Header Ads

5 things to start your day

Good morning. A pass to travel in Europe despite the pandemic, a massive camera hack and more corporate earnings. Here's what's moving markets.

Covid Card

The European Union will propose a certificate that could ease travel for those who have taken EU-approved vaccines as well as others, like the Chinese and Russian shots, that have only received emergency national authorizations. The "EU Covid Card/digital green certificate" will comprise three documents that will specify if the holder has gotten a vaccine and which one; the results of a coronavirus test if taken; and details on whether they have recovered from a Covid-19 infection, according to a person familiar with the draft regulation. On Tuesday, European Council President Charles Michel accused the U.K. of blocking exports of Covid-19 vaccines -- prompting a vehement denial from London, as vaccine supplies become a key post-Brexit flashpoint.

They're Watching

An international hacker collective say they breached a massive trove of security-camera data collected by Silicon Valley startup Verkada, gaining access to live feeds of 150,000 surveillance cameras inside hospitals, companies, police departments, prisons and schools. Companies whose footage was exposed include carmaker Tesla and software provider Cloudflare. Hackers were also able to view video from inside women's health clinics, psychiatric hospitals and the offices of Verkada itself. Some of the cameras, including in hospitals, use facial-recognition technology to identify and categorize people captured on the footage. The hackers say they also have access to the full video archive of all Verkada customers.

Derailed

Insolvent supply chain finance firm Greensill Capital's talks to sell parts of its operating business to Apollo-backed Athene Holding were derailed, according to people with knowledge of the matter. This comes as banks including JPMorgan extended a lifeline to fintech firm Taulia, a key partner of the collapsed lender. Losing a crucial technology supplier makes Greensill a less attractive target, because its most-prized business was supply-chain financing it provided with Taulia, which now has the funding to serve clients on its own. Greensill filed for administration in the U.K. on Monday, capping a stunning collapse for the specialty finance firm. Apollo had emerged as the sole credible bidder for some of the company's assets, according to U.K. court filings.

Bad Blood

Citigroup is punishing investment firms that kept payments the bank accidentally sent to Revlon lenders by blocking them from certain new debt offerings led by the bank, according to people with knowledge of the matter. The bank is choosing to not invite these money managers, who hung on to over $500 million, to its new-issue debt deals, the people said, asking not to be identified discussing a private matter. Firms targeted include Brigade Capital Management, HPS Investment Partners and Symphony Asset Management. The move follows the surprise ruling by a federal judge that thwarted Citi's efforts to recover funds it sent by mistake to Revlon's lenders last year.

Coming Up…

European stock futures are pointing lower. Earnings are already out from Just Eat Takeaway, where the company sees further acceleration of order growth in 2021. Adidas not only releases earnings today, but is expected to lay out its medium-term strategy, with investors looking for details of how sales growth will be revived after recent share price underperformance against rivals Puma and Nike. The morning's other highlight is Zara owner Inditex, which analysts expect to report weak fourth-quarter performance amid store closures forced by the pandemic. In the U.K. earnings rush, look for insurer Legal & General and engineer Spirax-Sarco. Italian tire maker Pirelli and shoe maker Tod's are expected after European markets close, alongside French renewables firm Neoen.

What We've Been Reading

This is what's caught our eye over the past 24 hours. 

And finally, here's what Cormac Mullen is interested in this morning

The resurgent U.S. dollar is now well and truly free of its yearlong downtrend and its rebound is facing its first major test of technical resistance. The Bloomberg Dollar Spot Index rose to its highest since November on Monday, before a slight pullback, and is trading just below a key Fibonacci level and the closely-watched 200-day moving average. The greenback gauge is up over 2% so far this year, buoyed by the rise in U.S. yields and improving trends in the American economy. A break above the resistance levels would really worry traders behind the nearly $25 billion in net speculative short positions in the dollar that an aggregate of Commodity Futures Trading Commission data across a range of currencies show. That figure is down from over $30 billion in January suggesting the short covering has already begun. Much will depend on the short-term direction of Treasury yields, but just because the dollar is the world's reserve currency doesn't mean it's immune to a short squeeze.

Cormac Mullen is a cross-asset reporter and editor for Bloomberg News in Tokyo.

Like Bloomberg's Five Things? Subscribe for unlimited access to trusted, data-based journalism in 120 countries around the world and gain expert analysis from exclusive daily newsletters, The Bloomberg Open and The Bloomberg Close.

 

Before it's here, it's on the Bloomberg Terminal. Find out more about how the Terminal delivers information and analysis that financial professionals can't find anywhere else. Learn more.

 

No comments