Unicredit and ING to bid for Commerzbank?

The Italian Unicredit (UCG) banking group and the Dutch banking group ING (ING) are considering bidding for the German Commerzbank (CBK). The news, according to Reuters, have been intensive, although the companies do not comment the situation.

According to Reuters, the Italian Unicredit has engaged with investment banker Lazard and JP Morgan for possible takeover. The Italian bank already owns the German lender HVB, based in Munich, and it has been estimated before that the integration of the both banks in Germany would be in the interest of Unicredit.

Commerzbank, of which the German Government owns 15 %, has 13 million customers. The other owners are for example Blackrock (4%), Vanguard (3,1%), Capital Group Companies (2,9%) and the Bank of Norway (2,5%).

Business Finance

Starbucks completes 1 billion dollars Sustainability Bond

The world fourth largest coffee roaster & marketer, Starbucks (SBUX) has completed its one billion dollars Sustainability Bond issuance.  According to company info, the reason for the bond is to support the sustainable sourcing of ethical coffee and to help design, build and operate new Starbucks stores globally. The aim is to open 10.000 new Starbucks stores globally by 2025.

The company CFO Patrick Grismer said in the press release, that the bond attracted significant investors and it was oversubscribed. The maturity of the bond is 30 years.

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Brexit-deal back in the Parliament in June?

Brexit-deal may be back in the Parliament in early June. According to Bloomberg News, the UK Prime Minister Theresa May may be delivering the deal again in the House of Commons in June with the help of Labour Party  Jeremy Corbyn.

The cross-party talks have been continued also today evening in London and it is agreed that the Prime Minister will put the Withdrawal Agreement Bill (WAB) to Parliament before the long summer brake.

 

Business Finance

Stocks turning up in Europe – Goldman to list new ESG products

European stock markets are heading upward after the negative territory after the US China trade war. The  London FTSE 100 index was up 0,64 % to 7209 points and the German DAX index was trading up 0,28 % to 11910 points and the France CAC 40 index was up 0,66 % to 5297 points during the midday trading.

Monday was black in the global stock markets when the US China trade war ascalated.The Dow Jones dropped 2,38 % to 25342 points,the S&P 500 index 2,41 %to 2811 points and the tech-heavy Nasdaq index dropped 3,41 % to 7647 points. The slide was due to the Chinese Goverment that said it will raise tariffs related to US goods to China worth of 60 billion dollars.The deadline for the Chinese tariffs is in June.

The ride-hailing companies Uber and Lyft declined further. Uber (Uber) dropped 10,75 % to 37,80 dollars and Lyft(Lyft) 5,75 % to 48,50 dollars.

The global investment banker Goldman Sachs announced on Monday that the company wil list new ESG products in Europe that track indexes from Stoxx, a unite of Deutsche Borse AG. The products, which include derivates, will invest in companies found in three indexes, the Euro Stoxx 50 Low Carbon, Europe Climate Impact ex global compact weapons and tobacco index and the Stoxx Europe 600 ESG X-index.

This means for example that companies that perform low with ESG ratings or with CDP-ratings, are not included in Goldman Sachs products. According to Stoxx, the products will be listed in Amsterdam Euronext Stock Exchange.

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Trump and Xi to meet in Japan in June

The US President Donald Trump and his Chinese colleague President Xi Jinping are meeting in Japan in the G20 meeting in June. According to Reuters, the White House economic adviser Larry Kudlow confirmed the meeting on Fox News Sunday.

The trade situation with the both countries have been stable after the news that the US raised the tariffs on Friday and threatened to put tariffs on all goods from China if there is no deal. The new deadline is agreed to be one month long according to Bloomberg News.

The G20 meeting will be held in for the first time in Japan. The G20 leaders will meet on the 28th and 29th of June in Osaka.Also the Finance Ministers and Central Banks Governors meeting and the Foreign Ministers’ meeting will also be at the same time in Japan, but in different locations.

Business Finance

Stocks closed up – Uber fell 7,6 %

The stocks turned up from the early downs in Wall Street on Friday. Dow Jones ended up 0,44% to 25942 points, S&P 500 index up 0,38 % to 2881 points and Nasdaq slightly up 0,08 % to 7916 points.

The ride hailing company Uber (Uber) fell first over 9 % in its debut trading, but recovered somewhat and closed down 7,6 % to 41,53 dollars. The IPO price was 45 dollars. The market cap closed to 71,6 billion dollars, while in the IPO the market value was 82 billion dollars.

The rival ride hailing company Lyft also closed down.

The news from the trade talks with US and China showed some positive signs while the talks were “constructive” according to President Donald Trump.

Bloomberg reported that the US has given China one month time to seal the trade deal or face tariffs on all its exports to US.

The British finance minister Philip Hammond told media on Friday that US and China should avoid entering the trade war because of the vast impact on global growth and on British economy as well. According to Reuters, Mr Hammond estimates the UK will reach the 1,2 % economic growth this year.

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Apple manufactures most of its iPhones in China

The US mobile tech company Apple ( APPL) manufacturers most of its iPhones in China. According to Nikkei Asia, the China tops now Apple’s production site compared for example to the US.

Apple has increased its suppliers in the Greater China during the last few years and much of the materials, manufacturing and assembly processes are now in China.

In January the company said that it will start to assemble the premium phones also in India. The reason for this was also the rising concerns of trade wars between the US and China.

But also to establish the production overall in Asia to be more competitive against Samsung and Huawei.

Apple said in its 2018 annual report that the US and China are the only countries to account over 10 % of the company net sales. The sales in China were 51,9 billion dollars last year and operating income was 19,7 billion dollars.

During the second quarter, which ended March 30th, the company net sales in America were 25,6 billion dollars and 10,2 billion dollars in China. In Europe the sales were 13 billion dollars.

According to Bloomberg News, the new trade tariffs between the US and China, may eventually increase the Apple’s retail prices.

Apple’s share price was trading down 2,23 % to 195,49 dollars in Wall Street today.

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