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(Bloomberg) -- Online mattress retailer Casper Sleep Inc. is working with Morgan Stanley and Goldman Sachs Group Inc. on a U.S. initial public offering, according to people with knowledge of the matter.The New York-based company could go public as soon as this year or the first half of 2020, said the people, who asked not to be identified because the information is private.Casper, which sells and delivers mattresses directly to consumers, reached a $1.1 billion valuation this year in its most recent private funding round. Target Corp., New Enterprise Associates and Dani Reiss, the chief executive officer of Canada Goose Holdings Inc., are among its investors.The company could attain a higher valuation in an IPO, one of the people said.Representatives for Casper, Morgan Stanley and Goldman Sachs declined to comment.Despite poor performances by high-profile listings including Peloton Interactive Inc. and the collapse of WeWork’s IPO plans, many companies are still aiming to go public before end of the year.Casper, which has expanded its products to include bedding, pillows and bed frames, operates in the U.S., Canada, the U.K., Germany, Switzerland and Austria. CEO Philip Krim said in March that the company’s next big international market would be Asia.The company also plans to open hundreds of physical stores. Part of its motive for going public is to raise capital for that expansion, one of the people said.(Updates with Casper’s response in fifth paragraph)To contact the reporters on this story: Crystal Tse in New York at email@example.com;Alistair Barr in San Francisco at firstname.lastname@example.orgTo contact the editors responsible for this story: Liana Baker at email@example.com, ;Jillian Ward at firstname.lastname@example.org, Michael Hytha, Matthew MonksFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Let's dive into three tech stocks that we found using our Zacks Stock Screener that growth investors might want to consider buying during Q3 2019 earnings season...
(Bloomberg) -- Canada’s dollar is the best-performing major currency this year and the nation’s stocks are going strong. But now isn’t the time for investors to rest on their laurels. The upcoming federal election is the next big event to test the market’s resilience.With less than a week left to the Oct. 21 vote, Liberal Party Prime Minister Justin Trudeau is in a neck-and-neck race with Conservatives leader Andrew Scheer. While the most likely scenario is a government that doesn’t command an absolute majority in its own right, some strategists say that a minority administration led by Scheer could be better for the loonie in the near term than one under Trudeau.“Between a Liberal-led minority and a Conservative-led minority, we expect the first one to be more CAD-negative,” Francesco Pesole, a foreign-exchange strategist at ING Bank, said in an Oct. 17 report. “The balance of risks for the loonie appears tilted to the downside.”The loonie has been in the No. 1 spot among Group-of-10 currencies this year, rising almost 4% against the U.S. dollar amid a sound economy and a low unemployment rate. Canada’s benchmark equity index has rallied 15% in 2019, making it one of the top gainers among developed markets. It was little changed against the greenback Friday.A Conservative minority government would be better for market sentiment than a Liberal minority administration, according to Pesole. He said this is in part because it would likely exclude smaller parties that oppose more oil pipelines, a subject that has been a focus of political debate.A rebound in housing, solid economic growth and one of the strongest job markets in recent times has helped give Trudeau something positive to talk about during his campaign. While major central banks in other parts of the world have been cutting interest rates, the Bank of Canada has been reluctant to do so thus far -- strengthening the Canadian dollar’s position as one of the highest yielders among G-10 currencies.Michael Hsueh, a currency strategist at Deutsche Bank AG, says a Trudeau-led minority government could be negative for the Canadian dollar given the reduced capacity to pass legislation. It could also potentially hinder growth in oil, a key industry for Canada, one of the world’s largest energy exporters.The Oil FactorStewardship of the energy industry has become a central issue of the elections. The Conservative Party has portrayed itself as a champion of the sector and has promised to remove regulations Trudeau implemented. The Liberals, meanwhile, are trying to strike a balance between developing Alberta’s energy resources and making Canada a leader in combating climate change.From Binge to Bust: Canadian Oil Town Lines Up at the Food BankThe loonie, often seen as a petrocurrency, has benefited from the nation’s massive oil exports. Still, bringing more oil reserves to market has divided Canadians -- with two pipelines being scrapped on Trudeau’s watch.Foreign-exchange strategists are concerned that a Trudeau-led government, propped up by other left-leaning parties, could be an obstacle in passing legislation favorable to business leaders and the country’s energy sector.A Liberal minority government is “likely to push for more regulation and rules on capital inflows into Canada,” which could be negative for the Canadian dollar, Mark McCormick, global head of currency strategy at Toronto-based TD Securities, said in an email.Stock MarketWhile Canadian politics rarely play a significant role in the nation’s equity market, a minority government could be positive for stocks, according to Brian Belski, chief investment strategist at BMO Capital Markets.