Daily Briefing: Update from Raoul on the Dollar, Rates, Growth, and Crypto

Daily Briefing: Update from Raoul on the Dollar, Rates, Growth, and Crypto

Real Vision CEO and co-founder Raoul Pal joins senior editor Ash Bennington to make sense of a market in flux and share opportunities on his radar. Raoul updates his macro views on the dollar, interest rates, and economic growth before he discusses new developments in the crypto world such as the IPO of Coinbase as well as the U.S. listing of Galaxy Digital. Raoul also shares his latest views on ARK Innovation ETFs as part of his belief in durable secular trends driven by technology that abide by Metcalfe’s Law.

Tyler Durden
Fri, 04/09/2021 – 12:00

via ZeroHedge News https://ift.tt/3uCRr0L Tyler Durden

Beijing Halts Enrollment At Jack Ma’s Business School As Big-Tech Crackdown Continues

Beijing Halts Enrollment At Jack Ma’s Business School As Big-Tech Crackdown Continues

Alibaba founder Jack Ma is apparently still in the dog house six months after criticizing Beijing’s regulation of the Chinese tech industry as “stifling innovation” at an obscure tech conference.

The FT reported Friday morning that authorities in Beijing had forced an elite business school backed by Alibaba Group founder Jack Ma to halt enrollments. Ma founded the school in 2015, ostensibly to train the next generation of Chinese entrepreneurs. Perhaps the CCP is worried that the school might be provoking its students to ask too many questions.

Hupan Academy, based in the city of Hangzhou where Alibaba also has its headquarters, suspended a first-year class set to begin in late March, the FT reported. Tuition for the three-year program amounts to 580,000 yuan ($88,500.98), putting it on par with American business schools in terms of cost. Students listed in the incoming class of 2019 included executives from Keep, a successful Chinese exercise company, and fast-growing domestic chip firm Horizon Robotics.

According to the FT, the decision to shut down Hupan “is the strongest indication yet that the crackdown on Ma’s interests is broadening beyond his businesses to encompass other activities through which he projects influence.” Though he has appeared in video messages and media reports confirmed he is still free to travel as he pleases, the executive hasn’t been seen in public since October. Ma, it has been reported, is a member of the CCP.

The school is already considered one of China’s most prestigious. But in that reputation, the CCP apparently sees a threat.

“The government thinks Hupan has the potential to organise China’s top entrepreneurs to work towards a common goal set by Jack Ma instead of the Communist party,” said a person close to the school. “That cannot be allowed.”

Still, the FT’s sources reported that classes continue for existing students and the school is not set to close for good, which offers some hope that it might continue after a brief disruption – assuming Ma proves sufficiently contrite.

However, it’s also possible that the CCP could abolish the school, since some see it as a modern-day reincarnation of “the Donglin Academy”.

Some high-ranking officials in Beijing have begun to view the school as a modern-day version of the Donglin Academy, one person said. The private academy was a powerful 17th century debating ground that spawned like-minded thinkers who eventually influenced politics and weakened the Ming Dynasty government.

Hupan is like an elite community, it’s one of [the authorities’] main targets,” said another person who has worked with Ma. The person added that while Beijing might view Hupan as a means for Ma to build an even more powerful following, the school was focused on entrepreneurship.

The school recently invested $89MM in a new campus, and its alumni already rank among China’s business elite. Graduates from the program include several highly-placed executives at Chinese tech giants like ride-sharing app Didi. Jean Liu, president of the Chinese ride-sharing firm, is an alum, along with Shen Peng, founder of online insurance platform Waterdrop.

Since retiring from CEO as Alibaba, Ma has made education his signature issue. When Ma set up Hupan in 2015, he proclaimed “we want Hupan to run for 300 years” as it welcomed its first class of six students.

Beijing’s crackdown on Ma and Alibaba started last year when the CCP abruptly scrapped the domestic IPO of Ant Group, which was to be spun out of Alibaba with Ma to serve as chairman following those controversial comments from Ma. It has continued this year with new anti-trust regulation placing new constraints on Tencent, Alibaba and Ant – and the campaign likely isn’t over yet.

