As Shares Soar, SoftBank Pumps Another $1.1BN Into WeWork

Somehow, thanks to the global crush of liquidity and a broad-based rally in tech SoftBank Group's (SFTBF) shares are riding high, making Paul Singer and Elliott look like activist geniuses once again.

Thanks to the global crush of liquidity and a broad-based rally in tech shares (with some programmatic buybacks thrown in the mix, as upping SoftBank's buybacks was critical to Singer's plan), SoftBank is finding itself back in investors' good graces, and Masayoshi Son is claiming vindication.

And what better way to telegraph Masa's great comeback than by doubling down on one of SoftBank's biggest blunders: WeWork (WE) . SoftBank is plowing $1.1 billion into WeWork to help it weather the coronavirus pandemic, Bloomberg reports, citing an internal staff memo.

The decision isn't exactly a huge surprise. It certainly fits with the theme of SoftBank's latest quarterly earnings release, whereby the firm saw its earnings bounce back from record lows, posting a $12 billion profit, compared with a $13 billion loss during the same period from a year prior. In reality, much of this boost is due to SoftBank shedding its shares in its US subsidiary Sprint (S) and T-Mobile US (TMUS).

Per BBG, the new SoftBank money is “another sign of SoftBank’s continued support for our business,” boosts WeWork's cash on hand to $4.1 billion, according to a memo from SoftBank Chief Financial Officer Kimberly Ross.

Will that be enough to allow the now dramatically-downsized WeWork to hang on until the pandemic lifts, when there might be an opportunity - in theory, at least - to profit from changing work habits?

That's a big if.

Of course, the BBG story didn't say anything about an ongoing lawsuit against SoftBank filed by WeWork's co-founder and former CEO Adam Neumann, who attacked SoftBank for renegging on some $3 billion promised to Neumann and a group of other early shareholders, mostly VC funds.
At the time, SoftBank said it would funnel that money back into WeWork. We guess this is them making good on that promise, for better or worse

UPLAND 128.0 5,995.0 7,247.8 421.5 700.1 690.9 4.9 321.1
PIMA 16.7 181.2 125.6 8.5 14.1 23.1 0.0 0.0

General Comments: Cotton closed a little lower. West Texas weather remains detrimental for crop development as the region has been very dry and hot. The hot and dry weather extends north into Oklahoma and western Kansas and is returning later this week. Export demand for US Cotton has been poor for the last few weeks. Export demand is the primary demand for US Cotton so poor weekly sales means weak overall demand. The retail demand has been slow to develop as many consumers got hurt economically due to stay at home orders during the height of the pandemic and have little disposable funds to spend on clothes. Demand will slowly improve but the industry should have plenty of supplies to work with in the short term. The US weather situation is mixed, with good rains noted in the Southeast and good conditions in the Midsouth. However, it has been very hot and dry in West Texas and farther to the north and crops there are suffering. The increase in Texas Cotton condition in the reports could indicate increased abandonment of the very bad dryland crops.
Overnight News: The Delta will get isolated showers and Southeast will get scattered showers. Temperatures should be near to above normal. Texas will have isolated showers. Temperatures will average above normal. The USDA average price is now 57.85 ct/lb. ICE said that certified stocks are now 6,465 bales, from 6,465 bales yesterday.
Chart Trends: Trends in Cotton are mixed. Support is at 6270, 6200, and 6180 December, with resistance of 6400, 6410 and 6450 December.


General Comments: FCOJ was fractionally lower after a day of consolidation trading. The Coronavirus is still promoting the consumption of FCOJ at home. Restaurant and food service demand has been much less as no one is really dining out. Florida production prospects for the new crop were hurt by an extended flowering period, but the weather is good now with frequent showers to promote good tree health and fruit formation. Import demand to the US should be minimal as US prices remain below those of Europe. Brazil has been too dry and irrigation is being used, but production prospects are good. Ideas are that Mexico also has good crops, but there has been little information available from that origin.
Overnight News: Florida should get isolated showers. Temperatures will average near to above normal. Brazil should get dry conditions and near to above normal temperatures.

