
Goodyear Seen as a Winner in Trump's Tariff War, Deutsche Bank Says
(Bloomberg) — Goodyear Tire & Rubber Co. could be a winner from President Donald Trump's tariffs on car imports as most of its US demand comes from domestic manufacturers and tires aren't included in the planned levies, at least for now, according to Deutsche Bank, which upgraded the tire seller to buy from hold. Gold-Rush Fever Returns to Historic New Zealand Mining Town What Frank Lloyd Wright Learned From the Desert Bank Regulators Fight for Desks as OCC Returns to New York Tower 'Any negative impact on new vehicle sales should be tempered by a significantly higher mix of better margin, replacement tires,' writes analyst Edison Yu, who resumed coverage on Goodyear in December. 'All in, there remain risks on execution, but we believe the company is well situated operationally to outperform with current valuation at trough levels.' Shares rose 5.1% on Monday but are down more than 30% from a peak hit almost a year ago. Peers AutoZone Inc. and O'Reilly Automotive Inc. also ended the day higher. The bullishness comes after Goodyear's steady progress in its cost cutting program, with Deutsche Bank noting that the company has also closed the sale of its off-the-road tire business, announced the sale of its Dunlop intellectual property and reiterated the expectation that its chemicals divestiture should be complete before the end of this calendar year. Yu sees future gains ahead for the stock. He maintains his $13 price target, which implies a 41% jump from where the shares closed on Monday and ranks among the highest on Wall Street. The average 12-month target is about $12. Goodyear is currently trading at $9.24. The stock also has five buys, five holds and zero sell ratings. 'Our conversations with the company have given further confidence that it has the necessary traction to achieve its targeted $1.5 billion in cost savings and margin improvement by the end of 2026,' Yu writes. (Updates with closing prices throughout) Trump's IRS Cuts Are Tempting Taxpayers to Cheat Google Is Searching for an Answer to ChatGPT LA Fire Victims Are Betting on a Radical Idea to Help Them Rebuild Israel Aims to Be the World's Arms Dealer How a US Maker of Rat-Proof Trash Bins Got Boxed in by Trump's Tariffs ©2025 Bloomberg L.P. Sign in to access your portfolio
Yahoo
31-03-2025
- Business
- Yahoo
IMF, World Bank Brace for Trump's ‘America First' Makeover
(Bloomberg) — The International Monetary Fund and World Bank are making their case against a potential breakup with the US under President Donald Trump. Gold-Rush Fever Returns to Historic New Zealand Mining Town What Frank Lloyd Wright Learned From the Desert Bank Regulators Fight for Desks as OCC Returns to New York Tower The sister institutions — major forces of US global influence since World War II — are bracing for impact from Trump's radical makeover of international relations, and pitching the administration on the value they bring to its more transactional America First ethos. That comes amid the risk of a potentially extreme step — US withdrawal from the institutions, as advocated by Project 2025, the Republican playbook whose authors have helped shape policy in Trump's second term. Trump has ordered a review of the US relationship with international organizations, including the IMF and World Bank, which is due by early August. The leaders of the IMF and World Bank have met with Treasury Secretary Scott Bessent, the top official representing the US at the institutions, to explain how they benefit US interests, partly seeking to rebut criticism from within the Trump orbit, according to people familiar with the situation, who asked not to be identified as the discussions have been private. The IMF's Managing Director Kristalina Georgieva and World Bank President Ajay Banga have made similar points to the administration in separate engagements. They argue that they can cover their own administrative costs and their structure magnifies the impact of US contributions. And they say that the US, as the biggest shareholder, already has the power to shape policies. Washington's stake is about 16% for the IMF and about 17% for the bank's oldest fund. They've also stressed that their missions — global financial stability for the fund and development for the bank — benefit the US, including creating demand for exports and heading off financial or humanitarian crises. 