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Financial Services and Banking

Reuters | Equities.com |

BlackRock Inc is adding bitcoin futures as an eligible investment to two funds, a company filing showed, in a move to bring the world of cryptocurrency to its clients.

The world’s largest asset manager said it could use bitcoin derivatives for its funds BlackRock Strategic Income Opportunities and BlackRock Global Allocation Fund Inc.


Kimberly Redmond | Equities.com |

BlackRock, the world’s largest money management firm, reported a stronger-than-expected fourth quarter, closing out 2020 with double-digit increases in both earnings and revenue.

According to its fourth quarter earnings report released Thursday, the investment company posted a net profit of $1.5 billion, up from $1.3 billion, and revenue of $4.5 billion, an increase of 13%, during the final three months of 2020.

On a per share basis, fourth qu...


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Brazilian asset manager Patria Investments Ltd, which is backed by Blackstone Group Inc, is likely to reach a valuation of between $1 billion and $1.6 billion in its planned initial public offering on Nasdaq, Banco BTG Pactual SA said in a note to clients.

Patria , which has $13 billion under management in private equity, real estate, credit and infrastructure funds, filed for an IPO with the Securities and Exchange Commission on Dec. 30.

The document does not disclose the offering size or potential sellers, but Patria said it plans to raise money to invest in its funds and expand its operations through buying asset managers, portfolios and distribution channels.


Reuters | Equities.com |

The New York Stock Exchange said on Wednesday it will delist three Chinese telecom companies, confirming its latest reversal on the matter a day after U.S. Treasury Secretary Steve Mnuchin told the NYSE chief he disagreed with an earlier decision to reverse the delistings.

The latest move, which is effective Jan. 11, marks the third time in less than a week the Big Board has ruled on the matter. The flip-flopping highlights the confusion over which firms were included in an executive order issued by President Donald Trump in November barring U.S. persons from investing in publicly traded companies Washington deems to be tied to the Chinese military.


Reuters | Equities.com |

The U.S. Securities and Exchange Commission (SEC) on Wednesday asked for public comment on broker-dealer custody of digital assets and how the broker-dealers should be regulated when holding these products and recommending them to investors, the agency said in a statement.

The move, which the agency says will help inform future regulatory action in this market, comes after a July 2019 notice of guidance the SEC issued mandating firms comply with the customer protection rule, which requires broker-dealers to safeguard both the cash and securities of their customers. It does not currently address digital assets.


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JPMorgan Chase & Co’s expenses in 2021 will likely top $67 billion, slightly more than analysts’ estimates, because of company investments CEO Jamie Dimon said on Tuesday at an investor conference.

Dimon, speaking in a webcast video interview by Goldman Sachs banking analyst Richard Ramsden, also said he would like to buy asset management businesses and financial technology companies.

Addressing the camera, Dimon said, “Asset management: My line is open.”


Reuters | Equities.com |

Videogame retailer GameStop Corp missed Wall Street estimates for quarterly revenue on Tuesday as pandemic-led store closures and intense competition from digital-game sellers hit sales.

The company’s shares were down 4.2% at $16.13 in extended trading, as it said comparable store sales fell 24.6% during the quarter.

A rise in the popularity of videogame streaming and surging digital downloads of console games have hit GameStop’s sales growth, with coronavirus-driven curbs heaping more pressure on the videogame retailer.


Reuters | Equities.com |

The U.S. House of Representatives passed a law to kick Chinese companies off U.S. stock exchanges if they do not fully comply with the country’s auditing rules, giving President Donald Trump one more tool to threaten Beijing with before leaving office.

The measure passed the House by unanimous voice vote, after passing the Senate unanimously in May, sending it to Trump, who the White House said is expected to sign it into law.

“The Holding Foreign Companies Accountable Act” bars securities of foreign companies from being listed on any U.S. exchange if they have failed to comply with the U.S. Public Accounting Oversight Board’s audits for three years in a row.


Reuters | Equities.com |

Nasdaq Inc on Tuesday filed a proposal with the U.S. Securities and Exchange Commission that, if approved, will require all Nasdaq-listed companies to adopt new rules related to board diversity and disclosure or potentially face delisting.

The new rules will require most Nasdaq-listed companies to have, or publicly explain why they do not have, at least two diverse directors, including one who self-identifies as female and one who self-identifies as either an underrepresented minority or LGBTQ+.

All companies will be expected to have one diverse director within two years of the SEC’s approval of the new rule.


Reuters | Equities.com |

BlackRock, the world’s largest asset manager, has upgraded U.S. equities to “overweight”, turning bullish on quality large cap technology companies as well as small cap firms that tend to perform well during a cyclical upswing.

The asset manager said it prefers the United States as it “boasts” a higher share of “quality” companies with strong balance sheets and free cash flow generation in the high-flying tech and healthcare sectors.

The resurgence in virus cases in Europe and the United States could lead to further outperformance of large cap tech and healthcare companies, it added.