“Although on average the market has posted relatively strong performance post federal elections, there appears to be little to no performance preference around the outcome,” he said in a September report. “The only potentially meaningful outcome appears to be a minority government versus a majority government.”Since 1935, Canadian stocks have returned on average 12% in the 12 months after the election of a minority government, compared with 8% in the year following a majority victory, according to Belski’s research.For others, volatility is the name of the game. Stripping out the global rout in 2008, National Bank Financial’s Warren Lovely said that Canadian stocks had a “mixed/choppy” performance after a minority government was formed from 2004 to 2011.“In terms of capital markets, the formation of a minority government creates greater potential uncertainty – especially if a coalition government is the end result,” Credit Suisse’s equity analyst Andrew Kuske said in an Oct. 8 report.Still, election-related market moves might be short-lived this month with both the Bank of Canada and the Federal Reserve reporting their monetary policy decisions on Oct. 30. Futures traders are pricing in almost no probability of a rate cut at the BOC meeting, while a quarter point reduction from the Fed is seen as likely by the market. Canadian two-year yields on Wednesday climbed above their U.S. equivalents by the most since 2017 -- a good sign for loonie bulls.Trade deals will also have an impact on the Canadian dollar. The U.S. and China are still working to finalize their trade deal, which is likely to boost investors’ appetite for risk, a positive for the currency. And on Thursday, U.S. President Donald Trump’s economic adviser Larry Kudlow said on CNBC that he expects the U.S.-Mexico-Canada trade agreement to be approved in Congress before the American Thanksgiving holiday.(Adds loonie trading.)\--With assistance from Divya Balji and Kristine Owram.To contact the reporter on this story: Susanne Barton in New York at email@example.comTo contact the editors responsible for this story: Benjamin Purvis at firstname.lastname@example.org, Divya Balji, Rita NazarethFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
The British pound initially pulled back a bit during the week but then shot through the roof and slammed into the 1.30 level. Ultimately, this is a market that has possibly gotten ahead of itself as Parliament is yet to vote on the deal Boris Johnson struck.
(Bloomberg) -- Software companies fell on Friday, extending recent losses after results from Atlassian Corp. topped analyst forecasts yet failed to provide enough upside to assuage concerns over the group’s valuation.Atlassian shares dropped as much as 11% to their lowest level since May. The stock was on track for its third straight decline, as was Veeva Systems Inc., off 5.4%, and ServiceNow Inc., down 3.8%, which reports its own results next week. Coupa Software Inc. sank 8.4% in its fourth straight drop, a period over which it has shed more than 20% of its valuation. Twilio Inc. was down 4.5%. Alteryx Inc. was down 7.2% and Crowdstrike Holdings Inc. dropped 7.3%, heading for the eighth decline in the past nine sessions.A basket of high-multiple software stocks tracked by Goldman Sachs fell 5.7% in its fifth straight decline, hitting its lowest since March, while the Russell Midcap Technology Growth Index was down 2.2%.“When investors have lost conviction, it usually means the best strategy is to stay conservative until the coast is at least somewhat clear,” wrote Richard Davis, an analyst at Canaccord Genuity. “We are in that time in the cycle.”Davis has a buy rating on Atlassian, writing that it “fits the description of a safe harbor company.” However, he said the stock has a “high-ish valuation” and suggested that multiples could be hard to justify. “In this macro environment,” he wrote, “if anyone expected an over-sized guide up, they haven’t been paying attention.”Recent weakness in the sector included both Workday Inc. and Zoom Video Communications Inc. tumbling in the wake of their respective investor events, which underlined growth concerns.Atlassian’s results included a raised full-year revenue forecast, and Cowen wrote that this could ease broader concerns over the sector.This “was one of the more anticipated prints in software as a result of emerging macro concerns in the space and it being one of the first to report,” analyst J. Derrick Wood wrote. The “solid numbers & outlook, along with constructive commentary on stable demand conditions, should give investors greater comfort in the potential for stability in software spending.”To contact the reporter on this story: Ryan Vlastelica in New York at email@example.comTo contact the editors responsible for this story: Catherine Larkin at firstname.lastname@example.org, Jim SilverFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
The British pound has gone back and forth during the session on Friday, as traders await the results of Parliament voting on the deal that Boris Johnson returned from the European Union with. That being said, we are a bit overstretched going into the weekend.
British Prime Minister Boris Johnson and European Union leaders agreed a new deal for Britain to exit the bloc. The possible deal news was the main contributor behind the strengthening of the British Pound against the dollar by more than 6% over the week close to 1.30 levels at the peak of growth on Thursday.