'There's a huge amount of uncertainty right now,' said Josh Lipsky, senior director of the Atlantic Council's GeoEconomics Center and former adviser to the IMF through most of Trump's first term. During that time, he said, the administration recognized the value of the fund and engaged constructively. Now, 'the range of outcomes is as wide as can possibly be,' he said. The issue is likely to arise next month as the IMF and World Bank host global finance and central bank chiefs at the annual Spring Meetings in Washington starting April 21. 'Secretary Bessent has a good appreciation for why it is in the interest of the US economy that the fund exists,' Georgieva said Monday in a Reuters interview, adding that there's been 'very good engagement.' The IMF said in an earlier response to questions that she 'has had very constructive discussions with Treasury Secretary Scott Bessent and other representatives of the US administration.' The World Bank said it's updated the administration on its reforms, focus on job creation and efforts to spur private capital. 'Like every shareholder, they want to see the value of their contributions — and we know that trust is earned through delivery,' it said in a statement. For the fund and the bank, the nightmare scenario is that the US leaves them behind. The Project 2025 report, published by the conservative Heritage Foundation, argues that the institutions 'espouse economic theories and policies that are inimical to American free market and limited government principles,' including higher taxes. Washington's best option, it says, is to withdraw rather than push for reforms. 'Conservatives and other pro-market folks have been trying to reform these institutions for decades,' said David Burton, a senior fellow in economic policy at the Heritage Foundation, and one of the authors of Project 2025. 'They're incapable of serious reforms and consistently hostile to US national interests.' Banga has stressed the bank is focused on development, not charity or humanitarian work. He's also highlighted his efforts to shift the bank toward funding nuclear power projects, as well as renewables and natural gas, as a source of low-carbon energy. Both institutions have made climate change and its impacts a focus of their work, an issue that's controversial for the Trump administration, which has promoted fossil fuels over renewables. In the past, US Treasury secretaries have laid out the White House's expectations or demands from the IMF and World Bank ahead of their spring or fall meetings, as a way to set the agenda. In the meantime, the administration has yet to appoint a Treasury undersecretary of international affairs, who manages the relationship with the institutions, or name executive directors to their boards, meaning the US has been abstaining from votes. A Treasury spokesman confirmed Bessent met with Georgieva and Banga, but declined to provide details. Withdrawing from the IMF and World Bank would make the global economy less stable and slow development, said Brent Neiman, an economics professor at the University of Chicago and former Treasury official during the Biden administration. 'If the IMF as an institution didn't yet exist, we'd want to create something just like it,' Neiman said. —With assistance from Eric Martin and Daniel Flatley. (Updates with Georgieva comment in ninth paragraph.) Trump's IRS Cuts Are Tempting Taxpayers to Cheat Google Is Searching for an Answer to ChatGPT LA Fire Victims Are Betting on a Radical Idea to Help Them Rebuild Israel Aims to Be the World's Arms Dealer How a US Maker of Rat-Proof Trash Bins Got Boxed in by Trump's Tariffs ©2025 Bloomberg L.P. Sign in to access your portfolio
Yahoo
31-03-2025
- Business
- Yahoo
‘Frustration and Fatigue' Hit Stock Traders in Run-Up to Tariffs
(Bloomberg) -- The Trump administration's mixed messaging on what new tariffs will be unveiled Wednesday and how they'll be announced have equities traders flustered as they try to position around the biggest risk confronting the market in years. Gold-Rush Fever Returns to Historic New Zealand Mining Town What Frank Lloyd Wright Learned From the Desert Bank Regulators Fight for Desks as OCC Returns to New York Tower 'The best way to summarize this trading environment is frustration and fatigue,' said Joe Gilbert, portfolio manager at Integrity Asset Management. 