Trump: US companies can sell equipments to Huawei

The US President Donald Trump said in today’s press conference in Osaka, Japan that the US and China have agreed that the US companies can sell equipments to Huawei. According to the US President this is part of the US China trade talks they agreed during the weekend G20 meeting.

He did not on the other hand wanted to comment if the Chinese telecom company would be lifted from the national security list or not.

– We are leaving this issue to be discussed later on, he said. The negotiations are starting again during the next week and according to President Trump the Huawei-case is a complicated matter.

Trump mentioned that he would like to see the countries more as strategic partners in the future.

During the meeting in Osaka, US and China also agreed that US is holding tariffs during the negotiations. And part of the trade deal is also that China has agreed to buy US farm and agri products.

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Swiss stocks EU-trading to Zurich

Starting from Monday, most of the Swiss stocks cannot be traded in the EU area. The falling negotiations between the European Union and Switzerland have triggered the equity trading between the blocks.

This means that Swiss stocks will be redirected in the most stocks via Zurich in order to avoid the total blocking. It is expected that those Swiss companies, which have dual listings in the EU-area and Switzerland, might see some price differences.

The Swiss financial markets and China have made earlier agreements to enlarge the collaboration between the countries. Switzerland and China have made free trade agreement in 2013 and currency agreement between the Swiss National Bank and the People’s Bank of China in 2014.

Now the SIX Stock Exchange and Shanghai Stock Exchange have agreed about  the cooperation between the two financial centers and to assess the feasibility of listing securities (such as e.g. Depository Receipts) on respective markets in the near future. This would allow companies listed at either exchange to tap into each other’s liquidity pools.

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Apple´s chief design officer to form own company – Bloomberg (updated)

According to Bloomberg News, Jony Ive, Apple’s chief design officer, will depart the company later this year to form an independent design company. According to the news, he will continue to have Apple among its primary clients.

– Apple will continue to benefit from Jony’s talents by working directly with him on exclusive projects, and through the ongoing work of the brilliant and passionate design team he has built. After so many years working closely together, I’m happy that our relationship continues to evolve and I look forward to working with Jony long into the future, the CEO Tim Cook said in the press release.

According to Apple, the design team will in the future include for example Evan Hankey and Alan Dye to report to Apple´s chief operating officer.

-Design team leaders Evans Hankey, vice president of Industrial Design, and Alan Dye, vice president of Human Interface Design, will report to Jeff Williams, Apple’s chief operating officer. Both Dye and Hankey have played key leadership roles on Apple’s design team for many years. Williams has led the development of Apple Watch since its inception and will spend more of his time working with the design team in their studio.

Apple (AAPL) shares were trading on Thursday down 0,03 % to 199,70 dollars, market cap 919 billion dollars.

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Hublot CEO: China markets the main focus (updated)

Hublot, one of the leading luxury watch makers in Switzerland, is targeting China markets even more. The company, part of the LVMH (LVMH) Group, market cap 186 billion euros, and its Watch division, said the same thing already a year ago, but the target is still the same. According to the CEO Ricardo Guadalupe, Hublot is aiming to become one of the leading watch brands in China and Greater China.

– We are focusing on China and Greater China markets. Our aim is to be one of the leading watch brands in China and Greater China, Mr Guadalupe said in the ComteamPUB+ interview on Thursday.

The company has not revealed the export figures, but according to Swiss Watch Industry information the China, Hong Kong and Singapore markets totalled nearly 30 % of the overall Swiss watch exports. In May the export totalled over 2 billion Swiss francs, growth 11,4 %. The biggest growth was in the premium & luxury watches, which are priced over 3000 francs.

The company is expecting a very strong growth for this year. The double-digit growth is said to continue “over the end of the year” according to Mr Guadalupe.

China is seen one of the fastest growing luxury markets in the future. In 2018 the Chinese consumers spent about 115 billion dollars on luxury items, which is one third of the global spending. And this is expected to growth in the future also so that by 2025 40 % of the world’s spending on luxury goods would be by Chinese consumers (McKinsey). So, it is not a surprise that Mr Guadalupe is talking about China.

Is luxury becoming more common?

This question is about the luxury spending and how the luxury markets are expected to develop in the future. But Mr Guadalupe has a point.

