SoftBank to Lend Employees Up to $20 Billion for Fund, WSJ Says

SoftBank Group Corp., the Japan-based multinational conglomerate, has plans to lend as high as $20 Billion to the employees. This will allow them a chance to purchase stakes for its 2nd venture capital after the success of its $100 Billion lending fund for investment in the technology-base start-ups.

This 2nd series of the Vision Fund has a set aim to raise around $108 Billion, as mentioned by SoftBank. Apart from its employees, the corporation also aims to collect funds from companies such as Microsoft Corp., Apple Inc., Sovereign Wealth Fund of Kazakhstan, and the Foxconn Technology Group. The plan also acquired support from financial institutions in Japan, with 7 identified as the signing memorandums for understanding the participation.

Masayoshi Son, the Chief Executive Officer and Founder might account for somewhere around half the investment pool for the employees. An externally connected spokeswoman for the company, Emily Claffey gave no response with regards to the queries of employees’ loan fund.

As of now, Son flaunts net worth that is somewhere around $16.9 Billion. This makes him the 2nd richest person in the country of Japan. SoftBank also mentioned earlier that the company is committing around $38 Billion capital fund for the investment project.

Cannabis stocks climb for the first time in three days with Aurora leading the pack

This Friday, the stocks of Cannabis surged for the first time in three sessions that were held. This sudden surging compensated the loss that had procured throughout the week, which resulted in a 5% gain as a whole.

The ETFMG Alternative Harvest gained 32 out of 38 constituents as a result experienced a 2% gain. The Horizons Marijuana Life Sciences gained 3.3% with ETF HMMJ, +2.30% as 46 out of 54 members experienced a profit. This week, both the ETFs have declined by about 7% as the benchmark shifted between heavy gains and losses as well.

The leader of the market Canopy Growth shares experienced CGC, +2.82% WEED, +2.31% increased by 3.2%. However, it remained constantly low by 14% throughout the week. The stocks went down immediately after a more than a billion Canadian-dollar loss was posted for the latest quarter. Also, the revenue that was estimated fell short.

Ryan Macdonell who is a GMP analyst said on Friday that Canopy has most probably lost its market for recreational cannabis used by the adults in Canada. The stock price of Canopy was slashed down to C$45 from C$65 by the analyst, Ryan Macdonell.

Stock-market investors rattled by bond market’s ‘warning shot’ — here’s what’s next

The U.S. bond market recently sent an exclusive warning & it was heard to by the declining stock market. On Wednesday, the yield for 10-year long U.S. Treasury briefly traded way below the 2-year Treasury note. This marked the inversion of yield curve towards negative. This particular phenomenon is seen as the reliable indicator for recession in the future.

Not just that, the yield for 10-year Treasury has actually traded way below the T-bill for the 3 months since the month of May. The inversion of this particular portion for the curve has been seen by the economists as something more than just the recession indicator.

The latest twists to the degrading economic data came with the intensifying trade war between U.S. and China. This new inversion doesn’t actually guarantee than there is an impending doom. Rather, it serves as the headline warning about things that have been depleting the economic line in the past few months, mentioned Joe Mallen, the Chief Investment Officer working with Helios Asset Management. This company manages around $16 Billion when it comes to combined assets for the advisers.

Mallen also mentioned that the higher authorities are now justifiably concerned about the impending recession to take over the country in the upcoming two years.

New Florida tax estimates point to ‘winded’ economy

New Florida state economists drew up fresh estimates on Wednesday which predicted that the state shall take in around $867 Million reduction in the revenue over a term of two years as compared to the previous anticipation.

Heading on to the critical year for election, the Florida legislators might have to secure their spending given the combination of slowed economy along with reverberations for financial decisions. This new forecast for tax estimation was actually drawn in on the very same day as the U.S stock market was tanked amid the worries that recession might take over pretty soon.

Amy Baker, the Office of Economic and Demographic Research’s Head of Legislature mentioned that her personal predictions aren’t far in terms of recession. She also warned that there are evident signs that this state economy shall go down slowly.

