Helsinki2018: How the markets will open on Monday?

 

helsinki2018-logoThe big question in the financial markets will be the market reactions on Monday. What have we heard so far? The first thing is that trade wars are real at the moment and the markets are waiting for more information from the meeting in Helsinki on Monday. Will the US president Donald Trump or Russian president Vladimir Putin say something regarding the trade wars, economics or sanctions? Last week the markets closed mixed globally.

The trade wars are affecting primarily auto, steel and aluminum industries globally. So far the auto industries have developed very differently. For example the Swedish car manufacturer´s Volvo stock price  (VOLVB) has increased by nearly 2 % annually, but for example the luxury car manufactuer Ferrari (Ferrari) by over 50 % in New York, On the other hand Tesla´s  (TSLA) stock price has declined by over 2,5 % and the German company Daimler´s  (DAI) by over 6 % and Volkswagen´s (VOW) with 0,5 % during the same period.

The autoindustry is important to the EU, while the German auto production is about 20 % of the global passanger car production. The turnover is about 404 billion euros according to the German Trade & Invest. And the industry sector is having otherwise very good future outlook with energy efficient cars, growth estimates are nearly 30 procent annually by 2020.

In the US, the autoindustry has seen signs of declining sales during the summer time – General Motors and Ford  have been reporting. The city of Detroit is facing lay offs.

Last year totally 17 million passanger cars were built in the EU and EU was the second largest producer of passanger cars. The US production declined by 11,5 percent and the production totalled 8 million cars.  China maintained its leading position among global passanger car producers – totally 29 percent of all cars were produced  in China according to ACEA.

So, one can understand that Tesla decided to build a new car plant in China.  The company announced last week that they will open a plant in Shanghai delivering 500 000 vehicles a year. The project time for the plant is about five years, but the size of the investment was not published.

The autoindustry is having big changes and for example the OEM production is also one part of it. So far, the EU has been the place for premium cars, but for how long? Also the UK Brexit-talks will have their own impact on the autoindustry development,

 

 

 

 

 

 

 

 

Business Finance

Helsinki2018: How about the investments?

helsinki2018-logo

The tradewars between the US, China and the EU are escalating in all frontiers. The world economies are already suffering of the lack of confidence and stability. It really needs a crystal ball to see behind the unexpected and C-level executives are trying to navigate in the day-to-day  ever changing economic environment. It is clear that the tradewars  and sanctions will be one of the top questions in the #Helsinki2018 meeting with presidents Donald Trump and Vladimir Putin.

The world economy is mixed up. The discussion in the NATO meeting in Brussels this week also showed the power of the US. The defence budget of 2 procent of the NATO-country´s GDP is one of the questions but also the questions of next investments and taxes. Which country will be the next growth country to invite international investments and money? And what will happen to institutions, are they ready to renew their way to operate and engage? It seems clear that Nato in not the only one, there might also be the UN and for example IMF and World Bank in the financial markets.

It is no wonder that the space will be the next generation growth area. At the moment there are no internationally and generally accepted laws and rules how to proceed with the new technology and investments. It offers taxfree for everybody who could have the access to ride to the moon. And that is why it is important for countries to have as much co-operation and network as possible in order to be along in the process. Like for Finland, which is a small, but quite innovative country, to be part of the technology development.

The number two is also important for the European Central Bank (ECB). This is the inflation target of the EU area. The bank´s monetary policy says that the main target for the central bank is to keep price stability and the inflation below, but close the 2 % over the medium term. This is the mechanism how the EU area will have growth and jobs, but also how to keep the value of euro.

One can say that this is also the same what president Donald Trump is doing with “corporate America and America first”. And so far it seems working – the earnings of listed companies have risen by 22 % compared to year ago and investments are up 19 procent. The relaxation of banking rules and corporate taxes have fueled the economy.

The new inflation numbers from the US show the trend – inflation is on rise and it has strengthen the dollar.  The figure 2,9 % is a clear sign for the Federal Reserve to rise the interest rates- it is estimated that there will be at least two increases this year.

The euro has fallen to 1,17 dollars. And naturally the ECB is worried about the overall economic situation in the Eurozone. Tradewars and sanctions are not helping the economic growth and rising inflation on the other hand will increase the pressures to rise the interest rates.

It seems clear that old rules are not working any more. In order to avoid the global economic and financial crisis, action, co-operation and readyness is needed from cabinets. Maybe we see something about this on Monday in #Helsinki2018?

Päivi Härkönen

 

Finance Business

Xiaomi planning over 6 billion dollars IPO

Xiaomi, the Chinese smart-phone maker,  is planning to raise 48 billion HK dollars ( 6,12 billion US dollars) in the IPO in HongKong, the company said on Saturday. It would be the biggest Chinese tech IPO since Alibaba in 2014.

