Crude oil prices gain, dollar firmer versus Japanese yen
TOKYO, April 6, (AP): Asian shares were mixed Tuesday after a Wall Street rally that reflected some optimism about the economy recovering from the pandemic.
Japan’s benchmark Nikkei 225 lost early gains and fell 1.3% to finish at 29,696.63. Australia’s S&P/ ASX 200 was up 0.8% at 6,885.90. South Korea’s Kospi edged up 0.2% to 3,126.72. The Shanghai Composite inched up less than 0.1% to 3,486.22. Hong Kong trading was closed for Easter.
Yoshimasa Maruyama, chief market economist at SMBC Nikko, noted a gradual recovery in the Japanese economy had been reflected in the recent “tankan” Bank of Japan survey, which was released last week. He said a rebound was marked in electronics because of households consuming electronics goods, as the pandemic had squelched people’s spending on services.
Household spending data released Tuesday showed a 6.6% decline in February, with dining, clothing, transport and entertainment falling sharply.
Deep worries remain over the pandemic, with medical experts warning Japan to brace for a “fourth wave” of surging infections and deaths related to COVID-19, as the nation has fallen behind the rest of the world in testing and vaccinations.
Similar outbreaks have flared in other countries, including India and Thailand.
France’s CAC 40 climbed 0.8% to 6,153.49, while Germany’s DAX surged 1.1% to 15,276.45. Britain’s FTSE 100 rose 1.2% to 6,818.49. U.S. shares were set to drift lower, with Dow futures slipping 0.1% to 33,405. S&P 500 futures fell 0.2% to 4,061.12.
Investors appeared to take in stride an announcement by Swiss bank Credit Suisse on Tuesday that it expects a one-time charge of 4.4 billion Swiss francs ($4.7 billion) related to a previously announced default of a US hedge fund on margin calls.
Two top executives are leaving the Zurich-based bank and it has suspended a share buyback program and reduced its dividend in the wake of the default.
Credit Suisse didn’t identify the hedge fund or the other banks affected, or give other details of what happened. News reports identified the hedge fund as New York-based Archegos Capital Management, whose default also has ensnared Japan’s Nomura.
In energy trading, benchmark US crude added 99 cents to $59.64 a barrel in electronic trading on the New York Mercantile Exchange. It gave up $2.80 to $58.65 per barrel on Monday. Brent crude, the international standard, rose 93 cents to $63.08 a barrel.
In currency trading, the US dollar rose to 110.38 Japanese yen from 110.19 yen. The euro cost $1.1816, up from $1.1813.
On Wall Street, the S&P 500 rose 1.4% to 4,077.91 on Monday, another record high. The Dow Jones Industrial Average rose 379 points, or 1.2%, to 33,527.19 and the Nasdaq was 1.6% higher, at 13,705.59.
The gains came after the U.S. government reported that employers went on a hiring spree in March, adding 916,000 jobs, the most since August.
Traders had a delayed reaction to the encouraging jobs report, which was released on Friday when stock trading was closed. Investors were further encouraged by a report Monday showing that the services sector recorded record growth in March as orders, hiring and prices surged.
Both employment and the services industry have been lagging other areas of the economy throughout the recovery. Analysts have said that both need to show signs of growth in order for the recovery to remain on track. In the US, the strong rollout of vaccinations is making an eventual return to normal for many people seem clearer and closer.
“The jobs report underscored the rebound in the labor market,” said Quincy Krosby, chief market strategist at Prudential Financial. “The only thing that can stymie this rebound, this recovery, will be that COVID-19 launches another wave.”
The gains were broad Monday, with nearly every sector rising. Companies that stand to benefit from a broader reopening of the economy and economic growth also did well. Norwegian Cruise Line jumped 7.2% for the biggest gain in the S&P 500 as it seeks permission to restart cruises out of US ports in July with a vaccination requirement for passengers and crew members. Rival Carnival rose 4.8% and Royal Caribbean gained 3.5%.
CHICAGO, April 6, (AP): The company that owns the Chicago Tribune and other major U.S. newspapers said Monday that it would discuss a $679 million bid from hotel mogul Stewart Bainum and Wyoming billionaire Hansjörg Wyss that is higher than the $634 million offer from hedge fund Alden Global.
The board’s special committee said in a prepared statement that its decision lets Tribune “engage in discussions and negotiations with, and provide diligence information to Newslight,” which is Bainum and Wyss’ group. But for now it continues to recommend that shareholders choose Alden’s offer.
Tribune Publishing Co. said it got a non-binding proposal from Newslight on Thursday, an offer of $18.50 per share that was fully financed by equity from Bainum and Wyss.
The Newslight offer emerged after pushback from journalists at many of Tribune’s paper against the Alden deal. Alden, one of the country’s largest newspaper publishers, has a reputation for cutting costs and jobs in an industry already hollowed out by newsroom layoffs.
Alden currently owns nearly onethird of Tribune’s shares.
A representative for Alden declined to comment Monday.
Bainum had previously sought to buy the Baltimore Sun as part of the Alden deal, but negotiations stalled.
BERNE, April 6, (Agencies): In 2020, Xlife Sciences AG (XLS) significantly increased its profit to 21.2 million Swiss francs compared to the previous year (1.03 million). The increase is based on the transaction and the capital appreciation of the portfolio companies Velabs Therapeutics and Araxa Biosciences. For the current year, the management expects again a significant increase in profits. For 2021, two exits and an IPO are planned for 2022.
Xlife Sciences AG looks back on a very successful 2020. With a lean cost structure of approximately 3.2 million Swiss Francs (2020: 1.5 million) as a result of the transaction and capital appreciation of Velabs and Araxa with a net profit of 21.2 million Swiss Francs.