Watches of Switzerland considering an IPO in London

The UK reseller Watches of Switzerland is considering an IPO in the London Stock Exchange.According to Bloomberg, the company is seeking funding for its US expansion.

The company is the biggest reseller of the luxury timespecies in the UK and they estimate more growth figures from the US markets. Private-equity company Apollo Global Management is expected to keep a stake in the company.Barclays Bank and Goldman Sachs are acting as global coordinators.

Finance Lifestyle

Tesla to raise new capital totally 2,3 billion dollars

20190207_154953The US Tesla(TSLA) announced yesterday evening that it will raise new capital totally 2,3 billion dollars. The issue means that it includes 650 million dollars new shares and 1,35 billion dollars convertible debt and option to raise more 15%.

The news seems to be relief to investors while the Q1 figures were somewhat disapointing with the capital structure. Investors have commented the decision by securing the scaling of the new Model Y,which was unveiled in March and which is going to utilise the Model 3 platform, and the China production ramp up.

Goldman Sachs and Citigroup are managing the offer. Tesla shares closed higher on Thursday to 244,10 dollars in New York.

Business Finance Tech

UK to target net zero emissions by 2050? FT

The UK is targeting to set a new goal for carbon emissions. According to the report from Committee on Climate Change, UK should be net zero emissions country by 2050. This would equate to 1-2 % of the 2050 GDP, says Financial Times.

FT says that the report, which will be published on Thursday, will guide Scotland to be net zero already in 2045 and Wales 95 %zero in 2050 due to its sheep-farming industry.

The UK Parliament is expected to discuss about the Climate Change updates on Wednesday,when the House of Commons will have this topic on its agenda.The target would be reached by using more renewable energy sources, increasing the electric vehicles in transportation and for example capturing carbon from the air.

In 2018 the UK carbon emissions fell by 2,5 % sixth straight years in row.About 80 % of the UK homes are warmed by using natural gas.

If this new target would pass the Parliament,it would mean that the UK would be among the leading G7 countries to set this kind of target.  It is good to remember that the UK will leave also the EU Emissions Trading System as part of the Brexit deal.

In London there have been several climate activists protests during the last two weeks in order to speed the decision making on Climate Change.

Business Finance

UK the leading destination for foreign direct investments in Europe

The UK holds the position of the leading destination for foreign direct investments in Europe. According to the UK Goverment release, the total value of foreign investment stock into the UK increased by 5% to 1890 billion pounds at the end of 2018.

These figures,which are published by the OECD today,confirm the UK as the leading destination for foreing direct investment in Europe.The corresponding figures for Germany were 920 million and Spain 659 million pounds.

This also means that the UK has been able to keep its attractivness in spite of the Brexit negotiations. According to media,  the UK Prime Minister Theresa May is still thinking of having the Brexit deal done before the EU elections in May.

Business Finance

UK rating still at risk of no-deal Brexit – S&P and Fitch

The UK credit rating is still at risk from a no-deal Brexit,says the S&P Ratings and Fitch Ratings according to Reuters. 

– The agreement between the EU and the UK to further extend the process to the end of October 2019 reduces but does not eliminate the risk of a no-deal Brexit over the next six months, Fitch said on Friday.

The UK Goverment has been negotiated with the EU leaders and the UK Parliament in order to avoid this kind of situation and thus avoid the possible economic and financial stress elements. Both credit agencies have a AA rating on the UK Goverment debt.

S&P has a negative outlook for the British economy and according to the agency the outlook could be revised to stable if there will be more certainty about the negotiations with the EU.

Business Finance

What next in the European banking?

The collapse of the merger talks between the two German banks Deutsche Bank and Commerzbank, will increase the speculation in the European banking consolidation further.

Earlier there has been speculation of the Italian bank Unicredit to be interested to merge with Commerzbank. But this new situation after Thursday announcement of the break in the two German banks, will raise other candidates as well.

For example the New York Times, write also about the Amsterdam banking group ING as a possible candidate.

The European banking sector was up slightly, while Stoxx Europe 600 banking index was trading 0,09 % at 147,65 points. In one year time this sector has declined by 16,9 %.

Business Finance