-Absolutely not for the real luxury, he says.

And he is referring for the real thing. Real luxury has always its prestige and value among its users. And this is also part of the demand for the vintage or retro luxury items in the markets at the moment.

For example financial markets are expecting the US company RealReal to be listed in New York. The company is an online marketplace for luxury products and according to the company info the trading of the shares are expected to start today, not yesterday as earlier estimated. The company raised 300 million dollars, at 20 dollars each, above the 17-19 dollars range earlier estimated. Sustainable, circular luxury is also entering the main markets.

Hublot and “Art of Fusion”

The clear sustainable standing point for Hublot is the materials. The company has been innovative and finding new ways to integrate different materials in the watch production over years. It is part of the company ideology of the Art of Fusion – the way the tradition of high-quality Swiss craftsmanship and innovation can be combined.

The material lists include magic gold, carbon, rubber, aluminium, ceramic, king gold, palladium, platinum, stainless steel, tantalum, titanium, tungsten, zirconium, osmium and aluminium. Hublot can say that it has clearly been the innovator in this area in the Swiss watch industry.

The company says that it is now also working with sustainable bags while the banning of plastic bags is already a trend in Europe.

Collaboration with Ferrari and FIFA

– The collaboration with Ferrari and our involvement in FIFA World Cup are our two main partnerships, Guadalupe says.

– This year we have two collaborations with Ferrari. The Classic Fusion Ferrari GT, which is an elegant and contemporary piece that draws inspiration from the “Gran Turismo” universe. And the Big Band Scuderia Ferrari 90 ans. This is a model that reflects the rich history and heritage of Scuderia Ferrari, he continues.

Japanese food and sea

But what does Mr Guadalupe do for the summer time? Japanese food and sea.

– Food can be compared to the watch industry in a certain way for their attention to quality, time and details. I like to spend my holidays in the Mediterranean, at Mykonos or Ibiza. Holidays is for me synonymous with relaxing, sport and good food, he concludes.

Hublot, which was founded in Switzerland in 1980, has made the journey with innovation and unique products. Watches like Big Bang have paved the way to new flagship collections like Classic Fusion and Spirit of Big Bang.

Picture: Hublot classic watches from BaselWorld 2017-2019

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Stocks mixed in NY before G20 Osaka

The US equities closed mixed today in New York ahead of the G20 meeting in Osaka, Japan on Saturday. The US President said he would use the “Plan B” if the US and China cannot proceed with the trade issues during the weekend. He said the new tariffs would be closer to 10 % rather than 25 %.

Dow Jones closed down 0,04 % to 26 536 points, S&P 500 index closed down 0,12 % to 2913 points, but Nasdaq ended up 0,32 % to 7909 points.

In the tech-stocks the ride-hailing company Uber (UBER) ended down 1,37 % to 42,45 dollars, showing the market capital of 72 billion dollars. The rival Lyft (LYFT) ended also down 1,67 % to 62,82 dollars with the market cap of 18,3 billion dollars. The latest IPO tech company, Slack Technologies rose 4,96 % to 32,37 dollars (16,4 billion market cap). Cryptocurrency Bitcoin reached above 13 000 dollars.

One of the hottest issues during the G20 leaders summit will be foreign exchange rates. Mr Trump has said that the US dollar is too strong compared to euro and Chinese yuan and thus taking competitive edge from the US companies. The G20 finance ministers and central bankers have already made their commitments from competitive devaluation, according to Bloomberg. In the markets, the Federal Reserve rate cut is expected to happen in July meeting.

The important meeting with President Donald Trump and the Chinese President Xi Jinping will be on Saturday. Mr Trump will also meeting for example the Russia´s President Vladimir Putin and Turkey´s Erdogan.

In Europe the stocks wee also mixed. In London the FTSE 100 index ended down 0,08 % to 7416 points, while in Germany the DAX index ended up 0,14 % to 12 245 points. In France the stocks declined by 0,25 % to 5500 points. The German 10 year government bond yield dropped to record low to -0,31 %.

The debate about Brexit continued and Boris Johnson, the PM and Conservative leader candidate, said that he does not expect no-deal departure on October.

