Connect with us

News

SoftBank liquidates most of portfolio at ‘Nasdaq whale’ trading unit

Published

on

SoftBank liquidates most of portfolio at ‘Nasdaq whale’ trading unit

SoftBank has liquidated nearly the entire positions in its abortive inside hedge fund SB Northstar after racking up between $6bn and $7bn in losses within the unit behind the infamous “Nasdaq whale” trades.

The writing has been on the wall for the Japanese know-how conglomerate’s buccaneering buying and selling unit since November, when SoftBank’s founder Masayoshi Son advised traders “the corporate referred to as SB Northstar . . . is about to return to an finish”.

Akshay Naheta, the previous Deutsche Financial institution dealer based mostly in Abu Dhabi who ran the unit, left SoftBank on Thursday, in response to an individual aware of the matter. The 40-year-old is understood for executing advanced spinoff transactions and earned notoriety for spearheading SoftBank’s controversial guess on the shares of fraudulent funds firm Wirecard.

Regulatory filings present that SB Administration — Northstar’s funding supervisor — held just a little over $1bn in US-listed shares on the finish of 2021, down from greater than $17bn one 12 months earlier. The majority of its remaining positions have been in particular function acquisition firms, together with autos sponsored by its personal Imaginative and prescient Fund, SoftBank shareholder Elliott Administration and Imaginative and prescient Fund investor Mubadala.

The winding down of Northstar comes as SoftBank seems to gradual investments throughout the group because it seeks to lift money amid falling tech shares and a regulatory crackdown in China.

Advertisement

An individual aware of its portfolio mentioned that the majority of its European investments have been liquidated across the similar time, together with a $5bn guess on Swiss drugmaker Roche that had been worthwhile. The particular person added that there have been lower than a handful of positions left, which had been transferred to SoftBank Group.

“I don’t suppose there’s a motive for them to dump anything instantly, as a result of there are different issues that they will promote which might be extra liquid,” he mentioned, noting {that a} latest rebound in SoftBank’s Chinese language know-how shares had eased stress on the group to lift money.

In its 2021 annual outcomes presentation final month, SoftBank disclosed that Northstar had misplaced $4.6bn over the course of its transient existence, primarily due to disastrous spinoff bets. One particular person aware of its buying and selling exercise mentioned this may seemingly climb to $6bn following the liquidation, whereas one other pegged it at near $7bn.

SoftBank mentioned: “As Mr Son defined throughout SoftBank’s earnings presentation final November, SB Northstar’s actions and its portfolio have been considerably decreased.”

SoftBank launched Northstar in August 2020 with preliminary capital of $555mn — a 3rd of this coming from Son himself. That disguised the unit’s far bigger firepower, obtained via loans of money and publicly traded securities from SoftBank’s huge stability sheet.

Advertisement

The speedy rise and fall of Northstar has added to longstanding company governance issues at SoftBank over the corporate’s potential to put sufficient checks on its billionaire founder Son.

Son holds a 3rd of the unit personally and was the driving pressure behind its outsized spinoff bets on US know-how shares that shocked the market in 2020. In September of that 12 months, the Monetary Instances unmasked SoftBank because the “Nasdaq whale” that had purchased billions of {dollars}’ price of US fairness derivatives, which different merchants blamed for exacerbating large swings within the costs of know-how shares.

Son disclosed final 12 months that his holding in Northstar had personally value him about $1.5bn, a determine that can have elevated given the additional losses incurred unwinding its portfolio.

One of many folks aware of Northstar mentioned it was unclear when the 64-year outdated SoftBank founder would cowl these private losses.

“When is SoftBank going to gather the cash? It’s an IOU,” he mentioned.

Advertisement

Northstar’s remaining positions embrace British retailer THG and Norwegian e-learning platform Kahoot, which each have SoftBank government Andreas Hansson on their boards. Hansson is because of depart the group on the finish of April, nevertheless, in response to folks aware of the matter.