'We don't really have a clear playbook on how to proceed.' Stocks swung wildly Monday, with the S&P 500 Index falling as much as 1.7% early on before clawing that back and inching into the green in afternoon trading in New York. The broad equities benchmark is on track for its worst quarter since 2022, as investors brace for President Donald Trump to present his plan for sweeping global tariffs in two days. Exactly what that will look like remains a mystery. He's promised levies on all US trading partners, floated some breaks on certain products or countries, and mulled aiding some domestic industries. The setup is confounding Wall Street, forcing many traders to ditch positions, sell risk for the relative security of sectors that historically perform well in a recession, or flee stocks altogether. 'We've gone from a mindset of focusing on greed and how much money can I make to a mindset of fear and how much money can I lose. And it's definitely been an emotional change for traders,' said Carley Garner, senior strategist and founder of DeCarley Trading. 'Our clients aren't panicking quite yet, but if stocks bounce back and we start cracking down and making new lows again here in the next couple of weeks, I think panic will set in.' When Trump was elected, investors expected him to talk loudly about trade. But they also expected him to pull his punches, like in his first term, as he used the S&P 500 as his scorecard. But things have changed. Trump now says he isn't watching the market and seems unfazed by creating short-term pain, even if it sends the US economy into a tailspin. 'You Can't Price It' Larry Fink, chief executive officer of BlackRock Inc., touched on the backdrop in a recent letter to clients. 'I hear it from nearly every client, nearly every leader—nearly every person—I talk to: They're more anxious about the economy than any time in recent memory,' he wrote, adding that he understands why. 'But we have lived through moments like this before. And somehow, in the long run, we figure things out.' Still, there's no way to avoid the current market meltdown. Many traders have moved away from risk because the downside is too strong. 'Clearly traders are already exhausted, and what makes it mentally harder for risk takers is that this uncertainty is very different from risk because you can't price it,' said Frank Monkam, head of macro trading at Buffalo Bayou Commodities. 'If you know someone's going to punch you, and the punch is coming, you brace for it and you are ready. But what's happening right now, nobody really saw any of this is coming.' To make conditions more challenging, even if you think that Trump's trade policies will ultimately benefit the US economy, there's a decent chance things will get worse first. Yes, Trump's April 2 strategy should alleviate some uncertainty. But his tariffs are likely to damage the US economy and hit consumers with higher prices at a precarious moment. 'Trump's so-called liberation day may feel more like a sentencing day for traders and CEOs alike, as they wait to hear just how tough tariffs may get,' said Max Gokhman, deputy chief investment officer at Franklin Templeton Investment Solutions. Even so, some investors are betting on longer-term gains. Trump's levies are supposed to raise tax revenue to close the federal budget deficit, fund another round of tax cuts, and encourage US companies to reshore manufacturing. If you expect that to happen, you also want to be around for the liftoff. 'Surprisingly, a fair amount of clients are still waiting for the good part of all of this to happen,' Gilbert said. 'There's still a glimmer of optimism. But the unfortunate part of it is we don't know exactly how much damage will have already been done before good things happen.' Trump Put Hopes Some Wall Street pros are hoping that Wednesday ends up being the so-called Trump Put, with the president signaling a win and releasing some of the pressure weighing on the stock market. 'Most politicians don't want to self-immolate,' said Rhys Williams of Wayve Capital Management. 'This strikes me as what's happening. I doubt he does a complete 180 turn, but potentially Wednesday could be better than feared.' Of course, the risk is the impact of tariffs could be far-reaching. For example, continued pressure on US companies and consumers could hit earnings reports in the back half of the year, cutting into the biggest driver of stock market momentum. In addition, the big tech shares that were the highest flyers in previous years, may be under additional pressure, according to Bloomberg Intelligence. 'Mega-cap US tech may be at considerable risk, with extremely high valuations and assumptions that margin moats will remain intact,' Gina Martin Adams, Bloomberg Intelligence's director of equity strategy and chief equity strategist, wrote in a note on Monday. 