The sterling was trading down 0,03 % to 1,2685 dollars, while euro was trading down 0,01 % to 1,1366 dollars. Dollar was up 0,54 % to 107,78 Japanese yen.

In Asia the stocks were also mixed. In Shanghai the stocks closed down 0,19 % to 3117 points, while in Hong Kong the Hang Seng index closed up 0,13 % to 28 221 points. In Japan the Nikkei 225 index ended down 0,51 % to 21086 points.

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Yandex Taxi to issue new shares in IPO – Reuters

Russia´s largest online taxi service Yandex Taxi is likely to sell new shares in its initial public offering. According to Reuters the company representative COO Greg Abovsky told that the company has not decided on a stock exchange, or the timing or the size of its IPO.

-We consider the Moscow Exchange an important exchange, he told Reuters and added that most likely there would be primary shares, not secondary in the IPO.

Yandex Taxi and Uber combined their resources in Russia, Armenia, Azerbaijan, Belarus, Georgia and Kazakstan in 2017. Uber has 36,6 % of the shares, Yandex 59,3 % and Yandex Taxi staff the rest.

The US ride-hailing company Uber´s (UBER)  IPO was in May and the company listed its shares on Nyse in New York with the market value of 82 billion dollars. The rival company Lyft  (LYFT) listed its shares in Nasdaq already in April with the market value of 24,3 billion dollars.

Uber has also expanded its service offerings from taxi to flying taxi service in New York and customers can now ride from Manhattan to JF Kennedy and Newark airports with 199 dollars. The company has also announced it will start electric-flying taxi service in Australia, Melbourne next year, while the other piloting cities are Dallas and Los Angeles in the US.

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Stocks closed down in NY- US data and trade tariffs

The US equities closed down today due to weak consumer confidence data and the trade tariffs between the US and China. The US and China leaders are meeting this week in G20 meeting in Japan and the information from the Federal Reserve has been that the tariffs can increase the risk of slower growth globally if there is no more confidence in the markets.

Dow Jones closed down 0,67 % to 26 549 points, S&P 500 index down 0,95 % to 2917 points and Nasdaq down 1,51 % to 7884 points. In Europe the FTSE 100 -index closed up 0,08 % to 7422 points, while the equities on the continent were down. In Germany the DAX closed down 0,38 % to 12 228 points and in France the CAC 40 down 0,13 points to 5514 points.

The US consumer confidence and new home sales were both below markets expectations. On the other hand on the M&A side, the deal volumes and values have been record high, according to Bloomberg data. On Tuesday, AbbVie said it would buy Allergan company, the Botox maker, for 63 billion dollars.

The G20 meeting on Friday and Saturday in Osaka, Japan will give more information while the US President Donald Trump and the Chinese President Xi Jinping will have their discussions then. According to Bloomberg, the US officials have signalled that the trade deal is unlikely to happen.

The US markets have been pricing a 50 basis points rate cut for the next Federal Reserve meeting in July, but according to St.Lous Fed President James Bullard such a rate cut would be too much. He commented the situation in a Bloomberg interview.

The central bankers have been discussing about the cryptocurrencies and Facebook´s new Libra coin in the central banks meeting in Switzerland today. The question of financial stability, consumer and regulatory standpoint are the major issues for the tech company and some believe Libra is not going to be a Bitcoin.

According to Reuters, the Facebook other issues related to privacy concerns and hate speeches have been the major topics and central bankers are requiring more information from Facebook in order to proceed with the new currency. The Britain’s Financial Conduct Authority (FCA) also commented the issue today with the same tone of voice.

In London, the discussions about the Brexit deal and the new Prime Minister have continued. Boris Johnson or Jeremy Hunt will be the next Prime Minister for the UK and the new leader will be announced on the 23rd of July. The deadline, October 31st will be soon, while the UK Parliament is starting their summer holidays on July 25 and the MPs will return on the September 3rd.

The euro was trading slightly up 0,01 % to 1,1368 dollars and the sterling up 0,06 % to 1,2696 dollars.

In Asia, the stocks were also down, the Shanghai All ended down 0,87 % to 2982 points, the Hang Seng in Hong Kong down 1,15 % to 28185 points and the Nikkei-index in Japan down 0,43 % to 21 193 points.

 

 

 

 

 

 

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