THG’s share worth is down 85 per cent since SoftBank bought $730mn of its shares final Could. The previously hyped British on-line retailer’s inventory worth slide has became one of many London inventory market’s highest-profile fiascos in years. The collapse in worth means SoftBank is unlikely to train an possibility to take a position $1.6bn in THG’s Ingenuity subsidiary.

When Son revealed the staggering degree of private losses accrued via Northstar late final 12 months, he admitted making bets on himself was “powerful”, however added that he remained undeterred, with the corporate revealing his investments in SoftBank’s Latin American funds.

“I’m going to take danger once more,” Son mentioned on the time.

Advertisement

News

Trump's border czar says immigration raids will begin next week, including in Chicago

Published

on

Trump's border czar says immigration raids will begin next week, including in Chicago

Incoming White House “border czar” Tom Homan speaks during Turning Point’s annual AmericaFest 2024 in Phoenix on Dec. 22.

Jos Edelson/AFP via Getty Images


hide caption

toggle caption

Advertisement

Jos Edelson/AFP via Getty Images

Incoming “border czar” Tom Homan said large-scale raids as part of President-elect Trump’s crackdown on illegal immigration are set to begin as soon as Tuesday.

In an interview with Fox News on Friday night, Homan did not offer further details, but he did confirm that Chicago will be one of the cities targeted.

“On Tuesday, ICE is finally going to go out and do their job. We’re going to take the handcuffs off ICE,” he said, referring to Immigration and Customs Enforcement (ICE).

Advertisement

Homan, a former acting head of ICE, added that immigration agents will focus on the “worst first, public safety threats first, but no one is off the table. If they’re in the country illegally, they got a problem.”

The anticipated raids in Chicago were first reported by The Wall Street Journal. It comes after Homan visited the city in December and threatened to prosecute the city’s mayor if he refused to cooperate.

On Saturday, Homan told The Washington Post that the incoming administration was reconsidering launching raids in Chicago because details had leaked in the media, but had yet to make a final decision.

Chicago is one of the hundreds of sanctuary cities and counties in the U.S., which typically prohibit local resources from supporting federal immigration enforcement.

The prospect of raids in Chicago echoes Homan’s past remarks that he will not allow sanctuary jurisdictions to hinder the incoming administration’s crackdown on illegal immigration.

Advertisement

On Saturday, Beatriz Ponce de León, Chicago’s deputy mayor for immigrant, migrant and refugee rights, said the news that immigration raids could start in Chicago on Tuesday “wasn’t a surprise,” but that “hearing confirmation made it more real, more concrete.”

She said the city is prepared. In addition to community agencies holding “know your rights” events all over, she said Chicago leaders have met with city departments and sister agencies, such as the police and public school district, to detail existing city policies.

An estimated 11 million immigrants live in the U.S. without legal status.

Both Homan and Trump have vowed to carry out the largest deportation operation in U.S. history. But the plan is expected to face legal and logistical hurdles, including where to house millions of people once they are detained.

In Chicago, community organizers and elected officials scramble to encourage residents to not panic

On the city’s Southwest Side, Any Huamani, a community organizer with the Brighton Park Neighborhood Council, was fielding requests for Know Your Rights Trainings and leading a rapid response team via private group chat. Team members are ready to be dispatched in case ICE agents arrive in her community.

Advertisement

“Obviously each scenario is different,” Huamani said. “If they’re there to detain someone, rapid response teams respond in a different way. We have to yell out ‘These are your rights. You know, who can we call? Give us a phone number.’ And we’re also trying to record … ICE agents, if there’s an ICE truck or if it’s an unrecognizable truck.”

Meanwhile, 20 requests for trainings had come in.

The biggest fear among immigrants who don’t have a legal status in the U.S., Huamani said, is leaving their children behind.

During Trump’s first administration, his “zero tolerance” policy separated more than 5,000 children from parents who crossed the border, without systems to track and reunite families. Some also fear being detained or held in cities or states unfamiliar to them. Huamani has been advising people at risk of being detained by ICE to memorize at least three phone numbers so that they can be located if taken into ICE custody.