'Companies with high facilities exposure and elevated cost of goods sold outside the US face the greatest direct threats in the short run, while those with elevated revenue exposure are not immune.' The pressure on these stocks marks a key difference from other recent downturns, when the the so-called Magnificent Seven group were considered havens, powering returns and posting strong earnings regardless of what was happening around them. With the group down more than 17% to start the year, now may seem like a decent time to snag some of those shares a discount, the risk is rather than buying a dip, investors are trying to catch a falling knife. 'Do I wish I'd sold everything on January 22nd?' Williams asked rhetorically, referring to the S&P 500's post-inauguration rally. 'The answer is yes.' --With assistance from Anya Andrianova. (Updates stock moves throughout) Trump's IRS Cuts Are Tempting Taxpayers to Cheat Google Is Searching for an Answer to ChatGPT LA Fire Victims Are Betting on a Radical Idea to Help Them Rebuild Israel Aims to Be the World's Arms Dealer How a US Maker of Rat-Proof Trash Bins Got Boxed in by Trump's Tariffs ©2025 Bloomberg L.P. Sign in to access your portfolio
Yahoo
31-03-2025
- Business
- Yahoo
Ex-Deutsche Bank executive claims he was fired for whistleblowing
(Bloomberg) — A former senior Deutsche Bank AG operations executive alleged in a lawsuit that he was illegally fired over a concocted racial bias complaint after he raised concerns that the bank was lying to US regulators. Gold-Rush Fever Returns to Historic New Zealand Mining Town What Frank Lloyd Wright Learned From the Desert Bank Regulators Fight for Desks as OCC Returns to New York Tower Charter Schools, Colleges Push Muni Debt Distress Near Record School for Hollywood, NBA Stars Sells $55 Million in Muni Bonds Noah Ramos filed suit Monday in New York state court. He claims that, shortly after he was made head of Americas operations for Deutsche Bank Securities in October 2023, he learned that the company's lending business had improperly accrued $173 million in receivables due to 'a lack of operational controls and general negligence in operations.' Ramos says he reported the matter to more senior bank executives, urging them to self-report the issue to the Federal Reserve. But he alleges that his superiors appeared to want to avoid recognizing a significant loss in the lending business and chose instead to tell the Fed that the accumulation was due to faulty accounting at other Deutsche Bank units. He 'observed DB's highest ranking executives, who were also his direct supervisors, laughing and joking that the Federal Reserve appeared to 'have bought' DB's lie about 'accounting errors,'' Ramos said in his suit, which is seeking at least $100 million in damages. 'The allegations made in this claim have been thoroughly investigated and were determined to have no merit,' a Deutsche Bank spokesperson said in a statement. 'We will vigorously defend ourselves.' According to Ramos, he was accused in January 2024 of 'engaging in anti-Asian bias' over comments he made about wrapping paper depicting the popular Japanese cartoon character 'Hello Kitty.' Ramos claims the bias allegation was 'ridiculous on its face' but resulted in an intensive human-resources probe, during which he was subject to 'repeated five-to-ten hour long integration sessions.' He alleges this was part of an effort to 'provide cover for the real reason DB wanted to terminate Mr. Ramos' employment: he had engaged in protected whistleblowing activity.' He says in his suit that the bias complaint resulted in his termination for cause in February 2024. Ramos says Deutsche Bank's 'defamatory' reason for firing him was reflected in his Financial Industry Regulatory Authority U-5 form and has had a 'significant detrimental impact' on his career. In his suit, Ramos notes that the bank agreed to pay $186 million in 2023 after a Federal Reserve investigation found that it failed to put in place sufficient measures to prevent money laundering after earlier violations, and that the company paid about $9 billion in fines and settlements with financial regulators and others 'for a vast range of wrongdoing' between 2008 and 2016. The case is Ramos v. Deutsche Bank Securities, New York State Supreme Court, New York County. Trump's IRS Cuts Are Tempting Taxpayers to Cheat Google Is Searching for an Answer to ChatGPT Israel Aims to Be the World's Arms Dealer LA Fire Victims Are Betting on a Radical Idea to Help Them Rebuild Business Schools Are Back ©2025 Bloomberg L.P. Sign in to access your portfolio