(Bloomberg) -- A House hearing scheduled for Wednesday with Mark Zuckerberg as the sole witness will kick off the “next phase” in the battle between big tech companies and the U.S. government, according to Wedbush.“The drum-roll has started” for the Financial Services committee hearing, with Zuckerberg set to defend the Libra cryptocurrency effort, which still faces a “massive regulatory spotlight,” analyst Daniel Ives wrote in a note. The hearing is titled “An Examination of Facebook and Its Impact on the Financial Services and Housing Sectors.”“We fully expect politicians to use this forum as another major shot across the bow on broader antitrust concerns for FAANG names,” Ives said. He sees a regulatory and legal focus on Facebook’s WhatsApp and Instagram acquisitions, with “the convergence of Facebook’s messaging platforms likely a hot button issue.”Ives described Facebook’s Libra as a bid to “further penetrate its customer base with a financial currency that enables the company to become more entrenched in the purchasing cycle of its 2 billion-plus users.”Other tech companies are making similar efforts, he said, flagging Apple Inc.’s Apple Card with Goldman Sachs Group Inc. and an “enhanced” Apple Pay tool. On Tuesday, Goldman CEO David Solomon said the Apple credit card was the most successful card launch ever.Several payments companies left Facebook’s cryptocurrency project earlier this month. Analysts said the departures would likely delay the coin’s launch and shift Congress’s attention to other matters. That might give Zuckerberg some breathing room, they said.On Thursday, David Marcus, the Facebook executive leading Libra, said China’s progress toward a digital payments system with global reach could pose a threat to U.S. influence. Marcus had earlier this month said that payments companies exiting Libra was in a way “liberating.”Facebook’s shares declined as much as 1.4% on Friday.To contact the reporter on this story: Felice Maranz in New York at email@example.comTo contact the editors responsible for this story: Catherine Larkin at firstname.lastname@example.org, Debarati RoyFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Investor sentiment upbeat on banks' Q3 earnings, with the major players displaying top-line strength on the back of higher fee income and loan growth.
(Bloomberg) -- Walmart Inc. plans to offload the cost of a retirement plan for employees of its British subsidiary Asda, incurring a pretax charge to earnings of about $2.2 billion.Under terms of the deal, Rothesay Life Plc will take over managing pension liabilities for about 12,000 members going forward. The transaction will simplify “the business at a cost which is significantly below the expected future cost of funding internally,” the companies said in a statement.Offloading the pension costs at Asda could be a step in preparation for a sale or an initial public offering. The charge will be incurred at the completion of the buyout in late 2020 or early 2021.For Walmart, having a large employee retirement plan sitting on its balance sheet is a problem if it plans to divest the unit, according to James Biggs, a partner at Employee Benefits Collective LLP, a U.K. pension consulting firm.“Rothesay takes responsibility for paying benefits to employees. In essence, it shifts the liability,” Biggs said. “Letting these liabilities rumble on into the future brings risk and potential cost creep, and can be a millstone around the neck of an employer.”Buyer CertaintyAntony Barker, a managing director at the Pension Superfund, a consolidator of British pension plans, said that transferring the pensions will tidy up the company’s balance sheet and give any buyer certainty.“Anyone looking to acquire them knows they are not buying a black hole,” Barker said.Large pension liabilities have weighed on other British retailers, most notably department-store chain BHS. In 2017, retail magnate Philip Green agreed to pay as much as $450 million to compensate 19,000 former BHS workers after months of haggling with the country’s Pensions Regulator. BHS had a massive pension deficit when it failed in 2016, a year after Green sold the chain for a pound to a former race-car driver with no retail experience.Judith McKenna, Walmart’s international CEO and a former Asda executive, said in May that Walmart is “seriously considering” an eventual IPO for Asda. A month earlier, U.K. antitrust regulators blocked J Sainsbury Plc’s bid to buy Asda, saying it would bring higher prices and less choice to shoppers. British supermarket chains have been whipsawed by economic concerns related to Brexit and pressure from German discounters Aldi and Lidl, which continue to grab market share.Walmart shares were little changed, up 0.3% to $120.17 at 10:14 a.m. in New York on Friday. The stock had gained 29% this year through Thursday’s close, outpacing the S&P 500 Index.(Adds context and comment from pension consultants beginning in fourth paragraph)\--With assistance from Benjamin Robertson.To contact the reporters on this story: Matthew Boyle in New York at email@example.com;Anne Riley Moffat in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Crayton Harrison at email@example.com, Jonathan Roeder, Lisa WolfsonFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Walmart's Asda has agreed a 3.8 billion pounds ($4.9 billion) 'buy in' with Rothesay Life to secure the benefits for 12,300 members of one of its pension schemes, in a deal that simplifies its balance sheet ahead of a possible standalone listing. Walmart CFO Richard Mayfield said the company was delighted to be able to secure the pensions of its members with a leading, well financed insurer such as Rothesay Life. "This transaction is good news for members of the scheme, simplifies the Asda balance sheet and will transfer our pension liabilities at a competitive price," he said.
Investing.com - Goya Foods reportedly is in late-stage talks to sell a majority stake to The Carlyle Group (NASDAQ:CG) in a deal that would value the canned-foods giant at about $3.5 billion, The New York Post reported.
Investing.com - The U.S. dollar was lower against other currencies on Friday, while the euro was buoyed by hope that a Brexit deal will help mitigate risks of a recession in the bloc.
The Canadian dollar has settled down on Friday, after considerable gains on Thursday. The British pound is steady, ahead of a possibly historic vote over Brexit on Saturday. The Mexican peso continues to trade at a 10-week high against the greenback.
GBP/USD has seen an incredible surge higher over the last week or so. Where the pair goes from here largely depends on how UK parliament votes on the latest Brexit Deal.
3 percent – that’s the new IMF global growth forecast for 2019. It’s the lowest one since the Great Financial Crisis. Is the much talked about recession coming? And what about the just reached Brexit deal? Can they both make gold rally?
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