Organizers are worried that ICE agents could target the city’s Southwest Side and execute workplace raids in nearby suburbs, where there are also large concentrations of immigrants without legal status.

Advertisement

Garien Gatewood, Chicago’s deputy mayor of community safety, said the police department has been working under a welcoming city ordinance for 40 years, which stipulates that immigration enforcement is up to the federal government.

Chicago’s police department does not document immigration status, nor share information with federal immigration authorities, said spokesman Don Terry in a statement. But he added that police “will not intervene or interfere with any other government agencies performing their duties.”

“From the top down, everybody at CPD understands the roles that they play,” he said. “This is not the first time that they’ve had interactions with federal agents acting about immigration status.”

Illinois Gov. J.B. Pritzker’s office did not provide a response to news that immigration raids were going to start in Chicago next week. The office provided a transcript of the governor’s statement at a Dec. 11 press conference where he said he “believes it is his obligation to protect” immigrants without legal status who have not committed violent crimes.

WBEZ has more on how Chicago is preparing for the incoming Trump administration.

Advertisement
Continue Reading

News

Thousands Protest Trump’s Return to White House Days Before His Inauguration

Published

on

Thousands Protest Trump’s Return to White House Days Before His Inauguration

Some climbed into buses in the wee hours of the morning. Others boarded planes from across the country or drove bleary-eyed through the night. No matter how they got to Washington on Saturday, they shared a common goal: to protest against President-elect Donald J. Trump.

Just two days before Mr. Trump’s inauguration, thousands of people attended the People’s March across Washington. Despite the damp and chilly weather on Saturday, demonstrators came out to rally against Mr. Trump’s hard-right plans for the country and show support for causes like civil rights, racial justice, immigration and gun violence prevention.

“I am angry and frustrated,” said Jillian Wheat, who came to the march from Columbus, Ohio, with her 14-year-old daughter, Emma. “I’m worried that he is going to dismantle our democracy.”

It was a sequel of sort to the Women’s March in 2017, right after Mr. Trump was sworn in for his first term, a protest that focused on women’s reproductive rights. But the march was rebranded and expanded to include more people and a wider range of issues. Various sponsors, including the Sierra Club and Time to Act, a group against authoritarianism, backed the event on Saturday.

With signs that called Mr. Trump a felon, an oligarch and a danger to democracy — one read, “such a disaster that even grandmoms have to take to the streets to resist” — protesters yelled chants such as, “Stand up! Fight back!” and “No justice, no peace, no Trump,” at times injecting an expletive into the chant.

Advertisement

Many, if not most, attendees said they were nervous that Mr. Trump would try to roll back more rights they valued than he did in his first administration, during which he nominated Supreme Court justices who helped overturn Roe v. Wade. They were hoping that he would not strip away climate change protections and L.G.B.T.Q. rights, and that he would not follow through with his threat to carry out mass deportations of undocumented immigrants.

Debbie Pierce, a gerontologist from Tampa, Fla., wiped tears from her eyes as she held up a photo of a young relative who recently told her that she might be a lesbian.

“I’m here for her,” said Ms. Pierce, referring to her relative. “With this new administration, I don’t know if she will be safe.”

Alana Eichner, co-director of the local chapter of the National Domestic Workers Alliance, came to the march with more than a dozen women who work as caregivers for children and the elderly. She said she hopes that Mr. Trump realizes that domestic workers — including many who are undocumented — are essential to the American economy and help the country function.

“We’re here to make sure these workers are protected and valued,” she said, as the women she came with nodded in agreement.

Advertisement

On the dawn of a second Trump presidency, marches also were held in other cities, including New York, Nashville and Portland, Ore. All were different — and felt different — than the ones held to protest his first term.

The Women’s March eight years ago was much bigger than the People’s Marches on Saturday. More than 470,000 people had packed into the nation’s capital in 2017, ready and energized to fight after his surprise defeat of Hillary Clinton. The protest turned into a sea of pink as many attendees wore pink knitted hats.

