Brexit: Series of votes next week in the UK Parliament

The UK Parliament is having series of Brexit votes during next week.  There are different Brexit-options the MPs are voting, like to postpone the Brexit-exit, having no-deal Brexit or making no-Brexit deal impossible. Prime Minister Theresa May has said that she is against extending or making no-deal impossible.

The final Brexit exit-deadline, the March 29, is quite near and business leaders are unsure how the decision-process will continue and what would be the outcome. The Bank of England has warned about different kind of economic disruptions of no-deal Brexit.

According to Bloomberg, these companies have made their decisions to leave the UK or transfer part of the businesses outside the UK: AIG (Luxembourg), Admiral Group (Madrid), CME Group (Amsterdam), Cboe Global Markets (Amsterdam), Chubb (France), JP Morgan (Frankfurt), Liberty (Luxembourg), Pantheon (Dublin) and RSA (Luxembourg).

In the financial markets the big issues like the US-China trade talks are still in the process, but one of the US Goverment issues, the shutdowns will be ended by the Fed 15th.

During one month period, the Dow Jones -index has gained over 7 %, S&P 500 -index over 7 % and Nasdaq 8,8 %. In London the FT-SE 100-index has gained 1 %, while in Paris the index has gone up by over 5 % and in Frankfurt nearly 7 %. In Asia, the Tokio Nikkei index has gained 3,7 % and in Hong Kong the Hang Seng index 8,10 % during the period.

 

Business Finance

Luxury watches in Geneva

 

This slideshow requires JavaScript.

According to SIHH 2019, many exceptional timepieces were on display in Geneva, Switzerland last week  and perpetual calendars in particular. Trending for the year 2019 is the colors.

  • Colour becomes an integral part of watch design, with blue and green continuing to gain in popularity. Moon phases and “métiers d’art” dials also come to the fore. Also noteworthy is the arrival of original alloys, based on carbon or recycled titanium, mainly in sport watches. Not forgetting women’s watches, for which new designs, movements and gem-setting were showcased by many of the brands, according to the press release.

SIHH (Salon International de la Haute Horlogerie) is one of the global Watch exhibitions with over 20000 visitors.

 

Lifestyle

Luxury watchmaker Patek Philippe for sale?

 

According to Bloomberg news, the Swiss luxury watchmaker Patek Philippe may be for sale. This 180 year old luxury watch company is valued between 7-9 billion euros by market analysts and it is one of the last biggest independent brands.

Patek Philippe is owned by Stern family and it is one of the innovative brands in the industry still. In 1845 the company patented the keyless winding and hand-setting system. In 1916 Patek Philippe made the first ladies´wristwatch with a five-minute repeater. In 2018 the company introduced the twenty-4 collection for ladies.

The company CEO Thierry Stern said in the Financial Times interview in 2013 that  they aim to keep the production at 50.000 pieces a year in order to keep the quality in the watches. The company headquarter is in Geneva, Switzerland.

Business Lifestyle

Stocks up in Wall Street – Brexit talks continued

Stocks ended up in Wall Street on Friday. All the three major indices gained over 1 % because of the Bloomberg news that China has agreed to buy US goods by a value of 1 trillion dollars in order to reduce the US trade surplus to zero by 2024. Last year the trade surplus was 323 billion dollars.

Dow Jones – index gained 1,38 % and ended to 24706 points, S&P 500 -index gained 1,32 % and ended to 2670 points and Nasdaq 1,03 % to 7157 points. On Monday the markets will be closed due to Martin Luther King Jr holiday.

In London the Brexit talks continued and PM Theresa May had talks with EU-leaders and she met also other members of her Cabinet. According to Bloomberg she will have to present a new plan on Monday in the Parliament. The House of Commons will vote on different Brexit plans on January 29th. The stock markets ended up in London City and FT 100 -index gained 1,95 % to 6968 points.

In Germany the DAX index ended up 2,63 % to 11205 points and in France the CAC 40-index 1,70 %  to 4875 points.

In Asia the Nikkei-index ended up 1,24 % to 20666 points and in Hong Kong the Hang Seng index ended up 1,25 % to 27090 points.

Euro was trading 0,21 % down to 1,136 dollars. The UK sterling was down 0,85 % to 1,28 dollars.

Business Finance

Tesla: Focus on standard-range Model 3

Tesla has today published a blog and according to it, the company will cut workforce by 7 % in order to meet the targets regarding the Model 3 production and focusing also more in mid-range models.

