Highlights of the year 2018 – Brexit, trade talks and green finance

The year 2018 was a year of Brexit, electric cars and trade talks. It included special moments in the financial markets and in the company side. Green Bonds and Green Finance were getting more attention in the markets and trade talks and Brexit were the topics during the year 2018 along. Climate Change and low carbon landed also in the agenda of central banks.

Investors were also asking what is the role of the City as a global financial hub. Should it have its own rules in spite of the Brexit? In the financial hub competition, Frankfurt and Paris were the European cities to get more new financial offices as financial companies were moving some operations to the EU side.

The UK Parliament is expected to vote of the Brexit during Janury 2019 after very intensive debate about the deal during the year.

Climate Change has become part of the everyday life in the financial markets and for example one of the biggest insurance companies in the US, Berskhire Hathaway informed in February 2018, that it has got 3 billion dollars losses of the natural catastrophies, the hurricances in the US. Several central banks, including the European Central Bank and some Asian ones, have also agreed about the co-operation in the climate issues and how to monitor the impact on the markets.

In the tech-side augmented reality and ioT were the themes for the year. Apple, Amazon, Google, Tesla, Intel  and Samsung  were one of the tech-companies to deliver new services related to the new technology. On the other side of the topic, Facebook was dealing with the privacy issues globally. New tech- companies listed in the markets were for example Spotify and Xiaomi.

Year 2018 was a year of electric cars in many countries. The e-cars breakthrough with charging issues was one of the tech topics as well. Telsa founder Elon Musk was the leading industry sector figure as he estimated that Tesla would make one million cars by 2020 in February 2018.

Also the German automakers announced new investments and concept cars. For example the BMW Group launched an autonomous driving campus in Munich in March 2018.

Year 2018 was also a year for luxury goods and services. The Basel World 2018 -fair announced its good selling and for example the CEO of Hublot, Ricardo Guadalupe,  told ComteamPUB+ that the company expects double digit growth for the year and that the Chinese customers will be the leading segment.

In the debt markets the US Uber and Netflix issued their junk bonds to investors. Uber, the ride-sharing company, is said to plan an IPO for the year 2019 according to the secret filings to the SEC.

One of the biggest infrastructure projects ever, the China Silk Road, is getting more attention from the green investors side, while the organization made its first announcement of the green principles for the project co-operation and operators. The ancient Silk Road is expected to rise the GDP growth by 4 % or 240 billion dollars in the countries invlolved according to Credit Suisse analysis.

The aim of the Roman time Silk Road is to connect the western Europe with the eastern coast of China and to renew the infrasturcture in between. This means also that the 10 world largest container ports are located along the route.

Trade talks between different countries have continued lively during the year. US and China have been in the headlines, but also the EU with its agreement with Japan.  The political situation and rising volatility in the financial markets tell the direction for the next year. Geopolitical easing is needed.

Päivi Härkönen, co-founder, ComteamPUB+

 

 

Business Finance Lifestyle

Uber to file a confidential IPO – sources

According to several media sources, the ride-hailing company Uber has filed a confidential IPO during last week. Its filing would be one of the biggest technology listings ever and would also test the market apetite during very volatile times.

Uber’s valuation in its most recent deals has been 76 billion dollars, and it could be worth 120 billion dollars in a listing IPO.

Uber´s lost in the third quarter was 1.07 billion dollars and the company is struggling with slowing growth.

According to New York Times, Uber´s rival Lyft would have also filed to the SEC during last week, but it is offering. The companies do not comment the situation.

Morgan Stanley and Goldman Sachs are Uber´s advisors in the IPO.  JPMorgan Chase is the advisor for Lyft.

Business Finance

Uber and 2 billion junk bond before the IPO in 2019

The ride-hailing company Uber has raised 2 billion dollars from the bond markets last Wednesday. The initial offering amount was 1,5 billion dollars, but due to the demand the company decided to raise the amount. The underwriter in this private placement was Morgan Stanley.

According to markets this issuance was a positive sign for the future, while the company does not have enough earnings to pay interest due to the loss making business. The planned IPO will be during the year 2019, no exact month has releaved yet. The IPO markets will also see an IPO from Uber´s rival Lyft and the timing is at the moment March-April 2019. Accorfing to estimates, the valuation of Uber is expected to be around 120 billion dollars, which would be one of the biggest tech offerings next year.

The high-yield bond markets have been active lately, while also companies like WeWork and Tesla (TSLA) have also raised capital.

Business