Tyler Durden
Fri, 04/09/2021 – 17:20

via ZeroHedge News https://ift.tt/3d6yBZS Tyler Durden

This Economic Depression Has Left Very Deep ‘Scars’ All Over America

This Economic Depression Has Left Very Deep ‘Scars’ All Over America

Authored by Michael Snyder via TheMostImportantNews.com,

The last 12 months have been pure hell for the U.S. economy. According to Oxxford Information Technology, approximately 4 million U.S. businesses permanently closed their doors in 2020.  We have never seen that many businesses wiped out in such a short period of time in the entire history of our country.  Meanwhile, we have seen a tsunami of unemployment that has been absolutely unprecedented.  More than 70 million new claims for unemployment benefits have been filed during the pandemic, and the number of new claims each week continues to hover at a level that is about three times as high as we witnessed before the pandemic.  Currently, the Economic Policy Institute is telling us that “25 million American workers are either unemployed, underemployed or have pulled out of the workforce entirely”.  This economic depression has already been extremely painful, and many experts believe that a whole lot more economic pain is still on the horizon.

If you are doing well in this economic environment, you should be very thankful for your blessings, because millions of other Americans are suffering greatly.  One of those Americans that is deeply suffering is named Denitra Pearson

One hundred and forty days have passed since Denitra Pearson lost her job caring for the elderly in their homes. Forty-two days have passed since she, her husband, and children lost all their belongings after a fire engulfed their house on a snowy winter night.

They’re now living in a hotel.

Denitra has six kids to care for, and the only “job” that she has been able to find is low-wage work vaccinating people at a local clinic

Pearson, a New Haven mother of six, has an associate’s degree and two job certificates but only one of the dozens of applications she’s filled out has led anywhere, landing her another low-wage job at a local clinic vaccinating people against COVID-19. Her husband, who was a chef at a nearby university before the pandemic disrupted the college campus, is still looking for work.

This economic depression has pushed millions of formerly middle class Americans into poverty, and for many of them life will never be the same again.

At this point, the Bureau of Labor Statistics says that a whopping 2.4 million Americans have been unemployed for 52 weeks or longer…

Nearly 2.4 million Americans were unemployed 52 weeks or more in March, according to the Bureau of Labor Statistics.

That’s almost double the number in February and is about 1.6 million more people than in March 2020.

Could you imagine being out of work for that long?

Almost one-fourth of all of our unemployed workers have been out of a job for at least 12 months, and one economist that was interviewed by CNBC is calling that fact “pretty breathtaking”

“I think that number is pretty breathtaking, that nearly a quarter of unemployed workers have been unemployed for over a year,” said Heidi Shierholz, director of policy at the Economic Policy Institute and former chief economist at the Department of Labor from 2014 to 2017.

“It really shows that even as the economy is recovering, you have a lot of the same people who have been unemployed throughout this whole damn thing,” she added.

I feel particularly bad for college students that are graduating in this sort of environment.

Many of them went in with such high hopes and dreams, but now the job opportunities that they were promised are not materializing.

College senior Bao Ha will be graduating this year from Macalaster College in Minnesota, but he hasn’t even been able to land an interview even after applying for more than a hundred jobs

The job market is starting to roar back, but for anxious college seniors like Bao Ha, it’s a different reality altogether.

“I’ve probably applied to like 130 or 40 jobs or something,” Ha says. “I have not gotten even an email back, or an interview.”

College graduate Erica Schoenberg is in the same boat.

She hasn’t been able to find a full-time job after a year of searching, and so she is still living with her parents

Erica Schoenberg would know.

She was a member of the class of 2020, which had the misfortune of graduating in the brunt of the pandemic.

A year after Schoenberg watched her virtual graduation ceremony from Trinity University from her living room couch, she’s back at her parents’ home because she can’t find a full-time job.

During this pandemic, the percentage of Americans that are living with their parents reached the highest level since the Great Depression of the 1930s.

That is crazy.

But there is some good news.

The good news is that we are in a temporary pocket of time in which economic conditions have stabilized.  Things are certainly a lot worse than they were before the pandemic, but at least we are not seeing the same sort of rapid deterioration that we did throughout much of 2020.

Of course this temporary pocket of time will not last, and that is the bad news.

If anyone out there believes that Joe Biden is going to save the U.S. economy, they are just being delusional.

The stimulus money that Americans are being showered with right now will help in the short-term, but all of the borrowing and spending that our government is doing will just make our long-term problems even worse.