This time, the crowd in Washington was smaller and the pink hats were sparse. Mary Griffin, who flew to Washington from Seattle for both Saturday’s march and the one in 2017, said she was troubled by the lower turnout, adding that people were squished together shoulder-to-shoulder at the 2017 march. She said she suspects that voters for Vice President Kamala Harris are still in shock and “in the doldrums,” frozen about how to show their resistance to the new administration.

“We need to get our energy back,” said Ms. Griffin, a 63-year-old lawyer. “I think once Trump starts moving in the direction I think he’s going in, the pendulum will swing back and people will be energized again.”

Advertisement
Continue Reading

News

Trump says he will ‘most likely’ give TikTok extension to avoid ban

Published

on

Trump says he will ‘most likely’ give TikTok extension to avoid ban

Unlock the White House Watch newsletter for free

President-elect Donald Trump said he would “most likely” extend the deadline for ByteDance, the Chinese owner of TikTok, to divest the video app which faces a nationwide ban that is set to come into effect on Sunday.

In an interview with NBC News, Trump said he was considering issuing a 90-day extension to the deadline. His comments come one day after TikTok warned that its 170mn users would face an imminent blackout after the Supreme Court on Friday upheld the divest-or-ban law that Congress passed last year to address China-related national security concerns.

“The 90-day extension is something that will be most likely done, because it’s appropriate,” Trump said. “We have to look at it carefully. It’s a very big situation . . . If I decide to do that, I’ll probably announce it on Monday.”

Advertisement

On Friday, Trump said he had spoken to President Xi Jinping and discussed TikTok with the Chinese leader. Chinese state media said the two leaders had spoken but did not specify if TikTok was part of the conversation.

The Biden administration on Friday said it would leave decisions about enforcement of the law, which comes into effect at midnight on Saturday eastern time, to the incoming Trump administration.

That means the companies that provide the video platform — including Apple, Google and Oracle — have to decide whether to risk violating the law between the midnight deadline and Trump’s inauguration on Monday.

Apple and Oracle declined to comment, while Google did not immediately respond.

TikTok said statements from the Biden administration “failed to provide the necessary clarity and assurance to the service providers that are integral to maintaining TikTok’s availability to over 170 million Americans”.

Advertisement

It also warned that the video app would “go dark” on January 19 unless the Biden administration “immediately provides a definitive statement to satisfy the most critical service providers assuring non-enforcement”.

In an overwhelming bipartisan vote last March, Congress passed a law that required ByteDance to divest TikTok to avoid a nationwide ban on the app.

Lawmakers and US security officials believe that Chinese ownership of the app poses a national security risk because it could be used for espionage and disinformation by the Chinese Communist party. TikTok has denied that the Chinese government has any influence over the app.

In his first term, Trump issued an executive order to block TikTok from operating in the US, but it was stymied by the courts at the last minute. In early 2024, he came out in opposition to the congressional divest-or-ban measure on the grounds that it would help Facebook, which banned him from its social media platform for two years.

Trump has appointed several China hawks who oppose Chinese ownership of TikTok to his administration, including Mike Waltz, a former green beret and Florida congressman, who will serve as national security adviser.

Advertisement

Earlier this week, Waltz said the incoming administration would put “measures in place to keep TikTok from going dark”, saying the legislation allowed for an extension as long as a “viable deal” was on the table.

Following the TikTok statement on Friday, Rush Doshi, a former senior Biden administration China official, wrote on X that the company only had itself to blame.

“TikTok had 268 days to sell itself so it wasn’t operated by China. That would have solved everything. But they didn’t even try. China wouldn’t let them,” Doshi said.

“Now, with time short, they want Biden to ignore a bipartisan law SCOTUS (Supreme Court of the US) upheld 9-0. If they shut down, it’s on them.”

Additional reporting by Hannah Murphy and Michael Acton

Advertisement
Continue Reading
Advertisement

Trending