WeWork to raise billions ahead of IPO-WSJ

The US workspace company WeWork is going to raise billions of dollars in debt before it goes public, writes the Wall Street Journal tonight. According to WSJ, WeWork would raise as much as 3 billion to 4 billion dollars in the coming months, citing people familiar with the matter.

The debt offering could grow as big as 10 billion dollars over the next several years, the WSJ writes. The meaning of this offering is to fund the company’s growth until its business is profitable, the people said.

One reason for this debt offering is also the other big IPOs during the spring time, Uber (UBER)  and Lyft (LYFT), which are trading below their IPO pricing at the moment.

According to the news, Goldman Sachs Group and JP Morgan Chase & Co are leading the structuring and backing the deal.

WeWork, based in New York, made a 1,9 billion dollars loss last year with a 1,8 billion dollars revenue. The company has been valued at 47 billion dollars this year in the earlier funding rounds.

WeWork filed the IPO at the end of last year and the initial offering is expected to be during this year.

Business Finance Tech

Tiffany´s sales one billion dollars during the first quarter

The US listed luxury company Tiffany (TIF) said on June 4th, that major part of the company sales growth came from China. The company net sales were about 1000 million dollars during the first quarter, ending April 30th. Compared to last year figures, the decline was 3 procent.

– Our first quarter results reflect significant foreign exchange headwinds and dramatically lower worldwide spending attributed to foreign tourists. That said, we were pleased that, at the core of our business, global sales attributed to local customers, led by sales in China, grew over last year’s very strong sales results. We believe this growth in sales to local customers reflects progress in executing our strategic priorities, including innovations across products, communications and the customer experience, and that Tiffany is positioned for improving trends in the second half of 2019, said the Group´s CEO Alessandro Bogliolo in the company press release.

Tiffany´s worldwide net sales declined 3% to 1.0 billion dollars and comparable sales declined 5%. On a constant-exchange-rate basis, net sales were equal to the earlier year and comparable sales declined 2%.

Net earnings of 125 million dollars were 12% lower than the earlier year’s 142 million dollars. Net earnings per diluted share were 1.03 dollars compared to 1.14 dollars in the year ago.

All the major markets showed declined trend in the sales. In the Americas, total net sales declined 4% to 406 million dollars. In Asia-Pacific, total net sales declined 1% to 324 million dollars.

– These results reflected a continuation of strong growth in mainland China and mixed results in other markets. These sales results also reflected lower spending attributed to foreign tourists, the company says.

In Europe, total net sales declined 4% to 102 million dollars and comparable sales declined 7%. Other net sales of 26 million dollars were 17% above the previous year, as increased wholesale sales of diamonds more than offset a 17% decline in comparable sales in our stores in the UAE.

Company also said that the possible US China tariffs could increase the jewelry tariffs from its current level to a new level of 25 % on average. The company increased its quarterly dividend by 5 procent.

Tiffany´s stock (TIF) ended Friday in New York to 94,48 dollars, up 0,94 %, giving the market cap of the company to 11,47 billion dollars.

Business Lifestyle

Stocks down in NY – strong job data

Stocks closed slightly down on Friday trading in New York. The main reason for the decrease was the strong US data related to jobs and thus sifting the possible Federal Reserve rate cut, which was expected to be in the Fed´s July meeting.

Dow Jones index closed down 0,16 % to 26922 points, S&P 500 index closed down 0,18 % to 2990 points and technology-heavy Nasdaq-index 0,10 % to 8161 points.

The Friday losers included for example the health care, industrials and real estate sectors. The gaining side included financials. From the new listings sector, the ride-hailing companies Uber and Lyft were down, -1,58 % and -2,00 % respectively. Slack, the it-company, closed down 1,33 % to 35,52 dollars and Pinterest also down 0,80 % to 27,25 dollars.

The euro was down 0,51 % to 1,1225 dollars due to the weak German economic data.

Business Finance

Shanghai – London stock exchange listing co-operation launched

The Shanghai-London Stock Connect (the Stock Connect) was officially launched on 17th June in London. The co-operation means that listed companies are allowed to list  depositary receipts on the other exchange.

The China Securities Regulatory Commission (CSRC) and the UK Financial Conduct Authority (FCA) have agreed to closely collaborate on cross-border supervision and enforcement. The first Global Depositary Receipt (GDR) under the Stock Connect, issued by SSE-listed Huatai Securities Co., Ltd., has also been listed for trading on the LSE on the same day.

  - By expanding channels for bilateral financing and investments, the Shanghai-London Stock Connect has far-reaching significance in promoting capital markets development in both countries and supporting Shanghai’s endeavors to build an international financial center, the Shanghai Stock Exchanges said in the press release.

  - Moving forward, the CSRC is committed to pushing ahead with the reform and opening-up of China’s capital markets in accordance with the directives of the CPC Central Committee and the State Council. The CSRC will work closely with relevant regulatory authorities of the UK to safeguard smooth operations of the Stock Connect and reinforce investor protection in the interests of sound and steady development of the capital markets, the company says.

Business Finance

Trump: US is not accepting Paris Agreement

The US President Donald Trump said that the country is not accepting a global Climate Change standard, which would mean a loss of the country’s production by over 20 %. He commented the Climate Change issues in the press conference in Osaka, Japan today.

According to him, the US air is now the cleanest it has ever been and he thinks that countries that have accepted the climate standard (the Paris Agreement) will loose their power with manufacturing.

Trump mentioned also that he does not like the subsidies related to the renewable wind power the US has at the moment.

– I do not like it, he said.

President Donald Trump did not signed the climate change communique of the G20 nations in Osaka. This so-called 19+1 formula on climate change  is similar to the Argentina meeting last year.  This means that the other countries are fully committed to the implementation of the Paris Agreement.

Business Finance

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.

Business Finance