Uber revenue + 14 % – loss widens to 5,4 billion

The ride-hailing company Uber (UBER) reported its second quarter figures, ending June 30.  According to the company info, the revenue rose 14 % to 3,1 billion dollars, while the loss increased to 5,4 billion dollars from 739 million loss a year earlier. Diluted net loss was 4,72 dollars per share, while it was -2,01 dollars a year ago.

According to Uber, the operating loss includes for example the driver compensation of nearly 300 million dollars related to the IPO process.

The ridesharing revenue rose 2 % to 2,3 billion dollars during the quarter and the Uber Eats revenue rose 72 % to 595 million dollars.

-Our platform strategy continues to deliver strong results, with Trips up 35% and Gross Bookings up 37% in constant currency, compared to the second quarter of last year,” said Dara Khosrowshahi, CEO, in the press release.

-In July, the Uber platform reached over 100 million Monthly Active Platform Consumers for the first time, as we become a more and more integral part of everyday life in cities around the world, the CEO said.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Stocks tumbled in NY – hit by trade war

The financial markets tumbled today globally as a response to the tightening trade war between the US and China trade. The global economy growth was the main concern in the markets while the Chinese currency, yuan decreased to its lowest levels in decade, to around 7 per dollar. Last week the US President Donald Trump informed about the new tariffs in the China trade.

Dow Jones index closed down 2,9 % to 25 717 points, the S&P 500 index closed down 2,99 % to 2844 points and the tech-Nasdaq index down 3,47 % to 7726 points. The gold and Japanese yen increased.

Apple (AAPL) closed down 5,23 % to 193,34 dollars, ride-hailing company Uber (UBER)closed down 3,34 % to 39,05 dollars, IBM (IBM) closed down 4,41 % to 140,76 dollars, Microsoft (MSFT) closed down 3,43 % to 132,21 dollars and Walmart down 3,27 % 105,82 dollars. Luxury company Ralph Lauren (RL) closed also down 3,19 % to 95,73 dollars. The electric car manufacturer Tesla (TSLA) closed down 2,57 % to 228,32 dollars.

According to Bloomberg market analyst, the trade war could hit US jobs as early as the next two months. This would also increase the global pressures for more rate cuts by the central banks in Europe and in the US. Last week the Fed lowered its fed funds by 25 basis points for the first time since the financial crisis.

In Europe the stocks were also down. In London the FTSE 100 index closed down 2,47 % to 7223 points, in Germany the DAX-index closed down 1,80% to 11 658 points and in France the CAC 40 -index closed down 2,19 % to 5241 points.

In Asia the Hang Seng closed down 2,85 % to 26151 points in Hong Kong and the Nikkei 225 index closed down 1,74 % to 20720 points.

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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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Stocks mixed in NY before G20 Osaka

The US equities closed mixed today in New York ahead of the G20 meeting in Osaka, Japan on Saturday. The US President said he would use the “Plan B” if the US and China cannot proceed with the trade issues during the weekend. He said the new tariffs would be closer to 10 % rather than 25 %.

Dow Jones closed down 0,04 % to 26 536 points, S&P 500 index closed down 0,12 % to 2913 points, but Nasdaq ended up 0,32 % to 7909 points.

In the tech-stocks the ride-hailing company Uber (UBER) ended down 1,37 % to 42,45 dollars, showing the market capital of 72 billion dollars. The rival Lyft (LYFT) ended also down 1,67 % to 62,82 dollars with the market cap of 18,3 billion dollars. The latest IPO tech company, Slack Technologies rose 4,96 % to 32,37 dollars (16,4 billion market cap). Cryptocurrency Bitcoin reached above 13 000 dollars.

One of the hottest issues during the G20 leaders summit will be foreign exchange rates. Mr Trump has said that the US dollar is too strong compared to euro and Chinese yuan and thus taking competitive edge from the US companies. The G20 finance ministers and central bankers have already made their commitments from competitive devaluation, according to Bloomberg. In the markets, the Federal Reserve rate cut is expected to happen in July meeting.

The important meeting with President Donald Trump and the Chinese President Xi Jinping will be on Saturday. Mr Trump will also meeting for example the Russia´s President Vladimir Putin and Turkey´s Erdogan.

In Europe the stocks wee also mixed. In London the FTSE 100 index ended down 0,08 % to 7416 points, while in Germany the DAX index ended up 0,14 % to 12 245 points. In France the stocks declined by 0,25 % to 5500 points. The German 10 year government bond yield dropped to record low to -0,31 %.

The debate about Brexit continued and Boris Johnson, the PM and Conservative leader candidate, said that he does not expect no-deal departure on October.

The sterling was trading down 0,03 % to 1,2685 dollars, while euro was trading down 0,01 % to 1,1366 dollars. Dollar was up 0,54 % to 107,78 Japanese yen.

In Asia the stocks were also mixed. In Shanghai the stocks closed down 0,19 % to 3117 points, while in Hong Kong the Hang Seng index closed up 0,13 % to 28 221 points. In Japan the Nikkei 225 index ended down 0,51 % to 21086 points.

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Yandex Taxi to issue new shares in IPO – Reuters

Russia´s largest online taxi service Yandex Taxi is likely to sell new shares in its initial public offering. According to Reuters the company representative COO Greg Abovsky told that the company has not decided on a stock exchange, or the timing or the size of its IPO.

-We consider the Moscow Exchange an important exchange, he told Reuters and added that most likely there would be primary shares, not secondary in the IPO.

Yandex Taxi and Uber combined their resources in Russia, Armenia, Azerbaijan, Belarus, Georgia and Kazakstan in 2017. Uber has 36,6 % of the shares, Yandex 59,3 % and Yandex Taxi staff the rest.

The US ride-hailing company Uber´s (UBER)  IPO was in May and the company listed its shares on Nyse in New York with the market value of 82 billion dollars. The rival company Lyft  (LYFT) listed its shares in Nasdaq already in April with the market value of 24,3 billion dollars.

Uber has also expanded its service offerings from taxi to flying taxi service in New York and customers can now ride from Manhattan to JF Kennedy and Newark airports with 199 dollars. The company has also announced it will start electric-flying taxi service in Australia, Melbourne next year, while the other piloting cities are Dallas and Los Angeles in the US.

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Volvo and Uber to present the self-driving car

Volvo Cars (VOLVB), a leader in automotive safety, and Uber (UBER), the leading ride-hailing firm, have presented a jointly developed production car capable of driving by itself. This is the next step in the strategic collaboration between the companies.

– Uber and Volvo Cars entered a joint engineering agreement in 2016 and have since developed several prototypes aimed at accelerating the companies’ self-driving car development. The Volvo XC90 SUV is the first production car that in combination with Uber’s self-driving system is capable of fully driving itself, the Volvo says in the press release.

According to Volvo, the most important features of Volvo Cars’ autonomous drive-ready production vehicle include several back-up systems for both steering and braking functions as well as battery back-up power.

-By the middle of the next decade we expect one-third of all cars we sell to be fully autonomous. Our agreement with Uber underlines our ambition to be the supplier of choice to the world’s leading ride-hailing companies, the Volvo Cars CEO Håkan Samuelsson stated.

 

 

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