We should be thankful for the relative stability that we are currently enjoying, but this is not a time to party.

Instead, we should be using this time to prepare for the troubled times that are ahead, because the truth is that our long economic nightmare is just beginning.

*  *  *

Michael’s new book entitled “Lost Prophecies Of The Future Of America” is now available in paperback and for the Kindle on Amazon.

Tyler Durden
Fri, 04/09/2021 – 17:00

via ZeroHedge News https://ift.tt/3d55OVD Tyler Durden

Spotify Continues Removing Some Joe Rogan Experience Episodes

Spotify Continues Removing Some Joe Rogan Experience Episodes

Spotify is continuing to remove episodes of The Joe Rogan Experience from its service after shelling out $100 million to bring the popular podcast exclusively to their platform. 

Digital Media News documented that 42 of Rogan’s podcasts had been recently deleted from his catalogue of almost 1,500 episodes, The Blaze wrote on Thursday.

Spotify hasn’t commented on the deletions, which included episodes with Chris D’elia, Owen Benjamin, Joey Diaz, Gavin McInnes, Eddie Bravo, Alex Jones and Milo Yiannopoulos. Rogan himself has faced criticism for statements he has made about the transgender lobby.

In September, numerous Spotify employees threatened to strike over what they thought were problematics statements made on Rogan’s podcast. “A contingent of activist Spotify staffers are now considering a walkout or full-blown strike if their demands for direct editorial oversight of ‘The Joe Rogan Experience’ podcast aren’t met,” a September report on the strike said. 

Either way, Rogan didn’t seem to be upset about Spotify’s decision not to move over some episodes. Dozens of Rogan’s past episodes with “controversial guests” like Alex Jones, David Seaman, Owen Benjamin, Stefan Molyneux, Milo Yiannopoulos, Gavin McInnes, Charles C. Johnson, and Sargon of Akkad did not make the migration over to Spotify, according to Entertainment Weekly.

Rogan noted that this was actually part of his $100 million deal, stating: “There were a few episodes they didn’t want on their platform, and I was like ‘Okay, I don’t care’.”

It remains to be seen whether he knows about the additional deletions. “They don’t give a f*** man. They haven’t given me a hard time at all,” he said months ago.

With regard to potential continued threats to strike, we’ll repeat what we said back in September 2020: one wonders why exactly Spotify should give a shit – especially with millions of people still out of work who we are sure would appreciate the opportunity to work in a large and growing tech company and could manage to leave their political/social-justice-virtue-signaling egos at home.

Tyler Durden
Fri, 04/09/2021 – 16:42

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Anti-War Activist Visited By Police After Posting Embarrassing AOC Video

Anti-War Activist Visited By Police After Posting Embarrassing AOC Video

Authored by Max Blumenthal via The GrayZone.com,

An anti-war activist said he was visited by California Highway Patrol officers after posting video of Rep. Alexandria Ocasio-Cortez’s bumbling comments on Israel-Palestine. The action, which AOC denies triggering, was initiated by a call to US Capitol Police.

As he waited for a food delivery at his home in Los Angeles on April 8, Ryan Wentz, an anti-war activist and producer for the online viral program, Soapbox, heard two men calling his name from over his front gate. When he approached, he realized they were not delivery drivers, but police officers flashing badges of the California Highway Patrol.

The cops informed Wentz that they had received a call from the Capitol Police, the federal law enforcement agency tasked with protecting the US Congress, about a tweet he had sent that allegedly threatened Rep. Alexandria Ocasio-Cortez.

Wentz told The Grayzone, “The officers said, ‘We got a warning about a sitting member of Congress. And it was because of your tweet, which tagged them in it. And then they just wouldn’t back down from this accusation that I threatened to kill her.’

The California Highway Patrol indicated on Twitter that it had acted on a call from Capitol Police. Update: A spokesperson for AOC has denied to Intercept reporter Ryan Grim that their office reported Wentz’s post, and has “asked Capitol Police to look into what happened here.”

The police visit Wentz received may be part of a wider trend of post-January 6 police intervention in social media criticism of members of Congress.

Though AOC’s office has denied falsely informing Capitol Police of an online threat by Wentz, the Democratic congresswoman has in the past asked her supporters to report critics to social media censors.