Baker also mentioned that, in her mind, she thinks this issue is winded. If you have been a part of any marathon for long, the last few miles make you feel winded. The same is applicable for the economy as well. It is moving towards its slow growth stage. The economists at New Florida also agreed to the fact that there will be a reduction of $416.1 Million for the estimated fiscal revenue for the year 2020-2021.

U.S. set to give Huawei another 90 days to buy from American suppliers – sources

It is expected that the United States Commerce Department would extend a short-term general license and give Huawei Technologies Inc. another 90 days which will allow the tech giant to purchase supplies from the US firms to help it provide service to its current customers, said sources having knowledge about the situation.

The department initially had allowed Huawei to buy a few American-manufactured goods in the month of May a while after placing the company on US trade ban list- a move which is aimed to minimize disturbance for its users, several of which use networks across rural America.

Extending an extension would refresh an agreement which would end on 19 August, thus continuing the ability of Huawei to maintain its existing telecom networks as well as offer software updates to its handsets.

The circumstance surrounding the extended license, which is a major bargaining tool for the US with regards to its trade war with China, stays fluid. In fact, the decision of continuing the Chinese company’s reprieve may change before the next week’s deadline, said sources.

President of China, Xi Jinping and Trump are both expected to conduct discussions about Huawei over a call ahead of the deadline, said one of the sources.

Huawei is yet to comment on the matter.

JP Morgan says new US tariffs will test China’s ability to prop up its economy

The new US tariff imposed on Chinese products may deal with another blowout to China, and it is not known as to how much Beijing could do more to boost its economy, said a JP Morgan economist on Friday.

Since the time the tariff battle began between Beijing and Washington around 12 months ago, the Chinese authorities continually have utilised both fiscal and monetary policies in order to confine the economic destruction brought by the increased US tariff. These measures have helped to a certain extent, as per chief economist Brice Kasman at JP Morgan.

President of the US, Donald Trump announced early August that starting 1 September, an extra 10 percent tariff would be imposed on $300bn Chinese goods. However, the Office of the US Trade Representative removed a few items from its targeted goods list later and postponed the application of the new tariffs on a few products until 15 December.

Nevertheless, several economists have told that the extra tariffs implied on the Chinese goods that are imported by US will affected the economy of China badly. Growth has slowed down already in the Asian economic giant, with Beijing informing weakest gross domestic rate expansion in last 27 years, of 6.2 percent in Q2 of 2019.

Tyson Foods recalls chicken patties possibly contaminated with ‘foreign matter’

The US Department of Agriculture recently released a statement about the incident of Tyson Foods recalling the frozen chicken patty products stating that the company has apprehensions about the patties being contaminated with some foreign material.

The recall incident affects around 40,000 pounds of fully-cooked frozen chicken patties from Weaver brand that were produced on the 31st of January. The statement from USDA’s Food Safety and Inspection Service stated that the patties were sold in resealable bags of 26-ounce with the expiry date of 31st January 2020.

The Agency said that the bags that were targeted in the recall incident by Tyson Foods had a print of the number “P-13456” on the back of the resealable bag. No additional detail was provided by the Food Safety and Inspection Service of the US other than stating that the bag containing chicken patties was infested by some foreign material.

Also, the contamination of the bag was reported to the FSIS only after the consumers started to complain. The FSIS has strictly stated that whosoever has purchased the chicken patties affected by the recall should immediately toss it away or simply return the item to the retailer that they bought it from.

Central banks haven’t shifted direction this abruptly in a decade

In the past six months, more than one-third of the central banks have made huge shifting in their policy, stated by Fitch. The changes that have taken in the central bank’s monetary direction within six months that has shocked everyone for the very reason that no such dramatic shifting has occurred even in an entire decade lest a few months.

Fitch ratings examined the monetary directions and not the magnitude and concluded that the policies have been loosened up a lot. Fitch further continues to state that the central banks are involved from the United States to Turkey.

However, Norway and the Czech Republic have stayed out of the loop and rather are traveling in a whole new different trajectory. The central banks here have increased the interest rates in an incorrigible manner.

Fitch said that in December about 52% of the central banks were in monetary policy tightening situation while only 3% had touched the easing phase. The widespread shift in the policy of the central banks is an outcome of the deterioration in the prospects of global growth, a slump in global trade and manufacturing, and uncertainty of the trade policy in the future.