Mi MIX in white_01_preview

The Company will offer about 2,18 bilion shares priced between 17 and 22 HK dollars. The offering is starting next Monday and ending at Thursday. Trading of the shares is expected to start on July the 9th.

According to the founder, chairman and CEO Lei Jun the company´s revenue has exceeded 100 billion yuan (15,3 billion US dollars). The company was founded seven years ago. Xiaomi will be investing in global expansion and internet ecosystem.

Xiaomi is an internet company with smartphones and smart hardware integrated with its IoT platform.

Business Tech

BMW´s new electric Concept iX3 -range 400 km

 

P90301493_highRes_bmw-concept-ix3-04-2BMW´s new electric concept iX3.

BMW Group  (BMW:GR) is working hard with electric cars. The company has  published a new electric concept car,  iX3  at the Auto China 2018 show in Beijing.

This is the first model from the BMW brand to be driven purely by electric power as fully-fledged Sports Activity Vehicle (SAV).

– The expansion of locally emission-free mobility vehicles is one of the key areas of centralized action, alongside with automated driving, high-end connectivity and new digital services, which are driving the company’s transformation of the mobility industry as part of the NUMBER ONE> NEXT strategy.

According to BMW, the launch of the fifth-generation electric drive system technology  makes integration into different vehicle architectures significantly easier. The individual components of this new BMW eDrive technology stand out with their lower weight, scalability and compact construction.

– The electric motor, transmission and power electronics are now grouped into a single component, making it much easier to integrate them into different vehicle architectures. Plus, their modular construction enables them to be adapted to the performance levels required and the available space. Another notable element is that the electric motor does not need any rare earths, which means the BMW Group is not dependent on their availability, the company says.

The version of the fifth-generation electric motor developed for the SAV generates maximum output of over 200 kW/270 hp. The likewise model-specific high-voltage battery has a net capacity of over 70 kWh, which is enough to give the electric SAV a range of more than 400 kilometres (249 miles) in the WLTP cycle.

Another major feature of the high-voltage battery  is its optimised charging capability. The energy storage system has a newly developed Charging Control Unit and is designed to be hooked up to fast-charging stations generating up to 150 kW. The highvoltage battery can be charged in just 30 minutes from one of these stations.

BMW i is also associated with  DriveNow (car sharing), ReachNow (car sharing 2.0), ChargeNow (easy access to the world’s largest network of charging points), ParkNow (straightforward location, reservation and payment of parking spaces).

 

Business Tech

BMW´s new autonomous driving campus in Munich

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The BMW Group  (BMW:GR) has opened its new autonomous driving campus in Germany,  Munich this week. This new centre reflects the company´s target to innovate and develop new standards for the future and to increase the sustainability leadership.

– 15 months ago, the BMW Group took the decision to pool together its development expertise in the fields of vehicle connectivity and highly / fully automated driving at a single location. The campus, which offers 23,000 square metres of office space with room for 1,800 employees, was completed in record time. The site’s optimum infrastructure, its proximity to the Research and Innovation Centre, and the nearby link to the motorway network helped to swing the decision in its favour, the company says in the press release.

The autonomous driving campus is using modern office interior design and technology in order to integrate the working as smooth as possible, from development to testing.

– This means, for example, that a software developer working at the new campus can immediately test out freshly written code in a vehicle that is just a short walk away, the company says.

Business Tech

Basel2018 – LVMH pleased with the selling

Yleiskuva

This year Baselworld 2018, the leading  global luxury watch and jewellery trade show,  was special for many reasons. First this was a show case for many companies after the lagging sales after a couple of years. Secondly, this was also a year with many new product launches and industry integrations.

The world´s leading luxury company, LVMH and its Watch Division are very pleased with the trade show. – This Baselworld has been the best ever – we were sold out after three days, says the President of the Watch Division and CEO of Tag Heuer Jean-Claude Biver.

This division of the LVMH Group consists of 6 different houses and its sales were 3,8 billion euros last year. They have also 405 own stores globally. Brands like Tag Heuer, Hublot, Bulgari and Dior are part of this division. The organic growth was 12 % last year and the profit in this division was 458 million euros, + 12 %.

This is also in line with other luxury company announcements lately.  For example Tiffany & Co, released its last year figures. The group´s sales was up 4 % to 4,2 billion dollars. The growth accelerated during the last quarter and global sales rose by 9 % to 1,3 billion dollars.

Some of the new highligths was also the Swarovski Atelier. In the below picture  the company is revealing its new elements with fine jewellery.

The two models are wearing moon stones and rose gold from the company collection called Pasqualebruni. It is an Italian family owned company.

And the last picture is about Porsche Design and its history of car integration. Acording to the company, Porsche Design follows a clear design philosophy: to optimize function. The company has launched a new Monobloc Actuator 24H – this titanium watch has got a new form and for example has the two-time-zone mechanism.

 

SwarovksiMallitPorsche

Business Lifestyle