Whoever called the police on Wentz furnished law enforcement with a patently false allegation, as he has never threatened violence against any member of Congress. In the tweet that triggered the police action, Wentz merely posted video of AOC delivering a vapid and embarrassingly convoluted answer to a question about resolving the crisis in Israel-Palestine. Describing her answer as “incredibly underwhelming,” he let the congresswoman’s cringeworthy commentary speak for itself.

Asked by Michael S. Miller of the New York Jewish Community Relations Council about actions that could be taken to support movements towards peace between Jewish Israelis and Palestinians, AOC responded as follows:

Earlier just now you and I were talking about the what and the how. And I think that when we talk about peace, centering people’s humanity, protecting people’s rights – it’s not just about the what and the end goal which actually gets a lot of focus, but I actually think it’s much more about the how, and the way we are coming together, and how we interpret that what, and how we act in, you know, the actions we take to get to that what. So what this really is about is a question more than anything else about process. And we really need to make sure that we are valuing a process where all parties are respected and have, you know, a lot of equal opportunity to really make sure we are negotiating in good faith, etcetera. That being said, you know, I think there’s just this one central issue of settlements, because if the what – if the what has been decided on as two state, then the action of settlements, it’s not the how to get to that what. And so, you know, I think that’s a central thing that, you know, we center. And that we value Jewish and rather, we value Israeli, uh, uh, uh, we value the safety and human rights of Israelis, we value the safety and human rights of Palestinians, in that process that is similar, and that is on equal footing. And so all of that is extremely important in that process.

The video that Wentz tweeted of AOC’s long-winded dodge of a fundamental question about resolving the Israeli occupation of Palestine prompted a flood of online mockery and contempt, mostly from leftist Twitter users. Many derided AOC as a careerist who had abandoned progressive causes like Palestinian liberation in order to curry favor with Democratic Party power brokers, while others ridiculed her meaningless word salad.

Within hours of the online pile-on, someone reported Wentz to the Capitol Police for tweeting the video that embarrassed AOC. Because Wentz does not provide any information about his personal identity in his public Twitter profile, the social media giant appeared to have provided his private details to federal law enforcement.

“Another weird thing is usually I would get a report [from Twitter],” Wentz said, “because I’ve gotten my tweets reported before. But I didn’t get any notification about this.”

AOC’s staff has previously appealed to social media censors to suppress online criticism. On February 4, 2021, her campaign sent a mass email to supporters asking them to “scan your social media to find posts with misleading information” about the congresswoman, and “use the built-in report feature to flag them for moderators.”

Team AOC issued its appeal for supporters to police social media in response to right-wing mockery of a dramatic livestream in which AOC suggested that the mob which stormed the Capitol building on January 6 nearly assassinated her.

“I just hear these yells of ‘WHERE IS SHE? WHERE IS SHE?'” she recounted in the livestream. “This was the moment where I thought everything was over. I thought I was going to die.”

However, the source of the yells which had terrified AOC turned out to be a Capitol Police officer who had been dispatched to protect her. Further, the congresswoman’s office was located in the Cannon House Office Building, which had not been penetrated by any rioters on January 6.

Right-wing activists and other political foes of AOC exploited these points to launch a viral hashtag likening the congresswoman to Jussie Smollet, the actor who faked an attack on himself. After attempting to challenge her critics directly, AOC delegated her staff to dispatch its army of supporters to report critics en masse to Twitter and Facebook censors.

Weeks earlier, online podcaster Jimmy Dore had initiated a “Force The Vote” campaign to pressure AOC and fellow members of the progressive congressional “Squad” to withhold their votes for Rep. Nancy Pelosi as Speaker of the House until Pelosi agreed to bring a bill for Medicare for All to the floor for a vote.

In response to incendiary criticism from Dore for her refusal to buck centrist party leadership, AOC declared, “That’s not tone, that’s violence.”

According to Wentz, the police officers that visited him asked if he had any violent intent behind his tweet, then left. “If this was like a purely intimidation thing,” he reflected, “then I guess it did its job. It’s not comforting to be on the receiving end of that. But at the same time, they’re not going to shut the left up.”

Wentz’s disturbing encounter with law enforcement appears to be part of an emerging trend. On the same date law enforcement visited him, a Twitter user posted photos of alleged federal agents on their front lawn and claimed, “FBI just came by my house for a tweet to Ted Cruz.”