Yahoo
31-03-2025
- Business
- Yahoo
Traders Eye Ominous Technical Levels as Stocks Rout Intensifies
(Bloomberg) -- Stock market traders have their eyes glued to some key technical charts to get a sense of where the market is headed next as the equities rout becomes increasingly intense over fears of trade uncertainty and slowing economic growth. Gold-Rush Fever Returns to Historic New Zealand Mining Town What Frank Lloyd Wright Learned From the Desert Bank Regulators Fight for Desks as OCC Returns to New York Tower Charter Schools, Colleges Push Muni Debt Distress Near Record School for Hollywood, NBA Stars Sells $55 Million in Muni Bonds The S&P 500 Index briefly sank below the first ominous milestone traders were watching at the start of the session — 5,504.65, the most recent intraday low touched on March 13. But the broad equities benchmark quickly reclaimed that level and was down 1.2% to around 5,516 at 10:26 a.m. in New York on Monday. The question now is whether it stays there. 'That was the low that kick-started the 5% rally, showing there were buyers there,' said JC O'Hara, chief market technician at Roth Capital Partners. 'Plenty of eyes will be watching to see if the bulls can defend that line again.' Traders are looking for anything that can give them a clue of the market's behavior ahead of the crucial April 2 deadline when President Donald Trump's administration is expected to announce 'reciprocal tariffs' on all countries. At the same time, several Wall Street strategists on Monday sounded the alarm on US equities, citing risks to growth from the lack of clarity on trade policy. 'When the fundamental picture is as hazy as it currently is — be it economic growth, geopolitics or earnings — technicals provide a clearer view of behavior,' said Mark Hackett, chief market strategist at Nationwide. 'Technicals are a temperature check, measuring the psychology of investors, their patterns of behavior, and the supply-demand for shares.' From a technical perspective, if the S&P 500 closes beneath its March 13 low, there isn't much support 'until 5,400,' O'Hara said. That's a 3.2% drop from Friday's close. Technical strategists also recommend keeping an eye on market breadth, looking for more evidence of washed-out conditions. A 10% or less reading in the percentage of stocks trading above their 20-day moving average would be 'a good sign of a capitulation,' said Adam Turnquist, chief technical strategist at LPL Financial. The stock market's fear gauge — the CBOE Volatility Index, or the VIX — is under close scrutiny as well. It's currently hovering near 24, a level that indicates traders are getting anxious. And market pros are watching to see if it approaches 30, which would indicate rising distress. Before the stock market bottoms, the VIX needs to re-test the high of 29.57 touched earlier this month, Jeff Jacobson, derivatives strategist at 22V Research, wrote in a note to clients on Sunday that the VIX would need to at least re-test the the highs touched earlier this month before markets can bottom. 'VIX remains well below the highs hit earlier this month, even as the indexes are barely above the lows,' he said in the note. Semiconductor and mega-technology stocks, which have been the key drivers of the US stock market over the past few years, remain the key bellwethers for equities traders. This has become increasingly crucial as concerns around tariffs and growth collide with emerging worries about the trajectory of the artificial intelligence trade and big tech's returns on capital expenditures. The technology sector 'led on the way up of this bull market and also on the way down,' LPL's Turnquist said. 'If the sector breaks the September lows, I would expect a retest of the August lows, which raises the risk of the S&P 500 following the same way.' Still, despite the hunt for clues, investors may remain somewhat blind for a while until more concrete readings are available, whether that's policy, economic data or corporate earnings. 'We will likely see some directionless volatility before resuming an upward trajectory,' Nationwide's Hackett said. Trump's IRS Cuts Are Tempting Taxpayers to Cheat Google Is Searching for an Answer to ChatGPT Israel Aims to Be the World's Arms Dealer Business Schools Are Back How a US Maker of Rat-Proof Trash Bins Got Boxed in by Trump's Tariffs ©2025 Bloomberg L.P. Sign in to access your portfolio