-Starting around May, we will need to deliver at least the mid-range Model 3 variant in all markets, as we need to reach more customers who can afford our vehicles. Moreover, we need to continue making progress towards lower priced variants of Model 3.
Right now, our most affordable offering is the mid-range (264 mile) Model 3 with premium sound and interior at $44k. The need for a lower priced variants of Model 3 becomes even greater on July 1, when the US tax credit again drops in half, making our car $1,875 more expensive, and again at the end of the year when it goes away entirely, the CEO Elon Musk writes.

-Sorry for all these numbers, but I want to make sure that you know all the facts and figures and understand that the road ahead is very difficult. This is not new for us – we have always faced significant challenges – but it is the reality we face, he continues.

– As a result of the above, we unfortunately have no choice but to reduce full-time employee headcount by approximately 7% (we grew by 30% last year, which is more than we can support) and retain only the most critical temps and contractors. Tesla will need to make these cuts while increasing the Model 3 production rate and making many manufacturing engineering improvements in the coming months. Higher volume and manufacturing design improvements are crucial for Tesla to achieve the economies of scale required to manufacture the standard range (220 mile), standard interior Model 3 at $35k and still be a viable company. There isn’t any other way, he says.

Tesla shares were trading down, -9,9 % to 312,79 dollars, after the blogging in Wall Street on Friday. Company also reminded that it made 4 % profit during the Q3. The last quarter figures of the year 2018 are not yet published.

– In Q4, preliminary, unaudited results indicate that we again made a GAAP profit, but less than Q3. This quarter, as with Q3, shipment of higher priced Model 3 variants (this time to Europe and Asia) will hopefully allow us, with great difficulty, effort and
some luck, to target a tiny profit, he estimated.

 

 

Lifestyle Travel

Davos: Companies should have Climate Change strategy

According to the Global Risk Report by the World Economic Forum, Climate Change, Natural Resources and Biodiversity are among the the top global risk areas for this year. 

– Rising geopolitical and geo-economic tensions are the most urgent risk areas in 2019, with 90% of experts saying they expect further economic confrontation between major powers in 2019, the World Economic Forum Report states.

– Environmental degradation is the long-term risk. Rapidly evolving cyber and technological threats are the most significant potential blind spots; we still do not fully appreciate the vulnerability of networked societies, the report says.

– 2018 was sadly a year of historic wildfires, continued heavy flooding and increasing greenhouse gas emissions. It is no surprise that in 2019, environmental risks once again dominate the list of major concerns. So, too, does the growing likelihood of environmental policy failure or a lack of timely policy implementation. To effectively respond to climate change requires a significant increase in infrastructure to adapt to this new environment and transition to a low-carbon economy. By 2040, the investment gap in global infrastructure is forecast to reach $18 trillion against a projected requirement of $97 trillion. Against this backdrop, we strongly recommend that businesses develop a climate resilience adaptation strategy and act on it now, says Alison Martin, Group Chief Risk Officer in the  Zurich Insurance Group.

The Wef Davos meeting will be held next week in Davos, in Switzerland. Around 3000 quests are expected to come to Davos, including Japan PM Shinzo Abe, German Angela Merkel and Prince William, the Duke of Cambridge.

lzb6mc8t4hf83tgd3w984xaacmowqe52w7qj6j4fcgg

 

 

Business Lifestyle

Stocks to one-month high – Goldman up

The US stock markets continued their upward trend and the shareindexes reached one-month high during Wednesday trading. Two big financial companies, Goldman Sachs and Bank of America, both exceeded their earnings estimates.

Goldman Sachs reported its full year and fourth quarter earnings and according to the report, the group´s net revenues were 36,62 billion dollars and net earnings 10,46 billion dollars for the whole year 2018. The company shares jumped and lifted also Dow Jones- index and the banking sector as well.

-We are pleased with our performance for the year, achieving stronger top and bottom line results despite a challenging backdrop for our market-making businesses in the second half. For the year, we delivered double-digit revenue growth,
the highest earnings per share in the firm’s history and the strongest return on equity since 2009. We are confident that we are well positioned to support an even larger universe of clients, continue to diversify our revenue mix and deliver
strong returns for our shareholders in the years ahead, David Salomon, the CEO and Chairman of the Group said.

Dow Jones index ended up 0,90 % to 24 282 points, S&P 500 -index 0,41 % to 2623 points and Nasdaq ended up 0,39 % to 7051 points.

In London, where the UK Goverment won the confidence vote, FTSE ended down 0,47 % to 6862 points. The voting started at 7 pm local time. In Germany the DAX-index ended up 0,36 % to 10 931 points and in France the CAC-index ended up 0,51 % to 4810 points.

In Asia the Nikkei-index traded down 0,55 % to 20 442 points, while in Hong Kong the Hang Seng index ended up 0,27 % to 26 902 points.

 

Business Finance