Chart Trends: Trends in FCOJ are mixed to up with objectives of 122.00, 128.00, and 134.00 September. Support is at 116.00, 114.00, and 111.00 September, with resistance at 120.00, 124.00, and 128.00 September.


General Comments: Futures were lower after making new highs for the move. Chart trends are still turning up. Roasters are still taking certified stocks off the exchange instead of buying at origin. Vietnam was dry during flowering time and is dry again. Production ideas are lower. Brazil and Central America are reported to be having problems with shipping due to lock downs from the Coronavirus. Demand overall remains down with the US still locking down due to the Coronavirus resurgence in some states. The demand from coffee shops at other food service operations is still at very low levels. Consumers are still drinking Coffee at home. Reports indicate that consumers at home are consuming blends with more Robusta and less Arabica. The Brazil harvest is active but shipping and collection have become very difficult due to the widespread outbreak of the Coronavirus there. The pickers are showing up for work and ports are operating normally. Ideas are that production will be very strong this year as it is the on year for the trees. The strong production ideas are coming despite hot and dry weather seen in the country at flowering time.
Overnight News: ICE certified stocks are lower today at 1.354 million bags. The ICO daily average price is now 114.76 ct/lb. Brazil will get mostly dry conditions with near to below normal temperatures. Vietnam will see light to moderate showers.
Chart Trends: Trends in New York are mixed to up with objectives of 125.00 and 133.00 September. Support is at 117.00, 115.00, and 112.00 September, and resistance is at 122.00, 127.00 and 129.00 September. Trends in London are mixed to up with objectives of 1500 and 1520 September. Support is at 1430, 1410, and 1370 September, and resistance is at 1490, 1520, and 1530 September.


General Comments: New York and London were higher. The daily charts show that Sugar is back in the recent trading range. Ideas are that there is plenty of Sugar for the world market. Getting the Sugar available for export is becoming more difficult with the widespread Coronavirus outbreak in both Brazil and India. Brazil mills have shifted part of the crush to Sugar production due to less ethanol demand. India is thought to have a very big crop of Sugarcane this year but getting it into Sugar and into export position has become extremely difficult due to Coronavirus lock downs. Thailand might have less this year due to reduced planted area and erratic rains during the monsoon season. There are reduced flows from rivers from China to hinder irrigation of the crops.
Overnight News: Brazil will get dry conditions or isolated showers. Temperatures should average near normal.
Chart Trends: Trends in New York are mixed to up with objectives of 1330, 1350, and 1370 October. Support is at 1280, 1240, and 1230 October, and resistance is at 1320, 1330, and 1380 October. Trends in London are mixed. Support is at 371.00, 368.00, and 365.00 October, and resistance is at 381.00, 384.00, and 386.00 October.

General Comments: New York closed mixed and London closed a little lower, and trends are still down on the daily charts. There are a lot of demand worries as the Coronavirus is not going away and could be making a comeback in the US. Europe is still trying to open its markets again but the Coronavirus is still around and consumers are reluctant to buy. Harvest is now over for the main crop in West Africa and the results are very good. The reports from West Africa imply that a big harvest in the region. Ideas are that Southeast Asia also has good crops.
Overnight News: Isolated to scattered showers are forecast for West Africa. Temperatures will be near normal. Malaysia and Indonesia should see showers. Temperatures should average above normal. Brazil will get mostly dry conditions and near to above normal temperatures. ICE certified stocks are lower today at 3.862 million bags. ICE said that 11 notices were posted for delivery today against September futures and that total deliveries for the month are now 45 contracts.
Chart Trends: Trends in New York are mixed to down with objectives of 2350 and 2250 December. Support is at 2420, 2390, and 2360 December, with resistance at 2490, 2530, and 2550 December. Trends in London are down with objectives of 1630 and 1570 December. Support is at 1640, 1620, and 1590 December, with resistance at 1690, 1710, and 1730 December.

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