Tyler Durden
Fri, 04/09/2021 – 16:21

via ZeroHedge News https://ift.tt/3mA4YDp Tyler Durden

Stocks Panic-Bid To End ‘Inflationary’ Week, Dollar Dumps

Stocks Panic-Bid To End ‘Inflationary’ Week, Dollar Dumps

Including last Friday’s shortened day (during which futures were open around the payrolls print), Nasdaq has soared and Small Caps disappointed (especially notable given the spike in Small Caps on the jobs print). We must say we enjoyed the farcical ramp in the last few minutes of the day that sent ..

WTF!!!

But hey, the hottest PPI in 10 years is transitory and all that Biden bonanza money must be great

After 6 weeks of relative underperformance, growth is up for the second straight week against value as inflationary prints (US PPI and China factory prices) escalate (this was the biggest 2-week spike in growth over value since August)…

Source: Bloomberg

The Russell 2000 has been glued to its 50DMA for a few days now…

Rather notably the resurgence in Nasdaq relative to Russell 2000 came right as the pair unwound all the pandemic move…

Source: Bloomberg

All this exuberant big-tech buying has done nothing for SPACs or IPOs…

Source: Bloomberg

A chaotic couple of days in vol-land (no those are not bad prints, but those odd pukes we have seen time and time again. The late day spike in stocks appeared fueled by a pump’n’dump in VIX as perhaps RP strategies relevered…

After an ugly spike on last Friday’s payrolls (bonds were open half day), Treasuries have trend stronger with the belly notably outperforming the wings…

Source: Bloomberg

It appears the payrolls print spike pushed the belly (5Y) too rich and the 2s5s10s fly has now retraced back into negative territory once again…

Source: Bloomberg

10Y Yields 1.65% strange attractor continues…

Source: Bloomberg

Real yields trod water on the week…

Source: Bloomberg

The Dollar dropped for the second week in a row but bounced today after the PPI print off the pre-FOMC plunge level…

Source: Bloomberg

Bitcoin had a rollercoaster week but managed to end back above $58,000…

Source: Bloomberg

Ethereum was bid each time it dipped back below $2000…

Source: Bloomberg

Gold managed gains on the week but was very volatile intraday (note that Gold’s gains stalled at the earlier spike from mid-March)…

Oil had an ugly week, with WTI unable to hold above $60 (4th down week of the last 5)…

 

 

Source: Bloomberg

 

 

Source: Bloomberg

Finally, as we noted earlier, it seems interest in buying VIX calls (implying equity downside protection) is soaring…

Source: Bloomberg

And this caught our eye, the correlation between gold and bitcoin has collapsed to a record low (negative) as it seems crypto is winning in the inflation hedge flows (for now)…

Source: Bloomberg

Tyler Durden
Fri, 04/09/2021 – 16:04

via ZeroHedge News https://ift.tt/2Q96bpd Tyler Durden

China In New Threat To Taiwan: “Island’s Military Won’t Stand A Chance”

China In New Threat To Taiwan: “Island’s Military Won’t Stand A Chance”

China’s prominent English-language state media mouthpiece Global Times on Friday published a fiery editorial which conveys the mood in Beijing at a moment of unprecedented ratcheting tensions surrounding Taiwan. If China chooses to invade the breakaway democratic island, then Taiwan’s military “won’t stand a chance” it said.

The article further attacked Taiwan’s pro-independence movement and its external backers, saying the people of Taiwan are currently “dashing into a war that they cannot win.”

Chinese aircraft carrier Liaoning passes through the Miyako Strait near Okinawa, via Japan’s Defense Ministry on April 4, 2021.

At the moment China’s PLA military is flexing as both a warning to Taipei and also American naval patrols in the South China Sea, given over past days there’s been repeat air and naval incursions into Taiwan-claimed territory surrounding the island. 

The column by GT’s defense analyst Liu Xuanzun spells out this ‘warning’ precisely by quoting an unnamed “military expert”:

Another military expert who requested anonymity told the Global Times that Democratic Progressive Party (DPP) authorities are seeking secession at the cost of ordinary people in Taiwan by tying them onto the chariot of the “Taiwan independence” forces and dashing to a war that they cannot win.

The PLA exercises are not only warnings, but also show real capabilities and pragmatically practicing reunifying the island if it comes to that, the analyst said. “The island’s military won’t stand a chance.”

