New Apple ecosystem service: the credit card

Apple (AAPL) announced yesterday that the new credit card with Goldman Sachs (GS) will be available to all iPhone owners in the US later this month. Apple said earlier in March that it is developing this credit card with Goldman.

This new credit card will be part of the Apple ecosystem, with all the payments and pay back & messaging functions. According to Apple, the new card do not have a visible number on it, but it has a secure chip inside and the iPhone can generate virtual numbers for online and over-the-phone shopping.

The credit card will offer customers Daily Cash on the purchases, from 3-1 % of the purchases depending on the transaction and the Cash can be used like any other cash or send to friends. The cash is paid back to customers every day.

Apple has around 50 million Apple Pay users in the US and this service will be also part of the Goldman Sachs Marcus – consumer business. According to Apple, Goldman Sachs will not get the right to use or sell the data for marketing purposes.

Apple´s shares closed yesterday up 1,89 % to 197 dollars  and the shares of Goldman Sachs (GS) also up, 2,15 % to 206,1 dollars in New York.

Business Finance Tech

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

Stocks markets rally – rate cut & QE possible

The stock markets rallied on Tuesday, when Federal Reserves Chairman Jerome Powell signalled a possible interest rate cut if needed. He was referring to the trade negotiations between the China and US. Also some markets estimates that the ECB, The European Central Bank, would start again the quantitative easing actions from January, lifted the trade worries.

Dow Jones index ended up 2,06 % to 25 332 points, S&P 500 index ended up 2,14 % to 2803 points and the technology-index Nasdaq closed up 2,65 % to 7527 points. According to Bloomberg News, this increase was the biggest since January.

The big banks and the car manufacturers were the leading sectors. The economic slowdown due to the trade tariffs between the China and US has been pushing the stocks downward trend.

The recent IPO-companies were mixed, the Uber (UBER) closed up 3,64 % to 42,53 dollars, while Lyft (LYFT) closed down 0,62 % to 59 dollars. The market speculation which of the new companies would power the better way to autonomous future continued. The electric car manufacturer Tesla (TSLA) closed up 8,17 % to 194,50 dollars.

From the financial markets side, Goldman Sachs (GS) ended up 3,65 % to 190,40 dollars and JP Morgan (JPM) closed up 3,08 % to 109,77 dollars.

The global economic situation was also in the World Bank´s new economic estimate on Tuesday, that the global economy is decreasing next year due to the trade situation. -Global economic growth is forecast to ease to a weaker-than-expected 2.6% in 2019 before inching up to 2.7% in 2020, the World Bank says.

The Dutch banking group ABN Amro said in their review that they expect the European Central Bank to start the quantitative easing program again in January 2020. They expect the buying of bonds start from 70 billion euros next year and that the ECB would need to rise the issuer limit from 33 % to as high as 50 %.

It is expected that this new policy decision will be given to the new ECB president, which is going to be elected during this year as part of the EU top jobs puzzle. Mr Mario Draghi is leaving the central bank during this year. The ECB is having its next Governing Council meeting on Thursday in Vilnius, Lithuania.

In Europe, the stocks ended also up and the FTSE 100 index closed up 0,41 % to 7214 points in London. In Germany the DAX-index closed up 1,51 % to 11971 points and in France the CAC 40 index ended up 0,51 % to 5268 points.

The euro was trading flat at 1,125 dollars and the sterling was up 0,01 % to 1,2699 dollars.

Business Finance

Goldman to buy United Capital Finance Advisers for 750 million dollars

The US Investment Banking Group Goldman Sachs (GS) is buying a wealth-management company United Capital Financial Advisers for 750 million dollars. This would be Goldman´s biggest deal in recent years.

United Capital Finance Advisers has assets under management totally 25 billion dollars and the company employs 220 financial advisers. The deal is expected to be completed in the third quarter, Goldman said.

Goldman Sachs shares were trading today up 1,58 % to 199,50 dollars.

Business Finance

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

Apple launches Apple News+ as a media platform

The US Apple (APPL) has today announced Apple News+, a new subscription service that brings together over 300 magazines, leading newspapers and digital publishers into a  Apple News app.

Available first in the US and Canada, Apple News+ presents the best and most relevant articles to meet range of interests from renowned publications such as Vogue, National Geographic Magazine, People, ELLE, The Wall Street Journal and Los Angeles Times.

Later this year the Apple News+ service will be in Europe and Australia.

The company also announced a new credit card. The card called Apple Card is, according to the company, built on simplicity, transparency and privacy.

Apple is partnering with Goldman Sachs and Mastercard to provide the support of an issuing bank and global payments network.

Tech