US-UK trade deal on the agenda

The US and UK have been discussing about the trade deal between the countries after the Brexit deal, which is estimated to happen latest October 31st. This is part of the state visit of the US President Donald Trump and the UK royal family & Government.

According to the news conference on Tuesday, Mr Donald Trump said that the US-UK trade deal would have “tremendous potential” and coverage, even maybe the health care system NHS.

He also mentioned that the UK Brexit deal with the EU countries “will happen and should happen” and that it is important to deliver the Brexit. The US is offering the UK a broad free-trade agreement once the country has left the EU.

The UK Prime Minister Theresa May said also in the news conference that the UK should deliver the Brexit deal as the Goverment has been negotiated and that it is now the duty of the UK Parliament.

Mrs May is leaving the Downing Street 10 on Friday and the next Prime Minister will be chosen by the Conservatives during the summer time, maybe in July in the UK.

Business Finance

Axel Springer and KKR in privatization talks

One of the European leading media companies, the German Axel Springer (SPR) is in talks with the US private-equity company KKR. According to Bloomberg and Wall Street Journal, the topic has been the privatization.

According to the sources,  the founders are not selling their ownership, but it may be a question of a public tender offer to other Axel Springer´s shareholders.

After the company announcement on Wednesday evening, the shares of Axel Springer rose over 20 % to 54,50 euros yesterday on Thursday trading. Today on Friday the shares were up by 0,46 % to 55,15 euros in Frankfurt.

Business Finance

Swiss Watch export value nearly 1,8 billion francs in April

The Swiss Watch export was totally 1775 million francs in April. According to Federation of Swiss Watch Industry the main export countries (HongKong, USA, Japan, China, Singapore and Germany) totalled 932 million francs, up 6,2 %.

– All segments below 3,000 francs (export price) saw steep declines. The reduction in the number of timepieces priced below 200 francs was -23.6%. Watches priced over 3,000 francs remained positive, helping to stabilise the trend in export turnover, the organisation stated in the press release.

The export countries were mixed during the period, while the strongest growth was in the US (+16,8%), Japan (21,2%) and Singapore (18,8%).

– The situation in Europe (-4.3%) was more mixed, with the United Kingdom (+7.2%) exerting less influence on the figures than during the first quarter, according to the press release.

Business Finance

Brexit: Car production fell 44,5 % in April -Hammond to Tory race?

The UK car production fell 44,5 % in April according to the Society of Motor Facturers & Traders. The organisation estimates that the year-on-year production could fall by 10 %.

Manufacturing for domestic and overseas markets fell 44 % and 45 % respectively as the major companies were having production shutdowns due to Brexit timetable.

The Brexit-issue has also been in the politics. Chancellor of Exchequer Philip Hammond was speaking in the BBC Radio on Thursday and according to him the UK should reach to people if the UK Parliament cannot resolve the case. He was still stressing that the main objective for the Parliament is to proceed with the Brexit deal. He mentioned still that second referendum would be then better than a general election because of the hard situation in the Labour Party and Tories.

– It will be a stain on Parliament´s reputation if at the end, we have to admit that we have been unable to agree how to discharge the Brexit mandate from the people, he also said in the interview according to Independent newspaper.

Mr Hammond said he has a zero-tolerance approach to the breakdown or flouting of cabinet collective responsibility. He also mentioned that he might run for the Conservative leadership race  if there is no candidate who would reflect his thoughts properly.

Business Finance

Asian stocks mixed – trade disputes continued (corrected)

Asian stocks were mixed on Thursday trading. The Japanese, South Korean and Chinese markets were open, while the Nordic markets were closed.  (Corrected the trading hours in Europe and in the US).

The Nikkei index 225 were trading 0,49%  % to 20 900 points while the HangSeng index in Hong Kong was trading down 0,50% to 27100 points, Shanghai A was down 0,96 % to 3023 points and the Kospi index was up 0,53 % to 2034 points in South Korea.

The main concern for the markets were the US China trade was and the new elements in the discussion. According the news agencies China has said that it will consider the rare earth elements in the trade war. These metals are used in  consumer goods and electronics. According to Reuters, China accounted for 81 % of the world rare earth production by the US Geological Survey.

In the fixed income markets, the US 10-year Treasury note yield traded yesterday at 2,26%, while the Treasury 3 month Treasury Bill 2,36 %. This yield curve inversion suggested that the economy is heading to a lower growth period. This has increased the worries of the economy situation and the trade war impact in general.

Company side for example the Chinese Alibaba, listed in New York, said that it will consider a 20 billion dollars secondary listing in Hong Kong due to the uncertain trade dispute.

The US dollar was trading slightly up and was up 0,10 % to 109,70 yens. The UK pound was nearly flat, up 0,05 % to 1,2632 dollars. The euro was unchanged at 1,113 dollars.

 

Business Finance

Morningstar to buy Toronto DBRS with 699 million dollars

The US mutual funds rating company Morningstar has acquired a Toronto-based DBRS credit ratings. The 699 millions dollars deal was published on Wednesday.

According to Morningstar, it is entering the credit ratings markets with the acquisition, which is dominated by the three agencies S&P, Moody´s and Fitch. Morningstar says it will expand the global coverage and provide an enhanced platform.

DBRS, which is the fourth largest rating company in the world, reported a 167 million dollars revenue for the fiscal year ended November 2018.

 

 

 

 

Business Finance