It stated that Beijing currently has “no choice” but to enter a state of “enhanced war preparedness”.

The author additionally accused the US Navy of stoking tensions by sailing the USS John S. McCain destroyer through the Taiwan Straits on Wednesday, and then sending the US Makin Island Amphibious Ready Group into the South China Sea the day after. 

The column said that Beijing is also monitoring new reports of Taiwan’s military preparing to shoot down any threatening Chinese drones should they ‘stray to close’ to the island’s defenses.  

GT ascribed all of these things and the new tensions ultimately to Taiwan “secessionists’ hype of PLA threats” – but which will ultimately come to nothing in the face of the vastly superior mainland forces.

“Taiwan secessionists’ hype of PLA threats is crying for help from countries like the US and Japan, since they know they are powerless and want to make the Taiwan question an international one, Shi Hong, Executive Chief Editor of the Chinese mainland magazine, Shipborne Weapons, told the Global Times,” the state publication said. “PLA’s exercises from all directions of the island showed that mainland forces can isolate the island’s troops and cut off foreign intervention, and the US will not be able to come to Taiwan secessionists’ aid if a situation arises, Shi said.”

But this latter point is anything but certain, given by all appearances the Biden administration is acting just as hawkish on China than even Trump – or perhaps some might argue even more so.

Tyler Durden
Fri, 04/09/2021 – 15:55

via ZeroHedge News https://ift.tt/323nOJH Tyler Durden

Electric Silverado Joins GM’s EV Lineup

Electric Silverado Joins GM’s EV Lineup

Submitted by Market Crumbs,

Just a few months after unveiling an all-electric version of its popular Hummer, General Motors announced this week that it will introduce an electric version of its Silverado pickup truck.

The Chevrolet Silverado electric full-size pickup will be built on GM”s Ultium Platform as GM estimates it will provide a range of more than 400 miles on a full charge. GM added the electric Silverado will be available in both retail and fleet versions but declined to say when production will begin or when it will go on sale.

“The vehicles coming from Factory ZERO will change the world, and how the world views electric vehicles,” GM President Mark Reuss said.

“The GMC HUMMER EV SUV joins its stablemate in the realm of true supertrucks, and Chevrolet will take everything Chevy’s loyal truck buyers love about Silverado — and more — and put it into an electric pickup that will delight retail and commercial customers alike.”

The electric Silverado will be built at GM’s new 4.5 million square foot Factory ZERO assembly plant in Detroit and Hamtramck, Michigan alongside the GMC HUMMER EV pickup and the Cruise Origin. GM has committed $2.2 billion to renovate and retool Factory ZERO, the largest for a manufacturing facility in its history.

An electric Silverado is just the latest move by GM to reach its goal of delivering more than 1 million electric vehicles globally by 2025. GM says vehicle development time has been reduced by almost 50% to 26 months thanks to its Ultium Platform, virtual development tools and technology.

Investors approve the moves by GM to embrace a future with electric vehicles as shares continue to make new all-time highs on an almost daily basis.

Tyler Durden
Fri, 04/09/2021 – 15:40

via ZeroHedge News https://ift.tt/3d3cmE9 Tyler Durden

BlackRock, State Street Exploring Takeover Of Credit Suisse Asset Management Arm

BlackRock, State Street Exploring Takeover Of Credit Suisse Asset Management Arm

Earlier, several financial media outlets reported that Credit Suisse was considering dramatically shrinking or selling off its prime brokerage unit, the hedge-fund-focused business that just lost $4.7 billion for the bank, obliterating 18 months of the bank’s average net profits.

But in the last few hours, the focus has shifted to the bank’s asset management unit, amid reports that several American firms might be interested in making a bid, even as the bank has yet to release the final tally of expected losses from the Greensill debacle.

With Credit Suisse stock trading at its lowest level in months after a 25% drop, some apparently see an opportunity for a deal. According to Reuters, a SPAC has partnered with BlackRock to hash out the possibility of making a bid to spin out Credit Suisse’s asset management business, where the busted Greensill-stocked trade finance funds were based.

And they’re not the only bidders. BlackRock rival State Street is also reportedly weighing a bid.

BlackRock and Jean-Pierre Mustier’s blank-check firm are among investors expressing interest in Credit Suisse’s asset management arm, three sources told Reuters, as the Swiss lender explores options for the unit after a run of costly scandals.

