(Bloomberg) — China’s government is expected to price a potential $6 billion bond sale as early as Wednesday, ahead of possible volatility from U.S. elections next month.

The Ministry of Finance is arranging investor calls for 144a and Regulation S senior bonds Tuesday, according to people familiar with the matter who aren’t authorized to speak publicly. The ministry is seeking to raise about $6 billion via multi-tranche notes that will likely include three-year, five-year, 10-year and 30-year maturities, Bloomberg reported last week.

Officials at the ministry weren’t immediately available to comment.

The planned bond sale follows the ministry’s jumbo global debt offerings in two currencies in November, when it sold $6 billion of dollar bonds and 4 billion euro notes. The former drew bumper demand with orders at more than triple the targeted size.



chart, treemap chart: Scarce Supply


© Bloomberg
Scarce Supply

China’s fresh sovereign debt sale this week comes as uncertainty ahead of the U.S. elections in November is beginning to weigh on investor sentiment with some analysts anticipating a pick-up in volatility.

Loading...

Load Error

“By moving forward the USD bond auction to October, MOF will avert risks of facing less receptive market conditions and increased volatility due to the U.S. elections,” said Chang Wei Liang, a macro strategist at DBS Bank Ltd. in Singapore. With the Fed keeping policy rates near zero and yields hovering near record lows, China should see a significantly lower cost of funding across the curve compared to 2019, he added.

China’s Ministry of Finance hired 13 financial institutions for the sale that includes four Chinese firms, according to people familiar with the matter.

(Updates with chart after fourth paragraph, analyst comment in sixth paragraph)

For more articles like this, please visit us at bloomberg.com

©2020 Bloomberg L.P.

Continue Reading

Bitcoin weekly price chart

Bitcoin (BTC) has crossed into bullish territory with the biggest weekly gain in 2.5 months.

  • The top cryptocurrency by market value climbed nearly 6.6% in the seven days to Oct. 11, capping its biggest single-week percentage rise since the last week of July.
  • The flipping of the stiff resistance of $11,200 (Sept. 18) into support is bullish, according to Stack Funds research analyst Lennard Neo.
  • So far, however, the follow-through to the breakout has been poor: The cryptocurrency is currently trading in the red near $11,250, having printed highs near $11,500 over the weekend.
  • However, the pullback may be short-lived, miner outflows suggest.
  • Last week, bitcoin miners sold more than they generated and ran down inventory by around 1,000 BTC, according to data source Bytetree.com.
  • The miners’ rolling inventory (MRI) figure, which tracks the changes in how much bitcoin miners are holding, held well above 100% last week; the five- and 12-week MRIs are also above 100%.
  • Miners liquidate their holdings almost on a daily basis to cover operational costs but will offer more when they feel the market has the strength to absorb the additional coins without harming price.
  • As such, the increased miner outflow is sign of strength in the market, according to Charlie Morris, chief investment officer at ByteTree Asset Management.
  • Additionally, payment company Square’s recent disclosure of major bitcoin investments has given market players a fresh shot of confidence, Philip Gradwell, chief economist at the blockchain analysis firm Chainalysis, told CoinDesk.
  • The major portion of the last week’s 6.6% rise happened after Square announced its bitcoin investment on Thursday.
  • While the path of least resistance for bitcoin appears to be on the higher side, a move to the next major resistance at $12,000 may remain elusive if the resurgence of the coronavirus cases across Europe, tanks

(Bloomberg) — Investment in natural gas projects across the Middle East and North Africa will rise, even as the coronavirus pandemic damps demand for the fuel, according to Arab Petroleum Investments Corp.



a close up of a light pole: Iranian Petrochemicals Production at Pars Special Economic Energy Zone


© Bloomberg
Iranian Petrochemicals Production at Pars Special Economic Energy Zone

Gas projects planned or under development in the region will require around $211 billion in investment between 2020 and 2024, the multilateral lender said Monday in a statement. In its previous investment outlook, Apicorp estimated that spending would total $185 billion between 2019 and 2023.

Expansion of output in Qatar, the biggest exporter of liquefied natural gas, will account for $22 billion of planned investment, Saudi Arabia-based Apicorp said.

