Virgin´s Galactic is becoming a listed company – WSJ

Virgin Galactic, which offers human spaceflights to public, is planning to be listed to fund the growth. According to Wall Street Journal, the Social Capital Hedesophia  Holdings is planning to invest about 800 million dollars in Virgin Galactic for a 49 % stake. This would also mean that the Virgin Galactic would become publicly listed later this year.

The space travelling is become more common while Amazon´s owner Jeff Bezoz´s Blue Origin and Elon Musk´s Space Exploration Technologies (Space X) are also in the same markets.

According to WSJ, the Virgin Galactic has already raised more than 1 billion dollars since it was founded in 2004.

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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.

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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.

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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.

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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.

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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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