Current Affairs

Chinas sweeping antitrust clampdown

Posted by Pei Li, Julie Zhu

on Friday, 30 April 2021 8:23

China is preparing a substantial fine for Tencent Holdings (0700.HK) as part of its sweeping antitrust clampdown on the country’s internet giants, but it is likely to be less than the record $2.75 billion penalty imposed on Alibaba earlier this month, two people with direct knowledge of the matter said.

Tencent should expect a penalty of at least 10 billion yuan ($1.54 billion), significant enough for the State Administration of Market Regulation (SAMR) to make an example of it, both people said.

Tencent faces penalties for not properly reporting past acquisitions and investments for antitrust reviews, an offence with a fine capped at 500,000 yuan per case, and for anticompetitive practices in some of its businesses, with music streaming in particular focus, said the sources.

Neither SAMR nor Tencent immediately responded to Reuters’ requests for comment.

“The attitude from the regulator is that unlike Alibaba you are not the biggest target here, but it would be impossible not to penalise Tencent now that the campaign is in action,” said one of the people.

China has in recent months sought to curb the economic and social power of its once loosely regulated internet giants, in a clampdown backed by President Xi Jinping.

Tencent and Alibaba Group Holding Ltd (9988.HK) are China’s two biggest tech conglomerates, with market values of $776 billion and $642 billion, respectively.

Earlier this month, SAMR imposed its record fine on Alibaba after an investigation found the e-commerce firm had abused its dominant market position for several years.

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Monetizing Memes with Venture Capital

Posted by Trung T. Phan

on Friday, 30 April 2021 8:08

 

Turner Novak is monetizing memes with venture capital

If you’ve been anywhere near tech Twitter over the past year, you’ve seen a viral tweet from Turner Novak.

The 30-year-old investor pumps out investment memes and conjures up hysterical parodies:

Don’t let the jokes fool you, though

It’s a very deliberate approach with an end goal in mind.

“My thesis for focusing on memes… is that founders and other investors want to work with people they enjoy being around,” Novak tells The Hustle.

Earlier this week, Novak officially launched Banana Capital, a $9.999m early-stage VC fund backed by top names including:

  • General partners from Andreessen Horowitz
  • Co-founders of Coinbase and Flatiron Health
  • Sequoia Capital

Perhaps most importantly, the fund’s name is a 4D chess move to own the ? emoji.

Novak isn’t just a meme lord

He built his investing chops with stints at Afore Capital and Gelt VC. Novak also writes widely on consumer tech (e.g., Snap, Pinduoduo, TikTok) at his Substack.

Based in a nontraditional VC locale (Michigan), Novak credits Twitter for building his network.

For that reason, Banana Capital is focused on “internet-first” founders… most of whom just so happen to love memes.

(To find out more, read our full Q&A with Novak)

Sprott takes over Uranium Participation Corporation

Posted by Yahoo Finance

on Thursday, 29 April 2021 8:40

This is an important indicator of the markets recognition of nuclear power as a key to reducing carbon emissions, and as a foundational part of a “green” economy going forward. MoneyTalks guests like Peter Grandich gave us the heads up on the opportunity in uranium months ago. This decision by Sprott is institutional money jumping on board in a big way. ~ Ed

UPC is the world’s largest publicly traded investment vehicle providing investors an opportunity to gain exposure to the price of uranium, outside of a traditional mining company, through holdings of physical uranium in the form of uranium oxide in concentrates (“U3O8”) and uranium hexafluoride (“UF6”). At the end of March 2021, UPC reported holding 16,269,658 pounds U3O8 and 300,000 KgU as UF6, with a then market value of approximately C$665 million.

“Sprott Asset Management currently manages four physical commodity funds with approximately US$12 billion in assets under management,” said John Ciampaglia, CEO of Sprott Asset Management. “We believe our global brand, fund marketing experience, and client base of more than 200,000 investors will improve trading liquidity and grow UPC’s asset base during what we believe is the start of a bull market for physical uranium.”… Click for the complete article

Fed says Inflation is “Temporary”

Posted by Reuters

on Thursday, 29 April 2021 8:29

Oh really? We wonder, we really do. ~ Ed

The U.S. economy is going to temporarily see “a little higher” inflation this year as the recovery strengthens and supply constraints push up prices in some sectors, but the Federal Reserve is committed to limiting any overshoot, Fed Chair Jerome Powell said in an April 8 letter to Senator Rick Scott.

“We do not seek inflation that substantially exceeds 2 percent, nor do we seek inflation above 2 percent for a prolonged period,” Powell said in a five-page response to a March 24 letter in which the Florida Republican raised concerns about rising inflation and the U.S. central bank’s bond-buying program… Click for the complete article

Copper Nears All Time High

on Thursday, 29 April 2021 8:22

In February 2020 the kick-off theme for the World Outlook Financial Conference chosen by Michael Campbell was “The Coming Commodity Boom”. That decision and recommendation has paid off big time for our subscribers. ~ Ed

Copper topped $10,000 a metric ton for the first time since 2011, nearing the all-time high set that year as rebounding economies stoke demand and mines struggle to keep up.

Prices rose as much as 1.3% to $10,008 a ton on the London Metal Exchange, before slipping back to trade near unchanged. The metal hit a record $10,190 in February 2011.

Copper has been among the best performers in a month where metals ranging from aluminum to iron ore have surged to the highest in years. The rally is being fueled by stimulus measures, near-zero interest rates and signs that economies are recovering from the virus pandemic. A push toward cleaner energy sources is also seen boosting consumption of copper, used in everything from electric vehicles to solar power systems, further straining supplies.

“This is a remarkable run for copper in terms of magnitude and consistency,” said Tai Wong, head of metals derivatives trading at BMO Capital Markets. “The all-time high at $10,190 is just around corner and now practically a foregone conclusion.”

Investors have piled into copper… Click for complete article