Middle Eastern states are lining up new gas projects while cutting oil-related investments, though the pandemic has battered prices for both fossil fuels. This is partly because governments are promoting the use of gas to produce electricity instead of crude, a more polluting alternative.

Video: Generac CEO on acquiring Enbala: ‘the nation’s electric grid is changing’ (CNBC)

Generac CEO on acquiring Enbala: ‘the nation’s electric grid is changing’

UP NEXT

UP NEXT

The battle to secure LNG buyers will become “fiercer” over the next two or three years, and some producers may opt to consume more gas at home if global prices for LNG remain low, Apicorp’s Chief Economist, Leila Benali, said on Bloomberg TV.

“The key question is how you monetize the gas — whether you export it or consume it domestically,” Benali said. “A player should go where it can get the most monetization for the fuel that it’s producing.”

State-run companies and entities account for as much as 92% of investments in the region’s gas projects, according to Apicorp research.

(Updates with economist comments in fifth and sixth paragraphs.)

For more articles like this,

It’s hard to justify Workhorse’s (WKHS) current ~$3 billion valuation, considering that the Street expects the company to make less than $150 million in revenues next fiscal year. The major reason why the stock trades so high is due to the fact that the company might win some portion of USPS’s $6.3 billion contract to deliver its EV trucks to the country’s biggest postal service. Other than that, we don’t see any other reason to justify Workhorse’s recent share price appreciation. In addition, the lack of capacity to manufacture trucks at scale on its own is likely going to hurt the company’s margins even if it wins the contract. Considering this, we believe that Workhorse is overvalued.

Lots of Red Flags

By being a pioneer of the EV business, Workhorse worked on various electrification projects with General Motors (GM) and Mercedes for more than a decade and only later decided to sell its own EV vehicles under its brand name. Currently, the company has slightly more than 100 employees and it’s on track to deliver up to 400 C-Series EV trucks by the end of 2020.

Earlier this year, Workhorse benefited from the injection of liquidity to the markets by the Fed, as stocks managed to quickly recover from their March lows and reached new all-time highs shortly thereafter. By being an EV company, Workhorse’s stock followed the upside trend of other stocks like Tesla (TSLA), Nikola (NKLA), and NIO (NIO) and quickly appreciated and reached its own all-time high. In addition, the company was able to keep its momentum by reaching the final stage of the bidding process for USPS’s $6.3 billion contract to manufacture vans for the postal service.

While Workhorse’s growth prospects look good, its financials are not as impressive as some might think. In Q2, Workhorse’s

FILE PHOTO: Calin Rovinescu, CEO of Air Canada speaks during a panel discussion on Cyber Security at the 2016 International Air Transport Association (IATA) Annual General Meeting (AGM) and World Air Transport Summit in Dublin, Ireland June 3, 2016. REUTERS/Clodagh Kilcoyne/File Photo

(Reuters) – Air Canada AC.TO has slashed its price to buy Canadian tour operator Transat A.T. Inc TRZ.TO, with the deal now worth about C$188.7 million ($143.86 million), down from C$720 million, as COVID-19 weighs on travel demand, the companies said in a statement on Saturday.

The country’s largest carrier had secured Transat shareholders’ approval for the deal last year with an C$18.00 a share bid, to bolster its then thriving leisure business.

But with the pandemic grounding flights globally, Air Canada faced shareholder pressure to renegotiate the deal which is still pending approval from European and Canadian regulators, Reuters reported in May.

Montreal-based Air Canada, like many of its global peers, has slashed flights, suspended financial forecasts and sought government aid as the industry deals with its worst slump.

Companies have been cancelling deals amid COVID-19 uncertainty, with aircraft parts suppliers Hexcel Corp HXL.N and Woodward Inc WWD.O abandoning their planned $6.4 billion all-stock merger in April.

Under revised terms of the deal, Air Canada said it will acquire all shares of Transat for C$5 per share, representing a premium of about 30.5% to Transat’s last close on Friday.

“Air Canada intends to complete its acquisition of Transat, at a reduced price and on modified terms,” said Calin Rovinescu, the carrier’s chief executive officer, in a statement.

“Consummating the initial deal at $18.00 was not an option that was viable given the full set of circumstances the Corporation is facing,” Jean-Yves Leblanc, chair of the special committee of the board of Transat said in a statement.