Every morning when looking up Bloomberg news, you should be informed of the latest economic and financial developments taking place around the world. With Five Things You Need To Know To Start Your Day, you are now able to get the most important and relevant news stories in a concise and informative manner.
Credit Suisse Group AG, one of the world’s largest banking groups, recently avoided bankruptcy with a government-brokered takeover by UBS Group AG. According to Swiss National Bank Vice President Martin Schlegel, this was the best among available solutions to ensure financial stability and avoid a global financial crisis. In addition, European Central Bank Governing Council Member Robert Holzmann warned that another 50-basis-point hike in interest rates could be in order if the current financial disturbance is not addressed.
French skincare giant L’Oréal recently acquired Australian luxury cosmetics brand Aesop in a deal worth $2.53 billion. Natura & Co. will retain the majority ownership of the company but the takeover will help the beauty giant reduce its debt burden.
In order to ramp up higher oil prices, OPEC+ implemented an unexpected production cut that jolted markets, sparking concerns about inflation. This move was aimed at intimidating speculators who were betting on a decline in pricing and data for the week shows that it was successful. It is likely to have an effect on corporate earnings, as well as tech earnings, this season.
European stocks have begun to nudge up as traders assess the inflationary impacts of the production cut and BOE Chief Economist Huw Pill will be speaking in Geneva. Other expected data includes Eurozone PPI, German trade balance and Spanish unemployment. Be sure to take a look at the MLIV Pulse survey, addressing the turbulence in the financial sector and the potential outcomes this season.
Universa Investments, founded by Mark Spitznagel, is currently under the spotlight due to their claimed returns and how they are calculating these returns, which has caught the attention of investors, billionaires, and leaders of industries. Universa Investments calculate their return based on premia spent rather than return on assets, as a tactic to achieve outsized returns in individual months. However, this method raises questions about the accuracy of the reported returns and the capital bleed in less successful years. Investing in exotic markets requires due diligence and a clear understanding of how returns will be reported and taxed, as there is the potential to lose fortunes if those steps are not taken.