U.S. investment firm State Street Corp is also eyeing a rival bid for all or part of the Swiss bank’s fund management business, while European asset managers including Germany’s DWS are waiting in the wings, the sources said, speaking on condition of anonymity.

Former UniCredit boss Mustier’s blank-check firm Pegasus Europe, which focuses on financial services investments, is due to list in Amsterdam between the end of April and early May, two sources said.

A spokeswoman for Credit Suisse said the bank had no plans to sell all or any parts of its asset management business. BlackRock, State Street, DWS and Pegasus Europe all declined to comment.

The sources said Credit Suisse is in the early stages of a strategic review of its asset management arm and has yet to entertain in-depth discussions with interested parties.

The bank will need to wait for former Lloyds boss Antonio Horta-Osorio to take over as chairman in May before any decision on whether to sell or spin off the unit can be taken, the sources said, cautioning no deal was certain. Credit Suisse in March announced an overhaul of the asset management unit amid the fallout from the Greensill debacle, bringing in former UBS executive Ulrich Koerner to lead the unit and separating it from international wealth management.

As Bloomberg reported in a piece published Friday, Horta-Osorio has a few possible strategies that he can embrace as he leads the turnaround of the bank. They include: a housecleaning that shrinks the Credit Suisse balance sheet and reduces capital allocated to the investment bank, selling parts of the business to deepen its focus on wealth management and rebuild capital (though that would probably be better served by selling the prime brokerage business, not the asset management arm), acquiescing to an acquirer (Barclays? Deutsche Bank?). Or simply merging with UBS.

Tyler Durden
Fri, 04/09/2021 – 15:20

via ZeroHedge News https://ift.tt/3dNVGjf Tyler Durden

Peter Schiff: Inflation Is A Painful Tax

Peter Schiff: Inflation Is A Painful Tax

Via SchiffGold.com,

We’re told inflation isn’t a problem. But a quick trip out to the grocery store or to fill up your car with gas tells you otherwise. Prices are going up. Peter Schiff recently appeared on Tucker Carlson’s show to talk about inflation. He said the price of everything is going up and the value of everything is going down.

It’s clear that prices are rising. Peter said it’s going to get even worse.

You have to remember that inflation really is nothing more than a tax. Now, when the government spends money, they need to get money. The public has to pay for it. Normally, the government would raise taxes, and then the taxpayers send money to the government, the government spends it.  But we just passed a $1.9 trillion stimulus bill. Nobody’s taxes got raised. But we don’t get all this government for free.

So, how is the government paying for this massive stimulus spending?

The Federal Reserve prints the money and then the government spends it into circulation. But when that happens, the value of all the money that’s already out there goes down and now the price of everything that you want to buy goes up. And that added price is basically the inflation tax.

The Federal Reserve is printing money at an unprecedented rate. We’ve had 11 straight months of historically high money creation. The money supply expanded at a record rate yet again in February.

Tucker pointed out that this seems intentional – that the government is trying to pay for all of the spending  – making it less costly by devaluing the dollar. Peter agreed.

Well certainly, as you have inflation, you reduce the real value of the debt.”

But Peter said the government has no plan to pay off the debt. And the real problem is the amount of money they are going to have to spend just to finance all their current commitments.

This is a massive amount of money printing. It’s unprecedented inflation because it’s the money supply that is being inflated. And as a result, everything costs more, because we’re not producing more. It’s actually the opposite. Americans are at home. They’re not producing goods and services. Yet, we’re creating more money to buy the goods and services that fewer people are producing. More money, fewer goods. Prices are just going to keep going up and it’s not going to stop.”

Tucker pointed out that this looks pretty crazy from an outsider’s perspective. Peter said he doesn’t know how it looks to an outsider.

But I think to everybody that lives in the United States, it’s not going to look pretty. And the real problem is the Fed. The Fed pretends that it’s transitory. But when they have to admit that it’s not transitory the inflation rate will be far too high for the Fed to do anything about it. Because if the Fed actually raises rates to fight inflation, they’ll create a much bigger financial crisis than 2008 and the US government will be forced into insolvency.”

Tyler Durden
Fri, 04/09/2021 – 15:05

via ZeroHedge News https://ift.tt/3d3I0l6 Tyler Durden